A guaranteed investment contract (GIC) is purchased with a single premium and only one payout that is made at maturity. ||| With a GIC, there is no contribution risk and no withdrawal risk.
Any person who has knowledge of, or access to, valuable nonpublic information about a corporation. Taobiz explains Insider Examples of an insider include the directors and officers of a company. Stockholders who own more than 10% of equity in a company are also insiders.
A dividend payment made before a company's AGM and final financial statements. This declared dividend usually accompanies the company's interim financial statements. Taobiz explains Interim Dividend his is used more frequently in the United Kingdom, where it is usual for dividend payments to occur semi-annually. The interim dividend is generally the smaller of the 2 payments made to shareholders.
A noncallable regular coupon paying debt instrument with a single repayment of principal on the maturity date. |||Sometimes referred to as a virgin bond.
1. The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. 2. The amount of ownership a stockholder has in a company, usually expressed as a percentage. Interest is commonly calculated using one of two methods: simple interest calculation, or compound interest calculation. Taobiz explains Interest 1. Lenders make money from interest, borrowers pay it. 2. Someone who holds more than 5-10% of the stock in a company is said to hold significant interest.
A change in the yield curve caused by short-term rates falling faster than long-term rates, resulting in a higher spread between the two rates. |||A steepener differs from a flattener in that a steepener widens the yield curve while a flattener causes long-term and short-term rates to move closer together. When the yield curve is said to be a bull steepener it means that the higher spread is caused by the short-term rates, not long-term rates.
A shareholder or association with beneficial ownership, whether direct or indirect, of enough voting stock to affect company decisions. Taobiz explains Interested Shareholder The actual percentage of stock that a beneficial shareholder must own is dependent upon the state or country that the company is headquartered in. The percentage may vary substantially. Typically, the range is around 20% of all outstanding shares.
A type of bond that offers investors the option to reinvest coupon payments into additional bonds with the same coupon and maturity. Also known as "multiplier bond" or "guaranteed coupon reinvestment bond." |||Bunny bonds are an effective way to protect against reinvestment risk, which arises from the possibility that interest rates will drop in the future. With a normal bond, investors are exposed to the risk of having to reinvest their coupons at a lower interest rate. If an investor chooses to reinvest all cash coupons back into the bond he is currently holding, it behaves similarly to a zero-coupon bond, as the investor receives no cash flow until maturity.