An acronym for 'separate trading of registered interest and principal securities'. Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no interest payments because they mature at par. |||Backed by the U.S. government, STRIPS, which were first introduced in 1985, offer minimal risk and some tax benefits in certain states, replacing TIGRs and CATS as the dominant zero-coupon U.S. security.Although you receive no tangible income, you typically still have to pay federal income tax on the bond's accretion for the year.
The risk that an investor takes when trying to buy or sell a stock based on future price predictions. Timing risk explains the potential for missing out on beneficial movements in price due to an error in timing. This could cause harm to the value of an investor's portfolio because of purchasing too high or selling too low. Taobiz explains Timing Risk There is some debate as the feasibility of timing. Some say that it's impossible to consistently time the market; others say that market timing is the key to above average returns. A common thought on this subject is that it is better to have "time in the market," than trying to "time the market." This is evidenced by the growth of all financial markets over the long-run, and that many active managers fail to beat the market averages after transaction costs are counted in. For example, if you take your money out of a stock because of a predicted downturn, you risk the chance of the stock increasing in price before you buy back in.
A zero-coupon bond issued by a brokerage firm and collateralized by treasury securities held for the investor by a custodian. |||In general, stripped U.S. Government bonds are referred to as Treasury receipts but are better known as TIGRS (Treasury Investment Growth Receipts), CATS (Certificates of Accrual on Treasury Securities), etc.
The highest price level reached by a security, index of securities, commodity or economic cycle in a given time period, followed by at least a short-term decline. Taobiz explains Top Security prices and economic cycles commonly move in trends, following an upward trend for a time before reversing and moving downwards for a period. The point at which a trend reversal switches from an upward to a downward one is referred to as the top. Short- to medium-term traders like to sell at or near the top before the downward trend begins.
An adjustment in the current amount of reportable interest on a U.S. savings bond. In some cases, the taxpayer has already reported some of the interest that was earned and must therefore reduce the current amount of taxable interest. The U.S. Savings Bond adjustment is therefore allowed to avoid double taxation of the same income. |||There are many rules pertaining to the taxation of U.S. Savings bonds. For more information, visit www.treasurydirect.gov or www.publicdebt.treas.gov. The adjustment described above applies to all types of U.S. savings bonds.
The Topix Core 30 Index is a market index composed of 30 of the largest companies out of the stocks listed on the First Section of Japan's Tokyo Stock Exchange. The Topix Core 30 is one of several different Topix indexes. The Core 30 Index is meant to measure the performance of the 30 companies which are both highly liquid and have the largest market capitalizations. The index is weighted by companies free floats. Taobiz explains Topix Core 30 Index The name Topix is an acronym for Tokyo Stock Price Index. It is one of two widely followed index families on the Tokyo Stock Exchange, the other being the Nikkei. In terms of the method of calculation and the use of the index, the Topix indexes can be thought of as being similar to the S&P indexes used in the United States. The Nikkei index is most similar to the U.S. Dow Jones Industrial Average index.
Notice of the release merchandise to a buyer from a bank, with the bank retaining the ownership title to the released assets. In an arrangement involving a trust receipt, the bank remains the owner of the merchandise, but the buyer is allowed to hold the merchandise in trust for the bank, for manufacturing or sales purposes. |||The buyer of merchandise subject to a trust receipt is required to maintain the merchandise, and any proceeds’ of the sale of the merchandise, for remittance to the bank. In this way, the buyer is permitted use of the merchandise for their business activities, but the bank's interest in the ownership of the merchandise is protected.
An investment approach that involves looking at the "big picture" in the economy and financial world and then breaking those components down into finer details. After looking at the big picture conditions around the world, the different industrial sectors are analyzed in order to select those that are forecasted to outperform the market. From this point, the stocks of specific companies are further analyzed and those that are believed to be successful are chosen as investments. Taobiz explains Top-Down Investing An investor may use different criteria when deciding to employ the top-down approach. For example, an investor may consider such factors as geography, sector and size. What is important with this approach is that a big picture perspective is taken first before looking at the details. Although there is some debate as to whether the top-down approach is better than the bottom-up approach, many investors have found the top-down approach useful in determining the most promising sectors in a given market.