Financial Terms | |
investment grade |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, money, credit, business, financial, inventory, investment, payroll, |
Definition of investment gradeinvestment gradeBonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s.
Related Terms:Investment grade bondsA bond that is assigned a rating in the top four categories by commercial credit Leveraged buyout (LBO)A transaction used for taking a public corporation private financed through the use Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a DowngradeA classic negative change in ratings for a stock, and or other rated security. Expected return on investmentThe return one can expect to earn on an investment. See: capital asset Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with Future investment opportunitiesThe options to identify additional, more valuable investment opportunities Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a Investment analystsRelated: financial analysts Investment bankFinancial intermediaries who perform a variety of services, including aiding in the sale of Investment decisionsDecisions concerning the asset side of a firm's balance sheet, such as the decision to Investment incomeThe revenue from a portfolio of invested assets. Investment managerAlso called a portfolio manager and money manager, the individual who manages a Investment product line (IPML)The line of required returns for investment projects as a function of beta Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment trustA closed-end fund regulated by the investment Company Act of 1940. These funds have a Investment valueRelated:straight value. InvestmentsAs a discipline, the study of financial securities, such as stocks and bonds, from the investor's Legal investmentsinvestments that a regulated entity is permitted to make under the rules and regulations Mutually exclusive investment decisionsinvestment decisions in which the acceptance of a project Net investmentGross, or total, investment minus depreciation. Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Passive investment strategySee: passive management. Passive investment managementBuying a well-diversified portfolio to represent a broad-based market Reinvestment rateThe rate at which an investor assumes interest payments made on a debt security can be Reinvestment riskThe risk that proceeds received in the future will have to be reinvested at a lower potential REIT (real estate investment trust)Real estate investment trust, which is similar to a closed-end mutual REMIC (real estate mortgage investment conduit)A pass-through tax entity that can hold mortgages Return on investment (ROI)Generally, book income as a proportion of net book value. Short-term investment servicesServices that assist firms in making short-term investments. Speculative grade bondBond rated Ba or lower by Moody's, or BB or lower by S&P, or an unrated bond. Underinvestment problemThe mirror image of the asset substitution problem, wherein stockholders refuse Unit investment trustMoney invested in a portfolio whose composition is fixed for the life of the fund. Zero-investment portfolioA portfolio of zero net value established by buying and shorting component RETURN ON INVESTMENT (ROI)In its most basic form, the rate of return equals net income divided by the amount of money invested. It can be applied to a particular product or piece of equipment, or to a business as a whole. Investment centreA division or unit of an organization that is responsible for achieving an adequate return on Return on investment (ROI)The net profit after tax as a percentage of the shareholders’ investment in the business. capital investment analysisRefers to various techniques and procedures return on investment (ROI)A very general concept that refers to some InvestmentThe commitment of funds (capital) in anticipation of an increased grade (of product or service)the addition or removal of product investment centera responsibility center in which the manager investment decisiona judgment about which assets will be postinvestment auditthe process of gathering information reinvestment assumptionan assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR return on investmenta ratio that relates income generated Investment BankerMiddleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter. Investment SpendingExpenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included. Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. Net Investmentinvestment spending minus depreciation. Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Capital InvestmentsMoney used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses. guaranteed investment certificate (GIC)A GIC is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. GICs are available from banks, trust companies, and other financial institutions. qualified investments (Canada)Qualified investments is the term used for investments that can be held in an RSP. These investments generally include: Regular Investment Plan (RIP)A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose. Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |