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Financial Terms | |
Investment trust |
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Definition of Investment trustInvestment trustA closed-end fund regulated by the investment Company Act of 1940. These funds have a
Related Terms:REIT (real estate investment trust)Real estate investment trust, which is similar to a closed-end mutual Unit investment trustMoney invested in a portfolio whose composition is fixed for the life of the fund. Cash flowIn investments, it represents earnings before depreciation , amortization and non-cash charges. EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Funds From Operations (FFO)Used by real estate and other investment trusts to define the cash flow from Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. capital investment analysisRefers to various techniques and procedures ![]() 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. Collateral trust bondsA bond in which the issuer (often a holding company) grants investors a lien on Deed of trustIndenture. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Equipment trust certificatesCertificates issued by a trust that was formed to purchase an asset and lease it Equity investmentThrough equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock. 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 Grantor trustA mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee 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. Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a InvestmentThe commitment of funds (capital) in anticipation of an increased Investment analystsRelated: financial analysts Investment bankFinancial intermediaries who perform a variety of services, including aiding in the sale of 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 centera responsibility center in which the manager Investment centreA division or unit of an organization that is responsible for achieving an adequate return on investment decisiona judgment about which assets will be ![]() Investment decisionsDecisions concerning the asset side of a firm's balance sheet, such as the decision to investment gradeBonds rated Baa or above by Moody’s or BBB or above by Standard & Poor’s. Investment grade bondsA bond that is assigned a rating in the top four categories by commercial credit 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 SpendingExpenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. 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 Investmentinvestment spending minus depreciation. Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Passive investment managementBuying a well-diversified portfolio to represent a broad-based market Passive investment strategySee: passive management. Personal trustAn interest in an asset held by a trustee for the benefit of another person. postinvestment auditthe process of gathering information 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. 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 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 REMIC (real estate mortgage investment conduit)A pass-through tax entity that can hold mortgages return on investmenta ratio that relates income generated Return on investment (ROI)Generally, book income as a proportion of net book value. 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. Return on investment (ROI)The net profit after tax as a percentage of the shareholders’ investment in the business. return on investment (ROI)A very general concept that refers to some Short-term investment servicesServices that assist firms in making short-term investments. Term trustA closed-end fund that has a fixed termination or maturity date. Trust CompanyOrganization usually combined with a commercial bank, which is engaged as a trustee for individuals or businesses in the administration of trust funds, estates, custodial arrangements, stock transfer and registration, and other related services. Trust deedAgreement between trustee and borrower setting out terms of bond. Trust receiptReceipt for goods that are to be held in trust for the lender. Underinvestment problemThe mirror image of the asset substitution problem, wherein stockholders refuse Zero-investment portfolioA portfolio of zero net value established by buying and shorting component Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |