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Financial Terms | |
Remainderman |
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Definition of RemaindermanRemaindermanOne who receives the principal of a trust when it is dissolved.
Related Terms:All or noneRequirement that nOne of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable At-the-moneyAn option is at-the-mOney if the strike price of the option is equal to the market price of the Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Collateral trust bondsA bond in which the issuer (often a holding company) grants investors a lien on ComponentRaw materials or subassemblies used to make either finished goods Deed of trustIndenture. ![]() Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. economic components modelAbrams’ model for calculating DLOM based on the interaction of discounts from four economic compOnents. Equipment trust certificatesCertificates issued by a trust that was formed to purchase an asset and lease it European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Fiat MoneyFiat MOney is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat mOney is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category. Generally Accepted Accounting Principals (GAAP)A technical accounting term that encompasses the Grantor trustA mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee ![]() High-Powered MoneySee mOney base. Hot moneyMOney that moves across country borders in response to interest rate differences and that moves In-the-moneyA put option that has a strike price higher than the underlying futures price, or a call option International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Fund (IMF)Organization originally established to manage the postwar fixed exchange rate system. International Monetary Market (IMM)A division of the CME established in 1972 for trading financial Investment trustA closed-end fund regulated by the Investment Company Act of 1940. These funds have a Law of one priceAn economic rule stating that a given security must have the same price regardless of the law of one priceTheory that prices of goods in all countries should be equal when translated to a common currency. MonetarismSchool of economic thought stressing the importance of the mOney supply in the economy. Adherents believe that the economy is inherently stable, so that policy is best undertaken through adoption of a policy rule. Monetarist RuleProposal that the mOney supply be increased at a steady rate equal approximately to the real rate of growth of the economy. Contrast with discretionary policy. ![]() Monetary AggregateAny measure of the economy's mOney supply. Monetary BaseSee mOney base. Monetary goldGold held by governmental authorities as a financial asset. Monetary / non-monetary methodUnder this translation method, mOnetary items (e.g. cash, accounts Monetary policyActions taken by the Board of Governors of the Federal Reserve System to influence the Monetary PolicyActions taken by the central bank to change the supply of mOney and the interest rate and thereby affect economic activity. Monetizing the DebtSee printing mOney. MoneyAny item that serves as a medium of exchange, a store of value, and a unit of account. See medium of exchange. Money baseComposed of currency and coins outside the banking system plus liabilities to the deposit mOney banks. Money BaseCash plus deposits of the commercial banks with the central bank. Money center banksBanks that raise most of their funds from the domestic and international mOney markets, relying less on depositors for funds. Money LaunderingThis is the process by which "dirty mOney" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins. Money managementRelated: Investment management. Money managerRelated: Investment manager. Money marketMOney markets are for borrowing and lending mOney for three years or less. The securities in Money MarketA market that specializes in trading short-term, low-risk, very liquid money marketMarket for short-term financial assets. Money MarketA financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded. Money MarketFinancial market in which funds are borrowed or lent for short periods. (The mOney market is distinguished from the capital market, which is the market for long term funds.) Money market demand accountAn account that pays interest based on short-term interest rates. Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, money market fundA type of mutual fund that invests primarily in short-term debt securities maturing in One year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates. Money market hedgeThe use of borrowing and lending transactions in foreign currencies to lock in the Money market notesPublicly traded issues that may be collateralized by mortgages and MBSs. Money MultiplierChange in the mOney supply per change in the mOney base. money orderA guaranteed form of payment in amounts up to and including $5,000. You might request a mOney order in order to pay for tuition fees at a university or a college, or for a magazine subscription. Money purchase planA defined benefit contribution plan in which the participant contributes some part and Money Rate of InterestSee interest rate, nominal. Money rate of returnAnnual mOney return as a percentage of asset value. Money supplyM1-A: Currency plus demand deposits Neutrality of MoneyThe doctrine that the mOney supply affects only the price level, with no long-run impact on real variables. New moneyIn a Treasury auction, the amount by which the par value of the securities offered exceeds that of Notional principal amountIn an interest rate swap, the predetermined dollar principal on which the One-factor APTA special case of the arbitrage pricing theory that is derived from the One-factor model by One man pictureThe picture quoted by a broker is said to be a One-man picture if both the bid and offered One-way market1) A market in which only One side, the bid or asked, is quoted or firm. Out-of-the-money optionA call option is out-of-the-mOney if the strike price is greater than the market price Personal trustAn interest in an asset held by a trustee for the benefit of another person. Phone switchingIn mutual funds, the ability to transfer shares between funds in the same family by Postponement optionThe option of postponing a project without eliminating the possibility of undertaking it. Precautionary demand (for money)The need to meet unexpected or extraordinary contingencies with a Principal1) The total amount of mOney being borrowed or lent. PrincipalThe original amount loaned, which is repaid plus interest. See face value. PrincipalThe obligation due under a debt instrument exclusive of interest. Principal-agent relationshipA situation that can be modeled as One person, an agent, who acts on the behalf Principal amountThe face amount of debt; the amount borrowed or lent. Often called principal. Principal AmountGenerally, refers to the face value of a debt. Principal of diversificationHighly diversified portfolios will have negligible unsystematic risk. In other Principal only (PO)A mortgage-backed security in which the holder receives only principal cash flows on Principal valueSee Par value. Printing MoneySale of bonds by the government to the central bank. Quantity Theory of MoneyTheory that velocity is constant, and so a change in mOney supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ. Real Money SupplyMOney supply expressed in base-year dollars, calculated by dividing the mOney supply by a price index. REIT (real estate investment trust)Real estate investment trust, which is similar to a closed-end mutual Remaining principal balanceThe amount of principal dollars remaining to be paid under the mortgage as of Risk proneWilling to pay mOney to transfer risk from others. Roth IRA. An IRA account whose earnings are not taxable at all under certaincircumstances. Seasoned datingsExtended credit for customers who order goods in periods other than peak seasons. Seasoned issueIssue of a security for which there is an existing market. Related: UnseasOned issue. Seasoned new issueA new issue of stock after the company's securities have previously been issued. A seasoned offeringSale of securities by a firm that is already publicly traded. SIMEX (Singapore International Monetary Exchange)A leading futures and options exchange in Singapore. Speculative demand (for money)The need for cash to take advantage of investment opportunities that may arise. Stand-alone principleInvestment principle that states a firm should accept or reject a project by comparing it Target zone arrangementA mOnetary system under which countries pledge to maintain their exchange rates Term trustA closed-end fund that has a fixed termination or maturity date. Time value of moneyThe idea that a dollar today is worth more than a dollar in the future, because the dollar TombstoneAdvertisement listing the underwriters to a security issue. Transaction demand (for money)The need to accommodate a firm's expected cash transactions. 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. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |