Investments

What is Anti-Takeover Statute?
A set of state regulations that prevent or deter companies from attempting hostile takeovers. These regulations vary across state lines and typically affect only the companies incorporated within the state Read more for examples and further explanation including related video clips and also comments
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What is Absolute Advantage?
The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service. Read more for examples and further explanation including related video clips and also comments
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What is Commercial Property?
Real estate property that is used for business activities. Commercial properties fall into many categories and include including industrial properties, shopping centers, farms, offices, or even vacant land. Read more for examples and further explanation including related video clips and also comments
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What is Compound Interest?
Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage of the principal amount. Read more for examples and further explanation including related video clips and also comments
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What is When Issued - WI?
A transaction which is made conditionally because a security has been authorized, but not yet issued. Read more for examples and further explanation including related video clips and also comments
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What is Tokyo Stock Exchange - TSE?
The stock exchange headquartered in Tokyo, Japan. Read more for examples and further explanation including related video clips and also comments
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What is Supermajority?
A corporate amendment in a company’s charter requiring a large majority (anywhere from 67-90%) of shareholders to approve important changes, such as a merger.

This is sometimes called a “”supermajority amendment”". Often a company’s charter will simply call for a majority (more than 50%) to make these types of decisions. Read more for examples and further explanation including related video clips and also comments
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What is Schedule 13D?
A form that must be filed with the SEC under Rule 13D. The form is required when a person or group acquires more than 5% of any class of a company’s shares. This information must be disclosed within 10 days of the transaction. Rule 13D requires the owner to also disclose any other person who has voting power or the power to sell the security. Read more for examples and further explanation including related video clips and also comments
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What is Proxy Statement?
A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. Read more for examples and further explanation including related video clips and also comments
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What is Proration?
A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered. Read more for examples and further explanation including related video clips and also comments
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What is People Pill?
A defensive strategy to ward off a hostile takeover. Management threatens that, in the event of a takeover, the entire management team will resign. Read more for examples and further explanation including related video clips and also comments
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What is Outside Director?
Any member of a company’s board of directors who is not an employee or stakeholder in the company. Read more for examples and further explanation including related video clips and also comments
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