Investments

Commercial Property definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Commercial Property
Common examples of commercial property include the grocery store you regularly visit and the office buildings found near major urban centers. It is possible to monitor the trend in nationwide commercial property prices by following the Moody’s Real Commercial Property Index.

Retail investors can profit from commercial real estate by investing in various real estate investment trusts (REIT).

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Compound Interest definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Compound Interest
The more frequently interest is added to the principal, the faster the principal grows and the higher the compound interest will be. The frequency at which the interest is compounded is established at the initial stages of securing the loan. Generally, interest tends to be calculated on an annual basis although other terms may be established at the time of the loan.

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When Issued – WI definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains When Issued – WI
Treasury securities, splits, and new issues are all traded on a when-issued basis. The term is actually short for “”when, as, and if issued.”"

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Tokyo Stock Exchange – TSE definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Tokyo Stock Exchange – TSE
Tokyo Stock Exchange was established on May 15, 1878, and trading began on June 1st.

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Supermajority definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Supermajority
For example, let’s say the TSJ Sports Conglomerate is faced with a merger proposal from ABC Sports Inc. If the company has a supermajority amendment in it’s charter, then before it is able to merge (even if management fully endorses the move) the company will need to hold a shareholder vote on the issue and gain a majority equal to, or greater than, the amendment specifies (anywhere from 67-90%).

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Schedule 13D definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Schedule 13D
Once the disclosure is made to the SEC, the company and the exchange(s) on which the company trades are notified of the new beneficial owner.

You can find most company’s 13D filings in the SEC’s EDGAR database.

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Proxy Statement definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Proxy Statement
Issues covered in a proxy statement can include proposals for new additions to the board of directors, information on directors’ salaries, information on bonus and options plans for directors, and any declarations made by company management.

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Proration definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Proration
When you tender an offer for a corporate action, the company making the bid will attempt to fulfill the tender as you requested. However, if the company does not have enough stock or cash, a mixture will be given in order to appease all stockholders.

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People Pill definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains People Pill
This is a variation of the poison pill defense.

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Outside Director definition explanation

admin — Mon, 02 Mar 2009 09:59:57 +0000

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

Example explains Outside Director
Outside directors are advantageous because they have very little conflict of interest.

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