Tag: funds

Payable On Death – POD definition explanation

What is Payable On Death – POD?
An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client’s assets. The immediate transfer of assets is triggered by the death of the client.

Also referred to as a “”totten trust.”” Read more for examples and further explanation including related video clips and also comments
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Collection Agency definition explanation

What is Collection Agency?
A company hired by lenders to recover funds that are past due or accounts that are in default. The lending company itself may also have a division or subsidiary that acts as its collection agency. A collection agency is often hired after a company has made multiple attempts to collect its receivables. Read more for examples and further explanation including related video clips and also comments
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Systematic Withdrawal Schedule definition explanation

What is Systematic Withdrawal Schedule?
A method of withdrawing funds from an annuity account by which the annuitant withdraws funds from the account in specified amounts for a specified payment frequency. The annuitant is not guaranteed lifelong payments as he or she is with the standard annuitization method. With the systematic withdrawal schedule, the annuitant chooses instead to withdraw funds from his or her account until it is emptied, bearing the risk that the funds become depleted before he or she dies. Read more for examples and further explanation including related video clips and also comments
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Two And Twenty definition explanation

What is Two And Twenty?
A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. More specifically, this phrase refers to how hedge fund managers charge a flat 2% of total asset value as a management fee and an additional 20% of any profits earned. Read more for examples and further explanation including related video clips and also comments
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World Equity Benchmark Series – WEBS definition explanation

What is World Equity Benchmark Series – WEBS?
A type of international fund traded on the American Stock Exchange that follows the Morgan Stanley Capital International (MSCI) country indexes. It was introduced in 1996 by Morgan Stanley and is a type of hybrid security that possesses qualities from both open and closed-end funds. Investors can use WEBS to achieve international diversification effectively and efficiently. Read more for examples and further explanation including related video clips and also comments
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Singapore Interbank Offered Rate – SIBOR definition explanation

What is Singapore Interbank Offered Rate – SIBOR?
The interest rate at which banks located in Asian time zones can borrow funds from other banks located in the region. In Asia, the SIBOR is used more commonly than the LIBOR. It is set daily by the Association of Banks in Singapore (ABS). More than anything else, the SIBOR serves as a benchmark, or reference rate for borrowers and lenders that are directly or indirectly involved in an Asian financial market. Read more for examples and further explanation including related video clips and also comments
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Nasdaq Composite Index definition explanation

What is Nasdaq Composite Index?
A market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks. The index includes all Nasdaq listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debentures. Read more for examples and further explanation including related video clips and also comments
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Investment Company definition explanation

What is Investment Company?
A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (also referred to as a mutual fund). In the U.S., most investment companies are registered with and regulated by the Securities & Exchange Commission under the Investment Company Act of 1940.

Also known as “”fund company”” or “”fund sponsor””. Read more for examples and further explanation including related video clips and also comments
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