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Investments glossary

Utility Revenue Bond

A utility revenue bonds are municipal debt securities which are designed to finance public utility projects. The utility is required to repay bondholders directly from project revenues rather than a general tax fund.

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Investments glossary

Trading Platform

A trading platform is software used for trading: opening, closing, and managing market positions through a financial intermediary such as an online broker. Online trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for maintaining a funded account and/or making a specified number of trades per month. The best trading platforms offer a mix of robust features and low fees.

Categories
Investments glossary

Utility Revenue Bond

A utility revenue bonds are municipal debt securities which are designed to finance public utility projects. The utility is required to repay bondholders directly from project revenues rather than a general tax fund.

Categories
Investments glossary

Trading Platform

A trading platform is software used for trading: opening, closing, and managing market positions through a financial intermediary such as an online broker. Online trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for maintaining a funded account and/or making a specified number of trades per month. The best trading platforms offer a mix of robust features and low fees.

Categories
Investments glossary

Return on Assets—ROA

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company’s management is at using its assets to generate earnings. Return on assets is displayed as a percentage.

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Investments glossary

K-Ratio

The K-ratio examines the consistency of an equity’s return over time. The data for the ratio is derived from a value-added monthly index (VAMI), which tracks the progress of a $1,000 initial investment in the security being analyzed. The K-ratio examines the consistency of an equity’s return over time.

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Investments glossary

Heads of Agreement

A heads of agreement is a non-binding document that outlines the basic terms of a tentative partnership agreement or transaction. Also known as a heads of terms, or letter of intent, a heads of agreement marks the first step on the path to a full legally binding agreement or contract and a guideline for the roles and responsibilities of the parties involved in a potential partnership before any binding documents are drawn up. Such a document is commonly used in commercial transactions, such as the purchase of a business. read more

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Investments glossary

Discounting

Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future. Given the time value of money, a dollar is worth more today than it would be worth tomorrow. Discounting is the primary factor used in pricing a stream of tomorrow’s cash flows.

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Investments glossary

What is the USMCA

The United States-Mexico-Canada Agreement, also known as the USMCA, is a trade deal between the three nations which was signed on November 30, 2018. The USMCA replaces the North American Free Trade Agreement (NAFTA), which had been in effect since January of 1994. Under the terms of NAFTA, tariffs on many goods passing between North America’s three major economic powers were gradually phased out. By 2008, tariffs on various agricultural and textiles products, automobiles, and other goods were reduced or eliminated. USMCA came about as a result of U.S. President Donald Trump’s efforts to replace NAFTA based on an argument that the terms of NAFTA were unfair to the United States. USMCA began as the U.S.-Mexico Trade Agreement, announced in late August of 2018. A few weeks later, on September 30, 2018, the United States and Canada formally agreed to replace NAFTA with the new agreement, and the USMCA was finalized a few weeks later. read more

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Investments glossary

Real-Time Gross Settlement (RTGS)

The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities. RGTS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank. Once completed, real-time gross settlement payments are final and irrevocable. In most countries, the systems are managed and run by their central banks.