Month: February 2020

Société Anonyme (S.A.) is a French term for a public limited company (PLC) and has many equivalents all over the world. A société anonyme is the equivalent of a corporation in the United States (publicly-traded company or incorporated), a public limited company in the United Kingdom, or an Aktiengesellschaft (AG) in Germany. This type of business structure establishes a company as a legal person that can own and transfer property, enter contracts, and be held liable for crimes. One of its key benefits is that it limits the owners’ personal liability for the company’s actions. read more

Greeks is a term used in the options market to describe the different dimensions of risk involved in taking an options position. These variables are called Greeks because they are typically associated with Greek symbols. Each risk variable is a result of an imperfect assumption or relationship of the option with another underlying variable. Traders use different Greek values, such as delta, theta, and others, to assess options risk and manage option portfolios.

The median is the middle number in a sorted, ascending or descending, list of numbers and can be more descriptive of that data set than the average.

Master limited partnerships (MLPs) are a business venture that exists in the form of a publicly traded limited partnership. They combine the tax benefits of a private partnership—profits are taxed only when investors receive distributions—with the liquidity of a publicly-traded company (PTP).

The median is the middle number in a sorted, ascending or descending, list of numbers and can be more descriptive of that data set than the average.

Master limited partnerships (MLPs) are a business venture that exists in the form of a publicly traded limited partnership. They combine the tax benefits of a private partnership—profits are taxed only when investors receive distributions—with the liquidity of a publicly-traded company (PTP).

A memorandum of understanding (MOU or MoU) is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract.

Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan. The company borrowing the funds must provide the lender with a security interest in the assets.

An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.

A non-taxable distribution is a payment to shareholders that is similar to a dividend but that represents a share of a company’s capital rather than its earnings. In any case, it’s not really non-taxable. It’s just not taxed until the investor sells the stock in the company that issued the distribution. Nondividend distributions reduce the basis of the stock.