Category: Investments glossary

A proxy vote is a ballot cast by one person or firm on behalf of a shareholder of a corporation who may not be able to attend a shareholder meeting, or who otherwise desires not to vote on an issue. Shareholders receive a proxy ballot in the mail along with an information booklet called a proxy statement, which describes the issues to be voted on during the shareholder meeting. In a shareholder meeting, shareholders may be casting votes about who to elect as directors of the board, approving a merger or acquisition, or approving a stock compensation plan. read more

Non-marginable securities are not allowed to be purchased on margin at a particular brokerage, or financial institution, and must be fully funded by the investor’s cash.

A currency carry trade is a strategy whereby a high-yielding currency funds the trade with a low-yielding currency. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.

The knowledge economy is a system of consumption and production that is based on intellectual capital. In particular, it refers to the ability to capitalize on scientific discoveries and basic and applied research. This has come to represent a large component of all economic activity in most developed countries. In a knowledge economy, a significant component of value may thus consist of intangible assets such as the value of its workers’ knowledge or intellectual property.

Enhanced oil recovery (EOR), also known as “tertiary recovery,” is a process for extracting oil that has not already been retrieved through the primary or secondary oil recovery techniques.

A non-competitive tender is a bid made by a small investor to purchase a debt issue that has its price based on the average price of all competitive tenders submitted. It is a method of distribution used primarily by the U.S. Treasury and is one of the two bid processes for buying debt issues. A non-competitive tender is for small investors, while the competitive tender is for large institutional investors. A non-competitive tender is also known as a non-competitive bid.

Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

A non-competitive tender is a bid made by a small investor to purchase a debt issue that has its price based on the average price of all competitive tenders submitted. It is a method of distribution used primarily by the U.S. Treasury and is one of the two bid processes for buying debt issues. A non-competitive tender is for small investors, while the competitive tender is for large institutional investors. A non-competitive tender is also known as a non-competitive bid.

An irrevocable letter of credit (ILOC) is an official correspondence from a bank that guarantees payment for goods or services being purchased by the individual or entity, referred to as the applicant, that requests the letter of credit from an issuing bank.

A holding company depository receipt (HOLDR) is a security that allows investors to buy and sell a basket of stocks in a single transaction. HOLDRs allow investors to trade stocks in a specific industry, sector, or group.