ENCUMBERED SECURITIES
Securities one entity owns although subject to a legal claim by another entity. When an entity borrows from one another, legal claim on the securities the borrower has can be taken as security by the lender in the event the borrower defaults on its obligation. The owner of securities still has the title of the securities. However, the claim or lien is still on record. In case these are sold, the party with the legal claim must be paid back first. In some instances, these securities cannot be sold until the owner settles any outstanding debts to the lender who has claim on the securities.
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Asset Substitution Problem
A problem which arises when a company trades its low-risk assets for high-risk investments. This substitution moves the value from the bondholders ...
Lawful Money
Any currency, in coin or paper form, that is issued by the United States Treasury, not the Federal Reserve System. It also includes gold and silver ...
Red Clause Letter Of Credit
It refers to a specific type of letter of credit where a buyer extends an unsecured loan to a seller. This permits documentary credit beneficiaries ...
Trust Certificate
Bond or debt investment backed by other assets and serve like a collateral. Normally in a public company, the assets may be seized or sold for the ...
Cowboy Marketing
Slang term for a situation in which a firm is unaware a marketer sends massive spam emails to everyone promote the stock, instead of producing legi ...
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Fixed interest rates.
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Can You Afford the Renovation Cost?
Do you want to know if your current home can withstand any renovation? Consult the following professionals first for guidance.
Featured Investment: Annuity
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ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 05:00 | Credit Card Spending | Mar | |
| 14:30 | Industrial Product Price Index | Mar | |
| 14:30 | New Housing Price Index | Mar | |
| 14:30 | Raw Materials Price Index | Mar | |
| 16:00 | Consumer Confidence | Apr | |
| 02:30 | PMI Manufacturing | Apr | |
| 02:30 | Tertiary Industry Index | Apr | |
| 02:30 | PMI Composite | Apr | |
| 08:00 | Public Sector Net Borrowing | Mar |
