Investment Terms

An open-ended investment company is a type of investment fund domiciled in the United Kingdom that is structured to invest in stocks and other securities. The company's shares list on the London Stock Exchange and the price of the shares are based largely on the underlying assets of the fund. These funds can mix different types of investment strategies such as income and growth, and small cap and large cap, and can constantly adjust their investment criteria and fund size.
OEICs are called open-ended because they can create new shares to meet investor demand. Also, the fund will cancel shares of investors who exit the fund.
An open-ended investment company pools investors’ money and spreads it across a wide range of investments, such as equities or fixed-interest securities. This diversification helps reduce the risk of losing an investor’s principal. OEIC funds offer the potential for growth or income. They usually function as a medium to long-term investment, held for five to 10 years or longer.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

An open-ended investment company is a type of investment fund domiciled in the United Kingdom that is structured to invest in stocks and other securities. The company's shares list on the London Stock Exchange and the price of the shares are based largely on the underlying assets of the fund. These funds can mix different types of investment strategies such as income and growth, and small cap and large cap, and can constantly adjust their investment criteria and fund size.OEICs are called open-ended because they can create new shares to meet investor demand. Also, the fund will cancel shares of investors who exit the fund.An open-ended investment company pools investors’ money and spreads it across a wide range of investments, such as equities or fixed-interest securities. This diversification helps reduce the risk of losing an investor’s principal. OEIC funds offer the potential for growth or income. They usually function as a medium to long-term investment, held for five to 10 years or longer.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment. The term sheet serves as a template and basis for more detailed, legally binding documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is drawn up.
The term sheet should cover the significant aspects of a deal without detailing every minor contingency covered by a binding contract. The term sheet essentially lays the groundwork for ensuring that the parties involved in a business transaction agree on most major aspects. The term sheet reduces the likelihood of a misunderstanding or unnecessary dispute. Additionally, the term sheet ensures that expensive legal charges involved in drawing up a binding agreement or contract are not incurred prematurely.
All term sheets contain information on the assets, initial purchase price including any contingencies that may affect the price, a timeframe for a response, and other salient information.
Term sheets are most often associated with startups. Entrepreneurs find this document crucial for investors, often venture capitalists (VC), who may offer capital to fund startups.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment. The term sheet serves as a template and basis for more detailed, legally binding documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is drawn up.The term sheet should cover the significant aspects of a deal without detailing every minor contingency covered by a binding contract. The term sheet essentially lays the groundwork for ensuring that the parties involved in a business transaction agree on most major aspects. The term sheet reduces the likelihood of a misunderstanding or unnecessary dispute. Additionally, the term sheet ensures that expensive legal charges involved in drawing up a binding agreement or contract are not incurred prematurely.All term sheets contain information on the assets, initial purchase price including any contingencies that may affect the price, a timeframe for a response, and other salient information.Term sheets are most often associated with startups. Entrepreneurs find this document crucial for investors, often venture capitalists (VC), who may offer capital to fund startups.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A structured investment vehicle is a pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset-backed securities.
A structured investment vehicle is a type of special-purpose fund that borrows for the short-term by issuing commercial paper, in order to invest in long-term assets with credit ratings between AAA and BBB. Long-term assets frequently include structured finance products such as Mortgage-Backed Securities, Asset-Backed Securities, and the less risky tranches of Collateralized Debt Obligations.
Funding for SIVs comes from the issuance of commercial paper that is continuously renewed or rolled over; the proceeds are then invested in longer maturity assets that have less liquidity but pay higher yields. The SIV earns profits on the spread between incoming cash flows (principal and interest payments on ABS) and the high-rated commercial paper that it issues.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A structured investment vehicle is a pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset-backed securities.A structured investment vehicle is a type of special-purpose fund that borrows for the short-term by issuing commercial paper, in order to invest in long-term assets with credit ratings between AAA and BBB. Long-term assets frequently include structured finance products such as Mortgage-Backed Securities, Asset-Backed Securities, and the less risky tranches of Collateralized Debt Obligations.Funding for SIVs comes from the issuance of commercial paper that is continuously renewed or rolled over; the proceeds are then invested in longer maturity assets that have less liquidity but pay higher yields. The SIV earns profits on the spread between incoming cash flows (principal and interest payments on ABS) and the high-rated commercial paper that it issues.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Refunded bonds, which are a subset of the municipal and corporate bond classes, are bonds that have their principal cash amount already held aside by the original issuer of the debt. This is often accomplished through the use of a sinking fund, an account a firm uses to set aside money earmarked to pay off the debt from a bond or other debt issue. The sinking fund gives bond investors an added element of security.
A refunded bond should not be confused with a pre-refunding bond, which is a debt security that is issued in order to fund a callable bond. With a pre-refunding bond, the issuer decides to exercise its right to buy its bonds back before the scheduled maturity date.
Refunded bonds are low-risk investments because the principal amount is already accounted for. The funds required to pay off refunded bonds are held in escrow until the maturity date, usually by purchasing Treasury or agency paper. Refunded bonds can also be referred to as pre-refunded bonds or prior issues.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Refunded bonds, which are a subset of the municipal and corporate bond classes, are bonds that have their principal cash amount already held aside by the original issuer of the debt. This is often accomplished through the use of a sinking fund, an account a firm uses to set aside money earmarked to pay off the debt from a bond or other debt issue. The sinking fund gives bond investors an added element of security.A refunded bond should not be confused with a pre-refunding bond, which is a debt security that is issued in order to fund a callable bond. With a pre-refunding bond, the issuer decides to exercise its right to buy its bonds back before the scheduled maturity date.Refunded bonds are low-risk investments because the principal amount is already accounted for. The funds required to pay off refunded bonds are held in escrow until the maturity date, usually by purchasing Treasury or agency paper. Refunded bonds can also be referred to as pre-refunded bonds or prior issues.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Medium-term is an asset holding period or investment horizon that is intermediate in nature. The exact period of time that is considered medium term depends on the investor's personal preferences, as well as on the asset class under consideration. In the fixed-income market, bonds that have a maturity period of five to 10 years are considered to be medium-term bonds.
A day trader who seldom holds open positions overnight may consider a stock that is held for a couple of weeks as a medium-term position, whereas a long-term investor may define the medium term as a holding period of one to three years. Similarly, homeowners may regard anything less than 10 years as a medium-term horizon when it comes to real estate.
Determining an investments horizon, or term is often based on the intention behind the investment more than the investment itself, such as when the funds will be used for other goals, or whether a lump sum or an income stream is the desired result. The most common terms are generally considered short, medium, and long.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Medium-term is an asset holding period or investment horizon that is intermediate in nature. The exact period of time that is considered medium term depends on the investor's personal preferences, as well as on the asset class under consideration. In the fixed-income market, bonds that have a maturity period of five to 10 years are considered to be medium-term bonds. A day trader who seldom holds open positions overnight may consider a stock that is held for a couple of weeks as a medium-term position, whereas a long-term investor may define the medium term as a holding period of one to three years. Similarly, homeowners may regard anything less than 10 years as a medium-term horizon when it comes to real estate.Determining an investments horizon, or term is often based on the intention behind the investment more than the investment itself, such as when the funds will be used for other goals, or whether a lump sum or an income stream is the desired result. The most common terms are generally considered short, medium, and long.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.