What is a Selling Group? A selling group comprises dealers and brokers involved in marketing or selling a new security issue or secondary issue of equity or debt. The selling group buys securities in bulk directly from the issuer and then sells them to the members of the selling group at a markup on what…
What is a Seller’s Market? A seller’s market is a market where the demand for a product exceeds its supply. Generally, a seller’s market is characterized by a shortage of goods for sale, giving the seller the power to fix the price of commodities. A seller’s market is common in the real estate sector, where…
What is Seller’s Option? Seller’s option is a settlement option that allows a seller to set the timelines for the delivery of the underlying asset and determine when the final settlement will occur. Such a type of settlement option is available in forward contracts. It allows the seller some leeway in the specifications of a contract,…
What is Sell to Close? Sell to close is an options trade order and refers to closing out (selling) a long position in an options contract. Understanding Sell to Close A long options contract comes with three outcomes: 1. The options contract expires worthless. In long call options, it occurs when the underlying asset’s price…
What is Equity Co-Investment? An equity co-investment (or co-investment) is a minority investment made by the co-investor into a company. The investment is made alongside a financial sponsor. An example of a co-investor includes institutional investors such as an insurance company, pension fund, or endowment. The term minority investment means the co-investor owns less than…
What is a Green Bond? A green bond is a debt security issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate. A green bond is alternatively known as a climate bond. How It Works Green bonds are fundamentally the same as conventional bonds: a…
What is an Exchange-Traded Note (ETN)? An exchange-traded note (ETN) is a loan instrument issued by a financial entity, such as a bank. It comes with a set maturity period, usually from 10 to 30 years. It can be traded based on demand and supply. Unlike other debt tools, exchange-traded notes will not produce any…
What is an Exchange-Traded Product (ETP)? An exchange-traded product (ETP) refers to a financial product that is publicly traded like a bond in the stock market. ETPs offer a cost-effective and safe way to diversify an investment portfolio by acquiring exposure to an index or asset class. They are passive investments, with typically lower fees…
What is a KSOP? A KSOP is a popular retirement plan that integrates the stock holding plan of an employee with a 401(k) plan. The organization would balance employee payments in shares rather than cash under the KSOP form of retirement package. By minimizing costs that would occur by running an employee stock ownership plan…
