What is the Katie Couric Clause? The Katie Couric Clause is a colloquialism for the controversial ruling that the Securities and Exchange Commission (SEC) considered implementing in 2006. The ruling was officially known as the Executive Compensation and Related Party Disclosure clause. The proposed ruling had distinct impacts on executive compensation, director compensation, quarterly 8-K…
What is Listed Property? Listed property is a specific type of depreciable asset that is primarily used as a productive asset for business purposes. To qualify as listed property, the property should be used for over 50% of the company’s business, implying that it can also be used for personal purposes. The benefit derived by…
What is a Junior Mortgage? A junior mortgage refers to a second mortgage that is granted in conjunction with the approval of an effective primary or prior mortgage. The primary mortgage is referred to as a senior mortgage. A junior mortgage can also be a third, fourth, or fifth mortgage granted after the security of…
What is Junior Equity? Junior equity refers to the equity or shares issued by a company that ranks below other shares or stocks issued by the same company. The stock issued is said to be subordinate to other stocks issued by an entity and will be paid out last in a liquidation scenario. Ordinary shares…
What is a Junior Security? A junior security is a security that ranks lower in priority and seniority when contrasted against other securities. It typically comes with a lower priority claim against the assets and incomes of the issuer than other securities. If a company files for bankruptcy and liquidates its assets, it must follow…
What is a Junior Company? A junior company can be defined as a small entity or firm whose sole business activities include the development, exploration, and research of natural resources. Junior companies are comparable to start-ups in the sense that both entities are searching for growth funding or seeking to exit through being purchased by…
What is Junior Debt? Junior debt, also referred to as subordinated debt, is debt that is considered to be of a lower priority in the debt and debt repayment hierarchy. It is normally unsecured and can be provided without any collateral, making it risky. Junior debt tends to come at higher interest rates than senior…
What is Net Cash? Net cash refers to the position of a company with regard to its liquidity position. To calculate net cash, a company will need to deduct its current liabilities from its cash balance. Liabilities are a business’ obligations to transfer assets or provide a service that’s already taken place. For example, a…
What is Natural Law? Natural Law is a philosophical theory that states that human beings have certain universally accepted rights, moral values, and responsibilities that are inherent in human nature. Natural Law Theory is based on the idea that these laws are a universal moral code and are not based on any culture or customs….
What is Net Exposure? Net exposure underlines the difference between a hedge fund’s long positions and its short positions. Once calculated, the net exposure of a fund is presented in a percentage. It will display the fund’s risk with regard to market fluctuations. Generally, the lower the net exposure, the less risk the hedge fund…
