What is a Special Needs Trust? A special needs trust is a fiduciary relationship in which persons with developmental disabilities hold legal rights to the benefits of the property contained therein. Individuals planning to convey long-term financial resources to persons with special needs without jeopardizing their eligibility for public benefits resort to using special needs…
What is a Special Employer? A special employer is an employer who borrows an employee from the original employer and to whom the new employee owes a duty. When one employer loans another employer to provide specific services and expertise on loan, a special employment relationship changes the two employers’ roles and responsibilities. The borrowing…
What is a Special Item? A special item is an unusual transaction or event that management discloses separately that is not expected to recur on a regular basis. Special items occur during normal business cycles and are typically reported separately based on management’s judgment. They are used to differentiate normal business transactions from one-time transactions…
What is Shareholders’ Equity? Shareholders’ equity refers to the owners’ claim on the assets of a company after debts have been settled. It is also known as share capital, and it has two components. The first is the money invested in the company through common or preferred shares and other investments made after the initial…
What is a Sovereign Bond Yield? A sovereign bond yield is an interest rate that a national government pays to service its outstanding bonds. As with corporate bonds, a sovereign bond yield depends on the inherent risk for the bondholders. However, the risk involves political risks, economic uncertainties, and exchange rates if the issued debt…
What is a Sophisticated Investor? A sophisticated investor is a term used to refer to an individual or a class of individuals with vast knowledge and experience in investment and business matters, alongside high net worth that allows them to go for high-risk investment opportunities. Under financial regulation laws, a sophisticated investor has a special…
What is a Shareholder Agreement? A shareholder agreement outlines how a company is to be operated, the rights and obligations afforded to the shareholders, and the relationship between the company and the shareholders. It is similar to a partnership agreement, which is an arrangement between the various partners in a business. The purpose of a…
What is a Shareholder Register? A shareholder register is a list of all active and former owners of a company’s shares. The register includes details of shareholders, such as their name, address, the number of shares they own, class of shares held, date when they became a shareholder, and when they ceased being a shareholder….
What is the Shareholder Equity Ratio? The shareholder equity ratio is a ratio that shows the amount of a company’s assets that have been financed using the owner’s equity instead of debt. It shows the portion of shareholders’ funds that have been used to finance the assets of the company, and it indicates the value…
What is a Share Premium Account? A share premium account is sometimes referred to as an additional paid-in account, and it is included in the shareholder’s equity section of a balance sheet. The share premium account records the amount received that is above the subscription price of a share. Shares are considered to be issued…
