What are Homemade Dividends? Homemade dividends refer to a form of investment income that investors generate from the sale of a percentage of their equity portfolio. The investor fulfills his cash flow objectives by selling a portion of shares in his portfolio instead of waiting for the traditional dividends. Usually, if a shareholder needs some…
What is Quality of Security? Selecting the right quality of security is one of the most important factors to consider in investing. Security refers to a negotiable financial instrument that holds monetary value and represents an ownership stake in a publicly traded corporation, either through stocks, bonds, or options. The security ownership may be represented…
What are Perpetual Bonds? Perpetual bonds – which are also referred to as perpetuals or just “perps” for short – are bonds with no maturity date. They pay interest to investors in the form of coupon payments, just as with most bonds, but the bond’s principal amount does not come with a set date for…
What is Month-to-Month Tenancy? Month-to-month tenancy refers to a form of periodic tenancy in which the landlord leases property to the tenant for a period of 30 days. The tenancy is created through a written, oral, or express agreement. Month-to-month tenancies may be terminated by either party at the expiry of the contract or by…
What is Quality of Real Estate? For potential buyers or investors, determining the quality of real estate is a very important undertaking. Real estate is widely considered as one of the most profitable investments for those looking to build wealth over time and invest in opportunities that provide stable incomes and returns. It is one…
What is Excess Capacity? Excess capacity (or unutilized capacity) occurs when a firm operates or is producing output at less than the optimum level. It can happen when there is a market recession or increased competition, where demand declines and firms are forced to reduce capacity to decrease costs. To increase demand, companies typically decrease…
What is Home Modification? Home modification refers to the alteration of both temporary and permanent features in the indoor or immediate outdoor environment that potentially impedes independent living for people with disabilities. It is a form of intervention meant to enable people living with disabling conditions to continue living in their homes and restore the home…
What is a Home Mortgage? A home mortgage is a loan provided by a lender – usually a bank, mortgage company, or other financial institution – to purchase a residence. The home mortgage agreement requires the borrower to transfer the title of the property to the lender, with a condition to transfer back the title when…
What is the Home Mortgage Disclosure Act (HMDA)? The Home Mortgage Disclosure Act (HMDA) is a U.S. federal law that was enacted in 1975, and it requires financial institutions to provide certain mortgage data to the public. Specifically, the law requires lenders to maintain records of their lending practices. Its goal is to create transparency in…
