What is Non-Qualified Deferred Compensation (NQDC)? A non-qualified deferred compensation (NQDC) plan is a type of non-qualifying plan that falls outside the Employment Retirement Security Income Act (ERISA). NQDC plans are also known as 409 (a) plans and golden handcuffs. Employers use such plans to attract and retain key executives and valuable employees. As the…
What is a Non-Purpose Loan? A non-purpose loan is a type of loan that involves complex structuring and uses investment securities as collateral. Borrowers do not need to liquidate their securities and can continue to receive the interest and dividend income from their securities. How Does a Non-Purpose Loan Work? Financial institutions and brokerages offer…
What Does Non-Owner-Occupied Mean? Non-owner-occupied is a property classification in real estate for properties that are not occupied by their owners. Generally, the classification is only used in residential real estate. The term is commonly used for single-family homes and condominiums that are owned but rented to tenants. This classification can also apply to multi-family…
Who is a Non-Objecting Beneficial Owner (NOBO)? The term non-objecting beneficial owner (NOBO) refers to beneficial owners of companies who have permitted their financial institutions to release their personal information to the companies they have invested in. The information given out includes the name and address of the beneficial owner, along with information regarding their…
What is the Japan Credit Rating Agency (JCR)? The Japan Credit Rating Agency (JCR) is a financial services company that provides credit ratings for corporate debt in Japan. Not only does it provide ratings for debt securities, Japanese companies, and governments, but it also publishes financial and economic research as well as offers expertise for…
What is an Interim Dividend? An interim dividend is the distribution of earnings to shareholders before the end of the fiscal year. Such dividends are typically paid out monthly or quarterly and in smaller amounts than an annual dividend. Understanding Dividends To better understand an interim dividend, it is important to first understand how dividends…
What is an Insurance Underwriter? An insurance underwriter analyzes and assesses the risks in providing insurance to individuals and companies, and establishes the pricing of the insurance premium. Underwriters use software, data from actuaries, and statistical analysis in order to evaluate the risk of a future event that would require the insurance company to compensate…
What is an Insurance Premium? An insurance premium is the amount of money that an individual is required to pay to an insurance company in order to receive insurance coverage. Your insurance company will pool together all the money that individuals pay for premiums, which will then be paid out to individuals who need to…
What is an Insurance Claim? An insurance claim is a request made by an insured individual to receive coverage from an insurance company. The claim is made after a covered incident occurs. The compensation that the insured individual receives will cover financial losses resulting from the incident. After an insurance claim is filed, the insurance…
What is Insurance? Insurance is a contract, also referred to as a policy, where an individual is protected from financial losses by an insurance company. In order to receive protection, the company will require you to pay a fee called a premium. In return, you will be provided with a sum of money if you…
