Depositary Receipt
What is a Depositary Receipt? A depositary receipt is a negotiable instrument issued by a bank to represent shares in a foreign public company, which allows investors to trade in the global markets. Understanding Depositary Receipts Depositary receipts allow investors to invest in companies in foreign countries while trading in a local stock...
Demutualization
What is Demutualization? Demutualization refers to the process by which a mutual company converts into a public share company. A mutual company is an institution owned by its mutual owners who enjoy exclusive use of its productive assets. Essentially, the company is owned by its users. When a mutual company decides on a legal ownership...
Demand Deposit
What is a Demand Deposit? A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any time. The depositor will typically use demand deposit funds to pay for everyday expenses. For funds in the account, the bank or financial institution may pay either a low or zero...
Debt Financing
What is Debt Financing? Debt financing occurs when a company raises money by selling debt instruments, most commonly in the form of bank loans or bonds. Such a type of financing is often referred to as financial leverage. As a result of taking on additional debt, the company makes the promise to repay the loan...
Debt Security
What is a Debt Security? A debt security is any debt that can be bought or sold between parties in the market prior to maturity. Its structure represents a debt owed by an issuer (the government, an organization, or a company) to an investor who acts as a lender. Understanding Debt Securities Debt securities are...
