Material Nonpublic Information
What is Material Nonpublic Information? Material Nonpublic Information is information that would affect the market value or trading of a security and that has not been disseminated to the general public. It is considered insider information. Information is considered to be “material” if its dissemination to the public would likely affect the market value or...
Marketable Securities
What are Marketable Securities? Marketable securities are unrestricted short-term financial instruments that are issued either for equity securities or for debt securities of a publicly listed company. The issuing company creates these instruments for the express purpose of raising funds to further finance business activities and expansion. Governments also issue debt securities of this type in the form of T-bills, used for...
Fixed Income Bond Terms
What are the Most Important Fixed Income Terms? Welcome to CFI’s guide to the most important fixed income terms. For a complete understanding of bonds and fixed-income securities, check out our Fixed Income Fundamentals course. Annuity: An annuity is a series of payments in equal time periods, guaranteed for a fixed number of years. Annuity...
Value Trap
What is a Value Trap? A value trap occurs when an investor looks at the fundamentals and market price of a stock, and it appears the stock is valued at a discount (cheap to own), but it ends up not being the case. The illusion causes the investor to think that they will be able...
Vulture Capitalist
What is a Vulture Capitalist? A vulture capitalist is a type of investor that scavenges off distressed companies for profit, like a vulture scavenges off the dead bodies of animals. (Vulture capitalists typically receive criticism because their tactics involve the targeting of individuals and/or companies who are already experiencing financial difficulties!) Hedge funds and private...
