Trading Halt
What is a Trading Halt? A trading halt refers to a temporary stoppage of equity trading in accordance with regulatory authority or stock exchange rules. The stoppage may occur for a single stock, an exchange, or a group of exchanges. Significant news about a company – whether it be good news or bad news –...
Securities Lending
What is Securities Lending? Securities lending is the act of lending or loaning a financial security, a stock, a bond, or a derivative, to a firm or an investor. It involves the borrower providing collateral for the security of the loan. The collateral can be in the form of either cash, bonds, shares, or a letter...
Trading Below Cash
What is Trading Below Cash? Trading below cash takes place when the market capitalization of a company is lower than its cash holdings net of liabilities. It is a term often used in the investment industry. Such a situation usually happens to companies with uncertain or pessimistic outlooks. Understanding Trading Below Cash The market value...
High-Yield Bond
What is a High-Yield Bond? A high-yield bond is a bond that carries a relatively higher interest rate as a result of its lower credit rating, compared to investment-grade bonds. It is a corporate bond with a credit rating below Baa3 from Moody’s or BBB- from Standard and Poor’s (S&P) and Fitch. High-Yield Bonds and...
High-Water Mark
What is the High-Water Mark? High-water mark is the highest level of value reached by an investment account or portfolio. It is often used as a threshold to determine whether a fund manager can gain a performance fee. Investors benefit from a high-water mark by avoiding paying performance-based bonuses for poor performance or for the...
