Trading Halt
What is a Trading Halt? A trading halt refers to a temporary stoppage of equity trading in accord 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, bond, or derivative, to a firm or an investor. It involves the borrower to provide collateral for the security that they are borrowing. The collateral can be in the form of either cash, bonds, shares or 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...
