Senior Debt
What is Senior Debt? Senior Debt, or a Senior Note, is money owed by a company that has first claims on the company’s cash flows. It is more secure than any other debt, such as subordinated debt (also known as junior debt), because senior debt is usually collateralized by assets. It means the lender is...
Senior Term Debt
What is a Senior Term Debt? Senior term debt is a loan with a priority repayment status in case of bankruptcy, and typically carries lower interest rates and lower risk. The term can be for several months or years, and the debt may carry a fixed or variable interest rate. To reduce repayment risk, fixed...
Original Issue Discount (OID)
What is an Original Issue Discount (OID)? An original issue discount (OID) is a type of debt instrument. Often a bond, OID’s are sold at a lower value than face value when issued, hence the D in OID. On maturity, the face value is paid out to the investor. The difference received is a gain...
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...
