A public foundation is an organization where no more than 50% of the funding is donated by a private individual or a single company/firm. In other words, the funding for a public foundation can come from anywhere, as long as it’s diversified.
Archive for the ‘Daily Definition’ Category
A Public Foundation is…
Wednesday, August 5th, 2009Monetization is…
Wednesday, August 5th, 2009Common Stock is…
Wednesday, August 5th, 2009Common stock is a form of stock that gives the shareholder equity ownership in a company. This ownership includes voting rights that can be exercised in corporate decisions like choosing the Board of Directors. Shareholders of common stock may receive dividends (if the company shares profits), but only after preferred stock owners have received their dividends.
A Bear Trap is…
Wednesday, August 5th, 2009A bear trap is the problem that faces short sellers when stock prices stop falling and start rising again. Short sellers sell stock thinking they can buy it back cheaper, but when they get stuck in a bear trap, they actually have to buy the stock back at a higher price.
Value Added is…
Wednesday, August 5th, 2009Value added is the amount by which the sale price of a commodity exceeds the value of the materials and labor used to produce it. In mathematical terms, value added = value after production − costs of production.
A Z-Bond is…
Wednesday, August 5th, 2009Unsystematic Risk is…
Wednesday, August 5th, 2009An Issuer is…
Wednesday, August 5th, 2009An issuer is anybody or anything that introduces a financial asset – usually a security – to the market to raise money. For example, a government is an issuer of government bonds, and a company can issue stocks or derivatives.
High-Yield Bonds are…
Wednesday, August 5th, 2009High-yield bonds are bonds that have relatively high interest rates in exchange for having greater risk attached. Basically, because high-yield bonds have less security, the organizations that offer them attach higher interest rates as an incentive to buy. High-yield bonds are often called “junk bonds.” Bonds are classified as “junk” when they have a risk rating of Ba, BB, or lower.
An Issue is…
Wednesday, August 5th, 2009An issue is a financial asset that an issuer sells to raise money for itself. For example, a company is an issuer when it sells stocks and the stocks are the issue. A country can also issue bonds to raise money – to issue securities, like stocks or bonds, means to put them on the market for sale.