TARP, which stands for the Troubled Asset Relief Program, is the program that started in 2008 through which the U.S. government has been buying assets and equity from struggling financial institutions to strengthen the stability of the financial sector and of the financial markets.
Archive for the ‘Daily Definition’ Category
TARP is…
Friday, July 17th, 2009An Offer is…
Friday, July 17th, 2009An offer is the price at which a person is willing to sell something of value. For example, if you are willing to sell your Microsoft (MSFT) stock at $25 per share, then your offer is $25. It is the opposite of Bid, which is the willingness to buy at a certain price.
Real Estate is…
Friday, July 17th, 2009Real Estate is land and anything on it like a house, an apartment, a building, a shed, etc.
Panic Selling is…
Friday, July 17th, 2009A Security is…
Friday, July 17th, 2009A security is an instrument that shows your ownership in a firm or with federal, state, or local government either through stocks, bonds, or other types of investments.
A Takeover is…
Wednesday, July 15th, 2009A takeover is generally the act of assuming control of something, but in business it refers to the purchase of one company by another. For example, if Corporation A takes over Corporation B, then Corporation B is now owned and controlled by Corporation A. A takeover can be done by purchasing stock or exchanging stock; it can also be hostile or friendly.
A Donor is…
Monday, July 13th, 2009A donor is someone who gives to charity. If you give money to your favorite nonprofit, then presto – you’re a donor!
Corporate Restructuring is…
Tuesday, July 7th, 2009Corporate restructuring is when a company reorganizes or redesigns key parts of itself to become more profitable, increase competitiveness, and/or to adapt to a changing economy. A company would restructure its organizational or capital structure when its old way of doing business isn’t working anymore – restructure or bust!
A Financial Instrument is…
Tuesday, July 7th, 2009A financial instrument is a general term for any financial asset that can be bought and traded. Stocks, bonds, treasury notes, options, derivatives, and equity shares are all forms of financial instruments.
A Commission is…
Tuesday, July 7th, 2009A commission is a negotiated payment you agree to pay your agent or broker in exchange for their help in a financial transaction. For example, you pay your real estate agent a commission when he or she finds a buyer for your house. Basically, it is a performance-based compensation.