Archive for the ‘Needs Link’ Category

Bankruptcy is…

Thursday, August 20th, 2009

Bankruptcy is a legal procedure which occurs when a company in debt is unable to make the payments it owes and therefore the assets of the company are distributed to the creditors. Filing for bankruptcy can be either voluntary or involuntary but is an indicator that a company cannot raise enough money to repay the debt without selling its assets.

Individuals can also file for bankruptcy for basically the same reason: they have more debt than they can reasonably repay. When you file for bankruptcy, your debts are either forgiven or reorganized into a viable payment plan. A declaration of personal bankruptcy will remain on your credit record for seven to ten years.

An Annual Report is…

Thursday, August 20th, 2009

An annual report is a written account of an organization’s financial progress over the past year and its projections for the future. The SEC requires public companies and mutual funds to give an annual report to their shareholders at the end of every fiscal year. Nonprofits also generally publish annual reports.

Social Security is…

Thursday, August 20th, 2009

Social security is a program run by the U.S. government that provides workers and their dependents with money for retirement and injuries that prevent regular employment. Everyone with a legal job pays a Social Security tax, which represents a small percentage of their salary. The idea is that you pay into this huge fund throughout your career, and then when you retire you have the right to receive regular payments from this fund to help cover the cost of living without a job.

The Tech Bubble was…

Thursday, August 20th, 2009

The tech bubble (also known as the internet or dot-com bubble) was the period between 1998 and 2001 during which stock markets in western countries saw their values rise rapidly in the technology sectors. During this time, a good number of tech. companies were founded, went public, and saw their stocks soar.

A Hedge Fund is…

Thursday, August 20th, 2009

A hedge fund is a limited partnership of investors that uses high-risk methods, such as investing with borrowed money, in the hope of realizing large gains. Similar to a mutual fund, a hedge fund pools investors’ money together in order to increase the possibility of realizing serious earnings on their investments.

Over-The-Counter is…

Thursday, August 20th, 2009

Over-the-counter is a term used to describe the trading of financial instruments that does not happen through an exchange mechanism (such as the stock market).  Instead, these instruments are traded directly among dealers, either on the phone or electronically.

Controlling Interest is…

Thursday, August 20th, 2009

Controlling interest refers to the possession of over 50% of the voting shares of a particular company. Having control of a company is basically like getting the majority vote.

A Hold is…

Tuesday, August 18th, 2009

A hold is the action of maintaining ownership of a security over a long period of time. The word “hold” can also refer to a financial analyst’s recommendation to neither buy nor sell a stock or financial instrument based on research and reasoning. A securities analyst’s recommendation to hold appears to take a middle ground between encouraging investors to buy and suggesting that they sell.

A Stock Market is…

Tuesday, August 18th, 2009

A stock market is a public market for trading (buying and selling) stocks.  The NYSE  (New York Stock Exchange) and Nasdaq are the largest stock markets in the United States.