Contango refers to an unusual situation in which a given commodity’s future price rises to a higher amount than the anticipated future spot price. As such, it also means that the commodity in question has a future date spot price that is lower than the present price. It relates that investors will pay a greater price for a commodity in [...]
Offshore Bonds are sometimes called offshore investment bonds. These investment vehicles allow individuals to gain control over what point they pay tax, to whom they will pay such tax, and how much they will ultimately pay in the end. These types of bonds are offered internationally from some of the mega global multinational life insurance firms like Britain’s Old Mutual [...]
Mortgage Backed Obligations are also called mortgage backed securities, or MBS. These are real estate-based financial instruments. They represent an ownership stake in a pool of mortgages. They can also be called a financial security or obligation for which mortgages underlie the instrument. Such a security offers one of three different means for the investor getting paid. It might be [...]
Representative money refers to any form of exchange that stands for a backing store of value. Yet this representing money itself usually has little to no value intrinsically, or by itself. This is a different concept from fiat money which might or might not possess a valuable store underlying it. For money to be legitimate representative money, it must have [...]
Long-Term Capital Management refers to an enormous hedge fund that had been created and led by several famed Wall Street investor traders and economists who were Nobel Prize winners. Because of its huge size and connectedness to many other systemically important financial institutions and markets, its demise nearly brought down the worldwide financial system back in 1998. It was the [...]
Investment Value refers to an asset’s specific value given a particular range of investment parameters. It can be defined as the property value to a given group of investors (or an individual investor) who have specific investment goals in mind. This makes it a subjective measurement of the asset or property’s value. Many times potential investors will employ the investment [...]
A charge off refers to an expense item found on a corporation’s income statement. This could be one of two things. It might be connected with a debt that the reporting firm has decided is not realistically collectable. They would then write this off from the corporate balance sheet. It might also be a likely one time only expense which [...]
A Transfer of Interest refers to an individual, business, or other organization choosing to transfer over its ownership in an asset or object. This could be a business entity, piece of Real Estate, or asset that the owner shifts to another party. Most commonly the term becomes utilized regarding the transferring of an entity’s ownership of an interest in a [...]
Quota Effects refer to the economic consequences of a government body imposing an import quota in a national economy. Such import quotas are the legal limitations on the quantities of specific imports that companies are allowed to bring into a given nation. As an example, the United Kingdom might decide to restrict the quantities of Japanese cars that may be [...]
Securities refer to financial instruments which stand for a position of ownership in a corporation which is publically traded. These would be stock shares. They could also be a creditor-like relationship to a corporation or a government entity or agency. This security would be called a bond. They might also be an option, which is the right but not obligation [...]
