A group of equal-minded individuals (friends, colleagues or acquaintances) who gather together for the purpose of investing in the stock exchange.
Similar financial termsReinvestment risk on bonds
Usually, when the yield of a bond is calculated, you assume that the coupons received before maturity are reinvested. The additional income from such reinvestment is sometimes referred to as interest-on-interest which depends on the prevailing interest-rate levels at the time of reinvestment. Volatility in the reinvestment rate of a given strategy because of changes in market interest rates is called reinvestment risk. This risk is that the interest rate at which interim cash flows can be reinve ...
A zero-investment portfolio consists of zero net value because of a balanced establishment between long and short position, usually in the context of an arbitrage strategy.
Investments that involve making capital available to others in exchange for intrest, through savings accounts, loans, or bonds.
Investments that involve ownership of shares or units, through purchase of stock or mutual fund shares.
The mirror image of the asset substitution problem, wherein stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to the debtholders.
Short-term investment services
Services that assist firms in making short-term investments.
Return on investment (ROI)
Generally, book income as a proportion of net book value.
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages secured by any type of real property and issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986.
REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual fund. REITs invest in real estate or loans secured by real estate and issue shares in such investments.
The risk that proceeds received in the future will have to be reinvested at a lower potential interest rate.
The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security.
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.
Net present value of future investments
The present value of the total sum of NPVs expected to result from all of the firm's future investments.
Gross, or total, investment minus depreciation.
Mutually exclusive investment decisions
Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.
Investments that a regulated entity is permitted to make under the rules and regulations that govern its investing.