Legal investments

Investments that a regulated entity is permitted to make under the rules and regulations that govern its investing.

Similar financial terms

Legal defeasance
The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocable trust sufficient to enable the issuer to discharge fully its obligations under the bond indenture.

Legal bankruptcy
A legal proceeding for liquidating or reorganizing a business.

Legal capital
Value at which a company's shares are recorded in its books.

Mutual Legal Assistance Treaty (MLAT)
An agreement among the U.S. and many Caribbean countries for the exchange of information for the enforcement of criminal laws. U.S. tax evasion is excluded as not being a crime to the offshore countries. The British Virgin Islands have not executed the Treaty.

Dept investments
Investments that involve making capital available to others in exchange for intrest, through savings accounts, loans, or bonds.

Equity investments
Investments that involve ownership of shares or units, through purchase of stock or mutual fund shares.

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.

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American option

An option that may be exercised at any time up to and including the expiration date.


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