Net Unrealized Appreciation (NUA) Definition and Tax Treatment

What is Net Unrealized Appreciation (NUA)? Net Unrealized Appreciation (NUA) is a tax strategy that allows individuals to take advantage of favorable tax treatment on the distribution of employer stock from a qualified retirement plan, such as a 401(k) or an Employee Stock Ownership Plan (ESOP). NUA refers to the …

National Association of Investors Corp (BetterInvesting) Overview

National Association of Investors Corp (BetterInvesting) Overview [STOCKS catname] Welcome to the National Association of Investors Corp (BetterInvesting) Overview for the [STOCKS catname] category. BetterInvesting is a non-profit organization dedicated to providing education and resources for individual investors. With a focus on long-term investing and fundamental analysis, BetterInvesting aims to …

Mid-Cap: Definition, Other Sizes, Valuation Limits, and Example

What is a Mid-Cap Stock? A mid-cap stock refers to a company with a market capitalization between $2 billion and $10 billion. Market capitalization is calculated by multiplying the company’s stock price by the number of outstanding shares. Mid-cap stocks are considered to be in the middle range of company …

Mid-Cap Fund – Definition, Overview, and Examples

What is a Mid-Cap Fund? A mid-cap fund is a type of mutual fund or exchange-traded fund (ETF) that primarily invests in companies with a market capitalization between $2 billion and $10 billion. Market capitalization refers to the total value of a company’s outstanding shares of stock. Definition and Explanation …

Micro-Cap Stocks: Definition, Risks, and Comparison to Larger Caps

Micro-Cap Stocks: Definition, Risks, and Comparison to Larger Caps Micro-cap stocks are a category of stocks that represent companies with a small market capitalization. Market capitalization refers to the total value of a company’s outstanding shares of stock. Micro-cap stocks typically have a market capitalization of less than $300 million. …

Listing Requirements Definition and Criteria for Stock Exchanges

Listing Requirements Definition Listing requirements refer to the set of criteria and regulations that a company must meet in order to have its securities listed on a stock exchange. These requirements are established by the stock exchange to ensure that only reputable and financially sound companies are allowed to trade …

Liquidating Dividend: Definition How It Works Tax Treatment

Liquidating Dividend: Definition A liquidating dividend is a type of dividend that is paid out to shareholders when a company is in the process of liquidating its assets and closing down its operations. It is a distribution of the company’s remaining assets to its shareholders. When a company decides to …

K: What It Means, How It Works, Real World Example

K: What It Means, How It Works, Real World Example [STOCKS catname] The K factor is calculated by dividing a company’s current stock price by its earnings per share (EPS). The resulting number represents the number of times the company’s earnings are being valued by the market. A higher K …

Jekyll and Hyde: Unraveling the Dual Nature of a Troubled Mind

Jekyll and Hyde: Unraveling the Dual Nature of a Troubled Mind Dr. Jekyll and Mr. Hyde is a classic novel written by Robert Louis Stevenson that delves into the depths of the human psyche and explores the concept of duality. The story follows the protagonist, Dr. Henry Jekyll, a respected …

Insider Information: Definition, Example, Illegality

What is Insider Information? Insider information refers to confidential or non-public information about a company that can potentially affect the company’s stock price or investment decisions. This information is typically known only to a select group of individuals who have access to it due to their position within the company …

Gross Spread Meaning, Working Mechanism, Example

Gross Spread Meaning The gross spread is a term used in the financial industry to refer to the difference between the price at which an underwriter buys securities from an issuer and the price at which the underwriter sells those securities to investors. It is a key component of the …

Golden Share: Understanding its Benefits and Examples

What is a Golden Share? A golden share is a special type of share that gives its holder certain rights and privileges that are not available to ordinary shareholders. It is typically held by a government or other controlling entity in a company and is used to protect its interests …

Global Registered Share GRS Meaning Pros and Cons History

Global Registered Share (GRS): Meaning, Pros, and Cons A Global Registered Share (GRS) is a type of share that is registered with a central depository and can be traded on multiple stock exchanges around the world. This means that investors can buy and sell GRS on different exchanges, providing them …

Fractional Share Investing: A Comprehensive Guide to Buying and Selling

Fractional Share Investing: A Comprehensive Guide to Buying and Selling [STOCKS catname] Fractional share investing is a popular method of buying and selling stocks that allows investors to purchase a fraction of a share rather than a whole share. This approach has gained popularity in recent years, as it provides …

Follow-on Public Offer FPO Definition and How It Works

Definition and Explanation A Follow-on Public Offer (FPO) is a type of securities offering in which a company that is already publicly traded issues additional shares of its stock to the public. This is different from an initial public offering (IPO), which is the first sale of a company’s stock …

Follow-on Offering FPO Definition 2 Main Types and Example

Follow-on Offering (FPO) Definition A follow-on offering (FPO) is a type of public offering in which a company issues additional shares of its stock to the public after its initial public offering (IPO). This allows the company to raise additional capital by selling more shares to investors. Main Types of …

Floating Stock Definition Example and Importance

Floating Stock: Definition, Example, and Importance Floating stock refers to the number of shares of a company’s stock that are available for trading on the open market. It represents the shares that are not held by insiders, such as company executives, and are therefore available for public trading. Definition Example …

Extraordinary General Meeting (EGM) – Definition and Examples – AGM

What is an Extraordinary General Meeting (EGM)? An Extraordinary General Meeting (EGM) is a meeting of shareholders or members of a company that is called for a specific purpose other than the regular annual general meeting (AGM). It is an important event in the corporate governance of a company and …

Escrowed Shares: Definition, Types, and Examples

What are Escrowed Shares? Escrowed shares are a type of shares that are held in escrow by a third party, usually a financial institution, until certain conditions are met. These conditions can vary depending on the specific agreement between the parties involved. Escrowed shares are commonly used in various financial …

Equity Compensation Definition How It Works Types of Equity

Equity Compensation Definition Equity compensation refers to a form of compensation that is given to employees in the form of ownership in the company. It is a way for companies to incentivize and reward their employees by giving them a stake in the company’s success. How It Works Equity compensation …

Dual Class Stock Definition Structure and Controversy

Dual Class Stock: Definition, Structure, and Controversy Dual class stock refers to a type of stock structure in which a company issues two different classes of shares, typically labeled as Class A and Class B. These classes of shares have different voting rights and dividend privileges, giving certain shareholders more …

Distressed Securities: Understanding, Overview And Examples

What are Distressed Securities? Distressed securities are financial instruments that belong to companies that are experiencing financial difficulties or are in the process of bankruptcy. These securities are typically sold at a significant discount to their intrinsic value, making them attractive to investors who are willing to take on higher …

Decoupling: Definition and Examples in Finance

Decoupling: Definition and Examples in Finance Decoupling refers to a situation in finance where two or more variables that were previously correlated become independent of each other. This means that the movements of one variable no longer have a significant impact on the movements of the other variable. Decoupling can …

Cyclical Stock Examples: The Risk And Return Potential

Exploring Cyclical Stocks Cyclical stocks are a specific type of investment that tend to follow the overall economic cycle. These stocks are highly influenced by changes in the economy and can experience significant fluctuations in value. Cyclical stocks are typically found in industries that are highly sensitive to changes in …

Common Stock Types and Differences Compared to Preferred Stock

Common Stock Types Common stock is a type of stock that represents ownership in a company. It is one of the most common types of stock that investors can buy. Common stockholders have the right to vote on company matters and receive dividends, but they are last in line to …

Back Stop: Definition, How It Works in Offering, and Example

Back Stop: Definition, How It Works in Offering, and Example A back stop is a financial arrangement that provides a safety net for a company or organization during a public offering of securities. It is a commitment made by an underwriter or a group of investors to purchase any remaining …