EDU Articles
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What is a foreign institutional investor?
Institutional investors are corporations, banks, pension funds, mutual funds, and other forms of pooled capital which act as one entity to engage in securities transactions in the best interest of the constituents or company that they represent. Foreign Institutional Investors are those whose company is based in another country. Investments made on behalf of foreign companies, foreign financial institutions, and foreign funds (such as the foreign equivalent of hedge funds, mutual funds, and pension funds) are foreign institutional investments. There are usually reporting requirements for both the foreign government for the county in which the interests are held and for the domestic government of the institutional investor. Continue reading...
What is Mortgage Fraud?
Mortgage fraud is misrepresentation in mortgage contracts designed to benefit one or more parties to the contract. Sometimes it can be as simple as an applicant lying about financial information to make himself seem more credit-worthy. Sometimes it can involve a few people, such as a real estate agent, an appraiser, and a lender, all colluding to split the profits on a property that isn’t worth as much as they say it is. Continue reading...
What is a Foreign Portfolio Investment (FPI)?
When foreigners purchase shares of domestic companies that represent less than 10% of the voting shares in the companies, and the investments are not those of company expansion or market penetration, but rather to add diversification to the foreigners’ investment portfolios, it is known as Foreign Portfolio Investment (FPI). FPI is the passive investing that foreigners do in a domestic market. It is separate from investments that companies might make into joint ventures or purchase facilities or acquire controlling interest in a domestic company — all of those are active investing and are usually called Foreign Direct Investment (FDI). FPI can be done by individuals or institutional investors. Institutional investors might run a mutual fund or pension fund in another country. Continue reading...
What is foreign investment?
Foreign investment is the act of an individual or corporation, or institutional investor, acquiring a large stake in a company, which may be a controlling or non-controlling interest. When it is a controlling interest, it is known as Foreign Direct Investment (FDI). Foreign corporate expansion in terms of newly acquired domestic facilities and equity interest in domestic companies tends to be monitored by domestic governments. Continue reading...
Can you provide an overview of the major stock exchanges in India?
Unlock India's Investment Potential! India's booming economy beckons savvy investors. Dive into the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Discover their trading mechanisms, market indexes, and how foreign investors can join this dynamic market. Explore India's vibrant stock exchanges today! #InvestInIndia #StockMarket Continue reading...
What is Foreign Investment Funds (FIF) tax?
New Zealand and Australia, in particular, have instituted a tax regime for offshore investments that fall into the definition of Foreign Investment Funds (FIFs). FIFs will generally be mutual fund companies that are based overseas, but can also include cash value life insurance underwritten by a foreign company and some stock portfolios from overseas stock exchanges. The US has the PFIC tax, which is a passive foreign investment corporation tax. The PFIC category generally applies to mutual funds or pooled investment companies from foreign countries. Continue reading...
What is Mortgage Refinancing?
Refinancing a mortgage means to get a new mortgage agreement with a different interest rate. If the prevailing interest rate environment has changed, or if a person’s credit history has strengthened since signing the original mortgage agreement, a homeowner might benefit from refinancing their mortgage with a new arrangement. The bank or lending institution would effectively pay off the first mortgage with the new one, and give the client a different interest rate or mortgage term (length) or monthly payment amount. Continue reading...
What is the Absolute Breadth Index?
The Absolute Breadth Index (ABI) is a market breadth indicator, calculated using the absolute value of the difference between the number of advancing stocks and declining stocks to indicate the size of market movement without considering price direction. Larger ABI numbers will indicate more volatility. When breadth is smaller, it means that the market isn’t experiencing significant movement, or movement in a definitive direction. When advances or declines pull away from the other, it indicates the presence of market-wide trends. Continue reading...
What is the foreign corrupt practices act?
The Foreign Corrupt Practices Act attempts to reduce the possibility that a corporation with American affiliations will engage in the bribery of foreign officials. The act was created in 1977 and has since been amended and expanded several times. The SEC and the Department of Justice are both responsible for enforcing the FCPA, which is a law designed to prevent US-based companies from engaging in corrupt practices abroad. Continue reading...
What are foreign deposits?
Foreign deposits are taken in by international branch locations of US-based banking institutions. Banks are not obligated to pay FDIC premiums on these deposits. Foreign deposits are placed by customers into a US-based bank branch which is located in international locations. Because it is outside of Federal jurisdiction, banks are not subject to the same capital reserve requirements and do not have to pay FDIC insurance on the deposits. Continue reading...
What Is Business Intelligence (BI)?
Unlock the power of data with Business Intelligence (BI)! Dive into its evolution, tools, and how BI turns raw data into strategic insights for informed decision-making in today's business landscape. Continue reading...
What are the Expenses Associated with the Purchase of ETFs?
There may be fees and commissions involved in the purchase of ETFs, and ongoing expenses that reduce earnings over time. Purchasing an ETF will probably involve paying some fees or commissions to the service or broker through which you acquired the shares, but these days those commissions are fairly minimal. These fees will be the same or less than you might pay for using their services to acquire positions in other securities. ETFs are a relatively cheap way to gain an exposure to a particular sector of the market or to take a position that might otherwise be difficult and expensive to research, calculate, and engineer. Continue reading...
Top Wood Stocks
In the realm of investment, themes or sectors with a direct impact on everyday life often present unique opportunities for growth and stability. The wood sector, an integral part of the global economy, stands out as a prime example of such an investment theme. This article delves into the top stocks within the wood industry, shedding light on companies that not only shape our environment but also offer promising returns to investors. We focus on a selection of leading companies in this sector: Universal Forest Products Inc. (UFPI), Fortune Brands Innovations, Inc. (FBIN), A. O. Smith Corporation (AOS), Masonite International Corporation (DOOR), and JELD-WEN Holding, Inc. (JELD). Continue reading...
What do ETFs Invest In?
ETFs invest in a wide array of securities, and which ones depends on the goal, strategy, or index that the ETF is built around. ETFs hold baskets of individual securities, of which investors can purchase an undivided interest in the form of ETF shares. ETFs can be a good option if you want quick diversification, and there is an increasingly diverse selection of ETFs on the market. Many investment companies have issued new ETFs in the last 10 years. One of the biggest issuers is Barclays - one of the largest investment banks in the world — through their ETF brand iShares. Continue reading...
What is the Fiduciary Standard?
The Fiduciary Standard stipulates that an advisor must place the client’s best interests first. The best way to understand the fiduciary standard is to think in terms of another standard, called the suitability standard. The suitability standard says that a broker/advisor need only recommend investment products that are “suitable” for the client - but those investments do not necessarily have to be in the client’s best interests. Continue reading...
Can I Rollover My 401(k) into an IRA?
Yes, in fact this is what most people do. This is a very popular choice. Because Traditional IRAs receive the same kind of tax treatment as 401(k)s, with pretax contributions, tax-deferred growth, and taxable withdrawals, the IRS allows you to move funds over without creating a taxable event. Of course, you need to have an IRA account to do so, but it can be as easy as opening an account online and telling the custodian company the account information for your old 401(k). Continue reading...
Week (April 15 - 19) in Review: Financial Leaders
Explore this week's dynamic financial market movements with Tickeron's comprehensive review. From the significant gains in inverse ETFs reflecting bearish sentiments to the notable declines in cryptocurrencies and tech sectors, understand the shifts driving current market trends. Dive into sector-specific analyses and global ETF performances to better navigate your investment strategies in these volatile times. Continue reading...
How Will the SEC's New Rules Impact Algorithm-Based Trading Platforms?
The SEC is reshaping the trading landscape with new rules on algorithms and gamification, aiming to safeguard investors in the digital age. This pivotal move addresses the controversial "gamification of trading," spotlighting platforms like Robinhood and their impact on market dynamics. Dive into our analysis to grasp the implications of these regulations and what they mean for the future of trading. Whether you're an investor, trader, or industry observer, our breakdown offers crucial insights into the SEC's efforts to balance innovation with investor protection. Stay ahead of the curve in understanding these significant regulatory changes. Continue reading...
What is a Capital Account?
The Capital Account in a company is where paid-in capital, retained earnings, and treasury stock is accounted for. In macroeconomics, the Capital Account shows the national net change in ownership of assets. In accounting and bookkeeping, the Capital Account tracks the amount of Capital on hand at a company, which is the sum of the paid-in capital, the retained earnings, and the value of the treasury stock. Paid-in capital is the money collected from investors during an IPO or other stock issue. Continue reading...
Bond Market vs Stock Market: What’s the Difference
Investing is a cornerstone activity for wealth generation, and within the gamut of options, the bond and stock markets emerge as the frontrunners. Despite sharing the common goal of facilitating capital growth, they operate on fundamentally different premises. This article outlines the key distinctions between the two, shaping investor decisions. Continue reading...