Ross Sinclaire & Associates
Ross Sinclaire & Associates
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Ross Sinclaire & Associates
The face value to which a zero coupon bond has appreciated based upon its original issue price and indicated compounding rate of interest.
Interest deemed to be earned on a security but not yet paid to the investor.
Tax Latin for 'according to the value.' A tax levied on the value of real property.
The issuance of one bond issue to pay off another prior to its maturity date or call date. Proceeds of the new, advance refunding issue are placed in escrow to secure and retire the original issue according to the terms of the refinancing, usually the first call date.
The after tax yield is the true yield of a bond investment after taking into consideration the payment of capital gains taxes, if applicable, sometimes abbreviated ATY.
Alternative Minimum tax (AMT)
An alternative method of calculating federal income tax. The income from certain municipal bonds issued for "private activity" or non-public purposes may be subject to taxation.
Price being sought for the security by the seller.
The process of spreading assets among three major asset classes (stocks, bonds, and money market funds).
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The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1986 changed the way banks handle certain deductions relating to the ownership of municipal bonds. A deduction of the cost of carrying municipals on the bank's books was disallowed unless the bond issue met several criteria. The bond issue must be issued for a public purpose, must not exceed $10 million in size, the issuer must not issue more than $10 million in that calendar year and must declare the issue to be "bank eligible" in documents authorizing the bond issue. Bond issues meeting these criteria continue to provide the additional tax benefit to banks purchasing such bonds.
One one-hundreth of 1 percent. Yield differences among fixed-income securities are stated in basis points.
A security that has no identification as to owner. It is presumed to be owned by the person who holds it. Bearer securities are freely negotiable, since ownership can be quickly transferred from seller to buyer by delivery of the instrument. However, note that in the United States it has not been legal to issue bearer bonds in the municipal or corporate markets since 1982. As a result, bearer bonds available in the secondary market are long-dated maturities issued before this date and are becoming increasingly scarce. Among the disadvantages of bearer securities are that you must clip the coupons and present them to the trustee in order to receive your interest; and if the bonds are called, you will not automatically be alerted by the issuer or trustee.
The price at which a buyer will purchase a security.
Bonds are loans. When you buy a bond, you are lending money to a bond issuer in return for a set rate of interest. The issuer agrees to repay your principal on a specified future date. There are three main types of bonds: government, corporate, and municipal bonds.
Bond insurers and reinsurers
A partial list of bond insurers includes American Municipal Bond Assurance Corp. (AMBAC), ACA Financial Guaranty, Asset Guaranty Insurance Co., AXA Re Finance, Capital Guaranty Insurance Co., Capital Markets Assurance Corp. (CapMAC), Capital Reinsurance Co. (Capital Re), Enhance Reinsurance Co. (Enhance Re), Financial Guaranty Insurance Co. (FGIC), Financial Security Assurance (FSA), and Municipal Bond Insurance Association (MBIA).
Bond Mutual Funds
A fund that invests in bonds to seek high income as its primary objective. Bond mutual funds offer full-time money management, portfolio diversification, and automatic reinvestment of dividends, among their many benefits.
A method of recording and transferring ownership of securities electronically, eliminating the need for physical certificates.
Bridge financing is a term applied to a transaction that is short term in nature. Typically this transaction involves a company positioning itself for a larger, longer-term change in the capital structure of the firm. Bridge financing can apply to pre-IPO situations, pre-acquisition/merger situations, and any other situations where the firm is in the process of obtaining long-term, permanent financing.
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Bonds which are redeemable by the issuer prior to the maturity date at a specified price at or above par.
A dollar amount, usually stated as a percent of the principal amount called, paid by the issuer as a "penalty" for the exercise of a call provision.
The top interest rate that can be paid on a floating-rate security.
Closed-End Bond Funds
A mutual fund that trades on a stock exchange just like any other public corporation and has a fixed number of shares outstanding and do not continuously offer to buy back their shares. Assets in a closed-end fund are managed by an investment professional and diversified among many securities. In this way, they resemble a traditional mutual fund.
College Fund Planning Service
A service that will provide you with better insight into projected college costs and the many different investment methods available to help fund those costs.
CMO (Collateralized Mortgage Obligation)
A bond backed by a pool of mortgage pass-through securities or mortgage loans, which generally supports several classes of obligations.
Upper and lower limits (cap and floor, respectively) on the interest rate of a floating-rate security.
Unsecured short-term promissory notes used by companies to obtain cash. They are sold through dealers in the open market or directly to investors.
Competitive Bond Sale
Bonds that are sold in the new issue or primary market based upon the opening of sealed bid proposals on a specified date and time. The winning bidder is the one submitting the lowest net interest cost to the issuer.
A corporate bond that investors may exchange for stock on some future date under certain conditions.
Convertible Municipal Bond
A bond, originally issued as a zero coupon bond, that "converts" to a current interest bond paying interest on a semi-annually basis on a specified date.
(Also called corporates) are debt obligations, or IOUs, issued by private and public corporations. They are typically issued in multiples of $1,000 and/or $5,000. Companies use the funds they raise from selling bonds for a variety of purposes, from building facilities to purchasing equipment to expanding the business.
This part of a bearer bond denotes the amount of interest due, and on what date and where payment will be made. Bearer coupons are presented to the issuer's designated paying agent for collection. With registered bonds, physical coupons don't exist. The payment is mailed directly to the registered holder. Note that while bearer bonds are no longer issued in the United States and, hence, physical coupons are increasingly scarce, dealers and investors often still refer to the stated interest rate on a registered or book-entry bond as the "coupon."
The issuance of a new bond issue to pay off an outstanding issue after the first call date.
The ratio of interest to the actual market price of the bond, stated as a percentage. For example, a bond with a current market price of $1,000 that pays $80 per year in interest would have a current yield of 8%.
The Committee on Uniform Security Identification Procedures, established under the auspices of the American Bankers Association to develop a uniform method of identifying securities. CUSIP numbers are unique nine-digit numbers assigned to each series of securities.
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Dated date (or issue date)
The date of a bond issue from which the first owner of a bond is entitled to receive interest.
Unsecured debt obligation, issued against the general credit of a corporation, rather than against a specific asset.
To render null and void an agreement, commitment or obligation specified in a written document. When a bond issue is refunded and an escrow is established for the benefit of its bondholders the terms of the original indenture and obligations of the Trustee are generally said to have been defeased. The Original trust indenture is supplanted by the newly formed escrow agreement.
The amount by which the purchase price of a security is less than the principal amount, or par value.
Short-term obligations issued at discount from face value, with maturities ranging from overnight to 360 days. They have no periodic interest payments; the investor receives the note's face value at maturity.
The rate the Federal Reserve charges on loans to member banks.
Double Barreled Bond
A bond that is backed by both a specified source of revenue and the general obligation pledge of the issuer.
Double/Triple Tax Exempt
Municipal bonds or other securities whose interest is exempt from taxation by the federal government and state taxes (double) and, in some cases, from local taxation and personal property taxes (triple).
The Depository Trust Company. The world's largest securities depository, holding more than $20 trillion in assets for its participants. DTC is a national clearinghouse for the settlement of trades in corporate and municipal securities. DTC is owned members of the financial industry, is a limited purpose trust company under New York Banking Law, is a member of the Federal Reserve System and is a registered clearing agency with the Securities and Exchange Commission.
The weighted maturity of a fixed-income investment's cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.
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Equity Offering or Equity Funding
Any company seeking to restructure the balance sheet or to expand the capital base for a variety of reasons can use equity funding in the form of an Equity Offering to fund those transactions. Equity funding adds owners to the company and should add not only financial resources, but also add new owners whose expertise will add to the value of the firm. Equity can take the form of common or preferred stock. In many instances equity is combined with debt instruments for risk reduction.
The risk that rising interest rates will slow the anticipated rate at which mortgages or other loans in a pool will be repaid, causing investors to find their principal committed longer than expected. As a result, they may miss the opportunity to earn a higher rate of interest on their money.
Extraordinary Call Feature
A call feature triggered by default, on a bond issue other than an optional call or sinking fund call designed to protect the bondholder from an adverse situation resulting from an unforeseen event such as a declaration of taxability, legislative change or act of God. Mortgage revenue bonds require extraordinary calls from prepayments of principal on the mortgages they hold or from unexpended bond proceeds following the initial lending period.
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Par value (principal or maturity value) of a security appearing on the face of the instrument.
Federal funds rate
The interest rate charged by banks on loans of their excess reserve funds to other banks. The Federal Reserve's ability to add or withdraw reserves from the banking system gives it close control over this rate. Changes in the federal funds rate are sometimes studied by economists and investors for clues to Federal Reserve intentions.
First Coupon Date
The date of the first interest payment on a new bond issue following its issue date. Note: This may be a normal 6 months after issuance, less than 6 months or longer than 6 months, perhaps as long as 12 months after its dated date. Thereafter, however, most bonds pay interest every 6 months until final maturity.
First Round Financing
Usually takes place during the first year of business. Revenues are minimal. Management may consist of only one or two individuals. The marketing and sales forces are normally lacking and capital is needed to boost these areas. Venture capitalists often refer to first round investing as the early expansion stage. Areas that receive attention from venture capitalists at the early expansion stage include financial structuring, sales and marketing, and rounding out the management team. At the early expansion stage, management teams are rarely complete. Other concerns at the early expansion stage include sales and marketing, financial structuring, and the first profits. The goal of investing at the early expansion stage is to increase the value of the company by concentrating on financial structure and guiding the management team around their strategy.
A bond for which the interest rate is adjusted periodically according to a predetermined formula, usually linked to an index.
The lower limit for the interest rate on a floating-rate bond.
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Commonly called a G.O. bonds of this type are payable from a pledge of the taxing authority of the issuer. There are two types of G.O.s, limited and unlimited tax, the difference being the level to which an issuer may raise taxes to meet its obligation.
A security issued by the federal government of the United States. U.S. government bonds are among the safest investments available because they carry no credit risk. Your principal and interest are backed by the full faith and credit of the federal government.
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An investment made with the intention of minimizing the impact of adverse movements in interest rates or securities prices
Bonds issued by lower-rated corporations, sovereign countries and other entities rated Ba or BB or below and offering a higher yield than more creditworthy securities; sometimes known as junk bonds.
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IDR or IDB
An industrial revenue bond issued by a governmental unit on behalf of a corporation. The responsibility of repaying the principal and interest on the issue lies solely with the corporation guaranteeing the debt and not with the governmental body.
The legal document relating to and defining all of the legal aspects of a bond issue. The terms of the indenture are binding on the issuer for as long as the bond issue is outstanding and not refunded or defeased. The Bond Trustee monitors compliance with the terms of the indenture on behalf of the bondholders of the issue.
Individual Retirement Account (IRA)
Personal retirement account that an employed person in the U.S. cam set up with a deposit that is tax deductible up to $2,000 per year. Such deposits qualify as a deduction against income earned in that year, and interest accumulates tax-deferred until the funds are withdrawn at age 59 and a half or later.
The increase in the cost of living.
Compensation paid or to be paid for the use of money. Interest is generally expressed as an annual percentage rate.
Interest Payable at
Instead of regular semi-annual payments of interest some fixed income securities pay all interest due at the time the principal is due and payable; the maturity date. Interest at maturity is most common in short-term issues such as notes and warrants.
Bonds considered suitable for preservation of invested capital by the rating agencies and rated Baa or BBB or above.
Your investment goal, such as a comfortable retirement or enough money to purchase a home.
An IRA that receives a lump sum payout from a retirement plan, such as your employer's plan, or perhaps another IRA.
An entity which issues and is obligated to pay principal and interest on securities.
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A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds; sometimes known as high-yield bonds.
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When a buy-out is leveraged, debt financing is used to purchase a company and the firmâ€™s own assets are used to secure the loan and pay back the seller. Traditionally, when a company is leveraged neither the seller nor the investor predict that the business is subject to rapid or erratic growth. Today's leveraged buy-outs, or LBOs, often involve investors that are seeking the opportunity to use a company's growth as the asset. Some firms will still apply a significant amount of leverage to a buy-out and want the typical assets, such as receivables and equipment, etc., as collateral.
A strategy that involves buying bonds with various maturity dates. The purpose of laddering is to minimize the impact of interest rates on your portfolio.
A document written by bond counsel, a law firm specializing in municipal bond issuance, that states that the bonds were issued legally by the borrower and opining as to the taxability or exemption from tax, of the interest paid on the bonds.
Letter of Credit
A liquidity agreement issued by a third party guaranteeing to pay the principal and interest on a bond issue. LOCs may be written either as direct pay or stand by. A direct pay LOC will pay the interest directly to the bondholder and recover the monies from the issuer while a standby LOC will pay interest only if the issuer is able to meet its obligation in a timely manner. LOCs usually are written for a limited length of time, typically for less that 5 years, and must be renewed during the life of a bond issue.
The use of borrowed money to increase investing power.
LIBOR (London Interbank Offered Rate)
The rate banks charge each other for short-term Eurodollar loans. LIBOR is frequently used as the base for resetting rates on floating-rate securities.
Limited Tax G.O.
A bond issue that is payable from the taxing authority of the issuer within the millage limits specified by local law. Usually limited tax G.O.s do not require a voter referendum to be issued.
Long-Term Care Insurance
Covers costs related to the daily medical or personal care you may need following a chronic illness or long-term disability.
Lump Sum Payout
Money received from a retirement plan in one taxable year.
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A management buy-out, or MBO, is a transaction in which the management of a company purchases the company from the existing owners. Normally this occurs with a family business in which case the family owners are relegated to a minority position or sell the company outright, or in the case of a division of a large company that is purchased by the management of the division. In either case, the new firm finances this transaction by offering investment to a third party in exchange for partial ownership and a collateral position. In some cases these transactions are financed with strictly debt or strictly equity, but the majority of the transactions are a combination of debt and equity.
A measure of the ease with which a security can be sold in the secondary market.
A discount to face value or issue price of a bond caused by a rise in the general level of interest rates and corresponding fall in the price level of the bond.
The date when the principal amount of a security is payable.
Mergers & Acquisitions
Mergers and acquisitions are a common transaction in today's marketplace. A merger occurs when two firms agree to collaborate and neither firm takes a completely dominant position in the new entity. In order for both firms to be on equal terms one firm is often required to bring cash to the transaction. When this occurs the firm needing the cash will use new investors to finance this need. In an acquisition, one firm will buy a second firm and the second firm becomes a subsidiary or division of the acquiring firm. This transaction can require a large amount of cash for the purchase of the target firm's stock. If possible, the acquiring firm will finance this transaction with debt that is collateralized with the target firmâ€™s assets. In other cases a combination of debt and equity from a third party investor is utilized.
Mezzanine (Third Round) Financing
This stage of financing involves mature companies that are profitable and sometimes qualify for bank loans. Some companies, however, lack the collateral needed for senior debt, and mezzanine firms can fill this need. Other companies look to mezzanine groups because of the desire to leverage debt. Typically, a mezzanine round occurs when a well-established company's growth continues to fluctuate and the business requires additional capital to fund that growth. Although the company is no longer in need of equity financing, it is still unable to qualify for senior debt, due to a lack of collateral, which is mandatory to qualify for conventional bank loans. Mezzanine financing, which is often mistaken for an investment stage rather than a type of financing, can be applied to companies in growth mode, buy-out situations and acquisitions. A company's age does not determine eligibility for mezzanine financing. Mezzanine groups are more interested in a company's cash flow. Just as senior lenders consider collateral when evaluating a transaction, mezzanine lenders consider cash flow. Mezzanine groups will also want to study a company's position in the marketplace and its financials, both historical and projected.
Moody's Investment Grade is a rating assigned by Moody's Investors Service to short term borrowings such as notes or commercial paper. The highest quality securities receive a MIG1 rating while lower grade ratings may be as low as MIG4.
Money Market Funds
A professionally managed, diversified portfolio of short-term securities that seeks to preserve capital while providing income and liquidity. There are two major types of money market funds, taxable and tax-free funds.
Moody's Investors Service
An independent company specializing in the evaluation and credit ratings of issuers. Moody's is a member of the Dun and Bradstreet family of companies.
A security representing a direct interest in a pool of mortgage loans. The pass-through issuer or servicer collects payments on the loans in the pool and "passes through" the principal and interest to the security holders on a pro rata basis.
A debt instrument issued by a city, county, state, school district or other non-federal governmental issuing authority.
A mutual fund is a company that makes investments on behalf of investors with similar goals (e.g., growth, income, etc.). As a shareholder, you participate in the fund's gains, losses, income and expenses in an amount proportionate to your investment.
The Municipal Securities Rulemaking Board, a regulatory organization established to create rules governing the conduct and operation of the municipal bond industry. The Securities and Exchange Commission must approve all of the Board's rules and the examiners of the National Association of Securities Dealers (NASD) monitor compliance with the rules.
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Negotiated Bond Sale
Bonds that are sold in the new issue market through a process of negotiation with a set underwriter or underwriting syndicate as opposed to a competitive bond sale.
A mutual fund's value per share on any given day. To calculate a fund's NAV, add the value of cash and securities in the fund, subtract cost and divide the remainder by the number of shares outstanding.
Non Callable Bond
Referring to the ability of the issuer to call bonds prior to maturity. The term non-callable may not take into consideration extraordinary calls or sinking fund calls.
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The price at which a seller will sell a security.
The price at which members of an underwriting syndicate for a new issue will offer securities to investors.
The only document held out as containing all pertinent facts and details of a new issue of bonds. A copy of the Official Statement must be sent to all purchasers of new municipal bond issues. Until all details of a new issue are set a Preliminary Official Statement, or Red Herring, is printed and distributed to potential investors.
Optional Call Feature
A redemption feature of a bond issue that may be exercised at the option of the issuer. Optional calls are generally exercised for the entire outstanding amount of the issue, but may be for only a part of an issue.
Original Issue Discount (OID)
The amount of discount amount below the par, or face value, at the initial issuance. OID is considered a give up of current interest and as such is considered as tax-free interest on municipal bonds and taxable interest on corporate debt, not capital gain.
A 401(k) plan is a retirement plan set up by employers for their employees. 401(k) participants contribute to their plan via salary reduction. Contributions are made with money that has not yet been taxed and earnings grow tax-deferred. 403(b) plans are the part of the federal tax code dedicated to government workers and those others who serve in nonprofit, tax-exempt organizations. This instrument permits non-profit employees to exclude from their taxable income contributions to mutual funds and/or a tax-deferred annuity. A Simplified Employee Pension Plan (SEP) is designed for the small business owner. This plan mandates fewer reporting and disclosure requirements. With a SEP, employers receive a tax deduction on contributions they make for each eligible employee. A SIMPLE (Savings Incentive Match Plan for Employees) is designed for employers with 100 or fewer employees. It allows employees and employers to make pretax contributions. Employers make contributions on behalf of their employees.
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The principal amount of a bond or note due at maturity.
Spreading your assets across various securities limits risk because no one security can have a major effect on fund results. The over performance of one security helps to offset the underperformance of another.
Place where principal and interest are payable. Usually a designated bank or the office of the treasurer of the issuer.
The amount by which the price of a security exceeds its principal amount.
The unscheduled partial or complete payment of the principal amount outstanding on a mortgage or other debt before it is due.
The risk that falling interest rates will lead to heavy prepayments of mortgage or other loans-forcing the investor to reinvest at lower prevailing rates.
The market for new issues.
The face amount of a bond, payable at maturity.
The value of your money as it relates to inflation.
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Shifting assets among various asset classes after establishing your asset allocation. You should consider rebalancing periodically. That's because allocation that may be right for you today, may be inappropriate for you a year or two from now.
A recapitalization, or "recap," often occurs when a company wishes to remove a current or original investor. A recap changes a company's capital structure, retiring a previous debt or equity instrument and replacing it with a new instrument. A recapitalization normally places a business in a more favorable financial position that is attractive to both buyers and sellers.
A bond whose owner is registered with the issuer or its agent. Transfer of ownership can only be accomplished when the securities are properly endorsed by the registered owner.
The risk that interest income or principal repayments will have to be reinvested at lower rates in a declining rate environment.
REMIC (Real Estate Mortgage Investment Conduit)
Because of changes in the 1986 Tax Reform Act, most CMOs are now issued in REMIC form to create certain tax advantages for the issuer. The terms REMIC and CMO are now used interchangeably.
A short-term security used to finance trading. A dealer who offers a repurchase agreement sells government securities to a bank or non-financial corporation and simultaneously agrees to repurchase a similar amount of these securities in the future.
A bond that is secured by a specific source of revenue rather than by tax receipts. No pledge to levy taxes to pay for the bonds is made or implied.
The amount of risk you are willing to assume to achieve your investment goals.
Legislation that allows users to accumulate and withdraw earnings tax-free. The one stipulation is that all earnings remain in the account for at least five years and are distributed after age 59 and a half.
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Second Round Financing
At this stage in a company's development, a service or product has been on the market for a period of time, revenue is climbing, and balance sheet items such as expenses are more predictable. The company has usually turned a profit and the management team is complete.
Market for issues previously offered or sold.
The common name for stocks, bonds, and other investment vehicles.
A bond that matures as part of a series of consecutive maturities in regular intervals over the life of the issue.
The date for the delivery of securities and payment of funds.
Money set aside by an issuer of bonds on a regular basis, for the specific purpose of redeeming debt.
A bond with a sinking fund.
Standard & Poor's
An independent company specializing in the evaluation and credit ratings of issuers. S&P is a division of The McGraw-Hill Companies.
The start-up company involves a business model or concept that is unproven. Usually, a prototype is finished and ready to be tested in beta sites. Management is normally incomplete, and only a technical or R & D group may be present. A start-up company is not generating revenue, having recently completed raising seed capital supplied by both friends and family or a seed investment group. Venture capital activity increases at the start-up level. The fact that the company has survived thus far dispels a small portion of risk and the company requires more sizable investments
A stock is a security that represents ownership in a corporation.
Super Sinker Bond
A bond that, upon issuance, has assigned to it an accelerated sinking fund, such that the bond will be paid off at a much earlier time than a bond with a more traditionally structured sinking fund. This type of bond is widely used in mortgage bond issues where prepayments of principal are assigned to this single maturity rather than spread over the entire issue.
The sale of a block of bonds and the purchase of another block of similar market value. Swaps may be made to establish a tax loss, upgrade credit quality, extend or shorten maturity, etc.
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A bond whose interest is exempt from taxation by the Federal government. Most commonly called Municipal Bonds this type of fixed income investment owes its exemption from taxes to the Internal Revenue Code.
Taxable money market funds
Some taxable money market funds invest only in short-term U.S. Treasury securities; others invest mainly in high-quality, short-term paper, such as bankers' acceptances, repurchase agreements and commercial paper. These instruments are issued by U.S. corporations.
Taxable Equivalent Yield
The yield an investor must receive on a taxable bond to equal, after payment of taxes, the yield on a tax free bond. The taxable equivalent yield can be derived by dividing the available tax-free rate by the quantity (1 minus the investors tax bracket). I.e. 5% divided by (1-.28) or 5%/.72 or 6.94%
Tax-exempt money market funds
Invest in high-grade, short-term securities of municipalities and generate income free from federal income taxes. Funds that concentrate exclusively on securities from municipalities within one state generate income that is free from federal, state and local income tax to investors who are state residents.
When taxation is deferred, assets accumulate much faster than if subjected to taxation every year. The more you contribute to your plan, and the longer you invest, the more you will accumulate.
A bond with a fixed maturity that is retired from a series of sinking fund payments that take the place of existing serial maturities. A term bond not subject to sinking fund calls is referred to as a "bullet" maturity.
The number of years between now and the time you intend to reach your investment goals.
The date when the purchase or sale of a bond is executed.
A party appointed by an issuer to maintain records of securities owners, to cancel and issue certificates and to address issues arising from lost, destroyed or stolen certificates.
A government issued security with a maturity of one year or less. T-bills are sold at a discount to their maturity value. Interest on a T-bill is the difference between the discount price and the amount paid on the security when it matures.
A bank designated by the issuer as the custodian of funds and official representative of bondholders.
Turnaround situations normally involve middle to late stage companies that are under performing or suffering bankruptcy. Sometimes a turnaround can involve a young company having problems getting launched. A troubled business may require financial restructuring and replacement of management. Because marketing is almost always an area of weakness in troubled businesses, investors will often replace managers with individuals demonstrating specific marketing talent. If management is opposed to replacing the entire team, be open to adjusting or completely altering the marketing strategy. With intervention, a troubled business can be turned around, but the firm must be prepared for change.
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Unlimited Tax G.O.
Commonly called a U.T.G.O. bonds of this type are payable from a pledge, without limit, of the taxing authority of the issuer.
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Variable Rate Bond
A bond that pays an interest rate that may be adjusted for a specific period of time; usually daily, weekly or monthly. The rate is "reset" by a remarketing agent to reflect current market rates. When Issued Sometimes referred to as "When As and If Issued" or WI, new issue bonds are considered to be "subject" until payment is made by the underwriting(s) to the issuer, thereby closing the bond issue.
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The annual percentage rate of return earned on a security. Yield is a function of a security's purchase price and coupon interest rate.
A line tracing relative yields on a type of security over a spectrum of maturities ranging from three months to 30 years.
Yield to call
A yield on a security calculated by assuming that interest payments will be paid until the call date, when the security will be redeemed at the call price.
A yield based on the assumption that the security remains outstanding to maturity. It represents the total of coupon payments until maturity, plus interest on interest, and whatever gain or loss is realized from the security at maturity.
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A bond on which no periodic interest payments are made. The investor receives one payment which includes principal and interest-at redemption.
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Ross, Sinclaire & Associates, LLC - Headquarters
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Ross, Sinclaire & Associates, LLC is a registered broker-dealer, an investment advisor registered with the U.S. Securities and Exchange Commission (SEC), and a member of
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