by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Captive Real Estate Investment Trust?A captive REIT refers to a REIT that’s controlled by just one company and it is created for tax. This tax reduction technique is usually utilized by large banks and retailers who have many branches or stores.How...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Poison Put?A poison put is a defensive strategy deployed by a company to prevent a takeover. The target company offers bonds to investors, these bonds can be redeemed before its maturity date. This is done so as to make the company expensive or difficult to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Boiler Room?This refers to an operation or place where high-pressure sellers utilize banks of phones for contacting lists of likely investors (referred to as “sucker lists”) so as to peddle fraudulent and speculative securities. As a result of...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Bond Discount?Bond discount refers to the amount by which a bond market’s price is lesser than the principal amount ready at maturity. This amount, known as a par value or face value, is usually $1,000.How Does a Bond Discount Work?A bonds primary...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Capital Pool Company?A capital pool company (CPC) is a new shell company listed on the TSX Venture Exchange (TSX-V) has no commercial transactions and no assets except cash. The CPC’s goal is to identify and acquire an active business. The CPC uses its...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Balloon Interest?Balloon interest refers to paying a higher coupon rate on financial instruments held over the long term within a serial bond issue. A serial bond issue has its bonds maturing at different dates but a term issue bonds mature at a specific date...
