Category: Investor Definitions

Data tagging, in formats like XBRL or “eXtensible Business Reporting Language,” is gaining popularity as a way to enhance financial reporting. By using computer codes to “tag” different kinds of data in financial reports, the information companies file with the Commission can be made much easier to find and analyze. For example, specific items in… Continue reading DATA TAGGING

The ratio of the interest rate payable on a bond 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 would have a current yield of 8%.

Cumulative voting is a type of voting system that helps strengthen the ability of minority shareholders to elect a director. This method allows shareholders to cast all of their votes for a single nominee for the board of directors when the company has multiple openings on its board. In contrast, in “regular” or “statutory” voting,… Continue reading CUMULATIVE VOTING

Provide their opinion on the creditworthiness of a corporate or government borrower by issuing a grade, or credit rating, on bonds issued by that borrower.

The interest rate on a bond. It is expressed as a semi-annual rate.

The dollar amount of interest paid to an investor. The amount is calculated by multiplying the interest of the bond by its face value.

A feature of a bond that denotes the amount of interest due and the date that the payment will be made.

Corporate reports can provide important information for investors by, for example, telling you whether a company is making money or losing money and why. You’ll find this information in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and periodic reports of significant events on Form 8-K. It’s usually easy to find… Continue reading CORPORATE REPORTS

A framework which may include rules and regulations, corporate charter and bylaws, formal policies, as well as customs and other processes, that determines the leadership, organization, and direction of a company.

A “convertible security” is a security—usually a bond or a preferred stock—that can be converted into a different security—typically shares of the company’s common stock. In most cases, the holder of the convertible determines whether and when to convert. In other cases, the company has the right to determine when the conversion occurs. Companies generally… Continue reading CONVERTIBLE SECURITIES