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Par Value
In finance and accounting, par value means stated value or face value of a financial instrument. Expressions derived from this term include at par (at the par value), over par (over par value) and under par (under par value). Bonds A bond selling at par is priced at 100% of face value. Par can also refer to a bond's original issue value or its value upon redemption at maturity. Stock The par value of stock has no relation to market value and, as a concept, is somewhat archaic. The par value of a share is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive a more favorable issue price. Thus, par value is the nominal value of a security which is determined by the issuing company to be its minimum price. This was far more important in unregulated equity markets than in the regulated marke ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into Personal finance, personal, Corporate finance, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as Currency, currencies, loans, Bond (finance), bonds, Share (finance), shares, stocks, Option (finance), options, Futures contract, futures, etc. Assets can also be banked, Investment, invested, and Insurance, insured to maximize value and minimize loss. In practice, Financial risk, risks are always present in any financial action and entities. Due ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Callable Common Stock
A callable bond (also called redeemable bond) is a type of bond ( debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. In other words, on the call date(s), the issuer has the right, but not the obligation, to buy back the bonds from the bond holders at a defined call price. Technically speaking, the bonds are not really bought and held by the issuer but are instead cancelled immediately. The call price will usually exceed the par or issue price. In certain cases, mainly in the high-yield debt market, there can be a substantial call premium. Thus, the issuer has an option which it pays for by offering a higher coupon rate. If interest rates in the market have gone down by the time of the call date, the issuer will be able to refinance its debt at a cheaper level and so will be incentivized to call the bonds it originally issued. Another way to look at this interplay is that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Watered Stock
Watered stock is an asset with an artificially- inflated value. The term most commonly refers to a form of securities fraud in which a company issues stock to someone before receiving at least the par value in payment.Dodd, David L. ''Stock Watering: The Judicial Valuation of Property for Stock-Issue Purposes''. New York: Columbia University Press, 1930. Historically, stock watering was prevalent in the 19th century rail industry in the United States. Origin of term "Stock watering" was originally a method used to increase the weight of livestock before sale. The cattle were first given salt to make them thirsty, then allowed to drink their fill of water. The term's introduction to the New York financial district is popularly credited to Daniel Drew, a cattle driver turned financier. Explanation American stock promoters in the late 1800s could inflate their claims about a company's assets and profitability, and sell stocks and bonds in excess of the company's actual value. T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pull To Par
Pull to Par is the effect in which the price of a bond converges to par value as time passes. At maturity the price of a debt instrument in good standing should equal its par (or face value). Another name for this effect is reduction of maturity. It results from the difference between market interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ... and the nominal yield on the bond. The Pull to Par effect is one of two factors that influence the market value of the bond and its volatility (the second one is the level of market interest rates). See also * * References {{DEFAULTSORT:Pull To Par Bond valuation Options (finance) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central Bank Of Trinidad And Tobago
The Central Bank of Trinidad and Tobago is the central bank of Trinidad and Tobago. The Central Bank of Trinidad and Tobago is located in the Eric Williams Financial Complex. The complex consists of the central bank auditorium and two sky-scrapers, locally known as the Twin Towers. The first tower houses the Central Bank of Trinidad and Tobago and the second tower houses the Ministry of Finance. It was only the second Central Bank to be established in the English-speaking Caribbean, the first being the Bank of Jamaica which was established in 1960. Governors * John Pierce (1964–1966) * Alexander McLeod (1966–1969) * Victor Bruce (1969–1984) *Euric Bobb (1984–1988) * William Demas (1988–1992) * Thomas Ainsworth Harewood (1992–1997) * Winston Dookeran (1997–2002) * Ewart S. Williams (2002–2012) * Jwala Rambarran (2012–2015) * Alvin Hilaire (2015–present) Functions The Central Bank of Trinidad and Tobago undertakes many functions in its day-to-day operati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trinidad And Tobago Dollar
The Trinidad and Tobago dollar ( currency code TTD) is the currency of Trinidad and Tobago. It is normally abbreviated with the dollar sign $, or alternatively TT$ to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents. Cents are abbreviated with the cent sign ¢, or TT¢ to distinguish from other currencies that use cents. Its predecessor currencies are the Trinidadian dollar and the Tobagonian dollar. History The history of currency in the former British colony of Trinidad and Tobago closely follows that of the British Eastern Caribbean territories in general. The first currency used was the Spanish dollar, also known as "pieces of eight", which began circulating in the 16th century. Proposals for establishing banks in the West Indies, targeted at landowners, were made in 1661 by the British government, and in 1690 by Sir Thomas Dalby. Despite this, and Queen Anne's proclamation of 1704 that brought the pound sterling currency sys ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
British West Indies Dollar
The British West Indies dollar (BWI$) was the currency of British Guiana and the Eastern Caribbean territories of the British West Indies from 1949 to 1965, when it was largely replaced by the East Caribbean dollar, and was one of the currencies used in Jamaica from 1954 to 1964. The monetary policy of the currency was overseen by the British Caribbean Currency Board (BCCB). It was the official currency used by the West Indies Federation. The British West Indies dollar was never used in British Honduras, the Cayman Islands, the Turks and Caicos Islands, the Bahamas, or Bermuda. History Queen Anne's proclamation of 1704 introduced the pound sterling currency system to the British West Indies; however it failed to displace the existing Spanish dollar currency system right up until the late 1870s. In 1822, the British government coined , , and fractional 'Anchor dollars' for use in Mauritius and the British West Indies (but not Jamaica). A few years later copper fractional dollars we ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trinidad And Tobago
Trinidad and Tobago, officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean, comprising the main islands of Trinidad and Tobago, along with several List of islands of Trinidad and Tobago, smaller islets. The capital city is Port of Spain, while its largest and most populous municipality is Chaguanas. Despite its proximity to South America, Trinidad and Tobago is generally considered to be part of the Caribbean. Trinidad and Tobago is located northeast off the coast of Venezuela, south of Grenada, and 288 kilometres (155 nautical miles) southwest of Barbados. Indigenous peoples of the Americas, Indigenous peoples inhabited Trinidad for centuries prior to Spanish Empire, Spanish colonization, following the arrival of Christopher Columbus in 1498. Spanish governor José María Chacón surrendered the island to a British fleet under Sir Ralph Abercromby's command in 1797. Trinidad and Tobago were ceded to Britain in 1802 under t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Partly Paid
A partly paid share is a share in a company which has only partial been paid compared to the par value, with the understanding that as the company requires more funds, calls will be made from time to time to request more money until the shares are fully paid, when no further calls can be made. The amounts may be specified in the prospectus or unspecified, and the shareholder is liable when a call is made by the company until the shares are fully paid. History In the early 20th century, partly paid shares were sometimes issued by companies such as banks and insurance companies, as they could call on their shareholders for further funds as necessary. This was good for the financial institution as they could quickly increase their capital when required but was unpopular with shareholders as they had an unknown liability that could be called upon at any time and for this reason the practice largely died out. The practice was revised during the 1980s privatisations to attract more small ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Convertible Bond
In finance, a convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering. Convertible bonds are also considered debt security because the companies agree to give fixed or floating interest rate as they do in common bonds for the funds of investor. To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt. The investor receives the potential upside of conversion into equity while protecting downside with cash flow from the coupon payments a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Call Option
In finance, a call option, often simply labeled a "call", is a contract between the buyer and the seller of the call Option (finance), option to exchange a Security (finance), security at a set price. The buyer of the call option has the right, but not the obligation, to buy an agreed quantity of a particular commodity or financial instrument (the underlying) from the seller of the option at or before a certain time (the Expiration (options), expiration date) for a certain price (the strike price). This effectively gives the buyer a Long (finance), ''long'' position in the given asset. The seller (or "writer") is obliged to sell the commodity or financial instrument to the buyer if the buyer so decides. This effectively gives the seller a Short (finance), ''short'' position in the given asset. The buyer pays a fee (called a Insurance, premium) for this right. The term "call" comes from the fact that the owner has the right to "call the stock away" from the seller. Price of opt ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
No-par Stock
No-par stock is stock issued with no par value given in the articles of incorporation or stock certificate. This is in contrast to stocks issued with a par value - a value for which the stock is redeemable to the issuing company - set at the time of issuance. In practice, the par value is the lowest price for which a stock can be sold, as prices lower than the par value would be redeemed to the issuing company. In contrast, the value of no-par stocks relies completely on the market, without this minimum price guarantee. Traditionally, the par value is set to be the same as the amount invested. However, in modern practice, the par value is set to a very low value (e.g. US$0.01 or US$0.00001) or not set at all. Some U.S. states (e.g. California) does not have the concept of par values, whilst some other U.S. states (e.g. Delaware) does. In the latter states, whether the stock is par or no-par affects the calculation of the annual franchise tax. See also * Corporation * Incorporatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
