The near-term is the time frame within which an investor expects to see results from an investment. This time frame can be as short as a few days or as long as a few years. The near-term is often used in contrast to the long-term, which is a time frame of five years or more. … Read more
A “category killer” is a type of business that completely dominates a particular market or product category. The term is often used in retailing, where a category killer is a store that offers such a wide selection of merchandise in a particular category that it “kills” the competition. For example, in the United States, Walmart … Read more
An indication of interest, or IOI, is a formal statement from a prospective buyer to a seller that indicates the buyer’s interest in acquiring a security or other asset. IOIs are commonly used in the securities industry to signal a potential interest in buying or selling a security. For example, a broker may send an … Read more
Ordinary shares of stock are the most common type of stock and are typically the first type of stock issued by a company. Ordinary shares give the holder voting rights and entitle them to receive dividends, if declared. The holder of ordinary shares also has a residual claim on the assets of the company in … Read more
The term “repayment” refers to the act of paying back money that has been borrowed from a lender. This can be done in a variety of ways, but the most common method is to make periodic payments over a set period of time until the entire debt is repaid. There are many different types of … Read more
Melt-up is a term that is used to describe a situation where asset prices rise rapidly and significantly. This can happen in a variety of markets, but is most commonly seen in the stock market. A melt-up can be caused by a number of factors, but is typically the result of investors becoming overly bullish … Read more
Cornering a market is the process of buying up so much of a particular asset that you effectively become the sole seller of that asset. This gives you complete control over the price of the asset, as there are no other sellers to compete with. In order to corner a market, you must have enough … Read more
A Special Memorandum Account (SMA) is an account that is used to hold securities that are not readily marketable. These securities may be illiquid or restricted, meaning that they cannot be sold on the open market. Instead, they must be held in an account with a broker-dealer or other financial institution that is willing to … Read more
A sidecar investment is an investment that is made in addition to, or alongside, a primary investment. The purpose of a sidecar investment is to provide additional capital to the primary investment, or to provide additional protection against losses. Sidecar investments are often made by hedge funds and other institutional investors. They may also be … Read more
The phrase “losing your shirt” is often used to describe the experience of losing a large amount of money in a short period of time. The phrase is typically used in the context of investing, where investors who make poor decisions or experience bad luck can quickly see their investment portfolio plummet in value. While … Read more
