- interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security at the time of sale the buyer pays the seller the bonds Price Plus accrued interest calculated by multiplying the coupon rate by the number of days that have elapsed since the last payment
- accrued interest is also used in a real estate limited partnership when the seller of a building takes a lump sum in cash at the time of sale and gives a second mortgage for the remainder if the rental income from the building does not cover the mortgage payment the seller agrees to let the interest accrue until the building is sold to someone else accrued interest deals were curtailed by the 1984 Tax Act
Adjusted Balance Method
formula for calculating finance charges based on account balance remaining…
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preferred stock whose dividend it said of being fixed is…
Keep readingAdjustable Rate Mortgage (ARM)
mortgage agreement between a financial institution in a real estate…
Keep readingAgreement Among Underwriters
contract between participating members of an investment banking Syndicate sometimes…
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mutual fund holding stocks of rapidly growing companies while these…
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securities issued by US Government sponsored entities( gse’s) end federally…
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amount of money adjusted for inflation that an investor can…
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trading of stocks and bonds after regular trading hours on…
Keep readingAfter Acquired Clause
clause in a mortgage agreement providing that any additional mortgage…
Keep readingAffordability Index
standard established by the National Association of Realtors( Nar) to…
Keep readingAffirmative Obligations
financial industry regulatory Authority( finra) requirement that market-makers quote firm…
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brokerage account in which Brokers discretion in making investment decisions…
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tendency of people with significant potential to file claims wanting…
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government securities exchange of return government securities prior to their…
Keep readingAdvanced detection systems ( ADS)
financial industry regulatory Authority (finra) automated surveillance system used to…
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book value adjusted for market value on the balance sheet
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court-appointed individual or bank charged with carrying out the Court’s…
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income on which an individual or couple computes federal income…
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life insurance that gives a policyholder power to change the…
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contributions made by an employee into a tax-deferred savings account…
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Investment Management where the portfolio manager actively makes investment decisions…
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collateral available for securing Brokers loans or customers margin positions…
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run by the financial industry regulatory Authority (finra) Aces passes…
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dividend due, usually to Holders a cumulative preferred stock but…
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estimated liability of a pension plan assuming immediate termination differs…
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ratio obtained by dividing total credit sales by accounts receivable…
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short-term financing whereby accounts receivable serve as collateral for working…
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statement signed by an independent public accountant describing the scope…
Keep readingAccommodative Monetary Policy
Federal Reserve policy to increase the amount of money available…
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