Asset-backed securities are a collateralized pool of assets. These include loans, credit card debt, auto debt, leases, royalties, and other loans. Similarly, they come due to a process known as securitization. With securitization, issuers pool assets together into one group. Then they sell this group of assets to investors. There …

Bonds are debt instruments that governments and companies use to raise finance. They can use this finance according to their needs. The people who pay for it become the lenders. After a specific period, the borrower entity must repay the amount to the people from whom they have taken the …

Securitization is the process where issuers design a marketable financial instrument by pooling several financial assets into one group. Then, they sell the group of repackaged assets to investors. There are various types of securities that come as a result of securitization. Among those, one is the asset-backed securities. What …

When investing in stocks, investors weigh various factors. Among these, investors may also analyze several dates related to the stock. One such date that investors always consider is a stock’s ex-dividend date. What is the Ex-Dividend Date? Ex-dividend dates come with ex-dividend stocks. These are stocks that trade without the …

What is Share Buyback? A share buyback refers to a process that companies use to buy their outstanding shares in the market. The reason for doing so is to reduce the number of a company’s outstanding shares available on the market. It can provide several advantages to a company but …

A dividend is a payment made from companies to their shareholders. These payments come from the earnings the companies generate from their financial activities. Most companies distribute these payments to compensate their shareholders for their investments. Paying dividends is prevalent among companies. Sometimes, however, companies may also pay their shareholders …

What Is a Reverse Stock Split? A reverse stock split is a process used by companies to reduce the number of their outstanding shares in the market. Companies use reverse stock splits to consolidate their existing shares into fewer but proportionately more valuable shares. Reverse stock splits can provide a …

What is a Stock Split? A stock split is when companies divide their existing shares into multiple new shares. Usually, the goal with stock splits is to decrease stock prices and boost liquidity. Usually, companies use multiples to increase their shares outstanding. For example, companies may use 3-for-1 or 4-for-1 …

What is Book Value Per Share? Book value per share (BVPS) is a metric used to calculate a company’s per-share book value. It uses the common shareholders’ equity balance of a company. Therefore, it is also known as the book value per common share. Calculating a company’s book value per …

What is an Income Trust? An income trust is an investment that may hold various types of securities. These may include equities, debt instruments, real estate, etc. It is beneficial for the financial requirements of institutional investors, such as pension funds. Similarly, old-age investors may also prefer income trust that …