Exchange Traded Funds (ETF)
Funds similar to normal index mutual funds with a portfolio that mirrors a specific index or industry sector basket of securities. The primary difference between an ETF and an index is that ETFs have shares that trade like common stock shares.
General Partners
Mange the DPPs, General Partnerships, and Limited Partnerships.
Main advantages offered by Oil and Gas Partnerships
Intangible drilling costs, depletion, tax deferral, flow through of tax benefits, depreciation deductions
What can Real Estate Direct Participation Programs invest in?
Residential, commercial, industrial, Government assisted housing, condominium securities, and raw land properties
Direct Participation Program (DPP)
A program which allows investors certain tax advantages for the underlying asset.
Limited Partners
Liability is limited to the amount of their "at risk" investment in the entity
Priority of claims to be paid upon dissolution of an LP
1. Creditors - secured then general creditors 2. Limited Partners - profit claims, then capital claims 3. General Partners - profit claims, then capital claims
The Tax Code allows up to $25,000 of losses from rental real estate activities to be deducted each year against ordinary income.
Unit Investment Trusts (UIT)
Generally have a fixed portfolio of diverse municipal or corporate bonds. They only issue redeemable units and they are not managed but are supervised.
Eurodollar Certificates of Deposit (Eurodollar CDs)
Short term instruments issued by banks outside the US.
Exchange Traded Notes (ETN)
Debt instruments issued by banks. The bank promises to repay the principal amount less investor fees at final maturity and the performance of the ETN is linked to a specific index or a particular strategy of investing.
Eurodollar Bonds
Bonds issued outside the US by either foreign or domestic corporations.
Individual Certificates of Deposit (CDs)
Short term instruments which are guaranteed by banks in return for time deposits.
Real Estate Investment Trust (REITs)
companies that manage a portfolio of real estate to earn profits for their shareholders, generally formed to invest in real estate.
Equipment trust certificate
An instrument of debt that is generally issued by transportation companies to purchase new equipment, which are secured by the new equipment. These bonds are usually not callable, are normally issued in serial form, and rarely ever default.
Jumbo Certificates of Deposit (Jumbo CDs)
Short term instruments with a minimum deposit of $100,000 issued and guaranteed by banks.
Eurodollars
Deposits in US dollars with banks outside of the US that are frequently used to settle international transactions.
Banker's Acceptances
Used to finance foreign trade.
Ginnie Mae (GNMA)
A government agency which offers investors an undivided interest in a pool of mortgages (VA and FHA) guaranteed by the US Government.
Collateralized Mortgage Obligation (CMO)
A bond that is secured by a pool of mortgage loans. CMOs are mortgage-backed securities.
Freddie Mac (FHLMC)
A publically owned, government sponsored company which trades on the NYSE using conventional mortgage payments made by homeowners to pay principal and interest.
Collateral trust certificate
An instrument of debt issued by a company using securities of other companies as collateral (mostly stocks and bonds). The securities are placed on deposit with a trustee while the collateral trust certificates are outstanding.
Fannie Mae (FNMA)
A publically owned government sponsored company which trades on the NYSE. It buys mortgages from lenders and is the largest source of home mortgage funds (VA and FHA) for low, moderate, and middle income home buyers in the U.S.
Commercial Paper
Unsecured promissory notes of corporations - one of the best ways for a corporation to raise short term funds.
Repurchase Agreements (REPOs)
Short-term money market instruments sold by a firm with the agreement to repurchase them at a later date at an agreed upon price.
American Depositary Receipts (ADR)
Receipts traded in the U.S. for foreign securities held in bearer form by an American bank in the foreign country. They have no voting privileges, dividends are paid in U.S. dollars, and they are not issued as callable.
No comments:
Post a Comment