NASDAQ.com Term of the Day

Covenant defeasance

Sat, 18 May 2013 00:00:00 -0400

Covenant defeasance allows the issuer to remove the bond's covenants by placing the remaining payments with a trustee in escrow to be paid out on schedule.

Whitemail

Fri, 17 May 2013 00:00:00 -0400

Sale of a large amount of stock by a company that is the target of a takeover bid to a friendly party at below-market prices, so that the raider is forced to buy more of highly priced shares to accomplish the takeover.

Top-down approach

Thu, 16 May 2013 00:00:00 -0400

A method of security selection that starts with asset allocation and works systematically through sector and industry allocation to individual security selection.

NRA (Non-Resident Alien) Tax

Wed, 15 May 2013 00:00:00 -0400

The tax which must be withheld by the corporation or its disbursing agent (usually 15% or 30%, depending on the hold's citizenship).

Escheatment

Tue, 14 May 2013 00:00:00 -0400

The process of turning over unclaimed or abandoned property to a state authority. Escheatment laws require mutual funds to turn over uncashed or returned check dollars and/or client account fund shares if the owner cannot be located within a length of time determined by each state.