CALL PROVISION
A supply on a bond or other permanent-earnings instrument that grants the original issuer to buy again and surrender the bonds. If there is a call provision in an area, it will commonly come with a time window below which the bond can be summoned, and a particular financial value to be paid to bondholders and any accrued interest are known.
Callable bonds will pay a bigger yield than comparable non-callable bonds.
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Target Return
Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
An individual who receives the remaining principal in a trust account after all required payments have been made, such as those to the beneficiary ...
Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
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