What is a Form S-3 Filing? Form S-3 filing refers to a simplified exchange and securities form that is used to register companies, instead of using the usual form S-1. They use the form to register their securities as per the 1993 Securities Act. It is the simplest form for registering company securities. Companies must meet organizational and trans...

What is a security interest in personal property? A security interest in personal property involves using any form of personal property or fixture to secure a debt. A borrower signs a promissory note that identifies the personal property that will serve as collateral to secure the loan. Personal property that may serve as collateral includes tangibl...

What are Assets Under Management? Assets under management (AUM) measures the total value of investment managed by an investment company, a mutual fund, hedge fund or financial institution. Asset under management is also referred to as funds under management. There are certain firms and institutions and manage investments on behalf of clients, such f...

What is a Broker Of Record? A broker of record is a term used in the insurance industry to describe an agent that represents an insured and manages a policy on their behalf. An insured person assigned this agent or broker to represent them and manage the insurance policy. This agent acts as the middle man between the insurance company and policyhold...

What is a Captive Real Estate Investment Trust? A captive REIT refers to a REIT that's controlled by just one company and it is created for tax. This tax reduction technique is usually utilized by large banks and retailers who have many branches or stores. How Does a Captive REIT Work? A captive REIT is established to capitalize on tax breaks given ...

What is Demand-Pull Inflation? Demand-pull inflation is an economic situation that occurs when the demand for goods and services is more than the supply of goods or services. In an economy, when aggregate demand outpaces aggregate supply, it means there is an imbalance and this creates demand-pull inflation. Demand-pull inflation often results in an...

What is the Penny Stock Reform Act? The Penny Stock Reform Act of 1990 is a part of the U.S. financial assets legislation which aims to reduce the amount of fraud involved in non-exchange-listed stocks which generally trade under $5 in over-the-counter markets (OTC). These stocks are generally referred to as penny stocks, and this name is preferred ...

How do Technology Shifts affect the Long-Run Average Cost Curve? New developments in production technology can shift the long-run average cost curve in ways that can alter the size distribution of firms in an industry. New production technologies do not inevitably lead to a greater average size for firms. On one side, the new technology may make it ...

What is a Turnaround for a Company? Turnaround refers to a firms period of financial recovery from a period of poor performance. It also refers to a country's economic recovery from a period of recession or stagnation. It also applies to a person whose personal finance bounces back from a period of steady decline.  Turnarounds mark the end period of...

What is an Absolute Exclusion in Insurance? Absolute Exclusion is a clause that can be found within certain insurance policies. The clause eliminates coverage of certain events under the policy. This clause allows the insurer to deny any claim that is remotely related to the actual nature of the exclusion. Insurance companies are legally obligated t...