Tag: stocks

Allocation Notice definition explanation

What is Allocation Notice?
An official notification from an options clearing firm to the writer of an option that the current option holder has exercised and, therefore, the writer must produce the underlying security. This may require the option’s writer to purchase or sell securities on the open market to fulfill the contractual obligation.

Allocation notice can also refer to how a broker or advisor would inform a client who has shown interest in an IPO whether his or her requested allocation of IPO shares is available in full, or if only a fraction of the requested total is available for purchase. Read more for examples and further explanation including related video clips and also comments
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Net Investment Income definition explanation

What is Net Investment Income?
Income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans and other investments (less related expenses). The individual tax rate on net investment income depends on whether it is interest income, dividend income or capital gains. Read more for examples and further explanation including related video clips and also comments
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Standard And Poor’s CNX Nifty definition explanation

What is Standard And Poor’s CNX Nifty?
A stock index endorsed by Standard & Poor’s and composed of 50 of the largest and most liquid stocks found on the National Stock Exchange (NSE) of India. It is commonly used to represent the market for benchmarking Indian investments. Similar to other major stock indexes like the S&P 500, companies must meet certain requirements in terms of market capitalization and liquidity before they can be considered for inclusion in the index.

Also known as “”Nifty 50″”. Read more for examples and further explanation including related video clips and also comments
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Dow Jones Wilshire Large-Cap Index definition explanation

What is Dow Jones Wilshire Large-Cap Index?
A market-capitalization weighted index maintained by Dow Jones Indexes that is the large-cap subset of the Dow Jones Wilshire 5000 Composite Index. The Dow Jones Wilshire Large-Cap Index contains the top 750 companies as measured by market capitalization. Read more for examples and further explanation including related video clips and also comments
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Keogh Plan definition explanation

What is Keogh Plan?
A tax deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or defined-contribution plan, although most plans are defined contribution. Contributions are generally tax deductible up to 25% of annual income with a limit of $47,000 (as of 2007). Keogh plan types include money-purchase plans (used by high-income earners), defined-benefit plans (which have high annual minimums) and profit-sharing plans (which offer annual flexibility based on profits).

Also known as an HR(10) plan, Keogh plans can invest in the same set of securities as 401(k)s and IRAs, including stocks, bonds, certificates of deposit and annuities. Read more for examples and further explanation including related video clips and also comments
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Stewardship Grade definition explanation

What is Stewardship Grade?
An evaluative data point in Morningstar’s fund and stock reports that assesses the quality of a company’s governance practices. Stewardship grades for both funds and stocks range from ‘A’ (excellent) to ‘F’ (very poor) based on criteria that measures the effectiveness of fund and corporate managers to consistently act with their shareholders’ best interests in mind. Read more for examples and further explanation including related video clips and also comments
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