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What Is an International Bond? An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity. International bonds are generally corporate bonds. Many …

What Does “Spider” Mean? Spider (SPDR) is a short form name for a Standard & Poor’s depository receipt, an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor’s 500 index (S&P 500). Each share of an SPDR contains a 10th of the S&P 500 index and trades at roughly a 10th of the dollar-value …

Mutual funds are pretty transparent. You can easily find out what stocks are in a mutual fund by searching online. Many financial sites list the holding of funds. The price of a share, often called a unit, is posted on these sites, and you can find it easily if you use an online discount broker as well. Mutual fund trades …

What Is a Multi-Asset Class? A multi-asset class, also known as a multiple-asset class or multi-asset fund, is a combination of asset classes (such as cash, equity or bonds) used as an investment. A multi-asset class investment contains more than one asset class, thus creating a group or portfolio of assets. The weights and types of classes vary according to …

Although it is rare, companies and governments do issue bonds with a century-spanning term. For example, multi-billion dollar corporations such as the Walt Disney Company (DIS) and Coca-Cola (IS) have issued 100-year bonds in the past. Countries such as Argentina, Austria, and Mexico have issued 100-year bonds, too. Why on earth would an investor buy a 100-year bond—one that far exceeds …

What Is a Gross Income Multiplier? A gross income multiplier (GIM) is a rough measure of the value of an investment property. It is calculated by dividing the property’s sale price by its gross annual rental income. Investors can use the GIM—along with other methods like the capitalization rate (cap rate) and discounted cash flow method—to value commercial real estate …

What Is a Contingent Deferred Sales Charge (CDSC)? A contingent deferred sales charge (CDSC) is a fee, sales charge or load, which mutual fund investors pay when selling Class-B fund shares within a specified number of years from the original purchase date. This fee is also known as a “back-end load” or “sales charge.” For mutual funds with share classes …

What Is an Allocation Rate? An allocation rate is a percentage of an investor’s cash or capital outlay that goes toward a final investment. The allocation rate most often refers to the amount of capital invested in a product net of any fees that may be incurred through the investment transaction. An allocation rate may also be used when determining …

What Is a Net Lease? The term net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. Net leases are commonly used in commercial real estate. In the purest form of a net lease, the tenant is expected to pay for all …