The net asset value (NAV) is one of the best metrics to use when assessing the value of a real estate investment trust (REIT). A REIT is a security traded like regular stocks that invests solely in real estate holdings, properties, or mortgages. The primary function of a REIT is to manage clusters of properties…
Short- and long-term bond yields have crashed to all-time lows in reaction to the coronavirus slowdown and the Federal Reserve’s 50-basis-point rate cut. Low yields will encourage risk taking through equities and real estate, but they’re unlikely to restart the slumping economy because money is already “cheap” and employers have entered a defensive mode that…
What Is a Nonfinancial Asset? A nonfinancial asset is an asset that derives its value from its physical traits. Examples include real estate and vehicles. It also includes all intellectual propertysuch as patents and trademarks. The classification of possessions as nonfinancial assets is important to businesses as these items appear on a company’s balance sheet…
What Is a Book Transfer? A book transfer is the transfer of funds from one deposit account to another at the same financial institution. An example would be when an individual moves funds from their checking account to their savings account. It can also be used to refer to the change in ownership of an…
Available credit and your credit limit may sound similar but they are two things. The difference between available credit and credit limit is tied to the account balance of a credit card or other debt. The credit limit is the total amount of credit available to a borrower, including any amount already borrowed. Available credit…
What Is a Strip Bond? A strip bond is a debt instrument in which both the principal and regular coupon payments—which have been removed—are sold separately. A strip bond is also known as a zero-coupon bond. key takeaways A strip bond is a debt obligation whose principal and coupon payments are removed (or stripped) by…
Advanced Micro Devices, Inc. (AMD) shares rose more than 3% on Tuesday morning before giving up those gains and moving into the red later in the day. Piper Sandler upgraded the chipmaker from Neutral to Overweight and raised its price target from $45 to $56 prior to the market open. Analyst Harsh Kumar believes that…
What Is Yield To Call? Yield to call (YTC) is a financial term that refers to the return a bondholder receives if the bond is held until the call date, which occurs sometime before it reaches maturity. This number can be mathematically calculated as the compound interest rate at which the present value of a…
Robinhood customers could only sit by and watch as the DJIA posted its biggest one-day point increase in history on March 2. Many of those customers are new to trading since the brokerage launched to the public in late 2014, and found themselves unable to log in, trade, or access their accounts as markets surged…