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Investments glossary

What Is an Opco?

Opco is the abbreviation for operating company, typically used when describing the primary operating company involved in an opco/propco deal. In some instances, the operating company spins off a subsidiary as a real estate investment trust (REIT) to read more

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Investments glossary

Proportional Tax Defined

A proportional tax is an income tax system that levies the same percentage tax to everyone regardless of income. A proportional tax is the same for low, middle, and high-income taxpayers. Proportional taxes are sometimes referred to as flat taxes.

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Investments glossary

Operating Cost Definition

Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis. The total operating cost for a company includes the cost of goods sold, operating expenses as well as overhead expenses. The operating read more

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Investments glossary

Nonperforming Asset

A nonperforming asset (NPA) is a debt instrument where the borrower has not made any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. The nonperforming asset is, therefore, not yielding read more

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Investments glossary

Share Class Definition

A share class is a designation applied to a specified type of security such as common stock or mutual fund unit. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as Class A shares read more

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Investments glossary

Net Receivables

Net receivables are the total money owed to a company by its customers minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage, and a higher percentage indicates a business has a greater ability to collect read more

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Investments glossary

Nostro Account

A nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostros, a term derived from the Latin word for ours, are frequently used to facilitate foreign exchange and trade transactions. The opposite term vostro read more

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Investments glossary

Adjusted Gross Income (AGI)

Adjusted gross income (AGI) is a measure of income calculated from your gross income and used to determine how much of your income is taxable. It is the starting point for calculating a filer’s tax bill in the United States and, among other read more

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Investments glossary

Generally Accepted Auditing Standards (GAAS)

Generally accepted auditing standards (GAAS) are a set of systematic guidelines used by auditors when conducting audits on companies’ financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of auditors’ actions read more

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Investments glossary

Dividend Discount Model – DDM

The dividend discount model (DDM) is a quantitative method used for predicting the price of a company’s stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their read more