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Investments glossary

Public Limited Company (PLC)

The acronym PLC (public limited company) at the end of a company name signifies that the business offers shares to the public. It is used in Great Britain and some Commonwealth nations and is the equivalent of the U.S. Inc.

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Investments glossary

Long/Short Fund

A long/short fund is a type of mutual fund or hedge fund that takes both long and short positions in investments typically from a specific market segment. These funds often use several alternative investing techniques such as leverage, derivatives read more

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Investments glossary

Opening Imbalance Only Order (OIO)

Opening Imbalance Only Orders (OIO) are a type of limit order that provides liquidity during the opening cross on the Nasdaq. A limit order is an order placed with a brokerage to execute a buy or sell transaction at a set number of shares and a specified read more

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Investments glossary

Activity-Based Budgeting (ABB)

Activity-based budgeting (ABB) is a system that records, researches, and analyzes activities that lead to costs for a company. Every activity in an organization that incurs a cost is scrutinized for potential ways to create efficiencies. Budgets are read more

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Investments glossary

Gadfly

Gadfly is a colloquial term for an investor who attends the annual shareholders meeting to criticize the corporation’s executives. A gadfly addresses many issues for the shareholders, often raising questions to management about specific company read more

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Investments glossary

Vesting

Vesting is a legal term that means to give or earn a right to a present or future payment, asset, or benefit. It is most commonly used in reference to retirement plan benefits when an employee accrues nonforfeitable rights over employer-provided stock read more

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Investments glossary

Non-Covered Security

A non-covered security is an SEC designation under which the cost basis of securities that are small and of limited scope may not be reported to the IRS. The adjusted cost basis of non-covered securities is only reported to the taxpayer, and not the read more

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Investments glossary

Agency Theory

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Investments glossary

Stockholders’ Equity

Stockholders’ equity, also referred to as shareholders’ equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm’s total assets less its total liabilities read more

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Investments glossary

Dilution

Dilution (also known as stock or equity dilution) occurs when a company issues new stock which results in a decrease of an existing stockholder’s ownership percentage of that company. Stock dilution can also occur when holders of stock options, read more