Archives

Electronic Communication Network. ECNs are expected to supplement or even replace conventional stock exchanges over the next one to two years.

Balance sheet liability reflecting expenses shown on the income statement that haven’t actually been paid. 

The number of debt instruments traded on one side of the transaction for a specified period multiplied by the face value of the debt instrument.

Stock price is heading down.

The day after dividends are paid.

Developing countries.

Balance sheet liability reflecting taxes due, but not yet paid. 

The process whereby an in-depth examination of a company’s business prospects is conducted.

A stock purchased from a company that has maintained a record of stable earnings and continuous dividend payments through periods of economic downturn.

Investment vehicles that may engage in the development, acquisition, and/or production of oil and gas reserves. The trust receives royalty income from producing properties (essentially, net cash flow) and then sells interests in the trust (called trust units) to investors. Conventional oil and gas royalty trusts are actively managed portfolios holding assets of mature producing properties. Substantially all of the cash flow generated by the oil and gas assets, net of certain deductions, such as administrative expenses and management fees, is passed on to the unit holders as royalty income. Capital expenses may also be deducted, but are usually subject to restrictions on the amount. The distributions are highly dependent upon the cash flow generated by the trust. In general, the largest variable in determining the level of cash flow is the price of crude oil and natural gas. Royalty trusts provide an alternative (from owning the shares of individual companies) for investors to participate in the oil and gas sector.