What Is a Prudent Investment? A prudent investment refers to the recognized use of financial assets that are suitable for an investor’s goals and objectives. A prudent investment considers the risk/return profile and the time horizon of an investor. Fiduciaries (such as financial advisors, attorneys, CPAs and retirement plan sponsors), whom an investor entrusts to
What Is the Private Securities Litigation Reform Act (PSLRA)? The Private Securities Litigation Reform Act (PSLRA) is a piece of legislation passed by Congress in 1995 to stem the filing of frivolous or unwarranted securities lawsuits. The Private Securities Litigation Reform Act increased the amount of evidence that plaintiffs are required to present before filing
What Is Price to Tangible Book Value (PTBV)? Price to tangible book value (PTBV) is a valuation ratio expressing the price of a security compared to its hard or tangible net assets’ book value as reported in the company’s balance sheet. The tangible book value number is equal to the company’s total book value less
What Is a Perseroan Terbatas (PT)? Perseroan Terbatas (PT) is the type of legal entity that a foreign company, foreign government, or foreign individual must use to run a revenue-generating business in Indonesia. Also known as a foreign investment limited liability company, a PT is a business entity that allows foreign investors to conduct commercial
What Is Public? Public refers to anything that can be accessed by any person or group in the general population. In the context of investment and finance, the term is most commonly used to describe securities that are available on an exchange or an over-the-counter market, and the population who trades those securities. Key Takeaways
What Is Proof of Work (PoW)? Proof of work (PoW) describes a consensus mechanism that requires a significant amount of computing effort from a network of devices. The concept was adapted digital tokens by Hal Finney in 2004 through the idea of “reusable proof of work” using the 160-bit secure hash algorithm 1 (SHA-1). Following
What Is a Prop Shop? A prop shop is a trading firm that deploys its own capital in pursuit of trading profits. ‘Prop’ is short for proprietary. A variety of trading strategies are employed by prop shops for assets ranging from basic liquid assets like stocks and bonds to complex securities such as collateralized debt
What Is a Propco (Property Company)? A propco, property company, or prop company is a secondary entity created by a business specifically to hold and manage the real estate that it owns. Handing over income-generating property and its related debt to a newly formed subsidiary typically provides the parent or opco (operating company) with advantages related to financing
What Are Property Rights? Property rights define the theoretical and legal ownership of resources and how they can be used. These resources can be both tangible or intangible and can be owned by individuals, businesses, and governments. In many countries, including the United States, individuals generally exercise private property rights or the rights of private
What Is a Property Assessed Clean Energy (PACE) Loan? A Property Assessed Clean Energy (PACE) loan is a type of financing available to make energy efficiency upgrades and renewable energy improvements at a commercial or residential property. PACE programs are overseen by the U.S. Department of Energy, and more than $3.4 billion in energy efficiency
