What Is a Thin File? A “thin file” refers to the credit report of someone with little or no credit history. Consumers who are just starting out and may never have taken out a loan or had a credit card are said to have thin files. Key Takeaways A person with little or no credit
What Is the Third Market? A third market consists of trading conducted by non-exchange member broker-dealers and institutional investors of exchange-listed stocks. In other words, the third market involves exchange-listed securities that are being traded over-the-counter between broker-dealers and large institutional investors. The term “over-the-counter” typically refers to the trading of securities that are not listed
What Is a Third Market Maker? A third market maker is a type of market maker that deals in the third market, which is a segment of the financial markets in which exchange-traded securities are exchanged over-the-counter (OTC) by institutional investors. The term can also be used in a more general sense to refer to
What Is a Third Party? A third party is an individual or entity that is involved in a transaction but is not one of the principals and, thus, has a lesser interest in the transaction. An example of a third party would be the escrow company in a real estate transaction; the escrow party acts
What Is a Third-Party Mortgage Originator? A third-party mortgage originator is any third party that works with a lender to originate a mortgage loan. Third-party mortgage originators may include any person or company actively engaged in the marketing of mortgages, gathering information for mortgage applications, underwriting mortgages, or funding mortgage loans. Lenders may rely on
What Is a Third-Party Beneficiary? A third-party beneficiary is a person or business that benefits from the terms of a contract made between two other parties. In law, a third-party beneficiary may have certain rights that can be enforced if the contract is not fulfilled. Understanding the Third-Party Beneficiary There are certain standards that need
What Is a Third-Party Distributor? A third-party distributor is an institution that sells or distributes mutual funds to investors for fund management companies. These entities generally have no direct relation to the fund itself. Partnerships between mutual fund companies and third-party distributors often come with various fees and provisions. Since they are independent of fund management companies
What Is the Third-Party Technique? The third-party technique is a marketing strategy used by public relations firms. It utilizes the media to propagate positive messaging about a client. The third-party technique may take many forms, but generally involves utilizing journalists to promote a company’s products or services under the guise of news coverage. Such coverage
What Is a Third-Party Transaction? A third-party transaction is a business deal that involves a person or entity other than the main participants. Typically, it would involve a buyer, a seller, and another party—the third party. The involvement of the third party can vary, based on the type of business transaction. In some cases, the
What Is the Third World? “Third World” is an outdated and derogatory phrase that has been used historically to describe a class of economically developing nations. It is part of a four-part segmentation that was used to describe the world’s economies by economic status. Third World falls behind First World and Second World but was
