What Is a Silent Second Mortgage? A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage. The second mortgage is called “silent” because the borrower does not disclose its existence to the original
What Is a Silent Automatic Lien Silent automatic lien is a term that refers to a lien that does not appear in any public record. The Internal Revenue Service uses silent automatic liens to collect unpaid taxes when less drastic measures, such as sending letters to the delinquent taxpayer, have failed. Key Takeaways Liens are
What Is a Silent Bank Run? A silent bank run is when depositors withdraw funds in large volumes without physically entering the bank. Silent bank runs are similar to normal bank runs, except funds are withdrawn via electronic fund transfers, wire transfers, and other methods that do not require physical withdrawals of cash. Key Takeaways
What Is Silicon Valley? The term Silicon Valley refers to a region in the south San Francisco Bay Area. The name was first adopted in the early 1970s because of the region’s association with the silicon transistor, which is used in all modern microprocessors. The area is notable for the vast number of technology companies
What Is a Silo Mentality? A silo mentality is a reluctance to share information with employees of different divisions in the same company. This attitude is seen as reducing the organization’s efficiency and, at worst, contributing to a damaged corporate culture. Key Takeaways A silo mentality is the unwillingness to share information or knowledge between
What Is Silver Thursday? In finance, the term “Silver Thursday” refers to March 27, 1980, an infamous trading day in which the price of silver collapsed. The collapse was precipitated by the failed attempt of three brothers—Nelson Bunker Hunt, William Herbert Hunt, and Lamar Hunt—to corner the market in silver. Key Takeaways Silver Thursday was
What Is a Silver Certificate? A silver certificate is a type of legal tender in the form of paper currency that was issued by the U.S. government beginning in 1878. These certificates were eventually phased out in 1964 and today can be redeemed for their face value in cash only, rather than in actual silver.
What Is a Silver ETF? A silver exchange-traded fund (ETF) invests primarily in hard silver assets, which are held in trust by the fund manager or custodian. Established typically as grantor trusts, silver ETFs allow each share represented by the ETF the specific right to a particular quantity of silver, measured in ounces. Key Takeaways A
What Is a Silver Parachute? A silver parachute is a clause in a hiring contract outlining special compensation arrangements paid to specific employees when they leave a company or their position is made redundant or they are laid off. These types of clauses frequently come into effect following a merger, acquisition, or other change in
What Is Short Covering? Short covering refers to buying back borrowed securities in order to close out an open short position at a profit or loss. It requires purchasing the same security that was initially sold short, and handing back the shares initially borrowed for the short sale. This type of transaction is referred to
