What Is a Sectoral Currency? A sectoral currency is a medium of exchange that only has value in a limited marketplace in terms of geography or purpose. Local currencies, also known as a community currency, and local exchange trading systems (LETS) are examples of sectoral currency in use. The Fureai Kippu is a well-known example of
What Is Sector Analysis? Sector analysis is an assessment of the economic and financial condition and prospects of a given sector of the economy. Sector analysis serves to provide an investor with a judgment about how well companies in the sector are expected to perform. Sector analysis is typically employed by investors who specialize in
What Is a Sector Breakdown? A sector breakdown is the mix of sectors within a fund or portfolio, typically expressed as a portfolio percentage. Sector designations can vary depending on the fund’s investment criteria and overall objective. Key Takeaways The sector breakdown of a portfolio shows how much asset weights are allocated to what industry sectors.Sectors typically
What Is a Sector Fund? A sector fund is an investment fund that invests solely in businesses that operate in a particular industry or sector of the economy. Sector funds are commonly structured as mutual funds or exchange traded funds (ETFs). Key Takeaways A sector fund is an investment fund that invests in one type
What Is Secular? In finance, secular is a descriptive word used to refer to market activities that occur over the long term. Secular can also point to specific stocks or stock sectors unaffected by short-term trends. Secular trends are not seasonal or cyclical. Instead, they remain consistent over time. Key Takeaways Secular refers to market activities that unfold over
What Is a Secured Credit Card? A secured credit card is a type of credit card that is backed by a cash deposit from the cardholder. This deposit acts as collateral on the account, providing the card issuer with security in case the cardholder can’t make payments. With a secured credit card, the amount that
What Is a Secured Creditor? A secured creditor is any creditor or lender associated with an issuance of a credit product that is backed by collateral. Secured credit products are backed by collateral. In the case of a secured loan, collateral refers to assets that are pledged as security for the repayment of that loan.
What Is Secured Debt? Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the bank seizes the collateral, sells it, and uses the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered as
What Is a Secured Note? A secured note is a type of loan or corporate bond that is backed by the borrower’s assets as a form of collateral. If a borrower defaults on a secured note, the assets pledged as collateral can be sold to repay the note. While secured notes are commonly used to
What Is the Securities Act of 1933? The Securities Act of 1933 was created and passed into law to protect investors after the stock market crash of 1929. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and to establish laws against misrepresentation
