What Is an Authorized Investment? An authorized investment is one that is made by a trustee–or fiduciary–that follows the written instructions in a trust. Many trust documents specifically exclude certain speculative investments, in order to ensure that trust funds are managed conservatively. In the past, some states limited the types of investments that a trust
What Is an Authorized Participant? An authorized participant is an organization that has the right to create and redeem shares of an exchange traded fund (ETF). They provide a large portion of the liquidity in the ETF market by obtaining the underlying assets required to create the shares of an ETF. When there is a
What Is Authorized Share Capital? Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case
What is Authorized Stock? Authorized stock, or authorized shares, refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation in the U.S., or in the company’s charter in other parts of the world. It is also usually listed in the capital accounts section
What Is an Authorized Transaction? An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued the customer’s payment card. Key Takeaways An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued
What Is an Auto Enrollment Plan? An auto-enrollment plan is a retirement savings plan in which employees are automatically enrolled to contribute a certain amount of their salary each paycheck. Auto-enrollment plans don’t require the employee to take action or to explicitly consent to participate in an employer-sponsored retirement plan, like a 401(k). In such
What Is Automated Underwriting? Automated underwriting is a technology-driven underwriting process that provides a computer generated loan decision. The lending industry is broadly migrating to the use of new technology-driven loan underwriting platforms to improve the processing time for all types of loans. Key Takeaways Underwriting is the process of evaluating the risk involved with
What Is an Automatic Savings Plan? An automatic savings plan is a type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their account. The typical structure of this type is an automatic transfer from an individual’s bank account into a savings or investment
What Is an Automatic Bill Payment? An automatic bill payment is a money transfer scheduled on a predetermined date to pay a recurring bill. Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to vendors. Automatic payments are usually set up with the company receiving the payment, though it’s
Starting a vegetable garden can be fun and an inexpensive way to bring healthy food to your kitchen table. But it can be overwhelming if you don’t know where to start. The secret to getting started vegetable gardening is to take a little time to make a plan. Take a look at your yard or
