What Is Style Drift? Style drift is the divergence of a fund from its investment style or objective. Style drift can result naturally from capital appreciation in one asset relative to others in a portfolio. It can also occur from a change in the fund’s management or a manager who begins to diverge from the
What Is a Sub Account? A sub account is a segregated account nested under a larger account or relationship. At the most basic level, a sub account can be thought of as an account within an account. Key Takeaways A sub account is a segregated account nested under a larger account or relationship.These separate accounts
What Is a Subaccount Charge? A subaccount charge is a type of fee charged by a bank or other financial institution for the management of a subaccount, which is a type of account embedded into a larger account structure. For example, an investment advisor might have multiple subaccounts opened on behalf of their client, each
What Is an S Corporation (S Corp)? An S corp or S corporation is a business structure that is permitted under the tax code to pass its taxable income, credits, deductions, and losses directly to its shareholders. That gives it certain advantages over the more common C corp, The S corp is available only to
What Is Subjective Probability? Subjective probability is a type of probability derived from an individual’s personal judgment or own experience about whether a specific outcome is likely to occur. It contains no formal calculations and only reflects the subject’s opinions and past experience. An example of subjective probability is a “gut instinct” when making a
What is Subordinate Financing Subordinate financing is debt financing that is ranked behind that held by secured lenders in terms of the order in which the debt is repaid. “Subordinate” financing implies that the debt ranks behind the first secured lender, and means that the secured lenders will be paid back before subordinate debt holders.
A subordination clause is a clause in an agreement which states that the current claim on any debts will take priority over any other claims formed in other agreements made in the future. Subordination is the act of yielding priority. Breaking Down Subordination Clause When a home is foreclosed and liquidated for cash, the first
What Is a Subordination Agreement? A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on payments or declares bankruptcy. A subordination agreement acknowledges that one party’s claim or interest
What Is Sub-Penny Trading? Sub-penny trading is a practice where brokers and dealers trade in unseen, unregulated markets in increments of less than a penny through wholesalers, dark pools, and lit exchanges. The Sub-Penny Rule (SEC Rule 612) of 2005 currently prevents exchanges governed by the SEC from quoting trades in increments less than a
What is Subpoena? A subpoena is a formal written order that requires a person to appear before a court, or other legal proceedings (such as a Congressional hearing), and testify, or produce documentation. Key Takeaways A subpoena is a formal written order that requires a person to appear before a court, or other legal proceedings
