What Is an Acquittance? An acquittance is a document which shows that a debtor has been released from a debt obligation by paying it in full. Key Takeaways Acquittance letters are issued by a lender or lien holder as proof that the owed amount has been satisfied.Banks and other mortgage lenders issue an acquittance once
What Is the Automated Confirmation Transaction (ACT) Service? Automated Confirmation Transaction (ACT) Service is an automated data system designed to document and report the clearing of trades on exchanges owned and operated by Nasdaq, which compares trade information entered by ACT participants and submits “locked-in” trades to National Securities Clearing Corporation (NSCC) for clearance and
What Is an Active Index Fund? An active index fund is a basket of assets in which the fund manager constructs the initial investment with holdings from a benchmark index and then adds securities unrelated to the underlying index or removes existing index components with the goal of driving portfolio performance higher. This additional layer of
What is Active Bond Crowd? Active bond crowd is the name given to traders who are members of the New York Stock Exchange (NYSE) and engage in high volume trading of active bonds. Key Takeaways Active bond crowd is the name given to traders who are members of the New York Stock Exchange and engage
Active investing refers to an investment strategy that involves ongoing buying and selling activity by the investor. Active investors purchase investments and continuously monitor their activity to exploit profitable conditions. Breaking Down Active Investing Active investing is highly involved. Unlike passive investors, who invest in a stock when they believe in its potential for long-term appreciation
What Is an Actively Managed ETF? An actively managed ETF is a form of exchange-traded fund that has a manager or team making decisions on the underlying portfolio allocation, otherwise not adhering to a passive investment strategy. An actively managed ETF will have a benchmark index, but managers may change sector allocations, market-time trades, or deviate
What Is Active Management? The term active management means that an investor, a professional money manager, or a team of professionals is tracking the performance of an investment portfolio and making buy, hold, and sell decisions about the assets in it. The goal of any investment manager is to outperform a designated benchmark while simultaneously
What Is Active Partner? An active partner is an invested person who is involved in the daily operations of the partnership. An active partner helps run the business to enhance his or her returns and is therefore considered a material participant. This person typically shares more risk and return versus a limited or silent partner.
What Is Active Retention? Active retention is the act of protecting against a loss by designating specific funds to pay for it. Active retention is the opposite practice of passive retention, in which no funds are set aside to cover an upcoming or estimated loss. Key Takeaways Active retention is a form of self-insurance in which
What Is Accrued Income? Accrued income is the money a company has earned in the ordinary course of business but has yet to be received, and for which the invoice is yet to be billed to the customer. Mutual funds or other pooled assets that accumulate income over a period of time—but only pay shareholders
