Homebuyers face may choices in types of mortgages, from longer-term fixed rate loans to shorter-term adjustable-rate loans. A 2/28 adjustable-rate mortgage is one type of adjustable rate mortgage that is less common than the traditional 30-year fixed mortgage, but it may suit some buyers’ needs. A 2/28 mortgage essentially offers a two-year fixed interest rate
What Was the 500 Shareholder Threshold? The 500 shareholder threshold for investors is an outdated rule required by the Securities and Exchange Commission (SEC) that triggered public reporting requirements of a company when it reached that many or more distinct shareholders. Section 12(g) of the Securities Exchange Act of 1934 calls for issuers of securities
What Is A+/A1? A+ /A1 refers to two ratings issued to long-term bonds and bond issuers by the competing credit rating agencies Standard & Poor’s (S&P) and Moody’s respectively. S&P uses A+, and Moody’s uses A1, but both indicate pretty much the same thing. Both A+ and A1 sit squarely in the middle of the
What Is Aa2? Aa2 is the third-highest long-term credit rating that ratings agency Moody’s assigns to fixed-income securities, like bonds, that are of high quality with very low credit risk. Key Takeaways Aa2 is the third-highest long-term credit rating that Moody’s assigns to high-quality fixed-income securities with very low credit risk.The letters, “Aa” in this
What Is a AAA Credit Rating? AAA is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default. Rating agencies
AA+ vs. Aa1: An Overview Credit rating agencies score individuals, companies, and governments based on their ability to pay their debts. Agencies like Standard & Poor’s (S&P) Global Ratings and Moody’s Investors Services assign these ratings to entities (corporations and governments) that issue debt, such as a bond, through a letter-based scale. A bond’s rating
What is Alliance of American Insurers (AAI) The Alliance of American Insurers (AAI) was a coalition consisting primarily of property-casualty insurance carriers, formed as political lobby for this part of the insurance industry. It pursued activities aimed at furthering its objectives with both politicians and the wider public. In 2004, the AAI and National Association of Independent Insurers (NAII)
What Is the Accounting and Auditing Organization for Islamic Financial Institutions? The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is a not-for-profit organization established to maintain and promote Shari’ah standards for Islamic financial institutions, participants, and the overall industry. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) was established in 1991
What Is the Average Annual Return (AAR)? The average annual return (AAR) is a percentage used when reporting the historical return, such as the three-, five-, and 10-year average returns of a mutual fund. The average annual return is stated net of a fund’s operating expense ratio. Additionally, it does not include sales charges, if
What Is AARP? The American Association of Retired Persons, commonly known by its acronym AARP, is America’s leading organization for people aged fifty and older, providing member benefits, marketing services, and lobbying on their behalf. Founded in 1958 by retired educator Dr. Ethel Percy Andrus as the American Association of Retired Persons, AARP is a
