What Is a Tontine? Tontine is the name of an early system for raising capital in which individuals pay into a common pool of money and receive dividends based on their share of returns from investments made with the pooled money. As members of the group died, they were not replaced with new investors so
What Is Top-Down Investing? Top-down investing is an investment analysis approach that focuses on the macro factors of the economy, such as GDP, employment, taxation, interest rates, etc. before examining micro factors such as specific sectors or companies. Key Takeaways Top-down investing focuses on the macro factors of the economy, such as GDP, before examining
What Is a Top Hat Plan? A top hat plan is a type of employer-sponsored plan that is unfunded. The design of the plan is to provide deferred compensation to the eligible employee group. However, participants in a top hat plan are typically high-ranking executives and directors. How a Top Hat Plan Works Top hat
What Are Top Holdings? Top holdings are the securities with the greatest market value weight in a portfolio. Top holdings are determined by the relative amount of market value they represent within the total portfolio. Top holdings may refer to those held by an individual investor, or to the highest weightings in a portfolio held
What Is the Tokyo Price Index (TOPIX)? The Tokyo Price Index—commonly referred to as TOPIX—is a metric for stock prices on the Tokyo Stock Exchange (TSE). TOPIX is a capitalization-weighted index that lists all firms in the “first section” of the TSE, a section that organizes all large firms on the exchange into one group. The second section
What Is the Topix Core 30 Index? The Topix Core 30 Index is a market index composed of 30 of the largest companies out of the stocks listed on the First Section of Japan’s Tokyo Stock Exchange, or Topix. The Topix Core 30 is one of several different Topix indexes. The Topix Core 30 Index
What Is the Top Line? The top line is a reference to gross figures reported by a company, such as sales or revenue. It is called the top line because it is displayed at the very top of a company’s income statement, and is reserved for the reporting of gross sales or revenue. A company
What Is a Topping-Up Clause? A topping-up clause is a contractual provision commonly found in loans involving more than one currency. It is intended to protect lenders and borrowers from the risk of foreign-currency devaluations. Specifically, topping-up clauses require the borrower to make additional payments to the lender to cover any devaluation in the currency
What Is the Truth in Lending Act (TILA)? The Truth in Lending Act (TILA) is a federal law enacted in 1968 to help protect consumers in their dealings with lenders and creditors. The TILA has been implemented by the Federal Reserve Board through a series of regulations. Some of the most important aspects of the
What Is a Time-of-Day Order? The term time-of-day order refers to a type of trade that allows an investor to request a specific time of day to have an order filled. Time-of-day orders can be executed for either buy or sell requests for stocks or other types of financial instruments. Timing is very important when
