What Is a Payee? A payee is a party in an exchange of goods or services who receives payment. The payee is paid by cash, check, or another transfer medium by a payer. The payer receives goods or services in return. The name of the payee is included in the bill of exchange and it
What Is a Paying Agent? A paying agent—also known as a “disbursing agent”—is one who accepts payments from the issuer of a security and then distributes the funds to holders of the security. Paying Agent Explained Paying agents are usually a corporate trust department of a bank or trust company that are designated to make dividend
What Is a Payment? Payment is the transfer of money, goods, or services in exchange for goods and services in acceptable proportions that have been previously agreed upon by all parties involved. A payment can be made in the form of services exchanged, cash, check, wire transfer, credit card, debit card, or cryptocurrencies. Key Takeaways
What Is Payment-in-Kind (PIK)? Payment-in-kind (PIK) is the use of a good or service as payment instead of cash. Payment-in-kind also refers to a financial instrument that pays interest or dividends to investors of bonds, notes, or preferred stock with additional securities or equity instead of cash. Payment-in-kind securities are attractive to companies preferring not
What Is Payment for Order Flow (PFOF)? Payment for order flow (PFOF) is a form of compensation, usually in terms of fractions of a penny per share, that a brokerage firm receives for directing orders for trade execution to a particular market maker or exchange. Payment for order flow is common in options markets, and
What Is the Labor Force Participation Rate? The labor force participation rate is an estimate of an economy’s active workforce. The formula is the number of people ages 16 and older who are employed or actively seeking employment, divided by the total non-institutionalized, civilian working-age population. In the 12 months ending January 2023, the U.S.
What Are Participatory Notes? Participatory notes also referred to as P-notes, or PNs, are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI). P-notes are among the group of investments considered to be Offshore Derivative Investments (ODIs). Any dividends or
What Is a Partnership? A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners may have limited liability. There also
What Is a Party Wall? In real estate terminology, a party wall is a shared wall that separates two separately rented or owned units. Party walls are most commonly found in apartments, condominiums, hotels, and office complexes, where different tenants will share a common structure. Party walls can be a non-structural wall, but laws in
What Is Par Value? Par value, also known as nominal or original value, is the face value of a bond or the value of a stock certificate, as stated in the corporate charter. Stock certificates issued for purchased shares show the par value. The par value of shares, or the stated value per share, is the
