What Is Passive Management? Passive management is a style of management associated with mutual and exchange-traded funds (ETF) where a fund’s portfolio mirrors a market index. Passive management is the opposite of active management in which a fund’s manager(s) attempt to beat the market with various investing strategies and buying/selling decisions of a portfolio’s securities.
What Is a Pass-Through Rate? The pass-through rate is the interest rate on a securitized asset, such as a mortgage-backed security (MBS), that is paid to investors once management fees, servicing fees, and guarantee fees have been deducted by the issuer of the securitized asset. It is often referred to as the net interest rate. Key Takeaways The
What Is a Pass-Through Certificate? Pass-through certificates are fixed-income securities that represent an undivided interest in a pool of federally insured mortgages put together by a government-sponsored agency, such as the Government National Mortgage Association (Ginnie Mae). How a Pass-Through Certificate Works A large percentage of mortgages that have been issued to borrowers are sold
What Is a Pass-Through Security? A pass-through security is a pool of fixed-income securities backed by a package of assets. A servicing intermediary collects the monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the pass-through security (that is, people or entitities who have invested in
What Does Past Due Mean? Past due refers to a payment that has not been made by its cutoff time at the end of its due date. A borrower who is past due will usually face some penalties and can be subject to late fees. Failure to repay a loan on time usually has negative
What Is Past Service? Past service refers to the period of employment prior to an employee’s participation in a pension plan. That period may exclude the employee from certain benefits that existed before they participated in the plan. Employees have the option to purchase past service, using cash or through a qualified retirement plan roll-over
What Is a Patent? A patent is the granting of a property right by a sovereign authority to an inventor. This grant provides the inventor exclusive rights to the patented process, design, or invention for a designated period in exchange for a comprehensive disclosure of the invention. They are a form of incorporeal right. Government agencies
What Is Patent Share? Patent share is the percentage share of a universe of patents owned or created by one subset of that universe. This term usually applies to a comparative share between nations. Patent share has been subdivided not only across nations, but within industry groups and even between companies relative to each other.
What Is a Patent Attorney? A patent attorney is a lawyer with expertise in intellectual property law pertaining to securing and protecting an inventor’s property rights. Patent attorneys have passed a federal exam referred to as the “patent bar exam” that grants them a license to represent clients before the United States Patent and Trademark
What Is a Patent Cliff? A patent cliff is a colloquialism to denote the potential sharp decline in revenues upon patent expiry of one or more leading products of a firm. A patent cliff is when a firm’s revenues could “fall off a cliff” when one or more established products go off-patent, since these products
