At once Bond Definition

At once Bond Definition

What Is a Straight Bond? A straight bond is a bond that pays interest at regular intervals, and at maturity pays back the principal that was originally invested. A straight bond has no special features compared to other bonds with embedded options. U.S. Treasury bonds issued by the government are examples of straight bonds. A

Right away-Via Processing (STP): Definition and Benefits

Right away-Via Processing (STP): Definition and Benefits

What Is Straight-Through Processing (STP)? Straight-through processing is an automated process done purely through electronic transfers with no manual intervention involved. Its popular uses are in payment processing as well as the processing of securities trades. Any company involved with straight-through processing will need to have the necessary systems and technical networking in place to

Stranger-Owned Existence Insurance policy (STOLI) Definition

Stranger-Owned Existence Insurance policy (STOLI) Definition

What Is Stranger-Owned Life Insurance? Stranger-owned life insurance (STOLI) is an arrangement in which an investor holds a life insurance policy without insurable interest on the insured. Without insurable interest, the investor would ordinarily be prohibited from purchasing the original policy. Because of this, STOLI policies are generally illegal and difficult to obtain. Key Takeaways

Strategic Asset Allocation Definition, Example

Strategic Asset Allocation Definition, Example

What Is Strategic Asset Allocation? Strategic asset allocation is a portfolio strategy. The investor sets target allocations for various asset classes and rebalances the portfolio periodically. The portfolio is rebalanced to the original allocations when they deviate significantly from the initial settings due to differing returns from the various assets. Key Takeaways: Strategic asset allocation

Strategic Buyer Definition

Strategic Buyer Definition

What Is a Strategic Buyer? A strategic buyer is a company that acquires another company in the same industry to capture synergies. The strategic buyer believes that the two companies combined will be greater than the sum of their separate individual parts and aims to integrate the purchased entity for long-term value creation. Because a strategic buyer expects