What Is a Special Warranty Deed? A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn’t guarantee against any defects in clear title that existed before they took possession of the
What Is Specific Risk? To an investor, specific risk is a hazard that applies only to a particular company, industry, or sector. It is the opposite of overall market risk or systematic risk. Specific risk is also referred to as unsystematic risk or diversifiable risk. Understanding Specific Risk When considering whether to buy, hold, or sell
What Is the Sortino Ratio? The Sortino ratio is a variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset’s standard deviation of negative portfolio returns—downside deviation—instead of the total standard deviation of portfolio returns. The Sortino ratio takes an asset or portfolio’s return and subtracts the risk-free
What Is Selling Out of Trust? “Selling out of trust” is an expression commonly used in the automobile industry to refer to the illegal sale of a car that has been paid for with a loan and then not using the sale proceeds to pay back the lender. This practice may be engaged in by
What Is Sotheby’s? Sotheby’s is one of the world’s largest auction houses and brokers of art, collectibles, jewelry, and real estate. Founded in England and headquartered in New York City, Sotheby’s is organized into three separate business units: finance, auctions, and dealing. It also offers a number of related services, such as private sales and corporate
What Is Sour Crude? Sour crude is a type of crude oil known for its relatively high sulfur content. The presence of sulfur makes oil more difficult and costly to refine, causing sour crude to be viewed as a less desirable form of crude oil. By contrast, sweet crude oil is known for its low
What Is the South African Reserve Bank? The South African Reserve Bank (SARB) is the central reserve bank of the Republic of South Africa. Its functions include the formulating and implementing of South Africa’s monetary policy, ensuring the efficiency of South Africa’s financial system, and educating South Africa’s citizens about the monetary and economic situation
What Is a Sovereign Wealth Fund (SWF)? A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country’s surplus reserves. SWFs provide a benefit for a country’s economy and its citizens. The funding for a SWF can come from a variety of sources. Popular sources are
What Is a Sovereign Bond? A sovereign bond is a debt security issued by a national government to raise money for financing government programs, paying down old debt, paying interest on current debt, and any other government spending needs. Sovereign bonds can be denominated in a foreign currency or the government’s domestic currency. Sovereign bonds
What Is a Sovereign Credit Rating? A sovereign credit rating is an independent assessment of the creditworthiness of a country or sovereign entity. Sovereign credit ratings can give investors insights into the level of risk associated with investing in the debt of a particular country, including any political risk. At the request of the country
