What Is a Defective Title? The term “defective title” refers to an impaired title on a piece of property or other asset. The defect or impairment on the title can be in the form of a lien, mortgage, judgment, or other type of encumbrance. Because other parties can lay claim to the property or asset
What Is a Defensive Company? A defensive company is a corporation whose sales and earnings remain relatively stable during both economic upturns and downturns. Defensive companies tend to make products or services that are essential to consumers. These products are likely to be purchased whether the economy is booming or in a recession. Defensive firms
What Is the Defensive Interval Ratio (DIR)? The defensive interval ratio (DIR), also called the defensive interval period (DIP) or basic defense interval (BDI), is a financial metric that indicates the number of days that a company can operate without needing to access noncurrent assets, long-term assets whose full value cannot be obtained within the
What Is a Defensive Stock? A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market. There is a constant demand for their products, so defensive stocks tend to be more stable during the various phases of the business cycle. Defensive stocks should not
What Is a Deferred Annuity? A deferred annuity is a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date. Investors often use deferred annuities to supplement their other retirement income, such as Social Security. Deferred annuities differ from immediate annuities, which begin
What Is a Debt Tender Offer? A debt tender offer is when a company retires all or a portion of its outstanding bonds or other debt securities. This is accomplished by making an offer to its debt holders to repurchase a predetermined number of bonds at a specified price and during a set period of
What Is the Debt-to-Limit Ratio? The debt-to-limit ratio is a metric used to assess the creditworthiness of a borrower. It is calculated by dividing the borrower’s total outstanding debts by the combined credit limits of their loans. For example, a borrower with $5,000 of debt and a credit limit of $10,000 would have a debt-to-limit
What Is a Deceased Account? A deceased account is a bank account, such as a savings or checking account, owned by a deceased person. When a bank receives notice that a customer has died, it will freeze the account(s) while waiting for direction from the authorized court regarding payment to heirs and creditors. Key Takeaways
What Is a Deceased Alert? A deceased alert is a notification that makes credit card companies, credit rating agencies, and other financial institutions aware that a person has died. These notices are critical for the fight against identity theft, since would-be thieves often attempt to secure new loans using deceased persons’ personal information. Key Takeaways:
What Is a Decedent? “Decedent” is a legal term used in tax and estate planning for a deceased person. When an individual dies, their possessions become part of their estate, and they are denoted as decedent or deceased. The legal will of a decedent defines the final transactions of their estate. Key Takeaways “Decedent” is a legal term used
