What Is a Sector Breakdown? A sector breakdown is the mix of sectors within a fund or portfolio, typically expressed as a portfolio percentage. Sector designations can vary depending on the fund’s investment criteria and overall objective. Key Takeaways The sector breakdown of a portfolio shows how much asset weights are allocated to what industry sectors.Sectors typically
What Is a Sector Fund? A sector fund is an investment fund that invests solely in businesses that operate in a particular industry or sector of the economy. Sector funds are commonly structured as mutual funds or exchange traded funds (ETFs). Key Takeaways A sector fund is an investment fund that invests in one type
What Is Secular? In finance, secular is a descriptive word used to refer to market activities that occur over the long term. Secular can also point to specific stocks or stock sectors unaffected by short-term trends. Secular trends are not seasonal or cyclical. Instead, they remain consistent over time. Key Takeaways Secular refers to market activities that unfold over
What Is a Secured Credit Card? A secured credit card is a type of credit card that is backed by a cash deposit from the cardholder. This deposit acts as collateral on the account, providing the card issuer with security in case the cardholder can’t make payments. With a secured credit card, the amount that
What Is a Secured Creditor? A secured creditor is any creditor or lender associated with an issuance of a credit product that is backed by collateral. Secured credit products are backed by collateral. In the case of a secured loan, collateral refers to assets that are pledged as security for the repayment of that loan.
What Is Secured Debt? Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the bank seizes the collateral, sells it, and uses the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered as
What Is a Secured Note? A secured note is a type of loan or corporate bond that is backed by the borrower’s assets as a form of collateral. If a borrower defaults on a secured note, the assets pledged as collateral can be sold to repay the note. While secured notes are commonly used to
What Is the Securities Act of 1933? The Securities Act of 1933 was created and passed into law to protect investors after the stock market crash of 1929. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and to establish laws against misrepresentation
What Is Securities-Based Lending? The term securities-based lending (SBL) refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital that can be used for almost any purpose such as buying real estate, purchasing property like jewelry or a sports car, or investing in a business. The only restrictions to
What Is Securities Fraud? Securities fraud, also referred to as stock or investment fraud, is a type of serious white-collar crime that can be committed in a variety of forms but primarily involves misrepresenting information investors use to make decisions. The perpetrator of the fraud can be an individual, such as a stockbroker. Or, it can be
