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Investment letter |
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Investment letterA letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.Investment letter Similar MatchesInvestment Company with Variable CapitalInvestment Company with Variable CapitalAn open-ended collective investment vehicle, similar to a unit trust. As with unit trusts, the money invested by savers is pooled, and then invested in the markets by professional fund managers appointed by the ICVC. The advantage to savers is that by putting their savings together with savings of other individuals, they get the benefits of diversification, and also of professional fund management. The difference between an ICVC and a unit trust is that an ICVC is a company rather than a trust. If you put savings into it, you have shares, not units. Also, an ICVC has just one price, whether you are buying or selling shares in it, with charges shown separately. Investment Valuation Model (IVM)Investment Valuation Model (IVM)The basic mathematical technique of finance that calculates the value of an investment as the present value of all future cash flows expected to be generated by the investment. Community Reinvestment Act (CRA)Community Reinvestment Act (CRA)Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Protected investment productsProtected investment productsProtected Investment Products, or 'PIPs' are designed to give you a guaranteed return on your investment but at the same time to give you the opportunity to benefit from rises in the stock market. The 'protected' return might, for instance, be 4.5% per year fixed for 5 years. Even if the product's underlying index performs badly, you will receive that return. If the index performs better than the minimum return, you get a bonus payment at the end of the period. The PIPs offered by financial institutions vary according to the level of protected return, the underlying index, the terms of the bonus, and the duration of the investment. Some aim for 'safety first'; others are geared towards greater upside. In general, though, they will appeal to medium term investor who want to avoid being completely exposed to the gyrations of the stock market. Foreign investment argument for protectionForeign investment argument for protectionThe use of protection to attract FDI from abroad. It does work, since much FDI has been motivated by firms trying to get behind a tariff wall to sell their products. In an otherwise nondistorted economy, however, the cost in terms of more expensive goods is higher than the benefit from additional capital. Further SuggestionsInvestment bankUnamortized premiums on investments Real Estate Investment Trust (REIT) split capital investment trust Overinvestment Underinvestment problem Investment Company Institute (ICI) Multilateral Investment Guarantee Agency (MIGA) Zero investment portfolio Investment opportunity set Statutory investment Investment management Portfolio investment Trade and investment Mutually exclusive investment decisions Investment company ethical investment alternative investment Investment climate Reinvestment rate Value Line investment survey real estate investment trust Normal investment practice Investment advisory service Personal Investment Authority |
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