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VestBecome applicable or exercisable. A term mainly used on the context of employee stock ownership or option programs. Employees might be given equity in a firm but they must stay with the firm for a number of years before they are entitled to the full equity. This is a vesting provision. It provides incentive for the employee to perform.Vest Similar MatchesUnderinvestment problemUnderinvestment problemThe mirror image of the asset substitution problem, in that stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to debtholders. Zero investment portfolioZero investment portfolioA portfolio of zero net value established by buying and shorting component securities, usually in the context of an arbitrage strategy. Value investingValue investingValue investing is something of a misnomer in many ways as no-one would knowingly buy shares in a company unless they thought that the shares were good value. However, in investment circles it has come to mean the purchase of shares that look cheap according to particular criteria. Historically, this has meant the purchase of shares in companies which have low price earnings ratios (P/Es), a high level of asset backing, or high dividend yields, or a mixture of all three. As such it is contrasted with growth investing, where the investor focuses only on the potential for future earnings growth and is prepared to pay much high P/E multiple.So the heart of value investing lies in comparing two figures:Current Market ValueMultiply the number of ordinary shares in issue by the current price of each share to produce the market capitalisation. You can look up the market capitalisation of a quoted company in the financial pages of most newspapers, and on many financial websites.Intrinsic Value of the CompanyThere is no single way of establishing what the value of a company should be. Instead, value investors use a number of different valuation techniques, based on asset values, dividends, earnings, cash flows and other financial criteria.When a value investor identifies a discrepancy between the Current Market Value and the Intrinsic Value (according to the criteria he chooses), and the first is lower than the second, he invests. When the gap between them closes, or reverses, he sells, and takes his profit. Email harvestingEmail harvestingAn automated process which uses a robot program to search the Internet for email addresses, collect them and add them to a database, often to be sold to email marketers (the practice is illegal in many states in the US). Nonaccredited investorNonaccredited investorWealthy, sophisticated investors who do not meet SEC net worth requirements. These investors require less protection because of large financial resources, but only 35 nonaccredited investor can be included per investment. Further Suggestionsinvestment businessReinvestment investment income Alternative Investment Market Foreign portfolio investment approved investment trust Value Line investment survey Investment advisory service Ethical Investment Research Service Investment manager fully invested Alternative investments Investment history Investor fallout Coattail investing Municipal Investment Trust (MIT) Real Estate Investment Trust (REIT) Bank Investment Contract (BIC) Regulated investment company Unit investment trust Association of Investment Trust Companies Investment Valuation Model (IVM) Systematic investment plan Investment letter local authority investment |
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