Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Disinvestments
n. 1. The consumption of capital. 2. The withdrawal of investments, esp. on political grounds. - Also termed (in sense 2) divestment. - disinvest, vb.
Investment
1. An expenditure to acquire property or assets to produce revenue; a capital outlay.
Investment Advisors Act
A federal statute -administered by the Securities and Exchange Commission - that regulates investment advisers. 15 USCA §§ 80b-1 et seq.
Investment Company Act
A 1940 federal statute enacted to curb financial malpractices and abuses by regulating investment-company activities and transactions - specifically, by requiring registration of investment companies and prohibiting transactions by unregistered companies; by making certain persons ineligible as affiliated persons or underwriters; by regulating affiliations of directors, officers, and employees; by barring changes in investment policy without shareholder approval; and by regulating contracts of advisers and underwriters. 15 USCA §§ 80a-1 et seq.
Investment bank
a bank whose primary purpose is to acquire financing for businesses, esp. Through the sale of securities. ( an investment bank does not accept deposits and, apart from selling securities, does not deal with the public at large. See investment banker.
Overseas Private Investment Corporation.
A corporation created by the federal government to finance and insure overseas investments by U.S. companies. ( Chartered in 1969, the corporation is a for-profit entity that is not federally funded, but its insurance commitments are backed by the full faith and credit of the federal government. - Abbr. OPIC.
Reinvestment
1. The addition of interest earned on a monetary investment to the principal sum. 2. A second, additional, or repeated investment; esp., the application of dividends or other distributions toward the purchase of additional shares (as of a stock or a mutual fund).
Small Business Investment Act
A federal law, originally enacted in 1958, under which investment companies may be formed and licensed to supply long-term equity capital to small businesses. ( The statute is implemented by the Small Business Administration. 15 USCA §§ 661 et seq.
diversified investment company
See COMPANY.
dividend-reinvestment plan
A companysponsored program that enables common shareholders to reinvest their dividends, plus additional voluntary payments, into shares of the entity's common stock, usu. with no sales charge, and sometimes at a discount from the stock's market price.
fair return on investment
The usual or reasonable profit in a business, esp. a public utility.
fixed-dollar investment
An investment whose value is the same when sold as it was when purchased. ( Examples are bonds held to maturity, certain government securities, and savings accounts.
fixed-income investment
See INVESTMENT.
guaranteed investment contract
See INVESTMENT CONTRACT.
investment adviser
A person who, for pay, advises others, either directly or through publications or writings, about the value of securities or the advisability of investing in, purchasing, or selling securities, or who is in the business of issuing reports on securities. ( The term generally excludes an employee of an investment adviser; a depository institution, such as a bank; lawyers, accountants, engineers, and teachers whose investment advice is solely incidental to the practice of their profession; a broker-dealer whose advice is incidental to the conduct of business and who receives no special compensation for that advice; and publishers of bona fide newspapers, newsmagazines, or business or financial publications of general, regular, or paid circulation.
investment bank
See BANK.
investment banker
A person or institution that underwrites, sells, or assists in raising capital for businesses, esp. for new issues of stocks or bonds; a trader at an investment bank. See investment bank under BANK.
investment banking
The business of underwriting or selling securities; esp., the marketing of new stocks or bonds.
investment bill
See BILL (6).
investment bill.
A bill of exchange purchased at a discount and intended to be held to maturity as an investment.
investment company
A company formed to acquire and manage a portfolio of diverse assets by investing money collected from different sources. ( The Investment Company Act of 1940 defines the term as an issuer of securities that (1) is, holds itself out to be, or proposes to be engaged primarily in the business of investing, reinvesting, or trading in securities; (2) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in this business and has such a certificate outstanding; or (3) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40% of the value of the issuer's total assets (exclusive of government securities and cash items) on an unconsolidated basis. 15 USCA § 80a-2(a)(16). - Also termed investment trust. See REAL-ESTATE INVESTMENT TRUST; MUTUAL FUND.
investment contract
See INVESTMENT CONTRACT.
investment discretion
The ability of a person to (1) determine what will be purchased or sold by or for an account, (2) decide what will be purchased or sold by or for the account even though another may have the responsibility, or (3) influence the purchase or sale of securities or property in a way that, according to an administrative agency such as the Securities and Exchange Commission, should be subject to the agency's governing rules and regulations.
investment income
See unearned income (1) under INCOME.
investment income.
See unearned income.
investment indebtedness
Tax. Debt incurred by a taxpayer to acquire or carry assets that may produce income. ( The Internal Revenue Code limits the amount of deductible interest on this type of debt.
investment property
Any asset purchased to produce a profit, whether from income or resale.
investment security
An instrument issued in bearer or registered form as a type commonly recognized as a medium for investment and evidencing a share or other interest in the property or enterprise of the issuer.
investment tax credit
See TAX CREDIT.
investment trust
See investment company under COMPANY.
investment-grade bond
A bond with a rating of BBB or better by the leading bond rating services. See INVESTMENT-GRADE RATING.
investment-grade rating
Any of the top four symbols (AAA, AA, A, or BAA) given to a bond after an appraisal of its quality by a securitiesevaluation agency such as Moody's. ( The rating indicates the degree of risk in an investment in the bond.
legal investments
See LEGAL LIST.
net investment
See INVESTMENT.
passive investment income
See INCOME.
passive investment income.
Investment income that does not involve or require active participation, such as gross receipts from royalties, rental income, dividends, interest, annuities, and gains from the sale or exchange of securities. IRC (26 USCA) § 1362(d).
real-estate investment trust
See REAL-ESTATE INVESTMENT TRUST.
real-estate-mortgage investment conduit
An entity that holds a fixed pool of mortgages or mortgage-backed securities (such as collateralized mortgage obligations), issues interests in itself to investors, and receives favorable tax treatment by passing its income through to those investors. ( Real-estate-mortgage investment conduits were created by the Tax Reform Act of 1986. They can be organized as corporations, partnerships, or trusts. To qualify for tax-exempt status, the entity must meet two requirements: (1) almost all of the entity's assets must be real-estate mortgages (though a few other cash-flow-maintaining assets are allowed); and (2) all interests in the entity must be classified as either regular interests (which entitle the holder to principal and interest income through debt or equity) or residual interests (which provide contingent income). -Abbr. REMIC.
small-business investment company
A corporation created under state law to provide long-term equity capital to small businesses, as provided under the Small Business Investment Act and regulated by the Small Business Administration. 15 USCA §§ 661 et seq. - Abbr. SBIC.
umbrella partnership real-estate investment trust
A REIT that controls and holds most of its properties through an umbrella limited partnership, as a result of which the trust can acquire properties in exchange for the limited-partnership interests in the umbrella while triggering no immediate tax obligations for certain sellers. ( This is a structure that many REITs now use. - Abbr. UPREIT.
umbrella-partnership real-estate investment trust
See REAL-ESTATE INVESTMENT TRUST.
unit-investment trust
1. A trust in which funds are pooled and invested in incomeproducing securities. ( Units of the trust are sold to investors, who maintain an interest in the trust in proportion to their investment. 2. An investment company that gives a shareholder an undivided interest in a fixed pool of securities held by the trustee. ( This type of company can be organized in-several ways (as by trust indenture, contract of custodianship or agency, or similar instrument), but is most commonly organized with a trust indenture. Such a company does not have a board of directors and issues only redeemable securities, each of which represents an undivided interest in a unit of specified securities. 15 USCA § 80a-4. See investment company under COMPANY.
yield on investment
See YIELD.