What is Trust Preferred Securities ?

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Trust Preferred Securities (TruPS) are a hybrid financial instrument that combines characteristics of both debt and equity. Typically issued by a trust established by a company, this trust raises funds by issuing preferred stock or bonds and then loans the raised funds to the parent company. The parent company uses this as a financing mechanism and makes regular interest or dividend payments. Holders of Trust Preferred Securities usually enjoy fixed dividend payment rights and have priority over common stockholders in the event of company bankruptcy.Key characteristics include:Hybrid Instrument: Combines features of both bonds and stocks, providing fixed interest or dividend payments along with equity characteristics.Tax Benefits: The company can often deduct interest or dividend payments as pre-tax expenses, enjoying tax advantages.Priority in Bankruptcy: In the event of company liquidation, TruPS holders have priority over common stockholders but are subordinate to the company's creditors.Long-Term Investment: Typically has a long maturity period or may be perpetual securities.Example of Trust Preferred Securities application:A bank sets up a trust to raise long-term funds and issues $100 million in Trust Preferred Securities through this trust. Investors purchase these securities and receive fixed dividends regularly from the trust. The trust loans the raised funds to the parent company (the bank), which uses the funds for business expansion and other investments.

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Gravestone Doji

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Nominal Yield

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Nominal Rate Of Return

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Book Value Per Common Share

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Buy Stop Order

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Mosaic Theory

The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.