This
is a glossary of terms that are, for the most part, unique
to the world of financial investigations, or terms that have
a different meaning than that which is commonly understood
when they are used in this context.
Joint Account:
An account that is owned jointly by two or more clients. Joint
accounts may be set up two ways.
Joint Account Agreement:
Form used to establish a joint account at a brokerage firm
or a bank. It must be signed by all account owners.
Joint and Survivor Annuity:
Annuity that makes payments for the lifetime of two or more
beneficiaries (frequently husband and wife). If one annuitant
passes away, payments continue to the survivor as specified
in the contract.
Joint Bond:
Bond that is guaranteed by a party other than the issuer or
has more than one obligator--also called "joint and several
bond". Prevalent use of joint bonds can be found when
a parent corporation wants to guarantee the bonds of a subsidiary.
Joint Tenancy (JT):
An account or ownership of property where there are two or
more owners. There are several types of joint tenancy. State
laws and the relationship between the owners will determine
the type of joint account one will want to establish.
Joint Tenants By Entirety:
Ownership of assets by a married couple where the husband
or wife automatically acquires the other's share upon death.
Joint Tenants In Common
(JTIC): Ownership of assets by two or more individuals.
A specific ownership percentage is assigned to each individual.
In the event of the death of one party, the deceased's interest
passes to their estate and not to the surviving tenant(s).
Joint Tenants with Right
of Survivorship (JTWROS): Ownership of assets by
two or more individuals where there is not specific fractional
financial interest. In the event of the death of one party,
the survivor(s) receives total ownership.
JT (Joint Tenancy):
An account or ownership of property where there are two or
more owners.
JTIC (Joint Tenants In
Common): Ownership of assets by two or more individuals.
A specific ownership percentage is assigned to each individual.
In the event of the death of one party, the deceased's interest
passes to their estate and not to the surviving tenant(s).
JTWROS (Joint Tenants
With Right Of Survivorship): Ownership of assets
by two or more individuals where there is not specific fractional
financial interest. In the event of the death of one party,
the survivor(s) receives total ownership.
Jumbo Certificate of
Deposit: Certificate with a minimum denomination
of $100,000.
Junior Issue:
Debt or equity issue of a corporation that is subordinate
in claim to another issue of the same corporation in regard
to dividends, interest, principal, or security in the event
of liquidation.
Junior Refunding:
The refinancing of government debt maturing in one to five
years by issuing new securities that mature in five or more
years.
Junior Securities:
Security that has a subordinate claim on assets to that of
a "senior security". For instance, a preferred stock
is junior to a debenture, but a debenture, being an unsecured
bond, is junior to all corporate securities.
Junk Bond: Bonds
that have little or no collateral or liquidation value and
are typically very risky. For this risk, they offer a high
rate of return. They are issued by corporations without sales
and earnings track records, or by those with questionable
credit. Moreover, in the 1980s, junk bonds were popular instruments
for corporate mergers and acquisitions. The bonds usually
have a credit rating of BB or lower. Because the term has
an unfavorable connotation, issuers and holders prefer the
bonds to be called "high yield bonds."
Justified Price: Fair
market price an educated buyer will pay for an asset.
I welcome
your comments,
questions and suggestions.
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