Financial Investigations Glossary
By: Bill E. Branscum
Copyright 2001


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.

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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.

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I welcome your comments, questions and suggestions.


 
 
 
© Copyright 2002 - Bill E. Branscum. All Rights Reserved.