When a broker or dealer is selling securities in reliance on Rule 144A, it is subject to the condition that it may not make offers to persons other than those it reasonably believes to be QIBs.A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these … [Read more...]
Qualified Institutional Buyer – QIB
A Qualified Institutional Buyer (or QIB), in law and finance, is a purchaser of securities that is deemed financially sophisticated and is legally recognized by security market regulators to need less protection from issuers than most public investors. Typically, the qualifications for this designation are based on an investor's total assets under management as well as specific … [Read more...]
What do you mean by Tax Shield?
A reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization and depreciation. These deductions reduce taxpayers' taxable income for a given year or defer income taxes into future years.A tax shield is the reduction in income taxes that results from … [Read more...]
High Net Worth Individual – HNWI
A classification used by the financial services industry to denote an individual or a family with high net worth. Although there is no precise definition of how rich somebody must be to fit into this category, high net worth is generally quoted in terms of liquid assets over a certain figure. The exact amount differs by financial institution and region. The categorization is … [Read more...]
What is a Form 1078?
An official document issued by the Internal Revenue Service (IRS) permitting the undersigned to claim residency within the U.S. for income tax reporting purposes. The form is officially called a "Certificate of Alien Claiming Residence in the United States", and will make the undersigned's total income subject to the tax laws of the United States for the tax period … [Read more...]