Investment
Glossary

  • An investment approach where managers actively buy and sell assets (such as stocks and mutual funds) to achieve better returns than a specific benchmark or index.

  • A strategy focused on matching the performance of an index rather than outperforming it. Passive investments typically involve index funds, where assets are held long-term without frequent trading.

Investor
Glossary

  • An individual with a minimum of $1 million in net financial assets. These investors are subject to fewer disclosure requirements and may access a wider range of investment opportunities, such as stocks, bonds, and cash-based investments.

  • Investors who meet a lower financial threshold, with a net worth of $400,000 (inclusive of home equity) or an annual income of $75,000 ($125,000 when combined with a spouse). Eligible investors require access to an offering memorandum.

  • An individual possessing over $5 million in net financial assets or $25 million in equity. These investors are considered sophisticated and may waive suitability requirements.

  • Investors who do not meet the financial criteria of accredited, eligible, or permitted investors. They may invest up to a maximum of $10,000 in select investment offerings.

Financial
Glossary

  • The total value of an individual’s financial assets (such as stocks, bonds, and cash) excluding any debt or liabilities, often used to determine investor eligibility for certain opportunities.

  • The total value of all assets (including property, cash, and investments) minus all liabilities or debts. It serves as a measure of overall financial health.

  • A regulatory allowance that enables certain securities to be offered to investors without a formal prospectus, typically applicable to accredited or eligible investors.

  • A provision allowing certain securities to be sold without an investing dealer, typically targeting specific investor types who meet defined financial criteria.

  • A legal document an investor signs to formalize their intention to purchase shares in a private offering. It outlines the terms of the investment and the responsibilities of both the investor and the issuing company.

  • A document outlining essential details about an investment opportunity, including risks, terms, conditions, and all material facts necessary to make informed investment decisions. It is designed for potential investors who may not receive a full prospectus and is often required to determine eligibility for purchasing private placements.

  • The process of assessing whether a particular investment aligns with an investor’s financial goals, risk tolerance, time horizon, liquity needs and overall strategy portfolio.

  • The ease with which an asset can be converted to cash without affecting its market price. Highly liquid assets include stocks and bonds, while less liquid assets include real estate or private equity investments.

  • Fees paid to brokers or financial advisors for facilitating a transaction, often a percentage of the transaction value.

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Whether you’re an investor looking to enhance your portfolio, a dealer seeking a better platform, or an issuer aiming to raise capital more efficiently, we’re here to help. Reach out to our team to learn more about how Waverley can support your financial goals.