Underlying Investment

Business / Taxes / Underlying Investment: The investments a variable annuity’s separate account fund, a mutual fund, or other fund makes are considered the fund’s underlying investments. The value of a single share or unit of the fund is based on the combined value of all of its underlying investments, minus fees and expenses, divided by the number of outstanding shares or units. In some cases, when the item underlying a derivative investment is a security, such as the individual stock underlying an equity options contract, it is also called an underlying investment. However, when the underlying item is a consumable commodity, such as corn, or a financial product, such as an equity index, it is called the underlying product, the underlying instrument, or sometimes simply the underlying.

Underlying Instrument

Business / Taxes / Underlying Instrument: An underlying instrument is a security, such as a stock, a commodity, or other type of financial product, such as a stock index, whose value determines the value of a derivative investment or product. MORE

Program-Related Investment

Business / Loan / Program-Related Investment: Broad, functional definition: A method of providing support to an organization, consistent with program goals involving the potential return of capital within an established time frame. In the context MORE

Real Estate Investment Trust (REIT)

Business / Finance / Real Estate Investment Trust (REIT): REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund. MORE

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