finance

Testing-the-waters generally means to explore the feasibility of something prior to committing or moving forward. 

A tontine is an investment plan in which participants contribute to a common fund and receive annuities or dividends based on their share in the pool.

“Too big to fail” refers to an entity so important to a financial system that a government would not allow it to go bankrupt due to the seriousness of the economic repercussions. For example, the 2008 Emergency Economic Stabilization Act provided bailout funds for Wall Street banks and U.S. automakers, the financial health of which were considered essential to the United States economy. 

Treasury bills are one of three main securities issued by the U.S. federal government. A person can buy a treasury bill for a couple months to as little as four weeks. Treasury bills, along with other treasury securities, are regarded as one of the safest investments in the world because the full faith and credit of the U.S. government, which guarantees that interest and principal payments will be paid on time.

Treasury bonds are one of three main securities issued by the U.S. federal government. A person can buy a treasury bond for 20 or 30 years. Given their high demand and safety, treasury bonds produce low interest rates. The owner receives interest payments every six months and the face value upon maturity. A person can buy bonds by bidding at a government auction, using a third-party like a bank, or buying already issued bonds at a resale market. 

Treasury notes are one of three main securities issued by the U.S. federal government. A person can buy a treasury note for 2, 3, 5, 7, or 10 years. Given their high demand and safety, treasury notes produce low interest rates. The owner receives interest payments every six months and the face value upon maturity.

Treasury stock is a type of stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.

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Uncommitted credit facilities are short-term credit facilities which are subject to the discretion of both the borrower and the lender. That is, the lender has no obligation to extend credit to the borrower, and the borrower has no obligation to borrow from the facility and can terminate it at any time.

To underwrite is to assume financial risk in exchange for a fee, typically by agreeing to cover potential losses or provide funding in certain transactions. The term applies across a range of financial sectors and generally refers to the process of evaluating, pricing, and assuming risk with the expectation of earning a return.

Unearned income is money received from sources other than employment or business activities, such as interest, dividends, capital gains, or any income not