Investment horizon and Ratification: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
''Investment.''
1. ''International law''.


The investment horizon is the length of time for which an investor plans to hold an investment.
Approval of an international treaty by the relevant head of state, or the head of state and the legislature, when necessary to bring the treaty into force.


Depending on their different investment horizons, different investors may regard the same investment asset as having different levels of risk in the context of their differing investment strategies.
Most international treaties state expressly whether or not ratification is required, to make them effective.




:<span style="color:#4B0082">'''''Term premia: models and some stylised facts'''''</span>
2. ''Contract law - agency.''


:"... long-term interest rates can be broken out into a part that reflects the expected path of short-term interest rates and a term premium.
Confirmation or adoption of an act, where necessary for it to have legal effect.


:... the latter part represents the compensation, or risk premium, that risk-averse investors demand for holding long-term bonds.  
For example, if an agent - without authority - forms a contract with a third party, the principal can ratify and adopt the contract, making it fully effective and enforceable.


:This compensation arises because the return earned over the short term from holding a long-term bond is risky, whereas it is certain in the short term for a bond that matures over the same short investment horizon.


:While some types of investor, such as pension funds, may consider long-term bonds less risky given their long-term liabilities, most other investors would tend to view them as more risky."
3. ''Company law - sanctioning minor irregularities.''


:''Bank for International Settlements, Quarterly Review, September 2018.''
In the case of minor irregularities in running a company, a general meeting can pass a resolution to sanction the irregularity.


Major irregularities cannot be sanctioned in this way, for example ''ultra vires'' acts, or a fraud on the minority.


== See also ==
* [[Bank for International Settlements]]
* [[Bond]]
* [[Day trading]]
* [[High frequency trading]]
* [[Holding period return]]
* [[Holding period yield]]
* [[Horizon scanning]]
* [[Liquidity Fund]]
* [[Investment]]
* [[Pension fund]]
* [[Premium]]
* [[Return]]
* [[Rising yield curve]]
* [[Term premium]]
* [[Ultra short duration bond fund]]
* [[Yield]]
* [[Yield curve]]


[[Category:The_business_context]]
''Source: Oxford Dictionary of Law, 8th Edition''
 
 
==See also==
*[[Agent]]
*[[Company law]]
*[[Comprehensive and Progressive Agreement for Trans-Pacific Partnership]]
*[[Contract]]
*[[Fraud on the minority]]
*[[Free trade agreement]]
*[[General meeting]]
*[[International law]]
*[[International trade]]
*[[Law]]
*[[Legislature]]
*[[Resolution]]
*[[Sanction]]
* [[Treaty]]
*[[Ultra vires]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Manage_risks]]

Latest revision as of 13:32, 18 July 2022

1. International law.

Approval of an international treaty by the relevant head of state, or the head of state and the legislature, when necessary to bring the treaty into force.

Most international treaties state expressly whether or not ratification is required, to make them effective.


2. Contract law - agency.

Confirmation or adoption of an act, where necessary for it to have legal effect.

For example, if an agent - without authority - forms a contract with a third party, the principal can ratify and adopt the contract, making it fully effective and enforceable.


3. Company law - sanctioning minor irregularities.

In the case of minor irregularities in running a company, a general meeting can pass a resolution to sanction the irregularity.

Major irregularities cannot be sanctioned in this way, for example ultra vires acts, or a fraud on the minority.


Source: Oxford Dictionary of Law, 8th Edition


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Investment_horizon&oldid=39994’