The distribution waterfall determines the order in which the profits from pooled investments are distributed to the investors in the pool.
It is often used in the context of hedge funds or private equity funds.
As a rule, the cascading distribution schedule consists of four levels: return of capital; preferred return; catch-up tranche; and bear interest.
There are two common types of waterfall structures: American, which favors the investment manager; and European, which is more favorable for investors.
Venture financing is financing provided to companies and entrepreneurs. It can be provided at different stages of their development, although it often includes early and seed funding.
The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA).
A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
Dark pools are private asset exchanges designed to provide additional liquidity and anonymity when trading large blocks of securities away from prying eyes.