CUSTODIAN BANK Definition

Bookmark and Share

CUSTODIAN BANK is the bank that acts a custodian to a mutual fund. Does not manage anything, just holds the cash and securities and does the clerical.

Learn new Accounting Terms

INVESTMENT GRADE, in securities, is a high credit rating indicating bonds generally considered to have the strongest possi­bility of paying interest and repaying principal when due. Standard & Poor's Corporation considers invest­ment grade bonds to be those it rates from AAA through BBB. Moody's considers investment grade to be from AAA to Baa3. Below investment grade bonds also are known as high yield or junk bonds. The NAIC designates investment grade bonds with the numerical rating of "I" or "2".

LEASEHOLD is an agreement between the lessee and lessor specifying the lessees rights to use the leased property for a specific purpose and given time at a specified rental payment.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.