SPECIAL MEMORANDUM ACCOUNT Definition

Bookmark and Share

SPECIAL MEMORANDUM ACCOUNT (SMA) is a sub-account of a margin account for excess equity. It can be withdrawn or used to buy more securities.

Learn new Accounting Terms

LEVERAGED BUY-OUT (LBO) is a transaction used for taking a public corporation private, financed through the use of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an LBO through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund that specializes in such investments.

INDUSTRY is the people or companies engaged in a particular kind of commercial enterprise.

Suggest a Term

Enter Search Term

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