Legal investment refers to safe and permissible investment options for investors who have fiduciary responsibilities to their clients or beneficiaries. These investments must meet specific legal standards, ensuring the safety and reliability of the investments.
The risk-free rate or risk-free return represents the interest rate on the safest investments, such as federal government obligations. It is a fundamental component in financial models, particularly in assessing the required return on investments.
Widow-and-orphan stock refers to a type of stock that is known for paying high dividends and being extremely safe, offering stability especially through non-cyclical business operations.
