Legal Articles

A securities eschange rule governing the repurchase of treasury stock providing protection from liability when the firm acts in good faith in how and when the purchase is made and how much stock is purchased at a given price.

Very liquid funds in excess of those required to be held as an emergency buffer.

When brokers sell products from another firm illegaly. The client will not have any recourse against the originating company.

A foreign company using the yen to make a transaction in Japan. Refer to daimyo, geisha, samurai, and shogun.

A bill that must be paid to the hold when presented.

When excess risk capacity lowers premiums. This causes an expansion of business due to a more affordable premium rate. The extra capital is used to cover the new risk. Refer to hard market.

The value of an asset at the present time in the market. AKA cash market. Refer to forward market.

An extra charge placed on certain legal documents by purchasing a stamp to be placed on said document.

The buying or selling of securities once it reaches the stop level as opposed to the traditional stop order when securities are bought or sold at the market price.

A model that exhibits the boundary level that would cause a default considering the value of a companies assets liabilities and capital. Refer to intensity model.

When an internal committee nominates a board to decide how a management board behaves. It is the first part of the dual board system.

A forward agreement to buy undrawn loans or credit agreements. The investor gets a commitment fee. AKA synthetic credit facility.