Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

STERILIZATION

The offset of foreign exchange market effects by increasing or decreasing the national money supply by a monetary authority such as a central bank. It is a manipulation of the value of

STUB

A contract with the closest maturity date on eurodollars or a loan or bond with a short maturity.

TEASER

A low interest rate or a high deposit rate used to entice investors. After several quarters the normal rates apply.

TIDE PROVISION

When directors evaluate their poison pill defences every three years.

TOMBSTONE

The report generated for a security at its maturation date. It shows the details of the transaction and the issuer.

TRIPLE TRIGGER

An insurance payout that happens if three specific triggers occur. The first one is related soley to an insurance risk while the second and third can be financial or insurance related. Refer

UNDERWATER

When an option is worthless. A market position that will result in loss if sold.

UPTICK RULE

A rule allowing short sale on plus tick or zero plus tick securities.

VOSTRO

Means your account. A local account held for a foreign interest. This helps the company do local currency business. Refer to nostro.

WHOLE LOAN

A mortgage sold with servicing rights to an investor. They are sometimes sold to conduits for securitization purposes.

INDEX FUTURE

A future contract exchanged in reference to a specific index sector, benchmark equity index, or equity basket. This is also called a commodity, currency, or interest rate future.

JUNIOR ISSUE

Stock (shares) classified as subordinate to others issued. Distribution of rights issue, dividend payment, and capital repayment must occur to the superior issues before the subordinate issues are satisfied. Also refer to

JUSTIFICATION AND APPROVAL

Documented contracting statement detailing why a noncompetitive contract award instead of open competition was selected.

KERBEROS

User authentication scheme for Open source (non-proprietary) and public domain (free). A client-server environment’s network security system. Named after Greek mythology’s fierce three-headed guard dog. At user login and every service request,

KEY TASK ANALYSIS

Typically employed in managerial or supervisory level employee training. Determining the level of performance required, time taken, quality of outcome, and total job or project quality by the study of a set

KILLER BEES

While being overcome in a hostile bidding war, a company receives a saving grace.

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