RISK AVERSION
A conservative view to investing when a party avoids risk believing the overall protection is worth the long term wait.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
A conservative view to investing when a party avoids risk believing the overall protection is worth the long term wait.
The stability of a firms portfolio in regards to how much risk it can withstand.
A bond issued by a foreign company using the yen as currency in the market in Japan. Refer to daimyo, geisha, shibosai, and shogun.
A secular firm with the ability to regulate and standardize the industry by providing ethical rules.
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.
Currency that was brought about in 1970 to supplement national reserves and maintain foreign exchange market stability. This is a convertible currency.
Anyone with that has a legal, financial or social interest in a company such as shareholders, managers, suppliers, directors, government, employees and the community. Refer to direct stakeholders and indirect stakeholders.
Purchasing or selling options with the same maturity date but different strike prices taking advantage of market volatility. Refer to straddle.
Reinsurance where the reinsurer only assumes loss beyond established retentions.
Accepting a sellers price. Refer to hit the bid.
Expected exposure of a derivative based on an underlying market reference. Refer to average expected, average worstcase, and terminal worstcase exposures.
The remaining value of a contract attributed to time. The value declines daily. Refer to theta and time decay.
Loss that occurs when a foreign exchange currency is turned into the home countries monetary unit. It is reflected in an equity account. AKA currency translation risk. Refer to transaction risk.
When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.
A fund where investors place capital for earning assets. They recieve the percentage they put in it in returns. It is managed by a third party. Refer to mutual fund.
Funds invested in new high risk opportunities. This is done in exchange for preinitial public equity stake. Most technology and biotechnology get their starts here. Refer to down round and mezzanine financing.
Physical barrels delivered rather than financially settled. It is used in refining and supply trades.
A note issued in US dollars by a foreign company in the market.
Financing accounts recievable. It can be maturity factoring, finance factoring, discount factoring, or undisclosed factoring. Refer to discounting of accounts reveivable and forfaiting.