Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
A continuous factors’ series suffering abrupt, disconnected interruptions. These changes affect value distribution all along the continuum, often skipping values in an upward or downward direction. Also refer to Joseph Effect, anti-persistence,
A dealer who does not expose his trading to the market and just gives it to his clients. This is illegal.
An agreement clause between an owner and a prospective buyer to suspend all other purchase negotiations for a stated time period. In other words, the seller agrees to stop seeking other acquisition
When floor traders agree on terms by communication or hand signals.
How markets measure over buying and selling.
A swap made only in paper form. Or trade in the paper products line.
The amount of earnings paid to stockholders over the investments lifetime. This payment takes the form of common stock dividends. Refer to dividend yield and plowback ratio.
The amount of capital reinvested that are not paid to shareholders in the form of dividends.
When option purchases expose an investment to a larger price market. Refer to gamma and negative gamma.
The amount an insurer underwrites based on its premiums collected on active policies.
When an insurer must take their share of the losses based on a fixed or variable percentage or monetary value. Refer to excess of loss agreement.
An option where the buyer can sell underlying call option back to the seller. Refer to call on a call, call on a put, and put on a put.
a trust wherein the employee is not taxed because the plan’s assets can be claimed by creditors. This name is used because the first of these type of trusts was set up
Cancelling insurance due to fraud or misrepresentation.
Rebuying securities for cash value. Essentially money is borrowed, collateralized, and a repo rate is charged. AKA repo. Refer to dollar role, general collateral, gensaki, open repo, overnight repo, special, and term
The time a stock currency or commodity is held in order to produce profit when sold.
Named to illustrate an attempt of fleeing to Rio if this strategy fails, it is an attempt to reverse losses by executing a large and risky trade.
The attempt to reduce financial and operating risk by withdrawal from high risk ventures of risk pooling resulting in diversification. Refer to loss control and loss financing.
A securities order typically carrying lower returns or charges than odd lots that are traded in the standard size in accordance with the market.
When an entire industries, such as automobile manufacturers volatility is reflected in an over the counter or exchange trade.