PIERCING THE CORPORATE VEIL
When shareholders must pay losses from their personal assets. Refer to limited liability.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
When shareholders must pay losses from their personal assets. Refer to limited liability.
Risk caused by adverse movements in the market. It is preventable by diversifying. Refer to correlation and correlation risk.
A security that pays investors periodic dividends but does not allow them board vote. There are many forms of this stock.
An investment that comes from a private not corporate investor. The investor usually exits at the first public sale.
An insurer owned by a single company. They write insurance for that company only. While easy to manage it may be more risky. AKA single parent captive. Refer to agency captive, captive,
The amount of a firms most liquid assets. They include stock, cash, accounts recievable, and securities. It is a measure of the current assets minus inventory. Refer to quick ratio.
An option spread that creates profit from volatile circumstances. A small amount of closertothemoney options are bought than fartherfromthemoney options. Refer to backspread.
When a loan is rewritten to prevent foreclosure. This can be an extension, lowered interest, or a change in repayment schedule. AKA rescheduling or soft loan.
The adjustment of insurance premium rates based on the losses incurred over the current year.
When a firm reduces its outstanding shares in an attempt to increase their value. They offer half the amount of shares at twice the price per share making the stock appear more
Loss control, loss financing, and risk reduction methods used to manage risks.
The closing of an option to obtain a longer maturity term. Refer to roll down and roll up.
A New York Stock Exchange membership that enables an agent to trade on the floor on their won behalf or for a client. This membership is transferable.
The collection of payments, particularly mortgage payments, by a trustee or servicing agent from a financial institution.
Maturity dates of less than three years on a yield curve. Refer to belly of the curve and long end.
Capital stock with less than 1 billion market capitalization. Refer to ankle biter large cap stock micro stock and mid cap stock.
When the difference between two assets and a strike price are used to pay off debt or loss. AKA difference, outperformance, and underperformance options. Refer to multi index option and yield curve
A calculation of premiums less expenses and losses to determine profitability of a company.
A firm expecting underlying assets when an exchangetrade derivative contract expires. Refer to weak hands.
When a syndicate arrange the obligations of a loan between its members. There are primary and secondary offerings.