PREMIUM RAID
When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.
A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to another party. See, What Is a Promissory Note? A Legal Guide
A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.
The difference between the bid and offer amount. The transaction has not yet occured. Refer to effective and realized spread.
Restructuring a company to create more equity and reduce debt. The company may be solvent or filing for bankruptcy. Or reorganizing the voting abilities of stock. AKA deleveraging. Refer to dual class
When an asset is repurchased by a lender the borrower must pay this interest rate. It is usually lower than before since it is secured by collateral.
The total, unadjusted return generated for shareholders by a firm during an identified period of time. Refer to risk adjusted return on capital.
When a holding is at its highest price and a firm will benefit from selling it.
The higher payments made to a firm that invests in high risk ventures with the possibility of default. AKA risk margin. Refer to premium.
A risk reducing strategy that involves closing out nearby or next nearby derivative contracts and then repurchasing to push out the maturity date. AKA stack and roll. Refer to strip hedge.
A relatively rare form of stock that sits between prior preferred stock and common stock.
The completion of a transaction by a certain date. Refer to joint and several.
The sale of a short position. The market price will decline. Refer to short naked shorting.
When a bank is interested in establishing good relationships with its borrowers by offering loans with below market interest rates, long repayment periods, and repeated rescheduling or rollover of the principal.
The rule that states that a standard deviation of a market variable is in proportion to the square root of time.
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.
An asset secured loan usually having a low loan to value ratio given to a client with a poor credit history such as a delinquency or default. Refer to B & C
tables used to calculate finding for retirement benefits. Interest, as well as mortality rates, are factored in.
A public offer to buy stock in a takeover effort. The offer is made at a premium to make the sale attractive. Refer to twotier bid, hostile takeover, friendly takeover, takeover, and
A liquid market with large volume, strong two way flows, and a small spread. Refer to thin market.