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

Category: Finance Dictionary

TEARUP PRICE

The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.

TICK VALUE

The value of a derivative contract at single price increment.

TOM NEXT

When a transaction on the foreign exchange or money market that is processed the next day. AKA dealing over tomorrow and rollover.

TRIGGER

An event that sends up a warning to an investor to buy or sell.

UNDERPERFORMANCE OPTION

An option that can be paid off if the reference asset underperforms against a strike price. Refer to outperformance spread and spread option.

UPSTAIRS MARKET

Trades done between brokers that do not enter the exchange. The prices must be fair. Refer to crossed trade.

VORSTAND

A german corporation’s management board. Refer to aufsichtsrat.

WHITE SQUIRE

A friendly company that takes partial control of a company. Refer to black, gray, and white knights.

ZOMBIE

A company that is insolvent but continues to operate. This is done before restructuring or a bail out occur.

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.

KNOWLEDGE BASE

Concepts, data, objectives, requirements, rules, and specifications as an organized knowledge repository. Typically this is a computer system, less often, an organization. It can be (1) a retrieval either as an expert

LABELING

Identifying information on packaging about its contents, on a container holding several packages, or the product itself. Relevant safety and shipping laws govern the type and quantity of information that must exist

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