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Shareholders can reinvest dividends they receive into more shares without any fees in this type of program offered by publicly-held companies. The company directly issues the resulting stock purchased.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Shareholders can reinvest dividends they receive into more shares without any fees in this type of program offered by publicly-held companies. The company directly issues the resulting stock purchased.
A guaranteed contract with fixed returns and time period. Any returns made after the time agreed to are not given to the investor.
A market with a few buyers who control the price paid.
The convexity of an option after its adjusted to the embedded options.
Temporarily paying off all commercial debt creating extra swingline availability.
Rules limiting tax deductions and income that go untaxed. This is limited by passive source earnings.
A bond that converts its assets into negotiable securities. The assets remain on the balance sheet but are reserved for investors in the event of default.
Combining non related securites to ensure more profit. Refer to diversification, diversifiable risk, nondiversifiable risk, and portfolio theory.
The 90 days before bankruptcy. Refer to preference.
The main insurer on a policy. Refer to apportionment, divided cover, overlapping insurance, and pro rata.
A subsidiary company that writes special risk insurance for their parent company or group.
Relationships used to decide option prices that must remain to prevent arbitrage conditions. The sum price of the call option and strike price. This price must equal the sum of the put
Assets in a bank exposed to interest rate changes. Refer to asset liability management and ratesensitive liabilities.
Reactivating insurance cancelled due to nonpayment. The insurance company has the right to charge a higher premium.
An insurance policy that covers existing and incurred but not yet reported losses up to a dollar amount. Refer to loss portfolio transfer and retrospective finite policy.
When a lender gives monthly payments to a borrower using their property equity. This is usually done by elderly homeowners resulting in the borrower eventually owning the home.
A decision guided by cost/benefit analysis made by a firm to control, retain, eliminate, or expand its risks. Refer to risk identification, risk monitoring, and risk quantification.
Presentations organized by a firm introducing a new issue of securities to possible investors. AKA dog and pony show.
The attempt of a takeover target to make itself look undesirable by threatening to liquidate or destroy assets in the event of a hostile takeover. Refer to crown jewel defense, dead hand
Liquidating a loan or derivative when a payment is not recieved. This causes contract or loan cancellation.
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