PAIRED SHARES
Stock shared by two companies on one certificate.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Stock shared by two companies on one certificate.
A security that pays out in other securities not cash. This occurs when a company is short on cash but has plenty of securites. Refer to reset in kind payment bonds.
The flow a deal makes through clients, banks, and firms. It shows how strong the financial sector is. AKA calendar and visible supply. Refer to shadow supply.
When an asset has higher gains than losses. An example of these are long options and bonds. Refer to negative convexity, nonlinear instrument, and positive gamma.
A swap where the receiver getting a fixed interest rates offers a payment to get increased fixed interest rates. Refer to discount swap.
Evidence proving loss that must be submitted to the insurer. It proves the claim is valid.
An option where the buyer can sell underlying put option back to the seller. Refer to call on a call, put on a call, and call on a put.
When dealers give prices to traders who sell them. The price takes into consideration the supply and demand on the market. Refer to dealer and orderdriven market.
When insured parties group together to protect one another. New members are sought to prevent loss. AKA recriprocal insurance exchange.
The chance that an asset will be reinvested at a less than favorable rate. This can cause great loss. AKA refinancing risk or reinvestment risk. Refer to negative gap, positive gap, ratesensitive
A formula used to determine profit made by an investment or to compare several investments to determine which ones generate the most capital.
Giving existing shareholders an opportunity to purchase new stock at current prices with the remaining available stock being sold in the open market at the future rate. AKA privileged subscription issue and
The process of estimating the impact of financial and operating risks on a firm using formulas, statistics, and actuarial techniques. Refer to risk identification and risk management.
When a repurchase agreement, revolving credit facility, evergreen deposit, commercial paper, account payable, or not is renewed or reissued as it comes due providing continued funding for the debtor.
Very liquid funds in excess of those required to be held as an emergency buffer.
A computation of the expected potential of loss to determine premium rates.
An individual that encourages a short sale. This is done assuming the price will decline.
When excess risk capacity lowers premiums. This causes an expansion of business due to a more affordable premium rate. The extra capital is used to cover the new risk. Refer to hard
When investors sell commodities that suddenly increase in price leading to distorted prices. Refer to short squeeze.
Selling securities once a determined price level is obtained to protect an investor