PAC MAN DEFENSE
When a counterbid is placed to prevent hostile takeover.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
When a counterbid is placed to prevent hostile takeover.
An option whose payment depends on the price path of the asset at another time. There are many types of this option. Refer to path independant option.
The records used to report securities and penny stocks. Before the internet it was recorded on pink paper.
A strategy that hold a long or short position for a week to several months. It is used in the short term but has a better chance than momentum trading.
When an insurer can write a large amount of policies on one line or risk.
The potential a company will file for bankruptcy. It is used to calculate the default in default models.
The amount an insurer needs to cover their expenses. Along with premium loading it is used to calculate fair premium. Refer to expense loading.
When a company cannot share any news because it is registering a new issue.
The difference between average bids and offers over a period of time. Refer to effective and quoted spreads.
The second sale offering of securities under the existing issue. This helps raise benchmarks by grouping more liquidity in a smaller amount of issues.
An insurance policy with a premium that is based on the previous year
The purchase of goods or services by a bank or investment bank in exchange for lucrative feebased new issue or corporate finance mandates. Refer to tying.
A firms formal take on corporate goals, activities, and stakeholders expectations regarding risk activities. Refer to risk tolerance.
Gaining capital by purchasing and holding longterm bonds in the event of declining yields. AKA riding the curve.
New securities offered after a company has made it’s inaugural primary offering with the capital raised usually going towards refinancing or capital growth. Refer to addon.
In the event a fraud is committed per a poorly written term of an insurance policy this clause protects the insurer from having to make a settlement payment. Legal fees and judgments
A position this is borrowed or sold that benefits from depreciation. When repurchased in the market profit is made. AKA short. Refer to long position, naked short, short sale, and short seller.
An attempt to circumvent economic recession identified by excess demand and increasing inflation made by a central bank or other monetary authority. Under certain circumstances such as when fiscal policy or monetary
An illusion of an earnings boost when a company
An attempt by an investor to increase their number of outstanding shares and reduce the par value of their common stock lowering the purchase price to attract investors. Refer to reverse stock