PREPAYMENT
Early mortgage payment due to the sale of the home or refinancing to get a better interest rate. Refer to model and speed.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Early mortgage payment due to the sale of the home or refinancing to get a better interest rate. Refer to model and speed.
A captive where individual accounts called cells are used for selfinsurance. The cells are seperated by statute protecting them from loss. Refer to agency, group, pure, senior, sister and renta captive.
An option that pays the ending price if it is below strike price. Otherwise there is no payoff.
A hostile buyer who tries to buy another company. They usually strip assets or get greenmail payments. This was common in the 1980s but there are still buyers like this out there.
Regrouping principal and interest after it has been stripped. This creates arbitrage opportunities. This happens when longterm securities are split into zero coupon bonds. Refer to stripping.
Renegotiating a loan with new terms that help the debtor avoid foreclosure. Refer to renegotiated loan.
A loan given to a municipalities project that is repaid by revenue from the project itself such as a toll road. Refer to general obligation bond.
A bullish signal shown by charting rising prices and an increasing support level. Refer to ascending top, descending bottom, and falling top.
Preserving a portion of financial and/or operating risk as opposed to transferring or hedging. Refer to hedging, retention, group, risk transfer, and selfinsurance.
When an exchange traded derivative is bought and sold quickly.
The graphing of the relationship between the risk and the return of a specific investment at a specific time with the slope of the line indicating the market risk.
A measurement, through standard deviation, comparing a portfolio
Satisfying the offer to purchase all or some of a shareholders stock by borrowing common stock to pay for the tender offer.
The spread illustrating the difference between natural gas and electricity. The spread is bought while in positive margins and sold once the margins become negative. Refer to crack spread.
The trigger of a change from annual to staggered reelection of the director of a company by offering external tender as an antitakeover defense.
The written explanation of unique securities that are not well known on the market in order to make them appear less risky and more marketable.
The shortest living trance of a mortgage in a series. It is retired through early repayment.
When a broker copies their clients trade in a proprietary account. It is considered unethical. Refer to coattailing.
An agreement to repurchase that matures in 30 days. Refer to open and overnight purchase agreement.
An order to trade securities in a time frame. Refer to limit, stop, and market order.