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

Category: Finance Dictionary

NIELSEN RATINGS

An audience’s viewing depicted in this specific published survey. Media outlets base their marketing to advertising clients based on these ratings. The ratings express the viewing audience size and scope as viewers

NO CONTEST

The accused will not contest the facts on which the charge is based as a criminal case plea. It is not an admission of guilt. It is generally aimed at preventing lawsuits

NOA

Notify On Arrival. A definitive, mandated instruction to the carrier by the consignor to notify the consignee at shipment arrival.

PAID-IN CAPITAL

Investment capital that came in the form of stock, public offering, or addon.

PAYER SWAPTION

When the payer can choose to pay fixed rates rather than floating rates. This occurs when the strike price have a high interest rate. Refer to reciever swapation.

PIP

The foreign exchange quotes fifth decimal point.

POSITIVE CARRY

When an asset earns more than it costs to maintain it. Refer to negative carry.

PREMIUM RAID

When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.

PROMISSORY NOTE

A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to another party. See, What Is a Promissory Note? A Legal Guide

PURPOSE LOAN

A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.

QUOTED SPREAD

The difference between the bid and offer amount. The transaction has not yet occured. Refer to effective and realized spread.

RECAPITALIZATION

Restructuring a company to create more equity and reduce debt. The company may be solvent or filing for bankruptcy. Or reorganizing the voting abilities of stock. AKA deleveraging. Refer to dual class

REPO RATE

When an asset is repurchased by a lender the borrower must pay this interest rate. It is usually lower than before since it is secured by collateral.

RETURN ON EQUITY (ROE)

The total, unadjusted return generated for shareholders by a firm during an identified period of time. Refer to risk adjusted return on capital.

RICH

When a holding is at its highest price and a firm will benefit from selling it.

RISK PREMIUM

The higher payments made to a firm that invests in high risk ventures with the possibility of default. AKA risk margin. Refer to premium.

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