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

Category: Finance Dictionary

SHOUT OPTION

An option that allows the buyer to lock in the profit before the possible loss occurs. Refer to cliquet, ladder, fixed strike shout, and floating strike shout option.

SPECIAL DIVIDEND

The ability of a company to get returns to shareholders. This is done when a company cannot decide on new opportunities that will generate profits for shareholders. Refer to cutting the melon

STAGS

A UK GILT STRIP security known as a Sterling Transfer Accruing Government Security.

STRAIGHTLINE DEPRECIATION

Applying reductions equally to a depreciable assets value in relation to predictions of its anticipated maturity. Refer to accelerated depreciation.

SURPLUS NOTES

Debt where securites are issued directly by a company not a trust. They mature in 10 to 30 years and must be approved by an insurance regulators.

TAILING A HEDGE

When a hedge is discounted using present value because the value changes daily.

TERM STRUCTURE

Mapping interest rates across time on a yield curve. Refer to expectation, liquidity preference, and market segmentation theory.

TIME SPREAD

A spread that takes advantage of volatility or percieved price in the forward market. This happens when options are traded with the same strike price but different maturity dates. AKA calendar spread

TWOTIER BID

When a take over happens because stockholders are offered a great price for a first cut off date. The remaining holders get a less attractive deal. Refer to anyandall bid and fair

UNISSUED STOCK

Stock that is available to be sold through corporate charter but isn’t.

VEGA

The price changes that occur compared to a %1 volatility change.

WEINER PROCESS

The process of comparing value to variable changes in the market. Part of the markov process. It is used in pricing options.

X TABLE

a term used to refer to a table in progress that is not yet able to be used in rating.

INTERPOSITIONING

The act of adding a middle man simply to boost commissions. Refer to affirmative and negative obligation.

JUDGMENT LIEN

Debt-repayment security for one or more creditors when a court order places a claim on a debtor’s property situated within the court’s jurisdiction. Also refer to attachment.

JURIDICAL PERSON

Entity, as a firm, that is not a single natural person, as a human being, authorized by law with duties and rights, recognized as a legal authority having a distinct identity, a

K-COMMERCE

Knowledge Exchange as the basis of an economy where knowledge capital is the defacto currency, an underlying premise in knowledge-based economies .

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