RISKFREE RATE
A safe investment model used to compare different risks of investment opportunities to determine the best choices a firm should make. Refer to discount rate and risk premium.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
A safe investment model used to compare different risks of investment opportunities to determine the best choices a firm should make. Refer to discount rate and risk premium.
A German loan with transferable interest rates among investors.
When brokers sell products from another firm illegaly. The client will not have any recourse against the originating company.
Borrowing securites to sell them short to protect the long position. This is a constructive sale and creates capital gains liability.
An extension of the pure captive by an insurer or reinsurer that writes insurance to cover companies that form an
A market exchange currently taking place. Refer to market, price, and rate.
The assumption of liability by a bank that receives a fee for guaranteeing payment to investors in the event a firm doesn
A prediction of future cash flows and directional and curve risks of over the counter or exchange traded options. Refer to rolling hedge.
A short term buying and selling strategy. It takes advantage of the overreactions. Refer to position trading.
The price paid for a company. Refer to anyandall bid, two tier bid, and take over.
An options value changes over time if all variables are constant. AKA omega. Refer to delta, gamma, greeks, rho, time decay, time value, and vega.
A ratio expressing the earnings needed. If below a 1 it needs more cash flow if above a 1 it is doing well on its return rate.
A chart connecting the lowest and highest prices over time to display the assets trend.
Additional insurance to cover specific liabilities or perils. It works with current insurance to fill gaps.
An option that creates an european option if the price goes beyond a barrier. Refer to barrier, down and in, down and out, reverse knockin, knockin, and up and out options.
Means overpowering force. An unavoidable event that will effect the profits of the firm. Risk transfer is sought in this case. Refer to force majuere.
Releasing corporate earnings before a full public announcement. The US limits this by prohibiting selective disclosure.
A japanese congromerate with one company taking control. It has been banned since the mid 1940s and is replaced by keiretsu.
An insurer that underwrites property and casualty policies.
A bond that guarantees a return based on inflation. The coupon is the fixed rate and the principal adjusts according to the changing inflation rates. Refer to the terms ajustabonos and treasury