RESTRICTED RETAINED EARNINGS
A sum of retained or restricted surplus placed in an account that can only be used to pay in the event that the investor has arrears from a breach of covenant or
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A sum of retained or restricted surplus placed in an account that can only be used to pay in the event that the investor has arrears from a breach of covenant or
A trade between two parties of a fixed interest rate with a floating interest rate where there is an increase in the notional principal as the result of an increase in the
A firms ability to identify their financial resources, expertise, and operating mandate to determine how much risk they are able to take.
The basic concept of the payment of a premium by someone who is unable to withstand a loss to a firm who agrees according to the terms of the policy to cover
An unexpected offer of tender to suddenly takeover a company rapidly. Refer to dawn raid and premium raid.
The buyback of stock to increase the treasury stock contra account reducing equity on the open market by a company that sporadically has additional funds.
A corporate executive officer responsible for identifying the duties of the board of directors within the single board system in Japan.
A corporation that is overseen by one board of directors consisting of 10 to 30 members guided by a chairman (possibly the CEO) who are nominated by internal sources and elected at
The market maker in the stock exchange. They manage and balance the market at all times. They are sometimes even a dealer.
An extra charge placed on certain legal documents by purchasing a stamp to be placed on said document.
When a firm is long on one put and two call options with equal strike prices creating a spread to make use of market volatility to secure unlimited profit potential with minimal
An over the counter derivative with periodic payments. They mature in 1 to 10 years. For the foreign markets it is a pair of spot and forward transactions. The spot offsets the
The funding of a lease for 1 to 15 years. Used to fund inventory.
Exposure of a derivative based on its ending performance. Refer to average exposure.
The theory that the money owned now will be worth more in the future.
A US treasury note or bond whose profits are linked to inflation. They are sold in small amounts to make them available to retail investors.They pay coupons on a cycle with principal
Latin for in utmost good faith. It implies that the insured will disclose all relevant information to the insurer. The insured must also fulfill all obligations of the contract
When personal assets are used to absorb business failure. Refer to piercing the corporate veil.
When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.
A security announced but not priced. It is informal but legally binding. When settled it trades like any seasoned security. Refer to to be announced and when issued treasury.