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.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
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.
The total, unadjusted return generated for shareholders by a firm during an identified period of time. Refer to risk adjusted return on capital.
When a holding is at its highest price and a firm will benefit from selling it.
The higher payments made to a firm that invests in high risk ventures with the possibility of default. AKA risk margin. Refer to premium.
A risk reducing strategy that involves closing out nearby or next nearby derivative contracts and then repurchasing to push out the maturity date. AKA stack and roll. Refer to strip hedge.
A relatively rare form of stock that sits between prior preferred stock and common stock.
The completion of a transaction by a certain date. Refer to joint and several.
The sale of a short position. The market price will decline. Refer to short naked shorting.
When a bank is interested in establishing good relationships with its borrowers by offering loans with below market interest rates, long repayment periods, and repeated rescheduling or rollover of the principal.
The rule that states that a standard deviation of a market variable is in proportion to the square root of time.
The buying or selling of securities once it reaches the stop level as opposed to the traditional stop order when securities are bought or sold at the market price.
An asset secured loan usually having a low loan to value ratio given to a client with a poor credit history such as a delinquency or default. Refer to B & C
tables used to calculate finding for retirement benefits. Interest, as well as mortality rates, are factored in.
A public offer to buy stock in a takeover effort. The offer is made at a premium to make the sale attractive. Refer to twotier bid, hostile takeover, friendly takeover, takeover, and
A liquid market with large volume, strong two way flows, and a small spread. Refer to thin market.
The difference between a portfolios actual performance and its target. Indexing is used to minimize error. AKA tracking risk.
An option created with a barrier is breached. Two additional barriers are added to make the option more expensive. Refer to Twin out barrier option and barrier option.
The risk incurred if securities dont sell. Any shortfall must be covered by the underwriter. Or the risk that loss will be greater than insurance can cover.
The date a transaction is complete. AKA settlement date.
A long term option issued as a private instrument with a bond. This lowers funding costs. Refer to exwarrant, covered warrant, and bond with warrant.