ROLLING HEDGE
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.
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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 difference between the price paid and the price offered by investors. Refer to selling concession.
The estimate of how much a portfolio will lose at market risk. It measures shortcomings and uncertainty. Refer to back testing, maximum loss, and profit and loss explain.
Stock of a company whose assets are overvalued. The price does not accurately represent the companies position.
When only a oneway quote is available for a security.
The trading range of a security whose status is pending.
Allows the buyer a pay as you go contract.
A bank started in 1956 to help third world development through loans.