PRECIPITATION DERIVATIVE
The derivative that protects crops against precipitation. Refer to temperature derivative.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
The derivative that protects crops against precipitation. Refer to temperature derivative.
When future cash flows are brought to current value by using discount rates. Refer to discount cash flow, future value, and net present value.
When investors are lied to by the company. They are given postive news that is false to prompt them to buy. It drives up the stock price but the investor has just
An option position that occurs when options are traded with different strike prices. They have the same expiration date. Refer to bull, bear, and call spread.
When a portfolio is managed using minimum effort. This occurs when an index seldom moves their assets. Refer to active index strategy and index fund.
Cash flow paid to oil producing nations. It is rerouted to the western banking system.
Assets managed together to reduce risks and improve investment opportunities. Refer to diversification, risk, and theory.
A shareholders right at first choice on buying stocks. Any left are available to the market at large. AKA antidilution provision and subscription priviledge. Refer to rights issue.
When a bond price is close to its call redemption price.
The act of speculation or being in a risky position.
A swap whose structure has fixed rates. This transaction can be cancelled at a future date. Refer to callable and cancellable swap.
Rules limiting tax deductions and income that go untaxed. This is limited by passive source earnings.
A bond that converts its assets into negotiable securities. The assets remain on the balance sheet but are reserved for investors in the event of default.
Combining non related securites to ensure more profit. Refer to diversification, diversifiable risk, nondiversifiable risk, and portfolio theory.
The 90 days before bankruptcy. Refer to preference.
The main insurer on a policy. Refer to apportionment, divided cover, overlapping insurance, and pro rata.
A subsidiary company that writes special risk insurance for their parent company or group.
Relationships used to decide option prices that must remain to prevent arbitrage conditions. The sum price of the call option and strike price. This price must equal the sum of the put
When a company unexpectedly retains risk leading to losses. This usually occurs when they are not properly managing their reserves or self insurance. Refer to retention and risk retention
Provides bonuses and cash to management if the company does well.