Category: P

A barrier option whose barrier kicks in at only one time. This time is usually maturity. AKA european barrier option. Refer to partial barrier option.

When short term interest rates are lower than long term rates. This indicates normal market yield. AKA upward sloping yield curve. Refer to kinked and negative yield curve.

The speed a mortgage can be paid ahead of schedule.

A UK company listed and registered under the companies act. It has limited liability.

An option where the buyer is paid the difference between the strike price and the worse performing asset in a portfolio. Refer to call on the best of nassets, call on the

When a debtor and creditor meet to avoid default.

Stocks sold at less than one dollar. They are sold by companies in financial trouble, new companies, and ones removed from a larger market. The sales are recorded on a pink sheet.

A takeover prevention strategy that makes stock look bad to the interested buyer. Refer to chewable, flipin, and flipover pill.

A percent of new issue held by the manager to offer to the institutions investors.

The time a company is preparing to file for bankruptcy. Directors try to preserve value as the creditors will paid first.

A questionable practice of downplaying negative business traits and overemphasizing the positive ones.

A contract allowing the buyer to sell an asset back at strike price. This occurs at or before the maturity date. They are written based on a broad range of commodity and

Using overfunded pension plans to start new endeavors.

When deductable increases the same percent as loss incurred. This preserves and increases risk retention.

An option that allows investors to redeem their bonds if a trigger event occurs. The sudden redemption reduces cash value and makes the stock less attractive to the buyer.

The amount of risk associated with a financial investment with uncertain value. AKA risk equivalent exposure.

A new bond floated to pay an existing bond issue. This occurs at the first call date. Proceeds are invested in low risk securites until the original bond is redeemable. This is

When a dealer or trader sell all or some of a money losing position.

When a company buys an option on its own stock. This is done through a middle man generating gain even if stock value declines. Refer to loss equity put.

A security representing investment interest in an asset. Typically a mortgagebacked securities. Refer to passthrough security.