PORTFOLIO
Assets managed together to reduce risks and improve investment opportunities. Refer to diversification, risk, and theory.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
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.
When managers buy extra stock to boost prices higher. This is done at the quarter and end of the financial year. Refer to window dressing.
An insured with less risk of loss and claims than the normal applicant. Insurers find these risks to increase their underwriting income and lower settlements.
Stock that has a first claim on assets. If distress should occur these stockholders get first dibs.
A strategy that uses external borrowed funds instead of internal funds. Refer to quasi arbitrage.
When investors get cashflows from assets in modified or fully modified forms. The assets can be mortgages, certificates, bonds, and loans.
When shareholders must pay losses from their personal assets. Refer to limited liability.