PERCENTAGE OF LOSS DEDUCTIBLE
When deductable increases the same percent as loss incurred. This preserves and increases risk retention.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
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.
When a financial institution revalues collateral to make adjustments. Refer to upfront collateral.
The maximum amount payable to the insured by the insurer. AKA aggregate limit and exhaustion point.
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.