Category: S

Reinsurance where the reinsurer only assumes loss beyond established retentions.

An unexpected offer of tender to suddenly takeover a company rapidly. Refer to dawn raid and premium raid.

The buyback of stock to increase the treasury stock contra account reducing equity on the open market by a company that sporadically has additional funds.

A corporate executive officer responsible for identifying the duties of the board of directors within the single board system in Japan.

A corporation that is overseen by one board of directors consisting of 10 to 30 members guided by a chairman (possibly the CEO) who are nominated by internal sources and elected at

The market maker in the stock exchange. They manage and balance the market at all times. They are sometimes even a dealer.

An extra charge placed on certain legal documents by purchasing a stamp to be placed on said document.

When a firm is long on one put and two call options with equal strike prices creating a spread to make use of market volatility to secure unlimited profit potential with minimal

An over the counter derivative with periodic payments. They mature in 1 to 10 years. For the foreign markets it is a pair of spot and forward transactions. The spot offsets the

A broker that overcharges for trades against established rules or an advisor who makes a profit by beating their clients to an investment.

Using syndications, participations and subunderwritings to reduce a new loans or bonds risk exposure.

When an insurance firm suffers a loss that causes financial distress because the clients loss is so severe. Protection can be provided using reinsurance mechanisms and diversification. Refer to clash loss.

The redraft of existing, disparate insurance contracts into the new master policy to combine risks and losses under a concise policy. Refer to attachment method.

A company added to prevent bankruptcy by arranging securitization for the sponsor. This company must become a charitable trust that is owned by a third party. The company and sponsor share equity.

After preemptive rights are exercised by the shareholders the remaining shares are purchased in agreement with a firm by underwriters of a rights issue guaranteeing the holdings by the firm of the

Securities registered to an institution that are owned by a client eliminating the need of delivering the security to the owner.

The difference between the swap rate and the benchmark government bond rate. The wider the spread the worse the credit.

Theorizing outcome from risk exposures such as foreign exchange rates, yield curve shifts, or market volatility. AKA stress testing.

When syndicate members get a discount on new issues. This is half the underwriting spread.

A nonyen bond issued by a foreign company in Japan. Refer also to Daimyo, Geisha, Samurai, and Shibosai.