Category: T

tables used to calculate finding for retirement benefits. Interest, as well as mortality rates, are factored in.

A public offer to buy stock in a takeover effort. The offer is made at a premium to make the sale attractive. Refer to twotier bid, hostile takeover, friendly takeover, takeover, and

A liquid market with large volume, strong two way flows, and a small spread. Refer to thin market.

The difference between a portfolios actual performance and its target. Indexing is used to minimize error. AKA tracking risk.

An option created with a barrier is breached. Two additional barriers are added to make the option more expensive. Refer to Twin out barrier option and barrier option.

The right to protect minority interest in the event of a hostile takeover bid. If the bid passes the minority can join the majority. Refer to drag along rights.

A syndicate of banks that sells notes for an issuer. They purchase the remaining unsold securities.

Daily change effecting the time value of a premium.

Stock with no voting or ownership rights. It is traded and priced independantly of a companies primary stock offerings..

A option that is ended when a barrier is breached. The addition of two options makes this option cheaper. Refer to barrier option and twin in barrier option.

Insurance beyone the end of a standard policy.

A loan that lasts between 1 and 10 years. It has a specific amount to be repaid on a schedule at floatin interest. Refer to theta and time decay.

A deposit made by a bank to pay coupons. This is done until maturity when the funds can be accessed. Refer to lockup certificate of deposit, certificate of deposit, interbank deposit, and

A portion of securities with a unique set of characteristics. They are used in securitization.

Moving a yield curve up or down to adjust the value of a portfolio or a fixed income transaction. This is done using basis points to move the long and short term

When a broker copies their clients trade in a proprietary account. It is considered unethical. Refer to coattailing.

An agreement to repurchase that matures in 30 days. Refer to open and overnight purchase agreement.

An order to trade securities in a time frame. Refer to limit, stop, and market order.

An issue of gilts by the bank of england. It is a small amount used in retail investment.

When an interest rate is decided by creating a yield curve for the long and short term. It is a more precise way to choose the best rate.