An individual who is affected by the company who are not direct share holder.

When an industrial company issues a paper. Refer to financial paper.

The proportionate change between variables. Also called elastic or elasticity.

When currency loses its value due to constantly raising prices.

A swap of actual and fixed inflation rates. They mature in 10 or more years and are structured as annual inflation or a zero coupon inflation swap. Also called a consumer price

A bond that guarantees a return based on inflation. The coupon is the fixed rate and the principal adjusts according to the changing inflation rates. Refer to the terms ajustabonos and treasury

Security paid to protect a clearinghouse and to support loans. Refer to clearing, variation, and maintenance margin.

The first public offering of a companies stock in the market. A retail client will buy the stock and sell it to their customers. Refer to addon and rights issues.

A director of the board who is somehow related to the company they oversee. They are not independant voters as they have personal connections. Refer to outside director.

An offer between dealers that exclude brokers.

A corporation controlled by a family. Refer to outsider system.

Where private information is used to create more profit. Sometimes this is considered a crime and punished. Refer to gun jumping.

When a reinsurer is liable to any claims made by the insurer.

Allows the buyer a pay as you go contract.

A risk that causes loss that can be covered by the premium paid. Refer to uninsurable risk.

When a company estimates failure rate to predict default. Structural or markto market models are ways to do this.

A temporary deposit to prevent default. Also called hot money.

A broker who works with dealers. They do this confidentially.

The way a company sees how it can manage its debt. This is also referred to as debt service coverage.

The cost of borrowing funds or the capital earned on loaned funds.