When a companies assets exceed its liabilities. There is plenty of liquidity to cover obligatins. Refer to negative working capital.

When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.

The way banks calculate the speed a mortgage will be repaid. A common way is the constant repayment rate model.

Early mortgage payment due to the sale of the home or refinancing to get a better interest rate. Refer to model and speed.

The time a company is preparing to file for bankruptcy. Directors try to preserve value as the creditors will paid first.

When future cash flows are brought to current value by using discount rates. Refer to discount cash flow, future value, and net present value.

Stock that has a first claim on assets. If distress should occur these stockholders get first dibs.

The main insurer on a policy. Refer to apportionment, divided cover, overlapping insurance, and pro rata.

A swap where the receiver getting a fixed interest rates offers a payment to get increased fixed interest rates. Refer to discount swap.

When assets are greater than liabilies. Refer to gap, gapping, and negative gap.

Evidence proving loss that must be submitted to the insurer. It proves the claim is valid.

A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to another party. See, What Is a Promissory Note? A Legal Guide

A captive where individual accounts called cells are used for selfinsurance. The cells are seperated by statute protecting them from loss. Refer to agency, group, pure, senior, sister and renta captive.

A UK company listed and registered under the companies act. It has limited liability.

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

When a dealer or trader sell all or some of a money losing position.

The potential a company will file for bankruptcy. It is used to calculate the default in default models.

A strategy that uses external borrowed funds instead of internal funds. Refer to quasi arbitrage.

The amount an insurer needs to cover their expenses. Along with premium loading it is used to calculate fair premium. Refer to expense loading.

A swap transaction that allows an insurer to diversify their portfolio by exchanging uncorrelated catastrophic hazards. Refer to catastrophe reinsurance swap.