PUFFERY
A questionable practice of downplaying negative business traits and overemphasizing the positive ones.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
A questionable practice of downplaying negative business traits and overemphasizing the positive ones.
The act of speculation or being in a risky position.
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
The inflaction of a wholesale purchase. It is based on the manufacturing process not the associated services. Refer to consumer price index, harmonized index of consume prices, and retail price index.
When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.
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.
A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.
An option where the buyer can sell underlying call option back to the seller. Refer to call on a call, call on a put, and put on a put.
An option where the buyer is paid the difference between the strike price and the worse performing asset in a portfolio. Refer to call on the best of nassets, call on the
An option where the buyer is paid the difference between the strike price and the lowest price. Refer to option on the maximum/minimum, lookback option, and call on the maximum.
An insurer owned by a single company. They write insurance for that company only. While easy to manage it may be more risky. AKA single parent captive. Refer to agency captive, captive,
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.
The amount of a firms most liquid assets. They include stock, cash, accounts recievable, and securities. It is a measure of the current assets minus inventory. Refer to quick ratio.
An options whose profits are from derivative into foreign currency. The investor can participate in the foreign markets and still be protected from risk. AKA guaranteed exchange rate option and quantity adjusted
When a company cannot share any news because it is registering a new issue.
The difference between the bid and offer amount. The transaction has not yet occured. Refer to effective and realized spread.
A hostile buyer who tries to buy another company. They usually strip assets or get greenmail payments. This was common in the 1980s but there are still buyers like this out there.
a trust wherein the employee is not taxed because the plan’s assets can be claimed by creditors. This name is used because the first of these type of trusts was set up
A swap whose structure has fixed rates. This transaction can be cancelled at a future date. Refer to callable and cancellable swap.