PRIVATE EQUITY
An investment that comes from a private not corporate investor. The investor usually exits at the first public sale.
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An investment that comes from a private not corporate investor. The investor usually exits at the first public sale.
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.
A note that gives an investor better coupon rates than a RFN. If the interest rates fall short of an agreed to range the interest is lost for a period of time
Assets in a bank exposed to interest rate changes. Refer to asset liability management and ratesensitive liabilities.
An insurers gross profitability. The higher the rate on a line the more gross profit.
An option spread that creates profit from volatile circumstances. A small amount of closertothemoney options are bought than fartherfromthemoney options. Refer to backspread.
The difference between average bids and offers over a period of time. Refer to effective and quoted spreads.
When insured parties group together to protect one another. New members are sought to prevent loss. AKA recriprocal insurance exchange.
Restructuring a company to create more equity and reduce debt. The company may be solvent or filing for bankruptcy. Or reorganizing the voting abilities of stock. AKA deleveraging. Refer to dual class
This guarantees a borrower an interest rate on a loan for 30 to 90 days. This makes all financing costs known for the period of time. AKA lockin provision. Refer to drop
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.
When a portfolio is sold exposure is reduced to protect both parties. The cash settlement is paid and the derivatives are rewritten at current market levels. The process is repeated at the
Regrouping principal and interest after it has been stripped. This creates arbitrage opportunities. This happens when longterm securities are split into zero coupon bonds. Refer to stripping.
The percent a creditor or claim gets after a bankruptcy is filed. Refer to loss given default and recovery.