RISK REDUCTION
The attempt to reduce financial and operating risk by withdrawal from high risk ventures of risk pooling resulting in diversification. Refer to loss control and loss financing.
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The attempt to reduce financial and operating risk by withdrawal from high risk ventures of risk pooling resulting in diversification. Refer to loss control and loss financing.
Gaining capital by purchasing and holding longterm bonds in the event of declining yields. AKA riding the curve.
When an exchange traded derivative is bought and sold quickly.
A securities order typically carrying lower returns or charges than odd lots that are traded in the standard size in accordance with the market.
A bond issued by a foreign company using the yen as currency in the market in Japan. Refer to daimyo, geisha, shibosai, and shogun.
A broker that overcharges for trades against established rules or an advisor who makes a profit by beating their clients to an investment.
The attempt of a takeover target to make itself look undesirable by threatening to liquidate or destroy assets in the event of a hostile takeover. Refer to crown jewel defense, dead hand
A German loan with transferable interest rates among investors.
A risk reducing strategy that involves closing out nearby or next nearby derivative contracts and then repurchasing to push out the maturity date. AKA stack and roll. Refer to strip hedge.
The process of estimating the impact of financial and operating risks on a firm using formulas, statistics, and actuarial techniques. Refer to risk identification and risk management.
Stock shared by two companies on one certificate.
The resale by a bank or securities firm of securities on behalf of an investor where the seller is responsible for commission fees but keeps the proceeds from the sale.
New securities offered after a company has made it’s inaugural primary offering with the capital raised usually going towards refinancing or capital growth. Refer to addon.
Very liquid funds in excess of those required to be held as an emergency buffer.
Selling inventory to pay off an asset conversion loan that is secured or unsecured usually obtained for a product that is seasonally demanded. AKA asset conversion loan.
The graphing of the relationship between the risk and the return of a specific investment at a specific time with the slope of the line indicating the market risk.
A New York Stock Exchange membership that enables an agent to trade on the floor on their won behalf or for a client. This membership is transferable.
Using syndications, participations and subunderwritings to reduce a new loans or bonds risk exposure.
Liquidating a loan or derivative when a payment is not recieved. This causes contract or loan cancellation.
When brokers sell products from another firm illegaly. The client will not have any recourse against the originating company.