When the difference between two assets and a strike price are used to pay off debt or loss. AKA difference, outperformance, and underperformance options. Refer to multi index option and yield curve

Finite reinsurance where premium is paid to an experience account every year for the contracts duration. The account generates a rate that covers loss. If anything is left at maturation it is

A contract granting the issuer of a bond a fixed spread for a short time before the trade is complete. This guarantees the price will be a reference not a spread. Refer

The rule that states that a standard deviation of a market variable is in proportion to the square root of time.

The trigger of a change from annual to staggered reelection of the director of a company by offering external tender as an antitakeover defense.

When the economy is plagued by little to no growth, rising prices, and high unemployment.

A market exchange currently taking place. Refer to market, price, and rate.

A firm that is failing that becomes a prime takeover possibility.

The assumption of liability by a bank that receives a fee for guaranteeing payment to investors in the event a firm doesn

A bank is protected if a customer defaults on a transaction by a standby letter of credit giving the bank the authority to pay the beneficiary and go after the customer to

A government requirement that contractors, businesses, and fiduciaries whose work affects public  interest maintain a security bond to ensure sufficient fortification in case the contract individual breaks contract.

The offset of foreign exchange market effects by increasing or decreasing the national money supply by a monetary authority such as a central bank. It is a manipulation of the value of

The buying or selling of securities once it reaches the stop level as opposed to the traditional stop order when securities are bought or sold at the market price.

An attempt by an investor to increase their number of outstanding shares and reduce the par value of their common stock lowering the purchase price to attract investors. Refer to reverse stock

An extra charge placed on certain legal documents by purchasing a stamp to be placed on said document.

The written explanation of unique securities that are not well known on the market in order to make them appear less risky and more marketable.

When a firm is long on one put and two call options with equal strike prices creating a spread to make use of market volatility to secure unlimited profit potential with minimal

Purchasing or selling options with the same maturity date but different strike prices taking advantage of market volatility. Refer to straddle.

Securities registered to an institution that are owned by a client eliminating the need of delivering the security to the owner.

A prediction of future cash flows and directional and curve risks of over the counter or exchange traded options. Refer to rolling hedge.