When a company offers to buy another to improve profits, clients access, and assets. It can be friendly or hostile. Refer to bid.

The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.

The yield on tax free securities. It is compared with taxable investment opportunities. Refer to yield to maturity, yield to call, simple yield, bond equivalent yield, and discount yield.

The smallest amount that can be traded in bonds and securities.

A public offer to buy stock in a takeover effort. The offer is made at a premium to make the sale attractive. Refer to twotier bid, hostile takeover, friendly takeover, takeover, and

An agreement to repurchase that matures in 30 days. Refer to open and overnight purchase agreement.

A loan that lasts between 1 and 10 years. It has a specific amount to be repaid on a schedule at floatin interest. Refer to theta and time decay.

The price paid for a company. Refer to anyandall bid, two tier bid, and take over.

An options value changes over time if all variables are constant. AKA omega. Refer to delta, gamma, greeks, rho, time decay, time value, and vega.

A transaction that increases risk and produces loss.

A marketplace for trading over the counter interests. Or exchanging between nonmember firms.

When directors evaluate their poison pill defences every three years.

A liquid market with large volume, strong two way flows, and a small spread. Refer to thin market.

Additional capital acquired by a bank. Refer to economic capital and tier 1 capital.

Exposure of a derivative based on its ending performance. Refer to average exposure.

An order to trade securities in a time frame. Refer to limit, stop, and market order.

The theory that the money owned now will be worth more in the future.

The remaining value of a contract attributed to time. The value declines daily. Refer to theta and time decay.