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.

Replacing one mode of financing for another.

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.

A mortgage that trades as a when issued security. Its presence is announced but the price is not decided yet.

An offer to deposit into the Tokyo market. It is used as a reference.

The report generated for a security at its maturation date. It shows the details of the transaction and the issuer.

When a transaction on the foreign exchange or money market that is processed the next day. AKA dealing over tomorrow and rollover.

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

The difference between a portfolios actual performance and its target. Indexing is used to minimize error. AKA tracking risk.

The potential for a credit rating of a company to go from one class to another.

An issue of gilts by the bank of england. It is a small amount used in retail investment.

A US treasury note or bond whose profits are linked to inflation. They are sold in small amounts to make them available to retail investors.They pay coupons on a cycle with principal

When a companies captives can access reinsurance markets. A small percentage of exposure is insured through reinsurance.

A chart that looks like a triangle. The price changes are shown as two points on the bottom and one at the top. Any breakout from the triangle indicates a move upward

Comparing the risk premium and risk of a portfolio. It uses the security market line as the benchmark.

Stock with no voting or ownership rights. It is traded and priced independantly of a companies primary stock offerings..