TWIST
Moving a yield curve up or down to adjust the value of a portfolio or a fixed income transaction. This is done using basis points to move the long and short term
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Moving a yield curve up or down to adjust the value of a portfolio or a fixed income transaction. This is done using basis points to move the long and short term
When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.
When a take over happens because stockholders are offered a great price for a first cut off date. The remaining holders get a less attractive deal. Refer to anyandall bid and fair
When futures, options, and equity settle on the same day. This happens once each quarter.
It means outside ones jurisdiction. It is any financial action that is not covered legally under a companies laws. A third party can sue if this is mismanaged.
An option that can be paid off if the reference asset underperforms against a strike price. Refer to outperformance spread and spread option.
When a company in financial distress is urged to invest in low risk low return opportunites. This move protects the position of the firm.
Issuing securities on the primary market for an issuer. Or the act of predicting risk to ensure the possible gains are worth the risk. Refer to allornone underwriting, best efforts underwriting, and
The risk incurred if securities dont sell. Any shortfall must be covered by the underwriter. Or the risk that loss will be greater than insurance can cover.
Risk not covered by insurance that leads to loss. AKA prohibited risk.
A reserve held out of premium. This is the amount needed to cover losses before maturation.
Additional insurance to cover specific liabilities or perils. It works with current insurance to fill gaps.
An insurance payout that happens if three specific triggers occur. The first one is related soley to an insurance risk while the second and third can be financial or insurance related. Refer
An option that creates an european option if the price goes beyond a barrier. Refer to barrier, down and in, down and out, reverse knockin, knockin, and up and out options.
An auditor who is not part of the company who verifies the honesty of the financial records given.
When an institution takes collateral from the borrower right away to cover losses. Refer to periodic collateral.
A rule allowing short sale on plus tick or zero plus tick securities.
The date a transaction is complete. AKA settlement date.
An indirect tax placed on goods and services paid by producers and consumers. This tax is added at each manufacturing stage adding value. Refer to ad valorem.
When personal assets are used to absorb business failure. Refer to piercing the corporate veil.