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Definition of Acquiree
A firm that is being acquired.
A merger or consolidation in which an acquirer purchases the acquiree's stock.
strategy Takeover defense strategy in which the prospective acquiree retaliates against the
Anit-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the
Method of accounting for a merger in which the acquirer is treated as having purchased
A merger or consolidation in which 1) the acquirer's tax basis in each asset whose
A merger or consolidation in which an acquirer purchases the selling firm's assets.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The second-largest stock exchange in the United States. It trades
Also called surplus management, the task of managing funds of a financial
Floating rate preferred stock, the dividend on which is adjusted every
A method developed by BARRA, a consulting firm in
The beta of a stock is determined as follows:
A management style that de-emphasizes the significance of economic
Very short maturity bills that the Treasury occasionally sells because its cash
A party to an explicit or implicit contract.
A bank that ranks just below a lead manager in a syndicated Eurocredit or international bond
Committee, AIMR Performance Presentation Standards Implementation Committee
The Association for Investment management and Research (AIMR)'s Performance Presentation Standards Implementation
These are securities that represent equity ownership in a company. Common shares let an
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Common stock equivalent
A convertible security that is traded like an equity issue because the optioned
Common stock market
The market for trading equities, not including preferred stock.
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Convertible preferred stock
Preferred stock that can be converted into common stock at the option of the holder.
The acquisition of one firm by anther firm.
Corporate financial management
The application of financial principals within a corporation to create and
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
Ability to borrow. The amount a firm can borrow up to the point where the firm value no
Checking accounts that pay no interest and can be withdrawn upon demand.
Demand line of credit
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
Demand master notes
Short-term securities that are repayable immediately upon the holder's demand.
An event that affects the demand for goods in services in the economy.
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Exchange of stock
acquisition of another company by purchase of its stock in exchange for cash or shares.
Group rotation manager
A top-down manager who infers the phases of the business cycle and allocates
A money manager who seeks to buy stocks that are typically selling at relatively high P/E
Common stock of a company that has an opportunity to invest money and earn more than the
Demands for securities to hedge particular sources of consumption risk, beyond the usual
Merger between two companies producing similar goods or services.
The unique capabilities and expertise of individuals.
Common stock with a high dividend yield and few profitable investment opportunities.
Also called a portfolio manager and money manager, the individual who manages a
The commercial or investment bank with the primary responsibility for organizing syndicated
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
stocks that are traded on an exchange.
stocks that are traded on an exchange.
Also known as "dirty" float, this is a system of floating exchange rates with central bank
Management/closely held shares
Percentage of shares held by persons closely related to a company, as
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
An investment advisory fee charged by the financial advisor to a fund based on the fund's
A report from management to the shareholders that accompanies the firm's
Decisions concerning the operation of the firm, such as the choice of firm size, firm
Mandatory redemption schedule
Schedule according to which sinking fund payments must be made.
Manufactured housing securities (MHSs)
Loans on manufactured homes - that is, factory-built or
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
Market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
Related: Investment management.
Related: Investment manager.
Money market demand account
An account that pays interest based on short-term interest rates.
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
Nondiversifiability of human capital
The difficulty of diversifying one's human capital (the unique
One man picture
The picture quoted by a broker is said to be a one-man picture if both the bid and offered
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
Performance attribution analysis
The decomposition of a money manager's performance results to explain
The evaluation of a manager's performance which involves, first, determining
The calculation of the return realized by a money manager over some time interval.
Shares of stock given to managers on the basis of performance as measured by earnings
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
Related: Investment management
Related: Investment manager
Preauthorized checks (PACs)
hecks that are authorized by the payer in advance and are written either by
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
Preferred equity redemption stock (PERC)
Preferred stock that converts automatically into equity at a
A security that ranks junior to preferred stock but senior to common stock in the right to
A security that shows ownership in a corporation and gives the holder a claim, prior to the
Preferred stock agreement
A contract for preferred stock.
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
Price impact costs
Related: market impact costs
One who receives the principal of a trust when it is dissolved.
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
The process of identifying and evaluating risks and selecting and managing techniques to
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Ownership of a corporation which is represented by shares which represent a piece of the corporation's
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Formal organizations, approved and regulated by the Securities and Exchange Commission
A firm's repurchase of outstanding shares of its common stock.
An active portfolio management technique that focuses on advantageous selection of
Balance sheet item that includes the book value of ownership in the corporation. It
Stock index option
An option in which the underlying is a common stock index.
Also called the equity market, the market for trading equities.
An option in which the underlying is the common stock of a corporation.
Stock replacement strategy
A strategy for enhancing a portfolio's return, employed when the futures
Occurs when a firm issues new shares of stock but in turn lowers the current market price of its
This is a lettered symbol assigned to securities and mutual funds that trade on U.S.financial exchanges.
Holder of equity shares in a firm.
Set of books kept by firm management for its annual report that follows Financial
The residual claims that stockholders have against a firm's assets, calculated by
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