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Financial Terms | |
Bidder |
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Definition of BidderBidderA firm or person that wants to buy a firm or security.
Related Terms:poison pillMeasure taken by a target firm to avoid acquisition; runupthe period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will. Targeted repurchaseThe firm buys back its own stock from a potential bidder, usually at a substantial Wanted for cashA statement displayed on market tickers indicating that a bidder will pay cash for same day Winners'scurse Problem faced by uninformed bidders. For example, in an initial public offering uninformed Poison putA covenant allowing the bondholder to demand repayment in the event of a hostile merger. Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. ![]() Accounting periodThe period of time for which financial statements are produced – see also financial year. acquisitiontakeover of a firm by purchase of that firm’s common Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. Additional hedgeA protection against borrower fallout risk in the mortgage pipeline. Additional paid-in capitalAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par. Additional paid-in capitalAny payment received from investors for stock that exceeds additional paid-in capitalDifference between issue price and par value of stock. Also called capital surplus. Affirmative covenantA bond covenant that specifies certain actions the firm must take. ![]() All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Announcement dateDate on which particular news concerning a given company is announced to the public. Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. Appraisal rightsA right of shareholders in a merger to demand the payment of a fair price for their shares, as Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to Ask priceA dealer's price to sell a security; also called the offer price. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Avoidable costsCosts that are identifiable with and able to be influenced by decisions made at the business Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Basis priceprice expressed in terms of yield to maturity or annual rate of return. Before-tax profit marginThe ratio of net income before taxes to net sales. Bid-askedspread The difference between the bid and asked prices. Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically Builder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the BuyTo purchase an asset; taking a long position. Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the Buy-backAnother term for a repo. Buy inTo cover, offset or close out a short position. Related: evening up, liquidation. Buy limit orderA conditional trading order that indicates a security may be purchased only at the designated Buy on closeTo buy at the end of the trading session at a price within the closing range. Buy on marginA transaction in which an investor borrows to buy additional shares, using the shares Buy on openingTo buy at the beginning of a trading session at a price within the opening range. Buy/Sell AgreementThis is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement. Buy-side analystA financial analyst employed by a non-brokerage firm, typically one of the larger money BuydownsMortgages in which monthly payments consist of principal and interest, with portions of these Buying the indexPurchasing the stocks in the S&P 500 in the same proportion as the index to achieve the BuyoutPurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. Clean priceBond price excluding accrued interest. Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. Competitive biddingA securities offering process in which securities firms submit competing bids to the ComponentRaw materials or subassemblies used to make either finished goods Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation Conditional Buyerone of two parties to a conditional sale agreement, the other being the conditional seller. Confirmationhe written statement that follows any "trade" in the securities markets. Confirmation is issued Consumer Price Index (CPI)The CPI, as it is called, Measures the prices of consumer goods and services and is a Consumer Price Index (CPI)An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to Measure inflation. Conversion parity priceRelated:Market conversion price Conversion RightTerm life insurance products are offered as non-convertible or convertible to a certain time in the future. The coversion right has a time limit, usually to the policy holder's age 60 or possibly even age 70. This right means that the policy holder has the right to convert their existing policy to another specific different plan of permanent insurance within the specified time period, without providing evidence of insurability. There is a slightly higher cost for a term policy with the conversion priviledge but it is a valuable feature should a policy holder's health change for the worst and continued insurance coverage becomes a necessity. Convertible priceThe contractually specified price per share at which a convertible security can be Convertible securityA security that can be converted into common stock at the option of the security holder, Corporate acquisitionThe acquisition of one firm by anther firm. cost avoidancethe practice of finding acceptable alternatives Creative Acquisition AccountingThe allocation to expense of a greater portion of the price Credit periodThe length of time for which the customer is granted credit. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Cross holdingsone corporation holds shares in another firm. Cum rightsWith rights. Debt SecurityA security representing a debt relationship with an enterprise, including a government Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Derivative securityA financial security, such as an option, or future, whose value is derived in part from the Devaluation A decrease in the spot price of the currency
Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Dividend rightsA shareholders' rights to receive per-share dividends identical to those other shareholders receive. Dollar price of a bondPercentage of face value at which a bond is quoted. Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Dow Jones Industrial AverageIndex of the investment performance of a portfolio of 30 “blue-chip” stocks. earnings before interest and income tax (EBIT)A Measure of profit that Earnings before interest and taxes (EBIT)A financial Measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased Measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis Measure is used principally by economic components modelAbrams’ model for calculating DLOM based on the interaction of discounts from four economic components. Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Either/or facilityAn agreement permitting a bank customer to borrow either domestic dollars from the Either-way marketIn the interbank Eurodollar deposit market, an either-way market is one in which the bid Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Equity Buy-BackRefers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |