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Definition of Buy
To purchase an asset; taking a long position.
A mortgage loan on newly developed property that the builder subsidizes during the
A passive investment strategy with no active buying and selling of stocks from the
Another term for a repo.
To cover, offset or close out a short position. Related: evening up, liquidation.
A conditional trading order that indicates a security may be purchased only at the designated
To buy at the end of the trading session at a price within the closing range.
A transaction in which an investor borrows to buy additional shares, using the shares
To buy at the beginning of a trading session at a price within the opening range.
This 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.
A financial analyst employed by a non-brokerage firm, typically one of the larger money
Mortgages in which monthly payments consist of principal and interest, with portions of these
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
One of two parties to a conditional sale agreement, the other being the conditional seller.
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
The purchase of items exceeding the quantity levels indicated
The purchase of one business entity by another, largely using borrowed
Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use
leveraged buyout (LBO)
Acquisition of the firm by a private group using substantial borrowed funds.
a decision that compares the cost of
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
management buyout (MBO)
Acquisition of the firm by its own management in a leveraged buyout.
Protective put buying strategy
A strategy that involves buying a put option on the underlying security that is
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.
The requirement that all pool information, as specified under the PSA Uniform Practices, in a
Short-term, non-interest-bearing liabilities of a business
The accumulated coupon interest earned but not yet paid to the seller of a bond by the
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity
Employee of a brokerage or fund management house who studies companies and makes buy-and-sell
The simultaneous buying and selling of a security at two different prices in two different markets,
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
This is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this
Markets in which the prevailing price is determined through the free interaction of
The fee paid on the extension date if the buyer wishes to continue the option.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
Contracts with trigger points that, when crossed, automatically generate buying or selling of
Packages that involve the exchange of more than two currencies against a base currency at
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
A firm or person that wants to buy a firm or security.
Brokerage firms that help to find potential buyers or sellers of large block trades.
Bonds are debt and are issued for a period of more than one year. The U.S. government, local
Security issue where one or two underwriters buy the entire issue.
A rise in a security's price above a resistance level (commonly its previous high price) or drop
An agent who handles public orders to buy or sell financial assets.
A market where an intermediary offers search services to buyers and sellers.
A spread strategy in which an investor buys an out-of-the-money put option, financing it by
An option that gives the right to buy the underlying futures contract.
a. An option to buy a certain quantity of a stock or commodity for a
A contract that gives the holder the right to buy an asset for a
Right to buy an asset at a specified exercise price on or before the exercise date.
An embedded option granting a bond issuer the right to buy back all or part of the issue prior
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The
A bond that allows the issuer to buy back the bond at a
The market in which investors buy and sell shares of companies, normally associated with a Stock Exchange.
Shipments of product to distributors who are encouraged to overbuy under
Cheapest to deliver issue
The acceptable Treasury security with the highest implied repo rate; the rate that a
Income payments to factors of production are spent to buy output. The receipts from these sales are used to pay factors of production, creating a circular flow of income.
A trade is carried out by the seller delivering securities and the buyer delivering funds in proper form.
A broker on the floor of an exchange acts as agent for a particular brokerage house and
A firm which buys and sells future contracts for customer accounts. Related: futures
A commodity is food, metal, or another physical substance that investors buy or sell, usually via
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
One of two parties to a conditional sale agreement, the other being the conditional buyer.
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual
The risk that the other party to an agreement will default. In an options contract, the risk
The nominal interest rate that the issuer promises to pay the
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the
buying or selling goods or services now with the intention of payment following at some time in
Taking advantage of divergences in exchange rates in different money markets by
An option to buy or sell a foreign currency.
An order to buy or sell stock that automatically expires if it can't be executed on the day it is entered.
An entity that stands ready and willing to buy a security for its own account (at its bid price) or sell
A person or firm in the financial asset business who buys for his or her own account and then resells to customers, in contrast to a broker, who buys only on behalf of a customer.
A market where traders specializing in particular commodities buy and sell assets for their
A set of transactions (also called a debt-equity swap) in which a firm buys a country's dollar bank
The options available to the seller of an interest rate futures contract, including the quality
Delivery versus payment
A transaction in which the buyer's payment for securities is due at the time of
A financial instrument that is based on some underlying asset.
A warrant entitles the holder to buy a given number of shares of stock at a stipulated
For foreign exchange, the number of U.S. dollars needed to buy one unit of a foreign currency.
Direct search market
buyers and sellers seek each other directly and transact directly.
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Discounting of Accounts Receivable
Short-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable.
Dollar Cost Averaging
A way of smoothing out your investment deposits by investing regularly. Instead of making one large deposit a year into your RRSP, you make smaller regular monthly deposits. If you are buying units in a mutual fund or segregated equity fund, you would end up buying more units in the month that values were low and less units in the month that values were higher. By spreading out your purchases, you don't have to worry about buying at the right time.
dual pricing arrangement
a transfer pricing system that allows
An instrument evidencing the obligation of a seller to deliver securities sold to the buyer.
economic components model
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Securities that give the holder the right to buy or sell a specified number of shares of stock, at
equivalent annual cost
The cost per period with the same present value as the cost of buying and operating a machine.
buying or selling to offset an existing market position.
This literally means "without dividend." The buyer of shares when they are quoted ex-dividend
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
The process of completing an order to buy or sell securities. Once a trade is executed, it is reported
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of
The price set for buying an asset (call) or selling an asset (put).
Exercising the option
The act buying or selling the underlying asset via the option contract.
The costs incurred in buying, making or producing goods and services.
Extending maturity through a swap, e.g. selling a 2-year note and buying one with a slightly
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