Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, finance, inventory control, credit, accounting, money, business, payroll,
Definition of Buy
To purchase an asset; taking a long position.
A mortgage loan on newly developed property that the builder subsidizes during the
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.
A passive investment strategy with no active buying and selling of stocks from the
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
Another term for a repo.
A financial analyst employed by a non-brokerage firm, typically one of the larger money
A transaction used for taking a public corporation private financed through the use
Leveraged buyout whereby the acquiring group is led by the firm's management.
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.
a decision that compares the cost of
The purchase of one business entity by another, largely using borrowed
leveraged buyout (LBO)
Acquisition of the firm by a private group using substantial borrowed funds.
management buyout (MBO)
Acquisition of the firm by its own management in a leveraged buyout.
The purchase of items exceeding the quantity levels indicated
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.
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.
economic components model
Abramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic components.
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
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.
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
Cheapest to deliver issue
The acceptable Treasury security with the highest implied repo rate; the rate that a
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
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
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the
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 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 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.
An instrument evidencing the obligation of a seller to deliver securities sold to the buyer.
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
buying or selling to offset an existing market position.
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
Exercising the option
The act buying or selling the underlying asset via the option contract.
Extending maturity through a swap, e.g. selling a 2-year note and buying one with a slightly
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
A financial institution that buys a firm's accounts receivables and collects the debt.
A trade is said to fail if on settlement date either the seller fails to deliver securities in proper form or the
Figuring the tail
Calculating the yield at which a future money market (one available some period hence) is
Refers to an order to buy or sell that can be executed without confirmation for some fixed period. Also,
Firm commitment underwriting
An undewriting in which an investment banking firm commits to buy the
Arrangement used to finance inventory. A finance company buys the inventory, which is then
Foreign currency option
An option that conveys the right to buy or sell a specified amount of foreign
Foreign exchange dealer
A firm or individual that buys foreign exchange from one party and then sells it to
The requirement that all pool information, as specified under the PSA Uniform Practices, in a
The "stickiness" in making transactions; the total hassle including time, effort, money, and tax
The fee initially paid by the buyer upon entering a split-fee option contract.
Agreement to buy or sell a set number of shares of a specific stock in a designated future
When the Fed offers to buy securities, to sell securities, to do repo, or to do reverses, it solicits
Good 'til canceled
Sometimes simply called "GTC", it means an order to buy or sell stock that is good until
Option that allows the underwriter for a new issue to buy and resell additional shares.
A money manager who seeks to buy stocks that are typically selling at relatively high P/E
A fund that may employ a variety of techniques to enhance returns, such as both buying and
Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can
Implied repo rate
The rate that a seller of a futures contract can earn by buying an issue and then delivering
For foreign exchange, the number of units of a foreign currency needed to buy one U.S.$.
Initial margin requirement
When buying securities on margin, the proportion of the total market value of
Initial public offering (IPO)
A company's first sale of stock to the public. Securities offered in an IPO are
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.