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Definition of CircleCircleUnderwriters, actual or potential, often seek out and "circle" investor interest in a new issue before
Related Terms:Accrued interestThe accumulated coupon interest earned but not yet paid to the seller of a bond by the Accrued InterestThe amount of interest accumulated on a debt security between Accrued InterestThe amount of interest owing but not paid. Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced actual cost systema valuation method that uses actual direct ActualsThe physical commodity underlying a futures contract. Cash commodity, physical. Administrative pricing rulesIRS rules used to allocate income on export sales to a foreign sales corporation. Advance commitmentA promise to sell an asset before the seller has lined up purchase of the asset. This Amortizing interest rate swapSwap in which the principal or national amount rises (falls) as interest rates Arbitrage-free option-pricing modelsYield curve option-pricing models. Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by 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 pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, such as the Capital Asset pricing Model (CAPM), that determines the required Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Base interest rateRelated: Benchmark interest rate. 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. Bellwether issuesRelated:Benchmark issues. Benchmark interest rateAlso called the base interest rate, it is the minimum interest rate investors will Benchmark issuesAlso called on-the-run or current coupon issues or bellwether issues. In the secondary Best-interests-of-creditors testThe requirement that a claim holder voting against a plan of reorganization Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically Binomial option pricing modelAn option pricing model in which the underlying asset can take on only two Black-Scholes option-pricing modelA model for pricing call options based on arbitrage arguments that uses Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be BreakoutA rise in a security's price above a resistance level (commonly its previous high price) or drop Buyoutpurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is 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. Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Capital Asset Pricing Model (CAPM)A model for estimating equilibrium rates of return and values of capital asset pricing model (CAPM)Theory of the relationship between risk and return which states that the expected risk Capitalized interestinterest that is not immediately expensed, but rather is considered as an asset and is then Capitalized Interestinterest incurred during the construction period on monies invested in Cash flow after interest and taxesNet income plus depreciation. Cash offerA public equity issue that is sold to all interested investors. CashoutRefers to a situation where a firm runs out of cash and cannot readily sell marketable securities. Cheapest to deliver issueThe acceptable Treasury security with the highest implied repo rate; the rate that a Clean priceBond price excluding accrued interest. Closing purchaseA transaction in which the purchaser's intention is to reduce or eliminate a short position in CommitmentA trader is said to have a commitment when he assumes the obligation to accept or make Commitment feeA fee paid to a commercial bank in return for its legal commitment to lend funds that have Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Competitive offeringAn offering of securities through competitive bidding. Compound interestinterest paid on previously earned interest as well as on the principal. Compound Interestinterest paid on principal and on interest earned in previous compound interesta method of determining interest in which interest that was earned in prior periods is added to the original investment so that, in each successive period, interest is earned on both principal and interest compound interestinterest earned on interest. Compound Interestinterest earned on an investment at periodic intervals and added to principal and previous interest earned. Each time new interest earned is calculated it is on a combined total of principal and previous interest earned. Essentially, interest is paid on top of interest. 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 Convertible priceThe contractually specified price per share at which a convertible security can be Cost-plus pricingA method of pricing in which a mark-up is added to the total product/service cost. CouponThe periodic interest payment made to the bondholders during the life of the bond. CouponDetachable certificate attached to a bond that shows the amount of couponThe interest payments paid to the bondholder. CouponThe annual interest payment associated with a bond. Coupon BondAny bond with a coupon. Contrast with discount bond. Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond Coupon datesThe dates when the coupons are paid. Typically a bond pays Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Coupon paymentsA bond's interest payments. Coupon rateIn bonds, notes or other fixed income securities, the stated percentage rate of interest, usually Coupon RateThe rate of interest paid on a debt security. Generally stated on an Coupon rateThe nominal interest rate that the issuer promises to pay the coupon rateAnnual interest payment as a percentage of face value. Covered interest arbitrageA portfolio manager invests dollars in an instrument denominated in a foreign Crowding OutDecreases in aggregate demand which accompany an expansionary fiscal policy, dampening the impact of that policy. Current couponA bond selling at or close to par, that is, a bond with a coupon close to the yields currently Current-coupon issuesRelated: Benchmark issues Current issueIn Treasury securities, the most recently auctioned issue. Trading is more active in current Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Daily Interest AccumulationAccount in which interest is accrued daily and credited to the account at the end of a specified time. Days' sales outstandingAverage collection period. Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Devaluation A decrease in the spot price of the currency
Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Dollar price of a bondPercentage of face value at which a bond is quoted. Down-and-out optionBarrier option that expires if asset price hits a barrier. Dual-currency issuesEurobonds that pay coupon interest in one currency but pay the principal in a different dual pricing arrangementa transfer pricing system that allows Dual syndicate equity offeringAn international equity placement where the offering is split into two Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms 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 Effective annual interest rateAn annual measure of the time value of money that fully reflects the effects of
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