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Definition of Exclusionary self-tender
The firm makes a tender offer for a given amount of its own stock while excluding
A one-time offer to purchase a stated number of shares at a stated fixed price,
Loan to finance current assets, The sale of the current assets provides the cash to repay
Consequence of a contract that induces only one group (e.g. low risk individuals) to participate.
To offer for delivery against futures.
General offer made publicly and directly to a firm's shareholders to buy their stock at a price
The premium offered above the current market price in a tender offer.
Takeover attempt in which outsiders directly offer to buy the stock of the firm’s shareholders.
A federal Act requiring self-employed business owners to pay the same total tax rates for Social Security and
The price at which a willing buyer and a willing unrelated seller would freely agree to
A dealer's price to sell a security; also called the offer price.
A loan in which two companies in separate countries borrow each other's currency for a
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
Related: Call money rate.
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
A bank term loan that calls for no amortization.
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
A public equity issue that is sold to all interested investors.
Bond price excluding accrued interest.
An offering of securities through competitive bidding.
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Conversion parity price
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
The 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
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Dual syndicate equity offering
An international equity placement where the offering is split into two
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Given the after-tax stream associated with a lease, the maximum amount of conventional
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
The price at which the underlying future or options contract may be bought or sold.
Fair market price
Amount at which an asset would change hands between two parties, both having
The equilibrium price for futures contracts. Also called the theoretical futures price, which equals
Fair price provision
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Long-lived property owned by a firm that is used by a firm in the production of its income.
Fixed asset turnover ratio
The ratio of sales to fixed assets.
A cost that is fixed in total for a given period of time and for given production levels.
Annuity contracts in which the insurance company or issuing financial institution pays a
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
In the Euromarket the standard periods for which Euros are traded (1 month out to a year out) are
Conventional bonds for which the coupon rate is set as a fixed percentage of the par value.
A nonnegotiable debt security that can be redeemed at some fixed price or according to
A country's decision to tie the value of its currency to another country's currency, gold
Also called a busted convertible, a convertible security that is trading like a straight
Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
The market for trading bonds and preferred stock.
Fixed price basis
An offering of securities at a fixed price.
A loan on which the rate paid by the borrower is fixed for the life of the loan.
In an interest rate swap the counterparty who pays a fixed rate, usually in exchange for a
Flat price risk
Taking a position either long or short that does not involve spreading.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
The price at which the parties to a futures contract agree to transact on the settlement date.
General cash offer
A public offering made to investors at large.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Initial public offering (IPO)
A company's first sale of stock to the public. Securities offered in an IPO are
loan made by one unit of a corporation to another unit of the same corporation.
A secured short-term loan to purchase inventory. The three basic forms are a blanket
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered.
loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or
Law of one price
An economic rule stating that a given security must have the same price regardless of the
Maximum price fluctuation
Loan amortization schedule
The schedule for repaying the interest and principal on a loan.
Group of banks sharing a loan. See: syndicate.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
Maximum price fluctuation
Payment by a firm to its owners from capital rather than from earnings.
Market conversion price
Also called conversion parity price, the price that an investor effectively pays for
Market price of risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The
The amount of money that a willing buyer pays to acquire something from a willing seller,
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
Maximum price fluctuation
The maximum amount the contract price can change, up or down, during one
Minimum price fluctuation
Smallest increment of price movement possible in trading a given contract. Also
Give the borrower the possibility of drawing a loan in different currencies.
loans usually represented by conventional mortgages on multi-family rental apartments.
An offering of securities for which the terms, including underwriters' compensation,
price quotations on futures for a period in which no actual trading took place.
Indicates a willingness to sell at a given price. Related: bid
A document that outlines the terms of securities to be offered in a private placement.
The range of prices at which the first bids and offers were made or first transactions were
Also called the option premium, the price paid by the buyer of the options contract for the right
A process whereby two companies in different countries borrow each other's currency for a
PIBOR (Paris Interbank Offer Rate)
The deposit rate on interbank transactions in the Eurocurrency market
Compares a stock's market value to the value of total assets less total liabilities (book
Price/earnings ratio (PE ratio)
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
The limitation of the price appreciation potential for a callable bond in a declining interest
Price discovery process
The process of determining the prices of the assets in the marketplace through the
The percentage change in the quantity divided by the percentage change in the price.
Price impact costs
Related: market impact costs
Related: Relative strength
Related: Relative strength
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of
Individuals who respond to rates and prices by acting as though they have no influence on them.
The market has already incorporated information, such as a low dividend, into the price of a stock.
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
price of a share of common stock on the date shown. Highs and lows are based on the highest and
Adjustment mechanism under the classical gold standard whereby
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