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Financial Terms | |
Hit |
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Definition of HitHitA dealer who agrees to sell at the bid price quoted by another dealer is said to "hit" that bid.
Related Terms:White knightA friendly potential acquirer of a firm sought out by a target firm that is threatened by a less white knightFriendly potential acquirer sought by a target company threatened by an unwelcome suitor. bar codea group of lines and spaces arranged in a special Down-and-in optionBarrier option that comes into existence if asset price hits a barrier. Down-and-out optionBarrier option that expires if asset price hits a barrier. Multirule systemA technical trading strategy that combines mechanical rules, such as the CRISMA AcquirerA firm or individual that is acquiring something. ![]() Affirmative covenantA bond covenant that specifies certain actions the firm must take. 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. 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. 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 BidderA firm or person that wants to buy a firm or security. Blue-chip companyLarge and creditworthy company. ![]() 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 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. 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. CashoutRefers to a situation where a firm runs out of cash and cannot readily sell marketable securities. Clean priceBond price excluding accrued interest. Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Company-specific riskRelated: Unsystematic risk ![]() Companyspecific RiskSee asset-specific risk Competitive biddingA securities offering process in which securities firms submit competing bids to the Conditional SellerOne of two parties to a conditional sale agreement, the other being the conditional buyer. 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 Convertible priceThe contractually specified price per share at which a convertible security can be Cost company arrangementArrangement whereby the shareholders of a project receive output free of Crowding OutDecreases in aggregate demand which accompany an expansionary fiscal policy, dampening the impact of that policy. Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Days' sales outstandingAverage collection period. DealerAn entity that stands ready and willing to buy a security for its own account (at its bid price) or sell DealerA 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. Dealer loanOvernight, collateralized loan made to a dealer financing his position by borrowing from a Dealer marketA market where traders specializing in particular commodities buy and sell assets for their Dealer optionsOver-the-counter options, such as those offered by government and mortgage-backed Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of 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. 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. Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Escalating Price OptionA nonqualified stock option that uses a sliding scale for Exercise priceThe price at which the underlying future or options contract may be bought or sold. Exercise priceThe price set for buying an asset (call) or selling an asset (put). Fair market priceAmount at which an asset would change hands between two parties, both having Fair priceThe equilibrium price for futures contracts. Also called the theoretical futures price, which equals Fair price provisionSee:appraisal rights. Fallout riskA type of mortgage pipeline risk that is generally created when the terms of the loan to be Feasible target payout ratiosPayout ratios that are consistent with the availability of excess funds to make FIFO (First In, First Out)An inventory valuation method that presumes that the first units received were the first ones Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. FirmRefers to an order to buy or sell that can be executed without confirmation for some fixed period. Also, Firm commitment underwritingAn undewriting in which an investment banking firm commits to buy the Firm's net value of debtTotal firm value minus total firm debt. Firm-specific riskSee:diversifiable risk or unsystematic risk. First in, first-out costing method (FIFO)A process costing methodology that assigns the earliest First-In-First-Out (FIFO)A method of valuing the cost of goods sold that uses the cost of the oldest item in First-in, first-out (FIFO)A method of accounting for inventory. First-in, first-out (FIFO)An inventory valuation method under which one assumes that the First-In, First-Out (FIFO) Inventory MethodThe inventory cost-flow assumption that Fixed price basisAn offering of securities at a fixed price. Fixed-price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Flat price riskTaking a position either long or short that does not involve spreading. Foreign exchange dealerA firm or individual that buys foreign exchange from one party and then sells it to Freight outThe transportation cost associated with the delivery of goods from a company Full-Employment OutputThe level of output produced by the economy when operating at the natural rate of unemployment. Full-payout leaseSee: financial lease. Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. Futures priceThe price at which the parties to a futures contract agree to transact on the settlement date. Harmless warrantWarrant that allows the user to purchase a bond only by surrendering an existing bond High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. Holding companyA corporation that owns enough voting stock in another firm to control management and Informationless tradesTrades that are the result of either a reallocation of wealth or an implementation of an input-output coefficienta number (prefaced as a multiplier Input-output tablesTables that indicate how much each industry requires of the production of each other Insurance CompanyA firm licensed to sell insurance to the public. Intercompany loanLoan made by one unit of a corporation to another unit of the same corporation. Intercompany transactionTransaction carried out between two units of the same corporation. Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Investor falloutIn the mortgage pipeline, risk that occurs when the originator commits loan terms to the Invoice priceThe price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered. Last-In-First-Out (LIFO)A method of valuing inventory that uses the cost of the most recent item in Last-in, first-out (LIFO)An inventory costing methodology that bases the recognized cost of Last-in, first-out (LIFO)An inventory valuation method under which one assumes that the Last-In, First-Out (LIFO) Inventory MethodThe inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory Last-in, first-out (LILO)A method of accounting for inventory. Law of one priceAn economic rule stating that a given security must have the same price regardless of the law of one priceTheory that prices of goods in all countries should be equal when translated to a common currency. LesseeAn entity that leases an asset from another entity. LesseeThe entity that contracts to make rental payments to a lessor in exchange for the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |