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Financial Terms | |
Lock-up CDs |
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Definition of Lock-up CDsLock-up CDscds that are issued with the tacit understanding that the buyer will not trade the certificate.
Related Terms:Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not. Back-up1) When bond yields and prices fall, the market is said to back-up. BankruptcyState of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from bankruptcyThe reorganization or liquidation of a firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. ![]() Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Block houseBrokerage firms that help to find potential buyers or sellers of large block trades. Block tradeA large trading order, defined on the New York Stock Exchange as an order that consists of Block votingA group of shareholders banding together to vote their shares in a single block. Blocked currencyA currency that is not freely convertible to other currencies due to exchange controls. Bottom-up equity management styleA management style that de-emphasizes the significance of economic Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. 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. 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 Drop lockAn arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms equivalent units of production (EUP)an approximation of the number of whole units of output that could have been Euro CDscds issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all Euro cds Evening upBuying or selling to offset an existing market position. Excess SupplyA situation in which supply exceeds demand. Floating supplyThe amount of securities believed to be available for immediate purchase, that is, in the Foreign Corrupt Practices Act (FCPA)a law passed by U.S. Congress in 1977 that makes it illegal for a U.S. company to engage in various “questionable” foreign payments and Full coupon bondA bond with a coupon equal to the going market rate, thereby, the bond is selling at par. Give upThe loss in yield that occurs when a block of bonds is swapped for another block of lower-coupon Group Life InsuranceThis is a very common form of life insurance which is found in employee benefit plans and bank mortgage insurance. In employee benefit plans the form of this insurance is usually one year renewable term insurance. The cost of this coverage is based on the average age of everyone in the group. Therefore a group of young people would have inexpensive rates and an older group would have more expensive rates. Group of five (G5/G-5) The five leading countries (France, Germany, Japan, United Kingdom, and the U.S.) that Group of seven (G7/G-7)The G-5 countries plus Canada and Italy. Group rotation managerA top-down manager who infers the phases of the business cycle and allocates High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. Legal bankruptcyA legal proceeding for liquidating or reorganizing a business. Level-coupon bondBond with a stream of coupon payments that are the same throughout the life of the bond. lock-box systemSystem whereby customers send payments to a post office box and a local bank collects and processes checks. Lock-outWith PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With LockboxA collection and processing service provided to firms by banks, which collect payments from a Locked marketA market is locked if the bid = ask price. This can occur, for example, if the market is Long coupons1) Bonds or notes with a long current maturity. Long coupons1) Bonds or notes with a long current maturity. Low-coupon bond refundingRefunding of a low coupon bond with a new, higher coupon bond. Mark-upThe amount added to a lower figure to reach a higher figure, expressed as a percentage of the markupthe period after an announcement of a takeover bid in which stock prices typically rise until a merger or acquisition is made (or until it falls through). MarkupAn increase in the cost of a product to arrive at its selling price. Money supplyM1-A: Currency plus demand deposits Office suppliesThe cost of the supplies used in running an office. Paid-Up AdditionsA type of insurance policy or annuity in which the owner receives dividends, typically increases the death. Paid-up CapitalThat part of the issued capital of a company that has been paid up by the shareholders. Pass-through coupon rateThe interest rate paid on a securitized pool of assets, which is less than the rate Pay-upThe loss of cash resulting from a swap into higher price bonds or the need/willingness of a bank or PickupThe gain in yield that occurs when a block of bonds is swapped for another block of higher-coupon bonds. Prepackaged bankruptcyA bankruptcy in which a debtor and its creditors pre-negotiate a plan or Pure yield pickup swapMoving to higher yield bonds. Rate lockAn agreement between the mortgage banker and the loan applicant guaranteeing a specified interest Raw material supply agreementAs used in connection with project financing, an agreement to furnish a Real Money SupplyMoney supply expressed in base-year dollars, calculated by dividing the money supply by a price index. runupthe period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will. Selling groupAll banks involved in selling or marketing a new issue of stock or bonds Set-upThe time required to make ready a machine or process for production, e.g. changing equipment setup costthe direct or indirect cost of getting equipment Setup costThe cluster of one-time costs incurred whenever a production batch is run, Start-up CostsCosts related to such onetime activities as opening a new facility, introducing Step-upTo increase, as in step up the tax basis of an asset. Step-up bondA bond that pays a lower coupon rate for an initial period which then increases to a higher SupermajorityProvision in a company's charter requiring a majority of, say, 80% of shareholders to approve Supplier CreditPeriod of delay allowed by a firm's supplier to pay its invoices. Frequently, the terms are : 2% discount on invoice if paid in 10 days or net if paid in 30 days. Supplier DiscountAn amount deducted from an invoice by a supplier in exchange for quick payment (a typical example might be a 2% discount if paid in 10 days or the full amount of the invoice in 30 days). SuppliesGeneral supplies used throughout a company and expensed at the time SupplyAn amount made available for sale, always associated with a given price. supply-chain managementthe cooperative strategic planning, Supply shockn event that influences production capacity and costs in an economy. Supply-Side EconomicsView that incentives to work, save, and invest play an important role in determining economic activity by affecting the supply side of the economy. Support levelA price level below which it is supposedly difficult for a security or market to fall. Take-up feeA fee paid to an underwriter in connection with an underwritten rights offering or an Time ClockA device used to stamp an employee’s incoming or outgoing time Uniform Interstate Family Support ActA federal Act specifying which jurisdiction Upstairs marketA network of trading desks for the major brokerage firms and institutional investors that UptickA term used to describe a transaction that took place at a higher price than the preceding transaction Uptick tradeRelated:Tick-test rules Variable rate CDsShort-term certificate of deposits that pay interest periodically on roll dates. On each roll Visible supplyNew muni bond issues scheduled to come to market within the next 30 days. Weighted average couponThe weighted average of the gross interest rate of the mortgages underlying the Zero coupon bondSuch a debt security pays an investor no interest. It is sold at a discount to its face price Zero-coupon bondA bond in which no periodic coupon is paid over the life of the contract. Instead, both the Zero-coupon BondA security that makes no interest payments; it is sold at a discount Zero-Coupon BondSee discount bond. Zero-coupon bond, or ZeroA bond that, instead of carrying a coupon, is sold Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |