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Financial Terms | |
Oversubscription privilege |
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Definition of Oversubscription privilegeOversubscription privilegeIn a rights issue, arrangement by which shareholders are given the right to apply
Related Terms:Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. 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. American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Appraisal rightsA right of shareholders in a merger to demand the payment of a fair price for their shares, as Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. ![]() 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 Bellwether issuesRelated:Benchmark issues. Benchmark issuesAlso called on-the-run or current coupon issues or bellwether issues. In the secondary Blue-chip companyLarge and creditworthy company. ![]() Bottom-up equity management styleA management style that de-emphasizes the significance of economic Cheapest to deliver issueThe acceptable Treasury security with the highest implied repo rate; the rate that a Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. 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 Conversion RightTerm life insurance products are offered as non-convertible or convertible to a certain time in the future. The coversion right has a time limit, usually to the policy holder's age 60 or possibly even age 70. This right means that the policy holder has the right to convert their existing policy to another specific different plan of permanent insurance within the specified time period, without providing evidence of insurability. There is a slightly higher cost for a term policy with the conversion priviledge but it is a valuable feature should a policy holder's health change for the worst and continued insurance coverage becomes a necessity. Cost company arrangementarrangement whereby the shareholders of a project receive output free of 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. Cum rightsWith rights. 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 Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Dividend rightsA shareholders' rights to receive per-share dividends identical to those other shareholders receive. 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 Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms Emerging Issues Task Force (EITF)A special committee of the Financial Accounting Standards Board established to reach consensus of how to account for new and unusual financial transactions that have the potential for creating differing financial reporting practices. Emerging Issues Task Force (EITF)A separate committee within the Financial Accounting Standards Board composed of 13 members representing CPA firms and preparers of financial statements equivalent units of production (EUP)an approximation of the number of whole units of output that could have been Euroequity issuesSecurities sold in the Euromarket. That is, securities initially sold to investors Evening upBuying or selling to offset an existing market position. Ex-rightsIn connection with a rights offering, shares of stock that are trading without the rights attached. Ex-rights dateThe date on which a share of common stock begins trading ex-rights. Excess SupplyA situation in which supply exceeds demand. Finance CompanyCompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. 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. Fully diluted earnings per sharesEarnings per share expressed as if all outstanding convertible securities 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. Holding companyA corporation that owns enough voting stock in another firm to control management and 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. Inventory issueA transaction used to record the reduction in inventory from a location, IssueA particular financial asset. IssueWhen an item is approved and released for sale, or when a policy or sales contract is accepted. Issue AgeAge of an insured as at the policy issue date, using "age nearest" next birthday formula. Issue dateThe date a security is first offered for sale. That date usually Issue DateDate on which a policy is approved. Issued share capitalTotal amount of shares that are in issue. Related: outstanding shares. Issued sharesThe number of shares that the company has sold to the public. issued sharesshares that have been issued by the company. IssuerAn entity that issues a financial asset. 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. limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational Liquidation rightsThe rights of a firm's securityholders in the event the firm liquidates. Lock-up CDsCDs that are issued with the tacit understanding that the buyer will not trade the certificate. 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. Management/closely held sharesPercentage of shares held by persons closely related to a company, as 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 Multiple-issuer poolsUnder the GNMA-II program, pools formed through the aggregation of individual New-issues marketThe market in which a new issue of securities is first sold to investors. Office suppliesThe cost of the supplies used in running an office. Original issue discount debt (OID debt)Debt that is initially offered at a price below par. Outright rateActual forward rate expressed in dollars per currency unit, or vice versa. Outstanding sharesshares that are currently owned by investors. Outstanding sharesThe number of shares that are in the hands of the public. The difference between issued shares and outstanding shares is the shares held as treasury stock. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |