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Definition of Right
A short-lived (typically less than 90 days) call option for purchasing additional stock in a firm, issued
Goods may be returned to the seller by the purchaser without restrictions.
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
Term 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.
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
In connection with a rights offering, shares of stock that are trading without the rights attached.
The date on which a share of common stock begins trading ex-rights.
The rights of a firm's securityholders in the event the firm liquidates.
Actual forward rate expressed in dollars per currency unit, or vice versa.
Common stockholder's right to anything of value distributed by the company.
rights of individuals and companies to own and utilize property as they see fit and to receive
A sales agreement provision that permits a buyer to return products purchased
Issue of securities offered only to current stockholders.
Issuance of "rights" to current shareholders allowing them to purchase additional shares,
Shares trading with rights attached to them.
Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose
stock appreciation right
a right to receive cash, stock, or a combination of cash and stock based on the difference between a specified dollar amount per share of stock and the quoted market price per share at some future date
Transferable put right
An option issued by the firm to its shareholders to sell the firm one share of its
Uniformed Services Employment and Reemployment Rights Act of 1994
A federal act that minimizes the impact on people serving in the Armed Forces
The right to vote on matters that are put to a vote of security holders. For example the right to
Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's
the right (usually by virtue of position or rank) to use resources to accomplish a task or achieve an objective
Packages that involve the exchange of more than two currencies against a base currency at
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
The contract that sets forth the promises of a corporate bond issuer and the rights of
An option that gives the right to buy the underlying futures contract.
An option contract that gives its holder the right (but not the obligation) to purchase a specified
A contract that gives the holder the right to buy an asset for a
right to buy an asset at a specified exercise price on or before the exercise date.
An embedded option granting a bond issuer the right to buy back all or part of the issue prior
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The
A financial security such as a bond with a call option attached to it, i.e., the issuer has the right to
A lease in which the lessee obtains some ownership rights over the asset
That part of the capital stock of a corporation that carries voting rights and represents
A formal written statement of the rights and obligations of each party to a transaction.
One side of a journal entry, usually depicted as the right side.
Date of record
Date on which holders of record in a firm's stock ledger are designated as the recipients of
A financial instrument that is based on some underlying asset.
As the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.
Dollar Cost Averaging
A way of smoothing out your investment deposits by investing regularly. Instead of making one large deposit a year into your RRSP, you make smaller regular monthly deposits. If you are buying units in a mutual fund or segregated equity fund, you would end up buying more units in the month that values were low and less units in the month that values were higher. By spreading out your purchases, you don't have to worry about buying at the right time.
An option that is part of the structure of a bond that provides either the bondholder or
Securities that give the holder the right to buy or sell a specified number of shares of stock, at
Security that grants the security holder the right to exchange the security for the
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of
The official seizure by a government of private property. Any government has the right to
Fair price provision
Foreign currency option
An option that conveys the right to buy or sell a specified amount of foreign
Agreement to buy or sell a set number of shares of a specific stock in a designated future
A financial chart usually used to plot the high, low,
The date on which holders of record in a firm's stock ledger are designated as the
The pledge of property and assets to secure a loan. Hypothecation does not transfer title, but it does provide the right to sell the hypothecated property in the event of default.
The right of the homeowner to prepay, or call, the mortgage at any time.
Agreement between lender and borrower which details specific terms of the bond issuance.
In England in the 1700's it was popular to bet on the date of death of certain prominent public figures. Anyone could buy life insurance on another's life, even without their consent. Unfortunately, some died before it was their time, dispatched prematurely in order that the life insurance proceeds could be collected. In 1774, English Parliament passed a law which restricted the right to be a beneficiary on a life insurance contract to those who would suffer an economic loss when the life insured died. The law also provided that a person has an unlimited insurable interest in his own life. It is still a legal stipulation that an insurance contract is not valid unless insurable interest exists at the time the policy is issued. Life Insurance companies will not, however, issue unlimited amounts of coverage to an individual. The amount of life insurance which will be approved has to approximate the loss caused by the death of the individual and must not result in a windfall for the beneficiary.
A legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual
A nonphysical asset with a life greater than one year. Examples are
Assets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises.
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
The right of a party to a contract to take possession of an asset unless payment under the contract is received in full. A lien must be registered under the various provincial laws in order to be valid and enforceable.
Some insurance companies include this benefit option at no cost to their policy holders. The insurer considers on a case to case basis, the need for insurance funds before death. If the insured can demonstrate a shortened life of less than two years and with some insurers one year, the insurer will consider releasing up to 50% or a maximum of $100,000 of the life insurance coverage held by the insured. Not all insurers offer this benefit for free. The need has resulted in specific stand alone living benefit/critical illness policies coming into existence. Look under "Different types of Life Insurance" for further information. You might have heard of "Viatical Settlements", the practice of seriously ill people selling the rights to their life insurance policies to third parties. This practice is common in the United States but has not caught on in Canada.
Outright ownership of a security or financial instrument. The
Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a
A right to buy or sell specific securities or commodities at a stated
right to buy or sell a specified property at a specified amount at some time in the future.
Also called the option premium, the price paid by the buyer of the options contract for the right
Also called the option writer , the party who grants a right to trade a security at a given price in
A contract that, in exchange for the option price, gives the option buyer the right, but not
In a rights issue, arrangement by which shareholders are given the right to apply
Anit-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the
Measure taken by a target firm to avoid acquisition;
The person who owns and holds all rights under the policy, including the power to name and change beneficiaries, make a policy loan, assign the policy to a financial institution as collateral for a loan, withdraw funds or surrender the policy.
A security that ranks junior to preferred stock but senior to common stock in the right to
Used in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members.
A security that shows ownership in a corporation and gives the holder a claim, prior to the
A type of stock that usually pays a fixed dividend prior to any distributions
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
Document intended to provide shareholders with information necessary to vote in an informed manner
A battle for the control of a firm in which the dissident group seeks, from the firm's other
An option granting the right to sell the underlying futures contract. Opposite of a call.
This security gives investors the right to sell (or put) fixed number of shares at a fixed price within
A contract that gives the holder the right to sell an asset for a
right to sell an asset at a specified exercise price on or before the exercise date.
Contract that grants the right to sell at a specified price at some time in the future.
Gives the holder of a floating-rate bond the right to redeem his note at par on the coupon
A financial tool in which the buyer has the right, or option, to enter into a swap as a floatingrate
qualified investments (Canada)
Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
This is a provision in some term insurance policies that allow the insured the right to renew the policy at a more favourable rate by providing updated evidence of insurability.
A claim for the right to return or the right to demand the return of a security that has been
In the event a person defaults on a loan, recourse is the right of a person to receive payment. Recourse could give the lender the ability to take possession of the borrowers assets.
Registered Pension Plan
Commonly referred to as an RPP this is a tax sheltered employee group plan approved by Federal and Provincial governments allowing employees to have deductions made directly from their wages by their employer with a resulting reduction of income taxes at source. These plans are easy to implement but difficult to dissolve should the group have a change of heart. Employer contributions are usually a percentage of the employee's salary, typically from 3% to 5%, with a maximum of the lessor of 20% or $3,500 per annum. The employee has the same right of contribution. Vesting is generally set at 2 years, which means that the employee has right of ownership of both his/her and his/her employers contributions to the plan after 2 years. It also means that all contributions are locked in after 2 years and cannot be cashed in for use by the employee in a low income year. Should the employee change jobs, these funds can only be transferred to the RPP of a new employer or the funds can be transferred to an individual RRSP (or any number of RRSPs) but in either scenario, the funds are locked in and cannot be accessed until at least age 60. The only choices available to access locked in RPP funds after age 60 are the conversion to a Life Income Fund or a Unisex Annuity.
Special drawing right, the name given to the "currency" of the IMF.
Seasoned new issue
A new issue of stock after the company's securities have previously been issued. A
Options: All option contracts of the same class that also have the same unit of trade, expiration date,
In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.
Amount paid to an underwriter who agrees to purchase any stock that is not subscribed to the
a right allowing the holder to purchase shares of common stock during some future time frame and at a specified price
A right to purchase a specific maximum number of shares at a specific
Conditional payments may be made by an insurance company to a disability insurance claimant who has a loss of income claim against a third party who caused or contributed to their disability, however, the insurance company has a right to seek reimbursement of any payments they made to the claimant either from the third party or from any judgement or settlement received by the claimant from the third party.
Price that the existing shareholders are allowed to pay for a share of stock in a rights offering.
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