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Definition of runup
the 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.
Abrams’ model for calculating DLOM based on the interaction of discounts from four economic components.
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
Requirement that none of an order be executed unless all of it can be executed at the specified price.
An arrangement whereby a security issue is canceled if the underwriter is unable
Date on which particular news concerning a given company is announced to the public.
The annual rate of return that when compounded t times, would have
An option is at-the-money if the strike price of the option is equal to the market price of the
The ratio of accounts receivables to sales, or the total
The ratio of net income before taxes to net sales.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
spread The difference between the bid and asked prices.
A firm or person that wants to buy a firm or security.
Also called the broker loan rate , the interest rate that banks charge brokers to finance
A securities offering process in which securities firms submit competing bids to the
The length of the time period (for example, a quarter in the case of quarterly
The length of time for which the customer is granted credit.
The period during which a customer can deduct the discount from the net amount of the bill
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
Dow Jones industrial average
This is the best known U.S.index of stocks. It contains 30 stocks that trade on
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
An agreement permitting a bank customer to borrow either domestic dollars from the
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
The time interval over which a money manager's performance is evaluated.
Excess of the purchase price over the fair market value of the net assets acquired under purchase
Length of time that an individual holds a security.
Holding period return
The rate of return over a given period.
Money that moves across country borders in response to interest rate differences and that moves
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
A put option that has a strike price higher than the underlying futures price, or a call option
Law of one price
An economic rule stating that a given security must have the same price regardless of the
Make a market
A dealer is said to make a market when he quotes bid and offered prices at which he stands
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.
Money center banks
Banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.
Related: Investment management.
Related: Investment manager.
Money markets are for borrowing and lending money for three years or less. The securities in
Money market demand account
An account that pays interest based on short-term interest rates.
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the
Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money rate of return
Annual money return as a percentage of asset value.
M1-A: Currency plus demand deposits
A portfolio strategy in which a portfolio is created that will be capable of
The period of time between the end of the discount period and the date payment is due.
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
In a Treasury auction, bidding for a specific amount of securities at the price, whatever it
One man picture
The picture quoted by a broker is said to be a one-man picture if both the bid and offered
A special case of the arbitrage pricing theory that is derived from the one-factor model by
1) A market in which only one side, the bid or asked, is quoted or firm.
A call option is out-of-the-money if the strike price is greater than the market price
In mutual funds, the ability to transfer shares between funds in the same family by
The option of postponing a project without eliminating the possibility of undertaking it.
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
willing to pay money to transfer risk from others.
Extended credit for customers who order goods in periods other than peak seasons.
Issue of a security for which there is an existing market. Related: Unseasoned issue.
Seasoned new issue
A new issue of stock after the company's securities have previously been issued. A
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Investment principle that states a firm should accept or reject a project by comparing it
The return of a portfolio over a shorter period of time than the evaluation period.
T-period holding-period return
The percentage return over the T-year period an investment lasts.
General term referring to transfer of control of a firm from one group of shareholder's to another
Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Advertisement listing the underwriters to a security issue.
Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.
Issue of a security for which there is no existing market. See: seasoned issue.
Time during which the SEC studies a firm's registration statement. During this time the firm
Realignment period of a temporary misaligned yield relationship that sometimes occurs in
Zero-one integer programming
An analytical method that can be used to determine the solution to a capital
The period of time for which financial statements are produced – see also financial year.
Earnings before interest and taxes (EBIT)
The operating profit before deducting interest and tax.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
The operating profit before deducting interest, tax, depreciation and amortization.
The costs that relate to a period of time.
Profit before interest and taxes (PBIT)
Periodic inventory system
An inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period.
earnings before interest and income tax (EBIT)
A measure of profit that
Average Collection Period
Average number of days necessary to receive cash for the sale of
A market that specializes in trading short-term, low-risk, very liquid
The number of years necessary for the net cash flows of an
the time between each interest computation
a decision that compares the cost of
the time it takes an investor to recoup an
cost other than one associated with making or acquiring inventory
a pay plan based on the time spent on the task rather than the work accomplished
the acquisition of managerial control of the corporation
Odd first or last period
Fixed-income securities may be purchased on dates
The excess of the price paid to buy another company over the book value of
A term used to describe a situation in which a business combination
The time period for which transactions are compiled into a set of financial statements.
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