Definition of With rights

With rights

Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's
rights issue.

Cum rights

With rights.

Rights-on

Shares trading with rights attached to them.

American shares

Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
issuer. The certificates represent claims to foreign equities.

Appraisal rights

A right of shareholders in a merger to demand the payment of a fair price for their Shares, as
determined independently.

Authorized shares

Number of Shares authorized for issuance by a firm's corporate charter.

Authorized shares

The number of Shares of stock that the company is legally authorized to sell.

Bargain-purchase-price option

Gives the lessee the option to Purchase the asset at a price below fair market
value when the lease expires.

Bellwether issues

Related:Benchmark issues.

Benchmark issues

Also called on-the-run or current coupon issues or bellwether issues. In the secondary
market, it's the most recently auctioned Treasury issues for each maturity.

Blue-chip company

Large and creditworthy company.

Builder buydown loan

A mortgage loan on newly developed property that the builder subsidizes during the
early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the
prevailing market loan rate for some period of time. The typical buydown is 3% of the interest-rate amount
for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown).

Buy

To Purchase an asset; taking a long position.

Buy-and-hold strategy

A passive investment strategy with no active buying and selling of stocks from the
time the portfolio is created until the end of the investment horizon.

Buy-back

Another term for a repo.

Buy in

To cover, offset or close out a short position. Related: evening up, liquidation.

Buy limit order

A conditional trading order that indicates a security may be Purchased only at the designated
price or lower.
Related: Sell limit order.

Buy on close

To buy at the end of the trading session at a price within the closing range.

Buy on margin

A transaction in which an investor borrows to buy additional Shares, using the Shares
themselves as collateral.

Buy on opening

To buy at the beginning of a trading session at a price within the opening range.

Buy/Sell Agreement

This 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.

Buy-side analyst

A financial analyst employed by a non-brokerage firm, typically one of the larger money
management firms that Purchase securities on their own accounts.

Buydowns

Mortgages in which monthly payments consist of principal and interest, with portions of these
payments during the early period of the loan being provided by a third party to reduce the borrower's monthly
payments.

Buying the index

Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
same return.

Buyout

Purchase of a controlling interest (or percent of Shares) of a company's stock. A leveraged buy-out is
done with borrowed money.

Cheapest to deliver issue

The acceptable Treasury security with the highest implied repo rate; the rate that a
seller of a futures contract can earn by buying an issue and then delivering it at the settlement date.

Closing purchase

A transaction in which the Purchaser's intention is to reduce or eliminate a short position in
a stock, or in a given series of options.

Common Shares

Are equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.

Company Acquisitions

Assets acquired to create money. May include plant, machinery and equipment, Shares of another company etc.

company cost of capital

Expected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations.

Company-specific risk

Related: Unsystematic risk

Companyspecific Risk

See asset-specific risk

Conditional Buyer

One of two parties to a conditional sale agreement, the other being the conditional seller.

Cost company arrangement

Arrangement whereby the shareholders of a project receive output free of
charge but agree to pay all operating and financing charges of the project.

Current-coupon issues

Related: Benchmark issues

Current issue

In Treasury securities, the most recently auctioned issue. trading is more active in current
issues than in off-the-run issues.

Day trading

Refers to establishing and liquidating the same position or positions within one day's trading.

Depository Trust Company (DTC)

DTC is a user-owned securities depository which accepts deposits of
eligible securities for custody, executes book-entry deliveries and records book-entry pledges of securities in
its custody, and provides for withdrawals of securities from its custody.

Direct stock-purchase programs

The Purchase by investors of securities directly from the issuer.

Dividend rights

A shareholders' rights to receive per-share dividends identical to those other shareholders receive.

Dual-currency issues

Eurobonds that pay coupon interest in one currency but pay the principal in a different
currency.

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
whose purpose is to reach a consensus on how to account for new and unusual financial transactions
that have the potential for creating differing financial reporting practices.

Equity Buy-Back

Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.

Euroequity issues

Securities sold in the Euromarket. That is, securities initially sold to investors
simultaneously in several national markets by an international syndicate. Euromarket.
Related: external market

Ex-rights

In connection with a rights offering, Shares of stock that are trading without the rights attached.

Ex-rights date

The date on which a share of common stock begins trading ex-rights.

Finance Company

company engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public.

Forward buying

The Purchase of items exceeding the quantity levels indicated
by current manufacturing requirements.

Fully diluted earnings per shares

Earnings per share expressed as if all outstanding convertible securities
and warrants have been exercised.

Holding company

A corporation that owns enough voting stock in another firm to control management and
operations by influencing or electing its board of directors.

Insider trading

trading by officers, directors, major stockholders, or others who hold private inside
information allowing them to benefit from buying or selling stock.

Insurance Company

A firm licensed to sell insurance to the public.

Intercompany loan

Loan made by one unit of a corporation to another unit of the same corporation.

Intercompany transaction

Transaction carried out between two units of the same corporation.

Inventory issue

A transaction used to record the reduction in inventory from a location,
because of its release for processing or transfer to another location.

Issue

A particular financial asset.

Issue

When an item is approved and released for sale, or when a policy or sales contract is accepted.

Issue Age

Age of an insured as at the policy issue date, using "age nearest" next birthday formula.

Issue date

The date a security is first offered for sale. That date usually
determines when interest payments, known as coupons, are made.

Issue Date

Date on which a policy is approved.

Issued share capital

Total amount of Shares that are in issue. Related: outstanding Shares.

Issued shares

The number of Shares that the company has sold to the public.

issued shares

Shares that have been issued by the company.

Issuer

An entity that issues a financial asset.

Last trading day

The final day under an exchange's rules during which trading may take place in a particular
futures or options contract. Contracts outstanding at the end of the last trading day must be settled by delivery
of underlying physical commodities or financial instruments, or by agreement for monetary settlement
depending upon futures contract specifications.

Leveraged buyout

The Purchase of one business entity by another, largely using borrowed
funds. The borrowings are typically paid off through the future cash flow of
the Purchased entity.

Leveraged buyout (LBO)

A transaction used for taking a public corporation private financed through the use
of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new
corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or
junk bonds. Investors can participate in an LBO through either the Purchase of the debt (i.e., Purchase of the
bonds or participation in the bank loan) or the Purchase of equity through an LBO fund that specializes in
such investments.

leveraged buyout (LBO)

Acquisition of the firm by a private group using substantial borrowed funds.

limited liability company

an organizational form that is a hybrid of the corporate and partnership organizational
forms and used to limit the personal liability of the owners;
it is typically used by small professional (such as accounting) firms

Liquidation rights

The rights of a firm's securityholders in the event the firm liquidates.

make-or-buy decision

a decision that compares the cost of
internally manufacturing a component of a final product
(or providing a service function) with the cost of purchasing
it from outside suppliers (outsourcing) or from another
division of the company at a specified transfer price

Management buyout (MBO)

Leveraged buyout whereby the acquiring group is led by the firm's management.

management buyout (MBO)

Acquisition of the firm by its own management in a leveraged buyout.

Management/closely held shares

Percentage of Shares held by persons closely related to a company, as
defined by the Securities and exchange commission. Part of these percentages often is included in
Institutional Holdings -- making the combined total of these percentages over 100. There is overlap as
institutions sometimes acquire enough stock to be considered by the SEC to be closely allied to the company.

Mathematical programming

An operations research technique that solves problems in which an optimal
value is sought subject to specified constraints. Mathematical programming models include linear
programming, quadratic programming, and dynamic programming.

mathematical programming

a variety of techniques used
to allocate limited resources among activities to achieve a
specific objective

Minimum purchases

For mutual funds, the amount required to open a new account (Minimum Initial
Purchase) or to deposit into an existing account (Minimum Additional Purchase). These minimums may be
lowered for buyers participating in an automatic Purchase plan

Money purchase plan

A defined benefit contribution plan in which the participant contributes some part and
the firm contributes at the same or a different rate. Also called and individual account plan.

Multiple-issuer pools

Under the GNMA-II program, pools formed through the aggregation of individual
issuers' loan packages.

New-issues market

The market in which a new issue of securities is first sold to investors.

Open-market purchase operation

A systematic program of repurchasing Shares of stock in market
transactions at current market prices, in competition with other prospective investors.

open purchase ordering

a process by which a single Purchase
order that expires at a set or determinable future
date is prepared to authorize a supplier to provide a large
quantity of one or more specified items on an as-requested
basis by the customer

Opening purchase

A transaction in which the Purchaser's intention is to create or increase a long position in
a given series of options.

Original issue discount debt (OID debt)

Debt that is initially offered at a price below par.

Outstanding shares

Shares that are currently owned by investors.

Outstanding shares

The 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.

outstanding shares

Shares that have been issued by the company and are held by investors.

Oversubscribed issue

Investors are not able to buy all of the Shares or bonds they want, so underwriters must
allocate the Shares or bonds among investors. This occurs when a new issue is underpriced or in great demand
because of growth prospects.

Parent company

A company that retains control over one or more other companies.

Performance shares

Shares of stock given to managers on the basis of performance as measured by earnings
per share and similar criteria. A control device used by shareholders to tie management to the self-interest of
shareholders.

Preferred shares

Preferred Shares give investors a fixed dividend from the company's earnings. And more
importantly: preferred shareholders get paid before common shareholders. See: preferred stock.

Preferred Shares

Are equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends.

Presold issue An issue

that is sold out before the coupon announcement.

Program trading

Trades based on signals from computer programs, usually entered directly from the trader's
computer to the market's computer system and executed automatically.

Property rights

rights of individuals and companies to own and utilize property as they see fit and to receive
the stream of income that their property generates.

Protective put buying strategy

A strategy that involves buying a put option on the underlying security that is
held in a portfolio. Related: Hedge option strategies

Purchase

To buy, to be long, to have an ownership position.

Purchase accounting

Method of accounting for a merger in which the acquirer is treated as having Purchased
the assets and assumed liabilities of the acquiree, which are all written up or down to their respective fair
market values, the difference between the Purchase price and the net assets acquired being attributed to goodwill.

Purchase agreement

As used in connection with project financing, an agreement to Purchase a specific
amount of project output per period.

Purchase Agreement

This legal document records the final understanding of the parties with respect to the proposed transaction.

Purchase and sale

A method of securities distribution in which the securities firm Purchases the securities
from the issuer for its own account at a stated price and then resells them, as contrasted with a best-efforts sale.

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