- Branche: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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Selling common stock/convertibles in one company and reinvesting the proceeds in as many shares of (1) another type of security issued by the company, or (2) another security of the same type but of another company -- as can be bought with the proceeds of the sale. See: Equal shares swap.
Industry:Financial services
Principle that each asset contributes the same proportion to the equilibrium portfolio rate premium and risk.
Industry:Financial services
Applies mainly to convertible securities. Selling the underlying common and reinvesting the proceeds in as much of the convertible as can be converted into the number of shares of common just sold. See equal dollar swap.
Industry:Financial services
Special dividends received by investors of a firm for income the investor lost because the firm altered the dividends payment schedule.
Industry:Financial services
Exchange rate at which demand for a currency is equal to the supply of the currency in the economy.
Industry:Financial services
The slope of the capital market line (CML). Since the CML represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines the additional expected return needed to compensate for a unit change in risk. The equation of the CML is defined by the capital asset pricing model.
Industry:Financial services
The interest rate that clears the market. Also called the trade-clearing interest rate.
Industry:Financial services
