Similar financial terms
Swap buy-backThe sale of an interest rate swap by one counterparty to the other, effectively ending the swap.
Protective put buying strategy
A strategy that involves buying a put option on the underlying security that is held in a portfolio.
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
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 ...
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 limit order
A conditional trading order that indicates a security may be purchased only at the designated price or lower.
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-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.
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.
Buy-back
Another term for a repo.
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.
Buyback
The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. Also used in the context of bonds. The purchase of corporate bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares that trade in market.
Management BuyIn (MBI)
This is when a small group of shareholders organise a take-over of a company and form a new management team. The opposite of a Management Buyout.
