Dual track process
A process where the seller of a company postpones the decision of doing an ipo or trade sale. The divestment method that yields the most value (adjusted for execution risks) is chosen prior to the official listing notification (application) to the stock exchange |
Similar financial terms
Dual-class stockTwo (or more) classes of common stock with equal rights to cash flows but with unequal voting rights
Retail investors individual investors
Small investors who commit capital for their personal account.
Residual value
Usually refers to the value of a lessor's property at the time the lease expires.
Residual method
A method of allocating the purchase price for the acquisition of another firm among the acquired assets.
Residual losses
Lost wealth of the shareholders due to divergent behavior of the managers.
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable.
Residual assets
Assets that remain after sufficient assets are dedicated to meet all senior debtholder's claims in full.
Residuals
(a) Parts of stock returns not explained by the explanatory variable (the market-index return). They measure the impact of firm-specific events during a particular period. (b) Remainder cash flows generated by pool collateral and those needed to fund bonds supported by the collateral.
IRA (Individual Retirement Account)
A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds, or mutual funds.
Variance minimization approach to tracking
An approach to bond indexing that uses historical data to estimate the variance of the tracking error.
Tracking error
In an indexing strategy, the difference between the performance of the benchmark and the replicating portfolio.
Mommy track
Damaging, dead end career status often afforded people with family responsibilities.
Wiener Process
The wiener process is a stochastic process used in option value calculations where the change in a variable during each short period of time of length has a normal distribution with a mean equal to zero and a variance equal to length.
Stochastic process
An equation describing the probabilistic behavior of a stochastic variable.
Price discovery process
The process of determining the prices of the assets in the marketplace through the interactions of buyers and sellers.
Corporate processing float
The time that elapses between receipt of payment from a customer and the depositing of the customer's check in the firm's bank account; the time required to process customer payments.
Automatic Data Processing (ADP)
A private company that acts as an intermediary to perform proxy services for several banks and brokers. Distributes proxy material to beneficial owners, tabulates the returned proxies, and provides the Corporation or its tabulator compiled reports of the tabulation results. ADP also distributes quarterly reports and other corporate information to the beneficial owners.
