A minor and/or slow decline in the price of a market.
Similar financial termsTrue lease
A contract that qualifies as a valid lease agreement under the Internal Revenue code.
An arrangement whereby a firm leases its own equipment, such as Acer leasing its own computers, thereby competing with an independent leasing company.
Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.
Safe harbor lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the lessee, if the lessee could not use them, to a lessor that could use them.
Short-term, cancelable lease. A type of lease in which the period of contract is less than the life of the equipment and the lessor pays all maintenance and servicing costs.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.
A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender a lien on the assets and a pledge of the lease payments to secure the borrowing.
The payment per period stated in a lease contract.
A long-term rental agreement, and a form of secured long-term debt.
Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between entering and not entering into the lease arrangement.
A lease obligation that has to be capitalized on the balance sheet.
Cost of lease financing
A lease's internal rate of return.
Precious Metals Lease
A vehicle or technique used to finance precious metals inventories. It is related to the term structure of precious metals prices.
Usually means that one firm or person is making an offer directly to the shareholders in another firm to sell (tender) their shares at specified prices. Less otherwise stated in a company’s memorandum, obtaining 50% or more of the shares of the target firms is equivalent to having received shareholder approval. Tender offers can be friendly or hostile.
Method of selecting an investment banker for a new issue by offering the securities to the underwriter bidding highest
The price at which a market maker is prepared to sell a security. Also known as ask price.
Settlement and related processes where brokerage houses perform clerical operations that support, but do not include, the trading of stocks and other securities. Includes all written confirmation and settlement of trades, record keeping and regulatory compliance.
An investor who has a large stake in a company, but does not wish to play an active role in the management of the corporation.
Initial public offering (IPO)
IPO: Initial Public Offering (IPO) is a company's offering of newly issued shares from treasury to the general public. It is generally the first time that a company does so - making the transition from being a closed-door privately operated company to being a publicly traded, highly visible, entity. When doing an IPO, an underwriter, i.e. a stockbroker firm, handles the distribution of shares to the public. Effectively, the brokerage firm subscribes (underwrites) for the shares and then sells th ...
Tender offer premium
The premium offered above the current market price in a tender offer.
A company can create an independent company from an existing part of the company by selling or distributing new shares in the so-called spinoff.
In a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds to investors.
The sale of registered securities by the issuer (or the underwriters acting in the interests of the issuer) in the public market. Also called public issue.
A firm selling some of its own newly issued shares to investors.
PIBOR (Paris Interbank Offer Rate)
The deposit rate on interbank transactions in the Eurocurrency market quoted in Paris.
A buy-back to offset and effectively liquidate a prior sale of securities.
Offshore finance subsidiary
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or its foreign business.
Official unrequited transfers
Include a variety of subsidies, military aid, voluntary cancellation of debt, contributions to international organizations, indemnities imposed under peace treaties, technical assistance, taxes, fines, etc.
A statement published by an issuer of a new municipal security describing itself and the issue
Holdings of gold and foreign currencies by official monetary institutions.
A document that outlines the terms of securities to be offered in a private placement.
Indicates a willingness to sell at a given price.
Financing that is not shown as a liability in a company's balance sheet.
An offering of securities for which the terms, including underwriters' compensation, have been negotiated between the issuer and the underwriters.
A system, such as the arrangement between the CME and SIMEX, which allows trading positions established on one exchange to be offset or transferred on another exchange.
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in charts and used in technical analysis of stock price and market trends.
A public equity issue that is sold to all interested investors.
An offering of securities through competitive bidding.
Cash or barter. Business done without records as a means to avoid taxation.
Blitzkrieg tender offer
In the context of a takeover, refers to a tender offer that is priced so attractively that the tender is completed quickly.
Offshore is an international term meaning not only out of your country (jurisdiction) but out of the tax reach of your country of residence or citizenship; synonymous with foreign, transnational, global, international, transworld and multi-national, though foreign is used more in reference to the IRS.
Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or liquidating a short sale of futures through the purchase of an equal number of contracts of the same delivery month.