Market-if-touched (MIT)

Similar financial terms

Exercise limit
The maximum number of option contracts that can be exercised within a five-day period.

Limit Order
An order that can be executed only at a specified price or one more favorable to the investor.

Limit Move
The maximum price move permitted by the exchange in a single trading session.

PLC (Public Limited Company)
Under UK law there must be a minimum of seven shareholders in a PLC. There is no maximum number of shareholders allowed. Shares in PLCs can be bought or sold on the Stock Market by the general public. By implication, most big companies choose this route to growth as it provides access to large amounts of capital that can be used for investment, expansion and acquisition. Although technically owned by the shareholders, its management determines the affairs of the company. The US equivalents are I ...

Advance commitment
A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price.

Unlimited liability
Full liability for the debt and other obligations of a legal entity. Generally, partners of a partnership and sole propietors have unlimited liability.

Stop-limit order
A stop order that designates a price limit. In contrast to the stop order, which becomes a market order once the stop is reached, the stop-limit order becomes a limit order once the stop is reached.

Smithsonian agreement
A revision to the Bretton Woods international monetary system which was signed at the Smithsonian Institution in Washington, D.C., U.S.A., in December 1971. Included were a new set of par values, widened bands to +/- 2.25% of par, and an increase in the official value of gold to US$38.00 per ounce.

Sell limit order
Conditional trading order that indicates that a security may be sold at the designated price or higher.

Production-flow commitment
An agreement by the loan purchaser to allow the monthly loan quota to be delivered in batches.

Primitive security
An instrument such as a stock or bond for which payments depend only on the financial status of the issuer.

Pit committee
A committee of the exchange that determines the daily settlement price of futures contracts.

Master limited partnership (MLP)
A publicly traded limited partnership.

Limited-tax general obligation bond
A general obligation bond that is limited as to revenue sources.

Limited-liability instrument
A security, such as a call option, in which the owner can only lose his initial investment.

Limited partnership
A partnership that includes one or more partners who have limited liability.

Limited partner
A partner who has limited legal liability for the obligations of the partnership.

Limited liability
Limitation of possible loss to what has already been invested.

Limitation on subsidiary borrowing
A bond covenant that restricts in some way a firm's ability to borrow at the subsidiary level.

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.

Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to merge or consolidate with another firm.

Limitation on liens
A bond covenant that restricts in some way a firm's ability to grant liens on its assets.

Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.

Limit price
Maximum price fluctuation

Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are treated equally with other orders in terms of priority of execution.

Buy limit order
A conditional trading order that indicates a security may be purchased only at the designated price or lower.

Commitment
A trader is said to have a commitment when he assumes the obligation to accept or make delivery on a futures contract.

Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.

Cost of limited partner capital
The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners.

Remuneration and Nomination Committee
A committee that advises the Supervisory Board in a company on compensation policies and the composition of the Supervisory Board and Executive Board. The committee also advises the Supervisory Board on the compensation packages of the members of the Executive Board and the Supervisory Board.

Daily price limit
The level within many commodity, futures, and options markets are allowed to rise or fall in a day. Exchanges usually impose a daily price limit on each contract.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.

Basel Committee on Banking Supervision
A committee that meets under the auspices of the Bank for International Settlements in Basel, Switzerland to set bank regulatory standards.

NedCo (Non-executive directors committee of BoE)
NedCo is a committee of the non-executive directors of the Bank of England. NedCo was established by the Bank of England Act 1998, and is responsible for reviewing the Bank's performance in relation to its objectives and strategy. They also determine the pay and conditions of the Governor, Deputy Governors and the four independent members of the Monetary Policy Committee.

Limited Company
A domestic business company with limited liabilities.

Limited Liability Company (LLC)
Consists of member owners and a manager, at a minimum. Similar to a corporation that is taxed as a partnership or as an S-corporation. More specifically, it combines the more favorable characteristics of a corporation and a partnership. The LLC structure permits the complete pass-through of tax advantages and operational flexibility found in a partnership, operating in a corporate-style structure, with limited liability as provided by the state's laws.

Limited liability partnership (LLP)
A form of the LLC favored and used for professional associations, such as accountants and attorneys.

Limited liability limited partnership (LLLP)
Intended to protect the general partners from liability. Previously, the general partner was a corporation to protect the principals from personal liability. Under the LLLP, an individual could be a general partner and have limited personal liability.

Statute of Limitations
The deadline after which a party claiming to be injured by the settlor may (should) no longer file an action to recover his or her damages.

Limit Move
A price that has advanced or declined the permissible limit during one trading session, as fixed by the rules of a contract market.

Stop Limit Order
A stop limit order is an order that goes into force as soon as there is a trade at the specified price. The order, however, can only be filled at the stop limit price or better.

Variable Price Limit
A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.

Admitted Assets
Assets admitted by state law to be included in an insurance company's annual statement. These assets are an important item when regulators measure insurance company solvency. They may include mortgages, stocks, bonds and real estate.