Rule 144a
sec rule allowing qualified institutional buyers to buy and trade unregistered securities. |
Similar financial terms
Administrative pricing rulesIRS rules used to allocate income on export sales to a foreign sales corporation.
Variance rule
Specifies the permitted minimum or maximum quantity of securities that can be delivered to satisfy a TBA trade. For Ginnie Mae, Fannie Mae, and Feddie Mac pass-through securities, the accepted variance is plus or minus 2.499999 percent per million of the par value of the TBA quantity.
Tick-test rules
SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors from destabilizing the price of a stock when the market price is falling. A short sale can be made only when either (a) the sale price of the particular stock is higher than the last trade price (referred to as an uptick trade) or (b) if there is no change in the last trade price of the particular stock, the previous trade price must be higher than the trade price that preceded it (referred to as a zero ...
Rule 415
Rule enacted in 1982 that permits firms to file shelf registration statements.
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs should be rejected.
Multirule system
A technical trading strategy that combines mechanical rules, such as the CRISMA (cumulative volume, relative strength, moving average) Trading System of Pruitt and White.
Rule-of-72
This is a very handy "rule" that lets you mentally calculate how long it takes you to double an investment (i.e. compounding), given a particular interest rate. You divide 72 by the interest rate in order to get the number of years. For example, a 7% interest rate would require just over 10 years for an investment to double in value. A 15% interest rate would take between 4 and 5 years to double, and so on.
Basic IRR rule
Accept the project if IRR is greater than the discount rate; reject the project is lower than the discount rate.
Bayes rule
Treating probability as a logic, Thomas Bayes defined the following:
Pr(A|B)=Pr(B|A)Pr(A)/Pr(B)
For example, probability that the weather was bad given that our friends played soccer can be calculated as: Pr(play soccer in the rain)Pr(rain)/Pr(play soccer).
