SIT

Similar financial terms

Acquisition
The purchase of a controlling interest in a firm, generally via a tender offer for the target shares.

AMEX Composite
The American Stock Exchange introduced a new AMEX Composite Index with a new ticker symbol, XAX, on 2 January 1997. The XAX is a market capitalization-weighted, price appreciation index, and replaced the AMEX Market Value Index (XAM) which, since its inception, has been calculated on a "total return basis" to include the reinvestment of dividends paid by AMEX companies. The new AMEX Composite Index is more comparable with other major indexes, which reflect only the price appreciation of their re ...

Overnight position
Trader's long or short position in a currency at the end of a trading day.

Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.

Acquisition of stock
:A merger or consolidation in which an acquirer purchases the acquiree's stock.

American Depositary Receipts (ADRs)
Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. "Unsponsored" ADRs do not receive such assistance. ADRs carry the same ...

Eurodollar demand deposit
Eurodollar demand deposit accounts are not often used or available, as the balances of such accounts would be volatile and the transaction costs incurred in such a service would reduce the overall efficiency and competitiveness of the eurodollar market. It is the latter factor that stimulates interest-rate-conscious corporate treasures and investment agencies to make eurodollar time deposits with banks in offshore centres.

Vertical acquisition
Acquisition in which the acquired firm and the acquiring firm are at different steps in the production process.

Transition phase
A phase of development in which the company's earnings begin to mature and decelerate to the rate of growth of the economy as a whole.

Time deposit
Interest-bearing deposit at a savings institution that has a specific maturity.

Taxable acquisition
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares.

Tax free acquisition
A merger or consolidation in which (a) the acquirer's tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (b) each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold.

Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or derivative security.

Short position
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought to close out the transaction. This technique is used when an investor believes the stock price will go down.

Sensitivity analysis
Analysis of the effect on a project's profitability due to changes in sales, cost, and so on.

Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited with the broker for each contract as a guarantee of fulfillment of the futures contract. It is not considered as part payment or purchase.

Savings deposits
Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand.

Probability density function
The probability function for a continuous random variable.

Positive covenant (of a bond)
A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.

Positive convexity
A property of option-free bonds whereby the price appreciation for a large upward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates.

Position diagram
Diagram showing the possible payoffs from a derivative investment.

Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position and the seller of a commodity is said to have a short position .

Perquisites
Personal benefits, including direct benefits, such as the use of a firm car or expense account for personal business, and indirect benefits, such as up-to-date office décor.

Open position
A net long or short position whose value will change with a change in prices.

Negotiated certificate of deposit
A large-denomination CD, generally $1MM or more, that can be sold but cannot be cashed in before maturity.

Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.

Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.

MBS Depository
A book-entry depository for GNMA securities. The depository was initially operated by MBSCC and is currently in the process of becoming a separately incorporated, participant-owned, limitedpurpose trust company organized under the State of New York Banking Law.

Long position
An options position where a person has executed one or more option trades where the net result is that they are an "owner" or holder of options (i. e. the number of contracts bought exceeds the number of contracts sold). Occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock."

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

Certificate of deposit (CD)
Also called a time deposit, this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD bears a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years.

Changes in Financial Position
Sources of funds internally provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures.

Clear a position
To eliminate a long or short position, leaving no ownership or obligation.

Composition
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.

Corporate acquisition
The acquisition of one firm by anther firm.

Earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

Positive Carry
The condition whereby a portfolio after financing considerations still generates a positive income.

Position liquidation
The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering.

Deposit Notes
A term deposit in a bank. Deposit notes, like medium-term notes, may serve as the basis for an equity or currency-linked risk management structure.

Market Index Deposits (MIDs)
Bank certificates of deposit or deposit notes with a return linked to the performance of an index, usually a stock market index.