Stochastic process

Similar financial terms

Stochastic variable
A variable whose future value is uncertain.

Stochastic models
Liability-matching models that assume that the liability payments and the asset cash flows are uncertain.

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.

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.

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