Target zone arrangement
A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates. |
Similar financial terms
Targeted repurchaseThe firm buys back its own stock from a potential bidder, usually at a substantial premium, to forestall a takeover attempt.
Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base-line increases in earnings occur.
Target firm
A firm that is the object of a takeover by another firm.
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.
Target surplus (or Tied Surplus)
The capital that must remain in a life company in order to support the business already on the books. Target surplus is an amount held over and above the reserves and is needed due to the uncertain nature of the level and timing of future insurance claims. This capital may not be used for dividend payouts to shareholders.
Arrangement Fee
Whilst some lenders charge an administration fee others may charge an arrangement fee. The arrangement fee is charged to cover administration and primarily reserving the funds for fixed rate and/or discounted rate mortgages. This fee may be paid separately added to the mortgage or in rarer cases taken from the mortgage loan.
Arrangement fee is commonly added to the spread in eurosyndicated and syndicated loans.
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of charge but agree to pay all operating and financing charges of the project.
Agency incentive arrangement
A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees.
