UBS
Union Bank of Switzerland. |
Similar financial terms
Substitution swapA swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but offers a higher yield.
Substitute sale
A method for hedging price risk that utilizes debt-market instruments, such as interest rate futures, or that involves selling borrowed securities as the primary assets.
Subsidiary
With the regards to the euromarkets, a subsidiary is foreign-based affiliate that is a separately incorporated entity under the host country's law.
Subscription price
Price that the existing shareholders are allowed to pay for a share of stock in a rights issue.
Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up.
Oversubscribed issue
Investors are not able to buy all of the shares or bonds they want, so underwriters must allocate the shares or bonds among investors. This occurs when a new issue is underpriced or in great demand because of growth prospects.
Offshore finance subsidiary
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or its foreign business.
Limitation on subsidiary borrowing
A bond covenant that restricts in some way a firm's ability to borrow at the subsidiary level.
Oversubscription
An oversubscription of shares on an IPO means that there was much more demand than supply of shares on an initial offering.
Undersubscribed
Having received fewer offers to buy than there are securities available for sale.
Subsidy
A financial contribution by government (including any form of income or price support) that also confers a benefit to the recipient (i.e., producers of goods or services or buyers of goods). Many types of government practices constitute a financial contribution, including traditional forms of subsidies such as grants and loans, as well as foregone revenues such as tax credits. Subsidies may also exist in preferential government procurement of goods.
