Financial and Business Terms - from Cale to Call
Wednesday, June 3, 2009
- Calendar effect: The tendency of stocks to perform differently at different times, including such anomalies as the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.
- Call: An option that gives the right to buy the underlying futures contract.
- Call date: A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price.
- Call money rate: Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge.
- Call option: An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.
- Call premium: Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.
- Call price: The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date.
- Call protection: A feature of some callable bonds that establishes an initial period when the bonds may not be called.
- Call price: The price for which a bond can be repaid before maturity under a call provision.
- Call provision: An embedded option granting a bond issuer the right to buy back all or part of the issue prior to maturity.
- Call risk: The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
- Call swaption: A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating rate payer.
- Callable: A financial security such as a bond with a call option attached to it, i.e., the issuer has the right to call the security.
Labels: Dictionary, Financial and Business Terms
posted @ 1:45 PM,
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Avalised Bank Draft
Monday, June 1, 2009
A Bill of Exchange to which a Guarantee is added by a bank to an accepted term Bill of Exchange by endorsing the bill ‘Good per aval’ the avalising bank becomes obligated to pay the draft at maturity if the drawee / acceptor fails to do so.
Labels: Dictionary, Financial and Business Terms
posted @ 10:27 PM,
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