- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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Life insurance that pays dividends to policyholders depending on the company's success as provided by few claims and profitable underwritings and investments.
Industry:Financial services
A distribution from an IRA before the owner reaches age 59-1/2. Generally, a 10% penalty tax is owed on such a distribution. Also known as an early distribution or an early withdrawal.
Industry:Financial services
Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions.
Industry:Financial services
(1) A bond sold above its par value. (2) The price of an option contract; also, in futures trading, the amount by which the futures price exceeds the price of the spot commodity. (3) For convertibles, amount by which the price of a convertible exceeds parity, and is usually expressed as a percentage. Suppose a stock is trading at $45, and the bond is convertible at a $50 stock price and the convertible bond trading at 105. A similar bond without the conversion feature trades at $90. In this case, the premium is $15, or 16.66%=(105-90)/90. If the premium is high, the bond trades like any fixed income bond; if low, like a stock. See: Gross parity, net parity. (4) For futures, excess of fair value of future over the spot index, which in theory will equal the Treasury bill yield for the period to expiration minus the expected dividend yield until the future's expiration. (5) For options, price of an option in the open market (sometimes refers to the portion of the price that exceeds parity). (6) For straight equity, price higher than that of the last sale or inside market. Related: Inverted market premium payback period. Also called break-even time; the time it takes to recover the premium per share of a convertible security.
Industry:Financial services
Used in the context of general equities. Investments representing an interest in a pool of funds or in other instruments, such as foreign securities, that allow participation in the rise or fall of a security or group of securities.
Industry:Financial services
A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal lending limit of an individual lender.
Industry:Financial services
An attempt to acquire a large portion of a company's stock to gain control by offering stockholders a premium over the market value for their shares.
Industry:Financial services
