Finance Repurchase of stock by a firm of its own stock from a potential bidder.

Finance Device to pay cash to firm's shareholders that provides more preferable tax treatment for shareholders than dividends.

Finance Process of replacing outstanding bonds, typically to issue new securities at a lower interest rate than those replaced.

situation in which a debt restructuring plan which is not supported by the required majority in each affected class is nonetheless confirmed by a judicial or administrative authority

Finance Procedure whereby the number of outstanding stock shares is reduced.

Finance Financial restructuring of a failed firm.

Finance Process of reinvesting each interest payment to earn more interest.

Finance Interest compounded continuously, rather than at fixed intervals.

Finance Official government act that produces a substantial increase in an exchange rate usually overnight.

Finance Calculation of variance for an economic variable that is conditioned upon a given information set.

Finance Weighted sum of the covariances and variances of the assets in a portfolio.

Finance A variable that is used in regression analysis that is classified as either a zero or a one, for qualitative variables.

Finance A quantity that may take any of a range of values (either continuous or discrete) that cannot be predicted with certainty but only described probabilistically.

Finance Referred to in regression analysis to represent the variable that is dependent on one or more other variables.

Finance Requirement in a futures contract that traders realize gains and losses each trading day.

Finance Simultaneous purchase and sale of identical amounts of a currency for different value dates in the foreign exchange market.

Finance Agreement to exchange one currency for another at a specified exchange rate and date. Banks normally act as intermediaries.

Finance Exchange between two counter parties of fixed rate interest in one currency for fixed rate interest in the other.

Finance Swap designed to allow a floating rate borrower with a pre-set amortization schedule to swap against a fixed exchange rate.

Finance One floating rate is exchanged for a floating rate calculated on a different basis.

Finance Swap of fixed rate dollars against floating rate dollars with the latter having a maximum and minimum return.

Finance Process whereby creditors exchange bank debt for equity interest in assets owned by the debtors. Extensively conducted by banks holding debt of less developed countries.

Finance Swap arranged now with a specified fixed-rate which will commence at a future date.

Finance Swap with an option to terminate early.

A basket default swap is similar to a single entity default swap except that the underlying is a basket of entities rather than one single entity. There are several types of basket default swaps. The popular ones are first-to-default, n-th-to-default, n-out-of-m-to-default and all-to-default swaps. With a single entity, a credit event is usually a default of the entity. With a first-to-default swap, a credit event occurs the first time any of the entities defaults.

A specific kind of counterparty agreement which allows the transfer of third party credit risk from one party to the other. One party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange of regular periodic payments (essentially an insurance premium). If the third party defaults, the party providing insurance will have to purchase from the insured party the defaulted asset. In turn, the insurer pays the insured the remaining interest on the debt, as well as the principal.

Finance Exchange between two counter parties of fixed rate interest for floating rate interest in the same currency.

Finance Swap from floating to fixed rate interest designed to coincide with a planned drawdown schedule typical of some project financing.

Finance Swap transaction for value today with the reverse transaction taking place the next business day.

Finance Financial intermediaries who perform a range of services, including aiding in the sale of securities, facilitating mergers and other corporate reorganizations, acting as brokers to both individual and institutional clients and trading for their own accounts.

Finance Use of geographically dispersed collection centres to speed up the collection of accounts receivable.

Finance Banking activity that accepts deposits and makes loans in currencies other than that of the country of location of the bank.

Finance Optimization of cash flows and investment of excess cash.

Finance Consolidates cash management decisions for all MNC units, usually at the parent location.