(finance) the higher yield required for a risky investment as compared with a risk-free investment, or for accepting the likelihood that what was believed to be a profitable investment turns out to be a net loss, or a less profitable venture than expected.
(finance) the reverse floating rate note (RFRN, or “reverse floater” in financial jargon) is a particular type of bond that is settled partly at a fixed rate and partly at an adjustable rate ( see floating rate note). The variable rate is inversely (i.e. reverse) correlated with market rates. Therefore, if they decrease, the adjustable rate coupon paid by the RFRN increases, and vice-versa.
see Reverse floating rate note.
(finance) a particular convertible bond where the conversion of the bond into shares does not grant a right to the subscriber, but a right of the issuer, which, when specific circumstances occur, may reimburse the principal by delivering shares instead of paying money.
(commercial law) a mandatory purchase offer made by anyone who acquires more than 90% of the ordinary share capital of a listed company. This obligation was mandated by lawmakers in order to protect minority shareholders in the event of delisting caused by the impossibility to ensure regular trading.
(finance) a transaction on short-term financing and investing instruments carried out through the temporary exchange of fixed-income securities, particularly government securities. A “repo” or “swap” is the financing instrument used by those who need liquidity. Conversely, repos or swaps are short-term investments for those who provide liquidity.
see Real exchange rate.
(finance) a market that satisfies the minimum EU standards established by Title III of the MiFID Directive.
(commercial law) class of stock whose owners might not have requested them, but apparently received them on a gratuitous basis. They may be distributed by companies that have resolved in favour of a genuine reduction of capital.
see Government borrowing requirements.
(finance) an investor that rapidly accumulates a controlling interest in healthy listed companies at a good price, thereby acquiring a majority of voting shares at the shareholders’ meeting. He installs new management, separately liquidates the most profitable branches of business, and disposes of the rest by selling his remaining shares to the first buyer.