Charge
The document evidencing mortgagesecurity required by Crown Law (law
derived from English law). A Fixed Charge refers to a defined set of
assets and is usually registered. A Floating Charge refers to other
assets which change from time to time (ie. cash, inventory, etc.),
which become a Fixed Charge after a default.
Dutch auction
Auction in which the lowest price necessary to sell the entire
offering becomes the price at which all securities offered are sold.
This technique has been used in Treasury auctions. Often used in risk
arbitrage. Auction system in which the price of an item (stock) is
gradually lowered until it meets a responsive bid (government T-bills)
or offer (corporate repurchase) and is sold. In a corporate repurchase,
a range of prices is set by the company within which shareholders are
invited to tender their shares. The tender offer is open for a specific
period of time (i.e., 20 days), and the quantity of stock to be
purchased is stated as well, subject to proration if more shares are
tendered than can be legally purchased under the stated terms (often an
additional amount equal to 20% of outstanding shares can be purchased).
The price paid is that at which the amount stated to be purchased can
be sold. Compare to double auction system.
John Katrichis
Federal Farm Credit System
A system chartered in 1971 through the farm credit act providing
farmers with credit services through a Federal Land Bank, a Federal
Intermediate Credit Bank, and a bank for cooperatives. See: Federal
Farm Credit Bank.
Bull spread
A spread strategy used in options and futures trading that is
designed to capitalize on expected price appreciation. A bull spread
using call options is created by buying a call option on an asset with
a certain strike price and selling a call option on the same asset with
a higher strike price (same expiration date). A bull spread with put
options is created by buying a put option with a low strike and selling
a put option with a high strike price (same expiration date). Less
frequently, the bull spread is implemented by buying the nearby futures
contract and selling the next out contract.
John Katrichis - Mortgage
Joint account
An agreement between two or more firms to share risk and financing
responsibility in purchasing or underwritingsecurities, or an account
owned jointly by two or more persons at a bank or brokerage house.
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