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FinRAD_Financial_Readability_Assessment_Dataset

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1
terms
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156
definitions
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15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
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gunning_fog
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0.4
56
SUBSCRIPTION AGREEMENT
An agreement between the LEAD MANAGER, SYNDICATE members, and an ISSUER to offer SECURITIES at the issue price less an agreed SELLING CONCESSION. The agreement delineates instances where the transaction can be cancelled (through FORCE MAJEURE) and con- tains details related to TAXES, expenses, listing fees, COMMISSIONS, and STAMP DUTIES. A form of the subscription agreement is often included in the final PROSPECTUS. See also SYNDICATE AGREEMENT.
palgrave
0
45.96
11
13
14.44
13.9
11.3
11.375
12.69
SUBSCRIPTION WARRANT
A WARRANT granted to existing SHAREHOLDERS of a company’s COMMON STOCK, giving them the RIGHT to purchase SHARES of an ADD-ON issue, generally in an amount proportional to their current shareholdings, at a price that is below the current market. Subscription warrants may be issued when PREEMPTIVE RIGHTS do not exist. See also RIGHTS ISSUE.
palgrave
0
52.9
10.4
12.5
12.24
12.3
10
11.833333
13.14
SUBSIDIARY
A subholding of a PARENT company or HOLDING COMPANY, which may be engaged in a specific line of business operations and operate partly or totally apart from the rest of the organization. A subsidiary may have significant operations and resources in its own right, or may have to rely on the standing of its parent or holding company to secure its LIABILITIES.
palgrave
0
31.55
16.6
0
10.8
16.7
8.99
21.5
17.56
SUBSIDY
A form of financial assistance provided by a government authority in support of a specific venture or to cover a deficit resulting from the sale of goods or services at less than cost.
palgrave
0
37.98
16.2
0
9.88
16.8
10.06
23.5
20.47
SUCKER’S RALLY
See DEAD CAT BOUNCE.
palgrave
0
118.18
-2.3
0
0
0.6
0.2
1
1.6
SUITABILITY RISK
The RISK of loss arising from clients claiming financial injury on transactions with characteristics that might be regarded as “unsuit- able” (i.e., too speculative, risky, or leveraged, insufficient disclosure, ineffect- ive HEDGE). See also ULTRA VIRES.
palgrave
0
36.28
12.7
0
15.77
16.3
13.74
13
16.09
SUKUK
A rent certificate or BOND alternative used in ISLAMIC FINANCE which adheres to restrictions related to RIBA and GHARAR. See alsoIJARA, MURABAHA, SALAM.
palgrave
0
51.34
9
0
13.32
10.9
13.13
7.75
15.03
SUNK COST
An EXPENSE of a company that can never be recovered once incurred. It can be considered as an avoidable FIXED COST that must be ana- lyzed in the context of OPPORTUNITY COST.
palgrave
0
63.7
8.4
0
7.83
7.6
9.36
9
10.15
SUNSHINE TRADE
A large ORDER in a SECURITY that is made public before EXECUTION, in order to increase transparency and reduce any poten- tial for confusion.
palgrave
0
38.66
13.8
0
10.8
13.7
10.09
16
16.27
SUPER SENIOR
The top-rated TRANCHE of a SECURITIZATION, so named as it does not suffer any losses until all other tranches in a structure have absorbed pool losses, including those of the AAA-rated tranche. In this regard it is often known as a SUPER AAA.
palgrave
0
58.11
10.5
0
8.88
11.2
9.11
11.75
10.46
SUPERANNUATION
In the United Kingdom, a retirement PENSION FUND that is financed through employee deductions.
palgrave
0
48.81
9.9
0
14.84
12.8
11.1
9
14.17
SUPERCYCLE
See KONDRATIEFF WAVE.
palgrave
0
59.97
5.6
0
9.23
9.9
9.05
1.5
14.53
SUPERMAJORITY VOTE
An ANTITAKEOVER DEFENSE requiring a super- majority, rather than just simple majority, vote by SHAREHOLDERS on a pro- posed CORPORATE FINANCE or corporate control action.
palgrave
0
20.72
16.6
0
15.73
18.6
11.82
19.5
18
SUPERSINKER
A TRANCHE of a MORTGAGE-BACKED SECURITY or COLLATERALIZED MORTGAGE OBLIGATION with an average life that isshorter than other tranches in the series. The tranche is retired at an acceler- ated rate through early PREPAYMENTS.
palgrave
0
37.3
12.3
0
14.15
13.4
10.98
12.5
15.04
SUPPLY
The amount of a good or service that an individual or institution will be willing to provide at a given price. In general, supply increases with price. See also DEMAND, ELASTICITY.
palgrave
0
52.56
8.5
10.5
8.38
6.5
7.71
5.833333
9.28
SUPPORT BOND
See COMPANION BOND.
palgrave
0
59.97
5.6
0
5.35
6.8
14.31
1.5
14.53
SUPPORT LEVEL
A TECHNICAL ANALYSIS chart reflecting a SECURITY or INDEX price level that withstands repeated bouts of selling pressure. If the price breaches the support level after several repeated attempts, further down- ward moves may follow (as in a BREAKOUT). See also RESISTANCE LEVEL.
palgrave
0
48.5
10
12.5
12.87
11.5
10.59
8.833333
11.3
SURETY
(1) A GUARANTEE of CONTRACT fulfillment. (2) The party respon- sible for performing under a BOND should the original contract party DEFAULT on its obligations.PERFORMANCE BOND.
palgrave
0
28.17
15.8
0
14.92
18.9
12.82
18
19.63
SURPLUS LINES INSURANCE
INSURANCE cover that cannot be obtained from an ADMITTED INSURER and which must therefore be provided by a NONADMITTED INSURER. Also known as EXCESS .
palgrave
0
42.38
10.3
0
11.82
9.3
9.5
8.25
13.13
SURPLUS NOTES
SUBORDINATED DEBT that functions in a manner simi- lar to CONTINGENT , except that SECURITIES are issued directly by the company rather than through a TRUST. Surplus notes haveMATURITIES ranging from 10 to 30 years, and must generally be approved byINSURANCE REGULATORS.
palgrave
0
33.75
13.6
0
14.39
15.1
12.74
15
16
SURPLUS SHARE
In REINSURANCE, a PROPORTIONAL AGREEMENT where the REINSURER agrees to accept RISK on a variable percentage basis above the INSURER’s DEDUCTIBLE, up to a defined maximum; the amount the CEDING INSURER retains is referred to as a LINE and is expressed in monetary terms. See also QUOTA SHARE.
palgrave
0
47.12
12.7
0
11.9
14.5
11.74
16
16.27
SURRENDER VALUE
The amount of SAVINGS accumulated in a whole life INSURANCE POLICY, UNIT-LINKED POLICY, or similar vehicle, generated through the payment and INVESTMENT of periodic PREMIUMS, and payable to the INSURED upon termination of the policy. The amount of the surrender value depends on the performance of the specific INVESTMENTS underlying the policy. Also known as CASH .
palgrave
0
27.11
14.1
17.1
13.98
14
10.2
15.5
18.19
SUSPENSE ACCOUNT
An ACCOUNT that is used to record balances related to unresolved errors or incomplete transactions that are awaiting finalization.COMPLEX SWAP, DISCOUNT SWAP, NONPAR SWAP, PREMIUM SWAP, PURE CATASTROPHE SWAP.
palgrave
0
25.12
17
0
18.11
22.3
12.7
21.5
21.26
SWAPTION
An OVER-THE-COUNTER OPTION on a SWAP, available in the form of a RECEIVER and a PAYER . The purchaser of a swaption has the RIGHT, but not the obligation, to enter into an underlying swap transaction at a predetermined rate at a future time.
palgrave
0
49.65
11.7
0
8.47
11
9.11
14.5
14.18
SWAPTION ARBITRAGE
A common ARBITRAGE technique that seeks to exploit differences between the IMPLIED VOLATILITY of SWAPTIONS andCAPS/FLOORS.
palgrave
0
29.86
13.1
0
20.47
18.1
15.29
12
13.9
SWEEP
A service provided by certain BANKS to their customers, which takes excess cash balances out of deposit accounts and reinvests them in overnight funds, thereby generating a YIELD.Also know as END OF DAY SWEEP.
palgrave
0
45.43
15.4
0
12.66
20
10.9
20
15.95
SWEEP-TO-FILL ORDER
A MARKET ORDER which is divided into several individual orders to capture the best available price at that point in time, in order to ensure fast EXECUTION. The order gives greater weight to speed of execution than price. See also INTERMARKET SWEEP ORDER.
palgrave
0
48.5
10
11.2
10.32
9
8.39
8.166667
9.44
SWEEPER
See SNIFFER.
palgrave
0
77.91
2.9
0
-1.61
5.5
11.63
0
0.8
SWEETENER
See KICKER.
palgrave
0
77.91
2.9
0
-4.51
3.1
11.63
0
0.8
SWF
See SOVEREIGN WEALTH FUND.
palgrave
0
75.88
3.7
0
8.7
7.7
11.73
2
11.6
SWING LOAN
See BRIDGE LOAN.
palgrave
0
119.19
-2.7
0
-0.46
2.1
0.15
0.5
1.2
SWING TRADING
A TRADING strategy based on buying and selling SECURITIES for short periods of time (often intra-day) in order to take advan- tage of perceived overreactions. Swing trading is essentially a form of very short-term MOMENTUM TRADING. See also POSITION TRADING.
palgrave
0
41.06
10.8
12.5
12.46
11
10.22
8.333333
12.32
SWISSIE
The Swiss Franc.
palgrave
0
119.19
-2.7
0
-0.46
2.1
14.31
0.5
1.2
SWITCH TRADE
(1) A transaction that involves replacing one INVESTMENT with a different investment. (2) A process where an importer that is unable to make payment on goods purchased is permitted by the exporter to transfer the OBLIGATION to a second importer.
palgrave
0
30.88
18.9
0
12.31
22.8
11.15
27
21
SYMMETRIC PAYOFF
A PAYOFF PROFILE on a DERIVATIVE where the gain or loss is the same for given market price changes; the gain or loss may be linear or nonlinear. A FUTURE and a FORWARD are characterized by symmetric profiles, gaining or losing equally for a range of market prices. See also A, LINEAR PAYOFF, NONLINEAR PAYOFF.
palgrave
0
61.36
9.2
10.5
8.88
9.6
8.85
10.833333
10.23
SYNDICATE
(1) A group of FINANCIAL INSTITUTIONS that UNDERWRITES a NEW ISSUE of SECURITIES, typically by purchasing them at a DISCOUNT from the ISSUER and reselling them to INVESTORS at a fixed price in the PRIMARY MARKET. In some cases the syndicate will act as AGENT, placing securities through a BEST EFFORTS UNDERWRITING. (2) The process of sellingor distributing securities or LOANS. (3) A group of INSURERS or REINSURERS that agree to jointly underwrite a RISK exposure. (1) Also known as PURCHASE GROUP, SELLING GROUP, UNDERWRITING GROUP. (2) See also SYNDICATION. (3) See also POOL.
palgrave
0
23.77
21.6
0
12.26
26.5
11.85
32.5
25.18
SYNDICATED LOAN
A LOAN granted by a banking group to a corpor- ate BORROWER and then sold to smaller banks and hold-to-MATURITY INSTITUTIONAL INVESTORS. A syndicated loan is distinct from a PARTICIPATION LOAN, as the funding banks are known to the borrower. A syndicated loan can be structured as a REVOLVING CREDIT FACILITY, TERM LOAN, LETTER OF CREDIT facility, or ACQUISITION LINE. The syndicated loan is structured and managed by the ARRANGER.
palgrave
0
45.25
11.3
13
11.48
11.7
9.02
11.75
11.57
SYNDICATION
A process where a SYNDICATE UNDERWRITING a NEW ISSUE or a BANK arranging a LOAN sells portions of the OBLIGATION to other financial intermediaries. Syndication is a common means of distributing PRIMARY or SECONDARY OFFERINGS, and is used to supplement direct sales to INVESTORS.
palgrave
0
32.22
14.2
0
13.29
14.7
11.55
16.5
18.8
SYNERGY
The potential value that can be created by combining two firms, as in a MERGER or ACQUISITION. Synergies may be financial (e.g., increased DEBT capacity, TAX benefits, higher payback on CAPITAL INVESTMENTS) and/or operating (e.g., ECONOMIES OF SCALE, pricing power, market or geo- graphic expansion) in nature.
palgrave
0
30.7
14.8
0
13.23
16.8
13.2
17.75
18.76
SYNTHETIC CATASTROPHE BOND
An OPTION on a CATASTROPHE BOND that permits, but does not obligate, the ISSUER to launch a bond transaction if needed in order to HEDGE or transfer RISK exposures.COLLATERALIZED DEBT OBLIGATION (CDO) that is created on an unfundedCASH COLLATERALIZED DEBT OBLIGATION.
palgrave
0
12.94
21.6
0
14.87
25.2
12.99
29.5
24.2
SYNTHETIC CONVERTIBLE BOND
A SECURITY package issued by a company or FINANCIAL INSTITUTION that comprises of discounted SUB- ORDINATED DEBT and EQUITY WARRANTS, resulting in the same RISK and RETURN characteristics of a conventional CONVERTIBLE BOND. The individual components of the package can be decomposed and traded separately.
palgrave
0
14.8
16.8
0
16.13
17.1
12.47
19.25
22.33
SYNTHETIC CREDIT FACILITY
See SYNTHETIC LENDING FACILITY.INVESTMENT CONTRACT, NONPARTICIPATING GUARANTEED INVESTMENT CONTRACT.
palgrave
0
-73.03
25.7
0
38.31
31.2
16.36
8.5
25.82
SYNTHETIC LENDING FACILITY
A FORWARD commitment to purchase REVOLVING CREDIT AGREEMENTS or undrawn LOANS. The facility allows an INVESTOR to participate in an unfunded revolver or loan, receiving a COMMITMENT FEE while the facility remains undrawn, and requiring it to provide funding in the event the BORROWER elects to draw down. This is equivalent to the investor selling a PUT OPTION to the INTERMEDIARY on a REVOLVING CREDIT LINE or NOTE underwriting program arranged for a third party borrower. Also known as ASSET SWAPTION, SYNTHETIC CREDIT FACILITY.
palgrave
0
33.24
13.8
14.9
13.11
14.1
10.69
14.75
14.11
SYNTHETIC LONG POSITION
A combination of a LONG CALL OPTION and a SHORT PUT OPTION with identical STRIKE PRICES that replicates the economics of a LONG POSITION. See also SYNTHETIC SHORT POSITION.
palgrave
0
56.76
8.9
0
10.55
9.2
9.26
10.25
12.7
SYNTHETIC OPTION
An OPTION position created through the combin- ation of a LONG or SHORT option on an UNDERLYING SECURITY or ASSET and a long or short position in the same underlying security/asset.
palgrave
0
31.55
16.6
0
10.98
17
9.25
22.5
17.56
SYNTHETIC PRIME BROKERAGE
A service offered by certain PRIME BROKERS to institutional clients that makes use of TOTAL RETURN SWAPS to synthetically reproduce a desired PORTFOLIO.
palgrave
0
31.21
14.6
0
15.55
16.7
13.02
15.5
16.16
SYNTHETIC SHORT POSITION
A combination of a LONG PUT OPTION and a SHORT CALL OPTION with identical STRIKE PRICES that replicates the economics of a SHORT POSITION. See also SYNTHETIC LONG POSITION.
palgrave
0
56.76
8.9
0
10.55
9.2
9.26
10.25
12.7
SYNTHETIC UNDERLYING
An ASSET position created through the combin- ation of two LONG or SHORT OPTIONS on the same UNDERLYING SECURITY or ASSET.See also SYNTHETIC LONG POSITION, SYNTHETIC SHORT POSITION.
palgrave
0
17.68
17.8
0
14.1
18.5
10.1
23
18.34
SYSTEMATIC RISK
See NONDIVERSIFIABLE RISK.
palgrave
0
-24.64
17.4
0
18.92
17.8
14.31
1.5
14.53
SYSTEMIC RISK
RISKS that are imposed on an entire financial system and which have the possibility of creating significant financial damage.
palgrave
0
26.81
14.2
0
15.08
14.6
11.23
14.5
16.02
TAC BOND
See TARGETED AMORTIZATION CLASS BOND.
palgrave
0
32.56
10
0
15.4
12.2
13.36
3.5
18
TAG ALONG RIGHTS
Legal RIGHTS designed to protect MINORITY INTERESTS in the event of a TAKEOVER bid. If a bid occurs and majority SHAREHOLDERS tender their SHARES, then MINORITY INTEREST holders have the right to join on the same terms. Tag along rights must be specifically negoti- ated in a CORPORATE FINANCE transaction. See also DRAG ALONG RIGHTS.
palgrave
0
57.47
8.7
11.7
11.01
9.4
10.35
8.125
11.34
TAIL COVERAGE
INSURANCE coverage that extends beyond the end of the standard policy. Tail coverage is useful in the case of a CLAIMS MADE BASIS policy, which only provides restitution for claims received during the policyperiod.
palgrave
0
37.3
12.3
0
12.82
12.1
10.05
12
12.68
TAILGATING
A practice where a BROKER replicates a client’s TRADEin a proprietary account. Although tailgating is not strictly illegal (as is FRONTRUNNING), it can be regarded as unethical. See also COAT-TAILING.
palgrave
0
44.41
9.6
11.9
12.97
10.4
11.5
6.333333
12
TAILING A HEDGE
A process where an EXCHANGE-TRADED DERIVATIVEHEDGE is DISCOUNTED using a PRESENT VALUE FACTOR in order to takeaccount of the fact that exchange-traded positions are MARKED-TO-MARKETand settled every day.
palgrave
0
26.14
16.6
0
18.45
22.2
11.23
20
16.91
TAKE-OUT
The replacement of one form of FINANCING with another one,often associated with the replacement of a temporary BRIDGE LOAN with along-term BOND or LOAN.
palgrave
0
47.12
12.7
0
13.47
15.9
8.12
18
16.27
TAKE THE OFFER
A buyer’s willingness to accept the seller’s price on a transaction. Also known as LIFT THE OFFER. See also HIT THE BID.
palgrave
0
72.53
5
7.8
5.34
3.4
6.87
3.333333
6.56
TAKEDOWN
(1) An advance or drawing of funds by a BORROWER under a REVOLVING CREDIT FACILITY. (2) The amount of a NEW ISSUE of SECURITIES a SYNDICATE member agrees to purchase and resell to clients.
palgrave
0
36.97
16.6
0
8.72
17
12.29
22
19.48
TAKEOVER
A CORPORATE FINANCE transaction where one company offers to acquire another company in order to expand its client, product, or market scope, or achieve some other strategic goal. The transaction may be structured as a FRIENDLY or HOSTILE , and may be based on an all-cash offer, or a mix of cash and the acquiring com- pany’s SHARES. Hostile takeover attempts may be delayed or thwarted through ANTI DEFENSES and ANTI LAWS. See alsoTAKEOVER BID.
palgrave
0
52.7
10.5
11.7
10.91
11.4
10.1
11.625
10.1
TAKEOVER BID
The price an acquiring company is willing to pay for a TARGET company. The bid value is generally represented as a particular PREMIUM to the target’s share price. See also ANY-AND-ALL BID, TAKEOVER, TWO-TIER BID.
palgrave
0
51.14
9
11.9
9.72
8.4
8.28
7.166667
10.39
TAKEOVER VALUE
See BREAKUP VALUE.
palgrave
0
93.81
0.9
0
3.43
5.2
9.05
0.5
1.2
TAKING DELIVERY
The process where the buyer of an EXCHANGE-TRADED DERIVATIVE submits a notice to accept delivery of any physical ASSET under- lying the CONTRACT.
palgrave
0
31.21
14.6
0
13.29
15.3
10.96
15.5
14.42
TAP ISSUE
In the United Kingdom, an issue of GOVERNMENT BILLS sold directly to governmental entities without using GILT-EDGED MARKET MAKERS.
palgrave
0
26.81
14.2
0
16.01
15.8
12.06
13.5
13.92
TAPE
The listing of STOCK prices on an EXCHANGE, reflecting updates as new BIDS and OFFERS are executed.
palgrave
0
62.68
8.7
0
10.03
10.1
10.98
10.5
11.51
TARGET
A company that is the subject of an ACQUISITION offer from an ACQUIRER. See also ACQUISITION, BLACK KNIGHT, GRAY KNIGHT, HOSTILE TAKEOVER, WHITE KNIGHT.
palgrave
0
59.3
8
0
11.59
9.9
7.52
7
8.13
TARIFF
A TAX that is levied on goods that are imported into a country.
palgrave
0
83.66
4.8
0
4.16
3.5
6.71
6.5
8.28
TAX
An amount of MONEY that is levied by a government as a means of generating public REVENUES. Taxes may be applied to INCOME (includingwages, earnings, DIVIDENDS, INTEREST, CAPITAL GAINS), real estate and property, estates/inheritance, and goods and services (excise, AD VALOREM). See also PROGRESSIVE TAX, PROPORTIONAL TAX, REGRESSIVE TAX.
palgrave
0
38.01
12
14.1
14.61
14.6
11.21
11.833333
13.87
TAX AVOIDANCE
The process of seeking to minimize TAX paid to a gov- ernment authority through legal and legitimate use of the tax code and any LOOPHOLES. See also TAX EVASION, TAX SHELTER
palgrave
0
64.2
8.2
0
8.64
8
10.52
8.25
10.07
TAX BURDEN
The amount of TAX that an individual or organization pays after taking advantage of all relevant deductibility, CREDIT, and avoidance measures. See also TAX INCIDENCE.
palgrave
0
33.41
11.7
0
14.08
11.8
10.57
8.25
14.6
TAX CARRYBACK
A TAX benefit generated by applying eligible losses to a current tax LIABILITY. In the United States, capital or operating losses can be offset against profits for the 3 prior years. Also known as CARRYBACK LOSS. See also TAX CARRYFORWARD, TAX UMBRELLA.
palgrave
0
43.9
9.7
12.2
9.66
7.6
9.8
6.75
11.82
TAX CARRYFORWARD
A TAX benefit generated by applying eligible losses to a future tax LIABILITY. In the United States, losses can be carried forward to offset future profits for 5 years (capital losses) and 15 years (operating losses). Also known as CARRYFORWARD LOSS. See also TAX CARRYBACK, TAX UMBRELLA.
palgrave
0
42.58
10.3
12.2
10.19
8.7
9.6
7.375
11.53
TAX CREDIT
(1) A CREDIT, or benefit, granted to a person or organization paying TAXES which results in an effective reduction in the tax LIABILITY. A tax credit can be created by taking advantage of certain government incentives.(2) A credit toward interim tax payments made on amounts due in the future.
palgrave
0
29.69
15.2
0
10.97
14.4
10.97
17.25
17.15
TAX DEDUCTIBILITY
A transaction or event that permits a person or organ- ization paying TAXES to reduce taxes payable by reducing INCOME before applying the relevant tax rate.
palgrave
0
36.63
14.6
0
12.02
15.5
11.61
17
16.55
TAX EVASION
The process of seeking to minimize TAX paid to a govern- ment authority through illegal means, such as underreporting of INCOME or failing to disclose offshore ASSETS. See also TAX AVOIDANCE.
palgrave
0
55.74
9.3
0
11.77
10.8
10.52
8.75
11.36
TAX HAVEN
A jurisdiction that features a lower TAX rate, or even tax-free, environment as a way of fostering business and CAPITAL formation. In order to qualify for the tax benefits of such a haven, a person or organization must typically fulfill minimum residence or business requirements. Popular tax havens include the Cayman Islands, Bahamas, Liechtenstein, Monaco, and the Netherlands Antilles.
palgrave
0
34.56
13.3
15.5
14.16
14.8
11.3
14.5
16.69
TAX INCIDENCE
The party that ultimately bears the impact of TAXES, which may or may not be the person or organization nominally paying taxes. If the TAX BURDEN can be shifted to third parties through price increases on taxable goods and services, the tax incidence is indirectly spread out.
palgrave
0
47.62
12.5
0
10.91
13.4
9.84
14.75
14.51
TAX LOSS
A loss made in one period that can be used to offset previous or future INCOME via TAX CARRYBACK or TAX CARRYFORWARD provisions.
palgrave
0
48.13
12.3
0
9.52
11.8
10.27
16.5
17.9
TAX SHELTER
A legal business or INVESTMENT scheme or transaction that is intended to reduce a person’s or organization’s TAX LIABILITY. See also TAX AVOIDANCE.
palgrave
0
34.42
11.3
0
12.57
9.9
11.07
7.75
15.03
TAX SHIELD
A TAX benefit generated through INTEREST deductibility on LOANS, BONDS, and other DEBT funding instruments (i.e., interest EXPENSE is deducted from OPERATING INCOME before a tax rate is applied). In general, the higher the marginal corporate tax rate, the greater the benefits derived from the shield. The PRESENT VALUE of a tax shield is given as:⎡ D(r⎣where TR is the effective tax rate, D is total debt, and rdavg is the average cost of the debt. See also TAX UMBRELLA.
palgrave
0
51.18
11.1
14.2
9.98
11.7
10.16
13.75
14
TAX UMBRELLA
Any TAX transaction that is intended to decrease a com- pany’s effective tax rate, generally considered to include TAX CARRYBACKS, TAX CARRYFORWARDS, and TAX SHIELDS.
palgrave
0
29.18
15.4
0
14.8
17.8
12.46
19.5
21.2
TAX YEAR
See FISCAL YEAR.
palgrave
0
93.81
0.9
0
-0.46
2.1
9.05
0.5
1.2
TAXABLE EQUIVALENT YIELD
The YIELD on a TAX-free FIXED INCOME SECURITY grossed up to allow comparison with taxable INVESTMENT alter- natives. The taxable equivalent yield is generally computed via:(1 − TR)where yTF is the tax-free yield and TR is the effective tax rate. See also BOND EQUIVALENT YIELD, DISCOUNT YIELD, SIMPLE YIELD, YIELD TO CALL, YIELD TO MATURITY.
palgrave
0
52.9
10.4
13
11.6
12.3
10.29
12.166667
13.14
TAXABLE PERSON
Any individual, organization, or corporate entity that is subject to TAX on INCOME earned or, in a VALUE-ADDED TAX regime, tax on the TAXABLE SUPPLY.
palgrave
0
37.64
14.2
0
10.62
14.6
10.56
16.5
16.4
TAXABLE SUPPLY
In systems using a VALUE-ADDED TAX, the goods or ser- vices which are subject to TAX.
palgrave
0
80.62
6
0
6.38
7.2
9.36
7
6.4
TBA
See TO BE ANNOUNCED.
palgrave
0
92.8
1.3
0
0
0.6
7.78
1
1.6
TEAR-UP PRICE
The price at which a BANK or DEALER will close out, or buy out, a client’s DERIVATIVE transaction. The tear-up price is generally a function of the transaction’s current MARK-TO-MARKET value and a PROFIT SPREAD. Also known as UNWIND PRICE.
palgrave
0
66.44
7.3
10.5
9.67
8.8
8.24
7.333333
9.32
TEASER
A below-market INTEREST RATE on a LOAN used to entice an individual or company to borrow funds, or an above-market rate on a DEPOSITused to entice clients into placing funds. The favorable teaser rate generally lasts for up to several quarters and then reverts to normal market levels.Additional reference: Edwards and Magee (2001).
palgrave
0
27.66
16
0
12.65
16.7
10.91
18.75
15.88
TED SPREAD
See TREASURY-EURODOLLAR SPREAD.
palgrave
0
34.59
9.2
0
26.63
25.6
14.31
1.5
14.53
TEENY
The smallest trading unit in US TREASURY BONDS and AGENCY SECURITIES, i.e., 1/64th of $1.
palgrave
0
64.71
8
0
8.4
9.6
14.91
7.5
8.67
TEMPERATURE-LINKED BOND
An INSURANCE-LINKED SECURITY with COUPON INTEREST and/or PRINCIPAL REDEMPTION contingent on the level of cumulative temperatures in a particular city, group of cities, or region. The BOND provides INVESTORS with an alternative INVESTMENT opportun- ity and the ISSUER with a HEDGE or RISK TRANSFER mechanism. See alsoTEMPERATURE DERIVATIVE.
palgrave
0
29.86
13.1
15.9
16.76
15.2
13.31
13
18.9
TENDER
(1) The act of delivering SHARES of a company that is being acquired by another company in order to receive in exchange shares of the acquiring company, or the delivery of shares into a STOCK BUYBACK. (2) The act of offering an ASSET or SECURITY for sale. (1) See also OFFER. (2) See also FIXED-PRICE .
palgrave
0
15.65
24.7
0
8.2
27.2
9.81
37
25.64
TENDER OFFER
A publicly announced offer by a company or RAIDER to purchase the COMMON STOCK of a TARGET company at a stated price. Theoffer price, known as a TAKEOVER BID, is generally made at a PREMIUM to the market in order to induce SHAREHOLDERS to sell (or “tender”) their SHARES. Tender offers do not require specific shareholder approval or the specific support of the incumbent BOARD OF DIRECTORS or EXECUTIVE MANAGEMENT. See also FRIENDLY TAKEOVER, HOSTILE TAKEOVER, TAKEOVER, TWO-TIER BID.
palgrave
0
51.38
11
13.4
11.72
12.7
10.02
13.125
12.98
TENDER PANEL
A SYNDICATE of BANKS backing an ISSUER’s REVOLVING UNDERWRITING FACILITY, NOTE ISSUANCE FACILITY, or MULTIPLE OPTION FACILITY. The panel sells NOTES on behalf of the ISSUER on a best efforts basis and purchases any SECURITIES that remain unsold, thus provid- ing the issuer with funds.
palgrave
0
31.72
14.4
0
13.29
15.1
13.17
15.75
15.22
TENOR
The time period between issuance and MATURITY of a SECURITY.
palgrave
0
27.49
11.9
0
10.24
7.6
10.45
7
16
TERM ASSURANCE
In the United Kingdom, TERM INSURANCE.
palgrave
0
56.93
6.8
0
9.15
7.5
6.57
3
9.07
TERM BILL
A BILL OF EXCHANGE that is due and payable on a specific date. Also known as PERIOD BILL.
palgrave
0
87.72
3.3
0
3.51
1.9
6.71
4.5
8.04
TERM INSURANCE
A form of life INSURANCE with a finite expiration date. Term life is the simplest form of life insurance, offering no specific SAVINGS or INVESTMENT features, simply a lump sum payout in the event of mortality of the named INSURED. Also known as TERM ASSURANCE.
palgrave
0
56.25
9.1
12.5
9.45
8.8
9.64
10.166667
12.22
TERM LOAN
A LOAN with a MATURITY ranging from 1 to 15+ years, gen- erally used to fund medium- and long-term ASSETS such as INVENTORY and plant and equipment. A term loan may be secured or unsecured, carry a FIXED RATE or FLOATING RATE, and contain general or specific performanceCOVENANTS.
palgrave
0
55.58
11.5
0
10.1
13.4
11.08
15.5
14.6
TERM REPURCHASE AGREEMENT
A REPURCHASE AGREEMENT with a final MATURITY ranging from 7 to 30 days; the opposite side of the transaction is referred to as a term REVERSE REPURCHASE AGREEMENT. See also OPEN REPURCHASE AGREEMENT, OVERNIGHT REPURCHASE AGREEMENT.CASE RISK EXPOSURE, TERMINAL WORST-CASE RISK EXPOSURE.
palgrave
0
41.7
12.7
0
15.43
16.4
10.32
16
14.11
TERMINAL EXPOSURE
POTENTIAL EXPOSURE of an OVER-THE- COUNTER DERIVATIVE that is based on the final MATURITY of the transac- tion. See also AVERAGE EXPOSURE.
palgrave
0
43.39
9.9
0
11.06
9.1
10.64
7.5
13.49