An option whose payout is fixed after the underlying stock exceeds the predetermined threshold or strike price. Also referred to as "binary" or "all-or-nothing option." The value of the payout is determined at the onset of the contract and doesn't depend on the magnitude by which the price of the underlying moves. So, whether you are in the money by $1 or $5, the amount that you receive will be the same.
A type of merger that occurs when the subsidiary of the acquiring corporation merges with the target firm. |||In a forward triangular merger, the subsidiary's equity merges with the target firm's stock. As a result of the merger, the target becomes a part of the original subsidiary of the acquirer. This form of acquisition is often used for regulatory reasons.
When a company's stock price is in the doldrums and has yet to rebound because of poor earnings, government regulation or another reason. Sometimes you'll hear an analyst say "they are going to be in the penalty box for some time to come." This means that it'll be awhile before the company turns things around.
A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals. Prudence suggests that investors should construct an investment portfolio in accordance with risk tolerance and investing objectives. Think of an investment portfolio as a pie that is divided into pieces of varying sizes representing a variety of asset classes and/or types of investments to accomplish an appropriate risk-return portfolio allocation.For example, a conservative investor might favor a portfolio with large cap value stocks, broad-based market index funds, investment-grade bonds and a position in liquid, high-grade cash equivalents. In contrast, a risk loving investor might add some small cap growth stocks to an aggressive, large cap growth stock position, assume some high-yield bond exposure, and look to real estate, international, and alternative investment opportunities for his or her portfolio.
The currency abbreviation for the Suriname dollar (SRD), the currency for Suriname. The Suriname dollar is made up of 100 cents and is presented with the symbol $. The coins of this currency are denominated in cents based on the previous currency, the guilder, which was also made up of 100 cents. |||The Suriname dollar was introduced as the official currency of Suriname in 2004, when it replaced the guilder at a rate of 1,000:1. The old coins continued to be used, but were worth a fraction of a dollar instead of a fraction of a guilder. With the exchange rate of 1,000:1, coins became 1,000 times more valuable overnight.
A required submission to the Securities and Exchange Commission (SEC) by a professional investment advisor that specifies the investment style, assets under management (AUM), and key officers of the firm. The form must be updated annually and available as public record for companies managing in excess of $25 million. If past disciplinary action has been taken against the advisor, this must be noted in the first section of a Form ADV. The second section deals with the AUM, investment strategy, fee arrangements and service offerings of the firm. |||Potential and current clients of an investment advisor should always review the Form ADV on file, as it provides transparent evidence of the asset mix within the firm, as well as the professional background of key personnel. Most advisors will offer a current Form ADV to any potential client early in the marketing process; in fact, investors should be immediately cautious of an advisor that does not freely offer the form upon request.
An options strategy established by simultaneously entering into a long and short position in two options of the same type (two call options or two put options) but with different strike prices and expiration dates. This strategy is called a diagonal spread because it combines a horizontal spread, which represents the difference in expiration dates, with a vertical spread, which represents the difference in strike prices. An example of a diagonal spread is the purchase of a December $20 call option and the sale of an April $25 call.
A slang phrase used to describe a firm who has become a potential takeover target or has put itself up for sale. once a bid is made, a company is put "in play" and will often attract additional bidders. When a firm becomes a potential takeover target, its share price will typically increase on the expectations of being bought out. For example, in the late 1980s, management at RJR Nabisco felt the share price was unjustifiably low, so it made a bid to take the company private. This bid put the company in play, soliciting numerous other bids, sending RJR Nabisco's share price through the roof.