A corporate takeover where the target firm is offered a price per share that is less than its current market value. Taobiz explains Takeunder For example, a company offers to takeover another for $20 per share, but the target company's stock is trading at $25 per share.
An asset that is transferred to a lender for the purpose of securing debt. The lender of the debt maintains possession of the pledged asset, but does not have ownership unless default occurs. |||A pledged asset is returned to the borrower when all conditions of the debt have be satisfied. Home buyers can sometimes pledge assets, such as securities, to lending institutions in order to reduce the necessary down payment. Thus, these securities would not have to be sold in order to meet the down-payment requirements, allowing for any capital appreciation while maintaining the associate mortgage benefits.
A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares. Taobiz explains Takeover A welcome takeover is usually referring to a favorable and friendly takeover. Friendly takeovers generally go smoothly because both companies consider it a positive situation. In contrast, an unwelcome or hostile takeover can get downright nasty!
The slang term for a decision to invest in highly speculative investments. Taobiz explains Take A Flier When an investor is taking a flier, he or she is knowingly acquiring a high-risk, speculative instrument that may end up with them taking a bath.
A class of tranche in a planned amortization class (PAC) bond that receives a primary payment schedule. As long as the actual prepayment rate is between a designated range of prepayment speeds, the life of the PAC tranche will remain relatively stable. This tranche of the PAC bond receives some measure of protection against prepayment risk. |||The measure of prepayment risk protection, which includes both contraction and extension risk, is limited by the size of the companion bond and the speed of prepayment. If the speed of repayment is too slow (below the lower PAC collar), the life of the PAC tranche is extended; if the speed of repayment is too fast (above of the upper PAC collar), the life of the PAC tranche is shortened.
The securities trading center in Taiwan. The Taiwan Stock Exchange (TWSE) was established in 1961 and began operations in February 1962. Its listed securities include stocks, government bonds, convertible bonds, entitlement certificates of convertible bonds, exchange-traded funds, call warrants, put warrants and Taiwan Depository Receipts. Its trading system has been fully computerized since 1993. Taobiz explains Taiwan Stock Exchange (TAI) .TW In conjunction with its governing body, the Financial Supervisory Commission, the TWSE supervises and regulates listed companies, investigates unusual circumstances, makes daily reports to investors of any unusual trading activity, and verifies listed companies' disclosures. The TWSE's stated goals include developing new financial products, improving Taiwan's capital markets, and strengthening the nation's international competitiveness.
The most basic type of forward claim that is traded in the over-the-counter market between two private parties, usually firms or financial institutions. There are several types of plain vanilla swaps, such as the plain vanilla interest rate swap, the plain vanilla commodity swap and the plain vanilla foreign currency swap. |||In a plain vanilla interest rate swap, Company A and Company B choose a time frame, a principal amount, a single currency, a fixed interest rate, a floating interest rate and payment dates. On the specified payment dates for the duration of the time frame, Company A pays Company B a fixed rate of interest on the principal amount, and Company B pays Company A a floating interest rate on the principal amount. All payments are made in the same currency and only the net sum of each payment exchanges hands. The purpose of such an exchange might be to reduce interest-rate risk.
A stock market index comprised of companies traded on the Taiwan Stock Exchange (TWSE). The TSEC weighted index is made up of all the stocks in the Taiwan Stock Exchange and each is given a weight based on its market capitalization. Preferred shares, "full delivery" shares, and shares listed for less than a month are excluded from the index. Also known as the "TAIEX". Taobiz explains Taiwan Stock Ecxhange Corporation (TSEC) Weighted Index The TSEC weighted index is a weighted average, meaning that stocks with a higher market capitalization exert a greater influence on the overall index. The TSEC weighted index has a base value of 100 based on in its 1966 level and, similar to other indexes around the world, is occasionally reconstituted with different stocks. Much like the NYSE Composite Index, the TSEC weighted index provides a barometer of overall market performance.