Sunday, 12 February 2012

Sterilization

The process of offsetting the inflationary effects that results when government intervenes in foreigh-exchange markets

Share option

A benefit sometimes offered to employees aspecially new employees in which they are given an option to buy shares in the company for they work at a favourable fixed price or at a discount to the market price.

Share index

An index formed by selecting a numberof prominent share traded on a stock exchange and comparing the value of these shares with their value on a stated date in the base year.

Share-for-share offer

A takeover bid in which the director of a company offer share in that company as the payment of acquiring the shares in the target company.

Share certificate

A document that provides evidence of ownership of a share of Company

Stag

A person who apllies for share in new issue in the hope the price when trade begins will be higher than the issue price

Speculation

The purchase or sale of something for the sole purpose of making capital gain

Security market line

A line plotted on a graph that specifies the reguired rate of return obtained by the the capital assets pricing model(CAMP)

Securitized mortgage

A mortgage that has been converted into a marketable security which can be sold to an investor

Sovereigh loan

A loan made by a bank to a foreigh government often the government of a third world country