What is junk bond

A bond that offers a high rate of interest because it carries a higher than usual probability of default

Who is a jobber

A dealer in stocks and shares who had no contact with the general public except through a stock broker.

Swap

Borrowers can exchange the type of funds most easlly raised for the type of funds required usualy throught the intermediary of a bank

What is Simulation

A financial modelling technique that considers the likely outcomes of different hypothetical circumstances

Share premium

The amount payable for shares in a company and issued by the company itself in excess of their normal value

The principle of subrogation

State that having a claim an insurer has the right to take over any other methods that the policyholder may have obtained compenzation for the same event

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.