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Letter of Guarantee
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Letter of GuaranteeA letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned.
RELATED TERMS--------------------------------------
Bank
A commercial institution licensed as a receiver of deposits. Banks are mainly concerned with making and receiving payments as well as supplying short-term loans to individuals.
Firm
1) Refers to an order to buy or sell that can be executed without confirmation for some fixed period. 2) A synonym for company.
Call
An option that gives the holder the right to buy the underlying futures contract.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
Will
The written expression of a person's wishes as to how his property should be distributed by his executors.
Guarantee
The assumption of responsibility for payment of a debt or performance of some obligation if the liable party fails to perform to expectations.
Delivery
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
SIMILAR TERMS--------------------------------------
Letter of Administration
A certificate issued by the Court evidencing the appointment of the Administrator of an Estate.
Letter of Comment
A communication to the firm from the SEC that suggests changes to its registration statement.
Letter of Credit (LOC)
A paper issued by a buyer's bank as proof that the seller will be paid.
Letter of Intent
An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges.
Letter of Renunciation
In a rights issue of shares, a letter of renunciation is the form attached to an allotment letter which the holder completes should he wish to transfer entitlement to another person or to renounce his rights absolutely.
Letter of Testamentary
A certificate issued by the court evidencing the appointment of an executor of estate.
Letter of Transmittal
A document used by security holder to accompany certificates surrendered in an exchange or other corporate action.
Letter stock
Privately placed common stock, so-called because the SEC requires a letter from the purchase stating that the stock is not intended for resale.
PREVIOUS AND NEXT TERMS--------------------------------------
Lessee
A person to whom a lease is granted, known as a tenant.
Lessor
A person who grants a lease, known as a landlord.
Letter of Administration
A certificate issued by the Court evidencing the appointment of the Administrator of an Estate.
Letter of Comment
A communication to the firm from the SEC that suggests changes to its registration statement.
Letter of Credit (LOC)
A paper issued by a buyer's bank as proof that the seller will be paid.
Letter of Guarantee
Letter of Intent
An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges.
Letter of Renunciation
In a rights issue of shares, a letter of renunciation is the form attached to an allotment letter which the holder completes should he wish to transfer entitlement to another person or to renounce his rights absolutely.
Letter of Testamentary
A certificate issued by the court evidencing the appointment of an executor of estate.
Letter of Transmittal
A document used by security holder to accompany certificates surrendered in an exchange or other corporate action.
Letter stock
Privately placed common stock, so-called because the SEC requires a letter from the purchase stating that the stock is not intended for resale.
RELATED TERMS--------------------------------------
Bank
A commercial institution licensed as a receiver of deposits. Banks are mainly concerned with making and receiving payments as well as supplying short-term loans to individuals.
Firm
1) Refers to an order to buy or sell that can be executed without confirmation for some fixed period. 2) A synonym for company.
Call
An option that gives the holder the right to buy the underlying futures contract.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
Will
The written expression of a person's wishes as to how his property should be distributed by his executors.
Guarantee
The assumption of responsibility for payment of a debt or performance of some obligation if the liable party fails to perform to expectations.
Delivery
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
SIMILAR TERMS--------------------------------------
Letter of Administration
A certificate issued by the Court evidencing the appointment of the Administrator of an Estate.
Letter of Comment
A communication to the firm from the SEC that suggests changes to its registration statement.
Letter of Credit (LOC)
A paper issued by a buyer's bank as proof that the seller will be paid.
Letter of Intent
An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges.
Letter of Renunciation
In a rights issue of shares, a letter of renunciation is the form attached to an allotment letter which the holder completes should he wish to transfer entitlement to another person or to renounce his rights absolutely.
Letter of Testamentary
A certificate issued by the court evidencing the appointment of an executor of estate.
Letter of Transmittal
A document used by security holder to accompany certificates surrendered in an exchange or other corporate action.
Letter stock
Privately placed common stock, so-called because the SEC requires a letter from the purchase stating that the stock is not intended for resale.
PREVIOUS AND NEXT TERMS--------------------------------------
Lessee
A person to whom a lease is granted, known as a tenant.
Lessor
A person who grants a lease, known as a landlord.
Letter of Administration
A certificate issued by the Court evidencing the appointment of the Administrator of an Estate.
Letter of Comment
A communication to the firm from the SEC that suggests changes to its registration statement.
Letter of Credit (LOC)
A paper issued by a buyer's bank as proof that the seller will be paid.
Letter of Guarantee
Letter of Intent
An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges.
Letter of Renunciation
In a rights issue of shares, a letter of renunciation is the form attached to an allotment letter which the holder completes should he wish to transfer entitlement to another person or to renounce his rights absolutely.
Letter of Testamentary
A certificate issued by the court evidencing the appointment of an executor of estate.
Letter of Transmittal
A document used by security holder to accompany certificates surrendered in an exchange or other corporate action.
Letter stock
Privately placed common stock, so-called because the SEC requires a letter from the purchase stating that the stock is not intended for resale.
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This dictionary contains 24549 terms.
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