Financial Dictionary

This dictionary contains:
24549
financial terms

Stub




Stub

Often used in risk arbitrage. Piece of equity security left over from a major cash or security distribution from a recapitalization.

RELATED TERMS
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Risk
The possibility of loss; the amount that one may lose when investing.

Arbitrage
Buying securities in one country, currency or market, and selling in another to take advantage of price differences.

Piece
Apply mainly to convertible securities. Increment of bonds that trade in portions of $1000 minimum.

Equity
1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments.

Security
Piece of paper that proves ownership of stocks, bonds, and other investments.

Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.

Distribution
Selling a large lot of a security in such a way that the security price is not heavily influenced.



SIMILAR TERMS
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PREVIOUS AND NEXT TERMS
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Structured debt
Debt that has been customized for the buyer, often by incorporating unusual options.

Structured finance
Often refers to a group within an investment bank that deals with mortgage-backed securities (MBS), commercial mortgage backed securities, and collateralized debt obligations and real estate.

Structured note
A derivative investment that will change in value with movements of an underlying index; or a note whose issuer makes swap arrangements to alter its required cash flows.

Structured portfolio strategy
Designing a portfolio to achieve a level of performance that matches some predetermined liabilities that must be paid out in the future.

Structured settlement
An agreement in settlement of a lawsuit involving specific payments made over a period of time.

Stub

Student Loan Marketing Association (SLMA)
A publicly traded corporation established by federal action that increases availability of educational loans by guaranteeing student loans traded in the secondary market.

Subaccount
A term used in bookkeeping. For example, the insurance expense account may have various different subcategories such as building and property insurance, auto-fleet insurance, general liability, environmental, professional liability, law enforcement, and other insurance.

Subchapter M
An IRS regulation dealing with investment companies and real estate investment trusts that avoid double taxation by distributing interest, dividends, and capital gains directly to shareholders, who are taxed individually.

Subchapter S
IRS regulation that gives a corporation with 35 or fewer shareholders the option of being taxed as a partnership to escape corporate income taxes.

Subject
Refers to a bid or offer that cannot be executed without confirmation from the customer. In other words, not firm, but a bid-offer that needs additional information-confirmation before becoming firm and is therefore still negotiable.

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This dictionary contains 24549 terms.







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