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Banking

Secondary Equity Offering

An equity issue by a firm that already has common stock outstanding (i.e., that is already listed), regardless of whether...

Secondary Distribution

An issuance of securities by a company that already has had an initial public offering (IPO). It involves the sale...

Exotic Derivative

A nonstandard derivative instrument which contains more than one elementary financial instrument or has complex, discontinuous, or leveraged payout patterns....

Accrual Accounting

An accounting basis of recording transactions and events whereby recognition of revenues and expenses takes place when an economic exchange...

Cash Accounting

An accounting basis of recording transactions and events only when cash receipt/ payment is involved. More specifically, cash accounting is...

Front Fee

The premium or option price on the first leg of a compound option, i.e., on the call option (with the...

Price/Earnings Ratio

A financial ratio that relates the stock price on any given day to earnings per share: It indicates how much...

Back Fee

The premium or option price on the second leg of a compound option, i.e., on the put option (with the...

Equity Default Swap

A hybrid of an equity derivative and a credit derivative which has identically the structure of a credit default swap...

EDS

It stands for equity default swap; a hybrid of an equity derivative and a credit derivative which has identically the...