underlying company
31Franchisee — The party in a franchising agreement that is purchasing the right to use a business s trademarks, associated brands and other proprietary knowledge in order to open a branch. In addition to paying an annual franchising fee to the underlying… …
32Recovery amount — When a bond or other financial derivative defaults, the recovery amount is the amount that the underlying company can afford to pay. This is usually a result of a liquidation of the company s assets and generally results in a lower amount than… …
33Microcap stock fraud — The night singer of shares sold stock on the streets during the South Sea Bubble. Amsterdam, 1720. Microcap stock fraud is a form of securities fraud involving stocks of microcap companies, generally defined in the United States as those with a… …
34Counter-Cyclical Stock — A type of stock in which the underlying company belongs to an industry or niche with financial performance that is negatively correlated to the overall state of the economy. As a result, the stock s price will also tend to move in a direction… …
35Cult Stock — A classification describing stocks that have a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals. Typically, investors are initially attracted to the company s potential and… …
36Debt Exchangeable for Common Stock - DECS — A debt instrument that provides the holder with coupon payments in addition to an embedded short put option and a long call on the issuing company s stock. DECS instruments provide the holder with the right to convert the security into the… …
37Dividend Enhanced Convertible Stock - DECS — Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company s stock. Dividend enhanced convertible stocks provide the holder with the right to convert the… …
38Dow Jones STOXX 50 — A stock index representing 50 of the largest companies in Europe based on market capitalization. The stock universe used for selection is an aggregate of the 18 Dow Jones STOXX 600 Supersector indexes, which together capture about 95% of the… …
39General Public Distribution — A type of primary market offering in which the securities being issued are available to anyone who has the ability to purchase them. This differs from conventional public distributions of securities in which underwriting investment banks sell… …
40New Indications — A term used by medical companies and professionals to signify that a procedure or drug has been recognized to be advisable or necessary. New indications refer to new applications of an existing prevention, diagnosis or treatment of a disease. It… …
