A questionable practice of downplaying negative business traits and overemphasizing the positive ones.

A UK company listed and registered under the companies act. It has limited liability.

A take over method where an investor presuades the board to vote against the director and create a new board in their favor. This takes a long time and can be prevented or slowed down. AKA proxy fight.

A document allowing the owner of the stock or advocate or the owner to vote.

A captive where individual accounts called cells are used for selfinsurance. The cells are seperated by statute protecting them from loss. Refer to agency, group, pure, senior, sister and renta captive.

An option where the buyer gets paid the difference between the strike price and the best performing asset. It gives the investors detail about the securities that will help them make an informed decision. Refer to offering circular, red herring, and statu

Insurance that shifts the time of loss in the future. It is a risk financing vehicle. Refer to retrospective finite policy.

When an insurer must take their share of the losses based on a fixed or variable percentage or monetary value. Refer to excess of loss agreement.

Reinsurance given to an insurer to protect against losses incurred on each line at a specified amount.

Property insurance that protects against peril and negligence. Refer to properth and causality insurance

Insurance protecting property from damage or loss. The perils covered are listed in the contract. The perils not covered are also listed such as war, terrorism, or neglect. The insured must agree to subrogation. Refer to property and liability insurance.

Evidence proving loss that must be submitted to the insurer. It proves the claim is valid.

A written promise to pay a debt by a specific date. It can be turned to cash by transfering it to another party.

A financial statement of profits excluding exceptional costs and gains. They do not conform to the accounting rules abnd must be interpreted with care.

The daily summary of loss and profit. It helps a company prevent losses and increase returns. It is a valuable tool in risk management.

The inflaction of a wholesale purchase. It is based on the manufacturing process not the associated services. Refer to consumer price index, harmonized index of consume prices, and retail price index.

The risk occuring in the process or manufacturing. Refer to operational risk.

The potential a company will file for bankruptcy. It is used to calculate the default in default models.

When new issues are sold to investors based on how much they have ordered. As for insurance is suggests that the insured can only be paid the insurance requested. It literally means proportional allocation. Refer to apportionment divided cover, overlappin

When hypothetical data is used to predict how a new security will be affected. It is used to predict the success of an investment by banks and investors. It literally means as a formality. Refer to pro forma earnings report.

A debt not registered with the securities regulator. It is sold on a ceveat emptor basis to only experienced investors. It is illiquid and only transfers to a short list of buyers. This can only be done when laws permit. Refer to safe harbor rule, public

An investment that comes from a private not corporate investor. The investor usually exits at the first public sale.

Stock that has a first claim on assets. If distress should occur these stockholders get first dibs.

A bond given to a failing company to restructure. Investors are given first pick at the assets.

A mortgage that pays its principal from the securites. The price goes down as interest rates raise causing a slower repayment. The interest coupons are paid to investors in the interest only strip. There is less cash flow because the interest coupons do n