Loss control, loss financing, and risk reduction methods used to manage risks.

Identifying, quantifying, managing, and monitoring financial and operating risk. Refer to risk identification, risk management, risk monitoring, and risk quantification.

A decision guided by cost/benefit analysis made by a firm to control, retain, eliminate, or expand its risks. Refer to risk identification, risk monitoring, and risk quantification.

Detecting actual, perceived, or anticipated financial and operating risks. Refer to risk management, risk quantification, and risk monitoring.

A delay in the funding of losses until they are more affordable instead of transferring them to a third party. Refer to finite insurance contract and finite reinsurance.

Economic capital set aside to cover risk related exposure and losses. It can be handled internally or with regulations. Refer to regulatory capital and risk adjusted return on capital.

A firms ability to identify their financial resources, expertise, and operating mandate to determine how much risk they are able to take.

A conservative view to investing when a party avoids risk believing the overall protection is worth the long term wait.

The attempt to profit by merger, acquisition, hostile takeover, recapitalization, spinoff, or other transactions based on the advice of a risk arbitrageur who analyzes future opportunities.

The financial and operating uncertainties and unpredictability involved in operating a financial institution where a future outcome or event is concerned.

A bullish signal shown by charting rising prices and an increasing support level. Refer to ascending top, descending bottom, and falling top.

Named to illustrate an attempt of fleeing to Rio if this strategy fails, it is an attempt to reverse losses by executing a large and risky trade.

Giving existing shareholders an opportunity to purchase new stock at current prices with the remaining available stock being sold in the open market at the future rate. AKA privileged subscription issue and rights offering subscription rights. Refer to su

The ability to switch collateral with the same minimum value and marketability.

A modification by endorsement of an insurance policy that supersede the original policy.

When a holding is at its highest price and a firm will benefit from selling it.

The relative change in the cost of an option making it a risk free rate holding all other variables constant. Refer to delta, gamma, theta, greeks, and vega.

A short to medium term credit line involving the purchase and loaning of Euronotes to allow the borrower to trade in the Eurocurrency market. Refer to note issuance facility.

A six month to fiveplus years, secured or unsecured line of credit that can be reused over and over again. AKA line of credit and revolver. Refer to bank line, committed funding, evergreen, and loan commitment.

The purchase of goods or services by a bank or investment bank in exchange for lucrative feebased new issue or corporate finance mandates. Refer to tying.

When a holder sells high coupon securities back with the understanding that at maturity, they will be able to repurchase these securities.

When a firm reduces its outstanding shares in an attempt to increase their value. They offer half the amount of shares at twice the price per share making the stock appear more valuable when in fact there is no difference. This is not a sign of stability

When a firm repos securities from a party that pays a finance charge in agreement to sell them at a higher price at a predetermined date in the future. AKA reverse, resale, and reverse repo. Refer to dollar roll, general collateral, gensaki, overnight re

When a lender gives monthly payments to a borrower using their property equity. This is usually done by elderly homeowners resulting in the borrower eventually owning the home.

Stocks that are offered for purchase by the public by companies that have been privately purchased in an effort to reduce their debt.