- bond denominated in a currency other than that of the country in which it is sold
- all the same, no diff between coupon, current yield, ytm, ytc.
- What does "book" mean in the Price/Book ratio?
- opposite of call feature. instead of the issuer calling in a bond before it matures, the holder can demand early repayment of the principal. if a bond has this, it should never sell at a discount.benefits investor/bondholder!
- when you buy a bond, pay the seller for accrued interest. doesn't apply to zeros, which trade "flat." For corporate and munis, assume 30 days in each month, the 30/360 method. For US govt bonds, count actual days in a month "Actual/365 method."
- first day a share of stock trades without a dividend. Occurs one business day before the holder-of-record date. If buy a share on or after the ex-dividend date, you will not receive the dividend. Must be purchased the day before the ex-date (remember settlement is t+2 - be settled by the "record date." unless cash settlement, in which case you get the dividend if you have settled one day after the record date.
- the same day if by 2:30pm. broker might charge for it.
- Apply to entire stock market. Like Market risk (like recession of 2008) and inflation risk
- issued on same day, mature on different days
- the face value of a bond, stock dividend rate based on this
- secured (collateralized).. like utility pledging real estate holdings
- issued on same day and mature on same day
- can apply votes in any manner they want. if have 300 votes and 3 open board seats, can put all 300 on one seat. Benefits small shareholders cause they can gang up on one seat.
- a market in which money is lent for periods of one year or less
- held by the financial firm that created the ADR.
- can apply votes only PER position. If have 300 votes, and 3 open board seats, can only apply 100 to each open position. Benefits LARGE shareholders.
- A corporation's own stock that has been reacquired by the corporation and is being held for future use.
- The lower coupon bond is more sensitive because: a) when interest rates rise, the higher coupon bond gives you more interest to reinvest at the now higher rate. So the price of the lower coupon bond is hurt more. and b) when interest rates fall, the lower coupon bond has less reinvestment risk.. section 3.4 in course.
- the market in which new securities are originally sold to investors. 4 key players are Issuers, underwriters, investors, SEC.
- issued on different days, but mature on same day