13 Terms
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Investment banking
Of or relating to the business of underwriting, or acting as the client's agent, in the issuance of securities in order to assist an individual, commercial enterprise, corporation or government instution ro raise capital.
Industry: Banking
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Investment banking
capital adequacy requirements
Banking; Investment banking
Regulatory requirements which establish a minimum level of capital which banks are required to maintain to cover the level of risks taken by them on a proprietary basis.
bid price
Banking; Investment banking
Price which a buyer offers for the purchase of securities, foreign exchange or foreign banknotes. In other words, the price or terms at which a person is willing to buy. Opposite: asked or ask price.
margin
Banking; Investment banking
(1) Difference between the lending and deposit rates of a bank, between purchase and sale prices or between bid and ask rates. See also interest margin or spread. (2) Security deposited in stock ...
outstrike
Banking; Investment banking
Predetermined spot price of the underlying at which an out option (knock-out or kick-out) is automatically terminated. See also instrike.
risk premium
Banking; Investment banking
Premium demanded by investors for investing in risky capital investments. The higher the risk of loss or default, the higher the premium.
syndicate
Banking; Investment banking
Also referred to as a consortium. Group of companies that come together for a common purpose. See underwriting syndicate.
