LEVERAGED BUYOUT - LBO
Takeover or controlling interest of a company, using a significant amount of borrowed money, either bonds or loans, to meet the acquisition cost. Oftentimes, the assets of the company serve as collateral for the loans aside from the assets of the acquiring company. It lets the firms to create huge acquisitions without committing to a lot of capital. LBO has a usual ratio of 90% debt to 10% equity but because of the debt/equity ratio, these are not considered investment grade and referred to as junk bonds.
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Robert C. Merton
American economist who won the 1997 Nobel Memorial prize in Economic Sciences, along with Myron Scholes, for developing the Black-Sholes model, whi ...
Buy Stops Above
Recommendation to purchase a given security once a security’s price surpasses a particular resistance level by putting a buy stop order at th ...
Admitted Company
An insurance company admitted and allowed by an another state to transact insurance business despite having a domiciled status on an another state. ...
Black Box Model
Computer program, process, or system processing the information entered by the user using pre-programmed logic in order to produce the user’s ...
Form 3903
A form issued by the IRS and used by taxpayers to deduct moving expenses related to taking a new job.
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