Term
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Definition
Financial Statements projecting future years’ operations |
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Term
| Capital Asset Pricing Model (CAPM) |
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Definition
-Equation of the security market line showing the relationship between expected return and beta |
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Term
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Definition
The difference between an investment’s market value and its cost |
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Term
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Definition
The weighted average of the cost of equity and the after tax cost of debt |
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Term
Best Efforts Underwriting |
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Definition
-Type of underwriting in which the underwriter sells as much of the issue as possible, but can return any unsold shares to the issuer without financial responsibility |
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Term
| Firm Commitment Underwriting |
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Definition
Underwriting Process
-Type of underwriting in which the underwriter buys the entire issue, assuming full financial responsibility for any unsold shares |
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Term
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Definition
Contract provision giving the underwriter the option to purchase additional shares from the issuer at the offering |
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Term
| Dutch Auction Underwriting |
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Definition
Type of underwriting in which the offer price is set based on competitive bidding by investors |
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