tailieunhanh - dictionary of finance and investment terms 5th edition phần 8

Bộ từ điển của tài chính và các điều khoản đầu tư phiên bản thứ 5 rất cần thiết cho các bạn đang học chuyên học chuyên ngành tài chính kinh doanh. | previous page page_518 next page Page 518 REVERSE A SWAP restore a bond portfolio to its former position following a swap of one bond for another to gain the advantage of a YIELD SPREAD or a tax loss. The reversal may mean that the yield differential has disappeared or that the investor content with a short-term profit wishes to stay with the original bond for the advantages that may be gained in the future. See also BOND SWAP. REVERSE CONVERSION technique whereby brokerage firms earn interest on their customers stock holdings. A typical reverse conversion would work like this A brokerage firm sells short the stocks it holds in customers margin accounts then invests this money in short-term money market instruments. To protect against a sharp rise in the markets the firm hedges its short position by buying CALL options and selling PUT options. To unwind the reverse conversion the firms buys back the stocks sells the call and buys the put. See also MARGIN ACCOUNT OPTION. REVERSE LEVERAGE situation the opposite of FINANCIAL LEVERAGE where the interest on money borrowed exceeds the return on investment of the borrowed funds. REVERSE LEVERAGED BUYOUT process of bringing back into publicly traded status a companyor a division of a companythat had been publicly traded and taken private. In the 1980s many public companies were taken private in LEVERAGED BUYOUTS by corporate raiders who borrowed against the companies assets to finance the deal. previous page page_518 next page previous page page_519 next page Page 519 When some or all of the debt incurred in the leveraged buyout was repaid many of these companies were in sufficiently strong financial condition to go public again enriching the private stockholders as well as the investment bankers who earned fees implementing these deals. REVERSE MORTGAGE arrangement whereby a homeowner borrows against home equity and receives regular payments tax-free from the lender until the accumulated principal and interest reach the