Mark Berch: London Interbank Offered Rate
Net advantage to merging
The difference in total post- and pre-mergermarket valueminus the cost of the merger.
Take off
A sharp increase in the price of a stock, or a positive movement of the market as a whole.
Mark Berch: London Interbank Offered Rate
A short-terminterest rate often quoted as a 1,3,6-month rate for U.S.dollars.
Alpha
Measure of risk-adjusted performance. An alpha is usually generated by regressing the security or mutual fund'sexcess return on the S&P 500 excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-terminterest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. Related: Risk-adjusted return.
Mark E. Berch:Deliverable bills
The Treasury bills that fulfill a set of guidelines set forth by the exchange on which the bills are traded.
Eligible bankers' acceptances
In the BA market, an acceptance may be referred to as eligible because it is acceptable by the Fed as collateral at the discount window and/or because the accepting bank can sell it without incurring a reserve requirement.
International market index
An indexlisted on the American Stock Exchange tracking the performance of 50 American Depository Receiptstraded on the AMEX, NYSE, and NASDAQ. Mark Berch
Alien corporation
A company incorporated under the laws of a foreign country regardless of where the company conducts its operations.
