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Green Shoe provision -

A contract provision giving the underwriter the option to purchase additional shares from the issuer at the offering price. Also called the overallotment option.

Red Herring

A preliminary prospectus distributed to prospective investors in a new issue of securities.

American Depository Receipt -

A security issued in the United States representing shares of a foreign stock and allowing that stock to be traded in the United States.

Initial Coin Offering

is an unregulated means by which funds are raised for a new cryptocurrency venture

Triangle Arbitrage -

the act of exchanging through three currencies to exploit a mispriced trio of currency quotes

Foreign bonds -

International bonds issued in a single country, usually denominated in that country's currency.

Eurobond -

International bonds issued in multiple countries but denominated in a single currency (usually the issuer's currency).

Eurocurrency -

Money deposited in a financial center outside of the country whose currency is involved.

Shelf Registration -

Registration permitted by SEC Rule 415, which allows a company to register all issues it expects to sell within two years at one time, with subsequent sales at any time within those two years.

Cross-rate -

The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).

Dutch Auction Underwriting -

The type of underwriting in which the offer price is set based on competitive bidding by investors. Also known as a uniform price auction.

Best Efforts Underwriting -

The 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.

Initial Public Offer

- A company's first equity issue made available to the public. Also called an unseasoned new issue or an IPO.

Prospectus

- A legal document describing details of the issuing corporation and the proposed offering to potential investors.

Rights Offer

- A public issue of securities in which securities are first offered to existing shareholders.

Registration statement

- A statement filed with the SEC that discloses all material information concerning the corporation making a public offering

Underwriters

- Investment firms that act as intermediaries between a company selling securities and the investing public.

Dilution

- Loss in existing shareholders' value in terms of ownership, market value, book value, or EPS.

LIBOR

- The rate most international banks charge one another for overnight Eurodollar loans.

Firm Commitments Underwriting

- The type of underwriting in which the underwriter buys the entire issue, assuming full financial responsibility for any unsold shares.