Glossary

Early Closure

Closure is the term used to refer to the actions necessary when it is no longer necessary or possible for a business or other organization to continue to operate. Closure may be the result of a bankruptcy, where the organization lacks sufficient funds to continue operations, as a result of the proprietor of the business dying, as a result of a business being purchased by another organization (or a competitor) and shut down as superfluous, or because it is the non-surviving entity in a corporate merger. A closure may occur because the purpose for which the organization was created is no longer necessary

Equity Offering Clawback

Many high yield bonds include a provision permitting the company to partially redeem the bonds with the net proceeds of any equity offering that is completed by the company within a specified period of time (usually three years) after the bonds have been issued. This provision, commonly referred to as an “equity offering clawback”.

Equity Swap

Equity Swap is a kind swap transaction agreement between two entities under which they exchange the shares amongst them. The key objective of the Equity swap is avoiding bankruptcy, reorganizing debts, or gaining a more favorable repayment schedule.

Exchequer stock

A British government bond that receives a particular rate of interest paid twice a year, and must be sold back to the borrower on a particular date.

Exotic Currency

A foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large.