An intentional or unintentional departure from the original way a mutual fund was being managed, and a change to a new way of managing of the fund. At their inception, all funds have an objective or specific style of investing, usually determined by the management of that fund. Style drift indicates a change in the investment style, which could occur for many reasons, such as a change in the management team, or a decision made by the team because of a change of circumstance in the market.
An instruction by a customer to his/her broker to not carry out an order that he or she had placed earlier. A cancel order can only be placed in cases where the earlier order has not been executed. Further, if the broker has already submitted the order to a specialist or market maker at an exchange, then there might be a time lag (usually very small) in reaching the cancel order to the specialist or market maker, and the order might be executed before the customer’s instruction to cancel is received by the specialist or market maker.
Setting the date of an employee stock option to an earlier time than when the option was actually granted. This can allow for a more favorable strike price. Backdating the option is not illegal, but the improper disclosure of the activity to the Securities and Exchange Commission is considered illegal.
MFID. A set of guidelines created by the European Union that created common regulations across the various investment services in each member state. MFID authorizes member states to regulate their own financial firms, requires that firms offer sufficient transaction transparency, and requires that firms offer the best trade execution for clients.
An acquisition that is made because of operational benefits that will result from the two companies working as one, thereby leading to greater profits than the two would earn separately.
Investment strategy where a large portion of a company’s shares are bought at one time. Most commonly, this occurs when an individual, group, or company is trying to takeover or gain control of another company. also called market sweep.
An intentional or unintentional departure from the original way a mutual fund was being managed, and a change to a new way of managing of the fund. At their inception, all funds have an objective or specific style of investing, usually determined by the management of that fund. Style drift indicates a change in the investment style, which could occur for many reasons, such as a change in the management team, or a decision made by the team because of a change of circumstance in the market.
An instruction by a customer to his/her broker to not carry out an order that he or she had placed earlier. A cancel order can only be placed in cases where the earlier order has not been executed. Further, if the broker has already submitted the order to a specialist or market maker at an exchange, then there might be a time lag (usually very small) in reaching the cancel order to the specialist or market maker, and the order might be executed before the customer’s instruction to cancel is received by the specialist or market maker.
Setting the date of an employee stock option to an earlier time than when the option was actually granted. This can allow for a more favorable strike price. Backdating the option is not illegal, but the improper disclosure of the activity to the Securities and Exchange Commission is considered illegal.
MFID. A set of guidelines created by the European Union that created common regulations across the various investment services in each member state. MFID authorizes member states to regulate their own financial firms, requires that firms offer sufficient transaction transparency, and requires that firms offer the best trade execution for clients.
An acquisition that is made because of operational benefits that will result from the two companies working as one, thereby leading to greater profits than the two would earn separately.
Investment strategy where a large portion of a company’s shares are bought at one time. Most commonly, this occurs when an individual, group, or company is trying to takeover or gain control of another company. also called market sweep.