Misc Review Flashcards
(6 cards)
1
Q
Scale or reoffering scale
A
The prices and/or yield at which new issues are offered for sale to the public by the underwriter.
The syndicate uses the scale to determine it’s bid on the issue.
2
Q
Recapture
A
The taxation as ordinary income of previously earned deductions or credits.
Examples: excess depreciation, premature sale of an asset, disallowing of a previous tax benefit
3
Q
Recourse debt
A
Lender can file a suit to recover the balance
4
Q
Nonrecourse debt
A
Lender has no option to pursue the borrower
Borrowers prefer nonrecourse debt
5
Q
Dollar price quoted for bond with several call dates
A
Always use the near-term (first) in-whole call date
6
Q
FOMC
A
Federal open market committee
Part of federal reserve board
Controls money supply
