Drip Feed

Drip Feed: "Drip Feed What does it Mean? 1) The process of investing on an ongoing basis in a small but growing firm over a period of time. Essentially, a drip feed results in a startup company receiving capital contributions as the need for capital arises, rather than getting a lump sum capital contribution at the company's inception. 2) The process of retail investors contributing small amounts of their savings to their investment pool on a periodic basis, such as $200/month, for example. Investopedia Says... 1) With this type of financing arrangement, startup firms operate with very little surplus capital; their financing needs are only contributed to by venture capitalists as the need for capital arises. 2) Individual investors can benefit from this type of strategy: it reduces the risk of entering positions in overpriced securities, since the investments are spread out. This technique also moderately smooths market fluctuations for the investor, since he or she benefits from dollar-cost averaging (a fixed dollar contribution amount each month, for example, will result in more equity shares being purchased at low market prices than at high prices). Of course, as a trade-off for the safety of this added smoothness, investors sacrifice the potentially higher returns they might have seen if they had simply made a lump sum investment at low market prices."

Down Round

Down Round: "Down Round What does it Mean? A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the company by earlier investors. Investopedia Says... Down rounds cause dilution of ownership for existing investors. This often means the company’s founders stock or options are worth much less, or even nothing at all. Unfortunately, sometimes the only other option is going out of business. In this case down rounds are necessary and welcomed. Down rounds are commonplace when a red hot economy turns bad. A perfect example was the dot-com crash of 2000-2001."

Discounts For Lack Of Marketability (DLOM)

Discounts For Lack Of Marketability (DLOM): "Discounts For Lack Of Marketability (DLOM) What does it Mean? A method used to help calculate the value of closely held and restricted shares. The theory behind DLOM is that a discount exists between the value of a company's stock that is and is not marketable. Various methods have been used to quantify the discount that can be applied including the restricted stock method, IPO method and the option pricing method. Investopedia Says... The restricted stock method purports that the only difference between a company's common stock and its restricted stock is the lack of marketability of the restricted stock. Subsequently, the price difference between both units should arise due to this lack of marketability. The IPO method relates to the price difference between shares that are sold pre-IPO and post-IPO. The percent difference between the two prices is considered the DLOM using this method. The option pricing method uses the option's price and the strike price of the option as the determinants of the DLOM. The option price as a percentage of the strike price is considered the DLOM under this method. The consensus of many studies suggests that the DLOM ranges between 30-50%."

Direct Public Offering (DPO)

Direct Public Offering (DPO): "Direct Public Offering (DPO) What does it Mean? When a company raises capital by marketing its shares directly to its own customers, employees, suppliers, distributors and friends in the community. DPOs are an alternative to underwritten public offerings by securities broker-dealer firms where a company's shares are sold to the broker's customers and prospects. Investopedia Says... Direct public offerings are considerably less expensive than traditional underwritten offerings. Additionally, they don't have the restrictions that are usually associated with bank and venture capital financing. On the other hand, a DPO will typically raise much less than a traditional offering."

Diluted Founders

Diluted Founders: "Diluted Founders What does it Mean? A slang term often used by venture capitalists to describe the process by which the founders of a startup gradually lose ownership of the company they founded. As a startup that is using venture capital for funding progresses through multiple rounds of financing, the venture capitalists providing the financing will often want more and more ownership of the company. In other words, the founders dilute their ownership in the company in exchange for capital to grow their business. Investopedia Says... What percentage of the company should a founder hold onto, ideally, after the venture capitalists take their piece of the pie? There is no gold standard, but generally anything between (or above) 15-25% ownership for the founders is considered a success. It is important to note that the trade of ownership for capital is beneficial to both venture capitalist and founder. Diluted ownership of a $500 million company is a lot more valuable than sole ownership of a $10 million company."

Devolvement

Devolvement: "Devolvement What does it Mean? When the undersubscription of a security issue forces the underwriting investment bank to purchase unsold securities during an offering. Devolvement is often an indication that the market currently has negative sentiments toward the issue. This negative sentiment can have a significant impact on subsequent demand. Investopedia Says... Devolvement poses substantial risk for the underwriting investment bank. When it is required to purchase unsubscribed shares of an issue, it will often purchase the stock at a higher-than-market-value price. Because demand is lower than anticipated, there are few buyers for the security at its issued value. Typically, the investment bank will not hold onto the floundering issue for too long and will usually liquidate the shares in the market, often causing a financial loss."

Depository Trust Company Tracking (DTCT)

Depository Trust Company Tracking (DTCT): "Depository Trust Company Tracking (DTCT) What does it Mean? A service, used by underwriting firms, that provides a method of tracking the exact path of purchases and sales of newly issued securities. Investopedia Says... Underwriters don't like flippers. DCTT attempts to deter premature selling of IPOs. The underwriters may even implement penalties against the flipper."

Deficiency Letter

Deficiency Letter: "Deficiency Letter What does it Mean? A letter, issued by the Securities and Exchange Commission (SEC) indicating a significant deficiency or omission in a registered statement or prospectus. A deficiency letter should be dealt with promptly, and the SEC should be alerted of any actions taken to remedy the situation. Investopedia Says... When issuing securities, a deficiency letter will usually disrupt the process. The letter will often halt the registration process, postponing the date of the issue. This prevents a company from receiving funds at an expected date. Furthermore, a stop order may be issued along with the deficiency letter. This will prevent any sale of the securities in the issue until the deficiency is handled."

Debt Financing

Debt Financing: "Debt Financing What does it Mean? When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid. Investopedia Says... The other way of raising capital is to issue shares of stock in a public offering. This is called equity financing."

Death Valley Curve

Death Valley Curve: "Death Valley Curve What does it Mean? A slang phrase used in venture capital to refer to the period of time from when a startup firm receives an initial capital contribution to when it begins generating revenues. During the death valley curve, additional financing is usually scarce, leaving the firm vulnerable to cash flow requirements. Investopedia Says... The name 'death valley' refers to the high probability that a startup firm will die off before a steady stream of revenues is established. After a firm receives its first round of financing, it incurs a lot of initial costs. Offices are usually built, staff is hired and operating costs are incurred; meanwhile, the firm is not earning significant income. Unless a firm can effectively manage itself through the death valley curve, it will fall victim to negative cash flows."

Deal Flow

Deal Flow: "Deal Flow What does it Mean? The rate at which new proposals are flowing to the underwriters of an investment bank. Investopedia Says... Proposals include initial public offerings (IPO) of securities, takeovers, acquisitions, and mergers."

Credit Sleeve

Credit Sleeve: "Credit Sleeve What does it Mean? A form of credit agreement, backed by physical assets, where the lending party will provide working capital and collateral to another company, known as the 'sleeve provider'. The lending party will essentially co-guarantee certain outstanding credit arrangements the sleeve provider has with other lenders and increase the overall credit quality of the sleeve provider. Investopedia Says... This type of working capital loan is most often found within the energy industry, where sleeves are backed by physical energy assets and carry certain cash flow requirements for the sleeve provider to continue to operate. Credit sleeves are often set up when a company has seen its credit quality decline and access to traditional forms of debt financing has run dry."

Crammed Down

Crammed Down: "Crammed Down What does it Mean? 1. A situation in which venture capitalists refuse to invest in a new project unless the preceding investors of the company lower the value of their original investment. 2. A bankruptcy procedure that allows a bankruptcy court to initiate a reorganization plan for a company despite objections from creditors. The creditors will still maintain collateral on the company as long as the firm offers repayment of the 'secured portion' or fair market value of the collateral in their repayment plan. Investopedia Says... 1. If the earlier investors of the company don't pony up new cash for the next round of financing, then their interest in the company is 'crammed down.' 2. Creditors usually don't like this because they would rather liquidate the company's assets and get back some of the money owed to them."

Countertrend Strategy

Countertrend Strategy: "Countertrend Strategy What does it Mean? A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as 'counter-trend trading'. Investopedia Says... Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized. Many counter-trend investors use momentum indicators to determine the best times to execute their trades."

Contingent Value Rights (CVR)

Contingent Value Rights (CVR): "Contingent Value Rights (CVR) What does it Mean? A type of right given to shareholders of an acquired company (or a company facing major restructuring) that ensures they receive additional benefit if a specified event occurs. A contingent value right is similar to an option because it often has an expiration date that relates to the time the contingent event must occur. Investopedia Says... For example, shareholders of an acquired company may receive a CVR that enables them to receive additional shares of the target company in the event that target company's share price falls below a certain level by a specified date. Another example of a CVR would be for a target company to set aside a large sum of money that would be transferred to the shareholders of the acquired company in the event that the price of the target company's shares do not meet a certain target or fall below a specified price."

Contingent Guarantee

Contingent Guarantee: "Contingent Guarantee What does it Mean? A guarantee of payment that is dependent on one or more future events. Investopedia Says... Here's an example of a contingent guarantee: say a bank writes a guarantee of payment on behalf of one of its customers, who in turn uses the guarantee to secure a transaction with a vendor. This is a contingent guarantee because the bank is required to make payment only if its client forfeits on the payment. This type of guarantee is often used when a seller does business in an unfamiliar country, in an attempt to reduce the probability of the other party defaulting."

Concession

Concession: "Concession What does it Mean? A selling group's compensation in a stock or bond underwriting agreement. Investopedia Says... This is usually on a per-share or per-bond basis."

Competitive Bid

Competitive Bid: "Competitive Bid What does it Mean? A process whereby an underwriter submits a sealed bid to the issuer. The issuer awards the contract to the underwriter with the best price and contract terms. Investopedia Says... This process is used for everything from IPOs"

Club Deal

Club Deal: "Club Deal What does it Mean? A private equity buyout or the assumption of a controlling interest in a company that involves several different private equity firms. This group of firms pools its assets together and makes the acquisition collectively. The practice has historically allowed private equity to purchase much more expensive companies together than they could alone. Also, with each company taking a smaller position, risk can be reduced. Investopedia Says... While club deals have grown in popularity in recent years, there are many issues that can arise related to regulatory practices, conflicts of interest and market-cornering. For example, there are concerns that club deals decrease the amount of money that shareholders receive, as a group of private equity firms has fewer parties to bid against. There are some private-equity firms that do not engage in club deals as a rule, but the choice is up to the firm and the wishes of the limited partners who make most of the big money decisions within those firms. As with many large private equity deals, the main objective is to fix up and then dress up the acquisition for future sale to the public."

Carve-out (Equity Carve-Out)

Carve-out (Equity Carve-Out): "Carve-out (Equity Carve-Out) What does it Mean? 1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering. 2. Where an established brick-and-mortar company hooks up with venture investors and a new management team to launch an Internet spinoff. Investopedia Says... In most cases the parent company will spinoff the remaining interests to existing shareholders at a later date when the stock price is much higher. Also known as a 'carveout' or an 'equity carve out.'"

Carried Interest

Carried Interest: "Carried Interest What does it Mean? A share of any profits that the general partners of private equity and hedge funds receive as compensation, despite not contributing any initial funds. This method of compensation seeks to motivate the general partner (fund manager) to work toward improving the fund's performance. Investopedia Says... Traditionally, the amount of carried interest comes out to around 20-25% of the fund's annual profit. While all funds tend to have a small management fee, the management fee is meant to only cover the costs of managing the fund, with the exception of compensating the fund manager. Carried interest is meant to serve as the primary source of income for the general partner. However, the general partner must ensure that all the initial capital that the limited partners contribute is returned along with some previously agreed upon rate of return."

Buy-In Management Buyout (BIMBO)

Buy-In Management Buyout (BIMBO): "Buy-In Management Buyout (BIMBO) What does it Mean? A form of a buyout that incorporates characteristics of both a management buyout and a management buy-in. A BIMBO occurs when existing management - along with outside managers - decides to buyout a company. The existing management represents the buyout portion while the outside managers represent the buy-in portion. Investopedia Says... This option provides the best of both worlds of a buy-in and a buyout. For one thing, you can expect that the transfer will be made much more efficiently, because the existing members of management are already familiar with the business that is taking over. The management buy-in most likely will bring in outside individuals with a certain expertise lacking in the organization and will benefit the firm greatly. However, a BIMBO may not be so perfect. Tension may arise between the firm's employees and new members of management. If the employees feel threatened by the new management, the firm's performance may decline."

Buy, Strip And Flip

Buy, Strip And Flip: "Buy, Strip And Flip What does it Mean? When a private equity firm buys out a target firm (usually with a leveraged buyout) and then sells the target firm in an IPO within a relatively short period of time. Along the way, the private equity firm may take out loans to make special dividends or carry out other actions to improve its own financial situation. Investopedia Says... Private equity firms typically own and manage a target firm for a number of years. In this time, the company's management and financial situation are improved before the private equity firm cuts the newly-successful company loose with an IPO, at which time the private equity firm earns a nice return for all its work. In the buy, strip and flip situation, purchased firms are held for only a year or two before the IPO. This usually means that the firm's financial situation is virtually unchanged and, as a result, most of these IPOs do not perform very well."

Burn Rate

Burn Rate: "Burn Rate What does it Mean? The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words, it's a measure of negative cash flow. Investopedia Says... Burn rate is usually quoted in terms of cash spent per month. For example, a burn rate of 1 million would mean the company is spending 1 million per month. When the burn rate begins to exceed forecasts, or revenue fails to meet expectations, the usual recourse is to reduce the burn rate (which, in most companies, means reducing staff)."

Bulge Bracket

Bulge Bracket: "Bulge Bracket What does it Mean? The group of firms in an underwriting syndicate who sold the largest amount of the issue. Investopedia Says... The bulge bracket is usually the first group listed on the tombstone."

Brought Over The Wall

Brought Over The Wall: "Brought Over The Wall What does it Mean? A situation where an employee in the research department of an investment bank - usually a research analyst - is brought over to work for the underwriting department in order to focus on a particular company. The purpose of such a transfer is to add a knowledgeable opinion to the underwriting process, thereby adding value to it. Also known as 'brought over the Chinese Wall'. Investopedia Says... The Chinese Wall refers to the division between the analysts of an investment bank and the bank's underwriting department. The division is meant to prevent the exchange of inside information between the two departments. Once the underwriting process is complete, the research employee who has been brought over 'the wall' is not allowed to comment on any information learned in the underwriting process until it has become public knowledge."

Bridge Financing

Bridge Financing: "Bridge Financing What does it Mean? A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Investopedia Says... These funds are usually supplied by the investment bank underwriting the new issue. As payment, the company acquiring the bridge financing will give a number of shares at a discount of the issue price to the underwriters that equally offsets the loan. This financing is, in essence, a forwarded payment for the future sales of the new issue."

Break Issue

Break Issue: "Break Issue What does it Mean? A type of stock initial public offering (IPO) that trades below the original offering price to the market within the first few months after trading begins. A break issue can be the result of poor market conditions as a whole, industry concerns or lack of demand in the new issue itself. Investopedia Says... If several IPOs drop below their original offering price in a short period of time, private companies looking to go public (and the underwriters looking to take them there) may delay their security filings, as investor demand would be deemed low. Any one IPO will rise or fall on its own merits, but a trend of poor performance may signal that the timing just isn't right to make a company public. Break issues also can be the result of a venture-capital firm hoping to quickly cash-out of one or more of their portfolio investments before the company is mature enough to be a public issue."

Bought Deal

Bought Deal: "Bought Deal What does it Mean? A new share issue that is bought entirely by one underwriter to resell to investors. Investopedia Says... An underwriter will only do a bought deal if it is confident there is enough demand for the shares."

Bootstrapping

Bootstrapping: "Bootstrapping What does it Mean? 1. A procedure used to calculate the zero coupon yield curve from market figures. 2. A situation in which an entrepreneur starts a company with little capital. An individual is said to be boot strapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company. Investopedia Says... 1. Since the T-bills offered by the government are not available for every time period, the bootstrapping method is used to fill in the missing figures in order to derive the yield curve. The bootstrap method uses interpolation to determine the yields for Treasury zero coupon securities with various maturities. 2. Compared to using venture capital, boot strapping can be beneficial as the entrepreneur is able to maintain control over all decisions. On the downside, however, this form of financing may place unnecessary financial risk on the entrepreneur. Furthermore, boot strapping may not provide enough investment for the company to become successful at a reasonable rate."

Bootstrap

Bootstrap: "Bootstrap What does it Mean? A situation in which an entrepreneur starts a company with little capital. An individual is said to be boot strapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company. Investopedia Says... Compared to using venture capital, boot strapping can be beneficial as the entrepreneur is able to maintain control over all decisions. On the downside, however, this form of financing may place unnecessary financial risk on the entrepreneur. Furthermore, boot strapping may not provide enough investment for the company to become successful at a reasonable rate."

Booster Shot

Booster Shot: "Booster Shot What does it Mean? The name given to the first formal recommendation report issued by an underwriter for an IPO. It is presented in the process of the public offering. Investopedia Says... The booster shot acts as a way to reinforce attractiveness of the new issue. The underwriter attempts to ensure a successful offering by strengthening the issues appeal."

Book Runner

Book Runner: "Book Runner What does it Mean? The managing or lead underwriter who maintains the books of securities sold for a new issue. Investopedia Says... In other words, this person is the underwriter who 'runs' the books. Often the book runner is given credit for the total size of the deal."

Book Building

Book Building: "Book Building What does it Mean? The process by which an underwriter attempts to determine at what price to offer an IPO based on demand from institutional investors. Investopedia Says... An underwriter 'builds a book' by accepting orders from fund managers indicating the number of shares they desire and the price they are willing to pay."

Blue Sky Laws

Blue Sky Laws: "Blue Sky Laws What does it Mean? State regulations designed to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial details. This allows investors to base their judgments on trustworthy data. Investopedia Says... The term is said to have originated in the early 1900s when a Supreme Court justice declared his desire to protect investors from speculative ventures that had 'as much value as a patch of blue sky.'"

Blitzkrieg Tender Offer

Blitzkrieg Tender Offer: "Blitzkrieg Tender Offer What does it Mean? A takeover offer that is intended to be so attractive that very few objections will arise and the takeover will occur swiftly. In German, 'blitz' means lightning and 'krieg' means war. Thus, a blitzkrieg (lightning war) refers to a surprise offensive that is both powerful and swift and was used to describe World War II bombing raids. Investopedia Says... To curtail surprise takeovers such as Blitzkrieg Tender Offers and Saturday Night Specials, the Williams Act of 1968 was introduced, placing severe restrictions on tender offers and required disclosure of direct or indirect ownership of 5% or more of any class of equity"

Blind Pool

Blind Pool: "Blind Pool What does it Mean? A limited partnership or stock offering with no stated investment goal for the funds that are raised from investors. In a blind pool, money is raised from investors, usually trading on the name of a particular individual or firm, but few restrictions or safeguards are in place for investor security. May also be called 'blank check underwriting' or a 'blank check offering'. Investopedia Says... Blind pools are often a product of late-stage market rallies, when investors and financiers tend to become more greedy than prudent. Many fraudulent deals in the 1980s and 1990s gave blind pools a bad name. Sometimes these pools are born and later dissolved without making a single investment - but the managers or general partners still make off with hefty fees. Some of the largest and most-respected Wall Street firms have underwritten blind pools. However, this backing aside, investors should be very cautious of any investment without a stated objective."

Blind Pool

Blind Pool: "Blind Pool What does it Mean? A limited partnership or stock offering with no stated investment goal for the funds that are raised from investors. In a blind pool, money is raised from investors, usually trading on the name of a particular individual or firm, but few restrictions or safeguards are in place for investor security. May also be called 'blank check underwriting' or a 'blank check offering'. Investopedia Says... Blind pools are often a product of late-stage market rallies, when investors and financiers tend to become more greedy than prudent. Many fraudulent deals in the 1980s and 1990s gave blind pools a bad name. Sometimes these pools are born and later dissolved without making a single investment - but the managers or general partners still make off with hefty fees. Some of the largest and most-respected Wall Street firms have underwritten blind pools. However, this backing aside, investors should be very cautious of any investment without a stated objective."

Best Efforts

Best Efforts: "Best Efforts What does it Mean? An agreement an underwriter makes to act as an agent between an issuing company and investors. Investopedia Says... In a best efforts agreement, the underwriter agrees to use all efforts to sell as much of an issue as possible to the public. The underwriter can purchase only the amount required to fulfill its client's demand or the entire issue. However, if the underwriter is unable to sell all securities, it is not responsible for any unsold inventory. Best effort agreements are used mainly for securities with higher risk, such as unseasoned offerings."

Backstop Purchaser

Backstop Purchaser: "Backstop Purchaser What does it Mean? An entity that agrees to purchase all the remaining, unsubscribed securities from a rights offering. The backstop purchaser provides security to the issuing firm by guaranteeing that all of the newly issued shares will be purchased, allowing the company to fulfill its fundraising requirements. Investopedia Says... Just as a backstop in baseball prevents a ball from leaving the playing field, a backstop to an offering insures that the funds required by the firm are raised. Backstopping can cost companies large fees when participating in a rights offering. Similar to an underwriter, the backstop purchaser takes on the risk of issuing new securities and is paid a premium for compensation. For example, when Berkshire Hathaway acted as a backstop purchaser for USG Corporation, it earned a non-refundable fee of $67 million for the service."

Back Stop

Back Stop: "Back Stop What does it Mean? The act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. A company will try and raise capital through an issuance and to guarantee the amount received through the issue, the company will get a back stop from an underwriter or major shareholder to buy any of the unsubscribed shares. Investopedia Says... For example, in a rights offering you might hear 'ABC Company will provide a 100% back stop of up to $100 million for any un-subscribed portion of the XYZ Company rights offering.' If XYZ is trying to raise $200 million but only raises $100 million through investors then ABC Company will purchase the remainder."

Back Of The Napkin Business Model

Back Of The Napkin Business Model: "Back Of The Napkin Business Model What does it Mean? A slang term that refers to the representation of the basic components of a business model excluding any fine details. It incorporates only the core ideas and success factors of the business. The name comes from the notion that a quick outline of a business can be easily sketched on the back of a napkin to sufficiently demonstrate its fundamental concepts. Investopedia Says... The slang term comes from a hypothetical scenario in which an entrepreneur pitches an idea to a potential investor over coffee, dinner or a drink. The entrepreneur quickly sketches the business model on the back of a napkin to demonstrate the feasibility of the business. This type of business model should probably only be used as part of the initial stages of planning. A final business model should be drafted for clarity and color, including complete details on all operations as well as the short-term and long-term visions of the business. Without a clear understanding of how a business will operate and bring in sustainable revenues, the probability of building a successful company is low."

Back Door Listing

Back Door Listing: "Back Door Listing What does it Mean? A strategy of going public used by a company that fails to meet the criteria for listing on a stock exchange. To get onto the exchange, the company desiring to go public acquires an already listed company. Investopedia Says... Believe it or not, purchasing a public company can be a cost-effective way for some firms to go public."

Assimilation

Assimilation: "Assimilation What does it Mean? The absorption of stock by the public from a new issue. Investopedia Says... Underwriters hope to sell all of a new issue to the public."

Angel Investor

Angel Investor: "Angel Investor What does it Mean? A financial backer providing venture capital funds for small start-ups or entrepreneurs. Investopedia Says... Typically, angel investors are friends or family members. Another good reason to mark their birthdays on your calendar!"

Allotment

Allotment: "Allotment What does it Mean? During an IPO, this is the number of shares granted to each participating underwriting firm that they are permitted to sell. Remaining surpluses are then given to other firms which have won the bid for the right to sell the IPO. Investopedia Says... This is the chunk each firm gets to sell to its customers before the stock hits the exchanges."

After-Market Performance

After-Market Performance: "After-Market Performance What does it Mean? The price level performance of a newly issued stock after its IPO. There is no standard ending time period that is considered, but after-market performance begins on the first day of trading on the exchange. Typically after-market performance will be measured through the lock-up period, anywhere from three to nine months after the IPO date. This allows for the market to 'digest' the insider shares that might be sold quickly after the lock-up period ends. By looking at the after-market performance of all IPOs over a certain time period (as in a calendar year), analysts and investment bankers can determine the overall market demand for new issues, and possibly move up or delay a schedule IPO as a result. Investopedia Says... To the company management and employees, the after-market performance of the stock is vital. If the company can reach and sustain a higher market valuation than originally estimated by the underwriting syndicate in open market trading, equity funding will be much more affordable than other methods of raising capital. Investors should keep in mind that an IPO may only represents a small percentage of total shares outstanding (usually about 20%). The remaining bulk of shares can be used to raise capital down the road as the company looks to grow and enter new markets."

Acquisition Indigestion

Acquisition Indigestion: "Acquisition Indigestion What does it Mean? A slang term describing an acquisition or merger in which the companies involved have trouble integrating with one another. Acquisition indigestion may also describe a situation in which the purchasing company has difficulty making the most of a takeover. Investopedia Says... Indigestion occurs when you eat too much or when you consume food that doesn't agree with your stomach. The same outcome relates to mergers and acquisitions that have gone sour, as companies may get indigestion when acquiring too many targets or purchasing firms that don't integrate well."

Acquisition

Acquisition: "Acquisition What does it Mean? When one company purchases a majority interest in the acquired. Investopedia Says... Acquisitions can be either friendly or unfriendly. Friendly acquisitions occur when the target firm"

Accelerated Bookbuild

Accelerated Bookbuild: "Accelerated Bookbuild What does it Mean? A form of offering in the equity capital markets. It involves offering shares in a short time period, with little to no marketing. The bookbuild of the offering is done vey quickly in one or two days. Underwriters may sometimes guarantee a minimum price and proceeds to the firm. Investopedia Says... An accelerated bookbuild is often used when a company is in immediate need of financing and debt financing is out of the question. This can be the case when a firm is looking to make an offer to acquire another firm. For example, BetandWin.com used an accelerated bookbuild to raise between 200 and 300 million euros to help fund the acquisition of Ongame E-Solutions, the operator of pokerroom.com, one of the most popular poker websites."

Absorbed

Absorbed: "Absorbed What does it Mean? 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. In mergers, when an acquired firm is folded into the acquiring company. Investopedia Says... The meaning of 'absorbed' is similar to the non-financial definition of the term."

PLI - Patent Blog

PLI - Patent Blog: "

Yesterday the United States Court of Appeals for the Federal Circuit did something rather curious. The Court reissued an opinion as precedential that was originally published on July 11, 2007 as non-precedential. In Daiichi Sankyo Co., LTD. v. Apotex, Inc., Apotex, Inc. appealed the judgment of the United States District Court for the District of New Jersey that Apotex infringed U.S. Pat. No. 5,401,741 and that the ’741 patent is not invalid or unenforceable. The Federal Circuit determined that the invention of the ’741 patent would have been obvious in view of the prior art and reversed. What is a little curious is why this has suddenly become a precedential opinion.

The Federal Circuit started off this obviousness determination by explaining the familiar four-part test for obviousness, which includes:

(1) the scope and content of the prior art; (2) the level of ordinary skill in the prior art; (3) the differences between the claimed invention and the prior art; and (4) objective evidence of nonobviousness.

For years this obviousness test has bothered me because the Federal Circuit has made objective evidence of nonobviousness required for every obviousness determination despite the fact that in Graham v. John Deere the Supreme Court specifically explained that such evidence "may" be helpful. How the permissive "may" has been turned into a mandatory "shall" never quite set well with me, but it is not the first time that the Federal Circuit has overruled the Supreme Court so what the heck, right?

After setting forth the obviousness factors, which are certainly not worthy of being a precedential opinion, the Court explained that they were going to focus their inquiry on the second factor, the level of ordinary skill in the prior art. This then lead the court to once again state the well established law relative to determining the level of ordinary skill, which include but are not limited to:

(1) the educational level of the inventor; (2) type of problems encountered in the art; (3) prior art solutions to those problems; (4) rapidity with which innovations are made; (5) sophistication of the technology; and (6) educational level of active workers in the field."

The Federal Circuit then went on to determine that the inventors of the ’741 patent were specialists in drug and ear treatments—not general practitioners or pediatricians. At the time of the invention, Inventor Sato was a university professor specializing in otorhinolaryngology; Inventor Handa was a clinical development department manager at Daiichi, where he was involved with new drug development and clinical trials; and Inventor Kitahara was a research scientist at Daiichi engaged in the research and development of antibiotics. Therefore, the Federal Circuit concluded that the level of ordinary skill in the art was that of a person engaged in developing pharmaceutical formulations and treatment methods for the ear or a specialist in ear treatments such as an otologist, otolaryngologist, or otorhinolaryngologist who also has training in pharmaceutical formulations.

Having made this determination relative to exactly what the level of skill in the art was, the Federal Circuit had little difficulty concluding that the claims had to fall because they were obvious. This was an easy conclusion given that there was a reference explaining that a ciprofloxacin compound would be effective and that it was well known that ofloxacin (the compound used in the claims) was a substitute for ciprofloxacin.

So why did the Federal Circuit make this a precedential opinion? Perhaps it was because the district court followed recent Federal Circuit precedent and, nevertheless, still managed to get it wrong in the eyes of the Federal Circuit.

Specifically, the district court concluded that the ordinary person skilled in the art pertaining to the ’741 patent "would have a medical degree, experience treating patients with ear infections, and knowledge of the pharmacology and use of antibiotics. This person would be . . . a pediatrician or general practitioner..." In reaching this determination the district court relied on Merck & Co. v. Teva Pharm. USA, Inc., 347 F.3d 1367 (Fed. Cir. 2003), a case in which the invention related to a method of treating, as did the invention in this case. Nevertheless, the Federal Circuit pointed out that even though the affirmed that in the Merck/Teva case where they affirmed that the the person having ordinary skill in the relevant art was a person having a medical degree, experience treating patients, and knowledge of the pharmacology and usage of biphosponates, the level of skill in the art was not disputed by the parties and, thus, the Federal Circuit simply accepted the district court’s finding.

So you are not convinced that is enough? Me either. So essentially what we have here is another situation where there is going to be Federal Circuit precedent going both ways. Sometimes when the invention relates to a method of treating the person of skill in the art will be a medical practitioner, and sometimes it will be a research scientist. I suppose that it will all depend upon who the inventors are, which as Dennis Crouch from Patently-O puts it means that in this case the invention was obvious because the inventors were experts. I'm not sure I would go that far, but if this case does stand for that proposition god help us all!

For additional information on this case I suggest the Orange Book Blog, which provided a summary of the original non-precedential opinion.

"

VentureBeat � Roundup: VC industry cut in half, Obama is LinkedIn, Google-Nasa and more

VentureBeat � Roundup: VC industry cut in half, Obama is LinkedIn, Google-Nasa and more: "VC industry cut in half? — Are there too many VCs chasing too many similar ideas — off the financial cliff? Recent stats coming from the national VC lobby group, NVCA, suggest VC is suffering some fallout. In 2000, there were 1156 different venture firms that made at least one new deal. In 2006, there were only 597. That’s almost a 50 percent drop! (Venture firm OVP makes the observation in its newsletter.)"

Size important in bio world | Herald Sun

Size important in bio world | Herald Sun: "

MELBOURNE'S biotechnology leaders were looking at each other in a new light after listening to Matt McNamara.

The Intersuisse Bioscience Managers head told a group of chief executives yesterday they needed to get bigger to get noticed.

And the best way to do that was to buy another company or find other ways to break through the magic $100 million market capitalisation mark.

Matt said fewer than 30 of Australia's 130 listed biotechnology companies had crossed that mark, which put them on the radar of institutional investors.

"Size is important and if you are under that neat number, concentrate on trying to get over it."

Matt said the three best ways to add to a company's market capitalisation were to raise capital, grow organically or buy bolt-on businesses.

Some of the obstacles in the way of consolidation included weak and non-commercial boards, chief executives trying to protect their jobs, unrealistic valuations and pre-clinical technology.

While the Australian share market was less mature in valuing biotechnology than the US market, Matt said Australian biotechs were becoming well known for their good science and cheap valuations.

Which meant our companies were being noticed by large pharmaceutical companies that were shopping for breakthroughs further down the food chain.

Matt's advice for biotechs was to talk to big pharmaceutical companies as early as possible about things like the design of clinical trials.

"If you can save them repeating trials down the track it is a great idea - they are becoming much more consultative," he said.

As for the general health of the biotech sector, Matt said the usual complaints were a lack of capital, institutional coverage and experienced executives.

But with a lot more local companies funding phase three trials, it was "a very exciting time to be in the industry."

That is assuming your company is a predator rather than prey, of course."

Biogen Idec (BIIB): Successful biotechnology practitioner - BloggingStocks

Biogen Idec (BIIB): Successful biotechnology practitioner - BloggingStocks: "

Biogen Idec (BIIB): Successful biotechnology practitioner

Posted Sep 13th 2007 3:25PM by Larry Schutts
Filed under: Genentech Inc (DNA), Technical Analysis, Stocks to Buy

Biotechnology firms are judged on the basis of how successful they are at shepherding drug candidates through the clinical trial/regulatory approval process. With several approved formulations and more than twenty products currently in clinical development, there is a Cambridge, Massachusetts outfit that ranks with the best.

Biogen Idec (NASDAQ: BIIB) specializes in drugs for neurological disorders, autoimmune disorders and cancer. Products include multiple sclerosis treatments Avonex and Tysabri; psoriasis drug Fumaderm; cancer radioimmunotherapy Zevalin; and Rituxan, a cancer formulation developed with Genentech (NYSE: DNA). The company was formed in 2003, by the merger of Biogen and Idec Pharmaceuticals.

The firm pleased investors last week, when it affirmed expectations for full year EPS of $2.60-$2.70 and revenues of $3.12-$3.16 billion. Analysts had been looking for $2.68 and $3.13 billion. Management also said it expects to grow revenue by 15% each year from 2007 to 2010 and will increase earnings per share, before charges and expenses, by 20% annually for those years. The news kept BIIB shares cycling through a positive seven-week trading channel. The price is currently at the base of that channel, where oversold Stochastic and MACD technical parameters suggest the potential for a rise back toward the top.

Brokers recommend the issue with six "buys," nineteen "holds" and one "sell." Analysts see a 22 % growth rate through the next year. The BIIB Price to Book ratio (4.05), Price to Free Cash Flow ratio (25.72), EPS Growth rate (32.08%), Operating Margin (26.79%), Net Profit Margin (20.09%) and Net Income per Employee ($155.4k) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 12 months, it has traded between $42.86 and $67.85. A stop-loss of $55.25 looks good here. Note that the firm is expected to announce Q3 results in late October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

"

ThirdBiotech Networking Group Launches

ThirdBiotech Networking Group Launches: "PHOENIX, Sept. 11 /PRNewswire-FirstCall/ -- ThirdBiotech (http://www.thirdbiotech.com), a biotechnology networking group, today announced that it has begun operations in Arizona. (Logo: http://www.newscom.com/cgi-bin/prnh/20070911/LATU119LOGO) Jeff Morhet, founder of ThirdBiotech created the group to foster networking and collaboration for the biotech, life sciences and healthcare community throughout the state. 'It's important we start finding other ways to bring people together. No lectures -- just a great time, and maybe someone will strike another life science deal,' he said describing the monthly event."

Looking Forward at Pfizer

Looking Forward at Pfizer: "Pfizer ... gave little information on how it would compensate for the up to $19 billion in annualized product sales from drugs such as Lipitor, Viagra, and schizophrenia treatment Geodon, which will be facing generic competition by 2014. ...

As Pfizer stated during the Bear Stearns presentation, "due to changing markets and political environments" (i.e. governments throughout the world less concerned about intellectual property rights and reimbursement for me-too follow-on drugs), the trend to combat lost patent exclusivity will focus on developing biologic compounds that are significantly harder to copy (make generically) than their small-molecule counterparts.

The movement toward development of biologics is why AstraZeneca acquired MedImmune for $15 billion earlier in the year and why Pfizer is beefing up its pipeline with 25 biopharmaceutical compounds in preclinical or later stages, and another 40 in discovery. As Amgen (Nasdaq: AMGN) has shown with Epogen, that good complex biologic can provide years of generic-free blockbuster sales even after expiration of its key patents."

VentureBeat � Personal-genetics startup Navigenics, a competitor to Google-backed 23andMe, unstealths

VentureBeat � Personal-genetics startup Navigenics, a competitor to Google-backed 23andMe, unstealths: "In other words, Navigenics essentially intends to get people to have their genomes scanned in a rough-and-ready fashion — in other words, they’ll scan your genes with chips that look for single-letter variations in the genetic code, instead of laboriously reading it out letter by letter — and then to match up what they find with the latest information on the diseases to which your genes might predispose you. Navigenics so far seems focused on the question of what your genes might say about disease, whereas 23andMe is apparently also interested in helping people trace their genealogy and creating social networks where they can compare and contrast their genetics."

VentureBeat � Decoding 23andMe — Illumina spills the beans

VentureBeat � Decoding 23andMe — Illumina spills the beans: "The fundamentals aren’t too different from what Varsavsky has described previously. 23andMe customers will take a DNA sample — Flatley suggests it could involve either saliva or a cheek swab — and send it in to Illumina for genotyping. Instead of scanning the whole genome letter-by-letter, Illumina’s microbead-based scanners detect hundreds of single-letter DNA variations that give a useful but rough approximation of what the full genome would look like. (The upside is that scanning for these variations, technically known as single-nucleotide polymorphisms, or SNPs, is far faster and cheaper than reading through the entire genome.) 23andMe would then throw that information up on a secure Web page, where users could then analyze it to their hearts’ content."

Accenture and Bristol-Myers Squibb Launch Pharmaceutical Industry's First Joint Center for Pharmacovigilance

Accenture and Bristol-Myers Squibb Launch Pharmaceutical Industry's First Joint Center for Pharmacovigilance: "Pharmacovigilance is the monitoring of safety data to ensure optimal use of medicines. It entails the capture, assessment, and reporting of potential side effects to medicines. "

PharmaLive: Regeneron Announces Positive Results in Exploratory Proof-of-Concept Study of Rilonacept in Chronic Active Gout

PharmaLive: Regeneron Announces Positive Results in Exploratory Proof-of-Concept Study of Rilonacept in Chronic Active Gout: "

TARRYTOWN, N.Y.--(BUSINESS WIRE)--Sep 10, 2007 - Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN) today announced that treatment with rilonacept (IL-1 Trap) demonstrated a statistically significant reduction in patient pain scores in a single-blind, placebo run-in-controlled study of 10 patients with chronic active gout. Mean patients' pain scores, the key symptom measure in persistent gout, were substantially reduced during blinded active treatment (-41%, p=0.025, during the first two weeks of active treatment, and -56%, p less than 0.004, after six weeks of active treatment), as compared to changes during the blinded two-week placebo run-in period (-13%, which was not statistically significant). In this study in which safety was the primary endpoint measure, treatment with rilonacept was generally well tolerated with mild injection-site reaction being the only reported drug-related adverse event.

This study enrolled patients with chronic active gout, who had been suffering ongoing persistent joint pain and inflammation for at least four weeks and for whom standard therapies were ineffective or associated with risks related to side effects. Disease activity changes during a blinded placebo run-in period were compared to changes during subsequent blinded treatment with rilonacept. After six weeks of rilonacept treatment, 70 percent of patients achieved at least a 50 percent improvement in their pain scores; none of the patients achieved a 50 percent improvement in their pain scores during the placebo run-in period. Other efficacy measures, including patients' and physicians' global assessments of disease activity and joint assessment scores, were improved with rilonacept treatment. Detailed data from the study will be presented at an upcoming scientific conference.

"Rilonacept clearly improved patients' symptoms in this small pilot study that included refractory gout patients with chronic disease complicated by acute exacerbations," said Robert Terkeltaub, M.D., Professor of Medicine and Associate Division Director at the University of California at San Diego and Chief of Rheumatology at the Veterans Administration Medical Center. "These results are particularly noteworthy given that refractory patients such as these do not typically show spontaneous improvement in symptoms. Further studies of rilonacept are warranted in a variety of gout conditions, as large numbers of patients are dissatisfied with or intolerant to existing therapies."

"We are very pleased with the outcome of this exploratory proof-of-concept study. While this was a small study in a heterogeneous group of gout sufferers, it represents the first controlled and blinded study of an interleukin-1 (IL-1) blocking agent in gout. It is consistent with a wealth of preclinical data suggesting that IL-1 could be an important driver of pain and inflammation in gout," stated George D. Yancopoulos, M.D., Ph.D., President of Regeneron Research Laboratories. "Based upon these results, we are committed to further studying rilonacept in a variety of gout settings."

Regeneron is currently initiating a double-blind, placebo-controlled Phase 2 study of rilonacept in the prevention of gout flares induced by the initiation of uric acid-lowering drug therapy used to control the disease. Gout is often characterized by high blood levels of uric acid, a bodily waste product normally excreted by the kidneys. The uric acid can form crystals in the joints of the toes, ankles, knees, wrists, fingers, and elbows. Chronic treatment with uric acid-lowering medicines, such as allopurinol, is prescribed to eliminate the uric acid crystals and prevent reformation. During the first several months of therapy and before uric acid blood levels are sufficiently reduced, dissolution of the uric acid crystals can result in stimulation of inflammatory mediators, including IL-1, resulting in acute flares of joint pain and inflammation. This Phase 2 study will explore the safety and efficacy of rilonacept in preventing gout flares in patients initiating allopurinol therapy.

"

PharmaLive: ImClone Settles Patent Lawsuit and Gains Rights to Additional Intellectual Property

PharmaLive: ImClone Settles Patent Lawsuit and Gains Rights to Additional Intellectual Property: "

NEW YORK--(BUSINESS WIRE)--Sep 10, 2007 - ImClone Systems Incorporated (NASDAQ: IMCL) today announced that it has signed settlement and sublicensing agreements with the Massachusetts Institute of Technology (MIT) and Repligen Corporation to end litigation related to U.S. Patent No. 4,663,281, which is owned by MIT and exclusively licensed to Repligen. All terms of the agreements have been finalized and the parties will submit a stipulation of dismissal to the court. This settlement eliminates the need for the trial proceedings previously scheduled to begin today, as well as any further court proceedings or decisions relating to damages sought from ImClone by MIT and Repligen with respect to U.S. Patent No. 4,663,281.

Pursuant to the terms of the settlement, ImClone will pay a total of $65.0 million in cash for full and final settlement of the claims against ImClone in the matter, as well as for a royalty-free, irrevocable worldwide sublicense to technology patented under U.S. Patent No. 4,663,281. The $65.0 million lump-sum payment ImClone has made to Repligen represents the full amount ImClone will pay to settle its litigation with MIT and Repligen. Repligen is responsible for providing MIT with its portion of the settlement payment.

Importantly, pursuant to the terms of the settlement, Repligen also granted to ImClone a royalty-free, irrevocable worldwide sublicense for the future use of other patented technology, including U.S. Patent No. 5,665,578, which is owned by Abbott Laboratories, but to which Repligen has the power to sublicense under an agreement between Abbott Laboratories and Repligen. U.S. Patent No. 5,665,578 is the patent upon which Abbott Laboratories sued ImClone for patent infringement earlier this year.

ImClone's payment of $65.0 million to Repligen will be reflected in ImClone's third quarter 2007 financial results.

"ImClone is very pleased to have reached this settlement with Repligen and MIT," said John H. Johnson, Chief Executive Officer of ImClone. "We are happy to put this litigation behind us and move forward in our efforts to continue to grow worldwide sales of ERBITUX(R)."

"

Google's Genetic Start-Up - Forbes.com

Google's Genetic Start-Up - Forbes.com: "

"We'd like to give all of you an opportunity to meet your genome."

That was the offer made to a roomful of analysts by Jay Flatley, chief executive of biotech Illumina (nasdaq: ILMN - news - people ). And in his sales pitch, he spilled details on one of the most-watched start-ups in Silicon Valley ( This meeting was Webcast here).

Illumina makes tools used by scientists to study the genes of humans, other animals and plants, and it does a brisk business. Its sales have doubled since last year, and its stock is up 30% in 12 months and 250% over two years. Now Illumina has to convince Wall Street it can continue that winning streak. To help do that, Flatley talked about Illumina's partnership with 23andMe, a start-up that has raised about $10 million in venture capital.

23andMe isn't just any start-up. The company was co-founded by Anne Wojcicki, the new wife of Google (nasdaq: GOOG - news - people ) billionaire Sergey Brin. Google put $3.6 million into the start-up, and $2.6 million of 23andMe's funding went to pay back a loan from Brin to the new company. That was enough to get the gossips jabbering. Other investors include Genentech (nyse: DNA - news - people ) and tech investor Esther Dyson.

But despite the chatter, there hasn't been a lot of information about what 23andMe is going to do, or how it is going to make money. The name comes from the fact that every person has 23 pairs of chromosomes, tangles of DNA that contain our genes. (We each get one set of 23 from Mom, the other from Dad.)

23andMe's Web site says the company is "developing new ways to help you make sense of your own genetic information." It also promises "broad, secure and private access to trustworthy and accurate individual genetic information." Flatley went a lot farther, giving an outline of what 23andMe will offer and then giving the product its first public consumer review.

Costumers would give 23andMe a sample (it might be some spit or a Q-tip rubbed on the inside of the cheek). This would be sent to Illumina to be genotyped. Illumina and its main competitor, Affymetrix (nasdaq: AFFX - news - people ), make what are known as DNA chips, devices that can sample the genome in hundreds of places. These chips have been leading to a revolution in genetics, with dozens of DNA variations being potentially linked to diseases so far this year.

Illumina would then be able to tell 23andMe about hundreds of DNA variations, called single nucleotide polymorphisms, or SNPs, that each customer has. 23andME would make that information available through a password-protected Web site. And people would be able to log on and get information about what SNPs (pronounced "snips") they have.

Initially, Flatley said, the company will be more focused on ancestry--questions like which parent one got more traits from, or who your distant relatives are--than medicine. Many researchers say most genetic discoveries are so far only of limited medical utility.

Flatley said he has already been able to try out a dry run of this software. He described logging on to 23andMe with his wife standing over his shoulder, and she proceeded to barrage him with questions about which SNP variants he had. The site, he said, will also feature articles explaining what these variants mean. "It's actually quite intriguing," he said.

The CEO admitted he's an "early adopter"--he's going to be trying to get the $100 credit on his Apple (nasdaq: AAPL - news - people ) iPhone. But his iPhone has his genotype on it. And he showed a scan of his entire genome on a slide. Then he told the assembled analysts that anyone who wanted could sign up there to get 23andMe's services for free.

Illumina handed out sign-up cards, and told analysts to put them in a bowl in the back of the room if they were interested. Flatley said that 23andMe would be showing off its software over the next couple months. Illumina estimates that in several years the market in consumer genotyping will hit $1 billion. It's not clear, but it seems likely 23andMe might use the data it has collected to make new discoveries itself.

23andMe, which has been keeping very quiet about its plans, declined to comment for this story. But it is looking like one of the first companies to start figuring out what an explosion of genetic data will mean for the average consumer.

In genetics, a lot is happening very fast. Dyson, the 23andMe investor and board member, is one of 10 people who have agreed to have their DNA sequenced and put on the Internet as part of the Personal Genome Project. That project's lead investigator, George Church of Harvard Medical School, is an adviser to 23andMe.

"

The Denver Post - CU prof donates $20M for biotech center

The Denver Post - CU prof donates $20M for biotech center: "

CU prof donates $20M for biotech center

7Marvin Caruthers shares wealth

By Katy Human
Denver Post Staff Writer

Article Last Updated: 09/12/2007 02:05:48 AM MDT

Marvin Caruthers, a University of Colorado professor who became a biotechnology multimillionaire, donated $20 million to the university Tuesday to help construct a biotechnology center on Boulder's east campus.

"I live here, and I want this community to grow and be productive," Caruthers said.

Caruthers described his vision of the center as a place where physicists will lunch with biologists, mathematicians will occupy offices next to chemists, and students will learn about cell signaling, prosthetics design and the physics of the heart.

"People living next door to each other - that's really what you need to do modern molecular biology that solves real- world problems," Caruthers said.

The gift is the largest ever given to CU-Boulder by a faculty member, the university reported, and one of the largest gifts the university has received.

The $115 million research and teaching building, covering 260,000 square feet, will be named, pending approval of the University of Colorado Board of Regents, for Caruthers' late wife, Jennie Smoly Caruthers, who died of cancer last year.

Chancellor G.P. "Bud" Peterson said construction could begin in 12 to 18 months, depending on fundraising, which will include a $25 million request to the Colorado legislature this session.

The university asked for $23 million in construction assistance in the past legislative session and was denied, Peterson said.

This year's increase reflects inflation and the rising cost of building materials, he said.

The new facility would eventually house about 60 faculty members in the Colorado Initiative in Molecular Biotechnology.

The group, supported by other donations and grants, today involves about 20 faculty members scattered across the campus, said director Leslie Leinwand.

Caruthers, a biochemist, earned his fortune in biotechnology - both in drug development and the design of new research instruments.

He co-founded Amgen Inc. and Applied Biosystems Inc. in Boulder in the early 1980s, and more recently, Array Biopharma Inc. and Dharmacon Research Inc.

The pharmaceutical company Amgen, now based in Thousand Oaks, Calif, is the largest biotechnology company in the world, employing nearly 20,000 people.

Caruthers received a National Medal of Science from the White House earlier this year, for his work designing techniques to build DNA and RNA - the molecules of heredity.

Jennie Smoly Caruthers was also a Ph.D. scientist and researcher and studied cellular energy processing, then neurobiology, and later worked as a patent agent, Caruthers said.

Denise Brown, director of the Colorado Bioscience Association, said Caruthers' gift is an enormous investment in an interdisciplinary effort with real-life utility in mind.

Brown compared the effort to interdisciplinary programs at the University of Colorado Health Sciences Center and Colorado State University.

"I think all three of these efforts will end up with profound impacts on human health," Brown said. "The talent is there, now the organization and resources are being added."

Staff writer Katy Human can be reached at 303-954-1910 or khuman@denverpost.com.

"

Add-On Certificate of Deposit

Add-On Certificate of Deposit: "Add-On Certificate of Deposit What does it Mean? A certificate of deposit that allows the bearer to deposit additional funds, after the initial purchase date, that will bear the same rate of interest. Investopedia Says... Add-on's or add-in's to a certificate of deposit are beneficial when investors feel interest rates will decline. By having this feature, the bearer of the CD will be guaranteed a minimum interest rate return. Most financial institutions that permit the use of an add-on feature will require these additional deposits to meet a minimum dollar amount (typically $500)."

Actuary

Actuary: "Actuary What does it Mean? A professional statistician working for an insurance company. They evaluate your application and medical records to project how long you will live. Investopedia Says... Actuaries are intensively educated and their knowledge is used in many different fields in order to predict future events based upon past occurences."

Actuarial Risk

Actuarial Risk: "Actuarial Risk What does it Mean? The risk that the assumptions that actuaries implement into a model to price a specific insurance policy may turn out wrong or somewhat inaccurate. Possible assumptions include the frequency of losses, severity of losses and the correlation of losses between contracts. Also known as 'insurance risk'. Investopedia Says... Making sure that the assumptions in a model actually reflect real life is absolutely vital for the pricing of all types of insurance. Flaws in a model's assumptions could lead to premium mispricing. In the worst case scenario, an actuary may underestimate the frequency of an event. The unaccounted incidents will cause an increase in the frequency of payouts, which could bankrupt an insurer."

New Cure for Depression: Fear (DrugWonks)

New Cure for Depression: Fear (DrugWonks): "

New Cure for Depression: Fear

Peter Pitts

According to a new study, the rates of diagnosis and treatment of depression among adults have declined significantly since the FDA's warning about the possible risk of suicide among teens when they're treated with SSRIs.

"While some degree of decline in antidepressant prescribing was not unexpected after the black box warning was issued, few if any had predicted diagnosing to decline, or that other modes of treatment (psychotherapy or other medications) would remain relatively unchanged," Dr. Robert J. Valuck told Reuters Health. "It was thought that the latter two may increase to compensate for fewer antidepressant prescriptions being written."

That's worth repeating -- the black box warning has resulted in a decline not only in prescribing (no surprise there) but in diagnosis.

Does this meant that we can rid our nation of depression via fear of pharmaceuticals? That's a pretty frightening proposition.

Valuck, from the University of Colorado at Denver, and colleagues examined data relating to depression among 400,000 adult patients enrolled in managed care plans.

Hmm -- "in managed care plans." Is cost once again trumping care? Or is depression really one of those "made-up" diseaese we're reading about so much these days?

In the five years before the SSRI warning about teen suicide, the rate of diagnosed episodes of depression increased steadily from 6 to 11 per 1000 enrollees, the investigators report in the American Journal of Psychiatry.

The percentage of patients who had at least one psychotherapy session, and the percentage of depressive episodes for which possible alternatives to antidepressants were prescribed, did not change significantly after the advisory, the researchers found.

"We believe that there are likely to be many factors involved in the changes that we observed, and that they are very deserving of further study," Valuck said. "Physicians and policy makers should be aware of the power of these regulatory tools, both for the intended and unintended consequences that they may cause."

Did somebody say "unintended consequences?"

Indeed, let's not forget that in the June issue of the journal PLos Medicine a study reported that rather than boosting suicide rates, SSRIs have actually saved thousands of lives by preventing suicides since they were introduced in 1988.

For this study, the authors analyzed federal data on suicide rates since 1960, along with sales of fluoxetine (Prozac) since it became available in 1988. Analysis was continued through 2002. Prozac was used as a benchmark for the broader class of drugs.

Between the early 1960s and 1988, suicide rates held relatively steady, fluctuating between 12.2 per 100,000 and 13.7 per 100,000.

Since 1988, however, suicide rates have been on a gradual decline, with the lowest point being 10.4 per 100,000 in 2000. During the same time frame, Prozac prescriptions rose, from 2,469,000 in 1988 to 33,320,000 in 2002.

Using mathematical modeling, the investigators estimated the rates of suicide if the pre-1988 trends had continued, estimating that there would have been an additional 33,600 suicides if the pre-1988 trends had been maintained.

With that in mind, moves to restrict the use of SSRI antidepressants could have a harmful effect, the authors stated.

“I don’t think these claims that antidepressants increase suicide have a solid base,” said Dr. Julio Licinio, lead author of the study and Chairman of the Department of Psychiatry and Behavioral Sciences at the University of Miami.

“If you have a drug that’s supposed to be causing something, the more of the drug that’s used, the more of the bad outcome you would have. What we show is the converse.”

But, hey, if we just stop diagnosing the disease, then the problem will go away all by itself, right? Wrong!

This should serve as another wake-up call to those who applaud the wholesale expansion of FDA black box warnings.

"

Active Investing

Active Investing: "Active Investing What does it Mean? An investment strategy involving ongoing buying and selling actions by the investor. Active investors purchase investments and continuously monitor their activity in order to exploit profitable conditions. Investopedia Says... Active investing is highly involved. Unlike passive investors, who invest in a stock when they believe in its potential for long-term appreciation, active investors will typically look at the price movements of their stocks many times a day. Typically, active investors are seeking short-term profits."

Accumulation Unit

Accumulation Unit: "Accumulation Unit What does it Mean? 1) In the case of a variable annuity, a measurement of the value invested in the account during the accumulation period of the contract. The more funds you contribute to your annuity account, the more accumulation units you will build. 2) In the case of a unit trust, a type of investment structure where the trust's income is directly reinvested into the trust, instead of being paid out as cash to the investor. Investopedia Says... 1) Accumulation units are used to accurately measure the value of contributions by the annuitant. In times when the variable annuity's investments dip, a fixed amount of funds will buy more accumulation units than when the securities are more highly priced, just as investors are able to by more shares of cheaper stock than they can of higher priced stock with the same amount of currency. 2) Accumulation units within a unit trust can be reinvested back into the trust via boosting the unit price, or issuing additional units to investors. Either way, the investor is able to reinvest their share of profits back into the trust."

Accumulation Plan

Accumulation Plan: "Accumulation Plan What does it Mean? 1. A general financial strategy in which an investor attempts to build the value of his or her portfolio to a desired size. 2. In the context of mutual funds, a formal arrangement in which an investor contributes a specified amount of money to the fund on a periodic basis. By doing so, the investor accumulates a larger and larger investment in the fund through his or her contributions and the increase in value of the fund's portfolio. Investopedia Says... 1. A prudent accumulation plan is key to building a financial nest egg for retirement. Many investors accumulate investment funds with regular contributions and the reinvestment of dividends and capital gains. Generally, the goal is to keep funds invested, reinvest income and capital gains, and have these compound for as long as possible. 2. An accumulation plan can be useful for investors who wish to build their positions in a mutual fund over time. It also provides the benefits of dollar-cost averaging."

Accumulation Period

Accumulation Period: "Accumulation Period What does it Mean? 1. The phase in an investor's life when he/she builds up his/her savings and the value of his/her investment portfolio with the intention of having a nest egg for retirement. 2. In the context of a deferred annuity, the period of time when the annuitant is making contributions to the annuity and building up the value of his/her annuity account. This is usually followed by the annuitization phase, when guaranteed payments are paid out to the annuitant for a specified period of time (usually the rest of his/her life). Investopedia Says... 1. By choosing to defer spending until later in life, individuals create savings that can be invested in the marketplace and therefore grow over time. If they periodically invest money over the duration of their working lives, individuals can create a very lengthy accumulation period during which their savings can grow to substantial proportions. 2. In a deferred annuity, the greater your contributions are during the accumulation period (and the longer the accumulation period is), the greater your income stream will be once you begin the annuitization phase."

Accumulation

Accumulation: "Accumulation

	1) In the context of individual investing, it is the process of contributing cash to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. 2) In institutional investing, it is the action of a large investor buying up many shares of a public company over an extended period of time. 3) In corporate finance, the retention of company profits for reinvestment in business operations, as opposed to the payout of earnings as dividends to shareholders.
	1) When an individual investor is attempting to build up the value of their portfolio, they are said to be accumulating wealth. The reinvestment of profits over the course of the investment time horizon can greatly boost the pace of accumulation through the benefits of compounding. 2) Large investors and financial institutions are limited in their ability to move in and out of securities, since they deal with large numbers of shares which would drive the price of a security up if ordered all at once. In order to completely buy their intended number of shares, institutional investors spread their accumulation of shares over a period of time. 3) Rather than pay dividends out to investors, accumulation of earnings within the corporation boosts the ability for business expansion and growth, hopefully producing extra value for shareholders in the long run.

"

Accrued Market Discount

Accrued Market Discount: "Accrued Market Discount What does it Mean? The gain in the value of a discount bond expected from holding it for any duration until its maturity. Investopedia Says... As discount bonds are sold below face value, it is expected that they will gradually rise in market price until reaching maturity. For example, let's say someone purchases a discount bond with a par value of $1000 for $700. By holding the bond, they can expect a maximum gain of $300. Any appreciation above the $700 paid is called the accrued market discount. This rise in price is different than that which occurs in regular coupon bonds as a result of lowering interest rates."

Accrued Interest

Accrued Interest: "Accrued Interest What does it Mean? The interest that has accumulated on a bond since the last interest payment up to, but not including, the settlement date. There are two methods for calculating accrued interest: 1. 360-day year method, used for corporate and municipal bonds 2. 365-day year method, used for government bonds Investopedia Says... Accrued interest is added to the contract price of a bond transaction. Essentially, accrued interest has been earned since the last coupon payment - but since the bond hasn't expired or the next payment is not yet due, the owner of the bond hasn't officially received the money. If he or she sells the bond, accrued interest is added to the sale price. "

Accounting Period

Accounting Period: "Accounting Period What does it Mean? 1. In general, the time period reflected by a set of financial statements. 2. In terms of taxation, it is the 12-month period a taxpayer uses to determine his or her income tax. Investopedia Says... The accounting period is usually the calendar year."

Account Balance

Account Balance: "Account Balance What does it Mean? The net of debits and credits for an account at the end of a reporting period. Investopedia Says... This applies for all types of accounts. A bank account balance shows the amount owed to you by the bank while a credit card balance shows the amount you owe to the credit card company."

Accident And Health Benefits

Accident And Health Benefits: "Accident And Health Benefits What does it Mean? Fringe benefits provided to employees for sickness, accidental injury, or accidental death. These benefits include payment of hospital and medical expenses as well as income payments. Investopedia Says... Generally, employees can exclude the benefits from gross income. There is some incentive to extend these benefits to employees because the employer is entitled to a deduction for the payments."

List of Personal Finance Terms

List of Personal Finance Terms


Actuarial Risk
Actuary
Add-On Certificate of Deposit


Adjusted Balance Method
Adjusted Gross Income - AGI
Advance Directive
Advisor
Advisor Account
Affluenza

Agency Automatic Contributions

Alimony
All-In Cost
Allocation Notice
Allocation Rate
Allocational Efficiency


Alternative Minimum Tax - AMT
Alternative Mortgage Instrument
Alternative Order
Amended Return
American Callable Bond
Amortization
Amortization Schedule
Amortized Loan
Angel Investor
Annual Mortgage Statement
Annual Renewable Term (ART) Insurance
Annuitization
Annuitization Method
Annuity
Annuity Contract
Annuity Due
Annuity Unit
Anti-Martingale System
Applicable Federal Rate - AFR
Appraised Value
Archer MSA
Arithmetic Index
ARM Index
ARM Margin
Assessed Value
Assessor
Asset Class
Asset Management
Asset Size
Assignment
Assignment Of Proceeds
Assumable Mortgage
Assumption Clause
Attorney In Fact
Attribution Rules
Automatic Investment Plan - AIP
Automatic Reinvestment Plan
Autonomous Consumption
Autotrading
B/C Loan
Back-End Load
Balanced Fund
Balloon Loan
Bank
Bearer Bond
Beneficiary
Benefit Offset
Benjamin Graham
Bequest
Bi-Monthly Mortgage
Bi-weekly Mortgage
Blanket Insurance
Blanket Lien
Blanket Recommendation
Blind Trust
Blue Book
Blue Collar
Board Certified In Estate Planning - BCE
Book
Book Value
Boomerang
Bounced Check
Breakup Value
Broker Price Opinion - BPO
Buydown
Cafeteria Plan
Canada Education Savings Grant - CESG
Canada Premium Bond - CPB
Canada Savings Bond - CSB
Canadian Investor Protection Fund - CIPF
Canadian Mortgage and Housing Corporation - CMHC
Capital Growth Strategy
Cash Budget
Cash Flow
Cash Surrender Value
Cash-Out Refinance
Cashier's Check
Cashless Exercise
Certainty Equivalent
Certificate of Deposit Index - CODI Index
Certified Annuity Specialist - CAS
Certified Check
Certified Divorce Financial Analyst - CDFA
Certified Financial Divorce Practitioner - CFDP
Certified Fund Specialist - CFS
Certified Senior Consultant - CSC
Chapter 10
Chapter 11
Chapter 13
Chapter 7
Charge Card
Charge Off
Chargeback
Charitable Donation
Charitable Lead Trust
Charitable Remainder Trust
Chattel Mortgage
Check
Check Representment
Cherry Picking
Christmas Club
Clawback
Closed Fund
Closed-End Credit
Closed-End Lease
Closed-End Management Company
Closing Statement
Cloud On Title
CMG Plan
Co-borrower
Co-pay
Coinsurance
Collateral
Collection Agency
Combination Loan
Community Property
Compound
Compounding
Condotel
Conforming Loan Limit
Conservative Investing
Conservatorship
Consolidated Omnibus Budget Reconciliation Act - COBRA
Constant Proportion Portfolio Insurance - CPPI
Consumer Credit
Contingent Beneficiary
Conventional Mortgage
Conversion Option
Cosign
Cost Of Funds
Cost Of Living Adjustment - COLA
Cost of Savings Index - COSI Index
Coterminous
Coverdell Education Savings Account - ESA
Credit
Credit Card
Credit Cliff
Credit Life Insurance
Credit Limit
Credit Rating
Credit Score
Credit Scoring
Creditor
Crossed Check
Cumulative Interest
Current Assets
Custodial Account
Dear Money
Debt Consolidation
Debt Deflation
Debt Service
Debt-To-Income Ratio - DTI
Debtor
Deceased Alert
Decreasing Term Insurance
Deductible
Deduction
Deed
Deed In Lieu Of Foreclosure
Default
Default Premium
Default Probability
Deferred Account
Deferred Annuity
Deferred Interest
Deferred Profit Sharing Plan - DPSP
Defined-Benefit Plan
Defined-Contribution Plan
Delinquent Mortgage
Demand Deposit
Demand Draft
Dependency Ratio
Direct Deposit
Disclaim
Disclaimer Trust
Disclosure Statement
Discount Points
Discretionary ARM
Discretionary Income
Disposable Income
Diversification
Divestiture
Domini 400 Social Index
Donor Advised Fund
Downshifting
Drip Feed
Dual Apper
Dual Income, No Kids - DINKS
Dual Index Mortgage
Dually Employed With Kids - DEWKS
Due-On-Sale Clause
DUNS Number
Durables
Dutch Tulip Bulb Market Bubble
Early Withdrawal
Education IRA
Electronic Check
Emergency Fund
Employer-Sponsored Plan
End Loan
Endorsement
Endowment
Equated Monthly Installment - EMI
Equity Income
Equity Market
Escheat
Estate
Estate Freeze
Estate Planning
Estate Tax
Executor
Exordium Clause
Extended IRA
Fair and Accurate Credit Transactions Act - FACTA
Family Limited Partnership - FLP
Fannie Mae - Federal National Mortgage Association - FNMA
Federal Covered Advisor
Federal Income Tax
Federal Poverty Level - FPL
Federal Tax Brackets
Fee-Based Investment
FHA Loan
FICO Score
Fiduciary
Fiduciary Risk
Filing Status
Finance Charge
Financial Asset
Financial Modeling
Financial Plan
Financial Planner
Financing
First Dollar Coverage
First In, First Out - FIFO
First Mortgage
First-Time Homebuyer
Fixed-Income Security
Fixed-Period ARM
Fixed-Rate Mortgage
Flat Benefit Formula
Flexible Fund
Flexible Payment ARM
Flexible Spending Account - FSA
Forbearance
Forced Liquidation
Foreign Plan
Form 1099-R
Formula Investing
Franked Dividend
Fraudulent Conveyance
Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC
Friction Cost
Frozen Account
Full-Time Student
Fully Amortizing Payment
Fully Indexed Interest Rate
Fully Paid Shares
Fund Overlap
Gap Insurance
Generation-Skipping Trust
Gift
Gift Of Equity
Gift Tax
Gifting Phase
Ginnie Mae - Government National Mortgage Association - GNMA
Golden Boot
Good Faith Estimate
Government-Sponsored Retirement Arrangement - GSRA
Grace Period
Graduated Payment Mortgage
Graduation Period
Graduation Rate
Green Fund
Gross Debt Service Ratio - GDS
Gross Earnings
Gross Estate
Gross Income
Growing-Equity Mortgage
Guarantee Fees
Guaranteed Death Benefit
Guaranteed Earning Increase Death Benefit
Guaranteed Investment (Interest) Certificate - GIC
Guaranteed Investment Fund - GIF
Guaranteed Lifetime Withdrawal Benefit - GLWB
Guaranteed Minimum Accumulation Benefit - GMAB
Guaranteed Minimum Income Benefit - GMIB
Guaranteed Renewable Policy
Guardian
Guardian IRA
Hard Money Loan
Hardship Withdrawal
Health Reimbursement Account - HRA
Health Savings Account - HSA
Heir
Heroes Earned Retirement Opportunities Act - HERO
High Net Worth Individual - HNWI
High-Deductible Health Plan - HDHP
High-Yield Bond
Holding Period
Home Equity Conversion Mortgage - HECM
Home Equity Line Of Credit - HELOC
Home-Equity Loan
Homemade Dividends
Honorarium
House Poor
Household Income
Housing Bubble
Housing Expense Ratio
HUD-1 Form
Human-Life Approach
Hurdle Rate
Hybrid Annuity
Hybrid ARM
Hypothecation
Identity Theft
Idle Funds
Impact Fee
Impaired Credit
Imputed Interest
Incentive Trust
Incidents Of Ownership
Income
Income Deposit Security - IDS
Income Property
Income Splitting
Income Spreading
Income Tax
Indemnity Insurance
Independent 401(k)
Indexed ARM
Indexed Rate
Individual Retirement Account - IRA
Industry Group
Inheritance
Inheritance Tax
Inherited IRA
Initial Interest Rate Cap
Initial Rate Period
Institute For Divorce Financial Analysts - IDFA
Insufficient Funds
Insurance Claim
Insurance Score
Integrated Pension Plan
Intelligent ETF
Inter-Vivos Trust
Interest Rate Cap Structure
Interest-Only ARM
Interest-Only Mortgage
Intestacy
Intestate
Investability Quotient - IQ
Investment Advisory Representative - IAR
Investment Consultant
Investment Horizon
Investment Income
Investment Objective
Investment Policy Statement - IPS
Investment Strategy
Investment Style
Irrevocable Beneficiary
Irrevocable Trust
Job Hunting Expenses
Jobs And Growth Tax Relief Reconciliation Act of 2003
Joint Account
Joint and Survivor Annuity
Joint Credit
Joint Liability
Joint Life With Last Survivor Annuity
Joint Owned Property
Joint Return
Joint Tenants in Common - JTIC
Joint Tenants with Right of Survivorship - JTWROS
Judicial Foreclosure
Jumbo CD
Junior Mortgage
Kicking The Tires
Kiddie Tax
Last In, First Out - LIFO
Lease To Own
Lender-Paid Private Mortgage Insurance
Level-Premium Insurance
Leveraged Loan
Liar Loan
Life Annuity
Life Cap
Life Option
Life With Guaranteed Term
Life-Cycle Fund
Lifeline Account
Lifelong Learning Plan
Lifetime Cap
Limited Trading Authorization
Liquidate
Liquidity Cushion
Living Will
Loan
Loan Modification
Lockbox Banking
Long/Short Fund
Longevity Risk
Low / No Documentation Loan
Low Ball
Low-Down Mortgages
Manufactured Housing
Margin Debt
Marginal Propensity To Consume - MPC
Marginal Tax Rate
Marital Deduction
Markowitz Efficient Set
Married Filing Jointly
Married Filing Separately
Maximum Loan Amount
Maximum Loan-to-Value Ratio
McMansion
Medicaid
Medicare
Medicare Part D
Medicare Wages
Member Of Household
Microsavings
Mileage Allowance
Minimum Deposit
Minimum Down Payment
Misselling
Money Management
Money Manager
Monthly Treasury Average Index - MTA Index
Moratorium
Mortality And Expense Risk Charge
Mortgage
Mortgage Banker
Mortgage Bankers Association - MBA
Mortgage Broker
Mortgage Constant
Mortgage Forbearance Agreement
Mortgage Index
Mortgage Life Insurance
Mortgage Originator
Mortgage Rate Lock
Mortgage Rate Lock Float Down
Mortgage Recast
Mortgagee
Mortgagor
Moving Expenses
Naked Call
Named Perils Insurance Policy
National Association of Insurance Commissioners - NAIC
National Association of Investors Corporation - NAIC
National Association Of Mortgage Brokers - NAMB
Needs Approach
Negative Amortization
Negative Amortization Limit
Negative Equity
Negative Points
Negatively Amortizing Loan
Nest Egg
Niche Banks
Nigerian Scam
No Cash-Out Refinance
No Documentation Mortgage - No Doc
No Income / No Asset Mortgage - NINA
No-Cost Mortgage
No-Fee Mortgage
No-Ratio Mortgage
Non-Amortizing Loan
Non-Contestability Clause
Non-Qualifying Investment
Nondischargeable Debt
Notice Of Assessment - NOA
Nuncupative Will
Offering
Offline Debit Card
Old Age, Survivors and Disability Insurance Program - OASDI
One-Year Constant Maturity Treasury - 1-Year CMT
Open-End Credit
Open-End Lease
Option Adjustable-Rate Mortgage - Option ARM
Ordinary Annuity
Ordinary Income
Ordinary Shares
Origination
Origination Points
Overcontribution
Overlay
Paraplanning
Partial Release
Pass-Through Rate
Passive Activity
Passive Loss
Pay Yourself First
Payable On Death - POD
Paydown
Payment Option ARM
Payment Option ARM Minimum Payment
Payment Shock
Payout Phase
Payroll Tax
Pension Fund
Pension Plan
Pension Shortfall
Periodic Interest Rate
Personal Equity Plan - PEP
Personal Finance
Personal Income
Personal Property
Personal Use Property
Philanthropy
Phishing
Pick-Up Tax
Piggyback Mortgage
Pledged Asset
Pool Factor
Pooled Income Fund
Pop-Up Option
Postnuptial Agreement
Pour-Over Will
Power Of Attorney
Pre-Approval
Pre-Existing Condition
Pre-Qualification
Predatory Lending
Prenuptial Agreement
Prepayment Penalty
Primary Mortgage Market
Prime
Prime Bank
Prime Conforming
Prime Rate
Principal
Principal Residence
Private Annuity
Private Banking
Private Investment Fund
Private Mortgage Insurance - PMI
Probate
Progressive Tax
Property
Property Tax
Proportional Tax
Prudent-Person Rule
Purchase Mortgage Market
Purchase-Money Mortgage
Qualified Disclaimer
Qualified Dividend
Qualified Terminable Interest Property (QTIP) Trust
Qualifying Investment
Qualifying Ratios
Quick Assets
Rabbi Trust
Rain Check
Rate And Term Refinance
Rate-Improvement Mortgage
Real Asset
Realized Gain
Realized Loss
Rebalancing
Recast Trigger
Receiver
Recurring Debt
Red Flag
Redlining
Refinance
Refinance Wave
Refinancing Risk
Registered Education Savings Plan - RESP
Registered Pension Plan - RPP
Registered Retirement Income Fund - RRIF
Registered Retirement Savings Plan - RRSP
Registered Retirement Savings Plan Contribution - RRSP Contribution
Registered Retirement Savings Plan Deduction - RRSP Deduction
Registered Retirement Savings Plan Deduction Limit - RRSP Deduction Limit
Relocation Mortgage - Relo
Rent To Own
Repayment
Required Minimum Distribution - RMD
Residual Income
Retail Lender
Retail Note
Revocable Beneficiary
Revocable Trust
RHS Loan
Rider
Right of Rescission
Risk Discount
Risk Tolerance
Risk-Based Mortgage Pricing
Roll In
Roth 401(k)
Roth IRA
Routing Transit Number - RTN
Rule Of 72
Rule Of 78
Running Yield
S&P 500 Mini
Safekeeping
Salary Reduction Contribution
Same Property Rule
Savings
Savings Account
Schedule A
Schedule D
Scheduled Recast
Second Chance Loan
Second Mortgage
Second-To-Die Insurance
Section 1035 Exchange
Secure Option ARM
Self-Amortizing Loan
Self-Employment Tax
Series HH Bond
Serious Delinquency
Severance Pay
Short Hedge
Short Refinance
Simple Interest Bi-Weekly Mortgage
Simple-Interest Mortgage
Single
Skimming
Skip-Payment Mortgage
Snowball
Social Security
Social Security Number - SSN
Special Finance
Specific-Shares Method
Spending Phase
Spoofing
Stated Income / Stated Asset Mortgage - SISA
Stock Savings Plan
Stock Screener
Store Of Value
Straight Life Annuity
Strategic Asset Allocation
Stripper
Student Loan Interest Deduction
Subindex
Subprime
Subprime Lender
Subprime Loan
Subprime Mortgage
Substandard Health Annuity
Subvented Lease
Superannuation
Surcharge
Surrender Charge
Surrender Fee
Surtax
Sweep Account
Systematic Withdrawal Schedule
Tactical Asset Allocation - TAA
Tax Avoidance
Tax Fairness
Tax Liability
Tax Return
Tax-Exempt Security
Tax-Sheltered Annuity
Taxable Estate
Taxes
Tear Sheets
Teaser Rate
Temporary Lender
Tenancy In Common
Term Certain Annuity
Testamentary Trust
Three-Year Rule
Thrift Savings Plan - TSP
Title Insurance
Total Debt Service Ratio - TDS
Total Housing Expense
Trading Account
Traditional Whole Life Policy
Transfer
Transfer Of Risk
Transfer On Death - TOD
Traveler's Check
Trust
Two-Step Mortgage
Unified Managed Account - UMA
Uniform Premarital Agreement Act
Universal Life Insurance
Unpaid Dividend
Unscheduled Recast
Unsecured
VA Loan
Value Averaging
Variable Death Benefit
Vendor Take-Back Mortgage
Viatical Settlement
Warranty
Wealth Management
White Collar
Will
Will Variation
With Approved Credit - WAC
Withdrawal Plan
Withholding
Withholding Allowance
Withholding Tax
Workout Assumption
Writ
Yield Spread Premium
Zone Of Possible Agreement"