For instance, a life insurance contract can be structured in such a way to ensure that the remaining business owners have the funds to buy the company interest of a deceased
owner at a predetermined price.
Not exact matches
The various classes of equity are modeled as call options that give their
owners the right, but not the obligation, to buy the underlying equity value
at a
predetermined (or exercise)
price.
Options buyer: The buyer (
owner or holder) of the contract pays a premium and holds the right to either buy or sell the underlying stock
at a
predetermined price, and within a
predetermined time frame.
A put contract gives its
owner the right to sell 100 shares of an underlying stock
at a
predetermined price (the strike) prior to the expiration date of the contract.
A call contract gives its
owner the right to purchase 100 shares of an underlying stock
at a
predetermined price (the strike) prior to the expiration date of the contract.
Strike
price (exercise
price): The
predetermined price at which the
owner of an option can purchase (call) or sell (put) the underlying stock.
The
owner of the security insures himself against any heavy downtrends in the market by fixing his sale
price at a
predetermined position.
Buy - sell agreements legally bind business partners or
owners into agreeing to purchase each others» shares of the company
at a
predetermined price in the event of death, disability, or other
predetermined qualifying events such as
at a
predetermined retirement age.