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  2. Employee stock option - Wikipedia

    en.wikipedia.org/wiki/Employee_stock_option

    Many companies use employee stock options plans to retain, reward, and attract employees, [3] the objective being to give employees an incentive to behave in ways that will boost the company's stock price. The employee could exercise the option, pay the exercise price and would be issued with ordinary shares in the company.

  3. Beta (finance) - Wikipedia

    en.wikipedia.org/wiki/Beta_(finance)

    The beta is estimated with the weighted least squares (WLS) estimation on slope-winsorized daily stock returns and the market returns. It outperforms OLS beta, Blume beta, Vasicek beta, and Dimson betas in forecasting the future realizations of market betas and hedging. These estimators attempt to uncover the instant prevailing market-beta.

  4. Superhedging price - Wikipedia

    en.wikipedia.org/wiki/Superhedging_price

    The superhedging price is a coherent risk measure.The superhedging price of a portfolio (A) is equivalent to the smallest amount necessary to be paid for an admissible portfolio (B) at the current time so that at some specified future time the value of B is at least as great as A.

  5. Real options valuation - Wikipedia

    en.wikipedia.org/wiki/Real_options_valuation

    Real options valuation, also often termed real options analysis, [1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions. [2] A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. [3]

  6. Collar (finance) - Wikipedia

    en.wikipedia.org/wiki/Collar_(finance)

    In finance, a collar is an option strategy that limits the range of possible positive or negative returns on an underlying to a specific range. A collar strategy is used as one of the ways to hedge against possible losses and it represents long put options financed with short call options. [1]

  7. CFOs plan to boost FX hedging ahead of U.S. election ... - AOL

    www.aol.com/finance/cfos-plan-boost-fx-hedging...

    Eighty-six percent of the survey respondents plan to increase their currency hedging activity ahead of the election, despite 73% saying hedging costs have risen, while 66% intend to increase the ...

  8. Hedge relationship - Wikipedia

    en.wikipedia.org/wiki/Hedge_relationship

    More specifically, "Hedge relationship" describes the criteria for including the fair value of derivatives on balance sheet as part of an effort to regulate and normalize the use of hedging in corporate accounting.

  9. Post-modern portfolio theory - Wikipedia

    en.wikipedia.org/wiki/Post-modern_portfolio_theory

    Simply stated, post-modern portfolio theory (PMPT) is an extension of the traditional modern portfolio theory (MPT) of Markowitz and Sharpe. Both theories provide analytical methods for rational investors to use diversification to optimize their investment portfolios.

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