Bear CD


 

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Bear CD

A bear CD pays the holder a fraction of any fall in a given market index.



Bear CD

Similar Matches

Bear trap

Bear trap

In charting, a short-lived reversal of an upward trend, catching out bears and shorters who were hoping to profit from a fall in the share price.


Nonbearing Wall

Nonbearing Wall

A wall used only to separate areas, and which carries only its own weight


Permanent interest bearing shares

Permanent interest bearing shares

Pibs are shares issued by building societies which pay a fixed rate of interest rather than a dividend. For the building societies concerned, they are a way of raising money without demutualising. As an investor, the rate of interest you receive will be the rate in effect at the time you bought your shares. Even though the rate on the PIB may change, your income will always be the same - the rate at the time you bought. It is important to note that the % rate applies to the original issue price of the PIB, not to the current share price. So if the interest rate is 10% when you buy and the original issue price is 100p, the annual interest will be 10p even if the current share price is 150p. Although Pibs are 'safe' in the sense that there is a quantifiable, regular and certain income, there is a risk of capital erosion if the share price falls below what you paid. On the plus side, if you sell your Pibs and make a capital gain, there is no CGT to pay. One of the disadvantages of Pibs is that minimum investment levels can be quite high (£20,000+) and liquidity is quite low. There aren't many building societies left to issue new Pibs, and trading in existing Pibs is quite low.


BEARS

BEARS

See: Bonds Enabling Annual Retirement Savings (BEARS)


Bear put spread

Bear put spread

The purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received.


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