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Bid to cover ratio |
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Bid to cover ratioThe ratio of the number of bids received in a bids bids auction compared to the number of accepted bids.Bid to cover ratio Similar MatchesForward coverForward coverThe purchase in the cash market of the difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed to sell 100,000 bushels of corn in September in a forward contract, but you only have 60,000, you need to purchase 40,000 to cover your obligation. Dividend coverDividend coverThe ratio between a company's earnings (net profit after tax) and the net dividend paid to shareholders, calculated as earnings per share divided by the dividend per share.So if a company has earnings per share of 8p and it pays out a dividend of 2.1p, the dividend cover is 8 / 2.1 = 3.80Generally speaking, a ratio of 2 or higher is considered safe (in the sense that the company can well afford the dividend), but anything below 1.5 is risky. If the ratio is under 1, the company is using its retained earnings from a previous year to pay this year's dividend. Initiate coverageInitiate coverage(1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). Covered Interest Rate ParityCovered Interest Rate ParityThe principle that the yields from interest-bearing foreign and domestic investments should be equal when the forward currency market is used to predetermine the domestic currency payoff from a foreign investment. CoveringCoveringUsing forward currency contracts to predetermine the domestic currency amount of an expected future foreign receipt or payment. Further SuggestionsCost Recovery PeriodCovered Straddle Debt service coverage ratio Uncovered interest parity extended coverage Cash flow coverage ratio Covered or hedge option strategies Debt service coverage European Recovery Program interest cover covered combination Covered Straddle Write short covering Uncovered Put writing Price discovery process Uncovered call writing Accelerated cost recovery system (ACRS) Adequacy of coverage Covered covered straddle Recovery Preferred dividend coverage Guaranteed replacement cost coverage insurance Covered option cover |
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