BASIS POINTS Definition

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BASIS POINTS is 0.01% in yield. For example, in increasing from 5.00% to 5.05%, the yield increases by five basis points.

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MARGIN LENDING, in securities, is where the lender, usually a bank, will lend you between approximately 40% and 70% of the value of approved shares and managed funds. For example, if you have $30,000 in cash, you could borrow up to $70,000 and buy a $100,000 portfolio (assuming a lending ratio of 70%). This portfolio then becomes the security for your margin lending facility.

GREENMAIL, in the U.S., payment by a takeover target to a potential bidder, usually to buy back acquired shares at a premium - in return for the predator not pursuing the bid.

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