At-the-Money

At-the-Money

The term relates to trading in listed OPTIONS. An option is said to be trading "at-the-money" when the STRIKING PRICE and the market price of the underlying share are equal.

Put Warrant

Put Warrant

A security which grants the holder the right to sell the underlying security at a specified price. This is somewhat uncommon, since warrants usually grant the holder the right to buy a security at a particular price.

Canary Call

Canary Call

A step-up bond that cannot be called after completing its first-step period. The issuer of the bond reserves the option to call back the bond until the first step is reached. A canary call may only be exercised on predetermined dates. The canary call is similar to a Bermuda option, as it must be called on specific dates. If the issuer of the bond chooses not to call before the canary call expires, the bond will remain a standard step-up bond, where the coupon rate will increase with each step-up period.

Unissued Stock

Unissued Stock

Stock that a publicly-traded company's charter permits the company to issue, but which the board of directors has not elected to issue. A company may keep unissued stock from public trade to reduce its earnings per share, which can increase the share price. Having unissued stock also gives the company flexibility to issue more shares if it so chooses.