What Is a Revolving Underwriting Facility (RUF)? A revolving underwriting facility (RUF) is a form of revolving credit in which a group of underwriters agrees to provide loans if a borrower is unable to sell in the eurocurrency market. The eurocurrency market is a marketplace where lending currencies are held as deposits at banks outside of
What Is Rule 10b – 18? Rule 10B-18 is a Securities and Exchange Commission (SEC) rule that is intended to reduce liability for companies (and their affiliated purchasers) when the company repurchases shares of the company’s common stock. Rule 10B-18 is considered a safe harbor provision. A safe harbor is a legal provision to reduce or
What Is Rule 10b-5? Rule 10b-5 is a regulation created under the Securities and Exchange Act of 1934 that targets securities fraud. This rule makes it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the
What Was Rule 10b-6? Rule 10b-6 was an anti-manipulation rule set forth by the Securities and Exchange Commission (SEC) that prohibited the purchase of stock by an issuer when the stock had not completed distribution. Rule 10b-6 was designed to prevent issuers from tampering with the market by bidding for shares before they were publicly
What Is the Rule of 72? The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return. Alternatively, it can compute the annual rate of compounded return from an investment given how many years
What Is the Rule of 78? The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in
What is a Rule Of Thumb? A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of
What are the Rules of Fair Practice The Rules of Fair Practice is a code of conduct for U.S. broker-dealers that requires loyalty to and fair dealing with customers. Developed by the National Association of Securities Dealers and now administered by the Financial Industry Regulatory Authority (FINRA), the Rules of Fair Practice provide detailed guidelines
What Is Runoff Insurance? Runoff insurance is an insurance policy provision that covers claims made against companies that have been acquired, merged, or have ceased operations. Runoff insurance, also known as closeout insurance, is purchased by the company being acquired and indemnifies—exempts from liability—the acquiring company from lawsuits against the directors and officers of the acquired
What Is a Run on the Fund? A run on the fund is a situation in which a hedge fund, or other asset pool, faces a growing number of requests for redemptions from investors. A run on the fund may happen for several reasons, but is usually the result of poor performance of underlying assets. This
