What Is a Counterbid? A counterbid is a response to an offer or bid that is more favorable for one party than a previously submitted bid. A bid is an offer from a purchaser to buy an asset from a seller. During the negotiation process, it is not uncommon for each side to issue multiple
What Does Countermand Mean? Countermand means to cancel, revoke, or reverse an order that has been previously issued. In this way it is used as a verb. As a noun, it refers to the order given that is contrary to the previous order. In the financial world, countermand is usually applicable to payments; it means
What Is a Countermove? A countermove is a movement of a security’s price that opposes the trend in price. A countermove happens right after the original trend, but in a smaller amount than the original trend. Investors and traders watch for countermoves to be able to enter the market in a favorable position. A countermove is also
What Is a Counteroffer? A counteroffer is a response given to an initial offer. A counteroffer means the original offer was rejected and replaced with another one. The counteroffer gives the original offeror three options: accept the counteroffer, reject it, or make another offer. Counteroffers are prevalent in many types of business negotiations, transactions, contracts, and
What Is a Counterparty? A counterparty is the other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller who is willing to sell and vice versa. For example, the
What Is a Counterpurchase? A counterpurchase is a particular type of countertrade transaction in which two parties agree to both buy goods from and sell goods to each other but under separate sales contracts. How a Counterpurchase Agreement Works One form of counterpurchase is an international trading deal wherein an exporter agrees to purchase a
What Is Country Club Billing? Country club billing was a former billing system used by credit card companies until the 1970s that involved including copies of original sales drafts to cardholders in their monthly statements. This was done to provide proof of each purchase that was recorded on the card. Rising paper, mailing, and labor costs put an end
What Is a Country Fund? A country fund is a mutual fund that invests only in the securities of companies in one country. Though able to invest in a variety of sectors, country funds are considered to be greatly exposed to political risk without being able to diversify that risk away. Key Takeaways A country
What Is Country Risk Premium (CRP)? Country Risk Premium (CRP) is the additional return or premium demanded by investors to compensate them for the higher risk associated with investing in a foreign country, compared with investing in the domestic market. Overseas investment opportunities are accompanied by higher risk because of the plethora of geopolitical and
What Is a Coupon? A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a year divided by the
