Cushion Theory

Business / Finance / Cushion Theory: High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable noncallable bond would sell. Cushion bonds offer considerable downside protection in a falling market.

Other Words for Cushion

Cushion Verb Synonyms: pillow, bolster, pad
Cushion Noun Synonyms: soften, absorb, mitigate, reduce, buffer, insulate, mollify, lessen
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Presidential Election Cycle Theory

Business / Finance / Presidential Election Cycle Theory: A theory that stock market trends can be predicted and explained by the four-year presidential election cycle. MORE

Preferred Habitat Theory

Business / Finance / Preferred Habitat Theory: A biased expectations theory that believes the term structure reflects the expectation of the future path of interest rates as well as risk premium. The theory rejects the assertion that the risk prem MORE

Pincushion Distortion

Entertainment / Photography / Pincushion Distortion: Lens aberration causing parallel, straight lines at the edge of the image to curve toward the lens axis. MORE

Proof Theory

Technology / Computers / Proof Theory: This deals with the actual 'logic' of the programming. Using mathematical analysis techniques, the programming language is proof checked. MORE

Pure Expectations Theory

Business / Finance / Pure Expectations Theory: A theory that asserts that forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the market's expectations of future short-term rates. For e MORE

Redemption Cushion

Business / Finance / Redemption Cushion: The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price). MORE

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