Bid Rigging: Insurance
company brokers decided in advance which insurer would get a client's business
and at what price, and then called underwriters at other insurers for "B"
quotes -- higher rates for insurance coverage that couldn't win in a phony "competitive
bidding process". This would ensure that the incumbent insurance carrier's
would retain that client's business but would give the appearance of a real competitive
bidding process. B-quote insurers knew their turn would come another time.
placement service agreements: Also
known as "contingent commissions" or "market service agreements".
fees, which are over and above ordinary commissions, have been paid by insurance
companies to brokers, mainly for steering profitable clients the insurer's way.
Off-shoring / Outsourcing:
politically correct term when a firm decides to lay-off current employees located
in the United States and hire employees or consultants in locations outside of
the United States to take advantage of lower employee wages / cost.
and Dump: Also known as "buy-write-sell"
or "scalping". Buying shares of small, thinly-traded companies, writing
highly favorable profiles recommending the companies or touting them, and then
selling the shares when the stock price had been driven up by the promotion.
term often used by human resources or public relations personnel when speaking
publicly about lay-offs at the firm they represent. By reducing the number of
employable positions, the firm is claiming that the number of persons employed
are the "right size" for the firm's existing financial structure.
Sales: term used when trading securities. An investor will borrow shares of
stock at a set price and is liable for re-paying those shares borrowed. Essentially,
the investor is speculating that the price of the stock will go down in price.
If the price does go down in price, the investor can buy the stock at the lower
price and re-pay the borrowed shares. The profit to the investor is the difference
between the market value of borrowed shares and the market value of the stock
purchased to repay those borrowed shares, less commissions.
Sales: illegal practice of taking a short position on a security without actually
borrowing shares of that stock. In the most extreme scenario, the marketplace
could end up with more short positions on a stock than the actual number of shares
that stock has outstanding.