Collar

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Related to Cervical collar: Cervical Spondylosis, cervical traction

Collar

Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with options, swaps, or by other agreements. In corporate finance, the collar strategy of buying puts and selling calls is often used to mitigate the risk of a concentrated position in (sometimes) restricted stock. When the restricted owner can't sell the stock, but needs to diversify the risk, a collar transaction is one of the few tools available. Many corporate executives who receive chunks of their compensation in restricted stock need to employ this strategy to mitigate the diversification risk in their overall portfolio.

Collar

1. A way to hedge against the potential of loss by buying an out-of-the-money put while writing an out-of-the-money call. A collar is most beneficial when an investor holds a stock that has recently experienced significant gains. If the stock falls, the investor can exercise the put, ensuring a profit. If it continues to rise, the call places a cap on the profit.

2. On an exchange, a measure designed to prevent panic selling by stopping trading after a security or an index has fallen by a certain amount. For example, if the Dow Jones Industrial Average falls 10% in a trading day, the New York Stock Exchange suspends trade for at least one hour. A collar is intended to allow investors to determine whether a situation is really as bad as it looks. It is sometimes called a circuit breaker. See also: Suspended trading.

collar

1. In options, buying a put and selling short a call so as to limit the potential profit and loss from an investment position.
2. The level at which an index triggers a circuit breaker to temporarily stop trading.
3. In an acquisition, an upper and lower limit that will be paid for shares of the company to be acquired.
4. In a new issue, a limit on the price or interest rate that is acceptable. See also zero-cost collar.
Case Study In December 2000 PepsiCo, Inc., announced it would acquire Quaker Oats Co. for $13.4 billion in PepsiCo stock. The elusive deal was sealed after Quaker spurned an earlier PepsiCo offer and a more recent offer from Coca-Cola had been withdrawn. Both soft drink giants were after Quaker's noncarbonated beverages, including Gatorade. The deal specified that PepsiCo would offer 2.3 shares of its stock for each share of Quaker. At a then-current PepsiCo stock price of $42.38, the Quaker shares were each valued at $97.46. The agreement also provided a minimum and maximum value, or collar, for the Quaker stock. PepsiCo guaranteed a minimum price of $92 per Quaker share in the event PepsiCo stock fell below $40 for ten random days during the month prior to closing. Likewise, PepsiCo would be required to pay no more than $105 per Quaker share in the event PepsiCo stock increased to more than $45.65. The collar of $92 to $105 provided a maximum and minimum value that Quaker stockholders would receive for each of their shares. The earlier PepsiCo offer specified the same 2.3-to-1 exchange rate but had been rejected by Quaker because PepsiCo was unwilling to include a collar as part of the offer. In other words, PepsiCo refused to guarantee a minimum price for the Quaker stock it wanted to acquire.
References in periodicals archive ?
The study did not test more than one brand of cervical collar, however, and did not consider that driver performance may improve with continued use of a collar.
The combination of mobilization and manipulation and physical modalities when compared with placebo, education, cervical collars, exercise, ultraviolet radiation, direct galvanic current, ultrasound, and massage was not found to produce any difference in terms of pain reduction, improvement in function, or global perceived effect in patients with acute, subacute, or chronic neck pain (57).
1) stands for the neck or cervical collars (2 Unit)
Medical Equipment Solutions have been authorized to supply the following items to governmental agencies: IV Pumps; Oxygen Concentrators; Hospital Beds and Mattresses; flotation pads/mattresses; erection pump devices; Patient Lifts; Examination Tables; bandages; wound drainage; disposable or reusable hospital clothing, incontinent products; diapers; pads; protective linens; specimen cups and containers; urinary drainage bags, kits and sets; urinary catheters; otoscopes; stethoscopes; thermometers; hand held dopplers; pulse oximeters; orthotics; splints; braces; immobilizers/soft goods; supports; and cervical collars.
They would all have to have cervical collars, backboards and be transported in a litter.
The reporting system identified that pressure ulcers were happening under devices such as cervical collars and oxygen tubing and masks.
2) Collars remove or cervical collars, emergency medical services (50 Unit)
TECNOL Orthopedic offers one of the nation's most complete lines of orthopedic soft goods, including cervical collars, shoulder immobilizers, arm slings, wrist supports, knee immobilizers, ankle supports, post-operative shoes, and cast boots for patients who must wear walking casts.
A direct cash donation of $25,000 and a contribution of $390,000 in orthopedic devices, including neck and back braces, limb immobilizers, fracture boots, wrist splints, and cervical collars were donated in late-January to two non-profit organizations currently operating in Haiti, Physicians for Peace and Project HOPE (Health Opportunities for People Everywhere).
Among the products envisaged by the contract are preformed, custom-formed and upgrade orthotic components for medical and military uses, and foam/fabric composite packages for original equipment manufacturer use within individually custom-fitted orthotic and prosthetic products, including spinal jackets, specialty braces, and cervical collars.
This Fort Worth based division offers one of the nation's most complete lines of orthopedic soft goods, including cervical collars, shoulder immobilizers, arm slings, wrist supports, knee immobilizers, ankle supports, post-operative shoes, and cast boots for patients who must wear walking casts.