Means that a loan is periodically repriced at an agreed spread
over the appropriate, currently prevailing rate. Most term loans
in the Euromarket are made on a rollover basis as to current LIBOR rate
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The reinvestment of money received from a maturing security in another similar security. Rollover usually applies to short-term investments such as certificates of deposit, commercial paper, and Treasury bills. For example, investors often want a rollover of the proceeds from a maturing certificate of deposit into a new certificate of deposit. See also IRA rollover
, pension rollover
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
If you move your assets from one investment to another, it's called a rollover.
For example, if you move money from one IRA to another IRA, that transaction is a rollover. In the same vein, if you move money from a qualified retirement plan, such as a 401(k), into an IRA, you create a rollover IRA.
Similarly, when a bond or certificate of deposit (CD) matures, you can roll over the assets into another bond or time deposit.
The tax-free transfer of an employer plan distribution to another employer plan or to a traditional IRA, or the tax-free transfer from one IRA to another or to an eligible employer plan.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary