Chapter 1: Frequently Asked Questions (FAQs)
What is a Terp? Whenever we've been asked this question at our seminars, the BasketCases always seem to have at least one student --- usually sitting right up front wearing a Duke School of Business tee shirt --- who waves his hand and shouts out (before being recognized) that TERP stands for "Theoretical Ex-Rights Price which is the market price to which the ordinary shares of stock should gravitate following the completion of a rights issue." And then we tell him, that "no, that is not correct" and he argues with us and then we throw him out of the class. (That's the part we love the most . . . throwing Dukies out of the room never gets old.)
OK, back to the question . . . a Terp? The answer is very simple; Terp is shorthand for "terrapin," which is either a turtle (more on that later) or a person with a positive association to the the University of Maryland, an institution of higher
[Any questions? Yes? (You in the Tarheels ball-cap) "What's a turtle?" Is that your question? Yes . . . OK. Then the BasketCases would like to ask you whether you've heard the saying "No Child Left Behind?" You have? Alright . . . well, don't believe it . . . because you were.]
Perhaps that's enough for our first lesson. Check back with us, because the BasketCases will pick up again soon with answers to more FAQs and other important discussions of Terp-ology, including a look at the members of the National Championship Team (for those of you who weren't paying attention last April.) And, yes, there will be a quiz.