Gaurav Newalkar New Edited by GG

8/2/2019 Gaurav Newalkar New Edited by GG

1/36

Financial Management

Assignment Of Financial Terms

Submitted To : Submitted By:

Dr. Tarika Singh Gaurav Newalkar

MBA (II)nd Sem


2/36

Meaning of Financial Management

Financial Management means planning, organizing, directing and

controlling the financial activities such as procurement and utilization of

funds of the enterprise. It means applying general management

principles to financial resources of the enterprise.

A

Accounting liquidity:

The ease and quickness with which assets can be converted to cash.

Accounts payable:

Money owed to suppliers.

Accounts receivable:

Money owed by customers.

Accounts receivable turnover:

The ratio of net credit sales to average accounts receivable, a measure of how quickly customers

pay their bills.

Accretion (of a discount):

In portfolio accounting, a straight-line accumulation of capital gains on discount bond in

anticipation of receipt of par at maturity.


3/36

Accrual bond:

A bond on which interest accrues, but is not paid to the investor during the time of accrual. The

amount of accrued interest is added to the remaining principal of the bond and is paid at

maturity.

Accrued interest:

The accumulated coupon interest earned but not yet paid to the seller of a bond by the buyer

(unless the bond is in default).

Accumulated Benefit Obligation (ABO) :

An approximate measure of the liability of a plan in the event of a termination at the date the

calculation is performed. Related: projected benefit obligation.

Acid-test ratio :

Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid

items to current liabilities.

Acquiree :

A firm that is being acquired.

B

BEARS

Bonds Enabling Annual Retirement Savings (BEARS)

BIC

Bank Investment Contract
http://biz.yahoo.com/f/g/bb.html#b9http://biz.yahoo.com/f/g/bb.html#ohttp://biz.yahoo.com/f/g/bb.html#ohttp://biz.yahoo.com/f/g/bb.html#b9


4/36

BIF

Bank Insurance Fund

BIS

Bank for International Settlements

Baby bond

A bond with a par value of less than $1000.

Back away

In the context of general equities, to withdraw from a previously declared interest, indication, or

transaction; broker-dealer's failure, as a market maker in a given security, to make good on

a bid/offer for the minimum quantity.

Board of Directors

Individuals elected by the shareholders of a corporation who carry out certain tasks established in

the charter.

Board of Governors of the Federal Reserve System

The managing body of the Federal Reserve System, set which policies on bank practices and

the money supply.

Board room

A room at a brokerage firm where its clients can watch an electronic board displaying stock prices

and transactions. Also refers to the room where Board of Directors meetings take place.
http://biz.yahoo.com/f/g/bb.html#ohttp://biz.yahoo.com/f/g/bb.html#ohttp://biz.yahoo.com/f/g/bb.html#ohttp://biz.yahoo.com/f/g/bb.html#mhttp://biz.yahoo.com/f/g/bb.html#nhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/pp.html#ghttp://biz.yahoo.com/f/g/bb.html#ckhttp://biz.yahoo.com/f/g/dd.html#fhttp://biz.yahoo.com/f/g/mm.html#shttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/cc.html#bzhttp://biz.yahoo.com/f/g/ff.html#1http://biz.yahoo.com/f/g/mm.html#b7http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#clhttp://biz.yahoo.com/f/g/bb.html#bwhttp://biz.yahoo.com/f/g/bb.html#bwhttp://biz.yahoo.com/f/g/tt.html#clhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/mm.html#b7http://biz.yahoo.com/f/g/ff.html#1http://biz.yahoo.com/f/g/cc.html#bzhttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/mm.html#shttp://biz.yahoo.com/f/g/dd.html#fhttp://biz.yahoo.com/f/g/bb.html#ckhttp://biz.yahoo.com/f/g/pp.html#ghttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/bb.html#nhttp://biz.yahoo.com/f/g/bb.html#m


5/36

CCapital

Money invested in a firm.

Capital account

Net result of public and private international investment and lending activities.

Capital asset

A long-term asset, such as land or a building, not purchased or sold in the normal course of

business.

Capital requirements

Financing required for the operation of a business, composed of long-term and

working capital plus fixed assets.

Capital shares

One of two types ofshares in a dual-purpose investment company, which entitle the holder to

the appreciation or depreciation in the value of a portfolio, as well as the gains from trading in

the portfolio. Antithesis of income shares.

Capital stock

Stock authorized by a firm's charter and having par value, stated value, or no par value. The

number and the value of issued shares are usually shown, together with the number of shares

authorized, in the capital accounts section of the balance sheet. See: Common stock.

Capital structure

The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the
http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/ff.html#bwhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/aa.html#cehttp://biz.yahoo.com/f/g/dd.html#bkhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/bb.html#hhttp://biz.yahoo.com/f/g/bb.html#hhttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/dd.html#bkhttp://biz.yahoo.com/f/g/aa.html#cehttp://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ff.html#bwhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/aa.html#cq


6/36

ratio ofdebt to equity and the mixture ofshort and long maturities.

Capital surplus

Amounts of directly contributed equity capital in excess of the par value.

Capital turnover

Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates

how much a company could grow its current capital investment level.

Low capital turnover generally corresponds to highprofit margins.

Capitalization

The debt and/or equity mix that funds a firm's assets.

D

Death play

A stock strategy that buys stockon the belief that a key executive will die, the company will be

dissolved, and shares will command a higher price at their private market value.

Death Valley Curve

In venture capital, refers to the period before a new company starts generating revenues, when it

is difficult for the company to raise money.

Debenture

Any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A

debenture is documented in an indenture.

Debenture bond
http://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ss.html#bwhttp://biz.yahoo.com/f/g/ll.html#bxhttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/pp.html#ghttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/nn.html#1http://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/pp.html#dghttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/pp.html#c9http://biz.yahoo.com/f/g/vv.html#jhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ii.html#thttp://biz.yahoo.com/f/g/ii.html#thttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/vv.html#jhttp://biz.yahoo.com/f/g/pp.html#c9http://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/pp.html#dghttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/nn.html#1http://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/pp.html#ghttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/ll.html#bxhttp://biz.yahoo.com/f/g/ll.html#bxhttp://biz.yahoo.com/f/g/ss.html#bwhttp://biz.yahoo.com/f/g/dd.html#j


7/36

An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not

pledged specifically to secure other debt. Compare subordinated debenture bond and collateral

trust bonds.

Debenture stock

A type of stock that makes fixed payments at scheduled intervals of time. Debenture stock differs

from a debenture in that it has the status ofequity, not debt, in liquidation.

Debit balance

The amount that is owed to a broker by a margin customer for loans the customer uses to

buy securities.

Debit spread

Applies to derivative products. Difference in the value of two options, when the value of the

option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit

spread.

Debt

Money borrowed.

Debt bomb

A default on debt and obligations by a major financial institution that disrupts the stability of the

economic system.

Debt capacity

Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer

increases.
http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/cc.html#e8http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ii.html#dbhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ss.html#ebhttp://biz.yahoo.com/f/g/cc.html#cshttp://biz.yahoo.com/f/g/cc.html#cshttp://biz.yahoo.com/f/g/dd.html#ghttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ll.html#bfhttp://biz.yahoo.com/f/g/bb.html#ckhttp://biz.yahoo.com/f/g/mm.html#ihttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/dd.html#vhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/dd.html#vhttp://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/mm.html#ihttp://biz.yahoo.com/f/g/bb.html#ckhttp://biz.yahoo.com/f/g/ll.html#bfhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ee.html#4http://biz.yahoo.com/f/g/dd.html#ghttp://biz.yahoo.com/f/g/cc.html#cshttp://biz.yahoo.com/f/g/cc.html#cshttp://biz.yahoo.com/f/g/ss.html#ebhttp://biz.yahoo.com/f/g/dd.html#jhttp://biz.yahoo.com/f/g/ii.html#dbhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/cc.html#e8http://biz.yahoo.com/f/g/bb.html#bond


8/36

E

Economic order quantity (EOQ)

The order quantity that mi

Earning power

Earnings before interest and taxes (EBIT) divided by total assets.

Earnings

Net income for the company during the period.

Earnings before interest and taxes (EBIT)

A financial measure defined as revenues less cost of goods sold and selling, general, andadministrative expenses. In other words, operating and non-operating profit before the deductionof interest and income taxes.

Earnings per share (EPS)

EPS, as it is called, is a company's profit divided by its number of outstanding shares. If acompany earned $2 million in one year had 2 million shares of stock outstanding, its EPS wouldbe $1 per share. The company often uses a weighted average of shares outstanding over thereporting term.

Ethics

Standards of conduct or moral judgement

Exchange of assets

Acquisition of another company by purchase of its assets in exchange for cash or stock.

Exchange of stock

Acquisition of another company by purchase of its stock in exchange for cash or shares.

Exchange offer

An offer by the firm to give one security, such as a bond or preferred stock, in exchange foranother security, such as shares of common stock.


9/36

F

Fair price

The equilibrium price for futures contracts. Also called the theoretical futures price, which equals

the spot price continuously compounded at the cost of carry rate for some time interval.

Fair rate of return

The rate of return that state governments allow a public utility to earn on its investments and

expenditures. Utilities then use these profits to pay investors and provide service upgrades to their

customers.

Fair value

In the context of futures, the equilibrium price for futures contracts. Also called the theoretical

futures price, which equals the spot price continuously compounded at the cost of carry rate for

some time interval. More generally, fair value for any asset simply refers to the perception that it

is neither underpriced (too cheap) nor overpriced (too expensive).

Fairness opinion

An investment banker's professional opinion as to the price an acquiring firm is offering in

a takeover or merger.

Fall Down

In the context of general equities, may not be able to produce as indicated in one's

advertised market, due to less help (than anticipated) from other parties or due to changing

market conditions.

Fall out of bed

A sudden drop in a stock's price resulting from failed or poor business deals gone bad or falling

through.
http://biz.yahoo.com/f/g/ff.html#dmhttp://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/cc.html#ekhttp://biz.yahoo.com/f/g/rr.html#hhttp://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ff.html#dmhttp://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/cc.html#ekhttp://biz.yahoo.com/f/g/ii.html#crhttp://biz.yahoo.com/f/g/aa.html#zhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/tt.html#fhttp://biz.yahoo.com/f/g/mm.html#bohttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/mm.html#bohttp://biz.yahoo.com/f/g/tt.html#fhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/aa.html#zhttp://biz.yahoo.com/f/g/ii.html#crhttp://biz.yahoo.com/f/g/cc.html#ekhttp://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/ff.html#dmhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/rr.html#hhttp://biz.yahoo.com/f/g/cc.html#ekhttp://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/ss.html#c0http://biz.yahoo.com/f/g/tt.html#bihttp://biz.yahoo.com/f/g/ff.html#dm


10/36

Fallen angels

Bonds that at the time of issue were considered investment grade but that have dropped below

that rating over time.

Fallout risk

A type ofmortgage pipeline risk that is generally created when the terms of the loan to beoriginated are set at the same time the sale terms are established. The risk is that either of the two

parties, borrower or investor, fails to close and the loan "falls out" of the pipeline.

Flood Insurance

A form of hazard insurance required by lenders to cover properties in flood zones.

Floor

The minimum rate of interest payable on an adjustable-rate mortgage.

G

GainA profit on a securities transaction recognized by selling a security for more than

the security originally cost. The gain is the difference between the cost and the sale.

Gamma

The ratio of a change in the option delta to a small change in the price of the asset on which the

option is written.

Gap

Financing that is required, but for which no provision has been made. The difference in total

funding needed for a proposal and the amount of funding already made available.

Gap opening

In the context of general equities, opening price that is substantially higher or lower than the

previous day's closing price, usually because of some extraordinarily positive or negative news.
http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ii.html#cvhttp://biz.yahoo.com/f/g/rr.html#ihttp://biz.yahoo.com/f/g/mm.html#ckhttp://biz.yahoo.com/f/g/ll.html#bphttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ww.html#zhttp://biz.yahoo.com/f/g/oo.html#xhttp://biz.yahoo.com/f/g/cc.html#cihttp://biz.yahoo.com/f/g/cc.html#cihttp://biz.yahoo.com/f/g/oo.html#xhttp://biz.yahoo.com/f/g/ww.html#zhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/ll.html#bphttp://biz.yahoo.com/f/g/mm.html#ckhttp://biz.yahoo.com/f/g/rr.html#ihttp://biz.yahoo.com/f/g/ii.html#cvhttp://biz.yahoo.com/f/g/bb.html#bond


11/36

Garage

The floor of the NYSE, which is situated on the north side of the main trading floor.

Garbatrage

Rising stockprices and increased market activity in an entire sector caused by a psychology

change stemming from a major takeover involving two companies in the sector. Speculators feelother takeovers are likely in thesector.

Garman-Kohlhagen option pricing model

A model widely used to price foreign currency options.

Gather in the stops

A market strategy in which investors sell stocks to drive prices to a level that breaks through stop

orders known to exist. Once the price is low enough, the stop orders become market orders and

are executed, to createsnowballing.

GDP implicit price deflator

An economic technique used to account for inflation by comparing the current-dollar gross

domestic product GDP to constant-dollar GDP as a ratio. The ratio accounts for price changes of

goods and services that make up GDP and changes in the composite of GDP.

Gearing

Financial leverage.

H

Half-stock

Stock, common or preferred, with a $50 par value.

Hammering the market

Heavy selling ofstocks by speculators who think that the stock is overvalued and is about to

drop.

Handle

The whole-dollar price of a bid or offer is referred to as the handle (e.g., if a security is quoted at

101.10 bid and 101.11 offered, 101 is the handle). Traders are assumed to know the handle.
http://biz.yahoo.com/f/g/nn.html#chttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/tt.html#fhttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/ss.html#cqhttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/ff.html#cohttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/mm.html#vhttp://biz.yahoo.com/f/g/ee.html#b6http://biz.yahoo.com/f/g/ss.html#chhttp://biz.yahoo.com/f/g/gg.html#7http://biz.yahoo.com/f/g/gg.html#7http://biz.yahoo.com/f/g/ll.html#xhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/pp.html#preferred_stockhttp://biz.yahoo.com/f/g/pp.html#fhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#cqhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/tt.html#cehttp://biz.yahoo.com/f/g/tt.html#cehttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#cqhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/pp.html#fhttp://biz.yahoo.com/f/g/pp.html#preferred_stockhttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ll.html#xhttp://biz.yahoo.com/f/g/gg.html#7http://biz.yahoo.com/f/g/gg.html#7http://biz.yahoo.com/f/g/ss.html#chhttp://biz.yahoo.com/f/g/ee.html#b6http://biz.yahoo.com/f/g/mm.html#vhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/ss.html#dxhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ff.html#cohttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/ss.html#cqhttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/tt.html#fhttp://biz.yahoo.com/f/g/ss.html#yhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/nn.html#c


12/36

Hands-off investor

An investor who has a large stake in a company, but does not wish to play an active role in the

management of the corporation.

Hands-on investor

An investor who has a large stake in a corporation and takes an active role in its management.Antithesis ofhands-off investor.

Hang Seng index

The major index in Hong Kong.

Hard capital rationing

A capital budget that under no circumstances can be violated.

Hard currency

A freely convertible currency that is not expected to depreciate in value in the foreseeable future.

Hard dollars

Actual separate payments made by a customer for services, including research, provided by a

brokerage firm. Antithesis ofsoft dollars.

Harmless warrant

Warrant that allows the user to purchase a bond only by surrendering an other bond with similarterms.

I

Income fund

A mutual fund providing for liberal current income from investments.

Income stock

Common stock with a high dividend yield and few profitable investment opportunities.

Independent project

A project whose acceptance or rejection is independent of the acceptance or rejection of other
http://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/hh.html#bhttp://biz.yahoo.com/f/g/ii.html#uhttp://biz.yahoo.com/f/g/cc.html#fjhttp://biz.yahoo.com/f/g/ss.html#ckhttp://biz.yahoo.com/f/g/ww.html#dhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ww.html#dhttp://biz.yahoo.com/f/g/ss.html#ckhttp://biz.yahoo.com/f/g/cc.html#fjhttp://biz.yahoo.com/f/g/ii.html#uhttp://biz.yahoo.com/f/g/hh.html#bhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ii.html#c5


13/36

projects.

Index and Option Market (IOM)

A division of the CME established in 1982 for trading stock index products and options.Related: Chicago Mercantile Exchange (CME).

Index arbitrage

An investment/trading strategy that exploits divergences between actual and theoreticalfutures prices.

Index fund Investment

fund designed to match the returns on a stockmarket index.

Index model

A model of stock returns using a market index such as the S&P 500 to represent common orsystematic risk factors.

Income beneficiary

One who receives income from a trust.

Income bond

A bond on which the payment of interest is contingent on sufficient earnings. These bonds arecommonly used during the reorganization of a failed or failing business.

Income fund

A mutual fund providing for liberal current income from investments.

Index option

A call or put option based on a stock market index.

Index warrant

A stock index option issued by either a corporate or sovereign entity as part of asecurityoffering, and guaranteed by an option clearing corporation.


14/36

J

Joint account

An agreement between two or more firms to share risk and financing responsibility in

purchasing or underwriting securities.

Joint clearing members

Firms that clear on more than one exchange.

Junk bond

A bond with a speculative credit rating of BB (S&P) or Ba (Moody's) or lower is a junk or highyield bond. Such bonds offer investors higher yields than bonds of financially soundcompanies. Two agencies, Standard & Poors and Moody's investor Services, provide the rating

systems for companies' credit.

Junior debt

(subordinate debt) Debt whose holders have a claim on the firm's assets only after seniordebtholder's claims have been satisfied. Subordinated debt.

Jumbo loan

Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase orsecuritization by the federal agencies.

Joint Liability

Liability shared among two or more people, each of whom is liable for the full debt.

Joint Tenancy

The ownership of property by two or more persons with the survivor taking the share of thedeceased.

Jumbo Loan

A mortgage larger than the limits set by the Federal National Mortgage Association and theFederal Home Loan Mortgage Corporation, currently over $275,000. Because jumbo loans cannotbe funded by these two agencies, they usually carry a higher interest rate.

Junior Mortgage


15/36

A mortgage subordinate or secondary to another mortgage. In the case of a foreclosure a seniormortgage will be paid first.

K

Kappa

The ratio of the dollar price change in the price of an option to a 1% change in the expected pricevolatility.

Kiretsu

A network of Japanese companies organized around a major bank.

Keogh plan

A type of pension account in which taxes are deferred. Available to those who are self-employed.

Key industry

An industry that plays a critical role in a nation's economy.

Key man (or woman) insurance

A life insurance policy purchased by a company to insure the life of a key executive. Thecompany is the beneficiary in case of the executive's death.

Keynesian economics

An economic theory of British economist, John Maynard Keynes that active governmentintervention is necessary to ensure economic growth and stability.

Kick it out

Used in the context of general equities. "Liquidate a position (sell a long/cover a short) withoutregard to price."

Kickback

In the context offinance, refers to compensation ofdealers by sales financecompanies for discounting installment purchase paper.In the context ofcontracts, refers to secret payments made to insure that the contract goes to aspecific firm.

Kicker
http://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#deferred_taxeshttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#self_employed_incomehttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#industryhttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#life_insurance_policyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#purchasehttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#companyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosb.htm#beneficiaryhttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#liquidationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#positionhttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#longhttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#shorthttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#financehttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#compensationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#dealerhttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#salehttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#finance_companyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#finance_companyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#discounthttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#purchasehttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#contracthttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#contracthttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#firmhttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#firmhttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#contracthttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#contracthttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#purchasehttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#discounthttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#finance_companyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#finance_companyhttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#salehttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#dealerhttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#compensationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosf.htm#financehttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#shorthttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#longhttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#positionhttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#liquidationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosb.htm#beneficiaryhttp://www.duke.edu/~charvey/Classes/wpg/bfglosc.htm#companyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosp.htm#purchasehttp://www.duke.edu/~charvey/Classes/wpg/bfglosl.htm#life_insurance_policyhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#industryhttp://www.duke.edu/~charvey/Classes/wpg/bfgloss.htm#self_employed_incomehttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#deferred_taxes


16/36

An additional feature of a debt obligation that increases its marketability and attractivenessto investors.

Kiddie tax

Tax owed for the investment income of children if the amount is more than $1,400.

L

Last-In-First-Out (LIFO)

A method of valuing inventory that uses the cost of the most recent item in inventory first.

Liquidating dividend

Payment by a firm to its owners from capital rather than from earnings.

Liquidation

When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers aredistributed to shareholders. Any transaction that offsets or closes out a Long or short position.Related: buy in, evening up, offsetliquidity.

Liquidation rights

The rights of a firm's securityholders in the event the firm liquidates.

Liquidation value

Net amount that could be realized by selling the assets of a firm after paying the debt.

Liquidator

Person appointed by unsecured creditors in the United Kingdom to oversee the sale of aninsolvent firm's assets and the repayment of its debts.

Liquidity

A market is liquid when it has a high level of trading activity, allowing buying and sellingwithminimum price disturbance. Also a market characterized by the ability to buy and sell withrelative ease.

Liquidity diversification
http://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#debthttp://www.duke.edu/~charvey/Classes/wpg/bfgloso.htm#obligationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#investorhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#investment_incomehttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#investment_incomehttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#investorhttp://www.duke.edu/~charvey/Classes/wpg/bfgloso.htm#obligationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosd.htm#debt


17/36

Investing in a variety of maturities to reduce the price risk to which holding longbonds exposesthe investor.

Lend

To provide money temporarily on the condition that it or its equivalent will be returned, oftenwith an interest fee.

Lender

The bank, mortgage company, or mortgage broker offering the loan.

M

Management buyout (MBO)

Leveraged buyout whereby the acquiring group is led by the firm's management

Multinational corporation

A firm that operates in more than one country.

Multifamily loans

Loans usually represented by conventional mortgages on multi-family rental apartments.

Multiperiod immunization

A portfolio strategy in which a portfolio is created that will be capable of satisfying morethan one predetermined future liability regardless if interest rates change.

Multiple rates of return

More than one rate of return from the same project that make the net present value of the projectequal to zero. This situation arises when the IRR method is used for a project in which negative

cash flows follow positive cash flows. For each sign change in the cash flows, there is a rate ofreturn.

Multiple regression

The estimated relationship between a dependent variable and more than one explanatory variable.

Multiples


18/36

Another name for price/earnings ratios.

Multiple-discriminant analysis (MDA)

Statistical technique for distinguishing between two groups on the basis of their observedcharacteristics.

Multiple-issuer pools

Under the GNMA-II program, pools formed through the aggregation of individual issuers'loan packages.

Monthly Housing Expense

Total monthly expense of principal, interest, taxes, and insurance.

Mortgagee

The lender in a mortgage loan transaction.

N

National Futures Association (NFA)

The futures industry self regulatory organization established in 1982.

Nationalization

A government takeover of a private company.

Negative amortization

A loan repayment schedule in which the outstanding principal balance of the loan increases,rather than amortizing, because the scheduled monthly payments do not cover the fullamount required to amortize the loan. The unpaid interest is added to the outstanding principal, tobe repaid later.

Negative convexity

A bond characteristic such that the price appreciation will be less than the pricedepreciation for a large change in yield of a given number of basis points.

Negative covenant

A bond covenant that limits or prohibits altogether certain actions unless the bondholders agree.


19/36

Negative duration

A situation in which the price of the MBS moves in the same direction as interest rates.

Net book value

The current book value of an asset or liability; that is, its original book value net of any

accounting adjustments such as depreciation.

Net cash balance

Beginning cash balance plus cash receipts minus cash disbursements.

Net change

This is the difference between a day's last trade and the previous day's last trade.

Net errors and omissions

In balance of payments accounting, net errors and omissions record the statistical discrepanciesthat arise in gathering balance of payments data.

Net financing cost

Also called the cost of carry or, simply, carry, the difference between the cost of financing thepurchase of an asset and the asset's cash yield. Positive carry means that the yield earned isgreater than the financing cost; negative carry means that the financing cost exceeds the yieldearned.

O

Opening price

The range of prices at which the first bids and offers were made or first transactions werecompleted.

Opening purchase

A transaction in which the purchaser's intention is to create or increase a long position in a givenseries of options.

Opening sale


20/36

A transaction in which the seller's intention is to create or increase a short position in a givenseries of options.

OPEC (Organization of Petroleum Exporting Countries)

A cartel of oil-producing countries.

Operating cycle

The average time intervening between the acquisition of materials or services and the final cashrealization from those acquisitions.

Open account

Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt,and the seller records the sale in the sales ledger.

Open book

unmatched book.

Open contracts

Contracts which have been bought or sold without the transaction having been completed bysubsequent sale or purchase, or by making or taking actual delivery of the financial instrument orphysicalcommodity.

Open interest

The total number of derivative contracts traded that not yet been liquidated either by anoffsetting derivative transaction or by delivery. Related: liquidation.

Office of Comptroller Currency

The oldest federal financial regulatory body, which oversees the nation's federally charteredbanks.

P

P/E effect

That portfolios with low P/E stocks have exhibited higher average risk-adjusted returns than highP/E stocks.

Pac-Man strategy


21/36

Takeover defense strategy in which the prospective acquiree retaliates against the acquirer'stender offer by launching its own tender offer for the other firm.

Pairoff

A buy-back to offset and effectively liquidate a prior sale of securities.

Paper

Money market instruments, commercial paper and other.

P&L

Profit and loss statement for a trader.

P&S

Purchase and sale statement. A statement provided by the broker showing change in thecustomer's net ledger balance after the offset of a previously established position(s).

P/E

Price/Earnings ratio.

Par value

Also called the maturity value or face value, the amount that the issuer agrees to pay at thematurity date.

Parallel loan

A process whereby two companies in different countries borrow each other's currency for aspecific period of time, and repay the other's currency at an agreed maturity for thepurpose of reducing foreign exchange risk. Also referred to as back-to-back loans.

Property Tax

A government tax based on the market value of a property.

Purchase Agreement

Contract signed by buyer and seller stating the terms and conditions under which a property willbe sold.

Q


22/36

Qualifying annuity

An annuity allowable as investment for a qualified plan or trust.

Qualifying share

Shares ofcommon stock that a person must hold in order to qualify as a director of

the issuing corporation.

Qualifying stock option

A benefit granted by a corporation that allows employees to purchase shares at a discount price.

Qualitative analysis

An analysis of the qualities of a company that cannot be measured concretely, such as

management quality or employee morale.

Qualitative research

Traditional analysis of firm-specific prospects for future earnings. It may be based on data

collected by the analysts, there is no formal quantitative framework used to generate projections.

Quality of earnings

Increased earnings due to increased sales and cost controls, as compared to

artificial profits created by inflation ofinventory or other asset prices.

Quality option

Gives the seller choice of deliverables in Treasury bond and Treasury note futures contracts. Also

called the swap option. Related: Cheapest to deliver issue.
http://biz.yahoo.com/f/g/aa.html#cahttp://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/tt.html#c3http://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/qq.html#fhttp://biz.yahoo.com/f/g/ee.html#bhttp://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/ii.html#7http://biz.yahoo.com/f/g/ii.html#clhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/tt.html#cwhttp://biz.yahoo.com/f/g/tt.html#cxhttp://biz.yahoo.com/f/g/ss.html#eshttp://biz.yahoo.com/f/g/cc.html#b1http://biz.yahoo.com/f/g/cc.html#b1http://biz.yahoo.com/f/g/ss.html#eshttp://biz.yahoo.com/f/g/tt.html#cxhttp://biz.yahoo.com/f/g/tt.html#cxhttp://biz.yahoo.com/f/g/tt.html#cwhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ii.html#clhttp://biz.yahoo.com/f/g/ii.html#7http://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/ee.html#bhttp://biz.yahoo.com/f/g/qq.html#fhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/tt.html#c3http://biz.yahoo.com/f/g/ii.html#cphttp://biz.yahoo.com/f/g/aa.html#ca


23/36

Quality spread

Difference between Treasury securities and non-Treasury securities that are identical in all

respects except for quality rating. For instance, the difference between yields on Treasuries and

those on single A-rated industrialbonds. Also called credit spread.

Quant

A person with numerical and computer skills who carries out quantitative analyses of companies.

Quantize

To convert an asset or liability into a currency other than the regular trading currency.

R

Rally (recovery)

An upward movement ofprices. Opposite ofreaction.

Reverse-annuity mortgages (RAM)

Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is

then paid to the homeowner in the form of an annuity.

Random variable

A function that assigns a real number to each and every possible outcome of a random

experiment.

Random walk

Theory that stock price changes from day to day are accidental or haphazard; changes are

independent of each other and have the same probability distribution. Many believers in the

random walk theory believe that it is impossible to outperform the market consistently without
http://biz.yahoo.com/f/g/tt.html#cyhttp://biz.yahoo.com/f/g/yy.html#bhttp://biz.yahoo.com/f/g/tt.html#cthttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/qq.html#ehttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/pp.html#cthttp://biz.yahoo.com/f/g/rr.html#jhttp://biz.yahoo.com/f/g/aa.html#cahttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/aa.html#cahttp://biz.yahoo.com/f/g/rr.html#jhttp://biz.yahoo.com/f/g/pp.html#cthttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/qq.html#ehttp://biz.yahoo.com/f/g/cc.html#e6http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/tt.html#cthttp://biz.yahoo.com/f/g/yy.html#bhttp://biz.yahoo.com/f/g/tt.html#cy


24/36

taking additional risk.

Randomized strategy

A strategy of introducing into the decision-making process a chance element that is designed to

confound the information content of the decision-maker's observed choices.

Range

The high and low prices, or high and low bids and offers, recorded during a specified time.

Range forward

A forward exchange rate contract that places upper and lower bounds on the future cost offoreign

exchange.

Rate anticipation swaps

An exchange ofbonds in a portfolio for new bonds that will achieve the target portfolio duration,

given the investor's assumptions about future changes in interest rates.

Rate base

The value of a regulated public utility and its operations as defined by its regulators and on which

the company is allowed to earn a particular rate ofreturn.

Rate covenant

A provision governing a municipal revenue project financed by a revenue bond issue, which

establishes the rates to be charged users of the new facility.

Rate of interest

The rate, as a proportion of the principal, at which interest is computed.

Rate of return:
http://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/ff.html#czhttp://biz.yahoo.com/f/g/ff.html#cqhttp://biz.yahoo.com/f/g/ff.html#cqhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ii.html#bzhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/pp.html#c0http://biz.yahoo.com/f/g/ii.html#bzhttp://biz.yahoo.com/f/g/ii.html#bzhttp://biz.yahoo.com/f/g/pp.html#c0http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/ii.html#bzhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/pp.html#byhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ff.html#cqhttp://biz.yahoo.com/f/g/ff.html#cqhttp://biz.yahoo.com/f/g/ff.html#czhttp://biz.yahoo.com/f/g/ff.html#czhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/bb.html#bg


25/36

Calculated as the (value now minus value at time of purchase) divided by value at time of

purchase. For equities, we often include dividends with the value now. See also: Return, annual

rate of return.

S

Safety cushion

In a contingent immunization strategy, the difference between the initially

available immunization level and the safety-net return.

Safety-net return

The minimum available return that will trigger an immunization strategy in a contingentimmunization strategy.

Salary

Regular wages and benefits an employee receives from an employer.

Salary reduction plan

A plan allowing employees to contribute pre-tax income to a tax-deferred retirement plan.

Sale

An agreement between a buyer and a seller on the price to be paid for a security, followed

by delivery.

Sale and lease-back

Sale of an existing asset to a financial institution that then leases it back to the user.

Related: Lease.

Sales charge

The fee charged by a mutual fund at purchase ofshares, usually payable as a commission to a
http://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/aa.html#b6http://biz.yahoo.com/f/g/aa.html#b6http://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/ii.html#fhttp://biz.yahoo.com/f/g/ss.html#fhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/ii.html#ghttp://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/tt.html#shttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/dd.html#8http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ll.html#khttp://biz.yahoo.com/f/g/mm.html#cvhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/cc.html#c3http://biz.yahoo.com/f/g/cc.html#c3http://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/mm.html#cvhttp://biz.yahoo.com/f/g/ll.html#khttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/dd.html#8http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/tt.html#shttp://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/ii.html#ghttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/ss.html#fhttp://biz.yahoo.com/f/g/ii.html#fhttp://biz.yahoo.com/f/g/cc.html#dthttp://biz.yahoo.com/f/g/aa.html#b6http://biz.yahoo.com/f/g/aa.html#b6http://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/dd.html#cd


26/36

marketing agent, such as a financial adviser, who is thus compensated for assistance to a

purchaser. It represents the difference, if any, between the share purchase price and the share net

asset value.

Sales forecast

A key input to a firm's financial planning process. External sales forecasts are based on historical

experience, statistical analysis, and consideration of various macroeconomic factors.

Sales literature

Material written by an institution selling a product, which informs potential buyers of the product

and its benefits.

Sales tax

A percentage tax on the selling price of goods and services.

Sales-type lease

The leasing out of a firm's own equipment, such as a printing company leasing its own presses,

thereby competing with an independent leasing company.

Salomon Brothers World Equity Index (SBWEI)

A top-down, float capitalization-weighted index used to measure the performance of fixed-

income and equity markets. It includes approximately 6000 companies in 22 countries.

T

Take it down

Reduce the offering price or hit others' bids to such an extent as to lower the inside market.

Take a flier
http://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/nn.html#net_asset_valuehttp://biz.yahoo.com/f/g/nn.html#net_asset_valuehttp://biz.yahoo.com/f/g/ff.html#bihttp://biz.yahoo.com/f/g/ff.html#dhttp://biz.yahoo.com/f/g/ll.html#khttp://biz.yahoo.com/f/g/ff.html#b7http://biz.yahoo.com/f/g/ii.html#uhttp://biz.yahoo.com/f/g/ee.html#8http://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/hh.html#phttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/ii.html#behttp://biz.yahoo.com/f/g/ii.html#behttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/hh.html#phttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/ee.html#8http://biz.yahoo.com/f/g/ii.html#uhttp://biz.yahoo.com/f/g/ff.html#b7http://biz.yahoo.com/f/g/ff.html#b7http://biz.yahoo.com/f/g/ll.html#khttp://biz.yahoo.com/f/g/ff.html#dhttp://biz.yahoo.com/f/g/ff.html#bihttp://biz.yahoo.com/f/g/nn.html#net_asset_valuehttp://biz.yahoo.com/f/g/nn.html#net_asset_valuehttp://biz.yahoo.com/f/g/ss.html#bs


27/36

To speculate on highly risky securities.

Take me along

Allow me to participate in the side of a particular trade.

Take off

A sharp increase in the price of a stock, or a positive movement of the market as a whole.

Take the offer

Buy stockby accepting a floor broker's (listed) or dealer's (OTC) offer at an agreed-upon volume.

Antithesis ofhit the bid.

Take-out

A cash surplus generated by the sale of one block ofsecurities and the purchase of another, e.g.,

selling a block ofbonds at 99 and buying another block at 95. Also, a bid made to a seller of a

security that is designed (and generally agreed) to take the seller out of the market.

Take-or-pay contract

An agreement that obligates the purchaser to take any product that is offered (and pay the cash

purchase price) or pay a specified amount if the product is not taken.

Take a position

To buy or sell short; that is to own or to owe some amount on an asset or derivative security.

Take a powder

Temporarily cancel an order or indication in a stock, while unrepresented interest still exists.

See: Back on the shelf, sidelines.

Take a swing

Execute a trade at a price that the trader feels is higher or more risky than would normally be
http://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/ff.html#cchttp://biz.yahoo.com/f/g/dd.html#fhttp://biz.yahoo.com/f/g/oo.html#bshttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/hh.html#phttp://biz.yahoo.com/f/g/ss.html#enhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/ss.html#behttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/dd.html#bnhttp://biz.yahoo.com/f/g/cc.html#vhttp://biz.yahoo.com/f/g/oo.html#bfhttp://biz.yahoo.com/f/g/ii.html#1http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/bb.html#bhttp://biz.yahoo.com/f/g/ss.html#b5http://biz.yahoo.com/f/g/ee.html#b6http://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#cehttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/tt.html#cehttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ee.html#b6http://biz.yahoo.com/f/g/ss.html#b5http://biz.yahoo.com/f/g/bb.html#bhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ii.html#1http://biz.yahoo.com/f/g/oo.html#bfhttp://biz.yahoo.com/f/g/cc.html#vhttp://biz.yahoo.com/f/g/dd.html#bnhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ss.html#behttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ss.html#enhttp://biz.yahoo.com/f/g/hh.html#phttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/oo.html#bshttp://biz.yahoo.com/f/g/dd.html#fhttp://biz.yahoo.com/f/g/ff.html#cchttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/rr.html#cn


28/36

acceptable, in order to gain market share in the institutional arena.

U

Underbanked

When an originating investment banker cannot find enough firms to underwrite a new issue.

Underbooked

Describes limited interest by prospective buyers in a new issue of a security during

the preoffering registration period.

Undercapitalized

A business has insufficient capital to carry out its normal functions.

Underfunded pension plan

A pension plan that has a negative surplus (i.e., liabilities exceed assets).

Underinvestment problem

The mirror image of the asset substitution problem, in that stockholders refuse to invest in low-

riskassets to avoid shifting wealth from themselves to debtholders.

Underlying

What supports the security or instrument that parties agree to exchange in a derivative contract.

Underlying asset

The security or property or loan agreement that an option gives the option holder the rightto buy or to sell.

Underlying debt

Municipal bonds issued by government entities but under the control of larger government
http://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ii.html#crhttp://biz.yahoo.com/f/g/uu.html#hhttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/oo.html#hhttp://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/pp.html#9http://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/aa.html#cwhttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/dd.html#rhttp://biz.yahoo.com/f/g/dd.html#blhttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/mm.html#cthttp://biz.yahoo.com/f/g/mm.html#cthttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/dd.html#blhttp://biz.yahoo.com/f/g/dd.html#blhttp://biz.yahoo.com/f/g/dd.html#rhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ss.html#dthttp://biz.yahoo.com/f/g/aa.html#cwhttp://biz.yahoo.com/f/g/aa.html#cqhttp://biz.yahoo.com/f/g/ll.html#1http://biz.yahoo.com/f/g/pp.html#9http://biz.yahoo.com/f/g/cc.html#xhttp://biz.yahoo.com/f/g/oo.html#hhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/uu.html#hhttp://biz.yahoo.com/f/g/ii.html#crhttp://biz.yahoo.com/f/g/mm.html#n


29/36

entities and for which the larger entity shares the credit responsibility.

Underlying futures contract

A futures contract that supports an option on that future, which is executed if

the option is exercised .

Underlying security

For options, the security that is subject to purchase or sold upon exercise of an option contract.

For example, IBM stock is the underlying security for IBM options. For Depository receipts,

the class, series, and number of the foreign shares represented by the depository receipt.

Undermargined accountA margin account that no longer meets minimum maintenance requirements, requiring a margin

call on the investor.

Underperform

When a security is expected to, or does, appreciate at a slower rate than the overall market rate of

performance.

V

volatility

A measure ofriskbased on the standard deviation of the asset return. Volatility is a variable that

appears in option pricing formulas, where it denotes the volatility of the underlying asset return

from now to the expiration of the option. There are volatility indexes. Such as a scale of 1-9; a

higher rating means higher risk.

Volume deleted

A note appearing on the consolidated tape when the tape is running behind under heavy trading,
http://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ff.html#dkhttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/ee.html#b7http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ee.html#b7http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/uu.html#ehttp://biz.yahoo.com/f/g/aa.html#bthttp://biz.yahoo.com/f/g/cc.html#b8http://biz.yahoo.com/f/g/ss.html#bkhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/mm.html#jhttp://biz.yahoo.com/f/g/mm.html#khttp://biz.yahoo.com/f/g/mm.html#khttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/ss.html#c7http://biz.yahoo.com/f/g/vv.html#lhttp://biz.yahoo.com/f/g/vv.html#ehttp://biz.yahoo.com/f/g/oo.html#8http://biz.yahoo.com/f/g/uu.html#dhttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/nn.html#bihttp://biz.yahoo.com/f/g/tt.html#ihttp://biz.yahoo.com/f/g/tt.html#ihttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#ihttp://biz.yahoo.com/f/g/tt.html#ihttp://biz.yahoo.com/f/g/nn.html#bihttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/uu.html#dhttp://biz.yahoo.com/f/g/oo.html#8http://biz.yahoo.com/f/g/vv.html#ehttp://biz.yahoo.com/f/g/vv.html#lhttp://biz.yahoo.com/f/g/ss.html#c7http://biz.yahoo.com/f/g/rr.html#cnhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/mm.html#khttp://biz.yahoo.com/f/g/mm.html#khttp://biz.yahoo.com/f/g/mm.html#jhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ss.html#bkhttp://biz.yahoo.com/f/g/cc.html#b8http://biz.yahoo.com/f/g/aa.html#bthttp://biz.yahoo.com/f/g/uu.html#ehttp://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/ee.html#b7http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/ee.html#b7http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/oo.html#3http://biz.yahoo.com/f/g/ff.html#dkhttp://biz.yahoo.com/f/g/ff.html#dkhttp://biz.yahoo.com/f/g/ss.html#bs


30/36

meaning that only the stock symbol and price will be shown for trades under 5000 shares.

Volume discount

A reduction in price based on the purchase of a large quantity.

Voluntary accumulation plan

Arrangement allowing shareholders of a mutual fund to purchase shares over a period of time on

a regular basis, and in so doing take advantage ofdollar cost averaging.

Voluntary bankruptcy

The legal proceeding that follows a petition of bankruptcy.

Voluntary liquidation

Liquidation proceedings that are supported by a company's shareholders.

Voluntary plan

A pension plan supported partially by the employee by pension contributions deducted from each

paycheck.

VA Loan

Home loan available to veterans with little or no down payment and guaranteed by the U.S.

Veteran's Administration.

Variable Rate Mortgage

See Adjustable Rate Mortgage.

Variable Rate
http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/mm.html#cvhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/dd.html#cqhttp://biz.yahoo.com/f/g/ll.html#bfhttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/ll.html#bfhttp://biz.yahoo.com/f/g/dd.html#cqhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/mm.html#cvhttp://biz.yahoo.com/f/g/ss.html#brhttp://biz.yahoo.com/f/g/ss.html#bshttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#stock


31/36

Interest rate that changes periodically in relation to an index.

W

Wage assignment

A loan agreement provision allowing the lender to deduct payments from an employee's wages in

case of default.

Wage-push inflation

Inflation caused by skyrocketing wages.

Waiting period

Time during which the Securities and Exchange Commission (SEC) studies a firm's registration

statement. During this time the firm may distribute a preliminary prospectus.

Waiver of premium

A provision in an insurance policy that allows payment of insurance premiums to be permanently

or temporarily stopped in the event the policyholder becomes incapacitated.

Walk away

To take and maintain a position in a stock after going to the floor to consummate a trade.

Antithesis oftrade me out, buy them back.

Wall Street

Generic term for the securities industry firms that buy, sell, and underwrite securities.

Wall Street analyst

Related: Sell-side analyst

Wallflower
http://biz.yahoo.com/f/g/ll.html#qhttp://biz.yahoo.com/f/g/ii.html#7http://biz.yahoo.com/f/g/ss.html#bhttp://biz.yahoo.com/f/g/rr.html#2http://biz.yahoo.com/f/g/rr.html#2http://biz.yahoo.com/f/g/pp.html#dthttp://biz.yahoo.com/f/g/ii.html#brhttp://biz.yahoo.com/f/g/pp.html#chhttp://biz.yahoo.com/f/g/pp.html#buhttp://biz.yahoo.com/f/g/pp.html#b4http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#cdhttp://biz.yahoo.com/f/g/bb.html#c3http://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/uu.html#fhttp://biz.yahoo.com/f/g/ss.html#bbhttp://biz.yahoo.com/f/g/ss.html#bbhttp://biz.yahoo.com/f/g/uu.html#fhttp://biz.yahoo.com/f/g/uu.html#fhttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/bb.html#c3http://biz.yahoo.com/f/g/tt.html#cdhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/pp.html#b4http://biz.yahoo.com/f/g/pp.html#buhttp://biz.yahoo.com/f/g/pp.html#chhttp://biz.yahoo.com/f/g/ii.html#brhttp://biz.yahoo.com/f/g/pp.html#dthttp://biz.yahoo.com/f/g/rr.html#2http://biz.yahoo.com/f/g/rr.html#2http://biz.yahoo.com/f/g/ss.html#bhttp://biz.yahoo.com/f/g/ii.html#7http://biz.yahoo.com/f/g/ll.html#q


32/36

Stock that has fallen out of favor with investors; stock that tends to have a low P/E (price-to-

earnings ratio).

Wallpaper

A security with no monetary value.

Wanted for cash

A statement displayed on market tickers indicating that a bidder will pay cash for same-day

settlement of a block of a specified security.

Warehousing

The interim holding period from the time of the closing of a loan to its subsequent marketingto capital market investors.

Warrant

A security entitling the holder to buy a proportionate amount ofstockat some specified future

date at a specified price, usually one higher than current market price. Warrants are traded as

securities whose price reflects the value of the underlying stock. Corporations often bundle

warrants with another class of security to enhance the marketability of the other class. Warrants

are like call options, but with much longer time spans-sometimes years. And, warrants

are offered by corporations, while exchange-traded call options are not issued by firms.

Warranty

A guarantee by a seller to a buyer that if a product requires repair or remedy of a problem within

a certain period after its purchase, the seller will repair the problem at no cost to the buyer.

X

XDR

The ISO 4217 currency code for the Special Drawing Rights (SDR).
http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/pp.html#7http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/bb.html#bjhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/hh.html#rhttp://biz.yahoo.com/f/g/ll.html#bphttp://biz.yahoo.com/f/g/cc.html#7http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/uu.html#ehttp://biz.yahoo.com/f/g/cc.html#b8http://biz.yahoo.com/f/g/cc.html#lhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/cc.html#lhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://biz.yahoo.com/f/g/cc.html#lhttp://biz.yahoo.com/f/g/oo.html#ehttp://biz.yahoo.com/f/g/cc.html#lhttp://biz.yahoo.com/f/g/cc.html#b8http://biz.yahoo.com/f/g/uu.html#ehttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/bb.html#cyhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/cc.html#7http://biz.yahoo.com/f/g/ll.html#bphttp://biz.yahoo.com/f/g/hh.html#rhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/bb.html#bjhttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/pp.html#7http://biz.yahoo.com/f/g/ii.html#c5http://biz.yahoo.com/f/g/ss.html#stock


33/36

XMI

Applies to derivative products. Quotron symbol for the Major Market Index (MMI).

X or XD

Symbol that indicating that stock is trading ex-dividend, with no dividend.

XR

Symbol indicating that a stock is trading ex-rights, with no rights attached.

XW

Symbol indicating that a stock is trading ex-warrants, with no warrants attached.

XAF

The ISO 4217 currency code for the CFA Franc.

XBA

The ISO 4217 currency code for the European Composite Unit (EURCO).

XBB

The ISO 4217 currency code for the European Monetary Unit (EMU).

XCD

The ISO 4217 currency code for the East Caribbean Dollar.

YYear-to-date (YTD)

The period beginning at the start of the calendar year up to the current date.

Yankee bonds

Foreign bonds denominated in U.S. dollars and issued in the United States by foreign banks and

corporations. These bonds are usually registered with the SEC. Such as, bonds issued by

originators with roots in Japan are called Samurai bonds.
http://biz.yahoo.com/f/g/ss.html#evhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/ss.html#evhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/rr.html#ckhttp://biz.yahoo.com/f/g/ss.html#evhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ww.html#dhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/ss.html#2http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ss.html#jhttp://biz.yahoo.com/f/g/ss.html#jhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ss.html#2http://biz.yahoo.com/f/g/ii.html#dahttp://biz.yahoo.com/f/g/bb.html#bondhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://www.duke.edu/~charvey/Classes/wpg/bfglosi.htm#international_standards_organizationhttp://biz.yahoo.com/f/g/ww.html#dhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#evhttp://biz.yahoo.com/f/g/rr.html#ckhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#evhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/tt.html#cahttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/ss.html#ev


34/36

Yankee CD

A CD issued in the domestic market, typically New York, by a branch of a foreign bank.

Yankee market

The foreign market in the United States.

Yard

Slang for one billion currency units. Used particularly in currency trading, e.g., for Japanese yen

since one billion yen equals approximately US$10 million. It is clearer to say, "I'm a buyer of a

yard of yen," than to say, "I'm a buyer of a billion yen," which could be misheard as "I'm a buyer

of a million yen."

Year-end dividend

A special dividend declared at the end of a fiscal year that usually represents distribution of

higher-than-expected company profits.

Year-to-date (YTD)

The period beginning at the start of the calendar year up to the current date.

Yellow sheets

Sheets published by the National Quotation Bureau that detail bid and askprices, plus those firms

that are making a market in over-the-counter corporate bonds.

Yen bond

Any bond denominated in Japanese yen currency.

Yield

The percentage rate ofreturn paid on a stock in the form ofdividends, or the effective rate

ofinterest paid on a bond or note.
http://biz.yahoo.com/f/g/cc.html#bvhttp://biz.yahoo.com/f/g/dd.html#cuhttp://biz.yahoo.com/f/g/ff.html#cshttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/aa.html#cohttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/oo.html#bshttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/ii.html#buhttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/nn.html#bihttp://biz.yahoo.com/f/g/nn.html#bihttp://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/ii.html#buhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/ss.html#stockhttp://biz.yahoo.com/f/g/rr.html#b8http://biz.yahoo.com/f/g/bb.html#bondhttp://biz.yahoo.com/f/g/oo.html#bshttp://biz.yahoo.com/f/g/oo.html#bshttp://biz.yahoo.com/f/g/mm.html#nhttp://biz.yahoo.com/f/g/aa.html#cohttp://biz.yahoo.com/f/g/bb.html#bghttp://biz.yahoo.com/f/g/pp.html#dfhttp://biz.yahoo.com/f/g/dd.html#cdhttp://biz.yahoo.com/f/g/ff.html#cshttp://biz.yahoo.com/f/g/dd.html#cuhttp://biz.yahoo.com/f/g/cc.html#bvhttp://biz.yahoo.com/f/g/cc.html#bv


35/36

Yield advantage

The advantage gained by purchasing convertible securities instead ofcommon stock, which

equals the difference between the rates of return of the convertible security and the common

shares.

Z

Z bond

Also known as an accrual bond or accretion bond; a bond on which interest accretes interest but

is not paid currently to the i nvestor but rather is accrued, with accrual added to the principal

balance of the and becoming payable upon satisfaction of all prior bond classes.

Z score

Statistical measure that quantifies the distance (measured in standard deviations) a data point is

from the mean of a data set. Separately, z score is the output from a credit-strength test that

gauges the likelihood of bankruptcy.

Zero coupon bond

Such a debt security pays an investor no interest. It is sold at a discount to its face price and

matures in one year or longer.

Zero prepayment assumption

The assumption of payment of scheduled principal and interest with no payments.

Zero-balance account (ZBA)
http://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/rr.html#hhttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/cc.html#dchttp://biz.yahoo.com/f/g/cc.html#dchttp://biz.yahoo.com/f/g/cc.html#dchttp://biz.yahoo.com/f/g/cc.html#dchttp://biz.yahoo.com/f/g/ss.html#4http://biz.yahoo.com/f/g/rr.html#hhttp://biz.yahoo.com/f/g/cc.html#ddhttp://biz.yahoo.com/f/g/ss.html#4


36/36

A checking account in which zero balance is maintained by transfers of fundsfrom a master

account in an amount only large enough to cover checks presented.

Zero-beta portfolio

A portfolio constructed to represent the risk-free asset, that is, having a beta of zero.

Zero-coupon bond

A bond in which no periodic coupon is paid over the life of the contract. Instead, both the

principal and the interest are paid at the maturity date.

Zero-investment portfolio

A portfolio of zero net value established by buying and shorting component securities,

usually in the context of an arbitrage strategy.

Zero-one integer programming

An analytical method that can be used to determine the solution to capital rationing problem.

Zero-sum game

A type of game wherein one player can gain only at the expense of a of another player..!!!!!!!!!!!

Documents

Gaurav Newalkar New Edited by GG