The lowest price at which a particular stock has been traded in the past year is the 52 week low. It helps investors and traders to comprehend the current status of the stock as well as understand the direction and momentum of the market and price of the stock.
The highest price at which a particular stock has been traded in the past year is the 52 week high. It helps investors and traders to comprehend the current status of the stock as well as understand the direction and momentum of the market and price of the stock.
It stands for against all the risks.
A top reversal signal where a candlestick pattern is one in which there is an upside gap doji star and afterwards it has a downside gap and in both the shadows do not touch.
When the assessment is known to be incorrect then there is a reduction in tax, penalty or interest .
A notice served on the owner property from where a private nuisance arises, warning them of their intention to enter the land in order to abate the nuisance.
ABC Wave Theory is a technical analysis used to analyze financial market cycles and forecasting market trends by identifying the highs and the lows in stock prices. They move in impulsive and corrective waves. An impulsive wave defines the market as it moves strongly in one direction whereas corrective waves move in the opposite direction of the key trend. Abuse of law
An Abridged Prospectus is a memorandum prescribed in Section 2(1) of the Companies Act, 2013,that contains the salient features of the memorandum of the prospectus. It contains all the details as specified by the Securities and Exchange Board of India (SEBI).
A way to calculate product costing that assigns a representative portion of all types of manufacturing costs direct materials, direct labor, variable factory overhead, and fixed factory overhead to individual products.
This is the sole owner of a piece of property, such as a building, vehicle or piece of equipment. Abstract of title It is a document which summarises all the title deeds to a property such as a house. It is drawn up for the seller when a property is being sold.
A part of the policy’s face amount, discounted by interest, that can be paid to the insured prior to death, under specified circumstances. These benefits are made if the insured becomes terminally ill, needs extreme medical intervention.etc.
It is the method of depreciation according to which taxpayers may allocate larger depreciation deductions to the first few years of useful business assets.
The agreement written on a draft and signed by the drawee who then becomes the acceptor and is liable to pay the specified amount on the due date.
It is a letter of credit that authorises payment on or after a specific date if the terms of the letter of credit have been complied with.
After collection of sanctioned letter, if you tend to accept the terms of contract, then your willingness should be communicated to accept the loan by way of an acceptance letter. It should be done between 1-3 months from the date of the receiving of the sanction letter.
The person who accepts a bill of exchange drawn on them and ;undertakes to pay the person presenting the bill the amount mentioned on that bill.
In the context of life insurance, It is defined as a sudden and unforeseen happening that causes disability or death of the policyholder.
In the context of life insurance, It is defined as a sudden and unforeseen happening that causes disability or death of the policyholder.
An ad that pays the beneficiary an extra benefit if the insured death results from an accident.
It is insurance cover in the event of death due to accidental injuries, but not illness. In case death happens, payment is made to the insured's beneficiary.
It is a method of calculating amounts subject to income tax and VAT. Here tax would be computed as a percentage levy on the excess of sales over purchases.
A time period used by taxpayer for the determination of tax liability.usually from april 1 to 31st march
All papers used in the preparation of the tax return and financial statements, including ledgers.
It is a current liability that is liabilities for 1 year. It shows the amounts due to others when such liability resulted from the purchase or manufacturing of inventory.
Any money due to a business for merchandise or securities that it has sold or for services it has rendered. It is to analyze the liquidity position of the company.
It indemnifies for losses that are results of an inability to collect from open commercial account debtors because records have been destroyed by an insured peril.
A accounting method that allows revenues and expenses to be accrued, even if the cash had not been received or paid.
An accounting method whereby income and expense items are included in taxable income or expense as they are earned or incurred, rather are received or paid.
Organisations prepare all of their annual accounts covering a period of 12 months. The last day of the period is called the accounting date.
This is the rate by which a pension from an earnings−related occupational pension scheme builds up from one year to another. The rate is shown as a fraction or a percentage of the member's final yearly salary.
If an organisation owes money for goods and services but has not received a bill up to the date it prepares its accounts, it will estimate what it owes.
It will then include the debt in its accounts. This estimated liability is called an accrual.
This is an investment that pays interest at regular intervals. When it is sold, interest might have built up and this interest will be paid to the new owner
It happens when the client has defaulted in fulfilling its obligations towards the participant. The closing of the beneficiary and pool accounts by the investor and the clearing member at the discretion of the participant.
It is when the notional amount on which the instrument is based increases successively during its life.
A description applicable to a range of instruments, e.g. caps, swaps, collars and swap options.
It is a formal document that an accountant's gives to management on financial statements after analyzing them.
The interest accruing on a security since the previous coupon date. If a security is sold between two payment dates, the buyer usually compensates the seller for the interest accrued, either within the price or as a separate payment.
These are the expenses that a company is required to pay in the future. It is a current liability for the company.Examples: interest payments on loans, any form of services received but not paid for, wages and taxes incurred, etc.
It is the amount of interest earned loan but not yet collected i.e. it has not been paid by the borrower and has not yet been received by the lender. The interest keeps getting accumulated from the date of issue of the loan.
This is the date when income will be credited to a unit trust which reinvests its income (an accumulation unit), instead of paying the income out to the investors.
This type of unit trust which reinvests the income it earns, instead of paying it out immediately to its investors, is called an accumulation unit.
A type of superannuation fund in which the benefit a member receives reflects total contributions plus whatever they have earned, less expenses and tax, so the benefit reflects the performance of the fund’s investments.
Formula: The value of cash equivalents and accounts receivable (the quick assets) divided by current liabilities It analyzes firm’s corporate liquidity
They are the Perils that cannot be guarded against, such as floods and earthquakes.
Daily activities that triggers payment in a long-term care insurance policy, even if some of them cannot be performed by the insured.
It is a form of insurance that pays damages equal to the replacement value of damaged property minus depreciation.
The ratio of losses incurred to premiums earned in a given line of insurance activity in a previous time period.
These are the assumptions such as the rates of investment earnings, mortality, etc and actual ages at which employees are likely to retire.
A way that determines contributions that will be made under an insurance plan.
A strategy which uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.
A person who does the analysis, evaluation, and management of statistical information using different methods, and determines other business and financial risks.
The trading of securities to take advantage of market opportunities. In contrast to passive management, active managers rely on research, market forecasts, and their own judgment and experience in selecting securities to buy and sell.
The raw beta of a public listed company is based on historical data and it is assumed that in the long run it will close to 1 i.e. market beta whereas adjusted beta of a security is future estimated beta derived from regression beta.
It is calculated using CAPM model in financial modeling.
Formulae: Adjusted Beta = 2/3 *Raw Beta +1/3
It is the Margin, collected by the Stock Exchange from the broker members , having large outstanding position in overall or specific volatile scrip's having low price . They are illiquid keeping in view the risk perspective.
ADRs are issued in US and listed on a stock exchange in the US such as New york Stock Exchange.
If a duty is ad valorem the duty means it varies with the price of the asset which is being transferred.
People in occupational pension schemes can pay in extra money to increase their pension benefits. The extra money they pay in is an additional voluntary contribution.
This happens when someone has left something in a will, but the item no longer exists so cannot be bequeathed.
If a court appoints someone to look after a company's affairs the court issues an administration order. This order gives the person appointed power to run the company.
This is someone who has been appointed to manage the affairs of a bankrupt business or has been appointed to manage the estate of someone who has died without leaving a will.
The advance corporation tax paid could usually be offset against the corporation tax due on the company's profits.
Term for an exchange rate regime where a country’s exchange rate is pegged (i.e. fixed) in relation to another currency (normally the dollar), but where the rate may be changed from time to time.
The process of granting permission to the securities of a company to be listed in a Stock Exchange and to provide trading facilities for the securities in the market.
The advance/decline line is considered the best indicator of market movement as a whole.
A financial intermediary who offers advice on personal financial matters. Advisers may be paid an upfront or an ongoing commission for the investments that they recommend.
Adaptive filter helps in the prediction of stock market trends. Dynamics weighing the old prices of stock allow understanding this method and computing of the corresponding forecast. It is used to decide on buying or selling in the open market.
It is the method of paying interest where the interest is added onto the principal at maturity or interest payment dates. It combines the total principal amount borrowed and the total interest due to a single figure.
Add on offering, also called a follow-on offering (FPO) is a process by which an already listed company issues new shares after a company's initial public offering (IPO). Investors and shareholders get a chance to value the company since it’s stock is already traded, publicly.
FPO helps a company to expand it’s equity base or pay off a debt
It refers to the cash-price equivalent value of a futures contract that will be used to purchase an asset in the future.
It is an agreement between the two parties, stating assurance by a party receiving an advance payment to the party advancing the payment. This concerns to government bonds, non-convertible debentures (NCD) or other debt instruments. The guarantee of the same is provided by the party accepting the advance payment to the party making the payment.
When the trade goes in the opposite direction after execution by the trader or it doesn’t go in the desired direction. It is useful when it comes to setting stops.
The Maximum Adverse Excursion is the maximum amount the price goes against you whilst in trade, i.e. the lowest low.
This stands for annual equivalent rate. It is quoted by financial institutions, such as banks, to show how much the interest rate would be if the interest was worked out just once a year.
An affidavit is a written statement which is sworn to be true by the person signing it. It is sworn before someone authorised by the court.
It refers to the buying and selling of stock outside the regular trading hours. It takes place right after the market closes
Orders that a broker executes for the customers account with another professional or retail investor.
A fund that has higher risk of loss in return for potentially higher returns .
A letter sent to the successful applicant by the company stating his allotment of shares or debentures or other securities against his application.
Document of title issued to investors by companies stating allotment of securities to the applicants who subscribe for such securities .These letters are negotiable in the market.
It is the percentage of the money left which can be invested after the charges have been taken off when the money is paid into a fund. For example, if the charges were 3% the allocation rate would be 97%.
If the director appoints someone to take his or her place, the person is called an alternate director
In a Jensen Index, a factor which represent the portfolio’s performance that diverges from its beta,representing the manager’s performance.
It refers to buying or selling the stock that needs to be executed completely or not at all.
All or none orders that cannot be executed immediately remain active until they are executed or cancelled. This can only be executed if there are enough shares available to process a transaction. It also affects the investor as the price of the stock during the transaction will affect the total cost incurred.
Alpha is as a measure of performance of portfolio.
Whenever a portfolio manager, trader or strategy has been able to overcome the market return for a particular duration. Some investors depicts it as a value addition or subtraction by the fund manager to the beta value.
it measures movements in the value of the major shares listed on the Australian Stock Exchange.
American Option : Options both Put & Call that can be exercised on or before expiry date.
Association of Merchant Bankers in India
A certificate issued in the United States in lieu of a foreign security. The original securities are in Bank/Custodian abroad, and these are traded in a similar way as if they were a domestic stock.
An accounting description of the writing-down of the book value of an asset over time or the systematic repayment of a debt.
A wealthy individual who invests in private entrepreneurial firms. Although angels perform many of the same functions as venture capitalists, they invest their own capital rather than that of institutional and other individual investors
A firm / company / an individual who is employed either on his own behalf or on behalf of any other firm or organization who is regularly publishing securities recommendations based on research either through print media or electronic media.
Anchoring refers a specific target number as a starting point used by a person. The person then subsequently adjusts that information until an admissible value is reached over time.
The changes in the earning of a company due to market fluctuation from year to year, due to changes in the market or readjustment of previous earnings.
The total expenses incurred in operating the fund are a fund's costs. These expenses include management and transaction fees and distribution fees and are reported as a percentage of the fund’s total assets.
These are required to be disclosed to the investors in a funds prospectus.
It is a financial ratio that is used to calculate how much net profit is generated from the total revenue of the company.
The net profit margin is equal to net income (also known as net profit) divided by total revenue. It is of great importance to investors as it helps in assessing the financial health of the company.
It is the change in the annual sales of a company between the recent fiscal year and the next year. It is expressed as a percentage.
Anchoring refers a specific target number as a starting point used by a person. The person then subsequently adjusts that information until an admissible value is reached over time.
The person whose life is insured is the annuitant.
The time you spend contributing to your annuity is the accumulation phase. The annuitization phase begins when you start receiving money from your annuity.
The contract which provides income at regular intervals for a defined period of time, such as a specific number of years or for life.
The date stated in the annuity contract indicating when annuity payments will begin. This is also known as the annuity start date
The changes in the earning of a company due to market fluctuation from year to year, due to changes in the market or readjustment of previous earnings.
The total expenses incurred in operating the fund are a fund's costs. These expenses include management and transaction fees and distribution fees and are reported as a percentage of the fund’s total assets. These are required to be disclosed to the investors in a funds prospectus.
It is a yearly meeting between a company’s shareholders and board of directors. The annual report of the company is presented and the year’s important events are discussed.
It is a financial ratio used to calculate how much net profit is generated from the total revenue of the company.
The net profit margin is equal to net income (also known as net profit) divided by total revenue. It is of great importance to investors as it helps in assessing the financial health of the company.
An annual report is a detailed report of a company's activities and finances that took place in the preceding year. It is presented to the shareholders. It helps in measuring a company's financial performance and other activities.
A change in the annual sales of a company between the recent fiscal year and the next year. The business outcome, as well as fluctuations in market conditions, cause these changes, It expressed as a percentage.
A person whose life is insured.
It begins when you start receiving money from your annuity.
The contract which provides income at regular intervals for a defined period of time, such as a specific number of years or for life.
The date stated in the annuity contract indicating when annuity payments will begin.
A rise in the price of a security or in value of the currency or in terms of one another.
A person duly registered by the SEBI, through whom the lender of securities will deposit the securities and the borrower will borrow those securities.
Arbitrage is the process of simultaneously buying and selling of securities in different markets in order to take advantage of a price between two or more markets.
Deterministic arbitrage: It is purchasing of one commodity or security in one market for immediate sale in another market .
Statistical arbitrage It attempts to buy a underpriced item and sell a similar, overpriced item, in order to make profit when the price has a more appropriate theoretical or historical relationship
Risk arbitrage It works on the principles of risk offset to mergers and other major corporate developments. The positions do not insulate the investor from certain event risks so that the arbitrage is incomplete.
Tax arbitrage transactions they are undertaken to share the benefit of differential tax rate between two or more parties in a transaction.
Regulatory arbitrage transactions They are designed to provide indirect access to a risk management market where one party is denied direct access by law or regulation.
Swap driven arbitrage transactions They are the comparative advantages in which swap counter-parties have in different debt and currency markets. One counterparty may borrow at a relatively lower rate in the fixed market, while the other may have a advantage in floating rate market.
When a person buys security from one market at a certain price and simultaneously selling it in another market at a higher price, the process is known as Arbitrage Selling
A dispute resolution mechanism to resolve dispute that happens between the trading members and their clients in respect of trades done on the exchange.
An option whose pay-off depends on the average value of an underlying over a specified period.
The process of determining the optimal division of an investor’s portfolio among different assets.also this refers to allocations between debt, equity, and cash.
A mutual fund that splits its investment assets among stocks, bonds, and other vehicles in order to provide a consistent return for the investor.
A process that creates a series of securities which is collateralized by assets mortgaged against loans, assets leased out, trade receivables, or assets sold on hire purchase basis or installment contracts on personal property.
The function of managing assets on the behalf of the customer, for which a fee is charged.
The company which handles the day to day operations and investment decisions of a unit trust.
A person who buys a company in order to make profit by peeling off its assets bit by bit, and then selling them such as plant ,equipment or property.
A situation where access to information by one party (or parties) to a transaction is better than access by another party (or parties).
A central association of mutual fund across India.
It is the lowest price at which certain securities are put up for sale by a seller. The basis of the stock quote is formed by combining the asking price and the bid price.
Ask price is the lowest price at which the seller is ready to accept and sell the security. The ask price is generally higher than the bid price of the seller. Moreover, the asking price and bid price are always quoted together.
Ask size refers to the total number of shares offered for sale by the seller at a quoted ask price. It is the exact opposite of the bid price. The bid price is the number of shares a buyer willing to purchase at the quoted bid price. Ask size is quoted in units of 100.
The transfer of a property interest,specifically a lease, from one party to another.
An investment strategy that attempts to balance risk by diversifying a portfolio's assets. It aims at reducing the risk for investors.
It means a fund that invests over a range of assets and spreads its portfolio among a wide variety of investments.
Investments can be domestic or foreign stocks , debt instruments viz. debenture or bonds , mutual fund units , real assets viz: Gold or real estate etc.
It is a firm registered with SEBI handles all the assets of its clients. It invests the funds of the client into varied investments including stocks, bonds, real estate, master limited partnerships, and more. It decides and runs the clients' investment pool.
Expenses are the amount of assets in your plan. These fees are charged as percentages or basis points.
it Refers to a group of securities with broad characteristics in common. These sectors include Australian shares, international shares, property, cash, Australian fixed interest, international fixed interest and private capital .
The percentage of an investment held in each asset sector. Investment analysis is the outworking of asset allocation.
example:- Australian shares 27%, international shares 18%, property investments 15%, Australian fixed interest 35% and short dated fixed interest 5%. Asset mixes are applicable to both the total fund and individual products.
It is an economic resource that an individual or a firm can own or control with an expected return or a future benefit.
Assets can be broadly categorized as financial asset viz. stocks, debenture , bonds, money market instruments V/s real assets viz. land & building , gold , vehicles etc.
An instruction from the client to the broker authorizing him to use his discretion so as to execute an order at the best possible market price.
It is the final price of last traded stock at the end of the day. It provides information about the momentum and the direction of the stock.
Buying and selling a security at the very beginning of the day when trading opens is called at the open. Open orders get cancelled as they are not executed at the beginning of the day.
When the strike price of the option matches the current price of the stock, it is referred to as ‘at the money.’
An option placed in an ‘at the money’ situation is called an at the money option. In such an option, the strike price matches/most nearest to the current price of the stock. This option has no inherent value.
An investor can get benefits from reinvesting capital gains back into the fund.
He is a person appointed to act for another person when that person is unable to look after his own affairs this formal document is used to appoint the attorney.
It is the maximum equity capital ;a company is authorized to issue in order to allocate them to shareholders.
It is the forecasting of future values based on the previous year data . Authority
It is an optional service that will periodically exchange money between funds in your account to maintain your original investment levels.
It is the forecasting of future values based on the previous year data .
When a seller is not in a position to deliver the securities he has to sell, the buyer sends his applications for buying-in, so that the securities can be bought from the market and del
A person who is professionally qualified to examine and scrutinize accounts so as to know the profitability and financial position of the company.
The organisations that regulate auditors, for ex: The Institute of Chartered Accountants in England and Wales, set some standards which have to be followed during the process of audit . These are called auditing standards.
A passive long term investor.
Assistants or clerks or members who are authorized by them to do business on their behalf in the market. They had to fulfill all the transactions and business commitments.
The capital that a company has been authorized to raise by way of equity and preference shares.
Automatic coverage. A coverage for An insurer to cover accidents from all machinery of the same type.
The correlation between the time series value of current year and previous year values of the same time series.
It is a strategy whereby a small amount of money is directly deducted from an investor’s bank accounts to transfer funds into an investment account. It is also referred to as a Systematic Investment Plan. The amount is predetermined and gets deducted at regular intervals, quarterly, daily or monthly. Automatic investment plan It allows for easy execution of a dollar cost averaging strategy by making the investor to save a set amount over a specific time period.
It is an investment option used to buy more units in funds, where the money earned from the fund’s dividend or profit is automatically reinvested.
It is an agreement where the ceding company cedes some business and the reinsurer is required to accept them.
A person who adjusters claim.
Average annual total returns It is the returns that could have produced the cumulative total return if fund performance had been constant during a given period.
Average daily volume is the average number of securities traded per day during a specific period of time. It keeps changing. The price of a stock is affected by the average trading volume. The liquidity of the stock will be high if the average trading volume is high. Whenever the orders are fewer, the risk of price changes is high. The average daily volume helps in measuring the overall market liquidity of a stock.
The purchase of additional units of stocks which are already held by an investor after a price drop .It is to reduce the average cost per investment unit.
The arithmetic mean of the internal rates of return.
P/E stands for price/earnings ratio:
Formulae: The market price of a share divided by the earnings per share. It is used for determining the stock valuation. It describes what the market is willing to pay today for a stock based on its past or future earnings. The dividends of a company are bound to rise if their earnings increase which further results in an increase in stock price.
It can be applied to stocks and indices to measure the degree of price volatility.
This is calculated as dividing the total tax liability by the entity's taxable income.
There are Commercial airlines which has property insurance on aeroplanes and liability insurance for negligent acts that result in injury or property damage to other people.
It is a term that is used to describe the arrangement of a taxpayer's affairs that is intended to reduce the tax liability
Average weekly earnings.
Average weekly ordinary time earnings – a measure of average wages. It is the return which is received on a fund performance if it had been constant during a given period
BIt is the letter of a NASDAQ stock descriptor elaborating that issue is the Class B shares of the companyB2B
It is referred to as business to business. It is an Internet strategy of dealing directly with businesses, instead of consumers.
BA
It is two-character international organization for standardization; 3166 country code for BOSNIA AND HERZEGOVINA.
Baby Bond
A small bond which has a par value of less than $1000.
Back Away
In the linguistic context of general equities,In a given security,it is to withdraw from a previously declared interest, indication, or transaction, as a market maker so as to make good on a bid/offer for the minimum quantity.
Back Fee
The fee that is paid on the extension date if the buyer has decided to continue the option.
Back Months
In the discourse of futures and options trading,it refers to the months of contracts with expiration dates utmost away.
Back Office
Brokerage house clerical operations that not necessarily include but support, the trading of stocks and other securities. It includes the settlement of trades , written confirmation as well as regulatory compliance that happen here.
Back On The Shelf
It means, a permanently canceled order or interest in a stock by a customer.
Back Pricing
It is fixing of the price of a commodity for which the commitment to purchase has been particularly made in advance. The buyer using the futures markets can fixed the price relative to any monthly or periodic delivery.
Back Spread
A spread in which there are more options bought than sold. If volatility increases then it will be more profitable.
Back Taxes
They are the Due taxes that have not been paid on time.
Back Up
FOR THE MARKET : when bond yields rise and prices fall. FOR THE INVESTOR: who swaps one security with another of shorter current maturity.
Back-end Load Fund
The formal name is the contingent deferred sales charge, or CDSC.it is a mutual fund. It charges a fee to investors from 4% to 6% to sell (redeem) shares. Some of these funds impose a full commission if the shares are redeemed within a specific time, as one year , the longer the investor holds the shares The commission decreases.
Back-testing
it refers to creating a hypothetical portfolio performance history by applying current asset selection criteria to prior time periods.
Back-to-back Financing
An inter-company loan that is channeled through a bank.
Back-to-back Loan
A loan where two companies of separate countries can borrow each others currency for a particular time period and repay at an agreed-upon maturity,the others currency.
Backdating
In the context of use of mutual funds, a feature allowing fundraisers to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge.
Backed In
it is the result of unanticipated events that allowed for a purchase at a discount or a sale at a premium.
BACS payment
BACS stands for Bankers Automated Clearing System a system for sending electronically money between banks.
Backup Line
A commercial paper of issuer's bank line of credit covering maturing notes if, to, sell new notes when to cover the maturing notes is not possible
Backup Line Of Credit
An issuer of commercial paper obtains a bank assurance of funds to protect the CP investor from default .For this the issuer pays a commitment fee to the bank.
Backwardation
A condition of the market in which futures prices are lower in the far delivery months than in the nearest delivery month. it occurs when the costs of storing the product until eventual delivery are effectively subtracted from the price today .
Bad Debt
A debt which is deemed uncollectible and written off.
Bad Delivery
Opposite of good delivery.
Bad Title
Used in the context of real estate Title to property that does not clearly bestow ownership.
Bai-kai
A Japanese terminology mainly applies to international equities.it is two-sided market picture.
Bailing Out
1.It refers to selling a security or commodity quickly, no matter what is the price 2.It is done when an investor wishes no longer to sustain further losses on a stock. 3.It relieves of financial trouble any individual, corporation, or government entity.
Bail
A person is given bail,when they are let out of prison until their court case. one has to pay, or promises to pay, a value of money as a condition of granted bail.
Bailee
He is the person or organization who looks after valuable items to keep them safe.
Bailiff
he is an officer of the court. He carries out the court's orders, such as taking goods belonging to a debtor and selling them to get money to pay the debts, can also personally deliver (serve) court documents on people.
Bailment
it transfers possession of goods not ownership from the owner to someone else.
Bailor
he is the owner of valuable items who are in the possession of another person or organisation for safekeeping.
Bailout Bond
A bond issued to save the failing savings and loan associations by the Resolution Funding Corporation.
Baker Plan
A plan under which 15 principal middle-income debtor countries would undertake growth-oriented structural reforms, and would be supported by increased financing from the World Bank and will continue lending from commercial banks.
Balance Of Payments
formulated by a sovereign nation of economic transactions between residents of that nation and residents of all other nations during a specific period of time.
Balance Of Trade
It is the net flow of goods between two countries.In simpler terms it is exports minus imports.
Balance On Goods And Services
It is known as Trade Balance. It is Net of transaction balances, the net amount of payments of interest and dividends to the foreign investors and investments, and receipts and payments that results from international tourism.
Balance Sheet
It is a summary of a company's assets, liabilities, and owners' equity.It is the statement of financial condition of the enterprise.
Balance Sheet Exposure
Balance Sheet Identity
it is Total assets = Total liabilities + Total equity.
Balanced Budget the income equals expenditure
Balanced Fund
An investment company that invests both in stocks and bonds .
Balanced Mutual Fund
It is a fund that purchases common stock, preferred stock, and bonds .
Balloon Interest
In the context of use of the serial bond issues, the elevated coupon rate on bonds with late maturities.
Balloon Maturity
With or without a sinking fund requirement,It is any large principal payment due at maturity for a bond or loan .
Balloon Note
it ia a loan for periodic payments that are deficient to fully amortize the face amount of the note prior to its maturity,for that a principal sum is due at maturity known as a "balloon".
Balloon Payment
Ballot
The document which are distributed at the annual meeting to the shareholders of record who wishes to vote their shares in person.
BAM
The Convertible Mark currency code for Bosnia & Herzegovinan.
Bank
A financial institution that accepts deposits, pays, processes, or transacts checks or other deposit accounts and performs financial services for the public, in the normal course of its business operations.
Bank Anticipation Notes (BAN)
these are the Notes that are issued by states and municipalities through the sale of a bond issue so as to obtain interim financing for projects that will get funded in long term.
Bank Collection Float
The time that lapses when a cheque is deposited into a bank account and when the funds are available to the depositor, during which period the bank collects payment from the payer's bank.
Bank Discount Basis
A convention based on a 360-day year. That is used for quoting bids and offers in terms of annualized yield for Treasury bills in .
Bank Draft
A draft self-addressed to a bank.
Bank For International Settlements (BIS)
headquartered in Basel, Switzerland, that serves as a forum for monetary cooperation and, now monitors and collects data on international banking activity and proclaim rules concerning international bank regulation.
Bank Holding Company
A company which owns or has controlling interest banks and bank holding companies.
Bank Insurance Fund (BIF)
It is a unit of the Federal Deposit Insurance Corporation (FDIC) that provides deposit insurance for banks .
Bank Investment Contract (BIC)
the Interest guaranteed by the bank in a portfolio within a specific time frame and yield.
Bank Letter Of Credit Policy
the standards that gives power to banks to confirm letters supporting the purchase of US exports of credit by foreign banks .
Bank Line
it is a Line of credit that a bank aid to a customer.
Bank Note
also called as paper money or currency issued by a bank Notes are, in effect,that promise to pay the bearer on demand the amount which is stated on the face of the note , only the Federal Reserve Banks are accredited to issue bank notes.
Bank Regulation
The preparation and issuing of specific regulations, by authorized agencies under governing law, for the activity and structure of banking.
Bank Run (bank Panic)
A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence A fear that the bank faces when many depositors withdraw cash almost simultaneously. Because of which there is depleion in available cash and the bank might get close .
Bank Trust Department
this deals with estates, administers trusts, and provides service to its clients.
Bank Wire
A computer message system that links major banks.they are used not for effecting payments,a mechanism that has occurred to advise the receiving bank of some action .
Bank-based Corporate Governance System
this is Organization of a supervisory board so that it is controlled by bankers and corporate insiders.
Banker's Acceptance (Draft Or Bill)
A draft or bill of exchange where the accepting institution guarantees payment. It is widely accepted by a bank.it is Used in foreign trade transactions.
Banker's Acceptance (Investment)
A short-term credit investment that is created by a nonfinancial firm and guaranteed by a bank for payment Acceptances are traded at discounts to the face value in the secondary market .
Banking Delay
Within the banking system ,the time required for processing and clearing of a cheque.
Bankmail
An agreement between a company and a bank engaged in a takeover bid stating the bank would not finance the bid of another acquirer.
Bankruptcy
If a person is unable to pay their debts when they are due to be paid, he may issue a bankruptcy order against them. This takes ownership of the debtor's property away from the debtor and allows much of the property to be sold. The money upraised is divided between the creditors.
Bankruptcy Cost View
The argument which is expected indirect and direct bankruptcy costs so as to offset the other benefits from leverage in order that the optimal amount of leverage should be less than 100% debt financing.
Bankruptcy Risk
Also referred to as default or insolvency .risk that a firm bears when it is unable to meet its debt obligations .
Bankruptcy View
the expected bankruptcy costs that prevents firms from financing fully with debt.
BAR
Builders' All Risk.
Barbell Strategy
A strategy of fixed income in which the maturities of the securities included in the portfolio are focused at two extremes.
Barefoot Investor
An australian radio program that focuses on teaching financial literacy to young people.
Bare trustee
he holds the property on trust for another person until someone asked them to return the property.
Barefoot Pilgrim
An investor who loses everything on the stock market, should not get confused with the Barefoot Investor.
Bargain Hunter
the purchasers,who are selective of the price on a particular transaction.
Bargain-purchase-price Option
it gives the option to the lessee to purchase the asset at a price below fair market value.
Barometer
it is Economic and market data that represents an overall trend.
BARRA's Performance Analysis (PERFAN)
A method commonly used to evaluate their money managers' performance, by institutional investors applying performance attribution analysis.
Barron's Confidence Index
it is the Index that measures the ratio of the average yield on 10 top-grade bonds to the average yield on 10 intermediate-grade bonds. There is disagreement between high-rated top-grade bonds and low-rated bond yields that establishes a measure which is indicative of confidence of investor.
Barter
The exchange of goods or services without use of currency.
Base
A technical analysis tool ,a chart pattern which depicts the period when the supply and demand of a certain stock are in relative equilibrium, that results in a narrow trading range .
Base Currency
It applies to the international equities in Currency from operating an international portfolio that results in gains or losses are measured.
Base Interest Rate
It is the Benchmark interest rate.
Base Market Value
It is used for the indexing.The average market price of a group of securities at a specific time.
Base Period
A particular period of time used for comparison purposes when measuring economic data.
Base Probability Of Loss
The probability of not being able to achieve a portfolio expected return and Value at risk which is in relation .
Base Rate
it is British equal to that of US prime rate
. Basel Accord
They are the agreement to develop the standardized risk-based capital requirements for banks across countries.
Basic Balance
in the balance of payments, the basic balance is the combination of the current account and the capital account
Basic Business Strategies
these are the key strategies of a firm that are intended to carryout their business plan.
Basic IRR Rule
For the project valuation.
1. if the IRR is higher than the discount rate then accept the project
2. if it is lower than the discount rate then reject the project.
Basis
The price that an investor pays for a security plus any extra expenses which are out-of-pocket expenses and to determine the capital gains or losses for the tax purposes, when the particular stock is sold for a futures contract, the difference between the cash price and the futures price is observed in the market.
Basis Grade
for a futures contract,the grade of a commodity which is used as the standard or par grade.
Basis Point
In the bond market, the smallest measure that is used for quoting yields . every percentage point of yield in bonds equals to 100 basis points. these are used for interest rates. An interest rate of 5% is 50 basis points higher than an interest rate of 45% .
Basis Price
the Price that is expressed in terms of yield to maturity or annual rate of return.
Basis Quote
the Offer or sale of a cash commodity that are in terms of the difference above or below a futures price (eg, 10 cents over December corn).
Basis Risk
these are the Unexpected changes in the basis between the placing and the lifting of a hedge. It is always in excess of convergence.
Basis Swap
this is An interest rate swap where the both legs are floating,and are linked to different index tenors. these can be on the same index at different tenors,for eg. 3 month LIBOR versus 6 month LIBOR; and on the same or different tenors on different indexes.
Basket
it Applies to derivative products.these are the Group of stocks that are formed with the intention of either being bought or sold all at once,they are to perform index arbitrage or a hedging program.
Basket Options
Packages that involve the exchange of more than two currencies against a base currency at expiration The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange Multinational corporations with multicurrency cash flows frequently use basket options.
Basket Trades
it is Related to Program trades.
BB
The country code for BARBADOS;ISO 3166.
BBD
The currency code for Barbadian Dollar;ISO 4217 .
BD
The country code for BANGLADESH; ISO 3166.
BD Form
An SEC document that requires brokerage houses which outlines the firm's finances and officers.
BDS Statistic
A statistic that is based upon the correlation integral and it examines the probability that a purely random system as the system under study could have the same scaling properties.
BDT
The currency code for Bangladeshi Taka currency;ISO 4217 .
BE
The country code for BELGIUM;ISO 3166.
BEACON
it stands Boston Exchange Automated Communication Order-Routing Network.
Bear
A person who is in expectation that share prices might fall in the future and sells shares now so that he can buy them later at a lower price.
Bear CD
it pays the holder a fraction of any fall in a particular given market index.
Bear Hug
it is used in risk arbitrage.
It is an Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to as to squeeze the target into acceptance.
Bear Market
it is Any market where prices exhibit a declining trend For a extended period, it is falling by 20% or more.
Bear Market Rally
A impermanent rise in prices during a bear market .
Bear Raid
it is an attempt by investors to move the price of a stock timeserving by selling short large numbers of shares. The investors pockets the difference between the initial price and the new price, lower price after this maneuver. Under sec rules This technique is illegal , that stipulate that every short sale must be on an uptick.
Bear Spread
it Applies to derivative products.it is a Strategy where the options or futures markets are designed to take advantage of a fall in the price of a security or commodity.
It is created with call options is created by buying a call option with a certain strike price Selling of a call option on the same stock with a lower strike price with the same expiration date. A bear spread with put options is where an investor buys a put with a high strike price and sells a put with a low strike price With futures, the investor sells the nearby contract and purchases the next out contract All of these strategies are designed to profit from a fall in the underlying asset's price.
Bear Trap
The predicament which is faced by short sellers when a bear market reverses its trend and then becomes bullish. The assets continue to sell in expectation of further declines in price, and the short sellers are forced to cover it at higher prices.
Bear Vertical Spread
Bear Spread.
Bearer Bond
these are the Bonds that are not registered on the books of the issuer .these bonds are held in physical form by the owner, who then receives interest payments by physically detaching coupons from the bond certificate and finally delivering them to the paying agent.
Bearer Form
these Describes issue form of security which are not registered on the issuing corporation's books, and hence payable to its bearer.
Bearer Share
it is the Security that is not registered on the books of the issuance corporation and payable to possessor of the shares.it is then Applies to international equities. It is Negotiable without endorsement and transferred by delivery, that avoides some of the control associated with ordinary shares Dividends are payable upon presentation of dividend coupons, which are dated or numbered.
Bearer Shares
these are offshore financial secrecy jurisdictions that permit the issuance of bearer shares by corporations chartered in their jurisdiction .The bearer has the share certificates which implies that he is the owner of the shares he knows that he/she owns stock in the offshore corporation. hence, the ownership of this offshore corporation (IBC) remains private.the shares must be bought, sold, or exchanged in complete privacy.
Bearish
BEARS
it stands for Bonds Enabling Annual Retirement Savings (BEARS)
Beating The Gun
it means , to gain an advantageous price in a trade through with a quick response with the market developments.
BEF
The currency code for Belgian Franc ;ISO 4217.
Before-tax Contributions
they are portion of an employee's salary which are contributed to a retirement plan before the federal income taxes are deducted and hence reduces the individual's gross income for federal tax purposes.
Before-tax Profit Margin
this is defined as The ratio of the net income before taxes to the net sales.
Beggar-thy-neighbor
this is An international trade policy of competitive devaluations which has then increased protective barriers in one country institutes finally to gain at the expense of its trading partners.
Beggar-thy-neighbor Devaluation
A devaluation that is designed to cheapen a nation's currency and thereby increase its exports at the expense of other countries it can also reduce a nation's imports Such devaluations often lead to trade wars.
Behind
it is Used for listed equity securities .it is At the same price but entered after your order/interest, such as on the specialist's book.it is Antithesis of ahead of you.
Bell
the Signal that indicates the open and close of trading on a stock exchange .
Bellwether Issues
it is related to Benchmark issues.
Below Par
It is Less than the nominal or face value of a security.
Benchmark
this is The performance of a planned set of securities, that are used for comparison purposes. these sets may be based on published indexes or may be customized to suit for an investment strategy.
Benchmark Error
this is the Use of an inappropriate proxy that is for the true market portfolio.
Benchmark Interest Rate
the base interest rate, which is the minimum interest rate that the investors will demand for investing in a non-Treasury security. It is tied to the yield to maturity that is offered on the comparable-maturity treasury security that was most recently issued that is on the run.
Benchmark Issue
these are on-the-run or current-coupon issue or bellwether issue In the secondary market,it is the recently auctioned .
Beneath
these are Used for listed equity securities Behind and Lower in price
Beneficial Owner
these are used for most purposes under the federal securities laws. A good owner of stock is any person or entity with sole or shared power to vote or dispose of the stock .This SEC is intentional to include a holder who then enjoys the benefits of ownership although the shares may be held in another name.
Beneficial Ownership
these are used in risk arbitrage . a Person who enjoys the benefits of ownership even though the title is in another name.
Beneficiary
this is the Term that is used to refer to the person who then receives the benefits of a trust or the recipient of the proceeds of a life insurance policy.
Benefits Received
this is A concept of tax fairness that states that the people should pay taxes in proportion to the benefits they had receive from the government goods and services.
Bequest
this is the Property that is left to an heir under the terms of a will.
Best Efforts
these are the efforts of A high standard of undertaking, but however excusable in the event of a force majeure.
Best's Rating
this is the rating that AM Best Co assigns to insurance companies which are based on the company's ability to meet its oblige to its policyholders.
Best-efforts Sale
A method of securities underwriting in which the securities firm agrees to sell as much of the offering as possible and return any unsold shares to the issue. It is as opposed to a guaranteed or fixed-price sale or bought deal, in which the underwriter agrees to sell a specific number of shares (and holds any unsold shares in its own account if necessary)
Best-interests-of-creditors Test
The requirement of a claim holder that is voting against a plan of reorganization.they must receive at least as much as if the debtors were neutralize.
Beta
it is defined as The measure of a asset's risk with relation to the market.beta represents the type of risk, systematic risk, that will not be diversified away When using beta, you must be aware of
(1) betas varies change with time.
(2) betas might be different depending on the direction of the market I.e. they may be greater for down moves in the market rather than up moves.
(3) the approximate beta may be biased if the security does not frequently trade.
(4) it is not necessarily a complete measure of risk you may need multiple betas.it is a measure of comovement, not volatility. It is possible for a security to have a zero beta and it has higher volatility than the market.
Beta (Beta Coefficient)
it is A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market, it is used as a measure of riskiness.
Beta Equation (security)
it is determined as follows Regress excess returns of stock y on excess returns of the market .The slope coefficient is beta.
Beta=
((n) (sum of [xy]) ]-[ (sum of x) (sum of y))/
((n) (sum of [xx]) ]-[ (sum of x) (sum of x))
n = no. of observations (usually 36 to 60 months)
x means rate of return for the S&P 500 index
y means rate of return for the security
BF
The country code for BURKINA FASO; ISO 3166
BG
The country code for BULGARIA ;ISO 3166.
BGL
The pre-July currency code for Bulgarian Lev; ISO 4217.
BGN
The current currency code for Bulgarian Lev ;ISO 4217 .
BH
The country code for BAHRAIN;ISO 3166.
BHD
The currency code for Bahrainian Dinar;ISO 4217.
BI
The two-character ISO 3166 country code for BURUNDI
Bi-weekly Mortgage Loan
this is A mortgage loan on which interest and principal payments are made every half-month which means that a total of 26 payments that is opposed to monthly payments. This had results in earlier loan retirement.
Biased Expectations Theories
this is Related to the Pure expectations theory.
BIC
Bank Investment Contract.
Bid
The price that a potential buyer wishes to pay for a security.this is also used in the context of takeovers where one corporation is bidding for another corporation .
In trading,in terms of price
we have the bid-ask spread which is the difference between what the buyers are willing to pay and what the sellers are asking for .
Bid Away
it Refers to the over-the-counter trading Bid from another dealer that exists at the same or higher over the counter price.
Bid Bond
it is once the contract is awarded,A bid performance bond that consists of a small percentage (1-3%) of the tender contract price, which is refunded to losers .
Bid Price
it is the quoted bid, or normally the highest price an investor is wishes to pay to buy a security . this is the available price at which an investor may sell shares of stock .
Bid Wanted
it is Used in the context of general equities .the Proclamation that a holder of securities wishes to sell and will entertain bids.
Bid-asked Spread
this is The difference between bid and asked prices.
Bid-to-cover Ratio
this is The ratio of the number of bids that are received in a Treasury security auction as compared to the number of accepted bids.
Bidder
he is A firm or a person who wants to buy a firm or security.
Bidding Buyer
he is, a nonaggressive buyer who prefers to expect a natural seller in the hope of paying a lower price.
Bidding Through The Market
the assertive willingness to buy a security at a premium to the inside market.it is Contrasted with bidding buyer.
Bidding Up
it is Moving the bid price high.
BIF
Bank Insurance Fund.
Bifurcation
it happens When a non-linear dynamic system develops twice the possible solutions that it had been before it is passed at its critical level .A bifurcation cascade is when the period is doubling route to chaos because the transition from an orderly system to a chaotic system that are often occurs when the number of possible solutions begins increasing, doubling each time.
Bifurcation Diagram
it is A graph that shows at the critical points where bifurcation occurs, and all the possible solution existing at that point.
Big Bang
This is the term applied to the liberalization in 1986 of the London Stock Exchange (LSE) when the trading was automatic.
Big Board
the New York Stock Exchange (NYSE) ;known as The Exchange for More than 2,000 common and preferred stocks that are traded.it is the largest located in Wall Street in New York City.
Big Picture
it is To highlight the trading interest which is due to the size of the trade.
Big Producer
he is A successful broker who then generates a large volume of commission .
Big Uglies
this is Unpopular stocks.
Bilateral Netting
this is the combining of swap agreements between two counterparties into one master agreement. The result is that if one counterparty bankrupts, that counterparty cannot seek to collect on any swaps which are in-the-money to them while at the same time refuses to pay out on any that are out-of-the-money .Instead, the master agreement sets out all that in this event when all swaps between the two counterparties will be netted; only then will the bankrupt company receive money, and only if they are net in-the-money.
Bill Of Exchange
this is the General term for a document which demands payment.
Bill Of Lading
it is A contract between an exporter and a transportation company in which the latter had agreed to transport the goods under specified conditions that the limit of its liability. It is the exporter's receipt for the goods as well as proof that goods have been or will be received.
Billing Cycle
The time lapse between billing periods for goods sold or services rendered.
Binder
It is a value of money which is paid to indicate good faith in a transaction before the transaction gets completed.
Binomial Option Pricing Model
it is An option pricing model in which the underlying asset that can assume one of only two possible, it has discrete values in the next time period for each value that it can take on in the foregoing time period.
Binomial Option Tree
this is an Option Pricing method that assumes the price of the underlying can go up or down by fixed multiples. Each price jump is allotted a probability and a tree of possible underlying prices is built. The Working from the tree points or nodes at an option maturity date, the worth of the option can be backed and calculated until the option can be valued at the desired date.
BIPS
Basis point.
BIS
Bank for International Settlements.
BJ
The country code for BENIN; ISO 3166.
Black Friday
it was A abrupt drop in a financial market. The original Black Friday happen on September 24, 1869, when the prospectors attempted to corner the gold market.
Black Market
it is An illegal market.
Black Monday
it Refers to October 19, 1987, when the Dow Jones Industrial Average fell historically by 508 points on the heels of sharp drops .the previous week On , October 27, 1997,monday, the Dow dropped to 554 points.
Black-Scholes Equation
It is An analytical option pricing formula which is used to price European options on non-dividend paying equity.
Black-Scholes Option-pricing Model
it is A model for pricing call options that is based on arbitrage arguments.it Uses the stock price, the exercise price, the risk-free interest rate, the time for expiration, and the expected standard deviation of the stock return .
Blackboard Trading
This is the practice, that is no longer in use, of buying and selling commodities by posting prices on a blackboard on the wall of a commodity exchange .
Black-Scholes Model
This is An option pricing model which was developed by Fischer Black and Myron Scholes for the securities options and later refined by Black for options on futures.
Blank Check
A cheque which is duly signed, but the value of the cheque is left blank that is to be supplied by the drawee.
Blank Check Offering
it is An initial public that is offered by a company whose business activities are undefined and hence speculative.
Blank Check Preferred Stock
This is the stock over for which the board of directors has broad authority and it is to determine voting, dividend, conversion, and other rights. it can be for a company to meet changing financial needs, and to implement poison pills or to prevent takeovers by placement of this stock with friendly investors.
Blanket Certification Form
NASD form FR-1.
Blanket Fidelity Bond
it is SEC-required insurance coverage which brokerage firms are required to cover fraudulent trading by its employees.
Blanket Inventory Lien
it is A secured loan which gives the lender a lien against all the borrower's inventories.
Blanket Mortgage
A mortgag e which covers minimum two pieces of real estate as collateral for the same mortgage.
Blanket Recommendation
it is A recommendation by a brokerage firm that is sent to all its customers which advises that they buy or sell a stock irrespective of investment objectives or portfolio size.
Blind Pool
it is A limited partnership that does not inform its intentions asto what properties will be acquired.
Blind Trust
it is A trust where a fiduciary third party decides for total discretion to make investments on the behalf of a beneficiary while he is uninformed about the holdings of the trust.
Blitzkrieg Tender Offer
In takeover, it is a tender offerwhich is priced so attractively that the tender is completed quickly.
Block
it is a Large quantity of stock of bonds held or traded .As a rule of thumb, 10,000 shares or more of stock would be represented as a block.
Block Call
In general equities, the conference meeting during which customer indications and orders, along with the traders' own buy/sell preferences, are then conveyed to the entire organization.
Block House
it is the Brokerage firms that helps to find the potential buyers or sellers of large block trades.
Block List
In the general equities,the listing of stock the investment bank is looking for either wants to buy or wants to sell at the beginning of the day, whether on an agency or principal basis.
Block Trade
it is A large trading order,which is defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or at a total market value of $200,000 or more.
Block Trader
he is A dealer who takes a position in the block trades to accommodate customer buyers and sellers of blocks.
Block Voting
it Describes a group of shareholders that is banding together to vote their shares into a single block.
Blocked Currency
A currency which is not freely convertible to other currencies because of exchange controls.
Blocked Funds
these are the Cash flows that are generated by a foreign project that cannot be immediately extradite to the parent firm because of the capital flow restrictions that are imposed by the host government.
Blow-off Top
this is A steep increase in price followed by a steep and rapid drop. an indicator seen in charts and is used for technical analysis of stock price and market trends.
Blowout
The sale of shares in a new securities offering
Blue Chip Stocks
the Common stock of well-known companies with a history of growth and dividend payments.
Blue List
the Daily financial publication features bonds offered for sale by dealers and banks which represent billions of dollars in par value .
Blue-chip Company
Used in general equities .the Large and creditworthy a company is renowned for the quality and the wide acceptance of its products or services, and the ability to make money and pay dividends.
Blue-sky Laws
it is the State laws covering the issue and trading of securities.
BM
The two-character country code for BERMUDA;ISO 3166.
BMD
The currency code for Bermudan Dollar;ISO 4217.
BN
The country code for BRUNEI DARUSSALAM; ISO 3166.
BND
The currency code for Brunei Darussalam Dollar;ISO 4217.
BO
The two-character country code for BOLIVIA;ISO 3166 .
Bo Derek Stock
this is High quality stock.
Board Broker
the Employee of the Chicago Board Options Exchange who manages away from the market orders,that cannot be executed immediately.
Board Of Directors
the Individuals who are elected by the shareholders of a corporation who carries out certain tasks constituted in the charter.
Board Of Governors Of The Federal Reserve System
The managing body that sets policies on the bank practices and the money supply.
Board Of Trade
the organized exchange or other trading facility for the trading of futures and option contracts.
Board Order
Market-if-Touched Order.
Board Room
it is A room at a brokerage firm where its clients can watch an electronic board that displaying stock prices and transactions .
BOB
The currency code for Bolivian Boliviano; ISO 4217.
Bogey
The return that an investment manager is compared to for performance evaluation.
Boiler Room
it is Used to describe place or operation where unscrupulous sales people call and try to sell people speculative, even the fraudulent securities.
Boilerplate
these are the Standard terms and conditions.
Bollinger Bands
it is the Plus or minus of two standard deviations where all the standard deviations are calculated in a moving window estimation. therefore, the bands will widen if the most recent data is more volatile If the prices break out of the band.
Bolsa
it is a Spanish for stock exchange.
Bolsa De Commercio De Santiago (SSE)
the Chile's permanent stock exchange.
Bolsa De Valores De Rio De Janeiro (BVRJ) t
he second-largest stock exchange of Brazil.
Bolsa De Valores De Sao Paulo (BOVESPA)
the largest stock exchange of Brazil.
Bolt
it is Used for listed equity securities.it is the Block trading version of COLT.
Bombay Stock Exchange (BSE)
Bon Voyage Bonus
Greenmail
Bond
Bond Agreement
A written agreement that is for privately placed debt.
Bond Anticipation Note (BAN)
it is A short-term debt instrument that is issued by a state or municipality so as to borrow against the proceeds of an upcoming bond issue.
Bond Broker
it is A broker on the floor of an exchange or in the over-the-counter market (OTC) who specialises in trades bonds.
Bond Buyer
A daily publication that features many essential statistics and index figures important to the fixed income markets.
Bond Buyer's Municipal Bond Index
A municipal bond price tracking index that is published daily by the Bond Buyer.
Bond Counsel
he is An attorney who prepares for the legal opinion which is concerning a municipal bond issue.
Bond Covenant
it is A contractual provision in a bond indenture .
A positive covenant certain actions, and a negative covenant limits certain actions.
Bond Crowd
they are the Members of the stock exchange who transact the bond orders on the floor of the exchange.
Bond Discount
this is The difference by which a bond's market price is lower than its face value The opposite of a bond premium, which prevails when the market price of a bond is higher than its face value.
Bond Equivalent Yield
it is calculated on an annual percentage rate method.it Differs from annual effective yield.
Bond Fund
A mutual fund that by investing in corporate, municipal, or US government debt obligations, emphasizes income consistent with risk, rather than growth .
Bond Indenture
a Contract that sets forth the promises of a bond issuer and the rights of investors.
Bond Indexing
it is Designing of a bond portfolio so that its performance will match the performance of some bond index.
Bond Market Association
An international trade association of broker/dealers and banks in US government and federal agency securities, municipal securities, mortgage-backed securities, and money market securities
Bond Mutual Fund
A mutual fund that primarily or exclusively holds bonds.
Bond Of Indemnity
it is An insurance policy which indemnifies the corporation, the shareholder and the Transfer Agent against any and all claims arising from the replacement by the Transfer Agent of certificates lost or stolen.
Bond Points
it is A unit of measure for thre bond prices which are set at $1 and is equivalent to 1% of the $100 face value of the bond. A price of 80 implies that the bond will sell at 80% of its face or par value.
Bond Power
A form which is used in the transfer of registered bonds from one owner to a other owner.
Bond Premium
Bond discount.
Bond Rating
this is the rating which is based on the possibility of default by a bond issuer .it ranges from AAA (highly unlikely to default) to D (in default) .
Bond Ratio
The percentage that a company's capitalization represented by bonds The ratio is hence calculated by dividing the total bonds due after one year by that same figure plus all equity.
Bond Swap
this is The sale of one bond issue and purchase of another bond issue at the same time.
Bond Value
in convertible bonds, the value of the security if it were not convertible.it is the market value of the bond minus the value of the conversion option.
Bond-equivalent Basis
This is the method used for computing the bond-equivalent yield.
Bondholder
In times of liquidation, the bondholders gets first priority.
BONDPAR
A system which monitors and evaluates the performance of a fixed income portfolio, as well as the individual securities that are held in the portfolio It decomposes the return into the elements beyond the manager's control.
Bonds Enabling Annual Retirement Savings (BEARS)
they are the Holders that receive the face value of the bonds underlying the call option, which is exercised by CUBS when exercised by CUBS, these are the holders that receive the total of the exercise price.
Boning
it Charges a lot more for an asset than its worth.
Bonus
the Compensation received by an employee for services performed .it is A bonus is given in addition to an employee's usual compensation.
Book
it is A banker or trader's positions.
Book Cash
the firm's cash balance as is reported in its financial statements ;called ledger cash.
Book Profit
these are The cumulative book income plus any gain or loss on the temperament of assets.
Book Runner
The managing underwriter for a new issue The book runner which maintains the book of securities sold.
Book To Bill
This is the ratio of orders taken booked to products shipped and bills sent . This measures whether the company will have more orders than it can deliver taht is (>1), or equal amounts (=1), or less (<1) it is of significant interest to investors/ traders in the high-technology sector
Book To Market
it is The ratio of book value to market value of equity .
Book Transfer
this is the series of accounting or bookkeeping entries that is used for settling a series of cash market transactions.
Book Value
these are the company's total assets minus intangible assets and liabilities, such as debt.
Book Value Per Share
The ratio of stockholder equity to the average number of common shares Book value per share should not be thought of as an indicator of economic worth, since it reflects accounting valuation (and not necessarily market valuation).
Book-Entry
Registered ownership of stock without the issuance of a corresponding stock certificate, as is the case with dividend reinvestment and direct purchase plans, employee plans and Direct Registration System issuances Periodic statements of ownership are issued instead of certificates.
Book-entry Securities
Securities which are not represented by paper certificates but are maintained in computerized records at the Fed in the names of member banks, which in turn keep computer records of the securities they own as well as those they are holding for customers In the case of other securities where a book-entry has developed, certificates reside in a central clearinghouse or are held by another agent These securities do not move from holder to holder.
Booking The Basis
A forward pricing sales arrangement in which the cash price is determined either by the buyer or seller within a specified time At that time, the previously-agreed basis is applied to the then-current futures quotation.
Bootstrap
Term used to describe the start-up of a company with very little capital.
Bootstrapping
Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity Bootstrapping follows the work of Efron It involves a Monte Carlo approach.
Borrow
To obtain or receive money on loan with the promise or understanding that it will be repaid.
Borrowed Reserves
Funds borrowed from a Federal Reserve Bank by member banks to maintain the required reserve ratios.
Borrower Fallout
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be closed will elect to withdraw from the contract.
Boston Exchange Automated Communication Order-Routing Network (BEACON)
This system permits the automatic execution of trades based on the current stock prices on the consolidated markets at any of the US securities exchanges.
BOT
See Build Own Transfer.
Bottom
Refers to the base support level for market prices of any type Also used in the context of securities to refer to the lowest market price of a security during a specific time-frame.
Bottom Fisher
An investor seeking stocks that have fallen to prices at or near their bottom, which he or she believes will trend up in the future.
Bottom-up Equity Management Style
A management style that de-emphasizes the significance of economic and market cycles, focusing instead on the analysis of individual stocks.
Bottomline Growth
Growth in net profit .
Bought Deal
Security issue in which one or two underwriters buy the entire issue Also known as a guaranteed or fixed-price sale; opposite of a best-efforts sale.
Bounce
it is A cheque which is returned by a bank because it is not payable, because of insufficient funds.it is used for securities and it refers the rejection and ensuing reclamation of a security that a stock price's abrupt decline and recovery.
Bourse
a French word for a stock market.
Boutique
it is A small, specialized brokerage firm which offers limited services and products to a limited number of clients .it is the opposite of financial supermarket.
Box The
physical location at a brokerage house or bank where the securities or other documents are stored for safekeeping.
BPS
Basis point.
BR
The two-character country code for BRAZIL;ISO 3166.
Bracket
this is A term in a new issue signifying the extent of an underwriter's commitment.
Bracket Creep
The gradual movement into higher tax brackets when the incomes increase as a result of inflation.
Brady Bonds
the Bonds that are issued by emerging countries under a debt reduction plan.
Branch
this is An operation in a foreign country incorporated in the home country.
Branch Breakup
A resolution strategy that provides bidders with the choice of bidding on the entire franchise or on individual or groups of branches of the failing institution .
Breadth
The percentage of assets or stocks that is progressive in relation to those unchanged or declining.
Breadth Of The Market
In the general equities, the percentage of stocks that is participating in a particular market move .the Technical analysts say there was significant breadth if two-thirds of the stocks that are listed on an exchange move in the same direction during a trading session .
Break
it is A rapid and sharp price which is in decline to Related Crash.
Break Even
this is The reduction of a project's net cash flow to zero by changing an input variable such as price or costs.
Break Price
Used in the general equities.one can Change one's offering or bid prices to move to a more realistic, tight level where the execution is more feasible.
Break-even Lease Payment
The lease payment which is indifferent between entering and not entering into a lease arrangement and in which a partyhas to a prospective lease.
Break-even Payment Rate
The prepayment rate of that produces the same cash flow yield (CFY) as that of a predetermined benchmark .
Break-even Point
it is the price at which a transaction that produces neither a gain nor a loss.
Break-even Tax Rate
The tax rate at which the party to the prospective transaction is unconcerned between entering into and not entering into the transaction.
Break-even Time
it is Related to Premium payback period.
Breaking The Syndicate
the termination of an agreement among the underwriters,which is particularly in the investment banking group assembled to underwrite the issue of a security.
Breakpoint
the point at which the amount invested reduces the sales charge is called the "breakpoint" For mutual funds.
Breakpoint Sale
For mutual funds, this is request mutual fund that purchases just below the breakpoint .This is considered unethical and is considered as the violation of NASD rules.
Breakup Value
Private market value.
Breeden, Douglas T
he was an Inventor of one of the asset pricing models in finance, this is the consumption based capital asset pricing model .
Bretton Woods Agreement
it is An agreement which is signed by the original United Nations members in 1944 that had established the International Monetary Fund (IMF) and the post-World War II ims of fixed exchange rates.
Bridge Bank
this is the temporary national bank that is established and operated by the FDIC on an interim basis in order to acquire the assets and to assume the liabilities of a failed institution til final resolution can be found. it is limited to the situations where more time is needed to permit the least costly resolution.
Bridge Financing
this is the Interim financing of one sort or another which is used to solidify a position til more permanent financing is arranged.
Bridge Loan
this is A form of interim loan, which is generally made between a short-term loan and a permanent (long-term) loan, when the borrower needs some time before taking the long-term financing.
British Clearers
In the domestic sterling market, The large clearing banks which dominates deposit taking and short-term lending .
BRL
The currency code for Brazilian Real;ISO 4217.
BARRA's Performance Analysis (PERFAN)
A method commonly used to evaluate their money managers' performance, by institutional investors applying performance attribution analysis.
Barron's Confidence Index
it is the Index that measures the ratio of the average yield on 10 top-grade bonds to the average yield on 10 intermediate-grade bonds. There is disagreement between high-rated top-grade bonds and low-rated bond yields that establishes a measure which is indicative of confidence of investor.
Barter
The exchange of goods or services without use of currency.
Base
A technical analysis tool ,a chart pattern which depicts the period when the supply and demand of a certain stock are in relative equilibrium, that results in a narrow trading range .
Base Currency
It applies to the international equities in Currency from operating an international portfolio that results in gains or losses are measured.
Base Interest Rate
It is the Benchmark interest rate
Base Market Value
It is used for the indexing.The average market price of a group of securities at a specific time.
Base Period
A particular period of time used for comparison purposes when measuring economic data.
Base Probability Of Loss
The probability of not being able to achieve a portfolio expected return and Value at risk which is in relation .
Base Rate
it is British equal to that of US prime rate.
Basel Accord
They are the agreement to develop the standardized risk-based capital requirements for banks across countries.
Basic Balance
in the balance of payments, the basic balance is the combination of the current account and the capital account
Basic Business Strategies
these are the key strategies of a firm that are intended to carryout their business plan.
Basic IRR Rule
For the project valuation.
1. if the IRR is higher than the discount rate then accept the project
3. if it is lower than the discount rate then reject the project.
Basis
The price that an investor pays for a security plus any extra expenses which are out-of-pocket expenses and to determine the capital gains or losses for the tax purposes, when the particular stock is sold for a futures contract, the difference between the cash price and the futures price is observed in the market.
Basis Grade
for a futures contract,the grade of a commodity which is used as the standard or par grade.
Basis Point
In the bond market, the smallest measure that is used for quoting yields . every percentage point of yield in bonds equals to 100 basis points. these are used for interest rates. An interest rate of 5% is 50 basis points higher than an interest rate of 45% .
Basis Price
the Price that is expressed in terms of yield to maturity or annual rate of return.
Basis Quote
the Offer or sale of a cash commodity that are in terms of the difference above or below a futures price (eg, 10 cents over December corn).
Basis Risk
these are the Unexpected changes in the basis between the placing and the lifting of a hedge. It is always in excess of convergence.
Basis Swap
this is An interest rate swap where the both legs are floating,and are linked to different index tenors. these can be on the same index at different tenors,for eg. 3 month LIBOR versus 6 month LIBOR; and on the same or different tenors on different indexes.
Basket
it Applies to derivative products.these are the Group of stocks that are formed with the intention of either being bought or sold all at once,they are to perform index arbitrage or a hedging program.
Basket Options
Packages that involve the exchange of more than two currencies against a base currency at expiration The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange Multinational corporations with multicurrency cash flows frequently use basket options.
Basket Trades
it is Related to Program trades.
BB
The country code for BARBADOS;ISO 3166 .
BBD
The currency code for Barbadian Dollar;ISO 4217 .
BD
The country code for BANGLADESH; ISO 3166.
BD Form
An SEC document that requires brokerage houses which outlines the firm's finances and officers.
BDS Statistic
A statistic that is based upon the correlation integral and it examines the probability that a purely random system as the system under study could have the same scaling properties.
BDT
The currency code for Bangladeshi Taka currency;ISO 4217 .
BE
The country code for BELGIUM;ISO 3166.
BEACON
it stands Boston Exchange Automated Communication Order-Routing Network.
Bear
A person who is in expectation that share prices might fall in the future and sells shares now so that he can buy them later at a lower price.
Bear CD
it pays the holder a fraction of any fall in a particular given market index.
Bear Hug
it is used in risk arbitrage.
It is an Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to as to squeeze the target into acceptance.
Bear Market
it is Any market where prices exhibit a declining trend For a extended period, it is falling by 20% or more.
Bear Market Rally
A impermanent rise in prices during a bear market.
Bear Raid
it is an attempt by investors to move the price of a stock timeserving by selling short large numbers of shares. The investors pockets the difference between the initial price and the new price, lower price after this maneuver. Under sec rules This technique is illegal , that stipulate that every short sale must be on an uptick.
Bear Spread
it Applies to derivative products.it is a Strategy where the options or futures markets are designed to take advantage of a fall in the price of a security or commodity. It is created with call options is created by buying a call option with a certain strike price .
Broad-Based Security Index
Broad Market
they are the indices like Wilshire 5000 that track the performance of 5,000 securities, instead of more narrow measures such as the Dow Jones Industrial Average and the S&P 500.
Broad Tape
A version of the ticker tape, that is displayed on a screen in the board room of a brokerage firm and it shows constantly on the updated financial information and news.
Broad-Base
it refers to an index, which indicates composition of a sufficient number of stocks or of stocks in a variety of industry groups See also Narrow-Based.
Broken Up
it is Used for listed equity securities.it is Prevented from executing a trade in order to exchange priority rules excluding one's order.
Broker
he is An individual who is paid a commission for executing customer orders.
He is a floor broker who executes orders on the floor of the exchange.
an upstairs broker handles retail customers and their orders.
He is A person acting as an intermediary between buyer and seller, and charges a commission .
he then specializes in stocks, bonds, commodities, or options which acts as an agent and hence must be registered with the exchange where the securities are traded .Opposite of dealer
Broker Association
these are Two or more persons with exchange trading privileges who
1 shares responsibility for execute customer orders;
2 They have access to each other's unfilled customer orders as a result of common employment or other types of relationships;
3 share profits or losses that are associated with their brokerage or trading activity.
Broker Loan Rate
it is the interest rate charged to brokers who need funds to cover the margin loans that they have extended to their customers. These loans can be within short notice, that is 24 hours.
Broker-dealer
A person, who is , engaged in the buying or selling of securities on their own behalf or on the behalf of others.
Brokered CD
A certificate of deposit that is bought by a brokerage firm in bulk with the objective of reselling to the brokerage customers .
It features a usually 1% higher higher interest rate,insured by federal deposit insurance corporation and do not have commissions.
Brokered Market
In this kind of market,an intermediary offers search services to buyers and sellers.
Brokers' Loans
this is the Money borrowed by brokers from banks for commercial uses such as financing the following the specialists's inventories of stock, the underwriting of new issues of corporate and municipal securities, and customer margin accounts.
Brought Over The Wall
it is Compelling a research analyst of an investment bank to work in the underwriting department for a corporate client, hence allowing for the transmission of insider information. This is "Over the Chinese wall".
Brussels Stock Exchange (BSE)
this is a Stock exchange which handles the majority of securities transactions that takes place in Belgium.
BS
The two-character country code for BAHAMAS;ISO 3166
BSD
The currency code for Bahamas Dollar;ISO 4217
BT
The two-character country code for BHUTAN;ISO 3166
BTM
Book to market
BTN
The currency code for Bhutan Ngultrum ;ISO 4217
Bubble Theory
it is A theory under which security prices sometimes move wildly above their true values, or the price that falls sharply until the "bubble bursts".
It is possible for a bubble to deflate gradually
Buck
it is Slang for one million dollars.
Bucket Shop
An illegal brokerage firm that accepts customer orders but does not attain immediate executions.it promises that the customer a certain price, but waits until a price discrepancy is present and the trade is advantageous to the firm and then keeps the difference as profit.the broker may never fill the customer's order but keep the money.
Bucketing
it is Also called "trading against"
It Is Directly or indirectly taking the opposite side of a customer's order into a broker's own account or into an account in which a broker has an interest, without open and competitive execution of the order on an exchange.
Budapest Stock Exchange
it is Established in 1864, the major securities market.
Budget
A detailed schedule of financial activity, such as an advertising budget.
Budget Authority
it is a Broad responsibility that is conferred by Congress that empower government agencies to spend federal funds Congress can specified criteria for the spending of these funds.
The basic forms of budget authority are;
appropriations, authority to borrow, contract authority, and authority to obligate and expend offsetting receipts and collections.
The time period during which Congress makes funds available can be specified as one-year, multiple years or no year.
The available amount may be categorized as either definite or indefinite;
a specific amount or an unspecified amount can be made available
Authority can be classified as current or permanent .
Permanent authority does not requires no current action.
Budget Deficit
this is The value by which government spending exceeds the government revenues.
Budget Surplus
The amount by which government revenues exceed government spending
Buenos Aires Stock Exchange (Bolsa De Comercio De Buenos Aires)
Argentina's major securities market
Build A Book
develop customer orders to gather demand/supply in order to make a bid or an offer Also refers to a commissioned salesperson amassing a 'book' of regular clients
Build Own Transfer
The transfer of a project back to the party which grants the concession, either with or at no cost.
Builder Buydown Loan
this is a A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder then uses cash to buydown the mortgage rate to a lower level than the prevailing market loan rate for certain period of time. The buydown is 3% of the interest rate amount for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown.
Builders' All Risk
it is A standard construction insurance package
Bulge
A short-lived stock price increase.
Bulge Bracket
A grade of firms in an underwriting syndicate having the highest participation level
Bull
A person who buys shares now because they are in expectation that the price will rise in the future.so that they might sell the shares at a profit.
Bull CD
A bull CD pay to its holder a specified percentage of the increase in return when a specified market index while guaranting a minimum rate of return.
Bull Market
the market where prices are in an upward trend.
Bull-bear Bond
Bond where principal repayment is linked to the price of another security.
The bonds are issued in two portion In the first part repayment increases with price of the other security, and in the second part repayment decreases with the price of the other security
Bulldog Bond
they are the Foreign bond issue that are made in London.
Bulldog Market
a market in the United Kingdom.
Bullet
it is A one-time repayment, which are after little or no amortisation of the loan.
Bullet Contract
it is A guaranteed investment contract purchased with a single premium.
Bullet Loan
it is a bank term loan which calls for no amortization.
Bullet Strategy
it is A fixed income strategy in that a portfolio is constructed so that the maturities of its securities were highly concentrated at one point on the yield curve.
Bullion
they are the Bars or ingots of precious metals, and they are cast in standardized sizes.
Bullion Coins
they are the Metal coins which consists of gold, silver, platinum, or palladium which are actively traded .
Bullish
they are the Word that is used to describe an investor's attitude Bullish refers to optimistic outlook, while bearish a pessimistic outlook
Bump-up CD
A certificate of deposit which grants the owner the right to increase its yield one time for the remaining term of the CD. The power is used by the owner in the event of an interest rate hike.
Bunched Order
A arbitrary order entered on behalf of multiple customers
Bunching
it Describes the act of traders that combines round-lot orders for execution at the same time .
Bundling, Unbundling
it is Creation of securities by combining primitive and derivative securities into one and composite hybrid or by separating returns on an asset into classes.
Buoyant
A market where prices have a tendency to increase easily with a considerable show of strength.
Bureau Of Labor Statistics (BLS)
A research agency of the Department of Labor; it compiles statistics on employment and unemployment, consumer prices and many other variables.
Burn Rate
it is Used in venture capital financing this refer to the rate at which a startup company expends capital in order to finance overhead costs prior to the generation of positive cash flow.
Burnout
it is Depletion of a tax shelter's benefits ,it refers to the percentage of the pool which has prepaid their mortgage.
Business
it is a continuous and regular activity that has income or profit as its primary objective.
Business Combination Laws
These are the laws which imposes a moratorium on certain kinds of transactions between a large shareholder and the firm for a period that ranges between three and five years after the shareholder's stake passes through apre-specified (minority) threshold.
Business Cycle
they are the Repetitive cycles of economic expansion and contractions.
Business Day
A day when financial markets get open for trading.
Business Failure
A business with a loss to creditors that has concluded operations.
. Business Risk
The risks which assumes that the cash flows of an issuer will be impaired because of bad economic conditions making it difficult for the issuer to meet its operating expenses.
Business Segment Reporting
it Reports that the results of the separate subsidiaries in a business.
Bust-up Takeover
it is a leveraged buyout in which the buyer sells off the assets of the target company in order to repay the debt that financed the takeover.
Busted Convertible
it is Related Fixed income equivalent.it applies to convertible securities .
Convertible bond selling is a straight bond.it Assumes that the issuer is money good, or it will continue to meet credit obligations, when such issues can be highly attractive since the price makes virtually no allowance for the bond's call on the common stock, when most such issues usually carry premiums.
Butterfly
a firm with two divisions may splitted into two companies and issue original shareholders two shares for every old share they possess.
Butterfly Shift
A nonparallel shift in the yield curve which involves the height of the curve.
Butterfly Spread
1.buying a call option with a low strike price;
2.buying a call option with a high strike price;
3.selling two call options with an intermediate strike price
this is a bear call spread that is stacked on top of a bull call spread
The investor buys a put with a low strike, buys a put at high strike and sells two puts at intermediate strike price The payoff loks like the shape of a butterfly.
Buy
it is to purchase an asset by taking a long position in the market.
Buy (or Sell) On Close
it is To buy or sell at the end of the trading session in the closing price range.
Buy (or Sell) On Opening
it is to buy or sell at the beginning of a trading session in the open price range.
Buy In
it is to cover, offset, or close out a short position.
Buy Limit Order
A trading order that indicating a security may be purchased only at the particular price or lower Related Sell limit order.
Buy Minus Order
it is rare market or limit order in order to buy a stated amount of a stock, stipulated that the price to be obtained is not higher than the last sale if the last sale is a minus or zero-minus tick, and it is not higher than the last sale so it will be minus the minimum fractional change in the stock if the last sale is a plus or zero-plus tick.
Buy On Close
it is Buying at the end of the trading session within the closing range at a price.
Buy On Margin
it refers to Borrowing and to buy additional shares, using them as collateral.
Buy On Opening
it is purchasing at the beginning of a trading session at a price which is within the opening range.
Buy On The Bad News
Buying stock shortly after a price drop that results from bad news from the company.
Investors who believes that the price has hit bottom and will trend upward.
Buy Order
it is An order for a broker to buying a specific quantity of a security.
Buy Stop Order
it is not to be executed until the market price rises to the stop price when the security has broken through that price, the particular order is then treated as a market order.
Buy The Book
it is An order from a large institutional investor to a broker ordering him to purchase all the shares available at the market from the specialist and other brokers and dealers at the current offer price.
Buy-and-hold Strategy
it is an investment strategy with no progressive buying and selling of stocks from the time the portfolio is created till the end of the investment horizon.
Buy-and-write Strategy
it is An options strategy which calls for the purchase of stocks and the writing of covered call options on them.
Buy-side Analyst
A financial analyst who is employed by a nonbrokerage firm, which purchases securities on its own account.
Buyback
The covering of a short position by buying a long contract, usually resulting from the short sale of a commodity.
The buying of corporate bonds by the issuing company at a discount in the open market.
When a firm elects to repurchase some of the shares trading in the market.
Buydown
A whole payment made to the creditor by the borrower or by a third party in order to reduce the amount of some or all of the consumer's periodic payments so as to repay the indebtedness.
Buyer
he is A market participant that takes a long futures position or buys an option he is also referred asa taker, holder, or owner.
Buyer Credit
A financing which is provided to a buyer to pay for the supply of goods or services.it is done by an exporting country or by the supplier company.
Buyer's Call
A purchase of a specified quantity of commodity which is at a fixed number of points above or below a specified delivery month futures price with the buyer allowed a period of time to fix the price either by purchasing a futures contract for the account of the seller or telling the seller when he wishes to fix the price.
Buyer's Market
the Market in which the supply exceeds the demand, creating lower prices.it is Antithesis of seller's market
Buyers/sellers On Balance
it is Used for listed equity securities Indicates that at a given time (usually before the opening of a stock market or at expiration time), no. Of buyers are more than sellers in the marketplace, usually with market orders See Imbalance of orders.
Buying Climax
A rapid increase in the price of a stock resulting from heavy buying, that usually creates market condition for a rapid fall in the price.
Buying Hedge (or Long Hedge)
it is Hedging transaction where futures contracts are bought to protect against all possible increases in the cost of commodities .
Buying Power
The amount of money that is available to buy securities,which is determined by adding the total cash that is held in brokerage accounts and the amount that could be spent if securities were margined to the limit.
Buying The Index
these are the Purchase of stocks in the S&P 500 in the same proportion so as to achieve the same return.
Buyout
the Purchase of a controlling interest of a company's stock A leveraged buy out is established with borrowed money.
BV
The country code for BOUVET ISLAND;ISO 3166 .
BW
The country code for BOTSWANA;ISO 3166.
BWP
The currency code for Botswanan Pula;ISO 4217 .
BY
The country code for BELARUS;ISO 3166.
BYB
The currency code for Belarus Rouble ;ISO 4217.
Bylaw Amendment Limitations
These limit shareholders' ability to amend the governing documents of the corporation,which might take the form of a supermajority vote requirement for charter or bylaw amendments.
Bylaws
these are the Rules and practices that regulate management of organization.
Bypass Trust
An irrevocable trust which is designed to pay trust income (and principal, if needed) to an individual's spouse for the duration of the spouse's lifetime .The bypass trust is not part of the beneficiary spouse's estate and is not subject to federal estate taxes upon his/her death.
BZ
The country code for BELIZE;ISO 3166.
BZD
The currency code for Belize Dollar ;ISO 4217.
C & FCost and Freight is the paid to the point of destination and included in the price quoted .It is same as C.A.F.Corporation A corporation which elects to be taxed as a corporation. The corporation pays federal and state income taxes on earnings. When these earnings are distributed among the shareholders as dividends, this income is subjected to another round of taxation.
Cabinet Crowdthe NYSE members who trade bonds with a low daily traded volume.
Cabinet Security A stock or bond that is listed on a major exchange with a low daily traded volume.
CableThis is the Exchange rate between British pound sterling and the U.S. dollar.
CAC 40 IndexThis is a broad-based index of all the common stocks which are composed of 40 out of the 100 largest companies which are listed on the forward segment of the official list of the Paris Bourse.
Calendar Spread It is a strategy where there is a simultaneous purchase and sale of options of the same class at the same strike prices, but with different expiration date.
Call An option which gives the holder of the option ,the right to buy the underlying asset.
Call An Option It is To exercise a call option.
Call Around Market A market, which is commonly used for options on the futures on European exchanges, in which the brokers contact each other outside of the exchange trading facility in order to arrange the block trades.
Call Loan A loan repayable on demand. It is also called as a broker loan or broker overnight loan.
Call Loan Rate it is the Call money rate
Call Money Ratethis is called the broker loan rate , the interest rate that the banks charge brokers to finance margin loans to investors. The broker hene charges the investor the call money rate plus a service charge.
Call Option It is an option contract that gives the holder the right but not the obligation in order to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.
Call Premiumthis is the Premium in price which is above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.
Call Price The price, that it is specified at the issuance, at which the issuer of a bond may retire part of the bond at a particular call date.
Call Swaption A swap option in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer hence becomes the fixed-rate receiver/floating-rate payer.
Callabilityit is the Feature of a security that allows the issuer to redeem the security prior to maturity by calling it in, or forcing the holder to sell it back.
CancelIt is To void an order to buy or sell from
(1) the floor,
(2) the trader/salesperson's scope
the indication that still remains on record as having once been placed unless it is expunged.
Canceled Certificatesit is Before the issuance of a new certificate, the old certificate is presented to the Transfer Agent and it is cancelled.
Capacitythe Credit grantors' measurement of a person's ability to repay loans.
Capacity Utilization Rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion.
Capital The Money that is invested in a firm.
Capital Account This is the Net result of the public and private international investment and the lending activities.
Capital Allocation Decision The allocation of invested funds between the risk-free assets and the risky portfolio.
Capital Asset It is a long-term asset, for example plant, land or building, which is not purchased or sold in the normal course of business.
Capital Asset Pricing Model (CAPM)This is economic theory that describes the relationship between the risk and expected return, and it serves as a model for the pricing of risky securities.It asserts that the only risk is the systematic risk, because this particular risk cannot be eliminated by diversification. This model says that the expected return of a security or a portfolio is equal to the rate on a risk-free security plus a risk premium which is multiplied by the asset's systematic risk.this Theory was invented by William Sharpe and John Lintner The early work of Jack Treynor was also instrumental in the development of this model.
Capital Budget It is a firm's planned capital expenditures.
Capital Budgeting The process of choosing the firm's long-term assets.
Capital Builder Account (CBA) A brokerage account which allows investors to access the loan value of his or her eligible securities in order to buy or sell securities. The excess cash in a CBA can be invested in a money market fund or an insured money market deposit account without losing access to the money.
Capital ExpendituresThe Amount that is used during a particular period to acquire or improve long-term assets. for example property, plant, or equipment.
Capital Flight The transfer of capital abroad which is in response to the fears of the political risk.
Capital FormationThis is the expansion of capital or capital goods through savings, that leads to the economic growth for the country.
Capital Gainthe capital gain occurs, When a stock is sold for a profit, it is the difference between the net sales price of the securities and their net cost, or original basis.capital loss occurs when If a stock is sold below cost, the net difference is negative.
Capital Gains DistributionIt is a distribution to the shareholders of a mutual fund out of profits from the selling of the stocks or bonds, that is subjected to the capital gains taxes for the shareholders.
Capital Gains Yield The price change in the portion of a stock's return.
Capital Goods These are the Goods which are used by the firms to produce other goods,for example office buildings, machinery, equipment.
Capital Growth The increase in an asset's market price which is called as capital appreciation.
Capital Infusion It refers to the cross-subsidization of divisions within a particular firm. When one division is not doing well, it might get benefit from an infusion of new funds from the other more successful divisions.
It can refer to the funds that are received from a venture capitalist to either get the firm started or save it from failing due to lack of cash.
Capital Market The market for the trading of long-term debt instruments (those that mature in more than one year). This is used to refer to the market for stocks, bonds, derivatives and other investments.
Capital Market Efficiencyit is defined as the degree to which the present asset price reflects the current information in the market place.
Capital Market Imperfections View The view that the issuing debt is valuable, but that the firm's optimal choice of capital structure that involves various other views of capital structure net corporate/personal tax, agency cost, bankruptcy cost, and pecking order, that further result from the considerations of asymmetric information, asymmetric taxes, and transaction costs.
Capital Market Line (CML)It is defined by the capital asset pricing model.
The line that is defined by every combination of the risk-free asset and the market portfolio. This is the risk premium you earn for taking on extra risk.
Capital RationingThis is placing of limits on the value of new investment which is undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it.
Capital RequirementsThis is the financing which is required for the operation of a business.
It is composed of the long-term and working capital plus fixed assets.
Capital SharesIt is one of two types of shares in the 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. It is opposite of income shares.
Capital-intensive It is Used to describe the industries that require large investments in capital assets in order to produce their goods, such as the automobile industry. These firms require large profit margins and lower costs of borrowing to survive.
CapitalizationIt refers to The debt and equity mix that funds the firm's assets.
Capitalization MethodIt is a method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization.
Capitalization Rate The interest rate which is used to calculate the present value of a number of future payments.
Capitalization RatiosIt is the financial leverage ratios.
these ratios compare debt to total capitalization and thus it reflects to the extent to which the corporation is trading on its equity. It can be interpreted only in the stability of industry and the company earnings and cash flow.
Capitalization TableIt is a table showing that the capitalization of a firm, which includes the amount of capital obtained from each long-term debt and common equity and the capitalization ratios.
Capitalization-Weighted IndexA stock index that is computed by adding the capitalization of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values has the heaviest weighting in the index.
Capitalized It is recorded in asset accounts and then depreciated or amortized, as is appropriate for the expenditures for the items with useful lives longer than one year.
Capitalized InterestThis is the Interest which is not immediately expensed, but rather it is considered as an asset and it is then amortized through the income statement over time. It is the interest which is paid by additional borrowing.
Capped-Style Option It is an option with an established profit cap or cap price. The cap price which is equal to the option's strike price plus the cap interval for a call option or the strike price minus a cap interval for a put option. It is exercised automatically when the underlying security closes at or above (for a call) or at or below (for a put) the Option's cap price.
Capping It refers to the effecting transactions in an instrument underlying an option shortly before the option's expiration date to depress or to prevent a rise in the price of the instrument so that the written call options will expire worthless, hence further protecting the premiums that were previously received.
Carrot Equityit is a word for an equity investment with the added benefit of an opportunity to purchase more and more equity if the company reaches its financial goals.
CarryIt is related to the Net financing cost.
Carryforwards These are the Tax losses allowed which are to be applied to offset future income in some specified number of future years.
Carrying Broker An exchange member firm, usually a Futures Commission Merchant, through whom another broker or customer elects to clear all or part of its trades.
Carrying Charge The fee that a broker charges for carrying securities on credit, such as on a margin account. It is any component of a futures basis, such as storage costs, or insurance costs on the underlying interest.
Carrying Costs The Costs that increase with increases in the level of investment in the current assets.
Carrying Valuethis is the Book value.
Cartel A group of businesses or nations that act together as a single producer to obtain market control and to influence prices in their favor by limiting production of a product. The United States has laws prohibiting cartels.
Carve Out This occurs when the company decides to Initial public offering one of their subsidiaries or divisions. The company offers a minority share to the equity market. This is known as the equity carve out.
Cash The value of assets which can be converted into cash immediately. It includes the bank accounts and the marketable securities, for e.g. the government bonds and the banker's acceptances. The Cash equivalents on the balance sheets include the securities which mature within 90 days for e.g., notes.
Cash & Carry It applies to the derivative products. The long position in a stock/index/commodity combined with the short position in the underlying futures that entails a cost of carry on the long position. It is known as the cash and carry arbitrage.
Cash Account A brokerage account which settles transactions on a cash-basis instead of credit-basis.
Cash Asset Ratio This is defined as:
Cash and marketable securities /current liabities.
Cash Available For Debt ServiceThe Ratio of cash assets to the debt service (the interest plus the nearby principal). This is used in evaluating the risk of a project or firm. The higher the ratio the less likely the firm or project would fail to meet the debt obligations.
Cash BasisIt refers to the accounting method which recognizes revenues and expenses when the cash is actually received or paid out.
Cash Budget it is a summary which is forecasted of the firm's expected cash inflows and the outflows and the expected cash and the loan balances.
Cash Commodity The actual physical commodity, which is distinguished from a futures contract.
Cash Conversion Cycle this cycle is the length of the time between a firm's purchase of inventory and the receipt of the cash from the accounts receivable.
Cash Cow A company which pays out most of its earnings per share to stockholders as the dividends. A company or division of a company that generates a steady and significant amount of free cash flow.
Cash Cyclethe time between the cash disbursement and the cash collection. it is the operating cycle less the accounts payable payment period in net working capital management.
Cash Deficiency Agreement It is an agreement to invest the cash into different projects to the extent that is required to cover any cash deficiency, the project might experience.
Cash Discountcash discount is an incentive that is offered to the purchasers of the firm's product for payment within a specified time period, such as ten days.
Cash Dividend A dividend which is paid in cash to a company's shareholders. This amount is usually based on profitability and is taxable as income. This is a cash distribution that may include the capital gains and the return of capital in addition to the dividend.
Cash Earnings A firm's cash revenues less cash expenses, which excludes the costs of depreciation.
Cash Equivalents these are the Assets on the balance sheet of a financial institution that can get converted into cash. Example accounts which are due from the correspondent banks and federal funds sold.
Cash Flow the cash flow represents earnings before depreciation, amortization, and non-cash charges in investements.these are called cash earnings. The Cash flow from operations is important because it indicates the ability to pay the dividends.
Cash Flow After Interest And Taxes This is the Net income plus depreciation.
Cash Flow Break-even Point This is the point below which the firm needs either to obtain additional financing or to liquidate some of its assets in order to meet its fixed costs.
Cash Flow MatchingThis is called as dedicating a portfolio, that is an alternative to the multiperiod immunization which calls for the manager to match the maturity of each element in the liability stream, working backward from the last liability to assure all required cash flows.
Cash Flow Per Common Sharethe formulae is :
the Cash flow from operations minus preferred stock dividends, which are further divided by the number of common shares outstanding.
Cash Flow Time Linethe line which depicts the operating activities and cash flows for a firm for over a particular period.
Cash Forward Salethis is the Forward Contract
Cash In Advance A payment term meaning the buyer pays the seller before shipment is effected.
Cash In Lieu (CIL) In an exchange offer, old shares of the target company are exchanged for new shares.
Cash InvestmentsThese are the Short-term debt instruments for example commercial paper, banker's acceptances, and treasury bills which gets mature in less than one year. These are known as money market instruments or the cash reserves.
Cash Management It refers to the efficient management of cash in a business in so as to put the cash to work more quickly and to keep the cash in applications that produce income, as the use of lock boxes for the payments.
Cash Management BillThese are very short-maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days.
Cash Markets These are called spot markets. It is related to the Derivative markets. markets which involve the immediate delivery of a security or instrument
Cash Offer This is used in for the risk arbitrage.The Proposal, that is either hostile or friendly, in order to acquire a target company through the payment of cash for the stock of the target. It is Compared to the exchange offer.
Cash On Delivery (COD)this refers to the practice of institutional investors which are paying the full purchase price for the securities in cash.
Cash Plus Convertible This is a bond that requires cash payment upon its conversion.
Cash Position The percentage of the mutual fund's assets that are invested in short-term reserves, such as the Treasury bills or any other money market instruments.
Cash Ratio The proportion of the firm's assets which are held in cash.
Cash Reservesthe cash reserves are the Cash investments
Cash Settlement The process by which the terms of a particular option contract are completed through the payment or receipt in dollars of the amount by which the option is expressed to be in-the-money as it is opposed to the delivering or receiving the underlying stock
Daily Price LimitThe exchange imposes a daily price limit on every contract.
The markets rise or fall in a day and this is the level within different commodity, futures, and options.
Daisy ChainIn order to attract the investors, this is the manipulation of the market by traders so as to create the illusion of active volume.
Date of Issueit refers to the date on which a bond is issued and when the interest starts accruing to the bondholder.
It also refers to the day trading when it has begun on a new stock that is issued to the public.
Date Of PaymentThe date when the dividend cheques are mailed.
Date of Recordthe date of record is when the holders of the record in a firm's stock ledger that are elected as the recipients of either dividends or stock rights.
DatingThis is the Credit extension which is beyond the normal terms of a credit supplier.
Dawn RaidThis term is used to describe the purchase of all the available shares of a target company at the market's open by a raider. It is a technique which allow the raider to gain a substantial share of the target company before the target company becomes aware of what is happening.
Day OrderIt is a request from a customer to either purchase or sell stock, if it is not canceled or executed the day when it is placed, it get expire automatically. All the orders are day orders until they are specified. The traders make calls before the opening to check for the renewals.
Day Tradeit is the purchase and sale of the same security in a margin account on the very same day.
Day TraderA trader, who has exchange trading privileges, takes positions and then offsets them within the same trading session before the closing of trading.
Day Tradingwithin one day's trading, it is establishing and liquidating the same position .
Death valley curveIt refers to the period before a new company starts making money, and when it is difficult for the company to raise money.
Death-backed Bondsthe Bonds which are backed by loans of a policyholder against a life insurance policy. The policyholder will then repay the loans while he is alive or with the benefits from the insurance policy upon his death.
Debentureit is any debt obligation which is backed strictly by the borrower's uprightness, for example an unsecured bond.
Debenture Bondit is an unsecured bond whose holder has the claim of a general creditor on all the assets of the issuer not promised specifically to secure other debt.
Debit SpreadIt applies to derivative products.
The difference in the value of two options, when the value of the option purchased exceeds the value of the one sold. One buys a debit spread.It is the Opposite of a credit spread.
DebtIt is the Money borrowed.
Debt Bomb A default on debt and obligations by a major financial institution that disrupts the stability of the economic system.
Debt CapacityIt is the ability to borrow. The value that a firm can borrow up to the point where the firm value does not increases.
Debt Ceiling it refers to the Debt limit.
Debt Displacement The amount of borrowing that leasing displaces. The firms that do a lot of leasing are shortened in their debt capacity.
Debt InstrumentAn asset which is required for fixed dollar payments, for example a government or corporate bond.
Debt LeverageIt is strengthening of the return which is earned on equity when an investment or firm is financed partially with some borrowed money.
Debt LimitThe maximum amount which a municipality can borrow.
Debt LimitationIt is a bond covenant which restricts the firm's ability to sustain additional indebtedness.
Debt MarketIt is the market for trading of the debt instruments.
Debt RatioThe debt ratio is Total debt / total assets.
Debt ReliefFor the benefit of less developed countries it is reducing the principal and interest payments on the loan.
Debt Retirementit is the full repayment of debt.
Debt SecuritiesThey are created through loan type of transactions which includes commercial paper, bank CDs, bonds, and other instruments.
Debt ServiceThis is the Interest payment plus repayments of principal to creditor.
The formulae for debt service is
Earnings before interest and income taxes,/ interest expense plus the quantity of principal repayments / one minus the tax rate.
Debt/equity RatioIt Indicates the financial leverage.
It compares assets provided by creditors with the assets provided by shareholders.
The formulae is long-term debt / common stockholder equity.
DebtholderIt refers to the Bondholder
Debtorhe is a person who has Borrowed money.
Debtor In PossessionUnder the bankruptcy process,it is a firm which continues to operate.
Debtor-in-possession Financingit is the new debt which is obtained by a firm during the bankruptcy process.it is secured type of financing, and, it has priority over existing debt, equity and other claims.
Decile RankIt is the Performance over time,which is rated on a scale of 1-10. 1 indicates that a mutual fund's return is in the top 10% of funds being compared while 3 means the return is in the top 30%.
Decimal TradingThe quotation and trading of stock or bond prices in decimals, which are opposed to the quotation of prices in fractions.
DecimalizationThis is the quotation and trading of stock or bond prices in decimals, which are opposed to the fractions such as eighths.
Decision Break-Point AnalysisA type of sensitivity analysis which indicates the value at which a key variable results in a negative NPV for an investment project.
Decision TreeIt is a Schematic way of representation of the alternative sequential decisions and all the possible outcomes from these decisions.
DeckThis are the orders for purchase or sale of futures and option contracts which are held by a floor broker.
They are referred to an Order Book.
DeclarationThe Board of Directors action to authorize the dividend payments.
Dedication StrategyIt refers to the multiperiod cash-flow matching.
DeductibleIt is an amount or the period which must be deducted before an insurance payout or the settlement is calculated.
Deductible ContributionIt is an amount which is paid into an IRA, an employer-sponsored retirement plan, or some other type of retirement plan for a particular tax year that is a deduction from income for tax purposes.
DeductionThis is an expense that is allowable as a reduction of gross taxable income by the IRS. for example, charity donations.
Deductive ReasoningIt is using of some known facts in order to draw a conclusion about a particular situation.
Deed Of TrustIndenture
Deep In The MoneyA call option with an exercise price significantly below the underlying stock's market price.
A put option with an exercise price significantly above the underlying stock's market price. Often significantly below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.
Deep Out Of The Money
A call option with an exercise price significantly above the market price. Also put option with an exercise price significantly below the underlying stock's market price. Often significantly below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.
Deep-discount Bond
It is a bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond which has no coupon is referred to as a zero-coupon bond.
Default (Futures Contract)
It is failure to perform on a futures contract as is required by the exchange rules, such as failure to meet a margin call, or to make or take delivery.
Default Interest
A higher interest rate which is payable after default.
Default Option
Credit Default Option
Default Premiumit is a differential in promised yield that compensates the investor for the risk which he inherits by purchasing a corporate bond that has some risk of default. It is Often the premium which is measured as the yield over and above a government bond yield of similar coupon and maturity.
Delivered Duty Unpaid (DDU)It is the Seller who fulfills the contract obligations when the goods have arrived at a named place in the importing country. The seller bears all the costs and risk except the import duties and other customs clearance costs.
DeliveryIt is the tender and receipt of an actual commodity or financial instrument in the settlement of a futures contract.
Delivery DateThe date by which a seller must oblige the obligations of a forward or futures contract.
Delivery NoticeThe written notice which is given by the seller to state his intention of making delivery against an open, short futures position on a specified date.
Delivery OptionIt is the provision of a futures contract that provides the short with flexibility in regard to particular timing, location, quantity, or quality in the delivery process.
Delivery OptionsThe options which are available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options means that the buyer is uncertain of which Treasury bond will be delivered or when it will be delivered.
Delivery PointThis is a location which is chosen by a commodity exchange where the stocks of a commodity which is represented by a futures contract may be delivered in fulfillment of the contract.
Delivery PriceIt is the price which is fixed by the clearinghouse at which the deliveries on futures are invoiced as well as the price at which the futures contract is settled when the deliveries are made.
Delivery Versus Payment
The buyer's payment for the securities is due at transaction the time of delivery usually to a bank who is acting as agent for the buyer, upon the receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.
Current DeliveryThe Deliveries which are being made during a present month. The current delivery which is used as a synonym for nearby delivery.
Delphi TechniqueThis technique is the Collection of the independent opinions of the analysts without group discussion,it is used for various sorts of evaluations.
Delta Cross-hedgeIt is a futures hedge which have both maturity and currency mismatches with an underlying exposure.
Delta HedgeIt is a hedging strategy which is used for options that calls for constant adjustment of the number of options used, and as a function of the delta of the option.
Depository InstitutionIt is a financial institution that obtains its funds mainly through deposits from the public. This includes the commercial banks, the savings and loan associations, savings banks and credit unions.
Depository Institutions Deregulation And Monetary Control ActIt ended the regulation of the banking industry.
Depository PreferredIt is a device which enables an issuer to circumvent an arbitrary corporate limit on the number of preferred shares that are issuable. It applies to the convertible securities.
Depository Receipt
American Depository Receipt
Depository Transfer Check (DTC)This is the Cheque which is made directly by a local bank to a particular firm or person.
DepreciateThis is to allocate the purchase cost of an asset over its life.
Depreciated CostThis is the measure of capital consumption during production, for example, machine and equipment wear. It is the process of amortization of fixed assets in order to spread the cost over the depreciable life of the assets.
Depreciation It is a non-cash expense which is also known as non-cash charge that provides free cash flow. The Amount which is allocated during the period in order to amortize the cost of acquiring long-term assets over the useful life of the assets.
this is an accounting expense that demands cash. The sum of depreciation expenses of previous years which leads to the balance sheet item Accumulated Depreciation.
Depreciation Tax ShieldThe amount of the tax write-off on the depreciation of the plant and the equipment.
Depressed MarketThe Market in which the supply overwhelms the demand, further leading to weak and lower prices.
Depressed Pricestock whose market price is low in comparison with the stocks in their own sector.
DepressionThis is the Period when excess aggregate supply overwhelms the aggregate demand, results in falling of prices,the unemployment problems, and the economic contraction.
Derivatives Clearing OrganizationA clearing organization or similar entity which, in respect to a contract
(1) enables every party to the contract to substitute, through novation or other way, the credit of the derivatives clearing organization for the credit of the parties
(2) provides, on a multilateral basis, the settlement of the obligations that results from such contracts,
(3) provides clearing services that mutualize or transfer among the participants in the derivatives clearing organization It takes care of the credit risk arising from such organization
DESIt stands for Delivered Ex Ship.
Descending TopsIt is a chart pattern in which each successive peak in a security's price is lower than its preceding peak over its specific period of time. It is opposite of ascending tops.
DescriptorIt is a variable describing assets, that is used as an element of a risk index. For e.g., a volatility risk index, which distinguishes high volatility assets from low volatility assets, and that could consist of several descriptors which are based on short term volatility, long term volatility, etc.
Design RiskThe risk that is associated with the impact on project cash flow from the deficiencies in design or engineering.It is called as engineering risk.
Designated Contract MarketContract Market
Designated Order Turnaround System (DOT)A Computerized order entry system that allows the orders to buy or sell large baskets of stock in order to be transmitted immediately to the specialist on the exchange, where the execution will occur quickly, depending on the basket size.It is also used for odd-lot transactions to occur at the prices and quantities available.
Desk The New York Federal Reserve Bank's trading desk securities department where all the transactions of the Federal Reserve System are accomplished in the money market or the government securities market.
Detachable WarrantA warrant entitles its holder to purchase a given number of shares of stock at a specified price.It is one that may be sold separately from the package it may have originally been issued with particularly a bond.
Detached HouseA housing unit which is surrounded by freestanding walls and is generally seated on a separate lot.
DeterminismIt is fully ordained in advance. It is a deterministic chaos system which gives random looking results, even though the results are generated from a particular system of equations.
Deterministic ModelsThis is the liability-matching models which states that the liability payments and the asset cash flows are known with certainty.
DevaluationDevaluation refers to the decrease in the spot price of a currency. It is initiated by a government announcement.
Diagonal SpreadIt is an options strategy which requires a long and a short position in the same class of option at different strike prices and different expiration dates.
For e.g., purchasing an XYZ April 60 call and selling an XYZ July 75 call.
DirectorHe is a board of directors of the company
Director ExceptionIt is a proxy or ballot which withholds its votes from one or more, but not all, the individuals on the slate of nominated directors.
Directors' DutiesThe Directors' Duties refers to the stated responsibilities of the company's Board of Directors. These provisions allow directors to consider constituencies other than the shareholders when considering a merger. These constituencies may include, for example, employees, host communities, or suppliers. This is a provision that provides boards of directors with legal basis for rejecting a takeover that would have been beneficial to shareholders.there are a majority of states that have Directors Duties Laws.
Dirty FloaIt is a system of floating exchange rates in which a government should intervene to change the direction of the value of the country's currency.
Dirty PriceThe Bond price which includes accrued interest, i.e., the price that is paid by the bond buyer.
Dirty StockA stock which fails to fulfill the prerequisites to attain good delivery status.
Disability Income InsuranceIt is an insurance policy which insures a worker in the event of an occupational mishap resulting in a disability. Insurance benefits compensate the injured worker for lost pay.
Discharge Of LienIt is an order which terminates a lien on property.
Disclaimer Of OpinionIt is an auditor's statement that does not express any opinion regarding the company's financial condition.
DisclosureIt is a company's release of all information which are pertaining to the company's business activity, no matter how that information may influence investors.
Disclosure DocumentA statement which must be provided to the prospective customers that describes trading strategy, potential risk, commissions, fees, performance and other relevant information.
Discontinued OperationsThe divisions of a business which have been sold or written off and that are no longer are maintained by the business.
Discount ArbitrageIt is a riskless arbitrage in which a discount option is purchased and an antithesis position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or may purchase a put at a discount and simultaneously purchase the underlying security (basic put arbitrage).
Discount BondThis is the debt that is sold for less than its principal value. a discount bond that pays no coupon, is called a zero coupon bond.
Discount BrokerA brokerage house which features moderately low commission rates in comparison to a full-service broker.
Distribution By MaturityThis indicates the interest rate risk. In general, the higher the concentration of longer-maturity issues, the more a portfolio's share price will fluctuate in response with the changes in interest rates.
Distribution Cost AdvantageThey have the competitive advantage which depends on the efficient delivery of a product or service to customers.
Distribution Periodthis period are the few days between the Board of Directors' declaration of a stock dividend that is the declaration date and the date of record, or the date an individual must own shares in order to be entitled to a dividend.
Distribution Planit is a mutual fund's plan to charge distribution costs such as advertising to the investors of the fund.
Distribution StockIt is a small amount of particular stock which forms part of a larger block of stock that is sold by small amount so as not to disrupt the stock's market price.
DivergenceIt occurs When two or more averages or indexes failed to show the confirming trends.
DiversificationThis is Division of the investment funds among a variety of securities with different risk, reward, and correlation statistics in order to minimize unsystematic risk.
Diversified Investment CompanyIt is an investment vehicle such as a mutual fund which invests in an assortment of securities.
DivestitureThis is the complete asset or investment disposal such as the outright sale or winding up of the company.
DividendIt is the portion of a company's profit that are paid to the common and preferred shareholders.
Earn
It is to receive money in exchange for some goods and services.
Earned income
The Money which is made from working for some person who pays you for your work or from running a business or farm. This comprises of all the income, wages, and the learnings that you get from your working.
EDGAR
The full form of EDGAR is Electronic Data Gathering, Analysis and Retrieval System. It is an electronic system which is used by the companies to transmit documents which are required by SEC that is securities exchange commission India that relates to the corporate offerings and the ongoing disclosure obligations.
EDIFAR
The full form of EDIFAR is Electronic Data Information Filing and Retrieval system. It was set up in order to facilitate the filing of certain documents or the statements which are listed companies online on the Web site.
This would comprise of the electronic filing of information which are in a standard format by the companies .this was set up by the Securities and Exchange Board of India (SEBI) which is in association with National Informatics Centre (NIC).
Elder financial exploitation
This is the improper use of the older adult’s funds, property, or the assets by the family members, caregivers, friends, or strangers who can gain their trust.
Entrepreneur
He is a person who organizes, manages, and assumes the risks of a business or enterprise.
Estate tax
A tax put on the value of the property that you would own at your death. It considers everything you own or have certain interests in at the date of death. There is a federal estate tax, and it states that they have their own estate taxes.
Equilibrium Price
When the market price of the number of goods demanded is equal to the number of goods supplied it is called an equilibrium price. The supply and demand of the market balances one another and the prices remain stable.
Equity
It is the share of the stakeholder of a company which represents the profits and debts. one can think of it as the amount of money which then would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debt had been paid off.
Exchange rate
A number which is used to compare the value of money in two different countries. For e.g., one that would use an exchange rate to figure out how many of the pesos or euros one will get for one U.S. dollar.
Expected family contribution
The index number the schools uses to determine your eligibility for the federal financial aid and it results from the financial information that you provide in your Free Application for the Federal Student Aid form. This index number is reported to you on your Student Aid Report. It is neither the amount of money your family have to pay for college nor is it the amount of federal student aid you will receive. It is a number that school usually uses to calculate the amount of the federal student aid which you are eligible to receive.
Earnings
This is related to something, that goes up in line with the increase in earnings, it is described as earnings−related. For e.g. a pension contribution
Easement
It is a right to use someone’s else's land, as a right of way.
Effects
When the cheques which are paid into a bank account, but the money for them has not yet been received from the banks they are drawn on, then these are called uncleared effects.
Emoluments
These are your earnings and they would comprises of the benefits in kind for e.g. the company cars.
Employer's liability
Employers have to take out insurance cover, called employer's liability insurance, to cover claims by employees against the employer for damage caused to them while they are at work.
Endorsement
An endorsement is a change to a contract, such as an insurance policy, so that the original terms are changed.
Endowment policy
If one have this type of the insurance policy, it will pay out this lump sum on a fixed date in the future, or when you die, whatever happens earlier.
Enduring power of attorney
If a person is capable of dealing with their own affairs at present, they can sign on an enduring power of attorney. It will only come into effect when they are no longer capable of looking after their own affairs. It gives the authority to the person who is appointed to act for the person who has signed the power of attorney.
Equitable mortgage
When a person who takes out this type of mortgage they still own the property which is security for the mortgage. They can either occupy or live in that property.
Equity
It is the value of something less money owned on it.
Eurocheques
These are cheques which are issued by the banks in Europe and are used with a eurocheque card.
Excess
This is the value by which someone have gone over their agreed overdraft facility. It is the first amount of any claim an insurance policyholder have agreed to pay.
Exchange control
It controls the flow of currencies which are in and out of the country.it buys and sells our currency in order to try and keep the exchange rate with the other currencies within certain limits.
Exchange equalisation account
This is an account which are kept by the bank. It holds the country's foreign exchange and gold reserves.
Exchange of contract
When the land is sold, the seller and the buyer both of them had to sign the identical copies of the contract and then exchange them. The contract is then binding on both of them.
Exchange rate
The exchange rate is the value of one currency compared to another.
For e.g., one pound sterling might purchse 560 Portuguese escudos.
Exclusion
If an insurance policy does not provide cover for certain things, it will list them and call them exclusions.
Ex−dividend
It is the dividend when a share is sold as ex−dividend the seller will receive the dividend declared just before it was sold.
Execute
This means to carry out a contract.
Executed
If a document is make valid that bis legal as per law, as it was being either signed or sealed, it is termed as executed.
Executor
A man who is appointed in a will in order to deal with the estate, as per the wishes that had been set out in that will.
Executrix
A woman who is appointed in a will in order to deal with the estate, as per the wishes that had been set out in the will.
Exempt
If something has been exempted from tax, there is no tax which is charged on it unless the law is particularly changed.
The Zero−rate is not the same as exempt. The tax on something which is zero−rated is particularly 0% at the moment. The Government might change it to the another rate, for e.g. 2% or 7%, without changing the law.
Effective Sale (U.S)
A round lot of particular transaction which is completed on the floor of the New York Stock Exchange after the entry of an odd-lot order by a particular customer. Its price will be then used in order to determine the execution price for odd-lot order after consideration of the dealers’ fee.
Electronic fund transfer (EFT)
The System that utilizes computer and electronic components so as to transfer the money or the financial assets. This is information based and mostly intangible.
Employee Stock Option
It means the option which is given to the whole-time directors, the officers or the employees of a company who gives such directors, officers or employees, the benefit or right to buy or subscribe at a future date, the securities which are offered by the company at a predetermined price.
Employee Stock Purchase Scheme (ESPS)
It stands for “Employee stock purchase scheme (ESPS)”.this means that a scheme under which the company offers the shares to its employees as part of a public issue or otherwise.
Emerging Markets
This Term is used to describe the financial markets of developing countries. The definitions vary of which countries that are emerging and which are not. The emerging market indices which are compiled by the IFC and the Morgan Stanley are often used as benchmarks.
Entry Fee
The Fee which is paid by an investor when purchasing units in a trust or managed fund. The fee is particularly included in the price that the new investors pay.
Equity
The ownership interest in a company of the holders of its common and preferred stock.
Equity premium
The difference which is between the expected return from holding of stock and from holding of riskless bonds.
Equity Trust
The Unit Trust that invests mainly in equity shares with a component in cash and in the fixed interest
investment.
Escrow account
The trust account which is established by a broker under the provisions of the license law for the purpose of the holding of the funds on behalf of the broker’s principal or some other person till the consummation or termination of a transaction.
Eurobond
Eurobonds are issued in a particular currency which is outside the currency’s domicile. They are not subjected to withholding tax and fall outside the jurisdiction of any one country. This particular market is based in London. It should not be confused with the euro-denominated bonds.
Euroequities
Equities that are underwritten and distributed to the investors which are outside the country of origin of the issuer.
European Option
A put or call which can be exercised only on the expiration date. This has nothing to do with where the option has been traded or what underlies it. The Stock options that are listed on European option exchanges are normally the American Style options which are in the sense that they can be exercised previously to the expiration date.
EVA
This term stands for Economic Value Added.This is considered by the consultants Stern Stewart & Co,it is a popular method of measuring the company’s profitability.it is calculated by taking the total cost of capital from the post-tax operating profit.
Ex
It stands for ‘Without’. A price which is so quoted and that excludes the recently declared dividends (xd) rights (xr) or the bonus shares (xb).
Excess Spread Policy (U.S.)
A NASD requirement which prohibits the market makers from entering quotations in the system and that exceeds the prescribed parameters for the maximum allowable spreads.
Exchange
The Regulated market place where the capital market products are been bought and sold through its intermediaries.
Exchange Rate Risk
The risk that the adverse movements in the exchange rates could lead to the capital losses in the assets or the revaluation of liabilities.
Exchange-traded derivative
A derivative which is listed and traded at an organised market-place. The Derivatives exchanges generally provides standardised contracts and the central clearing facilities for the participants.
Exchange traded funds (ETF)
A security which tracks an index but has got the flexibility of trading like a stock.
External Commercial Borrowings
They are defined to comprise of the commercial bank loans, buyers’ credit, suppliers’ credit, and securitised instruments for e.g. Floating Rate Notes and Fixed Rate Bonds, etc., the credit from the official export credit agencies and the commercial borrowings which are from the private sector window of Multilateral Financial Institutions for e.g. the International Finance Corporation (Washington), ADB, AFIC, CDC etc. they are being permitted by the Government as a particular source of Finance for Indian corporates for expansion of existing capacity as well as for fresh investment.
Ex-Dividend Date
The date which is on or after the buyer of a security and that is not entitled to the dividend which had been declared.
Ex-Right Date
The date on which the official quotation for a share has been marked XR i.e. ex rights, in the daily official list.
Exit Fees
The Fees which is charged by the mortgage trusts/mutual funds on a sliding scale as the penalty for the early withdrawal.
Expected Return
The return which an investor might had expected on an investment if the same investment were made many times over to an extended period. This found through the use of the mathematical analysis.
Extrinsic Value
The amount by which the market price of an option would exceeds the value that could be realized if the options were exercised and the underlying commodity had been liquidated.This is known as time value.
FAFSA
It stands for The Free Application for Federal Student Aid form is used to determine how much a student and his or her family are eligible to receive in federal financial aid. The FAFSA may also be used to determine a student’s eligibility for the state and the school-based aid and also it may influence how much private aid a student particularly receives.
Federal income tax
The federal government collects taxes which are based on the earnings of individuals and businesses,usually called as an income tax. The federal income tax then pays for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.
Federal minimum wage
The lowest national wage as established by law in the Fair Labor Standards Act (FLSA).
Federal student loans
These loans are funded by the federal government and have terms and conditions that are set by law. Federal loans will comprise of the benefits that private student loans don’t usually offer. These benefits could include lower interest rates, repayment plans based on income, and possible loan forgiveness for people who choose to work for a certain amount of time in the government or for certain not-for-profit organizations or teach in a low-income school.
Federal work-study
A program that provides part-time jobs to help you earn money to pay for college expenses.
FICA – Federal Insurance Contributions Act
A tax deducted from your pay to contribute to Social Security and Medicare; your employer contributes the same amount on your behalf.
Financial aid
Money given in the form of grants, work-study, loans, and scholarships to help pay for post-secondary tuition and fees, as well as related expenses such as room and board, books, supplies, and transportation.
Facility
This is the already agreed amount which a bank will allow a customer to borrow up to.
Final dividend
Once a company has drawn up its annual accounts the directors can work out and declare, or recommend to the shareholders, the amount of the final dividend.
Finance lease
Under this type of lease the organization leasing the goods is treated as if it owns the goods. It gains the profits that could come with ownership but it will also suffers the losses.
Financial statement
This is a statement which includes the annual accounts, directors' report and so on.
Financial year
This is the year covered by a set of annual financial statements.
Fiscal
This word is used to describe finances controlled by the Government.
Fixed asset
A fixed asset is one which is intended to be used for several years. Examples are buildings, machinery and vehicles.
Fixed interest rate
This is an interest rate which does not change during the life of a loan.
Floating charge
A floating charge is used specifically to provide the security for money lent to a company. The charge is over the company's liquid assets(such as stocks and debtors) but it is only triggered by an event such as liquidation.
Floating exchange rates
These are exchange rates between currencies which are allowed to go up and down in line with supply and demand. The countries concerned do not attempt to maintain a particular exchange rate.
Forbearance
This is when one party to an agreement does not pursue their rights even though another party to the agreement has not kept to the agreement's terms.
Force majeure
This is an event which should not be controlled and which might stop the duties, under an agreement, that were being carried out.
Foreign exchange
This is the term for foreign currencies which are bought and sold. The markets for buying and selling the foreign currencies are called foreign exchange markets.
Franked investment income
This is a company's investment income which has tax credits relating to it.
Free−standing AVC
This stands for free−standing additional voluntary contribution. If someone is in an employer's scheme, which is not contracted out of SERPS, they can contract out themselves and pay into a free−standing additional voluntary contribution scheme (FSAVC).
Fully paid share
A share becomes fully paid when the company issuing it has received all the money due for the share.
Fund management charge
The managers of funds (such as investment trusts and unit trusts) make charges which are a percentage of the value of the investments they are managing.
Financial capability
The ability to manage financial resources effectively, understand and apply financial knowledge, demonstrate healthy money habits, and successfully complete financial tasks as planned.
Financial emergencies
Expenses that come up unexpectedly, are very important, and need attention right away.
Financial well-being
It is the ability to meet the financial needs, today and over time; that feel secure in the financial future, that absorbs a financial shock, and would have the financial freedom to make choices to enjoy life.
Fixed expenses
Expenses, like that of bills, which must be paid for each month and generally cost the same amount. There are Some fixed expenses, like that of a utility bill, that may be variable because of the amount changes each month depending on the usage.
Filing
Filing is the copy of a prospectus with the documents which is submitted to the Registrar of Companies (ROC). it is a mandatory step before a company goes public.
Firm Allotment
A company making an issue to the public can reserve a part of the total money the company under Firm Allotment. According to DIP guidelines, only a certain percentage of shares can be reserved.
Flipping
The process of buying the initial public offering and selling it at the earliest possible time as trading starts in the open market. Although it is a great way of making a profit, it is discouraged by brokers as companies need long-term investors
Foreclosure relief scam
It is a Scheme for taking your money or your house often by making a false promise of saving you from the foreclosure that comprises of the mortgage loan modification scams.
Foreign transaction fee
A fee your card provider charges when you use your prepaid card in a foreign country in order to pay in a foreign currency. This fee is a percentage of your purchase, withdrawal, or other transaction, rather than a flat fee. This is called as a currency conversion fee. Not all cards can be used outside the United States,in order to check your cardholder agreement before you travel.
Form W-4: Employee's Withholding Allowance Certificate
A form that the employee completes and the employer uses to determine the amount of income tax to withhold.
Follow on Public Offering (FPO)
Follow on Public Offering refers to the issuance of shares to a company that is already listed. In some cases, the stock issue of additional shares or fresh securities that have gone through the IPO process is made by a company. It helps in raising additional capital for the company.
Forward Price
Forward price means the specific price at which a fixed amount of a commodity is to be delivered on a fixed date in the future.
Forward Market Commission(FMC)
FMC is the earlier Regulatory Authority for commodity futures trading in India. Commodities are now monitored by SEBI. It is headquartered in Mumbai.
Fraud
This term implies that occurrence of an illegal act that when the people try to trick you to get your information about you and your money.
Face Value
The amount which appears on the face of the scrip, which is as same as the nominal or the par value of the shares or debentures.
Family of Funds
It is a group of mutual funds,in which each fund has their own investment objective, which are managed and distributed by the same company.
Feeder Fund
The funds such as mutual fund or unit trust fund that invests in other trusts which are promoted by the same manager.
Fill or Kill (Fok) Order
It is an order which requires the immediate purchase or sale of a particular amount of stock, though it is not necessary that it must be at one price. If it cannot be filled immediately, it is automatically cancelled .
Financial crisis
The Sharp, brief, ultracyclical deterioration of all or most of a group of financial indicators such as short term interest rates, asset prices such as stock ,assets and real estate , the commercial insolvencies and failures of the financial institutions.
Firewall
It is a barrier which is designed in order to prevent losses or risks which are taken in one part of a financial institution from the weakening of the other parts of the institution.
Firm allotment
The Allotment which is on a firm basis in public issues that is by an issuing company which is made to the Indian and multilateral development financial institutions , the Indian mutual funds , the foreign institutional investors including the non-resident Indians and the overseas corporate bodies and the regular employees of the issuer company.
First in/First out
It is a popular inventory cost accounting procedure where the first item manufactured is supposed to be the first one sold by the company
Five against bond spread
It is a spread in the futures markets which are created by taking the offsetting positions in the futures contracts for five-year treasury bonds and long-term (15-30 year) treasury bonds.
Fixed Asset
An item of value which is used in current operation and this be used for more than one year.
Fixed Liability
A liability of a company which is payable for more than a year hence.
Flip-Over
It is a provision in a poison pill which gives shareholders the right to buy the company’s shares (or the shares of the surviving company after a merger) at half price. It is unlike a Flip-in, a flip-over right does not become effective simply because an interested shareholder has purchased some stock.
it becomes effective when there is an interested shareholder and the company which engages in certain transactions with the interested shareholder or an affiliate, such as a merger or a sale of all or a large part of its assets. According to the history, this pill was devised several years before the more powerful flip-in. At that time the essential discrimination against the interested shareholder that the flip-in entails was widely considered illegal. Now the two are combined, even though under most circumstances the flip-in provision of the pill will dominate any of the potential bidder’s attention.
Flip-in poison pill plan
The Shareholders are often issued some rights to acquire the stock which is in the target at a significant discount normally at 50%.
Flip-in
The important trait of the most effective rights plan (position pill) in use today. It gives the shareholders the right to buy the company’s shares at half price when someone becomes an ‘interested shareholder’, that is,it crosses some stock ownership threshold such as 15% or 20%. The interested shareholder’s rights are void. Other shareholders can use every right to purchase a number of shares which are equal to the two times the exercise price which are set in advance, usually divided by the current market price of the target company’s stock. From the standpoint of a bidder, It is a complete show stopper unless the bidder can convince a court that it should intervene. we have tried to describe when the courts intervene against the poison pills which are under the Delaware law.
Flip-over Poison Pill Plan
The type of poison pill especially the anti-takeover defense. The Shareholders of the target firm are issued with the rights to purchase common stock at an exercise price which is high and above the current market price. If a merger occurs, the rights will flip over and would allow shareholders to buy the acquiring firm’s common stock at a substantial discount.
Float
The number of shares which are issued and the outstanding of a company’s stock.
Floating rate coupon
Coupon rate that varies with floats against that is a standard market benchmark or index.
Floating Stock
The fraction of the paid up equity capital of a company which then normally participates in day to day trading.
Floor
The Trading hall of the Stock Exchange where the transactions in securities take place. The trading ring Where the members and their assistants assemble with their order books for executing the order of their constituents.
Floor price
It is the minimum offer price below which the bids cannot be entered. The Issuer Company is in consultation with the lead book runner that fixes the floor price.
Flow back
The Securities that are recently placed in the markets and that are resold on the issuers’ national market. It is one of the major risks in an equity placement because it might frustrate the objective of the internationalization of the equity market and could cause downward pressure on its market price.
Foreign Exchange Rate
This is the price of one currency in terms of the other.
Foreign institutional investor
An institution which is established or incorporated outside India that proposes to make the investment in India in securities; provided that a domestic asset management company or domestic portfolio manager who specifically manages the funds raised or collected or are brought from outside India for investment in India on behalf of a sub-account, shall be deemed to be a Foreign Institutional Investor.
Fortune 500 (U.S.)
Since 1958, this Fortune Magazine has been published for a list of five hundred largest American Industrial
Corporations, which are ranked according to size of sales.
Forward Contract
It is an agreement for the future delivery of the underlying commodity or security at a particular price at the end of a designated period of time.
a forward contract is the one which is traded over the counter and its terms are negotiated individually. There is no clearing house for the forward contracts, and the secondary market may be non-existent or thin.
Forward rate agreement:
A forward contract on interest rates in which the rate to be paid or received on a specific obligation for a set period of time, beginning at some time in the future, is determined at contract initiation.
Free cash flow
It is calculated by adding depreciation to net income, and subtracting capital expenditures. It represents the cash that is available for a company to spend after financing of a capital project.
Free-rider Paradox
Sometimes the benefits and the costs cannot be allocated accurately or all to the users by the markets or otherwise. A free rider tries to take advantage of this situation. The problem here is that if everyone tries the free ride no one can and everyone is worse off. E.g. is the natural environment. Most industrial users of the natural environment are the free riders.
Each and Everyone collectively is worse off but no one would individually finds it worthwhile to stop. In takeovers, an important recent example is the basic research part of corporate research and development. It is not possible to limit the benefits from basic research to the corporation to who pays the bill. Therefore, there will be a strong temptation for the companies to take free ride. The competition in the product and the takeover market should increase this temptation.
Front Running
It is an unethical practice where the brokers are traded on an equity which is based on information from the analysis department before their clients have given the information.
Fund manager /broker
A person who buys or sells securities in advance of a substantial client order or whereby a futures or options position. this position is taken about an impending transaction in the same or related futures or options contract.
Fund of funds
It means a mutual fund scheme which invests primarily in other schemes of the same mutual fund or other mutual funds.
Fungible securities
The Securities which are easily interchangeable with another of the same class.
Futures Contract
An exchange traded contract which is generally calling for the delivery of a specified amount of a particular financial instrument at a fixed date in the future. The Contracts are highly standardized and the traders needed only to agree on the price and the number of contracts traded.
Gig
A single project or task for which a worker is hired to work on demand. Some are a type of short-term job, and some pursue as a self-employment option.
Gig economy
It is an informal term for situations where the people are often hired for the single projects or tasks or for short-term jobs, that are often through a digital marketplace.
Galla
The Cutting in rates. It is the practice of depriving a client a higher rate while selling or lowest rate while purchasing over and above the brokerage.
Garage (U.S)
It is One of the small trading areas which is just off the main trading floor of the New York Stock Exchange.
General partnership
A partnership which consists of all the general partners.
General lien
It is an attachment that gives the lender a right to seize the borrower’s property when the borrower fails to pay off his obligations or duties for the lender that are required by the law.
Gilt Edged
It is a term which is used to describe a bond, that is generally issued by the Government or issued with a Government Guarantee so much that there are no doubts about the ability of the issuer to pay the regular interest and the principal amount to the bond holders.
Gilt fund
The Fund which invests exclusively in government securities.
GLOBEX
It is a global after-hours electronic trading system.
Global Depository Receipts
Any instrument which is in the form of a depository receipt or certificate created by the Overseas Depository Bank that is outside India and which are issued to the non-resident investors against the issue of those ordinary shares or Foreign Currency Convertible Bonds of the issuing company.
Golden Handcuffs (U.S)
A contract which is between a broker and the brokerage house, that offers the lucrative commissions, bonuses and the other benefits which are as long as the broker would stay with the firm. Upon leaving, the broker must return that much of the compensation.
Golden Parachute (U.S.)
It is a generous compensation contract which is awarded by the management to themselves in the expectation of a takeover.
Golden Share
It is a share with some special voting rights which gives it peculiar power vis-à-vis the other share.This term applies to particularly the shares which are retained by the government after privatisation. If a government wishes to sell off a company in a sensitive industry and yet retain the control, it can hold on to a particular golden share. This may give it the right to veto any takeover bid.
Good Delivery
A good delivery is the one in which there is a Proper delivery by a seller to the buyer of the securities without any defect so that there can be transferred without any additional documentation.
Goodwill
The part of value of a business which is based on some good customer relations, a high employee morale and other factors.
Grave dancer
He is an acquirer who searches for the bargains that is often among the companies which are in dire of the financial straits or in the bankruptcy.
Greenmail
It is a Common practice in the United States in the merger-mad 1980s. Somebody buys a larger chunk of the shares in a company and threatens to made the hostile bid for the company. This is to buy him off. the company buys back the shares at a much higher price than the greenmailer had paid to them. So disgusted were these ordinary Americans with this practice that they had passed the legislation which imposed on an onerous tax on any profit that is made from the greenmail.
Green shoe option
It means an option of allocating shares in excess of the shares which are included in the public issue and operating a post-listing price stabilizing mechanism which is in accordance with the specific provisions in DIP Guidelines, that is granted to a company to be exercised through a stabilizing Agent
Grey Knight
The One who offers to buy the shares of the bidding company as an aid to the defence.
Gross
In connection with the dividend or the interest it means the amount which is without any deduction of tax etc.
Gross spread
The difference between the security’s public offering price and the price which is paid to the issuer by an underwriter.
Growth Fund
The Unit trusts or Mutual Funds which invest with the objective of achieving mostly capital growth rather than income. the Growth funds are more volatile than the conservative income or money market funds because of the managers who invest on the shares or the property which are subjected to larger price movements.
Guaranteed Coupon (GTD)
The Bonds which are issued by the subsidiary corporation and guaranteed as to principal and interest by that of the parent corporation.
Gun Jumping (U.S.)
Illegally soliciting orders before SEC registration is effective. Buying a security based on information that is not yet public (inside information).
Goal
Something, such as an outcome, you wish to achieve or accomplish in a specific amount of time.
Goods
These are the Objects that people want as they can touch or hold, for e.g. toys, clothes, and food.
Government benefits card
The Prepaid cards which are used by the government agencies in order to pay certain government benefits, for e.g. the unemployment insurance.
Grace period
The number of days you have to pay your bill in full before finance charges start. Without this particular period, one might have to pay the interest from the date you use your card or when the purchase has been posted to your account.
Grant
A type of financial aid that does not have to be repaid, unless, for example, you withdraw from school and you need to pay back some of the tuition money; often need-based.
Gross income
Total pay before taxes and other deductions are taken out.
Gift
A gift is a transfer of goods or property which is free of charge.
Gilt−edged securities
These are first−class securities such as government stocks or local authority stocks.
Gross domestic product
This is the value of goods and services produced by an economy over a particular time period.
Gross interest
This is interest which has not had any income tax taken out of it.
Gross profit
It is the difference between the selling price of goods and the cost incurred to buy those goods.
Ground rent
It is the rent which is created by a long−term lease of the land.
Guarantee
A guarantee is the one who need it before a bank would lend this money to a customer.
The guarantor pledges to the bank, in writing, that if the customer does not repay the debt then the guarantor will.
Guaranteed minimum pension
This is the lowest level of pension which must be paid to a pensioner, as a condition of contracting out of SERPS.
Harmonised index of consumer prices (HICP)
It is a measure of inflation ( measures the average price change from time to time in a basket of commodities and services), to compare the price movements .
It was used by European central bank across the eurozone.it was also adopted as the main measure of domestic inflation in the UK in 2004, currently which is known as the consumer prices index.
It differs from the UK's former retail price index since RPI is flawed and leads to a long-term upward bias. CPI is a more accurate measure of economy-wide inflation,in the type of consumer spending included and how it is calculated, and consequently tends to give a lower inflation figure.
Hard Currency
It is a type of currency which proves to be generally accepted throughout the world for payments on the services and goods. Nations with good economic performances and highly stable political environments typically issue such currencies.
They are trusted to be reasonably stable over the short term timeframe. These currencies must be extremely liquid on the foreign exchange, or forex (FX), markets.
HARP Program
It stands for the Home Affordable Refinance Program. It turns to be the one refinancing program which works with the borrowers who are eligible and have no or little equity in their houses so that they can receive the refinancing benefits and lower interests .
This program was initated by the government sponsored entities Fannie Mae and Freddie Mac.
Hard Inquiry
A record of a business request to see your credit report data for the objective of an application for credit. they appear on your credit report every time you complete an application for a credit card, loan, cell phone, etc.
these inquiries remain on your credit report for 2 years but they are only included in your credit score for the first 12 months.
Health Care Proxy
It is a living will.
A written document that allows an individual to designate a representative to make medical decisions on their behalf in the event when they become incapacitated due to some accident or illness.
This even identifies specific medical treatments to a person does or does not wish to have.
Health insurance
A policy that provides cover against the losses from illness or bodily injury,depending on the conditions covered and the benefits and available choices of treatment on the policy.
It can pay for medicines, visits to the doctor, hospital stays, other medical expenses and loss of earnings.
Hedge fund
A type of investment fund which uses aggressive investment techniques.this type of fund is exempted from many of the rules and regulations that govern other types of fund. Most hedge funds sets high minimum investment amounts, so it can be used by wealthy individuals and institutions.
Hedging
This technique refers to Protection against the risk of losses in one’s investment by taking up the other investment positions that will reduce the risk run by the first commitment. This will also mean investing in opposite positions or in the same or equivalent stock or markets using the complicated packages of futures and options. Though speculative, it is a cautious action which sets out to reduce the risk run by that of investor.
Hedge Account
It is an account that is established with a hedge fund.
There are many reasons why a person or business wishes to set up a hedge account. These center on the desire for investments which commonly produce higher profits or the wish to hedge, or to protect, a business’ operations from certain unpredictable and undesirable swings in market.
Helicopter Money
Helicopter money is a term which economists and market followers use to describe the monetary stimulus on an aggressive level. This is a tact that the U.S. Federal Reserve and Bank of Japan have both engaged in past.
It comprises of the ability of the government to print money and distribute it in an effort to create higher inflation.
Hidden Asset
these long-term capital assets may be unintentionally valued at original values rather than in current values .These are in the Balance sheets of firms that may include undervalued assets, resulting from recent years of high inflation and tax deductions. occassionly, the hidden assets may be of natural res that are actually unidentified for e.g., an artesian basin, petroleum reserves, or precious metals.
High Frequency Trading (HFT)
High frequency trading analyze range of markets and then place a number fast-paced orders depending on the conditions and situation in the markets
It turns out to be a platform for program-based trades. It works with the super computers that are able to run huge quantities of trading orders at incredibly fast speeds. This works with the complicated algorithms.
Highly Compensated Employee (HCE)
A highly compensated employee of an employee benefit plan is the one who receives compensation in the top 20% of all employees, and is also 5% owner of the business.this person exceeds certain annual compensation levels. This category is used for performing nondiscrimination tests. The Internal Revenue Code has determined the hce.
High Yield Bonds
High Yield Bonds are the bonds that have a lower credit rating and higher yield than those corporate, municipal, and sovereign government bonds which are paticularly of investment grade.
Because of the greater risk of defaulting, these bonds yield a higher return than those bonds which are qualified investment grade issues.
High Yield Preferred Stocks
These are special type of stocks that many companies issue. They provide investors with a different level of ownership in a given company. These preferred stocks even pay a higher dividend.
They obtain a higher priority on the earnings and assets of a company than a common stock holder would have enjoyed.
Hire-purchase
A type of legal agreement where one purchases a good through an initial deposit, then he rents it and pay the balance off in instalments plus the interest charges. When one made the final payment, the ownership of the good automatically transfers to the purchaser of the goods.
High yield
The equities or bonds which offers a high rate of return on the investment are said to be having high yield.
There is more risk attached to such kinds of investments.
High-LTV Equity Loan
A particular kind of home loan which results in your loan-to-value ratio to be 125% or more.
When the total principal of a loan that a borrower undertook leave the borrower with debt which exceeds the fair market value of the home,that is the principal sum, the interest paid on the portion of the loan above that value will not not be tax deductible.
HM Treasury
It stands for Her Majesty’s Treasury. This treasury is the United Kingdom’s finance and economic ministry.
It keeps control on the public spending and lays out the direction for the economic policy of the Great Britain.
Among its important instructions is to work towards a sustainable and strong level of the economic growth.
Holding Company
Holding Company refers to a parent company,a limited partnership, or a limited liability company.
The firm control a majority of the voting stock shares in the subsidiary company so as to dominate its management and corporate decisions. The sole objective is to control other companies. These held firms can also be limited partnerships, corporations, or limited liability.
Holdings
Holdings are the asset contents in a given portfolio that an entity or individual possesses. These assets include stocks, mutual funds, bonds, futures, options, ETF exchange traded funds, and private equity assets. These positions can also include all sorts of different investment assets and classes.
Pension funds , mutual funds are good examples of organizations that have holdings.
Home Affordable Modification Program (HAMP)
It stands for the Home Affordable Modification Program. In order to assist those homeowners who were struggling to keep up with their mortgages, so the United States government started this program. This was meant for any homeowners whose financial conditions have deteriorated since they originally purchased their house.
Home Equity
This refers to those assets which results from the home owner’s stake in the house itself.
To Calculate the equity of the home is not difficult. One simply takes any remaining loan balances and then subtracts them off from the market value of the property.
It is possible for the equity in a home to grow up with time.
Home Equity Line of Credit (HELOC)
A home equity line of credit represents a feasible alternative to the more commonly used home equity loan. Whereas the home equity loans should provide the lump sum amounts,this provide cash as and when the borrower needs it.
Home Equity Loan
A home equity loan is a good loan for the home owners who wishes to borrow money using the value of their house. These loans are much simpler to get approved off than with many competing kinds of loans .Borrowers find these loans attractive because they can borrow significant sums of money.
Hostile Takeover
A hostile takeover refers to a negative type of acquisition which involves a buying company and a takeover target.
Technically there is no difference between the concepts of friendly acquisition and hostile takeover. But,when the word takeover is used, it generally means that the targeted company is not a willing to be a participant in this process.
Household Income
Household Income refers to the total income which is earned by all of the family members who are living in a single house. A point to be noted over here is that the individuals who are living together do not have to be related at all so as to be considered to be a part of the overall household. This is a crucial measurement for the calculation the age of all the members must be fifteen years or older for their income to be counted.
HSBC
HSBC stands for Hong Kong Shanghai Banking Corporation. This largest international bank in the world by balance sheet has over $1.63 trillion in total assets. This banking giants counts for more than 47 million customers as a part of the international network which is spanning over 71 countries and territories and 6,000 offices across the globe .
Home Ownership and Equity Protection Act
This is a law which is designed in order to discourage the predatory lending in mortgages and home equity loans.
Housing Expense Ratio
The ratio states that the percentage of your monthly pre-tax income that goes toward your house payment.
The general rule is that the ratio must not exceed 28%. This is also known by the name the “front ratio.”
Home Sale Exclusion
A Federal tax exclusion which is available to each taxpayer on the profit of the sale of a primary residence.However there are a number of requirements that must be met in order to use this exclusion either partially or in full. The deduction amount is contingent upon the current tax laws and the marital status of the person.
Hope Credit
This tax credit gives the families for students ,a tuition credit per student per year for the first two years of the post-secondary education.
Housing Ratio
Also called the front-end ratio or payment-to-income ratio, this ratio compares the monthly housing payment to total monthly income.
Home Equity
The difference between a property’s current market value and the sum of all of the claims against the property.
For example, a homeowner with a house which is currently valued at $400,000, and carrying a $300,000 mortgage, has $100,000 in equity.
Hostile bid
one company attempts to purchase the shares of another company.
the directors of the targeted company do not recommend to the acceptance of the offer.
Human Capital
It is the knowledge possessed by a worker, including the skills that are learned during the schooling and the past experiences, that forms the human capital of a business.
the Better skills and the more knowledge a worker would have it would result in the increase of the income ,productivity and efficiency.
Hypothecation
It is use of a property to secure a loan without a deed or title transfer.
In the event of default in payments, the property has to be transfers to the lender.
hybrid debt
It is a means of borrowing from market.
It is called “hybrid” cause it combines the features of two or more financial securities.
Hyperinflation
I hyperinflation proves to be inflation, or rising prices over time, that is extremely high and even beyond controlling. This state of the economy exists as the overall levels of pricing in a certain country are rising sharply and quickly at the same time as the actual values of these economic goods remain roughly the same instruments.
Identified Shares
These are the Stock or mutual fund whose purchase date and price can be identified for the capital gains and tax purposes when the shares are sold.
Idiosyncratic Risk
The risks are of two types one is systematic risks and the other is Unsystematic risk.this unsystematic risk or risk that is uncorrelated to the overall market risk. In simple words, the risk which is firm-specific and that can be diversified through holding of a portfolio of stocks.
Illegal Dividend
A corporation's dividend which is declared in violation of its charter and/or of state laws, specially because of the way it is calculated.
Illiquid
In finance, the absence of cash flow which are needed to fulfill the financial debts and meet the obligations. In the investments, it describes a lightly traded investment such as a stock or bond that is not easily converted into cash.
ILS
The currency code for the Israeli Shekel.
Import
imports are the act of bringing goods and services into the nation. It originally came from the concept of bringing things into a port through ships.goods that were produced in one country and are utilized in another country .
Import Quotas
These are the numerical restrictions imposed by a government of one country on the imports of another competing nation.
The main objective of such quotas lies in decreasing imports while boosting a country’s own inherent domestic production.
Prime ministers make in india is one of the quotas. With the numbers of imports restricted, the price of these imports will definitely increase. This will then fosters the production, purchase, and consumption.
Imbalance Of Orders
it is Used for listing of the equity securities. There are many market orders of one kind-buy or to sell or limit orders to buy up or sell down, without matching orders of the opposite kind.this imbalance follows a dramatic event such as a takeover, research recommendation, or death of a key executive, or a government ruling that significantly affects the company's business. If it occurs before the stock exchange opens, the trading in the stock is delayed. If it occurs within the trading day, the specialist halts and then suspends trading with the floor governor's approval until there are enough matching orders that can be found to make an orderly market.
Immediate Family
This is the Term that is used in the NASD rules of fair practice.it refers to one's parents, brothers, sisters, children, relatives supported financially, father-in-law, mother-in-law, sister-in-law, and brother-in-law.
Immediate Or Canceled Order (IOC Order)
the Market or limited price order that is to be executed in whole or in part as soon as such order and it must be represented as in the trading crowd. The portion which is not executed is to be treated as canceled. A stop is considered to be an execution .
Immediate Payment Annuity
it is An annuity contract which is paid in a single payment and with a specified payment plan that starts immediately after the contract is purchased.
Immediate Settlement
the Delivery and settlement of securities within a specific time period that is five business days.
Immunization
This is the construction of an asset and a liability match .this benefits from the offsetting changes in value.
Immunization Strategy
It is a bond portfolio strategy whose objective is to eliminate the portfolio's risk, in case of a general change as in the rate of interest, throughout the use of duration.
Impaired Capital
the capital is said to be impaired when a company's total capital is less than the par value of all its capital stock.
Impaired Credit
the Result of a borrower's reduced credit rating.
Imperfect Market
the Economic environment in which the costs of labor and other costs are used for productionin order to encourage firms to use substitute inputs that less costly.
Implicit Bankruptcy Costs
The Opportunity costs which are incurred prior to the bankruptcy process.for example the loss of sales or financing.
Implicit Tax
The Lower or higher before-tax that is required returns on the assets which are subjected to lower or higher tax rates.
Implied Call
This is the right of the homeowner in order to prepay, or call,or any mortgage at any time.
Implied Repo Rate
The rate which a seller of a futures contract can earn by purchasing an issue and then delivering it at the settlement date.this is the Cheapest to deliver issue.
Implied Volatility
To measure this one should use an option pricing model such as Black-Scholes. This is the expected volatility in a stock's return which is derived from its option price, maturity date, exercise price, and riskless rate of return.
Income Distribution
This is a main concern of the study of economics and its related governmental economic policies.
Income distribution is one way that a country’s entire gross domestic product is actually shared among all the members of the population.
Income Statement
An Income Statement is basically a profit loss statement of a company. Analysts measure such performance through reading the summary of the business revenues and expenditures in its non-operating and operating endeavors together.
It reveals the net loss or net profit which the business might experience in the particular accounting.This relays the performance of the company for a particular accounting time frame.
Income Tax
Income tax refers to the tax imposed on the income of all the personal and business entities and organizations which reside or are based in their jurisdiction.This tax is imposed by the government and it is mandatory for each and every individual to pay these taxes.
The law states that both individuals and businesses have to file their income tax returns once in each year. These filings show if they owe the government taxes or are instead able to claim.
Indemnity
This word comes from the original Latin word indemnis which means “without loss” ,“undamaged” or “unhurt.” The main idea behind it springs from the premise of a contract between two groups, businesses, or individuals.
One party will invariably promises to cover for any possible damages which he is obliged to.
Indemnity refers to the financial compensation for losses or damages which are incurred by an individual or business.
Index Funds
Index funds are ETFs that is exchange traded funds or mutual funds. Their objective is to reproduce the actual movements of an underlying index for a particular financial market.
It does not matter whatever is happening in the overall stock markets. There are various means of tracking such index. the way of doing this is by purchasing and holding all the securities.
Individual Retirement Account (IRA)
An IRA stands for Individual Retirement Account.
They offer two types of savings for the retirement. They can either be tax free or tax deferred retirement plans.there are numerous different types of accounts which exist. These are principally either traditional and standard IRA’s or both IRA’s as the most popular types.
Inequality
Inequality refers to a form of social ill that happens across countries as the national res has become unfairly and unevenly distributed. There is unequal Distribution of socially demanded goods occurs because of societal forces including religion.
This happens as the normal allocation occurs and creates classes of haves and have not’s.the Patterns of re distribution typically occur according to social categories.
Inflation
Inflation proves to be the prices rising over with time. It is specifically measured as the increase in a given basket of goods and services’ prices. These goods and services are taken in order to represent the entire economy.
Inflation is the cost of the average prices of goods and services rising up .Previously it was measured by retail price index and then It is measured by the CPI, or consumer price index.
Inflationary Bias
Inflationary Bias is the one in which the vast majority of central banks and the sovereign nation policy makers pursue.This is opposite of deflationary bias.
Both of these are government monetary and fiscal policy prejudices. Governments are forced to take one of two positions with reference to their monetary policy and interventions in an economy.
ING Group
The ING Group is the largest Dutch and Benelux based bank in the world. The acronym ING translates to the International Netherlands Group in English. This global bank and financial institution draws on its important European base to provide services on a global scale. Their customers include governments, institutions, major corporations, smaller businesses, families, and individuals.
Initial Coin Offering (ICO)
An Initial Coin Offering refers to a non-regulated process in which the funds for new crypto-currency projects are raised. These allow the entrepreneurs to sidestep the heavily regulated process of raising capital through more traditional means that comprise of the banks, venture capital, angel investors, or IPOs initial public offerings on stock.
Initial Public Offering (IPO)
An IPO is the acronym for an Initial Public Offering.This is one way of raising funds from the public. Private companies decide to issue IPOs.These IPOs represent the first opportunity for most investors to start buying shares of stock in the firm in question.
Initiative for Policy Dialogue (IPD)
The Initiative for Policy Dialogue, is a Columbia University based American non-profit organization of global economic reach and importance. In this endeavor he had the financial support of such important heavyweight groups as foundations and governments.
Joseph E. Stieglitz the famous Nobel winning laureate in economics founded the group back in July of 2000.
Insider Trading
Insider trading is a negative term, though it can also refer to a legal activity. This depends on the timing which is involved in such a trade that often determines whether it is legal or illegal.
It is termed as illegal when it involves a person purchasing or selling a security when they have information that is not publicly available on the stock.
Insolvency
Insolvency leads to the liquidation of a company.it is a point in an individual, business, or even governmental organization’s life when it is not able to cover the financial obligations it was supposed to perform ,any longer.
It is not able to settle the debts with its creditors and lenders. Before this, an indebted individual, company, or government does become involved in any type of insolvency.
Institutional Investor
Institutional investors are the organizations or occasionally individuals who buys and sells securities in huge quantities and currency totals. These powerful deep pocketed and money holders investors experience few regulations from the regulatory agencies than those who naturally assume than the other investors.
They get profit from lower fees and commissions charges and also get special treatment from the market makers.
Insurable Value
Insurable value represents the level of coverage which an insurance policy provides. In the event of some damage caused to the insured the company will pay the amount to the investor.They typically assign these values to the policies .example of such a policy is home insurance.
Insurance Broker
Insurance brokers are the intermediary parties who are in between the insurance companies and insurance buyers.
They are not the same as the insurance agents.
Insurance agents represents the insurance company while the Insurance brokers represents the consumers or businesses as insurance buyers.
Intangible Assets
Intangible assets are the company’s possessions.intangible means an object which cannot be touched. Thy are also invisible.These types of assets can not be physically measured. They are difficult to quantify for several reasons. They also represent an unknown or undetermined cash value to a company. There are various criterias for an asset to be considered as intangible.
Intellectual Property
Intellectual property, is the concept that is having to do from the creations of a person’s mind. Intellectual property includes copyright,patents and trademarks.The ownerships of such property are recognized as the rights can be possessed, bought, and sold. they have also given rise to the relevant fields of law such as intellectual property rights.
Interbank Market
It refers to the modern day financial system that involves banks trading in cash and other instruments with other financial institutions and banks.
It is possible for the interbank trading that is to be pursued by the banks for the benefit of their bigger customers, yet in general as trading. This never comprises the banks trading money with non-financial businesses, consumers, or retail investors.
Interest Rate
Interest rates are the levels at which the interest is charged on a borrower for using money that they obtain in the form of a loan from a bank or other lender. These are also the rates that the individuals and businesses are paid for depositing their funds in a bank. they are central to the running of capitalist economies.
Interim Financing
It is a particular way of obtaining funding on a short term basis for a particular project. It is called as a gap financing or bridge financing. The People or companies elects for this kind of financing for a particular purpose. They may be seeking to get funding in order for a project that can be finished and start creating revenues.
Internal Rate of Return (IRR)
The IRR is the acronym for internal rate of return.
This proves to be the capital budget rate of return that is utilized so as to determine ,compare and contrast several investments’ profitability. It is sometimes known as the discounted cash flow rate of return alternatively, or even the ROR, or rate of return, Where the banks are concerned.
Investor
an investor is any person or entity who makes an investment.
The individuals or companies that routinely buy debt instruments like bonds, or equity issues like stocks in an attempt to make financial.
Income
It is the amount which is received from all , including wages, commissions, bonuses, Social Security and other retirement benefits, as well as the unemployment compensation, disability, interest, and dividends.
Income Fund
Income fund is A mutual fund with the purpose of paying a higher-than-average rate of return by concentrating in securities not generally favored by other investors.
Income funds are generally that invests a high percent of their assets in bonds.
Index
A theoretical portfolio of securities which represents a particular market or a portion of it.the Indexes are used to measure the amount of change in a particular security by comparing it to the change of similar companies. There are Some well-known indexes such as the New York Stock Exchange Index (NYSE), the Standard & Poor’s 500 Index (S&P 500), the Russell 2000 Index, and the Value Line Index.
Index Fund
It is a mutual fund which attempts to match the performance of a market index by patterning the portfolio on the index. Index funds assume that it is impossible in order to consistently outperform the market.
Individual Retirement Account (IRA)
A tax-deferred retirement savings account that allows individuals to contribute a limited amount per year. A traditional IRA may allow individuals, depending on their income and participation in employer-sponsored retirement plans, to deduct part or all of their contributions on their tax returns. Withdrawals made after age 59½ are taxed at the current tax rate. In contrast, Roth IRAs allow individuals to withdraw earnings tax free anytime after the age of 59½, but the initial contributions are taxed.
Individual Retirement Account (IRA) Rollover
Individual Retirement Accounts may be the recipient of eligible IRA fund transfers. An IRA Rollover permits continued tax-deferred accumulations on transferred funds and avoids the early withdrawal penalty.
Inflation
This is the general rise in the prices of goods and services that occurs when the demand increases in relation to the supply. it is measured by the Consumer Price Index (CPI) and the Producer Price Index. As a result of this inflation, the purchasing power of the dollar decreases.
For example, if the inflation occurs at 3% annually, $1000 in one year would be worth only $970 in the next.
Inflation-Indexed Security
This is An investment, such as a bond or Treasury note, which promises a return greater than inflation if it is held until maturity.the Inflation-indexed funds are mutual funds that invest in inflation-indexed securities.
Installment Loan
A loan which is repaid in equal payments over specific time period and according to a set schedule. The Payments comprises of the principal plus interest.the Examples of installment loans include home equity loans, auto loans, and student loans.
Insufficient Funds (NSF)
When the bank account does not have enough money to cover a specific cheque, it is said to have insufficient funds.
Insurability
The ability of an insurance applicant to be accepted by an insurer, based on the health, occupation, lifestyle, and finances.
Insurable Interest
Insurable interest refers to a potential beneficiary who has a vested the financial interest in the life of another person and who can suffer loss upon their disability or death.
Insurance Age
This is the age of the insured at a particular time of application. There are two methods which are used to compute insurance age.
First is the carriers ascertaining the insurance age as the present age of the applicant.the second method is to use the age to the nearest birthday.
Insured
He is An individual who is covered by an insurance policy.
Integrated Plan
An employee pension benefit plan is the one which may be included for the benefit calculations with the Federal Insurance Contribution Act (FICA) benefits, also known as the Social Security, or with Old-Age, Survivorship, and Disability Insurance (OASDI) contributions.
Intellectual Capital
A representation of the financial value that human innovations, inventions, and intelligence bring to a business enterprise.
Inter Vivos Trust
It is Also known as a living trust. A trust which is created during a grantor’s lifetime in which the grantor has the authority to revoke or change the trust until their death. Upon the death of the grantor, the trust will becomes irrevocable. In contrast, a will might contain a testamentary trust which comes into existence only when the probate court authenticates a deceased grantor’s will and the provisions become irrevocable.
Interest
The cost of borrowed money. It is the payment you would receive from an investment like a bond, or the amount you pay for a loan, which is generally a percentage of the total amount borrowed. For example, if you take out a $5,000 loan for a year at 9% interest, the cost of taking the loan would be 9% of the total amount borrowed—$450. Also, the term interest can refer to a right or share in an asset or property
Interest Rate
The cost of borrowed money expressed as a percentage for a given period, usually one year, is an interest rate. Interest rates are considered by many to be key economic indicators. The Federal Reserve (The Fed) regulates interest rates. The Fed may lower interest rates—making borrowing money less expensive—in an effort to stimulate growth in the economy, or it may raise them—making borrowing money more expensive—in an effort to slow economic growth.
Internal Rate of Return (IRR)
The internal rate of return is, the compounding interest in reverse, or discounting. In general sense, the higher a project's internal rate of return, the more it is desirable to undertake the project. The rate of return on a proposed investment must be equal to the present value of all future benefits, including the revenues, as well as the gross costs which are associated with the current property investment. IRR is important in planning of the capital outlays, as well as in evaluating the rental real estate investments.
International Fund
A mutual fund which can invest in companies that is located anywhere outside of its investors' country of residence. International funds, that may be invested in the emerging markets of developing countries, more established economies, or a combination,should manage foreign currency trends, as well as trends in the securities markets.
Inventory Turnover
The Increases of sales in relation with the inventory indicates inventory turnover or an inventory utilization ratio. A decline in sales, or low inventory turnover, might adversely subject to an inventory item to falling prices, indicates a decline in market effectiveness, indicate a lack of an enthusiastic, efficient, or productive sales force, or lower overall rates of return because unsold inventory items have a potential to decrease the total financial return.
Inventory Valuations
This is the original price that is paid or existing fair market value of all the inventory items.
Investment Grade
A bond rating which is evaluating the likelihood that the bond issuer will meet its payment responsibilities in full and on time. Bonds rated BBB and is higher by an independent agency are considered investment grade.
IRA Custodian
An IRA custodian is commonly represented by some form of a financial institution. This would likely be a brokerage or a bank. These Individual Retirement Accounts’ custodians have the job of protecting your assets in your IRA. Per the rules of the Internal Revenue Service, such IRA custodians have to be financial institutions that are approved. People can not choose.
iShares
iShares are a group of ETF’s, or exchange traded funds, that are by BlackRock.they are traded on the stock exchanges. The first iShares were called WEBS, or World Equity Benchmark Shares. They were later renamed iShares. This iShares proved to be the biggest ETF issues.
Itemized Deductions
Itemized Deductions are the amount which is subtracted off from an individual American’s adjusted gross income. It is theIRS Internal Revenue Service that decides what deductions specifically will be permitted as outlined.
These deductions are comprised of money the individuals spend on some services and goods that officially qualify during the tax year in question.
Joint Account
An account which is shared by two or more people. Each and every person on the account is legally responsible for the debt and the account will be reported to each person’s credit report.
Judgment
A decision from a judge on a civil action or lawsuit that is usually an amount of money a person is required to pay in order to satisfy a debt or a penalty. The Judgment records remain on your credit report for 7 years and then harm your credit score significantly.
Jitney
It Describes a situation where one broker who has direct access to a stock exchange performs trades for a broker who does not have any access. It is considered to be A fraudulent activity in the penny stock market. It occurs when two brokers work together by trading a stock back and forth to rack up commissions in order to give the impression of trading volume.
Joint Credit
This is the Credit which is based on the income, assets, and credit history, generally of a couple.
Although combining may help both the applicants obtain a higher line of credit than either could have attained individually, if one person fails to pay on the debt, a creditor may hold the other one liable, even if the couple is separated or divorced.
Joint Tenancy
joint tenancy with the right of survivorship, this form of property ownership involves two or more people who own an undivided interest in a property. Upon the death of one joint owner,the ownership automatically passes to the surviving joint owner(s) without a court proceeding.
Join
It is to set or bring together, connect,or combine in order to come to a junction with,and become part of.
Journal
It refers to a book for recording daily transactions. in double entry bookkeeping, the use of a formulaic style in order to ensure their correct entry in a bookkeeping ledger.
Journal Entry
An entry which is made into the Journal.this is mainly in the form of debit and credit.it is to record and maintain daily transactions of a firm.
Journalize
It is To make an entry in a journal. To write or describe in a journal.
Jobber
Member brokers of a stock exchange who specialize, by giving two way quotations, in buying and selling of securities from and to fellow members. Jobbers do not have any direct contact with the public but they serve the useful function of imparting liquidity to the market.
Jobbers Spread
The difference between the price at which a jobber is prepared to sell and the price at which he is prepared to buy.
A large difference reflects an imbalance between the supply and the demand.
J-curve
The shape of the trend of a country’s trade balances following a devaluation.
A lower exchange rate initially means cheaper exports and more expensive imports, making the current account worse That is a bigger deficit or smaller surplus.
After a while, though, the volume of exports will start to rise because of the lower price to the foreign buyers, and domestic consumers will buy fewer of the costlier imports.
slowly, the trade balance will improve on what it was before the devaluation. if there is a currency appreciation there may be an inverted j-curve.
Job search
The time taken in order to find a new job. Because some people will devote all their time to this search, there will always be some frictional unemployment, even when there is otherwise full employment.
Joint supply
There are some products or production processes which have more than one use. For example, cows can both provide milk and be eaten.
If farmers increases the number of cows they owned in response to an increase in demand for milk, they are also likely to increase, the supply of meat, which causes beef prices to fall.
Joint float
It is an expression for the currencies that are tied to each other in the foreign exchange market but then they freely float against the third currencies. Joint venture
It is a business agreement between two or more parties that agree to set up a new entity by contributing jointly to the equity. They operate on the new firm or project and share the costs, revenues, profits and assets of the enterprise.
Joint Account
An agreement between two or more firms to share the risks and the financing responsibility in purchasing or underwriting securities, or an account which is owned jointly by two or more persons at a bank or brokerage house.
Joint And Survivor Annuity
It is a type of annuity opened by and intended for two people, which makes payments for the entire lifetime of both of the beneficiaries, even when one of them dies.
Joint Bond
A bond which is guaranteed by the issuer and a party other than that of the issuer.
Joint Clearing Members
The Firms that clears on more than one exchange.
Joint Float
It is an arrangement by which a group of currencies maintain a fixed relationship relative to each other, but they move jointly relative to another currency in response to supply and demand conditions in the exchange market.
Joint Stock Company
A form of business organization that falls between a corporation and a partnership. The company sells stock, and its shareholders are free to sell their stock, but shareholders are liable for all debts of the company.
Joint Tax Return
This is the Tax return which is filed by two people,that are usually spouses.
Joint Tenants With Right Of Survivorship
In case of a joint account, on the death of one account holder,the ownership of the account and the assets are then transferred to the remaining account holder or holders.
Jointly And Severally
The Municipal bond underwriting in which the account is undivided and the syndicate members are responsible for the unsold bonds which are in proportion to their participation, regardless of how many bonds they may have already sold.
A firm with 30% of the account is responsible for selling 30% of the unsold bonds even if has already sold 35% of the total debt issue.
Job Lot
This is A form of contract that has a smaller unit of trading than is featured in a regular contract.
Jobber
It is a term which is used for a market maker on the London Stock Exchange.
JOD
The currency code for the Jordanian Dinar.
Johannesburg Stock Exchange (JSE)
it is established in 1886.
the Johannesburg Stock Exchange is the only stock exchange in South Africa.
In this stock exchange the Gold and mining stocks form the majority of shares listed.
Joint And Survivor Annuity
A type of annuity opened and intended for two people, that makes payments for the lifetime of both of the beneficiaries, even though one of them dies.
Joint Bond
A bond which is guaranteed by the issuer and a party other that of the issuer.
Joint Clearing Members
the Firms which clears on more than one exchange.
Joint Float
it is an arrangement in response to the supply and demand conditions in the exchange market and by which a group of currencies maintains a fixed relationship relative to each other, but move jointly relative to another currency
Jonestown Defense
An extreme defensive tactic that is employed by the management of a target corporation in order to prevent a hostile takeover. The defensive tactics are so extreme that they will lead to the destruction of the target corporation.
Jumbo Bonds (U.S)
It is a certificate of deposit that are issued by a bank or savings and loan association for a huge amount that is usually for a period of a year or less.
Just in time (JIT)
It is a production strategy which aims to increase a firm's profitability by producing goods just as they are being ordered. This minimizes the need to hold the stocks of goods and the associated costs such as storage.
Jumbo Mortgage
A loan which exceeds the limits set by Fannie Mae and Freddie Mac (usually when the loan amount is more than $200,000-400,000).It is also known as a non-conventional or non-conforming loan, these mortgages normally have a higher interest rates than standard loans.
Jumble
To mixed in a confused mass, this is to put or throw together without order.
Jurisdiction
This is a Lawful right to exercise official authority, whether executive, legislative, or judicial. Junior Mortgage
A secondary or tertiary mortgage of lower claim value than the primary or first mortgage by a creditor. In the junior mortgage agreement the lender normally confirms that his or her claim will always be lower in rank to the other senior outstanding debts.
Junk Bond
It is also known as a high-yield bond. A debt security with a credit rating that is below the investment grade.
Junk bonds, are often issued by the companies with questionable credit, and they tend to generally pay higher yields than investment grade bonds, but will carry a greater risk of default.
Junior Issue
it is a debt or equity issue from one corporation over to another corporation and in which the issue of another firm takes precedence with respect to the dividends, interest, principal, or security in the event of liquidation or winding up of the company.
Junior Mortgage
A mortgage which will be satisfied only after more senior mortgages have been satisfied. For example., a first mortgage will be satisfied foremost to a second or a third mortgage.
Junior Refunding
this is Issuing of new securities to refinance government debt which gets matures in one to five years.
Junior Security
A security which has a lower-priority claim on a company's assets and income than a senior security.
For example a common stock is junior to preferred stock.
Jury Of Executive Opinion
It is A method of forecasting using a composite forecast prepared by a number of individual experts. The experts will form their own opinions initially from the data given, and revise their opinions according to the others' opinions.then, the individuals' final opinions are combined.
Kaikaku
It is a Japanese word which means ‘radical change.’ It is related to making drastic changes within a production system.
It is opposite of Kaizen.
Kaizen
A Japanese word, which means ‘improvement’ .it is related to making change for the better that means taking many small steps to improve and make changes within a system. It is opposite of Kaikaku.
The major difference between kaizen and kaikaku is For Kaizen to work, it should involve every person in the company, i.e., all the employees, while kaikaku is an approach in which we take drastic measures so that it affects the whole company.
Kamikaze Defense
A strategy that a target company takes when a hostile bidder tries to acquire it. The target company may either sells its good assets, raises its debt levels, or buys some undesirable assets. In Simple words, it makes itself less attractive.
Kano Model
A theory on the customer satisfaction and the product development.
Prof. Noriaki Kano has developed it in the 1980s. It categorises the customer preferences into five different categories.
Kano Model Analysis
An analysis technique,which the makers of the goods and providers of services use in order to assist in differentiating product and service features.
It is an analysis of consumer preferences which are based on the Kano Model
Kansei Engineering
An engineering which is based on the human feelings.
it is a method for translation of human feelings and impressions into the product parameters. In simple words making goods which are not only technically good, but they also make us feel good.
KCommerce
KCommerce stands for knowledge commerce It refers to the trading of knowledge especially online.
In simple words, the sharing of knowledge online and making money in that process. It is a huge global industry which is growing rapidly.
Keogh Plan
A tax deferred defined benefit or a contribution plan which is established by a self employed individual for himself or herself and his or her employees.
Keepwell Agreement
A contract in which the parent company decides to keep its subsidiary solvent for a particular period. This means making sure that it can pay back its debts on time,it has certain financial ratios, and levels of equity according to the standards. A keepwell agreement that boosts the subsidiary’s creditworthiness.
Keller Plan
A personalized learning method in which each learner works at his or her own pace. Students receives learning material in small units. In order to move onto another unit, they should pass an exam.the Instructors in this plan are like facilitators.
Keyboard
A panel of keys that we use for writing letters and numbers. The Keyboards which exist on laptops, communication devices, and typewriters. They do also exist separately and are connected to desktop computers. A piano keyboard consists of black and white keys.
Keating Five
The Keating Five refers to the corruption scandal of 1989. At that time, there were five important United States Senators who were accused of corruption related to the Savings and Loan crisis in 1989. This political scandal came in order to represent all that Americans found (and still today find) wrong with their nationally elected congressional representatives.
Key Employee
someone who is important for the wellbeing of a company or organization. We can also use the terms ‘keyman‘ and ‘key personnel.’ If a key employee leaves, the company might suffer significantly. The Key employee insurance objective is to protect the company if a key person leaves, dies, or becomes disabled.
Key Person Insurance
An insurance policy which an employer takes out in order to protect himself/herself if it loses a key employee. The policy that pays out a lump sum if the key person gets ill, and he becomes unable to work, or gets chronically or terminally ill. We can also call it keyman(key man) insurance or key person protection
Key Performance Indicator (KPI)
It is vital for any organization to start out by deciding on its mission in order to achieve their goals. Once they have done this effectively, they can decide on the best means of measuring their incremental progress to reaching their objective.
Key Performance Indicators are the measurements which aid companies and other organizations in assessing the progress that they are making towards their key goals.
Keynes, John Maynard
He is a British economist, journalist, and financier. He believed that the governments should intervene in the economy during the recessions and depressions. He insisted that the aggregate demand was the driver of economic expansion and employment growth.
Keynesian Economics
Keynesian economics is the economic theories of John Maynard Keynes, who has led the idea of the economic performance which is calculated by aggregate demand (an economy’s net spending).the Keynes’ approach was used by several governments following the 2008 global financial crisis.
Keynesian Theory
A school of thought initiated by John Maynard Keynes that aggregate demand drives the economy. He believed that the governments should intervene to stabilize the economy and achieve full employment. The Keynesian theory, that emerged during the Great Depression of the 1930s, has turned economic theory on its head.
Keystone Markup
It is a gross margin of 100% that is when you sell something. If you will sell a product for $100 and it will cost you $50, it means that it has a keystone markup or keystone pricing
Keyword
A word that we include in web pages so that the search engines can present them in response to a particular search query. A word which the search engines like firefox sell to the advertisers. The main word, one that we use a lot, or a word that defines a subject matter. In the art of cryptography, we use a particular keyword as a key.
Kickback
The term which may refer to a bribe, the recoil of a gun when it fires, or a physical exercise movement.
When the terms of a bribe or backhander, the payer wants the receiver to do something which is not legal or not ethically right.
Kinesic Communication
A nonverbal language depicting the movement of our bodies. When we speak, our words will convey only a part of the message.the non verbal language that is our gestures, eye movements, facial expressions, and posture will also influence the message.the Kinesic communications or kinesics is something related to what our body is doing when we communicate.
Kerb Trading Or Dealing
Curb Trading
KES
The currency code for the Kenyan Shilling.
Key Industry
An industry which plays a critical role in the nation's economy.
Key Man (or Woman) Insurance
It is a life insurance policy which is purchased by a company to insure the life of a key executive. The company is the beneficiary in relation to the case of the executive's death.
Keynesian Economics
An economic theory of British economist, John Maynard Keynes that the active government intervention is much necessary to ensure economic growth and stability.
KG
This is the country code for KYRGYZSTAN.
KGS
This is the currency code for the Kyrgyzstan Som.
KH
The country code for CAMBODIA.
KHR
The currency code for the Cambodian Riel.
KI
The country code for KIRIBATI.
Kickback
In finance,it refers to compensation of dealers by the sales finance companies for discounting of the installment purchase paper.
Kicker
It is an additional feature of a debt obligation which increases its marketability and attractiveness to the investors.
Kiddie Tax
This is the Tax that is owed for the investment income of children and if the amount is more than $1,400.
Killer Bees
These are people who help a company in fending off a takeover bid, that is often the investment bankers who make the strategies in order to make the target less attractive or more difficult to acquire.
Kiting
Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank. Also refers to illegally increasing the face value of a check by changing the numbers on the check. In the context of securities, refers to the manipulation and inflation of stock prices.
KLCE
It stands for the Kuala Lumpur Commodities Exchange
KLOFFE
It stands for the Kuala Lumpur Options and Financial Futures Exchange.
KLSE
It stands for Kuala Lumpur Stock Exchange
KM
The country code for COMOROS.
KMF
The currency code for the Comoros Franc.
KN
The country code for SAINT KITTS AND NEVIS.
Knockout Option
It is an option which is worthless at the expiration if the underlying commodity or currency price reaches to a specific price level.
Kiosk
This is a freestanding retail unit in a shopping mall aisle or a cubicle or hut which sells newspapers outdoors.the Kiosks are those cubicles or stands that provide information or promote something in a conference or exposition. they provide tourists with information in many towns, cities, and resorts. In the UK, people say a ‘telephone kiosk’ or a ‘telephone booth’.
KISS Principle
the principle that states simple things can do better than complicated things. KISS stands for Keep It Simple, stupid The KISS principle is considered to be crucial in the business, science, and many other aspects of life.
Kitting
This is the process of providing a person or thing with the right aqnd appropriate equipment, articles, or clothing. In other words, getting the ‘kit’ together for the purpose of shipping.
Kleptocracy
It is a country whose leader, politicians and public officials use their powers of state to steal money and res for their own personal gain in order to line up their pockets. These dishonest people are known as kleptocrats. They will feather their nests at the expense of the taxpayer and other citizens.
Kluge
It is a program, system, or machine which has been badly put together. It is a clumsy but temporarily effective solution to a specific fault or problem. We can use the term in computer technology, neurology, and aeronautics.
Knock In Option
It is an option contract which only activates when it reaches a particular price level. It should hit that the price before the contract expires. If it does not reach that price, it has becomes extinguished. It is in contrast of a knockout option
Knock Off
The term knock off means to finish work, hurt somebody, kill somebody, or stop doing something.This means a product which is a cheap copy of the original. the Knock off prices means low prices.
KnockOut Option
It is an option contract .
it gets deactivates as soon as it reaches or exceeds a certain price. It is in contrast of the knock in option.
Knot
It is a tangled mass of hair, wool, or similar material or a fastening that is made with string or rope.
We measure the speed of ships in knots. One knot equals 1.115 miles or 1.85 kilometers. To knot means to fasten a piece of rope or string or to tangle something.
Know How
The skills, knowledge, and abilities which people have that help them do things. It refers to our ability to accomplish things successfully. It is the ability of the human brain in order to perform a task. Knowhow is not easy to pass on because it is hard to explain verbally.
Knowledge Capital
It refers to the methods, valuable ideas, and other intuitive talents that belong to a company or organization. We also call it knowledge assets and intellectual capital. It comprises, of the human capital, structural capital, and relational capital.
Knowledge Creation
The knowledge creation is the transfer combination or conversion of different kinds of knowledge as users interact, learn, and practice. It is a product of the interplay between knowing and knowledge.the Companies which know how to promote knowledge creation and manage that information has a strong competitive advantage.
Knowledge Economy
It is an economy where the creation, production, and use of knowledge are paramount. It is an economy that buys and sells knowledge. Economies of scale and scarcity of res matter much less than knowledge. The advanced economies are becoming knowledge economies. They were agricultural and industrial economies.
Knowledge Management
These are the processes and strategies that businesses use to detect, capture, structure, leverage, and share their intellectual assets.
Knowledge Map
a visual aid that tells us where a company’s or organization’s knowledge is. It also tells us where in the company people with the most expertise are located. We also call it an inventory of knowledge
Knowledge Based Pay
It is a system in which the workers get paid based on their academic level and individual skill set. It is opposite of a job based pay system.
Kondratiev Cycle
In a very long business cycle which lasts about half a century and includes booms and busts one can call it the Kondratiev wave, Kondratiev cycle, or the long wave cycle the Nikolai Dmitriyevich Kondratiev, a Russian economist, first proposed the long-term cycle in the 1920s. He was then eventually sent to a concentration camp in Siberia for is capitalist views and was executed.
Krugerrand
The Krugerrand refers to the bestselling gold bullion coin of all time, which was produced by and was developed in the Republic of South Africa. This grandfather of the modern gold bullion coin phenomenon was first struck in 1967 in an effort to help market gold produced by the South African republic via its South African Mint. It became so
KYC (Know your customer)
This is the process that a bank should generally undertake so that it will be providing the best service and advice to its customers. KYC is most important for private and premium bank customers that may have more complicated banking and investment needs. In order to meet KYC requirements banks may ask for information such as your employment details, salary, assets and liabilities.
L Shaped Recovery
It is a chart that shows a sharp decline in economic growth followed by a long flat period. During the flat period there is a little or no GDP growth. The graph looks like the letter ‘L,’ i.e.,it is a steep (vertical) line followed by a flat (horizontal) line at the bottom.
Label
It is a small piece of paper, plastic, or cloth that we attach to a product. The label has information about the product, such as its manufacturer and origin.
Labor
The definition of labor includes the following:
1. The workforce (workers).
2. Physical or mental exertion.
3. The cost of paying workers (e.g., in the breakdown of a bill or invoice).
4. All manual workers whose work involves physical exertion.
5. The process of childbirth.
6. Labor unions collectively.
Laddering
It is an investment technique which requires the purchaser to buy several financial products with different maturity dates. We also call it a ladder strategy, bond ladder, or a laddered portfolio.
Laffer curve
It is a graph which suggests that as you increase tax rates, government revenue rises, but begins to fall beyond a certain point. If you raise taxes too high, the people and companies become less interested in working and investing, or move their activities abroad, that will further lead to less tax income for the government and a weaker economy. It was drawn by economist Arthur Laffer in a restaurant in 1974 while he explained his point of view to his dinner companions.
Laggards
When a new product or system enters the marketplace, they are the last people to adopt them. The approximately sixteen percent of the population are laggards. They typically have an aversion to change and anything that may bring about change.
Lagging Indicators
These are the economic and financial indicators which do not change at the same time as the general economy. The Lagging indicators might change a few months later. Hence their name, i.e., there is a ‘lag.’ For example The unemployment rate,is a lagging indicator.
Laissez Faire
This is an economic system in which the business activities of and between the private citizens, the companies and other entities are free from government interference such as subsidies, tariffs, privileges and regulations. It means the same as a free market system or pure capitalism. The emphasis is on the government which is having a hands off approach.
Landlord
He is the owner of a property which is being rented. The person who will pay the rent is the tenant. If the owner is female then we will say ‘a landlady.’ However, in the legal documents, the term ‘landlord’ may refer to either a man or a woman.
Land Pollution
When there is at least one contaminant on or under an area of land, there is land pollution. Land pollution will includes the deposition of solid or liquid waste materials on or under the ground.
Lapping
This is the fraudulent practice of stealing or concealing cash received from one customer and using money from the next customer to offset the shortfall. It is a white collar crime. Teeming and lading, short banking, and delayed accounting mean the same as lapping.
Larceny
It is a crime which involves stealing something from its rightful owner. The individual who steals the property intends to become its owner. The term no longer exists in British or Irish law, but it continues being used in the American legal system.
Large capitalization (Cap)
It is a reference to either a large company stock or an investment fund which will invests in the stocks of large companies.
Large cap fund
A fund which invests primarily in large cap stocks.
Large Capitalization Stocks
These are the shares of publicly listed companies with a market capitalization of $5 billion or more. In simple words, the shares of the largest companies in the country. We can also use the terms large cap stocks or large cap companies.
Last In, First Out (LIFO)
This is an accounting and valuation technique which are the newest assets that are to be added to the inventory.these are the first ones to be sold or used, while the older ones are the last ones to be sold.
Latent Demand
This is the potential or dormant demand for a product or service. The demand has not yet become active because the consumer cannot afford it, it is not available, or the consumer does not know how it is available. It is the contrast term of the effective demand.
Latent Market
It is a potential market which is still not developed , but if there are the right circumstances, this would come alive. In a latent market there is demand for something. However, this item is not available, i.e., people cannot buy it.
Lawsuit
It is a dispute or claim when one party or parties, the plaintiff(s), will bring to a court of law for adjudication. The plaintiff can sues the defendant. One party sues another party for something; in most cases money.
Lawyer
It is somebody who studies the law and it is licenced to practice law. There are many names for this profession, including attorney, solicitor, and barrister.
Layoff
the suspension or permanent termination of a position (job) in a company. The verb is ‘to lay off’. When a worker is laid off, he or she has done nothing wrong – it is not their fault. Layoff, when it is permanent, means the same as redundancy. It can happen if sales decline, during a recession, the business goes bankrupt, or it cannot produce goods because it cannot get a vital component or raw material.
Leadership
1. The leaders of , company, or country, regarded collectively.
2. The action of leading or being a leader.
Leading indicators
These are the indicators which can change before the whole economy changes. They are used as short term predictors of the economy. Stock market returns is a leading indicator .they usually start to decline before the general economy weakens, and pick up just before the economy starts recovering from a slump. examples of leading indicators include building permits, the money supply, and consumer confidence.
Legacy System
It is a computer term which refers to an obsolete IT system in a company. It is also called a legacy platform. The term is pejorative that it refers to an out of date computer system or application program. When the ‘legacy system’ is mentioned, the speaker is suggests that the company or organization’s computer system needs to be replaced.
Lender of Last Resort
when a bank is in need of money and there is no other bank or entity can who is willing to lend to it, the lender of last resort that is a central bank intervenes and supplies the required funds. This happens when a commercial bank is in trouble. The central bank then often lends with strings attached; it may take control of the financial institution, find it a new owner, or close it down. The function of the lender of last resort is to
1. Prevent the bank from failing.
2. To protect the country’s financial system.
Letter of Credit
It is a document from a bank which guarantees the payment to the exporter, as long as it meets a list of conditions. If the importer fails to pay, then the bank pays.it is also known as documentary credit.
Leverage
this is the ratio between the equity capital and credit in a financial exchange.
it means use of borrowed money in order to fund the purchase of an asset.
Liability
It is an accounting liability which is considered to be a legal debt or obligation that a company or other entity will be required to pay back.
the Liabilities are reported on the right side of a balance sheet.
Libor
It is also known as the London Interbank Offered Rate or ICE Libor, is the rate the banks offers to lend wholesale money to other financial institutions in the international interbank market.
Life Expectancy
These are the number of years that we expect an organism, person, or group of people to live. We also refer to it as ‘expectedlifespan or ‘expectancy of life.’ this life expectancy globally has been increasing rapidly for the past one hundred years.
Life Insurance
It is a contract made between an individual and an insurance company. The person being insured pays a premium in return for a lump sum payment (“a death benefit”) to a designated beneficiary following the their death. The Cover may either be temporary or permanent.
Life annuity
It is also as a single life annuity. An annuity which makes periodic payments only for the life of one individual.
Lifecycle fund
A fund which is designed to provide varying degrees of long term appreciation and capital preservation that is based on your age or target retirement date. As you get older or closer to retirement, a lifecycle fund’s mix of asset classes becomes less focused on the growth and they are more focused on income.it is also known as target date retirement or age based funds.
Lifestyle fund
A fund which maintains a predetermined risk level and they generally uses words like “conservative,” “moderate” or “aggressive” in its name in order to indicate the fund’s risk level. It is used interchangeably with the target risk fund.
Light emitting diode (LED)
It is an electronic device which lights up when the electricity passes through it. By manipulating the physical properties of LEDs, the manufacturers can set the types of light that they emit. The devices have many applications and benefits.
As the room lights, for example, they will consume less energy and have a longer lifetime than filament bulbs.
Limited Company
It is a business entity that we can set up to run our business. It is responsible in its own right for all its activities. Its finances are separate from the personal finances of those who own shares in it. Profit is made after paying of the taxes is then owned by the company. A limited company can pay dividends to shareholders from its net profit. There are two types
1. Private Limited Company.
2. Public Limited Company.
Line of Credit
Line of credit or credit line, is the amount you can borrow on a flexible loan. In simple words,it is your credit limit. We can also call it a revolving credit agreement or bank line. We can only borrow what you need, as long as you remain within your limit. You only pay interest on what you borrowed.
Lipper Index
It is a set of benchmarking tools which can be further used to track the performance of a portfolio of various mutual funds.
Liquid Assets
The current assets which can be quickly turned into cash that is usually within a period of a month. The Cash and the checking of the accounts are the ‘most liquid’ of assets.
Liquidity
It refers to how rapidly will an asset can be converted into cash and spent, if so desired. The Cash is the most liquid of all assets. In accounting, liquidity is a measure of an entity’s ability to pay its bills as they come due, as well as its ability to access money when it needs it. The term may refers to how much activity there is in a market. A liquid market has many buyers and sellers.
Liquidity Trap
A situation in which cash injections from the central bank into the private banking system to decrease interest rates and thus kickstart the economy have no effect. The aim of the cash injections is to get people and companies to borrow and thus spend more. However, for some reason everybody wants to hoard cash and are risk averse. The USA and UK experienced a liquidity trap during the Great Depression of the 1930s, and so did Japan in the 1990s.
Litecoin
A peer to peer crypto currency is also an open software project. Litecoin uses an open cryptographic protocol to transfer and create coins. Like all crypto currencies, Litecoin has no central bank. It is nearly identical to Bitcoin, but is much faster.
Loan
something which is borrowed and it is usually in the form of money or property which can be eventually paid back to the lender with interest.
There are many types of loans, such as a mortgage, which is money borrowed to buy a property.
Loan Capital
This is the money which a company would borrows from banks, other organizations and people for an agreed period on which it pays interest. The most common ways to raise loan capital are with a bank loan, a bank overdraft or debentures.
Loan Guarantee
this is a loan where a person, government or other entity pledges to become liable for a debtor’s debt obligation in the event of a default.
Loan Discount Rate
It refers to an interest rate which commercial banks and various other financial institutions pay on loans they take from the discount window of their regional branch of the Federal Reserve Bank. It can also pertain to the discounted cash flow or DCF analysis interest rate. This rate would set the current value of all future cash
Loan Modification
These are the changes which are made to an existing mortgage loan, due to the borrower’s long term inability to pay. It is not the same as a refinance.
Loan Shark
It is a moneylender who charges the exorbitant rates of interest. Many of them will work outside the law, they threaten the borrowers with violence, and sometimes will force defaulters into criminal activities.
Loan Servicing
The term loan servicing refers to the procedure of either a mortgage bank or servicing firm that is gathering up the regular principal and interest payments from the mortgage and loan borrowers.
The amount of this service depends on the kind of loan in question and the particular terms that have been arranged between investors looking for such services and the servicing
Loan Syndication
Loan Syndication is the procedure of getting a few different lenders involved in delivering a few different components of a loan.
This activity will typically happens in those situations where borrowers need to borrow a huge amount of capital. In these cases, the money required might be more than any one lender will feel comfortable providing or could be higher.
Loan to Cost Ratio
This Loan to Cost Ratio, or LTC, proves to be a measurement which is utilized by finance companies in extending the loans for commercial real estate projects. It is employed ultimately in order to make comparisons of the offered financing for a given building project versus the expenses of completing said project. The lenders of the commercial real estate loans are able to decide
Loan to Value Ratio (LTV Ratio)
This ratio calculates the risk of people who wants to borrow money. The LTV ratio is commonly used by banks and financial institutions.
The greater the loan to value LTR ratio, the higher will be the risk.
Logistics
It is a subset of supply chain management which focuses on the challenge of planning and coordinating the flow of information and materials, all the way from purchasing of the raw materials, making the product, storing it, right through to finally delivering it to the customers.
Logo
This is a drawing, sketch, or image that a company, school, organization, or even a person uses to mark.it stands for who they are and what they do. It is part of their brand image. Logos may contain the letters, whole words, or even a short phrase in them.
London Stock Exchange (LSE)
This is the principal stock exchange of the United Kingdom. It is the Europe’s biggest stock exchange and one of the world’s Big 3, together with the New York Stock Exchange and Tokyo Stock Exchange.
Luxuries
These are the goods or services which are not necessary for living, but they get highly desired by the consumers.
They are more expensive than the ‘normal’ or cheap items. The People’s ability to buy or finance luxuries is directly proportionate to their assets or income. The Rich people purchase luxuries more often than individuals further down the socioeconomic ladder. ‘Little luxuries’ are simple things that can make somebody happy, such as a quiet evening watching TV with a glass of wine and some chocolates while the children spend the night away at their grandparents’.
Machiavellianism
It is a political theory or belief that supports the use of any means that is necessary to stay in power. It is also a term in modern psychology which describes manipulative people who lack empathy and will lie and deceive to achieve their goals.
Machinability
It is a characteristic of a material, e.g., a metal, that makes it easy to cut, grind, drill, or shape. In other words, how easily we can ‘machine’ it into the shape we want.
Machine
1. A device made of moving parts for applying mechanical power. 2. An extremely well organized and efficient system or organization.
3.To machine means to make.
4.To machine can also mean to cut, slice, grind, and shape something until we have the finished product. There are other meanings.
Machine Code
It is a machine language is a computer programming language consisting of strings of ones and zeros. Computers can respond to it directly, i.e., without any conversion of direction.
Machine Instructions
These are the instructions that a computer’s processor will only understands because they are in machine code or machine language. One machine instruction can consists of many bytes of memory. It tells the processor to perform one machine operation. A computer performs a huge number of operations every second.
Machine Learning
It is an artificial intelligence application which will gives computers and smart machines the ability to learn from experience. In other words, to learn without human intervention. Machines that can ‘learn as they go along’ have machine learning.
Macros
1. the Keystroke instructions which can perform specific tasks. We are familiar with the macros in word processors such as Word.
2. A short term for a macro lense.
3. Overall or large scale, as in macroeconomics.
4. Macronutrients, that include fats, proteins, and carbohydrates.
Mad Cow Disease
This is the nonscientific term for BSE or bovine spongiform encephalopathy. The cow’s nervous system is affected, the holes are formed in the brain. It loses coordination, becomes nervous and sometimes extremely aggressive. It is a fatal non curable and non preventable disease.
Made to Order
It has the same meaning as the entry below.the Fast food restaurants, such as McDonald’s or Pizza Hut, don’t assemble their meals until the customers have specified what they want. These restaurants have a made to order system.
Male Chauvinism
The belief that males are superior and more important than women. This belief is not supported by reliable or compelling evidence. A person who believes and practices male chauvinism is a male chauvinist.
Malware
Software that a programmer has deliberately designed to disrupt or damage a computer system. Examples include scare ware, viruses, worms, Trojan horses, spyware, and adware. Malware starts damaging after it has gained access to a computer system.
Managed Account
An investment account that an investment manager manages for his or her client. The client could be a person, company, or any entity with funds.
Management
This involves the leadership, staffing, organization, and planning of a company to reach a goal or target. The term refers to either the people who manage, or the function of managing.
Management Consultant
A consultant that helps companies and other organizations improve their performance.
Manager
He is a person in a firm or company or organization who exercises the managerial functions. These functions include planning, organizing, directing, hiring, firing, disciplining, doing performance appraisals, monitoring attendance, approving overtime, and authorizing vacations. The manager is in charge of a part of a company, which usually has a team of employees.
Manufacturing
This is the process of conversion of raw materials and components into finished products. The Manufacturing takes place in a factory. It then involves making things on a large scale.
Margin
In futures trading,it is the difference between the current and future price. The difference between one price and another, it is related to the profit a trader or speculator can make. For a trader, it is the difference between the cost of production or the purchase of a product, and how much it is sold for.
Marginal
the term means an ‘additional’ or ‘by adding one more’. For example, marginal price is the price of buying one more.For example you bought 10 toothbrush , and then asked for one more in the order; it is the price of that particular extra one or unit. There are many terms with the word ‘marginal’, for example marginal cost, marginal propensity to spend/save, marginal revenue, marginal utility, marginal output of labor, and marginal tax rate.
Market
It is a place where the people and the businesses gather together to buy and sell the products and the services.
The term may refer to a physical place, for example a flea market, store, or farmers market, or an abstract description that will includes all the possible buyers, such as the semiconductor market is forecast to grow by 7% this year.
Marketability
this term may refer to the things or people. If I am selling a house, I can improve its marketability if I convert the loft into another bedroom. In other words, the conversion will make it easier to sell the house. If I study for a degree, I can improve my marketability, that is I become more attractive to employers.
Marketable
It refers to a product which is easy to sell or a person who is in demand in the job market. We can use this term for goods, people, or skills. For example, nursing is a marketable skill, that is, the employers are always looking for nurses.
Market Analysis
It studies that the people carry out on any market. Their main objective is to anticipate or predict which way the prices or the growth rates will go. Often, this term on its own will refer to an analysis of a stock, commodity, or bond market.
Market Attrition
This is the gradual erosion of customer loyalty which is due to the absence of effective advertising and promotions. We can also call it as customer turnover, customer churn, customer defection, or customer attrition
Market Capitalization
the net value of shares which are issued by a public company. The Market capitalization is determined by multiplying the price per share by the number of shares
Market Follower
It is a company which follows the market leader in a sector. It does not want to challenge the leader. It will copies all the leader’s successful strategies and will implements them. The market follower just wants to maintain its market share. It is happy with the current status quo, i.e., that is the leader remains on top.
Market Forces
These are the forces of supply and demand, which are in a free market economy that is to determine the price of goods. When the demand rises faster than the supply, the prices rise, when it is exceeded by supply, the prices fall.
Market Garden
It is a small farm which grows vegetables, fruits and flowers and sells them to the public. The crops are grown for profit. they are Also known as a micro farm.
Market Index
It comprises of numbers which represent weighted values of different components that will make up the index.
The components may be the company stocks, commodities, bonds, parts of the economy, or the prices of goods. The term, when we use it on its own, usually means stock market index
Marketing Campaign
This is a plan which details a comprehensive course of action to sell and/or promote a product, service, or brand. The Marketing campaigns are a part of the umbrella term ‘marketing.’
Marketing Mix
This is a planned mix of elements that will make up a marketing plan for a good or service. The four elements are: Product, Price, Place, and Promotion. Hence, we refer to them as the 4Ps.
Marketing Principles
This is the agreed upon marketing ideas that businesses use for a successful marketing strategy. We also refer to it as the Principles of Marketing. the Marketing Principles can be used for products or services.
Marketing Research
This is the systematic collection of data about the components in the market such as the rivals, consumers, similar products, etc. the Marketing executives and the senior managers will analyze the data before making it important for the company and product decisions.
Marketing Strategy
It is a business’ marketing goals and objectives that combined into one comprehensive plan. You can draw on market research and other relevant marketing data to create an effective marketing strategy. It is not the same as a marketing plan. The ‘strategy’ describes where you want to get to, while the ‘plan’ describes ‘how’ you plan to get there.
Marketing Tactics
These are all the actions in detail in order to achieve a marketing strategy.it is a set of strategic methods which are aimed at promoting a company’s goods or services. It is not the same as marketing strategy, which is a general goal.
Marketing Tools
The tools that businesses use in order to promote and develop their products and services. In most cases, the companies that use a range of marketing tools simultaneously.
Market Intelligence
the gathering and analyzing of data about products, customers, competitors and their products, etc., in a specific market, that a company uses to help it determine where to allocate more res, what products to sell, and how much to charge for them.
Market Jitters
This is a feeling of fear, uncertainty, and apprehension among the investors and the stock market traders. The Market jitters that are often caused investors to sell stocks and bonds that will subsequently pushes down their prices. For example The Economic indicators, reports of bad profits, and political instability.
Market Leader
It is a corporation or country which has the greatest sales in a specific product in the market. The market may be a country or the world. It is calculated either by the volume or the value of sales.
Market Maker
It is a company or individual which regularly buys and sells securities at a publicly quoted price in order to provide liquidity to the markets.
Market Orientation
It is a business philosophy or culture where the number one priority is identifying what the customer wants and needs, and meeting that need with suitable products and services. It is opposite of the product orientation, which focuses on the product and tries to persuade the customers to buy it.
Marketplace
It can be defined as follows:
1.It is regarded as an open space or square in a town or city where people trade that is they buy and sell things.
2. The market in the technical sense means the online marketplace where the people can buy and sell things online. For example Amazon.com.
3.The market is a place where people buy the products that they need for their living.
4. It is a service where the people will shop for the health insurance and will also enroll.
Market Rate
This is also known as the going rate. This is the usual price that is paid for a product, service or somebody’s labor in an open market.
Market Research
The gathering and analyzing of data regarding customers, competitors, a product, and market trends. It is the study of how a product or service is sold, who buys it, why they buy it, and how competitors behave.
Market Risk
This is the risk that an investment might face due to market volatility i.e. the prices in the market may vary and changes in the overall economy. the Market risk can reduce the value of an investment.
Market Share
It refers to how big your slice of the total market pie is, in terms of the percentage. In simple words, what is your total sales represents them relative to the size of the industry.the Market share can be measured by the units sold, or the value of total sales.
Market Value
the price on which the buyers and sellers both agree , when a security or asset is traded on the open market, based on the forces of supply and demand.
A company’s market value is what the investors believe it is worth of. It is also known as market price, fair value, fair market value and open market value.
Market Volume
This is the total amount of transactions in a specific marketplace over a given period. When looking at stock exchanges, we can use the term ‘stock market volume.’ Markup
1.The amount that a seller adds to the cost price, i.e., the difference between the wholesale and retail price
2. The process of correcting up the text before it goes for printing.
3. A line by line review of the budget by a committee.
MBA
Master of Business Administration or Masters in Business Administration. It is an advanced degree that concentrates on developing the skills that people need to manage or run a business.
M Commerce
a part of ecommerce in which people buy and sell using mobile phones (smartphones) and other wireless handheld devices. Mcommerce stands for mobile commerce.
Media
This is the word one can use for medium, it describes the various ways through which people can communicate in society. It refers to the communication channels through which the news, movies, music, promotional messages, education and other data are disseminated. It comprises of newspapers, magazines, books, TV, radio, billboards, and the Internet.
Medical Consultant
He is a senior doctor with several years of specialist training.
Medical Device
It is a machine, apparatus, device, or piece of equipment that has been made for a medical application or purpose.
The term comprises of hundreds of different products, from the gauzes and bandages, to an MRI machine or CAT scanner.
Medical Tourism
It refers to traveling to another country for the medical treatment.
Merchandising
It is all activities which are related to the promotion of goods in a retail setting, such as a supermarket. A merchandiser decides how will he display a product, where, what special offers to include, and how much to sell it for.
Merger
This is the combination of at least two companies into a new legal entity. A merger is a combination of equals, unlike an acquisition or takeover, where there is a predator and a prey one company will literally consumes the other.
Mergers and Acquisitions (M&A)
A merger is a combination of the two enterprises, while an acquisition is a takeover.
This is a practice of corporate finance that deals with combining, dividing, selling, and purchasing different companies to create a new enterprise, merge them together, or help a company to complete a takeover.
Mental Health
This is our psychological, emotional, and social wellbeing. People who enjoy good mental health, they do not live with a mental illness. Mental health is an important component of overall health.
Metrics
It is a set of numbers and statistics which provide information about a business’ performance or a specific activity or function. The Metrics tell us how well or badly we are doing and whether we are going in the right direction or not.
Methane
It is a compound with the chemical formula CH4, it is a common fuel. It is the main component of natural gas. It is an attractive fuel for us because it is so abundant. It is also a very potent greenhouse gas.
Microeconomics
This is the study of the economic behavior of individual units of a country’s economy, such as a firm, household or person. It is opposite with the macroeconomics, which is the study of the aggregate economy.
Mindfulness
It is a state of being utterly aware of what is going on inside and outside ourselves on a moment to moment basis. It is a way of fusing the mind and body, releasing of the tension and pain, and regaining pleasure and happiness.
Minimum Wage
This is the lowest amount that an employer is legally allowed to pay a worker. It is always calculated at an hourly rate. Employers can pay more but never less than the minimum wage. More than ninety countries across the world can have a minimum wage.
Minimum variance portfolio
this is a portfolio with the lowest risk possible. Each individual investment has a higher risk than all of them combined.
Modern Portfolio Theory
It is a financial theory that it attempts to achieve the best expected return for a particular level of risk, or the smallest possible risk for a set level of expected return.
This is possible only if the investor carefully chooses the proportions of different.
Money
It is any intangible or tangible thing which represents a unit of value and that can be used as a medium to exchange goods.
Money Illusion
This is the erroneous principle that many people have that a unit of money does not decrease in value over time, which it does because of inflation.
Money Laundering
This is the process of turning ‘dirty’ money into ‘clean money’. The funds that were obtained from illegal activities. The criminals need to launder their proceeds in order to be able to use them openly and place them properly in the financial system.
Moneylender
This is an individual or organization which lends money, that is usually at very high interest rates and outside the official banking.
Money Order
It is a financial instrument which allows the payee to receive a certain amount of cash on demand which is considered as safer than a cheque.
Money Supply
It is known as money stock.
It refers to the amount of monetary assets which an economy has access to at a specific period of time.
It is measured by monitoring of the currency in circulation and the demand deposits.
Monopoly
This is a market where there is only just one producer/supplier of a product or service and there is no competition. The monopolist controls the price and it is extremely difficult or impossible for any other entity to enter the market.
Mortgage
A loan to the purchaser of real estate or the properties which is secured on the property that is being purchased. A mortgage can be provided for any other purpose, when the borrower already owns a property and uses it as a particular security.
Mortgage Backed Securities
these are the bonds which are backed by either a mortgage or a collection of mortgages that is mortgage pool.
The borrower of such bond pays the bondholder through his or her monthly installments.
Mortgage Bond
This is a bond in which the issuer has granted the bondholders a lien against the pledged assets or the property. When the borrower defaults, the bondholder has the right that it can resell the property
MPI
This stands for the mortgage payment protection insurance. it covers the policyholder when he or she is not able to meet the payments which are due because of accident, sickness or unemployment.
MRO Items
MRO stands for the Maintenance, Repair, Operations Items.these are the materials and products that the companies will buy that do not end up as part of their finished products. These are the products and materials that a company will need for its operations, for example goggles for factory workers.
Multinational Company
They are Also called as a multinational corporation or transnational corporation.
A company which has business, staff and premises in more than one country. They have a centralized head office from which the global activities are managed.
Mutual Savings Bank
Mutual savings bank were first founded two hundred years ago in order to encourage the low income workers to save
.it is a financial institution which belongs to its depositors. It has no shareholder that is it has no equity capital.
Naked Short Selling
This is short selling where the traders do not borrow stocks or they do not even make an arrangement to borrow the stocks.this is considered to be an illegal practice.
Narrow Money
These are the liquid forms of assets which can be immediately used for the transactions and commerce. These include coins, notes, traveller’s cheques, and checking accounts in banks.
Nash Equilibrium
A concept in the quantitative statistics game theory where the game’s best outcome is the one where none of the players has an incentive to veer from his or her chosen strategy after considering all the choices which are available to other members of the group. The player should not receive any incremental benefit by changing plans, assuming that all the other players must keep to their strategies. A game might have just one Nash equilibrium, several, or none.
National Debt
National debt is defined as the total amount which is borrowed means it is total outstanding borrowings by a central government and all local authorities within a country.the national debt includes external debt And internal debt. It includes what the government owes to its foreign creditors that is called external debt and what it owes to national creditors that is called internal debt. These debt comprises of the Sovereign Debt,the Public Interest, and the Government Debt.
Nationalization
When a government or state becomes the owner of a private industry or they start controlling the private assets.
This happens because of several reasons, such as a socialist government taking over certain sectors of the economy, or the taxpayer bailing out the collapsing banks.
Nation Building
It refers to the following:
1. It is Getting a failed state to perform in order to function properly again.
2. To help a country or region so that it gets back on its feet after a war.
3. The Government policies main purpose should be to encourage a strong sense of national identity.
The most successful nation building program in history was the Marshall Plan, which helped speed up Europe’s recovery after WWII.
Natural Monopoly
Itis the most cost effective solution and the best deal for the consumers.
The monopoly that exists because of a particular market’s economies of scale
Natural Rate of Unemployment
This is the rate of unemployment, at which the inflation does not fluctuate.It neither accelerates nor decelerates.an economy is said to be at the natural rate of unemployment, when the inflation is constant over 12month period.
the Employers and employees will come to expect this annual inflation rate and will base their decisions on it. Therefore it is called as the constant inflation rate of unemployment or the nonaccelerating inflation rate of unemployment.
Near Money
The assets which can be converted into cash fastly.they are called as quasi money.
for example short term money market instruments and bank deposits.
Negative Income Tax
This is a system in which people having low incomes or no income receive supplemental pay from the government instead of paying taxes.It is said to have very less stigma attached to it than any other forms of welfare financial help.
Negotiable
Negotiable means that the sale price might be reduced, or the terms of a contract or agreement could be adjusted. It is also an instrument which can be transferred to another individual or entity as a form of payment
Negotiable Instrument
It is a written document where the payer guarantees the payment of a specified amount of money, that is to be paid either on demand or at a future time. The payer promises this payment without any condition.
For Example these include banknotes, checks, bills of exchange, and certificates of deposit.
Negotiation
It refers to a discussion to reach beneficial mutual outcome for all the parties.It refers to agreement or discussion where all parties try to reach an agreement or result.
Neoclassical Economics
It is a theory, which believes the consumer to be the driver of price and demand, because of the goal of the consumer that is utility maximization also known as customer satisfaction while that of company is profit maximization.
Net Asset Value (NAV)
This is the value of a company’s total assets minus the value of its liabilities.
This is also same as the book value or equity value of a business.
Net Income
This is also known as net profit or net earnings
the net income is the income which is calculated after paying for the cost of goods sold, expenses, taxes, as well as depreciation.
The term may refer to the businesses as well as individuals.
Net Profit
It is a business, person’s or entity’s total sales revenue minus all its expenses.
The Net Profit is part of an income statement, which covers an accounting period of either one month, one quarter, six months, or one year.
Network Effect
This is the effect which an individual user of a good or service has on its value to the other subscribers or users. When a network effect exists, the product or service’s value depends on how many people are using it.
it is also called demand side economies of scale and network externality.
Network Marketing
A business model in which there are direct selling agents who will promote the products or services. They will also try to recruit and train new agents, who will then sell and then they also recruit new agents. The more agents you have under you, the more you will earn.
Networking
This is communicating with other people, companies, or organizations regularly with the objective of improving your company’s sales or your personal career prospects.
The bigger is your network of contacts is, the better will be your chances of doing well.
Net Worth
The value of an entity (be it a person, company, or other organization).
The Net worth equals assets minus liabilities.
Neural Networks
These are the sets of algorithms that have been modeled after the human brain. The algorithms have been designed so as to recognize patterns.
An neural network is an example of machine learning, that is a part of AI (artificial intelligence).
Neutrality of Money
This is also called as the neutral money or monetary neutrality.
It is an economic theory which says that the changes in the money supply make no difference in GDP and the basic structure of the economy.
If you will double the money supply,then everything will rise, including wages, prices, etc. If they all increase by the same proportion, then nothing really has changed.
New Economy
They believe that the Internet,the state of art information technology, other hitech, and globalization have created a completely new kind of economy,the one which does not follow the rules which existed in the old economy. In the new economy, the productivity is considerably greater, as are the growth rates, and the inflation is virtually nonexistent.
New Money
New money is the wealth which has not been inherited, it was created during the lifetime of the individual. This is the opposite of old money. A derogatory term for the new money is nouveau riche.
Niche market
This is a focused market with only the demand for a specialized product or commodity. It is a small subset of a larger market.
Node
In a blockchain, a node is described as a computer which connects to the network. It supports the network through validation and relaying transactions. Each node, during a transaction, gets a copy of the full blockchain. There are different types of nodes, such as full and lightweight nodes.
Nominal Price
This is an asset’s ‘estimated’ price which does not always accurately reflect the market price of an asset (as it does not change based on inflation).
Nominal Value
The value of something which can bee xpressed in the money form for the day.
the Nominal figures are misleading because they do not take into account the real inflation.
the ‘Real value’ factors in the inflation effect. If a bag of sugar cost $5 in 2010 and $5 in 2016, its nominal value was the same. However, if average annual inflation over those six years was 1.2%, the real value of a bag of sugar declined.
Non Disclosure Agreement
It is a confidentiality contract that the parties in a meeting or presentation sign so that the sensitive information remains a secret. It is also known as an NDA or ‘confidentiality agreement’.
There are mostly two types of NDAs, one way or mutual.
Non Participating Preferred Share
These are the shares which only pays a fixed rate of interest and have a limit on how much can be paid out in the form of dividends every year.
however The dividends will not be proportional to the company’s profits.the Holders of these shares get their money before the common stockholders do.
Non Performing Loan
when the payments on interest and principal are overdue for more than 90 days then it is called as a nonperforming loan.
It is likely that the borrower will not be able to pay back the debt.
Non Price Competition
The marketing campaigns which are carried out by companies do not involve altering the price of their products or services.the Rivals may focus on providing extra services, inviting consumers to join a raffle or competition with a nice prize,in order to improve the quality of their product, pointing out their excellent workmanship, etc.
Nonprice competition is more common in markets where there are very few competitors oligopolies. The companies that is likely to give the impression that they are competing aggressively, but they have probably planned to keep their prices artificially high.
Non Store Retailing
It is the retailing which takes place outside a traditional brick and mortar that is physical location.
Nonprofit Organization
It is an organization whose objective is other than making of a profit. It focuses on education, scientific research, scholarships, health, human rights, professions, worker’s rights, etc.
In most cases, If you donate money to a nonprofit organization, your contribution is tax deductible.
Nootropics
These are the drugs, supplements, compounds, or synthetic substances that boosts cognitive performance is the, brain power.
Normal Goods
It includes all goods for which demand rises when the incomes increase.
The demand for normal goods always rises when the incomes rise, but by a smaller amount goods for which the demand increases are matched or are greater than income growth rates are called luxury goods.
Normal goods are in opposite with inferior goods, for which the demand declines when the income grows.
Normative Economics
It is a branch of economics which makes value judgments and looks at how things should be or should have been, rather than observing current or past facts.It is opposite of positive economics, which focuses purely on tested or proven facts. Normative economics expresses values regarding economic fairness, or what the economic goals or outcomes of policymakers that is ought to be.
Objective
In business, it refers to the specific goals which a company wants to achieve.it should include details of how the company will get there and a time frame to achieve that goal. It is not the same as a goal, which is less specific and is longer in term. A company’s aims are the same as its objectives, hence the term ‘aims and objectives’.
Occupational Accident
This is an accident where the workers suffers in the course of their work.The worker might become physically or mentally injured or ill. In some cases they might even die.
Examples include animal attacks, human attacks, falls, slips, being struck by objects, and poisoning.
Occupational Hazards
There are risks of accidents, illnesses, or injuries in the workplace.thisis Something unpleasant which somebody experience as a result of doing their job.
Occupational Injury
It is a personal injury, disease, or death that a worker suffers in the workplace. it is the result of an occupational accident.
Occupational Medicine
It is a subspecialty of preventive medicine which focuses on the health, safety, and performance of employees.
Occupational Psychology
It is a field of psychology which studies the human behavior in the workplace. It is called Work and Organizational Psychology, Organizational Psychology, and the Industrial and Organizational Psychology.
Occupational Safety And Health
It refers to the health, safety, and welfare of workers in their place of work. The term may include the safety and wellbeing of employers, customers, and anybody else who might get affected by the workplace dangers.
Occupational Stress
The stress which employees can experience and which can build up in the workplace.
The reason for this stress is It might be triggered by the unexpected responsibilities. We call it as work stress or work related stress. It can make people ill.
Occupational Therapy
It is helping people who will find it very hard to perform everyday tasks. This may involve showing them how to use tools and aids, or doing some kind of specific physical exercises.
Ockham’s Razor
It is a proposition one should always choose .
OECD
It stands for Organisation for Economic Cooperation and Development, it is a unique forum where the governments of thirty five nations all democracies with market economies work with each other. The objective is to promote sustainable development, prosperity and economic growth. The OECD was founded in 1960.
Office
It is a place where people do nonmanual work. An office may be one room, a set of rooms, or even a whole building.the people in the office includes persons such as Clerks, secretaries, accountants, IT personnel, and other professionals work in an office.
Official Development Assistance (ODA)
It is an indicator of support flow all around the world. The Development Assistance Committee of the OECD coined the term in 1969. The world’s largest support is provided by the United States, then followed by the United Kingdom.
Official Interest Rate
this is the rate at which the banks lend to each other. Specifically, they are oneday maturity loans or overnight loans. Americans use the term federal funds rate.
Official Reserve
This is the amount of gold, tradable foreign currency, and special drawing rights (SDR) that a country has. The central bank holds the official reserve in most countries.
Offshore
in finance and business, this means a country other than our own country and it is located overseas. An offshore account is the one which is held abroad. An offshore financial center offers the financial services to people from abroad, they are usually tax havens or places which has considerably lower tax rates than the home country of the bank account holders. The majority of offshore financial centers have small populations many of them are or used to be British colonies or protectorates.
Offshore Company
the term has two broad meanings.
1. A company which operates in one country but it is registered in another company.
2. A company which produces its goods abroad, in a country with cheaper labor or raw material costs. It then imports those good into the country where it usually operates.
Offshore Fund
A fund that operates abroad.theterm is wrongly interpreted as a fund in a tax haven.
However, an offshore fund simply means one that is abroad.
Oil Patch
the term originally refers to the major oil producing states in the USA. However, today some people will use it in Canada and other countries for regions with oil deposits. It will also means an oil slick as well as the oil industry in general.
Oil Port
It is a deepwater port where the large oil tankers can load and unload. The water in most ports is about twenty feet deep. Oil ports must have considerable deeper water.
Okun Gap or the output gap
It is the difference between what the total GDP actually is and what it could be. For example, if the unemployment is high,theoutput is lower than it could be if unemployment were low. That gap in output is the Okun gap.
Ombudsman
He is an official who then represents the interests of the public. They investigate and address complaints between the individuals and companies or government departments.
Omnibus Account
An account which is opened in the name of an account provider with the securities that belong to two or more clients of the account provider.
On Account
The partial payment of a debt.
The term may mean deferred payment.
For example, if I buy something ‘on account,’ it means that I pay for it later. In other words, ‘on credit.’ There are also some other meanings that you can read about in the full article.
One Price Policy
This is a pricing strategy in which the seller offers every person the same price. There is no discrimination between the prices . There is no haggling. The price you see will be the final price either take it or leave it. This pricing strategy is opposite with a variably price policy or differential pricing approach. Both approaches have pros and cons.
One Stop Shop
this might is a place or a company. It has everything that a person with a particular need might want. Therefore, it is the only ‘stop’ that one needs to make to get everything you want.
For example, a wedding one stop shop can make the ceremony arrangements as well as organize the reception afterwards. It will make the invitation cards and the bride’s wedding dress. Put simply, for your wedding needs, you do not need to go anywhere else.
One to One Marketing
It is a kind of customer relationship management approach in which the sales and marketing people can communicate directly with somebody. This person is an individual that the seller will targets directly. We can call this as 1:1 marketing, individual marketing, and personalized marketing.
Online
this term refers to a state of connectivity, most importantly in a technology and telecommunications. If something is online, it means it is connected to a network, on the Internet, or it is available to read or download. It is the opposite of offline.
OPEC
It stands for the Organization of the Petroleum Exporting Countries. It is an economic carter whose members will collaborate to fix the price of oil.
Open Interest
These are the number of derivative contracts such as futures and options, which are not closed or delivered on a particular day. It is also called open commitments or open contracts.
Open Market
It is the one where all the participants,the buyers and the sellers, compete on a level playing field. They have no tariffs, taxes, subsidies and regulations that will favour some players and hinder others. There are no regulatory barriers to the entry in an open market.
Open Market Operations
These are the activities which is carried out by the central banks to give or take liquidity to and from the economy. When the central bank wants to kickstart the economy it will then purchase the bonds and sells them in order to gain control over the inflation.
Opening Price
This is the price of a security when it is the first available to be exchanged in a business day which occurs as soon as the market opens.
Operating Activities
Every thing that people do in a company is related to the sale of goods or services. In other words, all the functions which generates revenue. Examples will include purchasing materials, paying workers, talking to potential buyers, delivering to buyers, etc.
Operating Ratio
It generally refers to a business’ operating expenses which is divided by its net sales (operating revenues). It may also refer to any type of financial or business ratio that measure’s a company’s efficiency, including net profit to gross income ratio, net profit to net worth ratio, or sales to cost of goods sold ratio. The higher a company’s operating ratio ,the less efficient it is.
OPEX
It means the operational expenditure or operating expense. It is the money which a business spends on a daily basis to keep going. It is opposite with CAPEX, which stands for capital expense.
Opinion Poll
this is a survey in which the market researchers will ask people what they think about different issues. The respondents belong to a representative sample of the whole population. The Opinion polls are popular during the election campaigns.
Opportunism
the practice of exploiting opportunities regardless of who they may affect. The opportunist will takes advantage of opportunities as and when they arise. The Opportunists are selfish, exploitative, unprincipled, and inconsiderate.
Opportunity Cost
The value of the best alternative choice when deciding to go along with a certain action. When you made a choice this is looking and evaluating the option which you gave up .
Optimum Capacity
When the production is as high as possible and the costs is as low as possible. In other words, when the cost to produce each unit cannot go any lower, the factory is at optimum capacity.
Order
this may be a spoken or written announcement of an intention to buy something. When I place an order I am telling the seller that I am buying it. In finance, a bank check or bank draft with the name of the receiver written on it is an order. The Courts issue orders to order somebody to do something means to give them a command.
Order Management
the process of managing orders, from when the customers first place them until they receive their product or service.the Order management might include dealing with refunds, returns, and replacements. Most order management systems (OMS) today are automated.
Ordinary Share
It is a form of corporate equity ownership. An ordinary share is written proof that the holder owns as a part of a company. It is a British and Commonwealth countries term. Americans say it as a common stock. Ordinary shareholders get dividends if there are profits, and they also have voting rights.
Organic Farming
This is farming the natural way.the Organic farmers never use artificial fertilizers or pesticides. Neither do they use growth hormones or genetically modified organisms. They practice natural pest control, such as using ladybugs to reduce aphid populations. Organic farming is more expensive than conventional farming. Therefore, organic food costs more than nonorganic food.
Organic Food
It refers to the food which has been created, prepared, or raised without artificial fertilizers or pesticides. The Organic meat, poultry, and fish come from animals which did not consume livestock feed additives or growth regulators. Organic food comes from organic farms. Organic farms do not irradiate their products or use genetically modified organisms (GMOs).
Organic Growth
It means the same as internal growth. It involves the expansion from within a business, rather than the result of acquisitions or borrowing from outside. Organic growth builds on the company’s own resources and capabilities.
Organization
an organized group of people who work together and have a common goal. There are many types of organizations. For example, governments, companies, schools, charities, and the armed forces are organizations. Partnerships, nongovernmental organizations, and organized crime groups are also organizations.
Organizational Culture
A group of internal behaviors and values which each organization has. We can call it as Corporate Culture. It includes the ways we think, the future expectations, and the beliefs. It is the result of a perception that all the employees of a company share.
Organizational Development
They are commonly known as OD,it refers to a planned and systematic approach in order to enhance the effectiveness of a company or any organization. It includes the practice of planned, systematic change in the attitudes,the values and the beliefs of a company’s workers through the creation or reinforcement of long term training.
Organizational Economics
This is the study of how we create and develop organizations and how they affect economic growth. It then uses applied economics to understand how organizations, such as companies, behave and perform.
Organizational Memory
It is all the accumulated data and knowledge which a company has. The human memory exists in our brain.the Organizational memory, however, exists in many places. We can call it as corporate memory or institutional memory. They are the things that a company remembers may help to make good decisions and not repeat mistakes.
Organizational Strategy
It is a strategy to change an organization from its current state to a desired future state. Firstly it must create a strategic plan. Making a good plan is much easier than properly executing it.
Organization Theory
There are many theories,which look at the relationships between the organizations and their environment. We can also call it as the organizational theory. It examines the effects of those relationships on how the entities function. Basically, these organization theories are the one that has everything to do with organizations. It aims to understand them and improve them.
Organized Crime
The crime that a powerful criminal groups carry out. They carry out these crimes on a large scale. The Organized crime groups, often in several different countries, work together in specific sectors. They may be involved in money laundering, people trafficking, prostitution, gambling, arms dealing, etc.
Orientation
In the Human Resource Management, it refers to the program of the introducing the new employees to their position and company. There are Some people who call it as the onboarding. A good orientation program then helps to optimize the productivity and employee retention. Unfortunately,the orientation is not something that many of the employers will take seriously enough.
Or Near Offer (ONO)
this term means that the seller would consider a lower offer. However, this offer would need to be really close to the asking price. We generally write the short form ‘ONO’ when the placing of adverts. However, when speaking, we tend to use the long form ‘or near offer’.
Outage
the term may refer to an interruption in the electricity supply, i.e. a blackout. An outage also occurs when the system stops working. A Sun outage is when geostationary satellite signals fail to reach earth stations. Sun outages are due to solar radiation.
Outlay
This is how much that people spend on an activity or project. It is the total cost for reaching an objective or acquiring something. If you purchase new equipment, your outlay will include the money you spent on buying it, delivery charges, plus installation and setting up costs.
Out Of The Box Thinking
It means the thinking in original, nonconventional, and creative ways. Imagine the box is the traditional framework for doing things. If you come up with a situation and follow protocol, you are ‘thinking in the box.’
To find an effective solution, we need the‘out of the box thinking.’
Outplacement
It is the process of helping employees who have been laid off or made redundant to find jobs elsewhere. Instead of just handing out redundancy notices, a progressive employer will arrange of its workers to receive the career advice and the assistance in seeking out employment.
Output
in business, it is the quantity or the amount produced by a person, firm, town, region or country over a specified time, that is usually one year. In electronics and computers, it refers to data that has been processed and sent out. In electronic devices, it may be where power leaves a system.
Outsourcing
it involves farming out work to a third party supplier,andd not doing the task inhouse. It also refers to the practice of contracting out control of public services to profitmaking companies.
When outsourcing is done with a foreign provider it will be called as offshoring.
Overdraft Protection
It is an arrangement which a customer has with his or her bank in which debit card payments and cheques are honored, even if there are insufficient funds in the checking account.the Savings and checking accounts, for example, may be linked up, with the savings account providing the backup funds if they are needed.
Overhead
It refers to the all ongoing business expenses. It is called as the “operating expense”.
Over The Counter Shares
the shares in the smaller and newer companies which are not traded through stock exchanges, such as the New York Stock Exchange or London Stock Exchange. It is known as over the counter securities or over the counter stocks. ‘Over the counter’ is often written as ‘OTC’.
Overtime
The time which a worker spends then working extra hours, that is more than his or her scheduled working week. If my employment contract says that the working week should consists of 40 hours, and I work for 42 hours this week, I did 2 hours overtime.one can use this term when talking about payment for each of those extra hours.
Owner
He is somebody or something to whom something belongs. If I own something, it means that it belongs to me, it is mine. When you are the owner of something, you get a bundle of rights. You can keep it, use it, give it away, sell it, exchange it for something else, etc.
Ownership
Ownership refers to a person who is the owner of something, it means that you have ownership of something it is yours. It may refer to an organization or group of owners. Ownership is the exclusive and the ultimate legal right to a lawful title or claim.
Paperless Office
It is an office or workplace where everything is done digitally so that there is no need for paper.this term can be used when the workplace has significantly reduced paper usage, butit uses for some things.
Pareto Principle
This is known as the 80/20 rule or principle, it is a theory which maintains that a minority of causes are then responsible for the majority of effects. This principle is used in business in order to determine how to get the best return on investment and channel your resources into the priority areas.
Partner
This term refers to a member of a partnership, such as a law or accounting form, business,it is an international arrangement between two nations, or a joint venture. A business partner is an individual or commercial entity which has some type of alliance with another individual or commercial entity.
Partnership
It is a relationship, a business one, which is formed by the agreement of two or more individuals or entities the corporations may be partners in order to run a firm as the co-owners. It is a business with two or more owners, each one is having invested in the partnership and is being liable to its debts and obligations. The owners of a partnership are called partners. The Limited partners are liable just for the money thatthey have initially invested, and do not risk losing of their private savings and assets ,if the partnership is unable to pay its debts.
Passive Portfolio Strategy
This tries to maximize diversification with a little expectational input. A passive strategy which is often then mirrors a market index.
Passporting
It is referred to as passportingrights,it refers to the rights that the financial institutions have to do business freely throughout the European Economic Area (EEA). It consists of the 28 EU nations plus Norway, Iceland and Liechtenstein. The London risks losing the passporting rights that if no agreement can be reached when the Brexit occurs. This may encourage the companies to move from London to mainland Europe.
Patent
A certificate which protects an inventor from the illegal copying, sales and other uses of his or her invention without permission. It is a right that one can use in order to protect your inventions.
the Patentable inventions include the products, the processes that give new technical solutions to problems,the methods of doing things, technical improvements for existing products, or the composition of new goods.
Path Dependence
It is an idea which tries to explain that many of the things we do and the decisions that we make today are the result of choices and decisions we made. Where we have been in the past and what we did then determines where we currently are and where we can go in future.
Even seemingly insignificant differences in the path we have taken may have major consequences for where we are now and where we can go.
Patron
The patron is defined as the following:
1. A regular customer of a bar, restaurant, hotel, or other business.
2. Somebody or an organization who provides support for another person or organization. This support may be financial. Sometimes, if the person is influential or powerful, they lend that organization their name to give it greater prestige and credibility.
Payday Loan
A small loan which provides the borrower with the cash until payday. In other words, the borrower commits to paying the lender back when he or she gets paid. The Interest rates on the payday loans are extremely high.
Payroll
the term may mean:
1. The amount which is required to pay employees during a week, month, etc.
2. The process of working out employees’ salaries, tax, deductions, and then paying them.
3. A department in a company.
4. A list of employees plus information on them.
Peer to Peer
A system or network of computers without a central administrative server. In a peer to peer system, each computer has both the server and theclient.the Cryptocurrency blockchains use a peer to peer system. Each block holds all the transaction data of the whole blockchain.
Penny Stocks
The shares which they trade at extremely low prices.
a penny stock is the one whose share is valued below $5. They are cheap and can be very volatile.
Pension
The word pension means the following:
1.this is the Income people get when they retire.
2. A boarding house or guest house in continental Europe, Latin America, the Middle East, and some other parts of the world.
Per Capita
This means per head, per person, or for every man, woman and child in the population. The term is mostly used in human stat is ticcs, but they may be used it in virtually any description of a situation which includes populations. The ‘Per capita’ is also used when talking about inheritance.
Percentage Point
This is also called as a percentage point.It is that one hundredth (1/100). If something is one percentage point greater then it does not mean it is that one percent greater.the Five percent (5%) is one percentage point more than the four percent (4%), but 25% (twenty five percent) more than four percent.
Percentile
It is also called percentile or pp.it is the value below which a percentage of data falls. If you are at the 75th percentile in your test score, it means that once you did better than those seventy five percent of the test takers. The poorest one percent of a population is at the bottom percentile, while the wealthiest 1% is at the top percentile.
Perfect Competition
It is a theoretical free market. the market in which there are many buyers and sellers so that none of them has any significant impact on the prices of goods and services, all the buyers and suppliers will seek to maximize their income , the buyers and sellers can freely enter or leave the market, the transactions do not incur costs, and all the players both buyers and sellers have access to information regarding the goods’ quality, availability and prices. Also known as a perfect market or pure competition. It is the opposite of an imperfect market.
Perk
It is a desirable extra or advantage that comes with a position or status, as in the “perks of the job.” The term implies that it is an altered, shortened version of perquisite.thereare Some organizations that are distinguish between the benefits and the perks.
Personal Finance
It is managing our financial activities such as personal banking, savings, income, budgeting, risk allocation, investments, and planning for the future.
Personal Injury
This is an injury to part of a person’s body. The term also includes mental or emotional injury resulting from an accident or attack.
Personality Testing
The techniques which the employers uses to measure the people’s personality. They will carry out all the personality tests in order to determine whether for this job the candidates are suitable or not.
Personal Loan
Aloan which is taken for personal use, rather than thebusiness use. The individual might need to borrow money in order to buy a car, renovate the home, cover the costs of a wedding, a vacation, etc.
The Personal loans are for smaller amounts otherthan the mortgages and for shorter periods.
Personal Property Coverage
The insurance which protects you from the loss of or damage to your household possessions. The Furniture and computers, for example, are items that a policy would cover. We also call it as a personal property insurance, contents insurance, and personal items insurance.
PEST Analysis
A study that helpsthe companiesto identify the threats and opportunities. Specifically,the threats and opportunities arethen related to the uncontrollable external factors.the PEST stands for Political, Economic, Social, and Technological. These are the factors which have an impact on the company’s current and future profits and overall performance.
Pet insurance
A policy which a pet owner buys in order to either lessen or eliminate the cost of veterinary care, surgery, and medications that a pet incurs. There is also pet insurance for accidents and damage/injury to third parties.
Peter Principle
A management concept in whichthe employees in a hierarchy are promoted until they reach their ‘level of incompetence’, and are then promoted no more. This term was coined by Dr. Laurence Peter, who then suggested that all over the world there are millions of managers who are in way over their heads.
Petty Cash
Petty cash is a cash in which the companies and the other organizations will keep for small or miscellaneous expenses such as the stationary, cab fares, postage, coffee, employee snacks, etc. The person who is in charge of it is called the Petty Cash Custodian.
Phillips Curve
It is a graphical representation of Professor A.W.H. Phillips’.thetheory states that the inflation and unemployment rates will have a direct inverse relationship when one goes up the other will definitely fall.
Phishing
It is an attempt so as to obtain the confidential data from somebody by pretending to be a legitimate company. The phisher communicates with his or her target by an email, phone, or text. The victim then will click on a malicious link or attachment.
Preferred Stock
It is a type of stock which has a higher claim on theearnings and assets compared to the common stock.the Holders of preferred stocks are paid a specific dividend before the common stock holders get their dividends.
Price
the amount of money which we have to pay for anything that is on sale. It is how much the vendor will accept for the sale of a good or service.the Prices will get expressed in currency, but they are used to be quoted in quantities of other products (barter). Price minus cost equals the profit the seller makes.
PriceEarnings Ratio (P/E ratio)
It calculates a corporation’s current share price compared to its earnings pershare. It can be an indicator of high earnings and the growth that is to come.
Price Elasticity
It is a measure of how the demand or supply for a product or service is affected by a price rise or price cut. If a good or service is very price elastic, it means that demand changes by a greater percentage than the price change. If the demand change is smaller or not at all, it is said to be price inelastic. This is except for Giffen goods and Veblen goods, the relationship between the price changes and thedemand is inverse when the prices go up,the demand goes down, when the prices fall the demand rises.
Price to Book Ratio
It is a financial multiple which is used to compare a share’s current market price to its book value.the Investors will use this metric so as to determine whether a stock is worth buying. This is also known as markettobook ratio and P/B ratio.
PricetoSales Ratio
This is defined as:
the ratio of the market value of equity to sales. It is calculated by dividing a company’s stock price by its sales revenue per share over a 12month period. It is also known as the P/S ratio, PSR or price to sales ratio.
Primary Market
It is where the securities, the stocks and the bonds are sold for the first time. The money from the sale will then go straight to the issuer. The primary market is part of the capital market.it is also known as the New Issue Market.
Prime Rate
The interest rate at which the American banks charge their ultracreditworthy customers, their lowestrisk customers, for loans. The Prime Rate is determined by the Federal Reserve System’s key rates. It is a benchmark for all commercial lending rates across the country. The Fed says the Prime Rate is also known as the Base Rate, and is a reference rate for many types of loans, including lending to small businesses, credit card loans, some private student loans, adjustablerate mortgages (ARM), and home equity lines of credit with variable interest rates.
Private Banking
It is a service which is offered tothe wealthy individuals by banks. Private banking is much more personalized than the general retail banking because it is then focused on the needs and the preferences of each customer.
Probate
The following are the definitions of the following:
1. it is Getting permission so as to carry out a deceased individual’s wishes contained within their will.
2. The process of settling the deceased person’s estate that is the money andthe things they owned.
Producer Surplus
This is the difference between that how much a producer sold something for and how low he or she was willing to go. If something has been sold for $100, and the producer would have gone as low as $60, the producer surplus would be $40. it is the Economic Surplus, that also includes the Consumer Surplus the difference between how much a consumer paid and how high he or she would have gone.
Product Differentiation
The process of differentiating between a good or service from others. The seller or provider will aims in order to make the product or service more appealing to a particular target market.
For example, if an automaker creates a very fast car, it is appealing to consumers who wouldlike speed.
Product Life Cycle
The four stages that every product goes through during their commercial life. They are:
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
There are the strategies which extend the decline so that the product’s profitable life can continue for longer.
Product Recall
The action of asking or telling thebuyers to return a particular product. They have to return it because itmay either has a defect or may be dangerous. For example, the defective car brakes poses a danger, while a ballpoint pen without enough ink has a defect.
Product Line
These are the series of different products which then forms a group. Allof the items in a product line should belongs to the same company. A product line will then focus, on a market sector such as personal care.
Profit
The financial reward which the business people will aims in order to receive compensation for the risks which they take. It then refers to how much money a business is making.
Profitable
In daily language we use this word for something beneficial.
In business, the term meansthe firm is able to make a profit. If a company has more money coming in than going out,then it is profitable.
Profit Margin
It is also known as net margin.it is a measure of profitability.
It is the net profit which is a percentage of net revenue. In other words, it is the amount by which revenue from sales exceeds a business’ costs.
Profit Sharing
It is giving employees a percentage of the company’s profits. It is different from employee bonuses which are targeted at specific workers for theachievements or good work.the Profit sharing is given to all or part of the workforce.
Progressive Tax
A tax system which charges a higher percentage of higher earners’ incomes than that of the lower earners. It is called progressive because the tax rate progresses upward as the incomes increases.
Itapplies to both of the income tax and sales tax, as well as the income of individuals and businesses.
Project Management
It includes theplanning,organizing andmanaging many things, including a team of people who in order to make sure that a project is completed properly, on the time and within the budget. In simple words, it is about getting thethings done knowing about what you want to accomplish, how is it going to be done, how long will it take, and what the cost will be.the Project management professionals are called project managers.
Promotion
This can be defined as the following:
1. Going up the corporate ladder,from supervisor to a manager or from manager to director.
2. Things whicha company or its marketing people do to get consumers to notice their products and wishes to buy them.
Proofreading
It is The last stage of checking a piece of writing.
It involves looking for and correcting the errors of grammar, spelling, punctuation, formatting.
Proposal
It is a suggestion in order to gain support for an idea or plan. A wellwritten proposal that can help in winning a deal. A Proposal writing is an important skill for those who are working in departements such asresearch, government, nongovernment, and business settings.
Prospect
These are the definitions of the following:
1.this is Somebody who I think can become a customer.
2. The likelihood of something that can happen in the future.
3. A job applicant.
4. These are the possibilities of success in future that is the career prospects.
Prospectus
It is a legal document whichdescribes a financial security for the potential investors. It will contains the material forthe potential buyers of stocks, bonds, mutual funds and other types of investments.
It describes the company’s business, officers’ and directors biographies, how much they earn, financial statement, and other data which the potential purchasers might be interested in.
Protectionism
It is a government policy which tries to reducethe imports and possibly also promote the exports. The government will then impose the tariffs or quotas on the imported goods and services, then subsidize theexports or can offer domestic suppliers the financial assistance.
Psychological Pricing
It is a marketing strategy in which the prices are expressed in a way that appears to be more attractive to customers. For example, $7.769 instead of $9.00.
Public Company
A public company is the one whose shares are bought and is sold freely by the members of the public on a stock exchange or overthecounter.It is opposite of a private company. It is known as a public corporation, publicly held company, or a publiclytraded company.
Public Goods
The goods and services that we all consume and which are provided by the state .the Public goods are available to all the citizens. When an individual consumes a public good, it will not stop another individual from consuming it. it is nonrival. We cannot avoid consuming it, it is nonrejectable.
Examples of public goods include clean air, national defense, emergency services, the judiciary, and public parks.
Public Limited Company (PLC)
A public company which is legalunder Indian law.
A public limited company which can only be bought by the Members of the general public who can buy and sell a PLC’s shares on the open stock exchange.
Purchase
It means to buy something.It refers to thefirm whichholds ballerinas, add powder to their shoes in order to get a better purchase on the floor which prevents slipping.
This nasdaq stock symbol specifies that it is currently in the bankruptcy proceedings.
Q Ratio Or Tobin's Q Ratio
the formulae is defined as the following:
The Market value of a firm's assets divided by the replacement value of the firm's assets.
QA
The country code for QATAR.
QAR
The currency code for the Qatar Rial.
QFC
it stands for the Qualified financial contract
QQQ
The Nasdaq-100 Index Tracking Stock. This is a tracking stock which trades like an index mutual fund which follows the Nasdaq 100 index. It trades continuously.
Quadratic Programming
it is the Variant of linear programming in which the objective function is quadratic rather than the linear. In portfolio selection, we can often minimize the variance of the portfolio which is a quadratic function that is subjected to the constraints on the mean return of the portfolio.
Qualified Domestic Relations Order (QDRO)
it is a judgment, decree, or anorder which gives a pension plan participant access to retirement assets that must be used to pay an ex-spouse or dependent children.
Qualified Endorsement
it is a signature on the back of a negotiable instrument which means transferring of the amount to some other party.It includes word limit which limits the endorser's liability.
Qualified Financial Contract (QFC)
It is a type of financial agreement.Itincludes, the securities contracts, forward contracts, repurchase agreements, and the swap agreements.however it is not limited upto them.
When the receiver repudiates a QFC, the damages are measured as of the date of the repudiation and these may include the cost of acquiring a replacement QFC.
The Special rules for the repudiation of QFCs exist so as to protect domestic financial markets.
Qualified Opinion
An auditor's opinion which is expressing off the certain limitations of an audit.
Qualified Plan Or Trust
it is a tax-deferred plan that allows the employer and employee contributions to build up savings, which are paid out at retirement or on termination of employment. The Tax is paid only when the amounts are drawn from the trust.
Qualified Retirement Plan
A retirement plan which is established by the employers for their employees that will meet the requirements of the Internal Revenue Code that is Section 401(a) or 403(a) and that person is eligible for special tax considerations.
The plan might provide for the employer contributions, as in a pension or profit-sharing plan, as well as the employee contributions.
the Employers can deduct the plan contributions which are made on the behalf of eligible employees on the business's tax return as the business expenses. The Planned earnings are thennot taxed to the employee until they are withdrawn.
Qualified Terminable Interest Property Trust (Q-TIP)
A trust which allows a surviving spouse in order to receive the income which is generated from the trust, while the actual distribution of the trust's assets is made to the other beneficiaries such as the grantor's children.
Qualified Total Distribution
it is a payment which represents an employee's interest in a qualified retirement plan. The payment must be prompted by the retirement or other separation from service, death, disability, or attainment of age 59-1/2.
The Payment that can be in installments as long as the complete distribution is made within a single tax year.
Qualifying Annuity
it is an annuity which is allowable as an investment for a qualified plan or trust.
Qualifying Child
A qualifying child for the earned income credit meets therelationhip, age, and residency tests.
Qualifying Person
a qualifying person is described as follows:
1.A qualifying person is the one who is a child, dependent, or spouse who can meet specific requirements ,For the tax credit for the child and a dependent care expenses.
The taxpayer must furnish more than half of the cost of maintaining a home that is also the home of a qualifying person.
2.A qualifying child should be under aged 13,the taxpayer must claim a dependency exemption for the child.
There is an exception for the children of divorced or separated parents.
3.A qualifying dependent, is a person who can claim as a dependent if his or her gross income was less than the exemption amount, and he must be physically or mentally incapable of self-care.
4.A qualifying spouse should be physically and mentally incapable of taking self-care.
Qualifying Share
qualifying shares are the Shares of common stock which a person should hold in order to qualify as a director of the issuing corporation.
Qualifying Stock Option
it is a benefit which is granted by a corporation that allows the employees in order to purchase the shares at a discount price.
Qualifying Widow/(er) Filing Status
If your spouse died in 2002, one can use married filing jointly as your filing status for 2002, if you otherwise qualify to use that status.
The year of death is the last year for which one can file jointly with your mentioned spouse. You may be eligible to use qualifying widow/er with the dependent child as your filing status for two years following the year of death of your spouse.
For example, if your spouse died in 2002, and you have not remarried, you may be able to use this filing status for 2003 and 2004. This filing status will enables you to use the joint return tax rates and the highest standard deduction amount that if you do not itemize the deductions. This status will not entitle you to file a joint return.
Qualitative Analysis
this is an analysis of the qualities of a company which cannot be measured concretely, such as the management quality or employee morale.
Qualitative Research
the Traditional analysis of the firm-specific prospects for future earnings. It may be based on data collected by the analysts, there is no formal quantitative framework which is used to generate projections.
Quality Of Earnings
it is Increase in earnings because of an increased sales and the cost controls, as compared to the artificial profits which are created by the inflation of inventory or other asset prices.
Quality Option
it gives the seller the choice of deliverables in treasury bond and treasury note futures contracts.
it is called the swap option. It is related to the cheapest to deliver issue.
Quality Spread
Quality spread is the difference between the treasury securities and non-treasury securities which are identical in all respects except for the quality rating.
For example, the difference between the yields on Treasuries and those on single A-rated industrial bonds.it is called as credit spread.
Quants
A person with the numerical and computer skills who then carries out quantitative analyses of companies.
Quantitative Analysis
it is an assessment of specific measurable securities or investment factors, such as the cost of capital, value of assets and projections of sales, costs, earnings, and profits.
It is combined with more subjective or qualitative considerations such as management effectiveness,the quantitative analysis can enhance investment decisions and portfolios.
Quantitative Research
It is opposite of qualitative research.it is the use of advanced econometric and mathematical valuation models in order to identify the firms with the best possible pros pectives.
Quantity Risk
it Occurs when the quantity of an asset needs to be minimize or hedged.it is uncertain.
Q Theory
It gives you the ratio of the market value of a company to the net replacement cost of its assets.
If q is greater than 1, this suggests that you should invest in that company. If q is less than 1, then it means you should sell it that is the shares are worth more than the stockholders currently expect the company to earn in profit by retaining them. It is Also known as the q Ratio, Tobin’s q, Tobin’s q Theory, or Kaldor’s V.
Qualitative Research
It is mainly exploratory type of scientific research which generates non-numerical data. It is used to understand the people’s beliefs, experiences, behavior, attitudes and interactions.
Quality
the term refers to how good something is. While quantity means how much, quality means how good.
In business, many terms use the word quality.For example, quality management, quality control, quality assurance, and quality improvement.
Quality Assurance
It is a management technique.It is a program for the systematic monitoring of various aspects of production, a service, or a project.
The objective is to ensure that the standards are being met.
It is a group of employees who will get together regularly in order to solve problems that is related to their own jobs.
Quality Control
QC is a system in manufacturing of maintaining standards. An inspector examines the final product in order to make sure it meets specifications and standards. If it is a service, then the inspector checks the end results.
Quality Creep
when the quality improvements over time,itis then accompanied by price rises,that eventually leads to a decline in sales.the Consumers become unwilling to pay a premium for all the quality improvements.
Quality Engineering
the engineering discipline which focuses on the principles and the practice of product and the service quality assurance and control.
Quality Improvement
the systematic approach to the elimination or reduction of waste and losses in the production process. It involves weeding out what does not work properly, and then either eliminating it or improving it.
Quality Management
everything a company does in order to make sure that it produces and delivers its goods and services to specifications, and also at the appropriate cost.
the Quality management consists of four components mainly quality planning, quality assurance, quality control, and quality improvement.
Quality Management System (QMS)
It is a set of business processes which focuses on meeting the customer requirements and regulatory requirements. The system also focuses on improving customer satisfaction.
Quality of Life
the term refers to how well a person or community lives. It includes their state of mental, physical, emotional, and social well-being.
Quantity Theory of Money
It is the foundation stone of monetarism.
A theory which states that the money supply and prices in an economy go up and down in direct proportion to each other. When the money supply goes up, the price levels also goes up by approximately the same percentage. when the money supply declines,the price levels goes down by approximately the same percentage.
Quash
To quash means an uprising or riot so as to suppress it completely using force.It is to officially declare that a court decision or judgment is now invalid or null. If I quash a rumor, it means that I completely suppress it.
Quick Ratio
It measures a company’s ability in order to use its most liquid assets in order to clear all current liabilities. It is an indicator of a business financial strength.
Quick Response (QR) code
It is a two-dimensional barcode comprising of many small black and white squares which resembles a randomly-tiled mosaic.
the QR codes can hold a lot more data than the ordinary barcodes and are very easy to scan and process. For example Modern smartphones, have the technology to scan and decode them.
Quitclaim Deed
It is a legal instrument in which the owner of a property that is the grant or transfers the interest to another person that is the grantee. The grantor gives up all rights to the grantee.
Quorum
These are the smallest number of members which are required to be present at a meeting before it can officially start, or before official and binding decisions are taken.
Examples are the Parliaments, company shareholder meetings, associations, boards, etc.,they have quorums.
Quota
In business, a quota could mean the sales target which sales people or their departments have to meet by a specified date. Basically, the term means a set amount.In internationaltrade,this term refers to the imposition of limits in either the quantity or monetary value of targeted imported goods or services. The Quotas may be directed at imported goods or specific countries.
Random Walk TheoryIt is called the random walk hypothesis,which states that it is not possible to forecast accurately and consistently which way the stock prices will go, regardless of how carefully you think you have observed and detected past trends.
the Shares and markets move randomly and unpredictably, and our ability to determine whether the prices might go up or down or by how much is no better than trying to guess where a drunkard might go next as he zig-zags up and down the road. Some economists those who support the non-random walk theory, disagree.
Ransomware
It is a type of cyber blackmail.
It is a type of malware which infects a computer. The computer owner cannot access files or data unless they pay a ransom to the cybercriminal who has placed the malware.
Rate of Return
the profit or loss,that one can make on an investment. This is a ‘per year’ calculation.
It is the ratio of the income from an investment over the cost of that investment.
We can use the rate of return in order to measure the economic or financial success. When deciding which investment to buy, one usually compare their different historical rates of return.
Ratings
there are various meanings:
1.it is an assessment by the credit agency on a company’s or the government’s ability to pay back the debt which is a bond.
2. An analyst’s or expert’s recommendation on whether to sell, purchase or hold onto a specific company stock.
3. The percentage of viewers who then chose a particular channel or program on television or radio at a specific time on a specific date.
Rational Expectations Theory
It is a behavioral economics theory which states that, on an average, most people can predict the future conditions, fairly accurately, because we analyze all of the available data and then take the measures accordingly.
It is opposite with the adaptive expectations theory. It is also known as the rational expectations hypothesis or the theory of rational expectations.
Reservation Wage
This is the lowest pay that which a person would accept for doing a particular job. The reservation wage of a brain surgeon will be significantly higher than that of a window cleaner. The People usually have a lower minimum for jobs which they find pleasant, compared to the unpleasant or dangerous occupations. Our reservation wage can change during our lives.
Reserve Currency
A hard, foreign currency which is held by the governments and central banks as part of the nation’s official reserves.
The most important reserve currency today is the US dollar. Other currencies, including the French franc, Dutch guilder, Portuguese and Spanish real, Greek drachma, and the British pound sterling have all been dominant currency reserves.
Reserve Ratio
This is the proportion of customers deposits which a bank or any other financial institution has in the form of available cash. Reserve ratio requirement is the statutorily enforced proportion. Most countries central bank sets a reserve ratio requirement although some don’t. The reserve ratio may be referred to as the bank reserve ratio, cash reserve ratio, or bank reserve requirement.
Reserves
These are the liquid assets which are held by an individual, business, bank, central bank, or government in order to meet the expected payments in the future, unexpected emergency needs, and take advantage of opportunities that may arise.
the Energy reserves are the oil, gas and coal reserves we know of around the world or specific to countries or regions, which we could extract with our current technology.
Reshoring
This is the opposite of offshoring.
It is a term which is used to describe bringing back offshored manufacturing to a country. For example, a US automobile company closing manufacturing facilities in other countries and opening of new ones in the US.
This typically occurs when the production costs, such as labor or raw materials, become cheaper at home or more expensive abroad.
Residual Risk
A risk which is not eliminated or removed even after taking many preventive measures to remove the risk.
Responsible Investment
The investor hopes that this kind of investment could provide him return as well as benefits.these could be environmental, related to the justice and human rights, the reduction of poverty, etc. this is known as sustainable investment, ethical investing, green investing, and triple-bottom-line investing.
Restrictive Practice
the restrictive practices refers to an arrangement by a group of people, often workers,so as to restrict the entry of other workers or limit output.
the Companies which abuse their dominant power in the market are guilty of restrictive practice. Another example is when a trade union only allows its members to work in certain jobs that is a closed shop.
Retail
the sector of the economy in which the ultimate consumer purchases the products. The ultimate consumer does no resell what he or she buys. The Shops and thestores are in the retail sector.they are retailers.
Retail Banking
the banking service which is provided to the individuals (members of the public) and small companies, as opposed to the service banks provide to the other banks, financial institutions, and large corporations.
Retail Investor
He is a person who willinvests using his or her own money, rather than the other organizations’ or people’s funds. Retail investors tend to trade in much smaller amounts than institutional investors.
Retained Earnings (RE)
the earnings of a company that have been accumulated since it started doing business, after the dividends are paid. On a company’s balance sheet its accumulated retained earnings appears as owner’s equity.
Return on Capital
This is how much people will get back from an investment in one year in relation to the total they had invested in that year.
Return on Equity (ROE)
It is an important metric of profitability. It compares a company’s net profit directly to the value of the company’s equities ,what the shareholders would outright own.
Return on Investment (ROI)
It is known as return on net worth or the return on owners’ investment, it is a measure of how profitable an investment is. A high ROI means an investment which generates favorable profit when compared to its investment .
in simple words, it measures that how much will you get back from your initial investment.
Revealed Preference Theory
a theory which suggests which we can determine what the consumers’ preferences are by observing their purchases under a range of different circumstances, particularly different levels of incomes and prices. According to the theory, our preferences are fairly constant given a set of choices, which we tend to make the same choices again and again over time if our circumstances have not been changed.
Revenue
the money which a company receives from the sale of goods and services to clients and customers, as well as its income from royalties and interest. It is a business’ income over a specified period.
Reverse Mortgage
It is a loan more specifically home loan which lets the homeowner convert a portion of the equity of his or her house into cash. It is a mortgage where the bank will pay the borrower,his age should be 62 years, rather than the other way round.
Reverse Stock Split
When by merging, a company reduces its total number of shares outstanding . The total could be halved, and should be brought down to one quarter, or any fraction. Each share will go up in value proportionally.it is known as a stock merge, reverse split or reverse share split.
Revolving Credit
This is a type of credit line which renews every time till the borrower pays it off, as opposed to the installment credit.it is Also known as an evergreen loan.
Ricardian Equivalence
The theory was developed by David Ricardo, and was later elaborated by other economists. It is a proposition which suggests that when the government boosts spending with the borrowed money, it will not result in increased consumer demand..
Ricardo, David
David Ricardo was an early 19th century English political economist whose writings and concepts continue to influence modern economic thinking. He was a believer in free trade and a free market economy. He became interested in economics after reading Adam Smith’s The Wealth of Nations.
Rightsizing
It is adjusting the size of a company.its meaning is similar to downsizing .it is primarily adjusting its workforce,due to which it is able to make a profit in the current conditions of the marketplace.
Rightsizing always means reducing the workforce by making the employees redundant, but it could in theory mean taking on more and more staff.
Rip-Off
This is something or a situation in which the consumer paid too much. We use the term when we are not happy with our purchase because we realize it is worth much less than what we paid. The term can be a verb or a noun, That is a rip-off,” or “The shop ripped me off.”
Ripple
It is a real-time gross settlement system, remittance network, and currency exchange created by the Ripple company. Ripple or XRP is also the name of the company’s cryptocurrency. The company claims that with its system, people can send money across the world securely and much more cheaply than with traditional systems.
Risk
It refers to the likelihood or threat of damage, injury, loss, liability or any other undesirable occurrence which results from internal or external vulnerabilities. There are many types of business risks, including interest rate risk, capital risk, settlement risk, liquidity risk, operations risk, political risk, country risk, sovereign risk, default risk, delivery risk, economic risk, exchange rate risk, reinvestment risk, refinancing risk, and underwriting risk.
Risk Analysis
It is the systematic study of the uncertainties and risks we encounter in business, and many other areas.
This is the process of determining, analyzing and defining the risk of danger to individuals, companies, governments and even the whole economy, posed by potential human-caused and natural adverse events.
Risk Assets
These are the assets which carry an element of risk, such as stocks, currencies, property, commodities, high-yield bonds, and other financial products that fluctuate in price.
Risk Averse
It is not wanting to take risks. A risk averse investor prefers secure investment, such as bonds or savings accounts, even if the returns are relatively low. The opposite is a risk loving investor.
Risk-Free Rate
the theoretical rate of return states that an investment which carries no risk yields over a given period. An investment with a risk-free rate has a guaranteed rate of return the expected return and actual return are always the same. Risky investments are compared with risk-free ones to determine several aspects of a business, including the cost of capital.
An example of a risk-free investment is government stock, such as US Treasury bonds.
Risk Management
This is the process of identifying, quantifying and managing the risks which a company, organization or any entity might face. As the business activities’ outcomes are unpredictable, they have some element of risk.
These risks includes operational failures, strategic failures, market disruptions, financial failures, regulatory violations, environmental disasters, etc.
Risk Neutral
It describes people who are totally insensitive to therisk. A risk neutral investor is only interested in the possible return, and ignores the potential risks or losses completely. Risk neutral contrasts with risk averse, which describes a person who prefers certainty.
Risk Premium
This is the difference between the expected return on a high-risk investment and a risk-free one.
For example, if a risk-free Treasury bond yields 3% per year, while a company-issued higher risk corporate bond yields 6%, then risk premium is 3%. Investors say that a greater expected return risk premium is required for higher-risk investments, otherwise they are unwilling to bear the risk.
Risk-Seeking
Risk seeking or risk-loving,he describes a person who loves risky investments. The term might also refer to an individual who is willing to give up his or her secure job to set up a company. Risk-seeking is the opposite of risk-averse. People who have nothing to lose tend to be more risk-seeking than those in secure, well-paying jobs.
Robot
It is a machine or device which we can program. We program it to do things. Some robots have artificial intelligence or AI. The AI makes the robot think and behave in a similar way to humans. Some robots look like humans, but most don’t.
S&P 500
the Standard & Poor’s 500 is a stock market index which includes the 500 largest companies in terms of total market capitalization which are listed on the New York Stock Exchange or NASDAQ.
Safe Harbor
A provision in a regulation, law, contract or agreement which affords protection from penalty, oversight or liability under certain circumstances, or if a number of specified conditions are met. The term may refers to a strategy that a business which is being targeted for a takeover might use to fend off the predatory company.it acquires a heavily-regulated firm, thus discouraging the acquiring company from going ahead with the hostile takeover.
Salary
This is the money which is given as payment from an employer that an employee has worked for. The Salaries are given to an employee expressed as monthly or annually and are paid every month. Unlike wages, salaries are fixed and they do not vary if the employee worked overtime.
Side effect
It is an adverse reaction or physical response to a drug or medicine. The term can also refer to an unintended outcome of a decision or action.
Silver
silver is a precious metal often bought as an investment or store of value. Find out what drives the price of silver and its risks such as extreme price volatility.
Single Market
It is a group of nations which trade with each other without imposing import taxes, thus creating one large market. Examples include the European Union and the North American Free Trade Agreement. Some single markets aim for total economic union.
Sino-Foreign Cooperative Joint Venture
A joint venture agreement between a Chinese and foreign company. This type of joint venture gives the foreign company more flexibility than a SJV.
Sino-Foreign Equity Joint Venture (SJV)
It is a limited liability company which has the status of a Chinese legal person.
Sister Company
These are the two companies with the same parent company are sister companies, they are both subsidiaries of the same company.
Smart Contract –
the lines of code that make a contract function automatically instead of relying on lawyers or other intermediaries. It is a self-executing contract.
Smart Money
This simply means that
1.the Investments by experts who can spot or foretell market trends.
2. The collective force of big money that can shift markets.
3. Venture capital where the investors also put in their own time and provide know how and advice.
4. Where the good bets are going that is gambling. It is the opposite of dumb money or stupid money.
SME
Small and Medium-sized Enterprise or Small to Medium-sized Enterprise. They are not subsidiaries of other companies, i.e., they operate independently, and have a maximum of 250 and 500 employees in the EU and USA respectively.
Social Capital
This is the value of human networks. The term refers to the collective value of all human networks and the tendency which arises from these networks for people to trust each other and do things together.
Social Commerce
A type of e-commerce which utilizes online social networks in order to drive the purchase and sale of products and services. The Social commerce uses online communities, ratings, F-commerce, social advertising, shares, and stores inside the social networking website to buy and sell goods and services.
Social Currency
This is the economic value of each individual’s or entity’s relationships, both in real life and online.the Companies have become aware of social currency and they are actively weaving their brands into social networking sites, blogs, forums and other environments in order to create social currency for them, that is they get people to include their brands when they interact with each other.
Social Media
This is the collective of online communications channels in which people, companies and organizations create and share content in blogs and social networking sites. The applications and websites are dedicated to forums, social bookmarking, social networking, product and service reviews, social curation, virtual worlds, wikis and other kinds of social media.
Social TV
It is watching a TV program while at the same time communicating it through the social media with other people on a smart phone or tablet.
Socialism
It is a term with many meanings,that is ranging from pure communism to a free-market system with a minimum safety net for vulnerable people. In socialism, unlike communism, private property is allowed. However, socialists support more government intervention than capitalists do.
Socially Responsible Investing
This is investing money into businesses which conform to a set of ethical, moral and environmental standards. The socially responsible investor may refuse to invest in companies that sell tobacco products, weapons, or those that are high polluters. Also known as sustainable investing, socially conscious investing, green investing, ethical investing or SRI.
Soft Loan
A loan in which the interest rate is either very low or zero. Sometimes, the borrower is given longer-than-normal repayment periods as well as interest holidays.it is known as the concessional funding or soft financing. The World Bank provides soft loans to the developing nations for worthwhile projects.
Soft Brexit
It is leaving the European Union but keeping some of its features, including the free access to the EU market, the customs union, and passporting rights.
in order to have these benefits the country would have to sign up to the free movement of people. The opposite of a Soft Brexit is a Hard Brexit, in which the total border control is regained, but it is unfettered access to the EU market is lost, as are passporting rights.
Soft Currency
It is also called a weak currency,it is the one which people trust less than a hard currency. A soft currency loses its purchasing power over time in relation to the hard currencies.the Business people prefer to carry out international transactions with hard rather than soft currencies. A soft currency is the least popular for central banks as far as holding foreign exchange reserves are concerned. Developing nations tend to have soft currencies, while the advanced economies have hard currencies.
Software
These are all the programs and the instructions and codes within a computer which make it possible to use it. The physical parts of a technical device are called the hardware. The Software refers to the programs which perform specific tasks. Without software, none of our technical equipment would work.
Solvency
In a business’, person’s or entity’s ability to meet long-term financial obligations. Solvency equals total assets divided by total liabilities. If the result is greater than 1, the company is solvent, if it is less than 1 it is insolvent. Liquidity and solvency have different meanings the article explains the meaning of each term.
Specialization
This is the opposite of diversification, it refers tothe companies selling off divisions which are not closely related to their core activities, so that they can focus res in specialized areas and thus become more streamlined and profitable.
Workforce specialization, also called the ‘division of labor’, means individual people specializing in what they are good at, and working in just those areas. Specialization may refer to individuals, studies, careers, companies, organizations, communities, regions and even whole nations.
Speculation
It is an investment in which the investor wants to make a quick profit.the Speculation involves placing money in short-term investments which carry high risk. However, they willalso provide the opportunity to make great gains rapidly. The person involved in speculation is called an investor.
Speculative Investment
It is an investment where all that matters, as far as the purchaser is concerned, it is the short-term profit which can be made when it is sold. The Traders in themspeculative investments are known as speculators. They are not interested in the annual income or dividends an investment may provide, but just its price fluctuation and making a profit.
Sponsor
it means to pay for part or all of the costs that is involved in staging an artistic or sporting event in return for advertising. The person, company or entity that does this is called a sponsor. To sponsor may also mean to pledge to donate money to somebody in a charitable endeavor, such as offering to contribute a certain amount for each mile run in a marathon. A company which pays for the broadcasting of a TV program such as a soap opera is its official sponsor.
Spot Market
It is a public financial market where commodities and financial instruments are traded for immediate delivery, or two to three days at the most.it is also called as the physical market or cash market.
Spot Price
It is the market price at which something is bought and sold for payment and delivery now. The spot price is opposite of the futures price or forward price, which is the price at which an asseta commodity, security or currencycan be purchased or sold for delivery at a future date.
Spread
the difference between the prices of one item or interest rate on different days, or two items or interest rates on the same date. The term can be used for insurance underwriting, share trading, bond values, or virtually any type of security or commodity.
Stability
something which most of the central banks and governments across the world strive for. An economically stable economy is one which experiences small changes in GDP growth rates, and long-term low inflation. For the economic stability to exist in a country, it needs a stable political system, usually a free market economy, good levels of infrastructure, technological development, and human capital.
Stagflation
an economy is in a stagflation but when the GDP growth is either very slow or absent, unemployment is too high, prices are rising too fast, and demand is weak.the Policymakers have a serious problem when stagflation strikes, because anything they do to bring down inflation is likely to slow down economic growth even further, kill demand, and exacerbate the unemployment problemand any measures which are taken to address slow GDP growth, unemployment, or the demand will push up inflation.
Stakeholder
anyone or group of people who has an interest in a company or organization are considered to be stakeholders.
Standard of Living
it is a measurement which tells us how well the citizens of a country, region, or town live. It refers to people’s levels of wealth, how much they possess (material goods), their levels of health and access to healthcare, education, etc.
Standby Credit
the funds which are made available to the lower income nations that find themselves with temporary balance of payments problems, or experience unforeseen catastrophes, such as floods or earthquakes. An example is the IMF Standby Credit Facility.
Startup
a new company which an entrepreneur has set up sometimes a group of them.the Startups which differ form other new businesses in that venture capitalists that likes to invest in them. The founder wants the company in order to grow fast and one day they become a giant multinational.
Statistical Learning
in computer science, this term refers to a set of tools for understanding and modeling complex datasets. It is a fairly new area of artificial intelligence, together with machine learning.
Statistical Significance
It refers to how reliable that a statistic is. If something is statistically significant, it means that the finding is reliable and it is highly unlikely to be the result of chance or happenstance. In the world of statistics, the ‘significant’ does not mean ‘important’, it means ‘reliable’ or ‘unlikely to be due to chance’.
Statistics
It has two meanings. In singular form it is the subject for e.g. statistics, economics, mathematics, biology, etc. In the plural form it refers to the numbers .for e.g. statistics are pointing to an accelerating incidence of obesity across the country.
Statistician
he is a person who gathers, analyzes, interprets and presents numerical, quantitative datastatistics. They might work in a wide range of fields and sectors, including the transportation, finance, government, education, forensics, astronomy, market research and many more. They need to be good at mathematics, dealing with people, and making the presentations.
Sterilized Intervention
This is the buying of foreign currency by a country’s central bank in order to influence the value of the domestic currency, without changing the money supply.
When the central bank purchases or sells some of its foreign currency reserves, the country’s money supply can get affected. This effect can be ‘sterilized’ if the government buys or sells the equivalent amount of securities, such as Treasury bonds.
Sticky Prices
The prices which do not respond rapidly to thechanges in demand, supply, production or delivery costs. The Sticky prices are the opposite of flexible prices. The price of a dollar in currency exchange markets is flexibleit changes by the minute. The prices of hotel rooms, on the other hand,will take several months to respond to the changes in the market’s environmenthotel rooms have sticky prices.
Stockbroker
He is an individual who then buys and sells the securities, such as stocks and shares on behalf of private and commercial clients. They do this in return for a fee or commission. They may also trade on their own account and help companies so as to issue securities.
Stock Index
It is a computed average of the sample of share prices, representing either a particular sector, market, the whole economy, a country, or a geographical area.
Examples include the S&P 500 and FTSE 100. It is also called a stock market index or a share index.
Stock Market
It refers to the whole market where the shares such as the stocks and the equity are bought and sold. The stock market includes what occurs in stock exchanges, as well as over-the-counter transactions.
Stocks
in finance, the term refers to the company shares, hence the term ‘stocks and shares’ and the ‘stock market’.the Stocks in a warehouse means the goods are stored for the future orders or deliveries.a reserve of products for the future use.the Government stocks, refers to one of the bonds which are sold by the government in order to finance its budget deficitgovernment bonds. The expression on the stocks, which comes from shipbuilders, means ‘under construction’.
Stock Split
It is an increase in the total number of a company’s shares outstanding,which is then accompanied by a proportionate decline in the value of each share. The Dilution does not occur in a stock split. This is also known as a share split or stock divide.
Stock Swap
It is known as a stock-for-stock, share-for-share exchange, or share exchange.
when a corporation offers a certain number of its shares for each share of another company.this Often occurs during an acquisition. In most cases, some cash is also included in the transaction.
Stress Testing
It is a series of simulated scenarios that the banks, the other financial institutions, investment portfolios, and even whole economies are exposed to, in order to determine how well they might fare againstthe economic shocks. Ever since the 2007/8 global financial crisis and Great Recession whichfollowed,the financial institutions across the world have had to undergo stress testing,so as to determine their ability to deal with a simulated economic crisis.
Structural Unemployment
The unemployment which is not caused by the cyclical changes in the economic cyclesuch as declining demandbut then rather from changes in the structure of the economy itself. The Technological advancements, such asthe artificial intelligence and robotics, i.e. automation.it can reduce the size of a company’s workforce. The workers who were laid off do not have the skills that the employers are looking for, such as therobot operatorsso there is a mismatch between the available unemployed workforce and what companies are looking for.
Subprime Mortgage
It is a type of mortgage which is made out tothe borrowers who have a very low credit rating.
Subsidiary
a company which is at least 50% owned by a parent company or holding company. The holding company has a controlling interest. The subsidiary can be any type of commercial enterprise, such as a limited liability company, a corporation, or a state-owned business.
Subsidy
There are many types of subsidies.
This is the money the government gives directly to the companies, farmers, organizations, individuals and other entities in order to encourage production, increase exports, promote research, prevent companies from going bankrupt, reduce joblessness, or make the price of a food, product, service or utility more affordable.
Substitute Goods
These are referred toas the simply Substitutes,these are two or more products which can replace each other, they can be used by the consumers for the same purpose. When the price of one rises, thedemand for the other goes up.the two products have a positive cross-elasticity of demand.
Examples are Coke and Pepsi, Crest and Colgate , or MacDonald’s or Burger King hamburgers.
Subtractive Manufacturing
It is the subtractive fabrication which involves taking the parts away from something in order to make an object. For example, when a lathe cuts away the bits from a metal block. It is the opposite of 3D printing or additive manufacturing.
Sunk Costs
This is the money which has already been spent and that you will never get back because it is not recoverable. If a company spends money on theresearch and development, advertising, or building a new plant, that expenditure has gone .
itis not possible to claw back that money. Rather than continue funding a project which probably won’t help the company make money, senior management should cut their lossesaccept the expenditure as a sunk costand focus on other things.
Supplier
He is a person, organization, or even a country which provides or supplies that is something to another person, organization, or country. for example Saudi Arabia, sells oil to Japan.here Saudi Arabia is the supplier while Japan is the buyer.
Supply
This is to provide something which is needed or wanted in order To take over. A stock of something which is available for use.
Supply and Demand
the most fundamental concept in economics is the supply and demand, it will play a huge role in determining the prices of the goods and services in a market economy.
Supply Chain
the whole process of making and selling commercial products. It includes every stage, from the supply of raw materials to delivering the product to the ultimate consumer. In other words, from the point of origin to the point of consumption.
Supply Chain Management (SCM)
The supply chain management is a cross-functional approach, which integrating activities into the supply-chain processes. It is the management of the entire production flow of a good or service.
Supply-Side Policies
the term describes economic policies aimed at influencing output and employment through their impact on the supply-side of the economy. This is opposite with the Keynesian economics, which focuses on demand-side policiesboosting demand.
In the 1980s, US President Ronald Reagan and UK Prime Minister Margaret Thatcher pursued supply-side policies.
Surety Bond
It is an agreement between the three parties that is the Principal, the Surety and the Obligee. The Surety is an insurance company which provides a financial guarantee to the Obligeethusually the government) that the Principal who is the business owner will fulfill all their obligations. Essentially, a surety bond is a risk transfer mechanism. Evidence of a contract of suretyship dates back to 2750 BC.
Sustainable Growth
this term may be used for a company or a whole economy, and it refers to the ability in order to grow consistently without hitting problems or creating problems for the future. Sustainable growth is used when talking about the environmentspecifically, economic growth over the long term without using up all the non-renewable res, polluting the planet, or contributing to global warming.
SWIFT Code (BIC Code)
a SWIFT code that contains 11 characters. It is a form of bank identification which helps to facilitate international wire transfers.
SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
It is a portfolio tools and technique which helps people or organisations identifies their key strengths, weaknesses, opportunities, and threats. This type of analysis will help the individual or organization plan a strategy. We call it a SWOT Matrix
Syndicated Loan
It is known as a syndicated bank facility,it is a loan where a number of banks and financial institutions will form a group that is syndicate and lends money to one borrower, usually a corporation, government or large project.
Systemic Risk
The risk which could affect the whole economy, usually because a company is too big to fail collapses. Companies that are ‘too big to fail’ are typically major banks if a major bank collapses, other banks that it owes money to will have problems, people get to hear about it and clusters of bank runs ensue etc. Governments will generally bail out a troubled large financial institution because of the systemic risk. Opponents say they shouldn’t, because knowing that they will be rescued encourages behaviors that increase systemic risk.
Takeover
It is also called an acquisition, although acquisition is taken in positive sense while takeover is taken in a negative sense.It is when through the purchase of its shares one company acquires the majority or controlling interest in another company, in simple words, when one firm buys another firm. The purchasing company is known as theacquirer orbidder, while the company being bought is called thetarget.
There are many types friendly, hostile, reverse and backflip takeovers.
Tangible Assets
These are assets which we can touch because they have a physical form, unlike intangible assets.
Examples
of tangible assets include land, buildings, equipment, cash, and inventory.
Tariffs
The duties or taxes that are levied on the imported products. The objective is to either protect domestic suppliers and jobs at home, or raise revenue for the government. the Tariffs and quotas are the two weapons which the countries can use in order to improve their balance of trade and protect domestic producers.
Tax
It is an amount of money which has to be paid to the government based on a person’s income, a company’s profit, how much a dead person bequeathed, or the cost of goods or services bought. Tax is compulsory.
If one deliberately cheats the tax authorities and don’t pay, one could be facing a fine or even jail time.
Tax Avoidance
everything we do in order to reduce our tax bill but it should be done legally. Tax avoidance, unlike tax evasion, is legal.
If I want to avoid tax, I will need to find an accountant who specializes in taxes, and ask him or her to advise me on how to reduce my tax bill.
Tax Evasion
The illegal methods used to not pay tax.
Examples of tax evasion includes circumventing or frustrating tax laws, deliberately understating taxable income, willful non-payment of taxes that are due, and hiding your money.
Tax Haven
It is a country, territory, or part of a country which offers very favorable tax rates and other conditions, especially to the foreigners who deposit their money there. Tax havens are commonly used by tax avoiders and tax evaders, who place their money there legally or illegally respectively. It is also known as asecrecy jurisdiction.
Tax Return
It is an official form that the taxpayers fill in with the details of their income and personal situation.
It helps the people and businesses calculate how much tax they owe or Technology
This is the application of scientific knowhow for practical purposes. If you solve practical problems using your scientific knowledge, you are using technology. It has been with us since we first set food on this Earth.
Telecommunications
This is communicating at a distance.this is Also known as telecom, today the term usually means communicating over long distances using hi-tech equipment, such as satellites, fiber optics, mobile phones, laptops, the Internet, TV or radio broadcasting, and telegraphs.
Telecommuting
It is also called teleworking,which means working away from the office, remotely, which in the majority of cases means working from home. The person who is engaged in telecommuting is called a telecommuter or teleworker. Telecommuting has become much more common since the Internet emerged at the end of the last century.
Telemarketing
It refers to contacting the potential customers, usually by phone, in order to get them to buy something, pay for a service, contribute to a charity, reveal their preferred party in the next elections,they provide feedback, make an appointment, receive a free sample, or to take part in a survey.
Telemarketing
can be business-to-business (B2B) or business-to-consumer (B2C). The term may also refer to using fax or the Internet for marketing purposes.
Teleworking
It is also called ‘telecommuting’,which means working remotely. This could be working at home, in a cafe, in a designated work center, on a train, etc. A person who teleworks is a teleworker or telecommuter. Teleworking is becoming progressively more popular in most parts of the world. It offers several advantages to both the employer and employee.
Third Way
The Third Way was promoted by the US President Bill Clinton and British Prime Minister Tony Blair in the 1990s, and then the German, Italian, Dutch and other European leaders. Today, the Third Way is rarely mentioned ;some say its outlook is bleak.
It is an ideology which states at the center of the political economic spectrum. The Third Way is neither socialism nor capitalism, it is eclectic it takes from both wings that is left-wing and right-wing approaches, combining the two into a middle way.
Threshold
This is the point at which something changes or begins to belong to a particular class. Tax-free threshold is the amount of income for which no income tax is payable. Your pain threshold is the level at which pain starts to be felt. People with a low fear threshold get scared easily.
Tier 1 Capital
this is a bank’s core capital. it is considered to be more reliable As opposed to Tier 2 capital,
Tier 2 Capital
It is an element which is used to measure a bank’s total capital base.
This form of capital is considered to be riskier than Tier 1 capital.
Time Value of Money
the concept that the money has a higher value today than at any future date, because it can grow with time. It is Also called as present discounted value.
Tip
This word may mean a gratuity means money that you give to a waiter or hairdresser, or the pointed end of something. It may also refer to a useful piece of advice or information. If a room is a tip, it means that it is a mess.
Title Loan
It is a type of secured loan in which the borrower puts up a possession, such as a vehicle, as collateral. If the borrower defaults, the lender can then seize that item.
Total Return
This is the actual rate of return of an investment,which is calculated by including interest, dividends, capital gains, and distributions realized over a specific period. It is the total return on an investment or portfolio of investments that takes into account both the capital appreciation on the portfolio as well as the income received on it.
Toxic Assets
The financial assets whose value has declined significantly, will probably continue falling, and for which there is no longer a functioning market.
Toxic Debts
These are the debts which are not likely to be paid back to borrowers. Essentially the toxic debts are a class of assets that were once of value or were believed to hold value but are now worthless or have almost completely declined in value.
Track record
It is a reference to the past performance that the people often use in order to imply that the future performance will be similar
A management consultant, for example, may then assure clients that they are right for the job because of their track record of success in their industry.
Trade
It is the activity of purchasing, selling or exchanging goods or services within a country or between nations. Trade may refer to the volume of activity that happens within a business enterprise, industry, etc. it may also be a particular skilled job. It means also to buy-sell shares, bonds and other financial instruments on a stock exchange.
Trade Area
It is also known as a market area, it is the area in which a company does business; its commercial territory. The trade area of a shopping center, wholesaler, or department store is the geographical area where the sales are made. The Trade areas tend to be smaller for cheap, everyday goods, such as the groceries and gasoline, and larger for more expensive items, such as furniture. In simple words, we are willing in order to travel further so as to buy an expensive dining room furniture than to fill our cars with fuel.
Trade Credit
It is an arrangement whereby the customers can pay for goods or services received at a later date, generally 30, 60 or 90 days later. For many businesses, it is a useful way of improving cash flow.
Trade Deficit
It is also known as a trade gap, it is defined as being a negative commercial balance. It occurs when a nation imports more products than it exports.
Trade Show
it is also known as a Trade FairTakeoverIt is also called an acquisition, although acquisition is taken in positive sense while takeover is taken in a negative sense.It is when through the purchase of its shares one company acquires the majority or controlling interest in another company, in simple words, when one firm buys another firm. The purchasing company is known as the acquirer orbidder, while the company being bought is called the target.
There are many types friendly, hostile, reverse and backflip takeovers.
Tangible Assets
These are assets which we can touch because they have a physical form, unlike intangible assets.
Examples
of tangible assets include land, buildings, equipment, cash, and inventory.
Tariffs
The duties or taxes that are levied on the imported products. The objective is to either protect domestic suppliers and jobs at home, or raise revenue for the government. the Tariffs and quotas are the two weapons which the countries can use in order to improve their balance of trade and protect domestic producers.
Tax
It is an amount of money which has to be paid to the government based on a person’s income, a company’s profit, how much a dead person bequeathed, or the cost of goods or services bought. Tax is compulsory.
If one deliberately cheats the tax authorities and don’t pay, one could be facing a fine or even jail time.
Tax Avoidance
everything we do in order to reduce our tax bill but it should be done legally. Tax avoidance, unlike tax evasion, is legal.
If I want to avoid tax, I will need to find an accountant who specializes in taxes, and ask him or her to advise me on how to reduce my tax bill.
Tax Evasion
The illegal methods used to not pay tax.
Examples of tax evasion includes circumventing or frustrating tax laws, deliberately understating taxable income, willful non-payment of taxes that are due, and hiding your money.
Tax Haven
It is a country, territory, or part of a country which offers very favorable tax rates and other conditions, especially to the foreigners who deposit their money there. Tax havens are commonly used by tax avoiders and tax evaders, who place their money there legally or illegally respectively. It is also known as as ecurecy jurisdiction.
Tax Return
It is an official form that the taxpayers fill in with the details of their income and personal situation.
It helps the people and businesses calculate how much tax they owe or Technology
This is the application of scientific knowhow for practical purposes. If you solve practical problems using your scientific knowledge, you are using technology. It has been with us since we first set food on this Earth.
Telecommunications
This is communicating at a distance.this is Also known as telecom, today the term usually means communicating over long distances using hi-tech equipment, such as satellites, fiber optics, mobile phones, laptops, the Internet, TV or radio broadcasting, and telegraphs.
Telecommuting
It is also called teleworking,which means working away from the office, remotely, which in the majority of cases means working from home. The person who is engaged in telecommuting is called a telecommuter or teleworker. Telecommuting has become much more common since the Internet emerged at the end of the last century.
Telemarketing
It refers to contacting the potential customers, usually by phone, in order to get them to buy something, pay for a service, contribute to a charity, reveal their preferred party in the next elections,they provide feedback, make an appointment, receive a free sample, or to take part in a survey.
Telemarketing
can be business-to-business (B2B) or business-to-consumer (B2C). The term may also refer to using fax or the Internet for marketing purposes.
Teleworking
It is also called ‘telecommuting’,which means working remotely. This could be working at home, in a cafe, in a designated work center, on a train, etc. A person who teleworks is a teleworker or telecommuter. Teleworking is becoming progressively more popular in most parts of the world. It offers several advantages to both the employer and employee.
Third Way
The Third Way was promoted by the US President Bill Clinton and British Prime Minister Tony Blair in the 1990s, and then the German, Italian, Dutch and other European leaders. Today, the Third Way is rarely mentioned ;some say its outlook is bleak.
It is an ideology which states at the center of the political economic spectrum. The Third Way is neither socialism nor capitalism, it is eclectic it takes from both wings that is left-wing and right-wing approaches, combining the two into a middle way.
Threshold
This is the point at which something changes or begins to belong to a particular class. Tax-free threshold is the amount of income for which no income tax is payable. Your pain threshold is the level at which pain starts to be felt. People with a low fear threshold get scared easily.
Tier 1 Capital
this is a bank’s core capital. it is considered to be more reliable As opposed to Tier 2 capital,
Tier 2 Capital
It is an element which is used to measure a bank’s total capital base.
This form of capital is considered to be riskier than Tier 1 capital.
Time Value of Money
the concept that the money has a higher value today than at any future date, because it can grow with time. It is Also called as present discounted value.
Tip
This word may mean a gratuity means money that you give to a waiter or hairdresser, or the pointed end of something. It may also refer to a useful piece of advice or information. If a room is a tip, it means that it is a mess.
Title Loan
It is a type of secured loan in which the borrower puts up a possession, such as a vehicle, as collateral. If the borrower defaults, the lender can then seize that item.
Total Return
This is the actual rate of return of an investment,which is calculated by including interest, dividends, capital gains, and distributions realized over a specific period. It is the total return on an investment or portfolio of investments that takes into account both the capital appreciation on the portfolio as well as the income received on it.
Toxic Assets
The financial assets whose value has declined significantly, will probably continue falling, and for which there is no longer a functioning market.
Toxic Debts
These are the debts which are not likely to be paid back to borrowers. Essentially the toxic debts are a class of assets that were once of value or were believed to hold value but are now worthless or have almost completely declined in value.
Track record
It is a reference to the past performance that the people often use in order to imply that the future performance will be similar
A management consultant, for example, may then assure clients that they are right for the job because of their track record of success in their industry.
Trade
It is the activity of purchasing, selling or exchanging goods or services within a country or between nations. Trade may refer to the volume of activity that happens within a business enterprise, industry, etc. it may also be a particular skilled job. It means also to buy-sell shares, bonds and other financial instruments on a stock exchange.
Trade Area
It is also known as a market area, it is the area in which a company does business; its commercial territory. The trade area of a shopping center, wholesaler, or department store is the geographical area where the sales are made. The Trade areas tend to be smaller for cheap, everyday goods, such as the groceries and gasoline, and larger for more expensive items, such as furniture. In simple words, we are willing in order to travel further so as to buy an expensive dining room furniture than to fill our cars with fuel.
Trade Credit
It is an arrangement whereby the customers can pay for goods or services received at a later date, generally 30, 60 or 90 days later. For many businesses, it is a useful way of improving cash flow.
Trade Deficit
It is also known as a trade gap, it is defined as being a negative commercial balance. It occurs when a nation imports more products than it exports.
Trade Show
it is also known as a Trade Fair or Exposition, it is an exhibition in which many businesses promote their goods or services. Most of them focus on a particular market sector or industry.
Trade Surplus
It is a measurement of a country’s balance of trade.mostly it is considered to be positive. Specifically it refers to a positive balance of trades when a country exports more than it imports.
Trade Union
It is a group of workers who collectively tries to improve or maintain their wages and workplace conditions.
Trademark
It is spelled as such in the USA, the ‘trade-mark’ in Canada, and ‘trade mark’ in the rest of the English-speaking world,it is a symbol or sign which is used to distinguish a company’s goods or services from those of other businesses. The trademark is legally registered or established by long-term use as representing a product or company.
Trader
he is somebody who buys and sells the goods or services. A person who buys and then sells cattle is a cattle trader.
In finance, a trader is somebody who purchases and then sells the financial instruments. There are other types, such as market traders and sole traders.
Training
It is the action of teaching a person a specific skill. The term also refers to teaching a specific type of behavior. People or animals can be trained. In companies, the training programs aim to improve a worker’s capacity, performance, productivity, or capability.
Transaction Costs
These are the costs which are incurred by the purchasers and sellers during trading, apart from the price of the good that is changing hands.
The Transaction costs may refer to an underwriter’s fee, lawyer’s fee, broker’s fee, or other financial intermediary charges. When deciding whether your company should make something or buy it,the transaction costs is a critical factor.
Transition Economy
A country which is changing from being a communist state to having a free-market economy. The nation’s economy is then moving from one where the state has planned everything to a capitalist or mixed-economy system where the market forces determine what happens.
The Examples include Russia, China, Vietnam, Ukraine, Poland, Laos, Cambodia, Hungary, Romania, and the Czech Republic.
Transparency
in business, this term refers to the extent to which investors, shareholders and other stakeholders have ready access to a firm’s or market’s data, such as the price levels, market depth, financial reports, and other planned actions. In government, transparency refers to how much data a nation’s government shares with its people.
Treasury Bills
these are short-term maturity promissory notes that the national governments issue to raise funds or regulate the money supply through open-market operations. Time to maturity may range from a few days to fifty-two weeks. They are opposite to the treasury notes and treasury bonds, whose time to maturity range from 1 to 10 years and more than ten years respectively.
Trend
It is a general direction into which something is veering toward, developing, or changing. It may also mean a fad or craze.
In financial markets, a bullish trend exists when the prices are rising, while a bearish trend is when they are falling.
Trials
These are the tests of quality, suitability, or performance of people or things. A trial in a court of law is where the formal examination of evidence occurs before a judge, and often a jury. Horse trials are equestrian events in which horses and their riders take part in several different contests. When we test new drugs and treatments on human volunteers, we call them clinical trials.
Trough
In economics and statistics,trough is defined as the point in the business cycle between the final part of a recession and the beginning of accelerating the GDP growth.
In a graph, the trough can be seen at the bottom of the ‘V’ shape, where the falling and the rising lines meet.
Trust
Trust can be defined as the firm belief in the truth, reliability, or ability of something or somebody, is one of the most important ingredients for a successful business.
A trust may refer to an arrangement in which one person the trustor can give the control of his or her estate/property to a trustee for the benefit of a third party the beneficiary.
Trust Fund
‘Trust‘ is a fund where the assets are being transferred to be managed by a trustee. The trust objective is to benefit either a person, organization, or charity. There are three people in a trust fund
1. The grantor.
2. The beneficiary.
3. The trustee.
Exposition, it is an exhibition in which many businesses promote their goods or services. Most of them focus on a particular market sector or industry.
Trade Surplus
It is a measurement of a country’s balance of trade.mostly it is considered to be positive. Specifically it refers to a positive balance of trades when a country exports more than it imports.
Trade Union
It is a group of workers who collectively tries to improve or maintain their wages and workplace conditions.
Trademark
It is spelled as such in the USA, the ‘trade-mark’ in Canada, and ‘trade mark’ in the rest of the English-speaking world,it is a symbol or sign which is used to distinguish a company’s goods or services from those of other businesses. The trademark is legally registered or established by long-term use as representing a product or company.
Trader
he is somebody who buys and sells the goods or services. A person who buys and then sells cattle is a cattle trader.
In finance, a trader is somebody who purchases and then sells the financial instruments. There are other types, such as market traders and sole traders.
Training
It is the action of teaching a person a specific skill. The term also refers to teaching a specific type of behavior. People or animals can be trained. In companies, the training programs aim to improve a worker’s capacity, performance, productivity, or capability.
Transaction Costs
These are the costs which are incurred by the purchasers and sellers during trading, apart from the price of the good that is changing hands.
The Transaction costs may refer to an underwriter’s fee, lawyer’s fee, broker’s fee, or other financial intermediary charges. When deciding whether your company should make something or buy it,the transaction costs is a critical factor.
Transition Economy
A country which is changing from being a communist state to having a free-market economy. The nation’s economy is then moving from one where the state has planned everything to a capitalist or mixed-economy system where the market forces determine what happens.
The Examples include Russia, China, Vietnam, Ukraine, Poland, Laos, Cambodia, Hungary, Romania, and the Czech Republic.
Transparency
in business, this term refers to the extent to which investors, shareholders and other stakeholders have ready access to a firm’s or market’s data, such as the price levels, market depth, financial reports, and other planned actions. In government, transparency refers to how much data a nation’s government shares with its people.
Treasury Bills
these are short-term maturity promissory notes that the national governments issue to raise funds or regulate the money supply through open-market operations. Time to maturity may range from a few days to fifty-two weeks. They are opposite to the treasury notes and treasury bonds, whose time to maturity range from 1 to 10 years and more than ten years respectively.
Trend
It is a general direction into which something is veering toward, developing, or changing. It may also mean a fad or craze.
In financial markets, a bullish trend exists when the prices are rising, while a bearish trend is when they are falling.
Trials
These are the tests of quality, suitability, or performance of people or things. A trial in a court of law is where the formal examination of evidence occurs before a judge, and often a jury. Horse trials are equestrian events in which horses and their riders take part in several different contests. When we test new drugs and treatments on human volunteers, we call them clinical trials.
Trough
In economics and statistics,trough is defined as the point in the business cycle between the final part of a recession and the beginning of accelerating the GDP growth.
In a graph, the trough can be seen at the bottom of the ‘V’ shape, where the falling and the rising lines meet.
Trust
Trust can be defined as the firm belief in the truth, reliability, or ability of something or somebody, is one of the most important ingredients for a successful business.
A trust may refer to an arrangement in which one person the trustor can give the control of his or her estate/property to a trustee for the benefit of a third party the beneficiary.
Trust Fund
‘Trust‘ is a fund where the assets are being transferred to be managed by a trustee. The trust objective is to benefit either a person, organization, or charity. There are three people in a trust fund
1. The grantor.
2. The beneficiary.
3. The trustee.
U.S. Treasury Securities
these are the Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money in order to meet the government expenditures not covered by tax revenues.
There are three types of U.S. Treasury securities that are marketable Treasury securities-bills, notes and bonds.
UA
The country code for UKRAINE.; ISO 3166
UAH
The currency code for the Ukraine Hryvnia.; ISO 4217
UG
The two-character country code for UGANDA; ISO 3166
UGX
The currency code for the Uganda Shilling.
Ultra Vires Activities
This is the Corporate actions and operations which are not sanctioned by corporate charter, sometimes leading to the shareholder lawsuits.
Ultra-short-term Bond Fund
A mutual fund which invests in bonds with very short maturity periods,that is usually one year or less.
Ultradot
it Applies to derivative products.the Firm proprietary software which stores, and sends the baskets of stock through SEAQ to either the NYSE or the curb for program trading.
UM
The country code for the united states minor outlying islands.
Umbrella Personal Liability Policy
it is a liability insurance policy which provides the protection against the damages which are not covered by standard liability policies, such as a large jury awards in lawsuits.
Umbrella Policy
it is an Insurance for the exports of an exporter whose issuer handles all of the administrative requirements.
Unable
Unless they are designated "GTC" that is Good Until Canceled or "Open," all the orders which are not filled by the end of a trading day are deemed as unable and void.
Unamortized Bond Discount
the Par value of a bond which is less than the proceeds received from the sale of the bond, less whatever portion has been amortized.
Unamortized Premiums On Investments
This is the unexpensed portion of the difference between the price paid for a security and its par value.
Unbiased Expectations Hypothesis
The Theory that the forward exchange rates are unbiased predictors of future spot rates.
Unbiased Predictor
A theory that the spot prices at some future date will be equal to the today's forward rates.
Unbundling
this is the Separation of a multinational firm's transfers of funds into discrete flows for specific purposes.
Uncollected Funds
The amount of bank deposits which are in the form of checks that have not yet been paid by the banks on which the checks are drawn.
Uncollectible Account
It is an account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay the amount which is required by him.
Unconfirmed Letter Of Credit
A letter of credit which has not been guaranteed or confirmed by any bank which is other than the bank that had opened it. The advising bank informs the beneficiary of the letter of the credit terms and conditions.
Uberrimae Fidei
The Latin word for the ‘utmost good faith.’ The term refers to the insurance contracts. The insured must disclose everything which is pertinent to his or her insurance policy. If anything is held back, then the policy is voidable, i.e., may become invalid.
Ubiquitous
It refers to the something which seems to be everywhere or seems to have the ability to be everywhere at the same time, i.e., omnipresent. This term refers to the interconnection of all electronic and electrical devices. That does not just mean computers, tablets, and smartphones, but also refrigerators, microwave ovens, and other devices we have at home, in the office, and outside.
Ultimate Consumer
He is the person or entity who consumes or uses a product or service. They do not buy it and then sell it on or give it somebody. The person who buys something, the customer, will not always be the same person as is the ultimate consumer.
example A mother buys the baby food, but the ultimate consumer of it is her baby.
Ultra-Short Bond Fund
It is a type of bond fund which then solely invests in fixed-income instruments that has very short-term maturities of not longer than a year.
Umbrella Policy
It is an extra liability policy. With an umbrella policy, the insured continues receiving payment for the liability after the primary policy has reached its limit. This type of policy will protects people who believe they are at high risk of claims and lawsuits.
Uncovered Call
A short call option position in which the writer does not own the shares of underlying stock which are represented by the option contracts.
Uncovered calls are considered to be much riskier for the writer than a covered call, where the writer of the uncovered call owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the asset at the current market price. Also called a "naked" asset.
Uncovered Call Writing
A short call option position in which the writer does not own an equivalent position in the underlying security which is then represented by his option contracts.
Uncovered Option
Naked Option
Uncovered Options
Naked options
Uncovered Put
A short put option position is the one in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, the cash or cash equivalents equal to the exercise value of the put. The writer has pledged to buy the asset at a certain price if the buyer of the option has choosen to exercise it. The Uncovered put options limit the writer's risk to the value of the stock that are adjusted for premium received. it is Also called naked puts.
Uncovered Put Writing
A short put option position is the one in which the writer does not have a corresponding short position in the underlying security or it has not deposited, in a cash account,
Under The Belt
under the belt
it is Long position in a stock.
Underbanked
It is an originating investment banker when he cannot find enough firms to underwrite a new issue.
Underbooked
it Describes the limited interest by the prospective buyers in a new issue of a security during the preoffering registration period.
Undercapitalized
it is a business which has insufficient capital so as to carry out its normal functions.
Underfunded Pension Plan
A pension plan which has a negative surplus that is, liabilities exceed assets.
Underground Economy
these are Money-making activities which the people don't report to the government, these includes both illegal and legal activities.
Underinvestment Problem
The mirror image of the asset substitution problem, in that the stockholders refuses to invest in low-risk assets in order to avoid shifting of wealth from themselves to the debtholders.
Underlying
What supports the security or instrument that the parties agree in order to exchange in a derivative contract.
Underlying Asset
The security or property or loan agreement which an option gives the option holder the right to buy or to sell.
Underlying Commodity
The cash commodity which is underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised.
Underlying Debt
the Municipal bonds which are issued by the government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility.
Underlying Futures Contract
A futures contract which supports an option on that future, that is executed if the option is exercised .
Underlying Mortgage
it Refers to the first mortgage when there is a wraparound mortgage.
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.
Uneconomic Growth
uneconomic growth is the one which leads to more harm than good. Perhaps the harm is environmental, economic, or social. If a country’s economy grows too rapidly, for example, the consequence could be a severe downturn that results in a long-lasting recession or depression.the Excessive pollution is often the result of rapid GDP growth in many emerging economies.
Unemployment
it occurs when people don’t have jobs and are seeking work. The unemployment rate is calculated by dividing the total number of unemployed by the number of people in the labor force. Unemployment can also mean unemployment benefit.
Unemployment Insurance
The money and benefits the eligible people receive when they become unemployed. We also call it benefits, UI, or unemployment compensation. To be eligible, you must have become unemployed through no fault of your own.
Unemployment Trap
When the people are disuaded from taking a new job because of their loss of unemployment benefits would leave them worse off. In other words, a situation is the one in which your current standard of living, as an unemployed person on welfare, is better than it would be if you took a low-paying job. Unskilled workers and young adults are more likely to find themselves stuck in the unemployment trap.
Underlying Asset
It is a security such as a stock on which the derivative is based determining its price.
Underground Economy
It is the part of the economy which the authorities know nothing about. People who work in the underground economy, also called theblack economy, theinformal sector, and theshadow economy, do not declare their income they pay no tax on what they earn; this is illegal.
Underwriting
It is the process of determining whether a customer is eligible to receive capital from corporations and governments that issue securities.
Unicorn
a startup which is worth more than $1 billion. The number of unicorns appearing each year is growing rapidly. We also use the terms unicorn company or unicorn startup.
Union
1. A workers’ trade union is an organization that represents workers and tries to get their employers to pay and treat them well.
2. A marriage is a union of two people.
3. A union can be a society or association of like-minded people. 4. In 1707, the Sottish and English parliaments united. We call this ‘The Union.’
Unique User
It is also called a Unique Visitor, it is a website visitor who is only counted once during a period of one day, week, or month. It tells us how many different individuals visited a website during a specific period. It is opposite of the term ‘visit,’ which simply tells us how many times a website is visited.
Universal Bank
a bank that offers retail, wholesale, and investment banking under one roof. The world’s largest banks are universal banks.
Unlimited Wants
this term refers to the humans’ insatiable appetite for things. We are never satisfied and we always want more. However, the resources which are available to satisfy those wants are limited. The two halves of scarcity are limited resources and unlimited wants.
Unprofitable
It is not making a profit or yielding the financial gain. It also means, when referring to just an activity, not useful or beneficial. It is the opposite of profitable. There is No commercial enterprise which aims to be unprofitable; they all want to be profitable.
Unsecured Loan
It is a loan with no security that is collateral or the guarantor tied to it. The lender risks losing all its money if the borrower defaults.it is Also known as unsecured debt.
Unskilled Labor
the members of the workforce who have no special training or skills. The term also refers to jobs that requires no special training or skills. Unskilled labor is opposite to that of the skilled labor or highly-skilled professionals.
Unsustainable
it refers to anything which we cannot keep going in its current state or at its current rate.
In other words, it is not ‘sustainable.’ For example, oil, butane gas, and coal are unsustainable energy s. They are unsustainable because they will run out, that is., they will not last forever. We cannot continue using them at current rates forever. They are opposite with the sustainable energy s, such as sun, wind and hydro (water) power.
Unwholesome Demand
These are the demand for the things which are bad for us or society. The demand is there despite the warnings. Groups warn people, for example, that smoking is bad. However, there is still demand for cigarettes, i.e., there is unwholesome demand for cigarettes.
Upcycling
It is a type of recycling which produces higher-value products from items that would otherwise go to waste. To upcycle is to give new life to the discarded objects. An example would be the creation of plant pots out of used tin cans.
Upper Class
the richest people in the country. There are three classes
1. Upper class.
2. Middle class.
3. Working class.
Members of the upper class represents a tiny proportion of a country’s population. However, they own a disproportionate percentage of its wealth.
Urbanization
It refers either to the migration of people from the rural to urban areas or the growth of city populations. The current urbanization, which is occurring in most countries across the world, started during the industrial revolution.
Usability
It is defined as the ease of use and learn ability of something, such as a device or tool. In software engineering,the usability refers to the degree to which specific consumers can use a program successfully and easily.
User Experience
It is an individual’s responses and perceptions resulting from the use or anticipated use of something, that is , a product, service, or system. Our user experience is our overall experience of using something, such as a website, smartphone application, or computer software.
User Friendly
It is a term which describes a device, program, or system that is easy to learn how to use. It is easy and perhaps also enjoyable to use. Some people say that the term has been overused and is a cliché today.
U-Shaped Recovery
an economic period that begins with economic decline, that is, a recession. Then there is a trough that lasts a long time. Finally, there is a gradual recovery. We also call it a U-shaped recession. U-shaped recoveries last longer than others, such as V-shaped ones.
Usufruct
It is a right to use, enjoy, and make money from a property that does not belong to you. The person with a usufruct can derive an income from the property, but they cannot damage it.
Usury
the act of loaning money at the exorbitant interest rates. The term may be used as a moral condemnation of the act, or to inform about an illegally high interest rate.
Originally, hundreds of years ago in the English language, ‘usury’ just meant lending money and charging interest, regardless of whether it was exorbitant or reasonable. Some countries have legislation to protect borrowers from abusive lenders.
Utilitarianism
a doctrine which suggests that the right action is the one that results in the most happiness for the greatest number of people. Conversely, a wrong action that brings more unhappiness than happiness.
Utility
in economics the word refers to how much pleasure or satisfaction we derive when we consume a product or service, or experience an event.
In business, a utility that a company generates, transmits and/or distributes are the utilities such as electricity, gas or water. Utility may also mean a computer program that improves the efficiency of an IT system the utility of a product refers to how useful it is if an invention is not useful, it is then virtually impossible to get it patented.
Utilization
the action of making use of something, that is , using it effectively and in a practical way. It represents the percentage of the total hours that are available that a machine, device, or person was productive, that is working. It must also represents the percentage of all machines or people that is available that are currently working.
Value Added
there are many meanings.
1. In economics, it is the one industry’s contribution to the nation’s gross domestic product.
2. In accounting, it can mean the same as gross income.
3. In marketing, it is the extras which are added on to a basic product in order to make it more attractive for consumers, so that they buy it
4. Value added agriculture is defined as the value which can be added to a basic agricultural product by changing or transforming it from its original into a more valuable state, such as from wheat-to-flow.
V Formation it can be stated as A technical chart pattern that follows a letter V form, further indicating that the security price has bottomed out, and is now in a bullish trend.
VA
The two-character ISO 3166 country code for HOLY SEE (VATICAN CITY STATE).
VA Mortgage Loan
A form of mortgage insurance. Housing loans to veterans by banks, savings and loans, or other lenders are guaranteed by the U.S. Department of Veterans Affairs (formerly the Veterans Administration).
This will enables a veteran to buy a principal residence with little or no down payment.
Validated Export License
the Document which are issued by the U.S. government (BXA), further authorizing the export of specific commodities to a specified foreign country within a specified time period.
Valuation
It is the Determination of the value of a company's stock which are mostly based on earnings and the market value of assets.
Valuation Clause
it decides a fixed sum for insured property in the event of loss when included in a marine cargo insurance policy.
Valuation Opportunity Cost
This is The potential increase in firm value which is also associated with the investments that are for gone due to capital rationing.
Valuation Reserve
An allowance in order to provide for the changes in the value of a company's assets, such as depreciation.
Value Added
Value added is the risk adjusted return which is generated by an investment strategy the return of the investment strategy minus the return of the benchmark.
Value Additivity Principal
When the value of a whole group of assets is exactly equals to the sum of the values of the individual assets that make up the group of assets. Or, the principle which states that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.
Value Broker
A discount broker whose rates are a percentage of the dollar value of each transaction.
Value Date
In the market for Eurodollar deposits and foreign exchange, the delivery date of funds traded. For the spot transactions, it is normally on spot transactions two days after a transaction has been agreed upon. In the case of a forward foreign exchange trade, it is the future date.
Value Dating
When value or credit is given for funds which are transferred between the banks.
Value Investing
In the language of asset management, mutual funds, and hedge funds, a style of investment which focuses on securities with low price to earnings ratios or low price to book ratios.
Some of these securities are deemed cheap and are viewed by manager as to having a lot of profit potential.
Value Line Investment Survey
A proprietary service which the ranks stocks for timeliness and safety.
Value Manager
A manager who seeks to buy stocks which are at a discount to their "fair value" and then would sell them at or in excess of that value. Often a value stock is the one which is with a low price-to-book value ratio.it is the Opposite of to growth stock.
Value Maximization
This is the Increase in owners' wealth which is achieved by maximizing of the value of a firm's common stock.
Value Stock Fund
A mutual fund which emphasizes stocks of companies whose growth opportunities are generally regarded as subpar by the market. A value stock company that pays regular dividend income to shareholders and sells at relatively low prices in relation to its earnings or book value.
Value Stocks
the Stocks with low price/book ratios or price/earnings ratios. Historically, the value stocks which have enjoyed higher average returns than growth stocks that is the stocks with high price/book or P/E ratios in a variety of countries.
Value Added Tax (VAT)
VAT is an indirect consumption tax which is charged on goods and services. It is levied at each stage of a product or service’s production or distribution.
Value at Risk (VaR)
It is a widely used risk measure of the risk of loss on a specific portfolio of financial assets over a specific period. It did not emerge as a distinct concept till after the 1987 stock market crash.
Valuation
It is an estimate of how much something, such as a business, antique, property, financial asset, or work of art is worth. Banks will not approve a mortgage unless a valuation of the property is carried out.
Examples of the financial assets include the commercial enterprises, patents, trademark, stocks and options.
Value Chain
It refers to all the activities of a company which is involved in from buying raw materials to delivering the finished product or service to customers. The Value chain also includes after sales service and/or after sales repairs.
All the activities are interlinked, and if analyzed carefully and tweaked properly, can give the company and its products an advantage over its competitors in the marketplace.
Value Investing
It is a system of making money by purchasing the securities for less than they are worth. The Value investing emerged after the publication in 1934 of ‘Security Analysis’, written by Benjamin Graham and David Dodd.
Variable Costs
This relates to the costs which could go up and down according to levels of production. When the production is increased the variable costs rise, when production declines variable costs go down unlike fixed costs, which rarely change from month-to-month.
Examples of variable costs include labor and materials used for production, while rent, insurance premiums and utilities are examples of fixed costs.
Variable-Rate Mortgage
a home loan whose interest rate can change, because of a result of fluctuations in the base rate. In the United States, the term adjustable-rate mortgage (ARM) is more common.
Veblen Goods
The luxury items whose prices do not follow the normal microeconomic laws of supply and demand. When the price of a Veblen good rises,the demand for it increases. People buy Veblen goods either because they think their quality is superior, or they want to show off they are status symbols.
Examples of Veblen goods are luxury yachts, designer handbags, diamonds, expensive Swiss watches, certain vintage wines, and ultra-expensive cars.
Vehicle
It is any device (machine) which transports humans, animals, and goods. Examples include bicycles, motorbikes, cars, buses, trucks, airplanes, watercraft, and spacecraft. Some dictionaries limit the to devices that travel only on land.
Velocity of Circulation
It is also known as the velocity of money,it refers to how much money is in circulation within an economy over a given period, i.e. how fast it is moving.
Velocity of circulation is the driver of prices, rather than the amount of money in an economy.the Economists uses this measure in order to determine how healthy an economy is, and whether inflation is expected to rise.
Venture Capital (VC)
the financial capital which is provided by the investors to small businesses that are believed to have long-term potential. It is a type of private equity.
Venture capitalists typically see thousands of proposals and just back a couple of dozen.
Venture Capitalist
He is a person who invests in a new business venture, that is, a startup or a young company. The term may also refer to a company with venture capital ready to invest.
Vertical Equity
the principle which states the better-off people should contribute more in taxes to the government than others, and that middle class individuals should pay more than the working class people, etc. Proponents say this system is fairer and reduces inequality in societies. Those against it say it discriminates against hard workers and rewards people who work less. In most countries there is a vertical equity income tax system.
Vertical Integration
It refers to a company which merges with another one in the same business but in a different stage of the supply chain. It can be achieved by either merging, acquiring other companies, or setting the whole thing up internally.
There are three types of vertical integration backward, forward or balanced integration.
For example, if Company A, a fashion retail chain, mergers with Company B, a manufacturer of clothes, that is vertical integration.
Vertical Market
this is a niche market, with buyers and sellers that make similar products and have virtually identical needs. Often, the term refers to a subcategory of an industry or sector.
For example, a maker of artificial limbs operates in a subcategory of medical devices.
Viability Study
It is an in-depth study of an idea, proposal or project in order to determine that how ‘viable’ or profitable it could be. The study also tries to determine whether it is possible in order to convert the proposal or idea into a going concern which is successful business.
Viable
It is capable of working or existing successfully.
In biology, a seed which can germinate is a viable seed. A viable fetus or newborn is the one that can survive outside the uterus. A viable business is the one which is expected to be profitable for a long time.
Virtual Reality
VR is computer technology which makes people feel like they are in another place, that is another environment. VR uses software to produce images, sounds, and other sensations to create a new, simulated environment. Users feel as if they are inside this simulation.
Visa
1. An endorsement by a foreign country allowing you to enter or leave. Visas also exist as work permits, study permits, and other purposes.
2. A credit, prepaid, or debit card with the Visa symbol.
Visible Trade
This is the importing and exporting of goods, tangible products, merchandise, things you can see and touch such as smartphones, automobiles, ships, coal, coffee, oil, etc.
Visible trade contrasts with invisible trade, which refers to services, such as tourism, royalties and licence fees, software, consultancy, advertising, etc.
VOIP
It stands for Voice over Internet Protocol, it is a new technology which allows us to talk to each other and send the files via the Internet. It is much cheaper than using a traditional landline. Skype, for example, uses VoIP
Volatility
In business/finance the term can also refer to fluctuations in currencies, markets, property prices, etc.
It is a measurement of the fluctuations of the price of a security. It is essentially an analysis of the changes in the value of a security. It is one key measures in quantifying risk.
Volcker Rule
It was proposed by former United States Federal Reserve Chairman Paul Volcker following the 2007-2008 financial crisis.It is a federal regulation which prohibits banks from engaging in certain types of speculative investment activities. He wanted to stop commercial banks gambling with the depositors’ money in the markets.
Voluntary Unemployment
Those who are in the unemployment trap are the ones who choose to remain unemployed because they think they are financially better off on unemployment benefits than taking a low-paying job,they also form a part of the voluntary unemployment total.
This is the part of the unemployed population which consists of people who opted not to work, although there are jobs available. Voluntary unemployment includes the frictional unemployment people who are between jobs, they are searching for a job, going to interviews, etc.
Voucher
the term has various meanings :
1. A small printed piece of paper or plastic that it entitles the holder to either a discount a free product or service.
2. a scholarship to a private school.
3. In accounting, it is an internal document which is used in the accounts payable department.
4. A credential a piece of evidence, proof, or authorization in writing. Although there is technically a difference in meaning between voucher and coupon, today the two terms are commonly used interchangeably.
Voyage Policy
It is an insurance policy which covers loss or damage to cargo that is being transported by ship by sea. We can also refer to it as marine cargo insurance The policy covers the cargo during the sea voyage, but not the vessel (ship).
VPN (Virtual Private Network)
It is a service which provides the users with safe and private access to the World Wide Web, that is, they can go online anonymously and safely. Nobody can find out who they are because the VPN system does not allow it.
V-Shaped Recovery
We also call it a V-shaped recession.It is a period of sharp but brief economic decline and then a short trough. This is followed by a rapid recovery. The V-shaped recovery is the most common pattern that the advanced economies follow.
Vulture Funds Vulture funds is a derogatory term. The mutual funds that invests in high risk financial instruments are then issued by distressed countries or businesses. Distressed, in this context, means in or near bankruptcy. Vulture Investor He is the person or the organization who specializes in purchasing some assets and financial instruments which belongs to the companies or people in trouble.
W-type Bottomit is a double bottom pattern in a price history which looks like the letter W.WACC
it stands for weighted average cost of capital.
Wage Assignment
it is A loan agreement provision which in case of default,it allows the lender to deduct payments from an employee's wages.
Wage-push Inflation
the Inflation which is caused by rise steeply wages.
Wages
it is the Compensation which is received by employees for services performed. The wages are computed by multiplying an hourly pay rate by the number of hours worked.
Wage tax
It is Levied at source as a withholding on wages and the taxes thus withheld are usually commencement against final income tax liability .
Waiting Period
the Time during which the Securities and Exchange Commission (SEC) studies a firm's registration statement, During this time the firm would distribute a preliminary prospectus.
Waiver
This is the resignation of a right or privilege. In life insurance, there is a provision that sets certain conditions,for eg. disablement, that allows coverage to remain in force without payment of premiums
Waiver Of Premium
it is a provision in an insurance policy which allows payment of the insurance premiums done , permanently or temporarily stopped in the event when the policyholder becomes incapacitated.
Walk Away
this is to take and maintain a position in a stock after going to the floor I order to consummate a trade opposite of trade me out, and buying them back.
Wall Street
it is the Generic term for the securities industry firms that buy, sell, and underwrite securities.
Wall Street Analyst
Sell-side analyst.
Wallflower
the Stock which has fallen out of favor with the investors,and tends to have a low P/E .
Wallpaper
it is a security with no monetary value.
Wanted For Cash
it is A statement which is displayed on market tickers and indicates a bidder to pay cash for same-day settlement of a block of a particular security.
War Babies
it is the term for the stocks and bonds of corporations in the defense industry.
War hazard exclusion
It Get rid of insurance coverage for death which is a direct result of war or other hostile action
War Chest
the Cash which is kept aside for a takeover or for defense against a takeover bid
War Risk Insurance
this is an insurance coverage against loss or damage due to the acts of war .
Warehouse Receipt
it is an evidence which a firm would own goods which are further stored in a warehouse.
Warehousing
The period from the time of the closing of a loan to the succeeding marketing to the capital market investors.
Warrant
It is An options contract that is often sold with another security. For eg,these are the corporate bonds which may be sold with warrants so as to order to buy common stock of that corporation.these are generally detachable.
Warrant Or Warehouse Receipt For Metals
it is a Cd, which gives title to physical metal in an exchanged-approved warehouse.
Warranty
it is 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 would repair the problem at no cost to the buyer.
Warsaw Stock Exchange
The major securities market of Poland
Washit means Gains equal losses.
Wash sales
it involves a person, either directly or indirectly, being both the buyer and seller of securities in the same transaction, so that there is no actual change in ownership of the securities. The manipulator will attempt frequent trades hoping to attract other investors who note the increased turn over in the security. it aims to gain financially by creating a small price differential between the buy and sell rates of the security in question.
Wash Trading
it is Entering into, or claiming to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader's market position The Commodity Exchange Act prohibits wash trading Also called Round Trip Trading.
Wasting Asset
it is An asset which has a limited life and will further decreases in value over time.it applies to the consumed assets, such as oil or gas, and is termed as depletion.
Watch List
it isA list of securities which is selected for the special surveillance by a brokerage, exchange, or regulatory organization,the firms which are on the list are takeover targets,the companies that are planning to issue new securities, or stocks which are showing unusual activity.
Watered Stock
it is A stock which represents ownership in a corporation that is worth less than the actual invested capital, and which results in the problems of low liquidity, inadequate return on investment, and a low market value
Waybill
it is A document which is similar to a bill of lading that is issued by a carrier which describes the goods to be transported and that details the shipping particulars.these are issued by both air carriers and ship lines and merely indicate that the stated goods was received by the carrier for transport, they do not convey title
WDR
90 Day Bank Bill Index it Measures the way that an Australian bank bill rates change with time. It is the industry that is accepted proxy for bank bill rates. All of the income is reinvested.
WDR
Composite Bond Index Fixed interest market index. It measures the change in market price of a pool of fixed interest securities (50% Government bonds, 38% semi-Government securities, 10% corporate bonds and 2% mortgage backed securities.) All income is reinvested.
WDR
Inflation Linked Bond Index An index representing the change in prices of the major securities issued in the inflation indexed bond market. All income is reinvested.
Weak Dollar
A depreciated dollar with respect to other currencies, meaning that more dollars are needed to buy a unit of foreign currency opposite of strong dollar
Weak Hands
this is used in connection with delivery of commodities on futures contracts, the term usually means that the party probably does not intend to retain ownership of the commodity,it is when used in connection with futures positions, the term means the positions are held by small speculators.
Weak Market
he is A market with few buyers and many sellers and a declining trend in prices.
Weak-form Efficiency
A pricing theory that the price of a security reflects the past price and trading history of the security.this Theory implies that the security prices follow a random walk.it is Related to Semistrong-form efficiency, strong-form efficiency.
Weather Derivative
A derivative whose payoff is based on a particular weather event.
WEBS
it stands for World Equity Benchmark Series.
Wedge
it is a chart pattern which is composed of two converging lines which is connecting peaks and troughs .In the case of falling wedges, the pattern indicates temporary interruptions of upward price rallies In the case of rising wedges, indicates interruptions of a falling price trend
Weekend Effect
it is the common frequent negative average return from Friday to Monday in the stock market.
Weighted Average Portfolio Yield
it is the yield of all the bonds in a portfolio.
Weighted Average Remaining Maturity
it is the average remaining term of the mortgages that underlies a MBS.
Weightingthe Percentage or proportion of the portfolio that are invested in each asset class.
Well-diversified Portfolio
it is a portfolio which includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio approaches to the systematic risk of the market, the unsystematic risk of each security that has been expanded out of the portfolio.
Will
It is a legal document comprise the instructions on how a person wishes their estate that is to be distributed after they die
When Issued (WI)
it Refers to a transaction which is made conditionally, because a security, although authorized, had not yet been issued. theTreasury securities, the new issues of stocks and bonds, stocks that have split, and in-merger situations after the time the proxy has become effective but before completion are all traded on a when-issued basis.
Whipsawed
it is the Buying stocks before prices fall and selling stocks just before prices rise in a volatile market, that are the result of misleading signals.
Whisper Number Or Forecast
they are unofficial earnings estimate of a company that are given to clients by a security analyst if there is more optimism or pessimism about earnings than shown in the published number.
Whisper Stock
it is a stock which is rumored to be the target of a takeover bid, and are drawing speculators who are in a hope to make a profit after the takeover is completed.
Whistle Blower
he is a person who has knowledge of all the fraudulent activities which are inside a firm or government agency, who is then protected from the employer's retribution by federal law.
Whole−life assurance
This is a cover which lasts the lifetime of the person whose life is assured.
Whisper nos.
When the company is expected to beat earnings, "whisper numbers" these are the earnings that analysts think, but they don't dare write, what a company will make.
White Knight
He is A friendly bidder, who is willing to offer more for a target share than an existing hostile bidder in order to rescue that a company that is about to fall in the hands of an uninvited suitor. They are persuaded by the company that is subject to a hostile bid to come to its rescue.
Whole-of-life policy
Life assurance that pays out an agreed sum on the death of the person who took out the insurance, as long as they continue to pay their premiums
Wholesale fundthe AMP Capital's range of wholesale trusts are the pre-tax pooled investment vehicles that allows individuals to invest collectively, benefiting from the expertise of a professional investment manager and are in better diversification than might be available to the them as an individual investor.
White Noise
it is the audio equivalent of Brownian motion Sounds which are unrelated and sound like a hiss whereas The video of white noise is termed as "snow" in television .
White Sheets
these are the Lists of prices which are published by the National Quotation Bureau for the Market Makers.
White Squire
he is a White knight who purchases less than a majority interest.
White's Rating
it is a rating of municipal securities, which uses market factors rather than the credit considerations to find appropriate yields.
Winner's Curse
it is the Problem which is faced by uninformed bidders.
Winnipeg Commodity Exchange
the Canada's only agricultural futures and options exchange, which are located in Manitoba.
Winter Wheat
this is the Wheat which is planted in the fall, which lies dormant during the winter, and it is harvested beginning about the month of the May of the next year.
Window Dressing
He is A manoeuvre that is often engaged in by companies, banks, mutual funds etc., at the end of the accounting period so as to impress the stock holders who then will be receiving the report showing that funds are better managed and invested than what might have been drawn up.
Winding up
Winding up or liquidation of a company is done by paying the company's creditors, and then distributing money left (if any) among the members.
Wire House
it is a firm which it is operating on a private wire to its own branch offices or to other firms, commission houses, or brokerage houses.
Wire Room
it is a department within a brokerage firm which receives customers' orders and transmits the orders to the exchange floor or the firm's department of trading.
Wire Transfer
it is the Electronic transfer of funds which involves some large dollar payments.
With Average (WA)
it is the Marine cargo insurance coverage which provides for partial loss or damage to goods, either with or without a deductible.
With Dividend
the Purchase of shares that entitle the buyer to the forthcoming dividend.
With Ice
it stands for When issued.
With Particular Average (WPA) With Average.
With Rights
these are the Shares sold and accompanied by entitlement the buyer to buy additional shares in the company's rights issue.
Withdrawal
It is a withdrawal of the money that you take from your financial account, such as an IRA. One may incur fees or penalties when one makes a withdrawal, depending on the type of product and whether his account is qualified or non-qualified.
Withdrawal Plan
this is the agreement that a mutual fund will disburse automatic periodic redemptions to the investor.
Withholding
it is Used in the securities, the illegal practice of a public offering participant allows keeping some shares in a private account or with a family member, employee, or dealer in order to make profit from the higher market price of a hot issue.
Withholding ("pay-as-you-earn" Taxation) This money is deposited for the government.the employers withhold money for federal income taxes, Social Security taxes and state and local income taxes in some states and localities
Withholding Tax
this is the tax that is levied by a country of on income paid,especially on dividends remitted to the home country of the firm operating in a foreign country
Without
Indicates a one-way market if 70 were bid in the market and there was no offer, the quote would be "70 bid without"
Without Recourse
it Gives the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party mentioned in the debt contract.
Without Recourse Financing
it is Financing of the right of recourse to the party , which receives the funds is forfeited to the party advancing funds. This may be evidenced by conditions which are added to the endorsement of a draft being sold by an exporter in order to protect the exporter, if the instrument is particularly not paid at the maturity by some original obligor.
Woody
it is a word used to describe a market that is moving strongly upward.
Working
it is Attempted to complete the remaining part of a trade, by either finding buyers or sellers for the rest.
Working capital
The value of money that is available to a business, after debts, to enable it to grow.
Workers compensation
This is an Insurance that pays for medical care and the physical rehabilitation of injured workers and it helps to replace lost wages while they are unable to work.
World trade organization
It is an international government organization (with over 120 members which is designed to shape an international trade system while it was created in 1994 as the GATT successor. the headquaters is in Geneva.
World wide income
This is the Criterion for the income tax liability of a resident company or individual of a certain country. In various countries a resident company or individual is subjected to corporate/individual income tax on its worldwide income, that is subjected to the double taxation relief.
Wolf
Speculators who make a kill in the market.
Worst case scenario loss
The worst case loss of a portfolio that would be calculated by valuing the portfolio under several scenarios of changes in the underlying prices and volatility. The maximum loss in any situation which is referred would be the Worst Scenario Loss.
Writer
A person who issues an option. The individual who at the end of the day has to buy or sell the asset on which the option is written, should the person who holds the option wish to exercise his rights.
Wrap fee
A fee that is taken for one or more product features or services.
Write downsthis is A decrease in the market value of an investment which it is established by the valuation.
X DividendA term meaning ‘without dividend’. A stock bought on or after the X- dividend day will not pay the purchaser the dividend already declared
Yankee Bond (U.S.)
A bond offering in the U.S. domestic market by a non-U.S. entity registered with the SEC.
Yield
The value of interest or dividend payments that results due to an investment by the investor. The formula of is % (the investment price)
Yield Advantage
it is the advantage which is gained by purchasing convertible securities instead of common stock, that equals the difference between the rates of return of the convertible security and the common shares.
Yield Burning
it is a A municipal bond financing method that the Underwriters use in advance refundings and add large markups on Treasury bonds bought and held in escrow so as to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. Since the bond prices and yields both move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues
Yield Curb
it Applies to the convertible securities.there is Difference in current yield between the convertible and the underlying common.
Yield Curve
This is the graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities.it is Related Term structure of interest rates Harvey (1991) finds that the inversions of the yield curve ,theyhave preceded the last five US recessions The yield curve can accurately forecast the turning points of the business cycle
Yield Curve Option-pricing Models
these are the Models which can incorporate different volatility assumptions along the yield curve, this is called arbitrage-free option-pricing models.
Yield Curve Strategies
the Investments that are in position for a portfolio to capitalize on the expected changes in the shape of the Treasury yield curve
Yield Differential/pickup
this is Mainly applies to convertible securities.this Graph shows that the term structure of interest rates is brought by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available.
Yield Equivalence
The interest rate at which a tax-exempt bond and a taxable security of similar quality gives that the investor the same rate of return.
Yield Maintenance
it is the Assistance from a financial institution's insurer that provided a guarantee that certain assets purchased by an acquiring institution in a resolution would yield a prescribed rate of return.
Yield to maturity ratio
The rate of return a bondholder receives, if held until its maturity date.the Yield to maturity ratios are then expressed as a long-term, annual rate, and are calculated by using a bond’s current market price, coupon interest rate, par value and time to maturity
Yield Ratio
it is The quotient of the two bond yield.
Yield Spread
This is the difference in yield between different security issues usually securities of different credit quality.
Yield Spread Strategies
the Investments which are in a position for a portfolio to capitalize on the expected changes in yield and that spreads between the sectors of the bond market.
Yield To Average Life
it is a yield calculation where bonds are retired routinely during the life of the issue. Since then the issuer purchases its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par, this action can provide automatic price support for these bonds and they will trade on a yield to average life basis
Yield To Call
it is The percentage rate of a bond or note if the investor buys and holds the security til the call date.This is valid only if the security is called prior to maturity.
Yield To Maturity
The percentage rate of return that is paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation that it is based on the coupon rate, the length of time to maturity, and the market price. It assumes that coupon interest paid over the life of the bond will be invested at the same rate.
Yield To Warrant Call
it Applies to the convertible securities. there is Effective yield of the usable or synthetic convertible bonds that it is determined against the first date at which the warrants.
Yield To Warrant Expiration
it Applies to the convertible securities. the Effective yield of usable convertible bonds is further determined by the expiration date of the applicable warrants.
Yield To Worst
The bond yield which is then computed by using the lower of either the yield to maturity or the yield to call on each possible call date.
Yo-yo Stock
A highly volatile stock that moves up and down like a yo-yo
Yieldup
It is Giving up of possession, by the tenant at the end of a lease.
Yuppie Scam (U.S.)
The name that is given to Wall Street insider trading scandal after a host of smart young lawyers, bankers and arbitrageurs that were found to be in the dealing ring.
Cover order
A Cover Order is intraday order which is followed by a mandatory Stop Loss Order. Hence, two orders can be placed at one time. This helps traders minimize their losses by protecting themselves from unexpected market fluctuations. A Cover Order can be placed either as a Market order when the order executes at the current price or as a Limit Order when the price of the share hits the desired entry price. The stop-loss order cannot be cancelled.
Z Z-Score
It is A statistical measure that determine the distance from a data point is from the mean of a data set. In a more financial sense, the Z-score is the output from a credit-strength test which gauges the likeliness of bankruptcy.
Zero Balance
when all the outstanding dues are paid then Whatever iT is shown on a credit card holder's bill and there is no new purchases that have been made during the billing cycle.
Zero Coupon Bond
A bond which pays no interest while the investor holds it. It is sold at a significant discount from its eventual maturity value, that is paying the investor the full face value when it comes due, with the difference between what he has been paid initially and what he has finally collected representing the interest he would have received over the years it was held.
Zero coupon yield curve
A yield curve of zero coupon bonds. This Market practice is often done to derive this curve theoretically from the par yield curve.this is Frequently used to derive discount factors. This is also known as spot yield curve.
Zero-Coupon Government Bonds
These are the Government bonds which are purchased at a heavy discount and that pays no cash dividend, different from regular bonds.
Zero Coupon Bond
A bond which has no coupon payments. It pays a single cash flow at the time of maturity.
Zero rate
This term is used in particularly relation with VAT, where the rate of tax which is in principle imposed but at a rate of 0% such that in effect there is no tax which is payable, but that will result in refunds of the input tax credits.
Zigzag
In the bull market, there is an Elliott three-wave pattern that further divides into a 5-3-5 pattern with top of wave B which is lower than the start of wave A. In the bear market, this pattern would be inverted.
Zone
A distinct area of land or part of a building that is allocated for a specific purpose, such as development plans.these may allocate areas of land for different uses or values of property and they may differentiate between areas of the floorspace of a building and allot different values to them.
Zoning
In terms of planning, the dividing of area by local planning authority into different zones for specific uses or activities.
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