terms,definitions,source,assigned_readability,flesch_reading_ease,flesch_kincaid_grade,smog_index,coleman_liau_index,automated_readability_index,dale_chall_readability_score,linsear_write_formula,gunning_fog
adjusted present value (apv),net present value of an asset if financed solely by equity plus the present value of any financing side effects.,prin,0,59.64,9.9,0,9.4,10.5,10.16,12,12
agency costs,"costs that arise when an agent (e.g., a manager) does not act solely in the interests of the principal (e.g., the shareholder).",prin,0,66.07,9.5,0,7.78,12.3,10.47,15,14.25
annual percentage rate (apr),"the interest rate per period (e.g., per month) multiplied by the number of periods in a year.",prin,0,62.68,8.7,0,6.67,8.4,10.98,12.5,16.21
annuity,investment that produces a level stream of cash flows for a limited number of periods.,prin,0,56.25,9.1,0,9.56,8.7,9.64,10.5,14
annuity due,annuity whose payments occur at the start of each period.,prin,0,61.33,7.2,0,8.5,6.2,10.45,6,12
annuity factor,present value of $1 paid for each of t periods.,prin,0,86.71,3.7,0,2.12,1.5,8.87,5,8
apr,annual percentage rate.,prin,0,9.21,12.7,0,13.12,13,14.31,2.5,27.87
apt,arbitrage pricing theory.,prin,0,-24.64,17.4,0,16.95,16.2,19.58,2.5,27.87
apv,adjusted present value.,prin,0,34.59,9.2,0,13.12,13,9.05,1.5,14.53
arbitrage,"purchase of one security and simultaneous sale of another to give a risk-free profit. often used loosely to describe the taking of offsetting positions in related securities, e.g., at the time of a takeover bid.",prin,0,27.49,18.1,0,11.5,19.9,11.24,24.5,20.86
arbitrage pricing theory (apt),model in which expected returns increase linearly with an asset’s sensitivity to a small number of pervasive factors.,prin,0,27.83,13.9,0,14.32,13.8,12.42,13,16.09
asked price (offered price),price at which a dealer is willing to sell (cf. bid price).,prin,0,93.14,3.3,0,3.12,3.4,6.86,5,4.8
asset beta,the beta of the firm if it were unlevered.,prin,0,87.72,3.3,0,2.23,0.9,9.35,4.5,8.04
automated clearing house (ach),"private electronic system run by banks for high-volume, low-value payments.",prin,0,35.95,10.7,0,17.2,14.7,13.61,7,8
banker’s acceptance (ba),written demand that has been accepted by a bank to pay a given sum at a future date  (cf. trade acceptance).,prin,0,67.08,9.1,0,5.63,8.6,8.44,12.5,12.21
basis risk,residual risk that results when the two sides of a hedge do not move exactly together.,prin,0,72.16,7.2,0,7.83,7.5,10.35,11,11.4
beta,measure of market risk.,prin,0,75.88,3.7,0,4.35,4.1,7.78,1,1.6
binomial method,method for valuing options that assumes there are only two possible changes in the asset price in any one period.,prin,0,59.64,9.9,0,9.69,10.7,10.16,12,10
bridge loan,short-term loan to provide temporary financing until more permanent financing is arranged.,prin,0,25.46,12.7,0,19.07,15.6,10.81,9,14.8
call option,option to buy an asset at a specified exercise price on or before a specified exercise date (cf. put option).,prin,0,51.18,11.1,0,7.66,9.8,8.58,14,12
capex,capital expenditure.,prin,0,-91.3,26.5,0,21.6,24.3,11.63,2,20.8
capital asset pricing model (capm),model in which expected returns increase linearly with an asset’s beta.,prin,0,43.39,9.9,0,13.15,10.2,14.23,6.5,11.67
capital budget,"list of planned investment projects, usually prepared annually.",prin,0,29.52,11.1,0,19.5,15.5,15.88,6,18.2
capital lease,financial lease.,prin,0,35.61,8.8,0,10,14.9,19.53,1,20.8
capital structure,mix of different securities issued by a firm.,prin,0,46.44,8.8,0,7.21,4.9,9.95,5,8.2
capm,capital asset pricing model.,prin,0,8.2,13.1,0,11.6,10,15.68,2,1.6
carve-out,public offering of shares in a subsidiary.,prin,0,64.37,6,0,9.06,6.3,10.75,3.5,8.51
certainty equivalent,a certain cash flow that has the same present value as a specified risky cash flow.,prin,0,80.62,6,0,6.73,6.6,6.4,8,8.9
closed-end fund,company whose assets consist of investments in a number of industrial and commercial companies.,prin,0,23.43,13.5,0,15.71,13.2,11.1,12,17.03
commercial draft (bill of exchange),demand for payment.,prin,0,59.97,5.6,0,5.35,6.8,9.05,0.5,1.2
commercial paper (cp),unsecured notes issued by companies and maturing within nine months.,prin,0,44.41,9.6,0,14.88,11.4,15.19,7,16
company cost of capital,the expected return on a portfolio of all the firm’s securities.,prin,0,43.39,9.9,0,9.49,7.2,9.92,7.5,15.31
compound interest,reinvestment of each interest payment on money invested to earn more interest (cf. simple interest).,prin,0,30.87,12.7,0,13.85,13.1,8.59,12.5,14
concentration account,if the firm’s customers make payments to a regional collection center. the deposits can be automatically transferred to a centralized .,prin,0,25.8,14.6,0,15.49,15.7,11.73,14.5,16
conglomerate merger,"merger between two companies in unrelated businesses (cf. horizontal merger, vertical merger).",prin,0,0.08,16.2,0,20,17.5,13.44,11,21.47
consumer credit,bills awaiting payment from final customer to a company.,prin,0,53.88,8,0,11.22,8.2,9.35,4.5,3.6
conversion price,par value of a convertible bond divided by the number of shares into which it may be exchanged.,prin,0,70.13,8,0,7.25,8,9.79,11,11.64
conversion ratio,number of shares for which a,prin,0,99.23,0.9,0,1.38,-0.5,6.57,2,2.4
convertible bond,may be exchanged.  bond that may be converted into another security at the holder’s option. similarly convertible preferred stock.,prin,0,26.81,14.2,0,15.66,15.6,12.06,14.5,16.02
corporation,a business that is legally separate from its owners.,prin,0,62.34,6.8,0,8.67,6.1,7.59,4.5,3.6
cost of (equity) capital,opportunity cost of capital.1  1 _x000c_2,prin,0,14.63,12.7,0,10.08,9,11.83,4,9.07
coupon,"(1) specifically, an attachment to the certificate of a bearer security that must be surrendered to collect interest payment; (2) more generally, interest payment on debt.",prin,0,19.71,17,0,13.81,18,12.21,21,21.17
covariance,measure of the co-movement between two variables.,prin,0,55.91,7.2,0,14.04,11,10.75,3.5,2.8
dcf,discounted cash flow.,prin,0,59.97,5.6,0,9.23,9.9,9.05,1.5,14.53
death-spiral convertible,convertible bond exchangeable for shares with a specified market value.,prin,0,44.41,9.6,0,16.62,12.8,12.03,7,16
debenture,unsecured bond.,prin,0,35.61,8.8,0,7.1,12.5,19.53,1,20.8
decision tree,method of representing alternative sequential decisions and the possible outcomes from these decisions.,prin,0,7.52,15.4,0,21.97,18,11.57,12.5,17.51
degree of operating leverage (dol),the percentage change in profits for a 1% change in sales.,prin,0,85.69,4,0,5.78,4.6,9.92,5.5,8.04
direct lease,lease in which the lessor purchases new equipment from the manufacturer and leases it to the lessee (cf. sale and lease-back).,prin,0,67.08,9.1,0,10.62,12.9,10.69,12.5,12.21
discount factor,present value of $1 received at a stated future date.,prin,0,78.25,4.8,0,5.6,4.3,10.45,4,4
discounted cash flow (dcf),future cash flows multiplied by discount factors to obtain present value.,prin,0,60.31,7.6,0,14.25,11.1,12.79,5.5,8.04
dividend discount model,model showing that the value of a share is equal to the discounted value of future dividends.,prin,0,62.68,8.7,0,8.35,8.4,9.12,10.5,11.51
dividend yield,annual dividend divided by share price.,prin,0,31.55,10.4,0,11.07,8.3,11.83,5,22.4
du pont formula,"formula expressing relationship between return on assets, sales-to-assets, profit margin, and measures of leverage.",prin,0,14.97,14.7,0,21.92,19.9,14.48,9,14.17
duration,the average number of years to an asset’s discounted cash flows.,prin,0,68.77,6.4,0,9.49,7.2,11.36,6.5,11.67
economic depreciation,decline in present value of an asset.,prin,0,81.29,3.7,0,4.94,2.9,8.5,2.5,2.8
economic income,cash flow plus change in present value.,prin,0,106.67,0.1,0,6.56,4.3,6.24,2.5,2.8
economic value added (eva),a measure of residual income implemented by the consulting firm stern stewart.,prin,0,42.38,10.3,0,13.73,10.9,12.13,8,14.8
efficient portfolio,portfolio that offers the lowest risk (standard deviation) for its expected return and the highest expected return for its level of risk.,prin,0,40.69,13.1,0,12.53,14.4,10.47,15,14.25
equipment trust certificate,form of secured debt generally used to finance railroad equipment. the trustee retains ownership of the equipment until the debt is repaid.,prin,0,49.15,11.9,0,13.29,14.8,11.19,13,12.44
etf,exchange-traded fund.,prin,0,-6.7,14.7,0,21.6,26.7,19.53,1,0.8
eurobond,(1) bond that is denominated in one country’s currency but marketed internationally outside that country. (2) also used to refer to suggested sovereign bond issues that would be guaranteed by all eurozone governments.,prin,0,12.6,19.7,0,14.75,21.5,12.45,25.5,24.11
eva,economic value added.,prin,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
evergreen credit,revolving credit without maturity.,prin,0,-34.11,19,0,20.3,17.1,15.68,3,21.6
exchange-traded fund (etf),a stock designed to track a stock market index.,prin,0,87.72,3.3,0,5.42,3.5,7.59,3.5,3.6
expectations theory,theory that forward interest rate (forward exchange rate) equals expected spot rate.,prin,0,42.38,10.3,0,15.65,13.2,9.5,8,14.8
face value,principal.,prin,0,-47.99,20.2,0,6.8,26.2,19.48,0.5,40.4
factor,"(1) a common influence on security prices (e.g., the level of interest rates or oil prices); (2) a business providing ing.",prin,0,50.16,11.5,0,7.83,12,13.7,14.5,16.02
financial assets,claims on real assets.,prin,0,75.88,3.7,0,2.9,2.9,11.73,1,1.6
financial engineering,combining or dividing existing instruments to create new financial products.,prin,0,10.56,14.3,0,19.52,15.1,15.19,9,24
financial intermediary,"an organization that raises money from many investors and provides financing to individuals, corporations, and other organizations.",prin,0,-5.01,18.2,0,20.65,18.9,11.91,13.5,18.56
"financial lease (capital lease, full-payout lease)","long-term, noncancelable lease (cf. operating lease).",prin,0,48.47,8,0,19.77,19.3,14.46,4,15.73
financial leverage (gearing),use of debt to increase the expected return on equity. financial leverage is measured by the ratio of debt to debt plus equity (cf. operating leverage).,prin,0,36.63,14.6,0,10.22,14.6,11.61,18,16.55
financial markets,markets in which securities are issued and traded.,prin,0,46.44,8.8,0,10.8,7.9,11.93,4,8.2
floating-price convertible,death-spiral convertible.,prin,0,-49,20.6,0,33.2,36.1,19.53,2,20.8
forward contract,agreement to buy or sell an asset in the future at an agreed-upon price.,prin,0,91.11,4,0,5.73,5.4,8.84,6,5.6
forward exchange rate,exchange rate fixed today for exchanging currency at some future date (cf. spot exchange rate).,prin,0,64.71,8,0,11.88,11.5,9.64,8.5,11.33
forward price,agreed-upon price for a forward contract.,prin,0,90.77,2.1,0,12.05,9.8,9.2,2,2.4
free cash flow (fcf),cash not required for operations or for reinvestment.,prin,0,46.44,8.8,0,13.01,9.7,9.95,5,13.2
full-payout lease,financial lease.,prin,0,35.61,8.8,0,10,14.9,19.53,1,20.8
full-service lease (rental lease),lease in which the lessor promises to maintain and insure the equipment (cf. net lease).,prin,0,81.63,5.6,0,9.21,9.3,11.75,6.5,6
futures contract,"a contract to buy a commodity or security on a future date at a price that is fixed today. unlike forward contracts, futures are traded on organized exchanges and are marked to market daily.",prin,0,36.97,16.6,0,9.59,17.3,10.9,20,17.13
futures exchange,exchange where futures contracts are traded.,prin,0,56.93,6.8,0,15.88,12.2,11.83,2,2.4
generally accepted accounting principles (gaap),procedures for preparing financial statements.,prin,0,-18.21,17,0,25.84,20.6,16.52,4.5,26
hedge fund,an investment fund charging a performance fee and open to a limited range of investors. funds often follow complex strategies including short sales.,prin,0,48.13,12.3,0,14.28,15.9,13.7,15.5,16.16
"hedge ratio (delta, option delta)","the number of shares to buy for each option sold to create a safe position; more generally, the number of units of an asset that should be bought to hedge one unit of a liability.",prin,0,52.87,14.6,0,6.86,15.6,9.88,20.5,17.43
high-yield bond,junk bond.,prin,0,120.21,-3.1,0,-7.41,0.8,11.63,0,0.8
horizontal merger,"merger between two companies that manufacture similar products (cf. vertical merger, conglomerate merger).",prin,0,-0.95,16.6,0,21.56,19.1,14,11.5,20.58
indenture,"formal agreement, e.g., establishing the terms of a bond issue.",prin,0,61.33,7.2,0,9.66,9,16.76,5,8
initial public offering (ipo),a company’s first public issue of common stock.,prin,0,63.36,6.4,0,8.66,6.1,9.95,4,8.2
internal rate of return (irr),discount rate at which investment has zero net present value.,prin,0,69.79,6,0,10.82,8.1,8.87,5,8
ipo,initial public offering.,prin,0,9.21,12.7,0,15.03,14.6,14.31,1.5,14.53
junk bond (high-yield bond),debt that is rated below an investment-grade bond.,prin,0,63.36,6.4,0,10.11,7.9,11.93,4,8.2
keiretsu,a network of japanese companies organized around a major bank.,prin,0,44.41,9.6,0,11.4,8.5,10.45,7,16
lease,long-term rental agreement.,prin,0,93.81,0.9,0,18.92,19.3,14.31,0.5,1.2
lessee,user of a leased asset (cf.,prin,0,90.77,2.1,0,-1.53,-1.2,14.46,2,2.4
lessor,owner of a leased asset (cf. lessee).,prin,0,89.75,2.5,0,2.44,2.9,13.01,2.5,2.8
leveraged buyout (lbo),acquisition in which (1) a large part of the purchase price is debt-financed and (2) the remaining equity is privately held by a small group of investors.,prin,0,52.53,12.6,0,9.23,14.4,10.82,18.5,16.73
leveraged lease,lease in which the lessor finances part of the cost of the asset by an issue of debt secured by the asset and the lease payments.,prin,0,78.93,8.7,0,5.98,10.4,9.78,13,10.4
limited liability,limitation of a shareholder’s losses to the amount invested.,prin,0,36.96,10.3,0,13.83,10.3,11.1,6.5,16.93
liquidity,ability to sell an asset on short notice at close to the market price.,prin,0,74.19,6.4,0,5.33,4.7,6.59,7,8.46
lockbox system,form of concentration banking. customers send payments to a post office box. a local bank collects and processes the checks and transfers surplus funds to the company’s principal bank.,prin,0,42.04,14.6,0,13.94,18.4,12.15,18.5,17.12
london interbank offered rate (libor),the interest rate at which major international banks in london borrow from each other. (libid is london interbank bid rate; limean is mean of bid and offered rate.),prin,0,51.52,13,0,10.33,15.6,9.54,17,15.49
management buyout (mbo),leveraged buyout whereby the acquiring group is led by the firm’s management.,prin,0,50.84,9.2,0,13.27,10.5,12.13,7,11.47
margin,cash or securities set aside by an investor as evidence that he or she can honor a commitment.,prin,0,61.67,9.1,0,6.9,7.7,8.04,12,13.87
marked to market,an arrangement whereby the profits or losses on a futures contract are settled up each day.,prin,0,63.7,8.4,0,9.63,8.9,11.34,8,8.9
market capitalization,market value of outstanding share capital.,prin,0,31.55,10.4,0,13.97,10.6,6.57,4,9.07
market capitalization rate,expected return on a security.,prin,0,15.64,12.3,0,7.28,5.6,10.2,3.5,18
market risk (systematic risk),risk that cannot be diversified away.,prin,0,56.93,6.8,0,9.15,6.7,9.2,3,9.07
market value added,difference between market value and book value of firm’s equity.,prin,0,35.95,10.7,0,12.56,9.5,7.29,6,8
market-to-book ratio,ratio of market value to book value of firm’s equity.,prin,0,52.87,8.4,0,6.18,4.3,8.87,5,8
mbo,management buyout.,prin,0,-6.7,14.7,0,15.8,19.6,19.53,1,20.8
medium-term note (mtn),debt with a typical maturity of 1 to 10 years offered regularly by a company using the same procedure as commercial paper.,prin,0,32.22,14.2,0,9.11,11.2,12.62,17,17.89
money market,market for short-term safe investments.,prin,0,49.48,7.6,0,16.56,14,7.04,2.5,10
monte carlo simulation,"method for calculating the probability distribution of possible outcomes, e.g., from a project.",prin,0,24.44,13.1,0,16.63,15.1,14,10.5,14.43
mortgage bond,bond secured against plant and equipment.,prin,0,90.77,2.1,0,12.98,9.8,11.83,2,2.4
mutual fund,managed investment fund whose shares are sold to investors.,prin,0,79.26,4.4,0,13.19,9.8,12.86,4.5,8.04
mutually exclusive projects,two projects that cannot both be undertaken.,prin,0,64.37,6,0,10.74,7.6,8.5,3.5,8.51
negotiable certificate of deposit (cd),a certificate for a time deposit of $1 million or more that can be sold before maturity.,prin,0,62.68,8.7,0,6.32,7,7.27,10.5,11.51
net lease,lease in which the lessee promises to maintain and insure the equipment (cf. full-service lease).,prin,0,81.63,5.6,0,12.29,12.1,11.75,6.5,6
net present value (npv),a project’s net contribution to wealth—present value minus initial investment.,prin,0,10.56,14.3,0,20.68,16.1,12.03,8,16
net working capital,current assets minus current liabilities.,prin,0,-18.21,17,0,20.04,15.9,16.52,2.5,10
note,unsecured debt with a maturity of up to 10 years.  3 _x000c_4,prin,0,67.76,6.8,0,4.05,3.8,13.44,7,11.47
operating lease,"short-term, cancelable lease (cf. financial lease).",prin,0,48.47,8,0,17.85,17.7,14.46,4,15.73
operating profit margin,after-tax operating income as a percentage of sales.,prin,0,29.52,11.1,0,11.56,9.1,9.95,6,13.2
"opportunity cost of capital (hurdle rate, cost of capital)",expected return that is foregone by investing in a project rather than in comparable financial securities.,prin,0,29.86,13.1,0,15.08,13.4,11.34,13,18.9
payback period,time until the cumulative cash flow equals the initial investment.,prin,0,52.87,8.4,0,13.72,10.4,10.45,6,12
payback rule,requirement that project should recover its initial investment within a specified time.,prin,0,42.38,10.3,0,18.08,14.4,13.44,9,18.13
payout ratio,dividend as a proportion of earnings per share.,prin,0,63.36,6.4,0,8.66,6.1,11.93,5,13.2
pension fund,investment plan set up by an employer to provide for employees’ retirement.,prin,0,42.38,10.3,0,12.28,9.7,10.81,9,18.13
perpetuity,investment offering a level stream of cash flows in  (cf. consol).,prin,0,60.31,7.6,0,8.45,7.6,11.36,6.5,11.67
preferred stock,stock that takes priority over common stock in regard to dividends. dividends may not be paid on common stock unless the dividend is paid on all  (cf. Cumulative ). the dividend rate on preferred is usually fixed at time of issue.,prin,0,51.18,11.1,0,9.28,10.8,9.37,13.75,13
present value (pv),discounted value of future cash flows.,prin,0,56.93,6.8,0,10.08,7.5,11.83,3,9.07
principal,amount of debt that must be repaid.,prin,0,106.67,0.1,0,3.26,1.6,8.5,2.5,2.8
private equity,"equity that is not publicly traded and that is used to finance business start-ups, leveraged buyouts, etc.",prin,0,62.68,8.7,0,11.77,12,11.91,8.5,9.15
privatization,sale of a government-owned company to private investors.,prin,0,37.98,10,0,14.46,11.4,9.95,5,3.2
profitability index,ratio of a project’s npv to the initial investment.,prin,0,53.88,8,0,8.03,5.6,12.86,5.5,12.49
project finance,debt that is largely a claim against the cash flows from a particular project rather than against the firm as a whole.,prin,0,82.99,7.2,0,8.01,10.3,9.75,12,10.62
prospectus,summary of the registration statement providing information on an issue of securities.,prin,0,0.08,16.2,0,17.62,14,13.44,11,21.47
put option,option to sell an asset at a specified exercise price on or before a specified exercise date (cf. call option).,prin,0,51.18,11.1,0,8.24,10.2,8.58,14,12
put-call parity,the relationship between the prices of european put and call options.,prin,0,60.31,7.6,0,12.1,9.3,9.92,6.5,11.67
pvgo,present value of growth opportunities.,prin,0,32.56,10,0,16.56,13.1,10.2,2.5,10
rate of return,total income and capital appreciation per period per dollar invested.,prin,0,2.11,15.5,0,15.46,11.8,12.03,8,16
real assets,tangible assets and intangible assets used to carry on business (cf. financial assets).,prin,0,32.9,11.9,0,13.5,12.2,10.35,8.5,14.43
real option,"the flexibility to modify, postpone, expand, or abandon a project.",prin,0,35.95,10.7,0,11.98,10.4,13.61,6,12
registration statement,"a detailed document prepared for the securities and exchange commission that presents information about a firm’s proposed financing and the firm’s history, existing business, and plans for the future.",prin,0,25.12,17,0,17.13,21,12.15,21.5,19.88
rental lease,full-service lease.,prin,0,77.91,2.9,0,15.8,22,11.63,0,0.8
replicating portfolio,package of assets whose returns exactly replicate those of an option.,prin,0,60.31,7.6,0,12.1,9.3,11.36,5.5,8.04
return on assets (roa),after-tax operating income as a percentage of total assets.,prin,0,20.04,12.7,0,12.5,9.8,11.1,6.5,12.49
return on capital (roc),after-tax operating income as a percentage of long-term capital.,prin,0,20.04,12.7,0,15.11,12.4,7.59,7.5,12.49
return on equity (roe),"  usually, equity earnings as a proportion of the book value of equity.",prin,0,25.46,12.7,0,8.92,7.3,9.5,9,14.8
revolving credit,legally assured line of credit with a bank.,prin,0,80.28,4.1,0,5.76,3.8,9.95,3,3.2
roe,return on equity.,prin,0,34.59,9.2,0,1.52,3.6,9.05,1.5,14.53
sale and lease-back,sale of an existing asset to a financial institution that then leases it back to the user (cf. direct lease).,prin,0,51.18,11.1,0,7.66,9.8,10.94,13,14
scenario analysis,analysis of the profitability of a project under alternative economic scenarios.,prin,0,9.55,14.7,0,17.9,14,12.79,10.5,22.58
securities,claims on real assets.,prin,0,75.88,3.7,0,2.9,2.9,11.73,1,1.6
security market line (sml),line representing the relationship between expected return and market risk.,prin,0,19.03,13.1,0,18.94,14.7,10.45,7,16
self-liquidating loan,loan to finance current assets. the sale of the current assets provides the cash to repay the loan.,prin,0,70.13,8,0,8.18,9,8.04,8,7.2
"specific risk (residual risk, unique risk, unsystematic risk)",risk that can be eliminated by diversification.,prin,0,22.07,11.9,0,13.17,9.7,10.75,4.5,14.23
spin-off,distribution of shares in a subsidiary to the company’s shareholders so that they hold shares separately in the two firms.,prin,0,51.18,11.1,0,12.3,12.8,10.16,14,16
spot exchange rate,exchange rate on currency for immediate delivery (cf. forward exchange rate).,prin,0,34.93,11.1,0,14.77,12.8,9.92,7.5,15.31
spot price,price of asset for immediate delivery (in contrast to forward or futures price).,prin,0,49.82,9.5,0,10.83,9.7,10.35,7.5,11.35
spot rate,interest rate fixed today on a loan that is made today (cf. forward interest rate).,prin,0,64.71,8,0,7.24,7.7,7.54,8.5,8.67
standard deviation,square root of the variance—a measure of variability.,prin,0,63.36,6.4,0,13.01,9.7,7.98,4,8.2
stripped bond (strip),bond that is subdivided into a series of zero-coupon bonds.,prin,0,52.87,8.4,0,9.08,7.1,13.61,6,8
term loan,"medium-term, privately placed loan, usually made by a bank.  4 _x000c_  5",prin,0,59.3,8,0,7.93,8.1,13.44,7,11.47
term structure of interest rates,relationship between interest rates on loans of different maturities (cf. yield curve).,prin,0,33.92,11.5,0,16.63,14.4,13.44,9,14.8
trade acceptance,written demand that has been accepted by an industrial company to pay a given sum at a future date (cf. banker’s acceptance).,prin,0,49.15,11.9,0,9.11,11.8,9.75,15,14.25
trade credit,accounts receivable.,prin,0,-6.7,14.7,0,21.6,24.3,19.53,1,20.8
trust deed,agreement between trustee and borrower setting out terms of a bond.,prin,0,68.77,6.4,0,11.06,8.5,11.36,5.5,8.04
variance,mean squared deviation from the expected value; a measure of variability.,prin,0,34.93,11.1,0,13.73,11.1,9.92,7.5,15.31
vertical merger,"merger between a supplier and its customer (cf. horizontal merger, conglomerate merger).",prin,0,17,13.9,0,16.63,14.8,10.81,8,14.8
wacc,weighted-average cost of capital.,prin,0,8.2,13.1,0,17.4,15.9,11.73,3,11.6
warrant,long-term call option issued by a company.,prin,0,64.37,6,0,8.24,6.3,8.5,3.5,2.8
weighted-average cost of capital (wacc),expected return on a portfolio of all the firm’s securities. used as hurdle rate for capital investment.,prin,0,37.3,12.3,0,11.77,11.5,10.05,13.5,16.21
working capital,current assets less current liabilities. the term is commonly used as synonymous with net .,prin,0,31.89,12.3,0,13.22,11.5,9.97,10.5,14.17
yield to maturity,internal rate of return on a bond,prin,0,81.29,3.7,0,2.44,0.3,8.5,3.5,8.51
Adam Smith,(1723 – 1790) Regarded as the father of modern Economics. Author of Wealth of Nations.,ncert,1,72.32,5,0,6.63,4.9,10.32,3.75,8.33
Aggregate monetary resources,Broad money without time deposits of post office savings organisation (M3).,ncert,1,43.39,9.9,0,14.25,11.9,8.49,5.5,8.04
Automatic stabilisers,"Under certain spending and tax rules, expenditures that automatically increase or taxes that automatically decrease when economic conditions worsen, therefore, stabilising the economy automatically.",ncert,1,-29.03,23.3,0,24.37,24.9,13.38,20,19.6
Autonomous change,A change in the values of variables in a macroeconomic model caused by a factor exogenous to the model.,ncert,1,60.65,9.5,0,8.36,9.1,10.4,11.5,11.81
Autonomous expenditure multiplier,The ratio of increase (or decrease) in aggregate output or income to an increase (or decrease) in autonomous spending.,ncert,1,43.73,11.9,0,11.72,12.8,10.4,11.5,11.81
Balance of payments,A set of accounts that summarise a country’s transactions with the rest of the world.,ncert,1,81.63,5.6,0,9.21,8.3,8.59,7.5,8.67
Balanced budget,A budget in which taxes are equal to government spending.,ncert,1,69.79,6,0,8.5,6.2,8.87,5,4
Balanced budget multiplier,The change in equilibrium output that results from a unit increase or decrease in both taxes and government spending.,ncert,1,52.19,10.7,0,12.65,12.6,11.23,11.5,9.71
Bank rate,The rate of interest payable by commercial banks to RBI if they borrow money from the latter in case of a shortage of reserves.,ncert,1,64.04,10.3,0,7.9,11,10.09,14,12.93
Barter exchange,Exchange of commodities without the mediation of money.,ncert,1,29.52,11.1,0,14.46,10.8,7.98,5,13.2
Base year,The year whose prices are used to calculate the real GDP.,ncert,1,85.69,4,0,5.78,4.2,8.49,5.5,8.04
Bonds,A paper bearing the promise of a stream of future monetary returns over a specified period of time . Issued by firms or governments for borrowing money from the public.,ncert,1,48.3,10.1,0,9.5,8.4,9.8,9,12.7
Broad money,Aggregate monetary resources  without time deposits of post office savings organisation (M3).,ncert,1,8.53,15.1,0,19.53,16.4,12.13,8,14.8
Capital,Factor of production which has itself been produced and which is not generally entirely consumed in the production process.,ncert,1,43.73,11.9,0,14.45,14.1,10.4,13.5,13.92
Capital gain/loss,Increase or decrease in the value of wealth of a bondholder due to an appreciation or reduction in the price of her bonds in the bond market.,ncert,1,60.99,11.5,0,7.49,12.1,9.07,16.5,15.24
Capital goods,Goods which are bought not for meeting immediate need of the consumer but for producing other goods.,ncert,1,62.68,8.7,0,10.73,10.3,7.27,10.5,11.51
Capitalist country or economy,A country in which most of the production is carried out by capitalist firms.,ncert,1,65.73,7.6,0,8.23,7.1,8.84,8,11.31
Capitalist firms,These are firms with the following features (a) private ownership of means of production (b) production for the market (c) sale and purchase of labour at a price which is called the wage rate (d) continuous accumulation of capital.,ncert,1,40.35,17.3,0,10.69,21.4,11.24,26.5,19.7
Cash Reserve Ratio (CRR),The fraction of their deposits which the commercial banks are required to keep with RBI.,ncert,1,81.63,5.6,0,10.37,9.3,10.7,7.5,8.67
Circular flow of income,"The concept that the aggregate value of goods and services produced in an economy is going around in a circular way. Either as factor payments, or as expenditures on goods and services, or as the value of aggregate production.",ncert,1,51.68,10.9,0,10.1,11,8.65,12.75,12.93
Consumer durables,Consumption goods which do not get exhausted immediately but last over a period of time are consumer durables.,ncert,1,53.21,10.3,0,12.06,11.9,9.79,13,16.09
Consumer Price Index (CPI),Percentage change in the weighted average price level. We take the prices of a given basket of consumption goods.,ncert,1,70.29,5.8,0,9.31,6.9,8.26,5.25,10.12
Consumption goods,Consumer durables  which do not get exhausted immediately but last over a period of time are consumer durables.,ncert,1,53.21,10.3,0,12.06,11.9,8.92,12,13.87
Corporate tax,Taxes imposed on the income made by the corporations (or private sector firms).,ncert,1,58.28,8.4,0,10.37,9.3,11.57,6.5,8.28
Currency deposit ratio,The ratio of money held by the public in currency to that held as deposits in commercial banks.,ncert,1,70.13,8,0,7.25,8,8.92,11,11.64
Depreciation,A decrease in the price of the domestic currency in terms of the foreign currency under floating exchange rates. It corresponds to an increase in the exchange rate.,ncert,1,65.73,7.6,0,10.08,8.6,9.41,8,9.89
Devaluation,The decrease in the price of domestic currency under pegged exchange rates through official action.,ncert,1,47.79,10.3,0,14.61,12.8,11.75,10.5,14
Double coincidence of wants,A situation where two economic agents have complementary demand for each others’ surplus production.,ncert,1,23.43,13.5,0,17.74,14.8,13.35,12,19.89
Economic agents or units,Economic units or economic agents are those individuals or institutions which take economic decisions.,ncert,1,14.97,14.7,0,18.61,15.5,11.1,13,17.03
Effective demand principle,"If the supply of final goods is assumed to be infinitely elastic at constant price over a short period of time, aggregate output is determined solely by the value of aggregate demand. This is called effective demand principle.",ncert,1,43.73,11.9,0,11.08,11.5,10.81,13,13.92
Entrepreneurship,"The task of organising, coordinating and risk-taking during production.",ncert,1,3.12,15.1,0,19.63,16,11.1,7.5,16.93
Ex ante consumption,The value of planned consumption.,ncert,1,66.4,5.2,0,10.76,8.4,10.2,2.5,10
Ex ante investment,The value of planned investment.,ncert,1,66.4,5.2,0,9.6,7.4,10.2,2.5,10
Ex ante,consumption The value of planned consumption.,ncert,1,48.47,8,0,16.87,13,9.2,4,9.07
Ex post,The actual or realised value of a variable as opposed to its planned value.,ncert,1,65.73,7.6,0,7.42,6.4,9.97,7,8.46
Exports,Sale of goods and services by the domestic country to the rest of the world.,ncert,1,81.63,5.6,0,5.73,5.5,6.49,7.5,8.67
External sector,It refers to the economic transaction of the domestic country with the rest of the world.,ncert,1,72.16,7.2,0,8.87,8.4,8.38,11,13.9
Externalities,"Those benefits or harms accruing to another person, firm or any other entity which occur because some person, firm or any other entity may be involved in an economic activity. If someone is causing benefits or good externality to another, the latter does not pay the former. If someone is inflicting harm or bad externality to another, the former does not compensate the latter.",ncert,1,41.4,12.8,15.5,10.62,12.4,8.39,15.33333333,13.52
Fiat money,Money with no intrinsic value.,ncert,1,49.48,7.6,0,7.28,5.6,7.04,2.5,10
Final goods,Those goods which do not undergo any further transformation in the production process.,ncert,1,58.28,8.4,0,14.43,11.9,9.14,8.5,14.43
Firms,Economic units which carry out production of goods and services and employ factors of production.,ncert,1,47.79,10.3,0,13.85,12.1,10.7,10.5,11.33
Fiscal policy,The policy of the government regarding the level of government spending and transfers and the tax structure.,ncert,1,45.76,11.1,0,13.45,12.6,9.12,12.5,11.51
Fixed exchange rate,An exchange rate between the currencies of two or more countries that is fixed at some level and adjusted only infrequently.,ncert,1,50.16,11.5,0,11.14,12.4,8.44,13.5,14.11
Flexible/floating exchange rate,An exchange rate determined by the forces of demand and supply in the foreign exchange market without central bank intervention.,ncert,1,42.72,12.3,0,14.04,14.2,10.16,12,12
Flows,Variables which are defined over a period of time.,ncert,1,79.26,4.4,0,7.39,5.1,9.35,4.5,8.04
Foreign exchange,"Foreign currency, all currencies other than the domestic currency of a given country.",ncert,1,32.9,11.9,0,13.5,11.5,9.14,10.5,14.43
Foreign exchange reserves,Foreign assets held by the central bank of the country.,ncert,1,78.25,4.8,0,7.34,5.2,8.87,4,4
Four factors of production,"Land, Labour, Capital and Entrepreneurship. Together these help in the production of goods and services.",ncert,1,63.86,6.2,0,13.59,10.6,8.22,4.75,8.33
GDP Deflator,Ratio of nominal to real GDP.,ncert,1,56.93,6.8,0,1.38,0.4,11.83,3,9.07
Government expenditure multiplier,The numerical coefficient showing the size of the increase in output resulting from each unit increase in government spending.,ncert,1,35.27,13.1,0,15.37,14.8,11.23,13.5,13.92
Government,expenditure multiplier The numerical coefficient showing the size of the increase in output resulting from each unit increase in government spending.,ncert,1,16.32,16.2,0,18.1,18,12.2,16.5,17.92
Great Depression,The time period of 1930s (started with the stock market crash in New York in 1929) which saw the output in the developed countries fall and unemployment rise by huge amounts.,ncert,1,56.93,13,0,9.7,16,10.27,18.5,16.27
Gross Domestic Product (GDP),Aggregate value of goods and services produced within the domestic territory of a country. It includes the replacement investment of the depreciation of capital stock.,ncert,1,33.41,11.7,0,14.54,11.8,10.57,8.75,14.6
Gross fiscal deficit,The excess of total government expenditure over revenue receipts and capital receipts that do not create debt.,ncert,1,37.3,12.3,0,14.15,13.1,10.98,11.5,9.15
Gross investment,Addition to capital stock which also includes replacement for the wear and tear which the capital stock undergoes.,ncert,1,44.75,11.5,0,13.34,13,8.04,14,13.87
Gross National Product (GNP),"GDP + Net Factor Income from Abroad. In other words GNP includes the aggregate income made by all citizens of the country, whereas GDP includes incomes by foreigners within the domestic economy and excludes incomes earned by the citizens in a foreign economy.",ncert,1,41.7,12.7,0,12.13,13.4,11.07,14.25,13.16
Gross primary deficit,The fiscal deficit minus interest payments.,ncert,1,48.47,8,0,14.95,11.4,17.09,3,9.07
High powered money,Money injected by the monetary authority in the economy. Consists mainly of currency.,ncert,1,22.58,11.7,0,11.43,8.3,12.46,4.75,17.98
Households,The families or individuals who supply factors of production to the firms and which buy the goods and services from the firms.,ncert,1,57.61,10.7,0,10.15,12,9.75,14,14.25
Imports,Purchase of goods and services by the domestic country to the rest of the world.,ncert,1,81.63,5.6,0,7.24,6.8,7.54,7.5,8.67
Interest,Payment for services which are provided by capital.,ncert,1,46.44,8.8,0,11.56,8.5,7.98,5,8.2
Intermediate goods,Goods which are used up during the process of production of other goods.,ncert,1,83.66,4.8,0,8.16,6.8,6.71,6.5,8.28
Inventories,"The unsold goods, unused raw materials or semi-finished goods which a firm carries from a year to the next.",ncert,1,69.11,8.3,0,8.99,10.1,10.4,10.5,9.71
John Maynard Keynes (1883 – 1946),Arguably the founder of Macroeconomics as a separate discipline.,ncert,1,45.42,9.2,0,16.38,12.4,11.1,6.5,12.49
Labour,"Four factors of production Land, , Capital and Entrepreneurship. Together these help in the production of goods and services.",ncert,1,53.88,8,0,14.12,11,7.59,6.25,8.04
Land,"Four factors of production , Labour, Capital and Entrepreneurship. Together these help in the production of goods and services.",ncert,1,53.88,8,0,14.76,11.6,8.47,6.25,8.04
Legal tender,Money issued by the monetary authority or the government which cannot be refused by anyone.,ncert,1,39.33,11.5,0,11.53,10.2,8.59,10.5,11.33
Lender of last resort,The function of the monetary authority of a country in which it provides guarantee of solvency to commercial banks in a situation of liquidity crisis or bank runs.,ncert,1,26.14,16.6,0,10.97,15.5,11.79,21,21.2
Liquidity trap,"A situation of very low rate of interest in the economy where every economic agent expects the interest rate to rise in future and consequently bond prices to fall, causing capital loss. Everybody holds her wealth in money and speculative demand for money is infinite.",ncert,1,40.18,13.2,0,11.49,13.3,10.02,16.25,15.22
Macroeconomic model,"Presenting the simplified version of the functioning of a macroeconomy through either analytical reasoning or mathematical, graphical representation.",ncert,1,-22.94,20.9,0,24.3,22.1,13.3,18,27.2
Managed floating,A system in which the central bank allows the exchange rate to be determined by market forces but intervene at times to influence the rate.,ncert,1,63.02,10.7,0,9.46,12.7,9.93,15.5,14.8
Marginal propensity to consume,The ratio of additional consumption to additional income.,ncert,1,4.14,14.7,0,15.91,12,9.95,6,13.2
Medium of exchange,The principal function of money for facilitating commodity exchanges.,ncert,1,3.12,15.1,0,19.63,15,12.86,6.5,16.93
Money multiplier,The ratio of total money supply to the stock of high powered money in an economy.,ncert,1,63.7,8.4,0,5.97,6,9.36,8,8.9
Narrow money,Broad money  + time deposits held by commercial banks and post office savings organisation.,ncert,1,32.9,11.9,0,15.3,13,9.14,8,11.35
National disposable income,Net National Product at market prices + Other Current Transfers from the rest of the World.,ncert,1,64.71,8,0,10.72,9.9,9.64,8,8.67
Net Domestic Product (NDP),Aggregate value of goods and services produced within the domestic territory of a country which does not include the depreciation of capital stock.,ncert,1,31.21,14.6,0,14.28,15.6,10.27,16.5,16.16
Net interest payments made by households,Interest payment made by the households to the firms – interest payments received by the households.,ncert,1,55.24,9.5,0,12.87,11.6,9.36,9,8.9
Net investment,"Addition to capital stock; unlike gross investment, it does not include the replacement for the depletion of capital stock.",ncert,1,43.73,11.9,0,13.87,14.1,10.4,15.5,16.02
Nominal exchange rate,The number of units of domestic currency one must give,ncert,1,69.79,6,0,7.34,4.8,8.87,6,12
Nominal (GDP),GDP evaluated at current market prices.,ncert,1,48.47,8,0,11.07,8.3,14.46,3,9.07
Non-tax,payments Payments made by households to the firms or the government as non-tax obligations such as fines.,ncert,1,62.68,8.7,0,12.12,11.8,10.05,10.5,9.15
payments,Balance of  A set of accounts that summarise a country’s transactions with the rest of the world.,ncert,1,71.14,7.6,0,9.39,9.3,9.12,8.5,9.15
Open market operation,Purchase or sales of government securities by the central bank from the general public in the bond market in a bid to increase or decrease the money supply in the economy.,ncert,1,48.47,14.2,0,9.53,15.5,9.76,19.5,14.98
Paradox of thrift,As people become more thrifty they end up saving less or same as before in aggregate.,ncert,1,72.16,7.2,0,7.42,7.2,7.39,8,8.9
Parametric shift,Shift of a graph due to a change in the value of a parameter.,ncert,1,82.65,5.2,0,1.62,1.7,7.71,7,8.46
Personal Disposable Income (PDI),PI – Personal tax payments – Non-tax payments.,ncert,1,63.36,6.4,0,7.21,5.6,11.93,4,8.2
Personal Income (PI),NI – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.,ncert,1,47.12,12.7,0,13.93,16.1,10.75,16.5,14.6
Personal tax payments,Personal Disposable Income (PDI) PI –  – Non-tax payments.,ncert,1,36.96,10.3,0,9.94,8.7,14.61,5.5,12.49
Planned change in inventories,Change in the stock of inventories which has occurred in a planned way.,ncert,1,83.66,4.8,0,7.7,6.5,7.93,6.5,8.28
Present value (of a bond),"That amount of money which, if kept today in an interest earning project, would generate the same income as the sum promised by a bond over its lifetime.",ncert,1,68.44,10.7,0,8.48,13.8,8.97,16,14.06
Private income,Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world.,ncert,1,22.08,18.1,0,14.69,20.8,11.14,23,17.8
Profit,Payment for the services which are provided by entrepreneurship.,ncert,1,53.88,8,0,16.38,12.4,9.35,5.5,12.49
Public good,Goods or services that are collectively consumed; it is not possible to exclude anyone from enjoying their benefits and one person’s consumption does not reduce that available to others.,ncert,1,33.58,15.8,0,14.52,18.7,11.06,20.5,18.5
Purchasing power parity,A theory of international exchange which holds that the price of similar goods in different countries is the same.,ncert,1,52.19,10.7,0,11.72,11.9,8.73,13.5,13.92
Real exchange rate,The relative price of foreign goods in terms of domestic goods.,ncert,1,68.77,6.4,0,8.97,6.8,9.92,6.5,11.67
Real GDP,GDP evaluated at a set of constant prices.,ncert,1,71.82,5.2,0,5,3.2,11.93,4,8.2
Rent,Payment for services which are provided by land (natural resources).,ncert,1,52.87,8.4,0,13.72,11.4,10.45,6,12
Reserve deposit ratio,The fraction of their total deposits which commercial banks keep as reserves.,ncert,1,67.76,6.8,0,13.27,10.5,12.13,6,8.13
Revaluation,A decrease in the exchange rate in a pegged exchange rate system which makes the foreign currency cheaper in terms of the domestic currency.,ncert,1,55.58,11.5,0,11.03,13.6,10.75,15,12.93
Revenue deficit,The excess of revenue expenditure over revenue receipts.,ncert,1,37.98,10,0,15.15,11.4,11.93,4,8.2
Ricardian equivalence,"The theory that consumers are forward looking and anticipate that government borrowing today will mean a tax increase in the future to repay the debt, and will adjust consumption accordingly so that it will have the same effect on the economy as a tax increase today.",ncert,1,24.79,21.2,0,11.33,24.3,10.38,30,23.62
Speculative demand,Demand for money as a store of wealth.,ncert,1,88.74,2.9,0,2.1,0.8,6.01,3,3.2
Statutory Liquidity Ratio (SLR),The fraction of their total demand and time deposits which the commercial banks are required by RBI to invest in specified liquid assets.,ncert,1,56.59,11.1,0,11.78,13.6,13.02,13.5,12.68
Sterilisation,Intervention by the monetary authority of a country in the money,ncert,1,34.93,11.1,0,10.01,7.2,8.49,7.5,15.31
Stocks,Those variables which are defined at a point of time.,ncert,1,95.17,2.5,0,6.18,4.3,7.29,4,4
Store of value,Wealth can be stored in the form of money for future use. This function of money is referred to as store of value.,ncert,1,85.18,4.2,0,4.21,3.2,6.95,4.75,4.6
Transaction demand,Demand for money for carrying out transactions.,ncert,1,38.99,9.6,0,13.17,9.7,10.75,4.5,14.23
Undistributed profits,Personal Income (PI) NI –  – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.,ncert,1,46.1,13,0,11.78,15.2,10.56,17,14.8
Unemployment rate,"This may be defined as the number of people who were unable to find a job (though they were looking for jobs), as a ratio of total number of people who were looking for jobs.",ncert,1,61.33,13.4,0,5.87,14.9,8.08,17.5,14
Unit of account,The role of money as a yardstick for measuring and comparing values of different commodities.,ncert,1,47.79,10.3,0,12.29,10.9,10.7,11.5,14
Unplanned change in inventories,Change in the stock of inventories which has occurred in an unexpected way.,ncert,1,66.74,7.2,0,9.5,7.9,7.93,7.5,11.35
Value added,"Net contribution made by a firm in the process of production. It is defined as, Value of production – Value of intermediate goods used.",ncert,1,59.3,8,0,8.16,6.6,8.18,7,9.8
Wage,Payment for the services which are rendered by labour.,ncert,1,87.72,3.3,0,9.94,7.1,9.35,3.5,3.6
Wholesale Price Index (WPI),Percentage change in the weighted average price level. We take the prices of a given basket of goods which is traded in bulk.,ncert,1,76.72,5.4,0,7,5.4,8.33,5.75,8.08
arbitrage pricing theory APT,"An asset pricing theory that is derived from a factor model, using diversification and arbitrage arguments. The theory describes the relationship between expected return and factor exposure that follows from the absence of risk-free arbitrage opportunities.",zvi,0,10.91,16.2,0,17.57,16.6,12.42,14,16.09
ask price,The price at which a dealer will sell a security.,zvi,0,78.25,4.8,0,3.86,2.4,7.29,5,8
asset allocation,Allocating a portfolio across broad asset classes such as stocks versus bonds.,zvi,0,50.84,9.2,0,13.73,10.9,13.44,7,11.47
at the money,The option™s exercise price and the price of the underlying asset are equal.,zvi,0,66.74,7.2,0,9.96,8.2,10.35,7.5,11.35
auction market,A market where all traders in an asset meet @either physically or electronically@ at one place to buy and sell.,zvi,0,59.64,9.9,0,8.53,10.2,7.79,12,12
average collection period,The ratio of accounts receivable to daily sales. Also called days™ receivables.,zvi,0,56.93,6.8,0,11.07,8.3,13.14,3,9.07
backfill bias,Bias in the average returns of a sample of funds induced by including past returns on funds that entered the sample only if they happened to be successful.,zvi,0,51.52,13,0,9.35,14.1,10.66,17,15.49
balance sheet,An accounting statement of a firm™s  financial position at a specified time.,zvi,0,33.92,11.5,0,12.28,9.7,13.44,9,18.13
bank discount yield,"An annualized interest rate assuming simple interest, a 360-day year, and using the face value of the security rather than purchase price to compute return per dollar invested.banker™s acceptance An order to a bank by a customer to pay a sum of money at a future date.",zvi,0,23.77,21.6,0,10.4,24.3,10.34,30.5,23.91
baseline forecasts,Forecast of security returns derived from the assumption that the market is in equilibrium where current prices reflect all available information.,zvi,0,24.78,15,0,17.23,17.3,12.95,14.5,16.02
basis,The difference between the futures price and the spot price.,zvi,0,78.25,4.8,0,10.24,7.6,5.71,5,4
behavioral finance,Models of financial markets that emphasize implications of psychological factors affecting investor behavior.,zvi,0,-17.87,19,0,24.64,20.2,16.43,12.5,23.66
benchmark error,Use of an inappropriate proxy for the true market portfolio.,zvi,0,52.87,8.4,0,10.24,7.6,8.87,6,12
benchmark portfolio,Portfolio against which a manager is to be evaluated.,zvi,0,45.42,9.2,0,9.31,6.6,7.59,6.5,12.49
bid price,The price at which a dealer is willing to purchase a security.,zvi,0,67.76,6.8,0,6.02,4.6,8.18,6,8.13
abnormal return,Return on a stock beyond what would be predicted by market movements alone. Cumulative abnor-mal return @CAR@ is the total  for the period surrounding an announcement or the release of information.,zvi,0,38.82,11.7,0,12.53,11.5,10.52,11.25,13.94
accounting earnings,Earnings of a firm as reported on its income statement.,zvi,0,69.79,6,0,7.34,5.2,10.45,5,8
active management,"Attempts to achieve portfolio returns more than commensurate with risk, either by forecasting broad market trends or by identifying mispriced sectors of a market or particular securities.",zvi,0,18.69,17.4,0,17.18,20.1,12.58,19.5,19.69
active portfolio,"In the context of the Treynor-Black model, the portfolio formed by mixing analyzed stocks of perceived nonzero alpha values. This portfolio is ultimately mixed with the passive market-index portfolio.",zvi,0,48.3,10.1,0,15.54,13.8,13.07,8.75,9.94
adjusted alphas,Forecasts for alpha that are modulated to account for statistical imprecision in the analyst™s estimate.,zvi,0,13.95,15,0,16.52,14.3,12.8,12.5,19.33
agency problem,"Conflicts of interest among stockholders, bondholders, and managers.",zvi,0,29.52,11.1,0,22.4,18.5,13.9,6,18.2
algorithmic trading,The use of computer programs to make trading decisions.,zvi,0,53.88,8,0,10.58,7.7,11.1,5.5,12.49
alpha transfer,"A strategy in which you invest in positive alpha positions, hedge the systematic risk of the investment, and finally establish market exposure where you want it using passive indexes. @See",zvi,0,24.11,17.4,0,13.3,18.5,12.49,24,22.67
alpha value,The abnormal rate of return on a security in excess of what would be predicted by an equilibrium model like the CAPM.,zvi,0,49.15,11.9,0,7.78,10.1,9.75,15,16.07
American depositary receipts ADRs,Domestically traded securities representing claims to shares of foreign stocks.,zvi,0,10.56,14.3,0,21.26,16.5,16.76,7,16
European option,"American option An American option can be exercised before and up to its expiration date. Compare with a  , which can be exercised only on the  expiration date.",zvi,0,40.85,10.9,0,9.62,8.2,6.06,9,8.36
announcement date,"Date on which particular news con-cerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the eco-nomic impact of events of interest.",zvi,0,56.25,9.1,0,11.53,10.7,11.22,10.5,10
annual percentage rate APR,Interest rate is annualized using simple rather than compound interest.,zvi,0,27.49,11.9,0,16.62,12.8,10.45,7,12
anomalies,Patterns of returns that seem to contradict the efficient market hypothesis.,zvi,0,34.93,11.1,0,15.81,12.3,11.36,7.5,15.31
appraisal ratio,The signal-to-noise ratio of an analyst™s forecasts. The ratio of alpha to residual standard deviation.,zvi,0,46.94,8.6,0,13.24,10.3,13.48,4.25,11
calendar spread,Buy one option and write another with a different expiration date.,zvi,0,51.85,8.8,0,10.54,8,7.05,7.5,8.04
call protection,An initial period during which a callable bond may not be called.,zvi,0,84.68,4.4,0,7.47,5.8,10.81,6,8.13
callable bond,A bond that the issuer may repurchase at a given call price in some specified period.,zvi,0,63.7,8.4,0,7.42,7.2,9.36,11,13.9
capital allocation decision,Allocation of invested funds between risk-free assets versus the risky portfolio.,zvi,0,26.47,12.3,0,17.9,14.4,15.67,7.5,15.31
capital allocation line CAL,A graph showing all feasible riskŒreturn combinations of a risky and risk-free asset.,zvi,0,49.82,9.5,0,13.5,11.5,14,7.5,11.35
capital gains,The amount by which the sale price of a security exceeds the purchase price.,zvi,0,74.19,6.4,0,7.82,6.8,7.71,7,8.46
capital market line CML,The capital allocation line that results when using the market index as the risky portfolio.,zvi,0,47.79,10.3,0,11.88,10.6,10.7,10.5,11.33
capital markets,"Includes longer-term, relatively riskier securities.",zvi,0,-35.13,19.4,0,30.48,26.3,19.67,3.5,18
cash equivalents,Short-term money-market securities.,zvi,0,-75.4,24.5,0,32.43,31.9,9.05,2.5,14.53
cash flow matching,"A form of immunization, matching cash flows from a bond portfolio with those of an obligation.",zvi,0,63.7,8.4,0,10.32,9.8,10.35,11,13.9
cash ratio,Measure of liquidity of a firm. Ratio of cash and marketable securities to current liabilities.,zvi,0,38.48,9.8,0,10.92,7.8,11.38,4.25,11
cash settlement,The provision of some futures contracts that requires not delivery of the underlying assets @as in  agricultural futures@ but settlement according to the cash value of the asset.,zvi,0,26.14,16.6,0,13.47,17.8,10.66,20,18.34
cash/bond selection,Asset allocation in which the choice is between short-term cash equivalents and longer-term bonds.,zvi,0,57.27,8.8,0,16.12,14.2,9.97,8,11.31
certainty equivalent rate,The certain return providing the same utility as a risky portfolio.,zvi,0,51.85,8.8,0,11.06,8.5,9.92,7.5,15.31
certificate of deposit,A bank time deposit.,zvi,0,92.8,1.3,0,0,0.6,0.2,1,1.6
clearinghouse,"Established by exchanges to facilitate transfer of securities resulting from trades. For options and futures contracts, the  may interpose itself as a middleman between two traders.",zvi,0,41.36,10.7,0,15.76,13.1,12.18,8.5,14.43
closed-end mutual fund,A fund whose shares are traded through brokers at market prices; the fund will not redeem shares at their net asset value. The market price of the fund can differ from the net asset value.,zvi,0,79.09,6.6,0,7.42,8,8.11,7.75,7
collar,An options strategy that brackets the value of a port-folio between two bounds.,zvi,0,58.28,8.4,0,10.83,9.3,11.57,7.5,8.28
collateral,A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on prop-erty. Collateral trust bonds are backed by claims on other securities. Equipment obligation bonds are backed by claims on equipment.,zvi,0,70.5,5.7,10.1,11.68,8.8,10.5,5.125,8.04
collateralized debt obligation CDO,A pool of loans sliced into several tranches with different levels of credit risk.bidŒask spread The difference between a dealer™s bid and ask price.,zvi,0,55.58,11.5,0,13,15.3,10.75,15,9.6
binomial model,An option-valuation model predicated  on the assumption that stock prices can move to only two values over any short time period.,zvi,0,33.24,13.8,0,12.01,13.3,10.69,14.5,16.02
Black-Scholes pricing formula,"An equation to value an option that uses the stock price, the exercise price, the  risk-free interest rate, the time to maturity, and the standard deviation of the stock return.",zvi,0,41.03,15,0,10.57,16.6,9.86,19,17.33
blocks,"A transaction of more than 10,000 shares of stock. Also referred to as a block sale.",zvi,0,88.74,2.9,0,4.31,2.9,8.97,3.5,5.7
bogey,The return an investment manager is compared to for performance evaluation.,zvi,0,26.47,12.3,0,15.29,11.9,9.92,8.5,15.31
bond,"A security issued by a borrower that obligates the issuer to make specified payments to the holder over a  specific period. A coupon  obligates the issuer to make interest payments called coupon payments over the life of the , then to repay the",zvi,0,41.7,12.7,0,10.04,11.5,9.19,14.75,15.07
bond equivalent yield,Bond yield calculated on an annual percentage rate method. Differs from effective annual yield.,zvi,0,38.99,9.6,0,13.17,9.7,13.01,5,14.23
bond indenture,The contract between the issuer and the bondholder.,zvi,0,63.36,6.4,0,11.56,8.5,9.95,4,8.2
bond reconstitution,Combining zero-coupon stripped securities to re-create the original cash flows of a coupon bond.,zvi,0,48.81,9.9,0,15.25,13.5,15.61,11,14.17
bond stripping,Selling bond cash flows @either coupon or principal payments@ as stand-alone zero-coupon securities.,zvi,0,41.36,10.7,0,18.84,17,14,8.5,11.35
book value,The net worth of common equity according to a firm™s balance sheet.,zvi,0,59.3,8,0,8.4,6.6,12.13,7,11.47
book-to-market effect,The tendency for stocks of firms with high ratios of book-to-market value to generate abnor-mal returns.,zvi,0,46.78,10.7,0,13.22,12.8,12.33,12,11.4
breadth,The extent to which movements in the broad  market index are reflected widely in movements of indi-vidual stock prices.,zvi,0,43.73,11.9,0,12.65,12.8,11.23,11.5,11.81
brokered market,A market where an intermediary  @a broker@ offers search services to buyers and sellers.,zvi,0,40.35,11.1,0,11.53,10.5,11.1,7,8.46
budget deficit,The amount by which government spending exceeds government revenues.,zvi,0,45.42,9.2,0,18.99,14.5,9.35,5.5,3.6
"bull CD, bear CD",A bull CD pays its holder a specified percentage of the increase in return on a specified market index while guaranteeing a minimum rate of return.  A bear CD pays the holder a fraction of any fall in a  given market index.,zvi,0,28.85,19.7,0,8.2,19.8,9.1,13,20.61
"bullish, bearish",Words used to describe investor attitudes. Bullish means optimistic; bearish means pessimistic. Also used in bull market and bear market.,zvi,0,64.67,5.9,7.8,12.82,9.7,9.5,3,6.68
"bundling, unbundling",Creation of securities either by com-bining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes or tranches.,zvi,0,3.8,18.9,0,15.96,18.2,13.09,19.5,18
business cycle,Repetitive cycles of recession and recovery.Final PDF to printer˛ 3,zvi,0,27.49,11.9,0,14.3,10.9,16.76,7,16
cost-of-carry relationship,See spot-futures parity theorem.,zvi,0,-8.73,15.5,0,15.95,14.7,15.68,4,21.6
country selection,Asset allocation in which the investor chooses among investments in different countries.,zvi,0,33.92,11.5,0,18.55,14.8,12.13,8,11.47
coupon rate,A bond™s interest payments per dollar of  par value.,zvi,0,53.88,8,0,8.03,5.6,14.61,4.5,8.04
covered call,A combination of selling a call option together with buying the underlying asset.,zvi,0,32.9,11.9,0,12.17,10.1,11.57,8.5,11.35
credit default swap CDS,An insurance policy on the credit risk of a corporate bond or loan.,zvi,0,66.74,7.2,0,5.9,5,11.57,8.5,14.43
credit enhancement,Purchase of the financial guarantee of another party to reduce the credit risk of a bond or loan.,zvi,0,53.21,10.3,0,7.89,8.5,10.67,12,11.64
credit risk,The risk that the bond will not make all of its promised payments; default risk.,zvi,0,98.55,3.2,0,6.89,6.8,9.64,6.5,6
cross-hedge,Hedging a position in one asset using futures contracts on another commodity.,zvi,0,25.46,12.7,0,13.27,10.5,13.44,8,11.47
cumulative abnormal return CAR,See abnormal return.,zvi,0,34.59,9.2,0,7.32,8.3,9.05,1.5,14.53
currency selection,Asset allocation in which the investor chooses among investments denominated in different currencies.,zvi,0,7.52,15.4,0,21.1,17.3,12.78,11.5,17.51
current ratio,Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by  liquidating current assets.,zvi,0,19.53,12.9,0,15.45,12.1,9.93,6.25,10.12
current yield,A bond™s annual coupon payment divided  by its price. Differs from yield to maturity.,zvi,0,55.91,7.2,0,8.65,5.9,13.01,4,11.37
cyclical industries,Industries with above-average sensitiv-ity to the state of the economy.,zvi,0,27.49,11.9,0,15.46,12.8,12.03,8,20
dark pools,Electronic trading networks where participants can anonymously buy or sell large blocks of securities.,zvi,0,31.89,12.3,0,18.61,15.5,12.23,11,17.03
data mining,Sorting through large amounts of historical data to uncover systematic patterns that can be used as the basis of a trading strategy.,zvi,0,40.69,13.1,0,11.72,13.4,11.9,15,16.07
day order,A buy order or a sell order expiring at the close of the trading day.days™ receivables See,zvi,0,62.68,8.7,0,7.31,7.6,8.19,10.5,11.51
dealer market,A market where traders specializing in  particular assets buy and sell assets for their own accounts.,zvi,0,46.78,10.7,0,12.87,11.6,9.36,9,11.4
debenture bond,A bond not backed by specific collateral. Also called anunsecured bond.,zvi,0,57.43,6.6,0,9.96,7.5,12.52,3.25,13.11
debt securities,Bonds; also called fixed-income securities.,zvi,0,15.64,12.3,0,20.04,17.8,16.52,3.5,10
dedication strategy,Multiperiod cash flow matching.,zvi,0,33.58,9.6,0,15.95,13.5,11.73,2,11.6
default premium,A differential in promised yield that  compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default.,zvi,0,47.12,12.7,0,13.47,15.5,12.72,17,17.93
collateralized mortgage obligation CMO,A mortgage pass-through security that partitions cash flows from  underlying mortgages into classes called tranches that receive principal payments according to stipulated rules.,zvi,0,14.29,17,0,21.59,21.8,14.39,17.5,19.63
commercial paper,Short-term unsecured debt issued by large corporations.,zvi,0,30.53,10.7,0,18.97,15,13.01,4.5,14.23
common stock,"Equities, or equity securities, issued as ownership shares in a publicly held corporation. Sharehold-ers have voting rights and may receive dividends based on their proportionate ownership.",zvi,0,24.44,13.1,0,17.33,14.8,13.39,11,15.97
comparison universe,"The set of money managers employ-ing similar investment styles, used for assessing the relative performance of a portfolio manager.",zvi,0,26.81,14.2,0,16.3,16.1,12.89,17.5,20.23
complete portfolio,"The entire portfolio, including risky and risk-free assets.",zvi,0,37.98,10,0,15.91,13.2,15.88,5,13.2
conditional tail expectation CTE,Expectation of a random variable conditional on its falling below some threshold value. Often used as a measure of downside risk.,zvi,0,52.36,8.6,0,10.82,8.3,10.17,5.25,8.01
confidence index,Ratio of the yield on top-rated corporate bonds to the yield on intermediate-grade bonds.,zvi,0,57.27,8.8,0,12.35,11.1,11.1,8,11.31
conservativism,Notion that investors are too slow to update their beliefs in response to new evidence.,zvi,0,64.71,8,0,9.97,9,10.7,7.5,8.67
constant-growth DDM,A special case of the dividend discount model that assumes dividends will grow at a  constant rate.,zvi,0,54.22,9.9,0,10.03,9.8,10.98,10.5,11.51
contango theory,Holds that the futures price must exceed the expected future spot price.,zvi,0,76.22,5.6,0,10.83,8.5,10.81,6,8.13
contingent immunization,A mixed passive-active strat-egy that immunizes a portfolio if necessary to guarantee a minimum acceptable return but otherwise allows active management.,zvi,0,7.86,17.4,0,18.62,18.9,14.45,20.5,21.73
convergence arbitrage,A bet that two or more prices are out of alignment and that profits can be made when the prices converge back to proper relationship.,zvi,0,71.48,9.5,0,8.07,11.6,8.03,13.5,11.6
convergence property,The convergence of futures prices and spot prices at the maturity of the futures contract.,zvi,0,64.71,8,0,11.13,9.9,9.64,8.5,11.33
convexity,The curvature of the price-yield relationship of a bond.,zvi,0,62.34,6.8,0,10.58,8.2,11.1,5.5,12.49
corporate bonds,Long-term debt issued by private  corporations typically paying semiannual coupons and returning the face value of the bond at maturity.,zvi,0,17.34,15.8,0,15.78,15.9,13.31,15,18
correlation coefficient,A statistic in which the covariance is scaled to a value between fi1 @perfect negative correla-tion@ and +1 @perfect positive correlation@.Final PDF to printer˝ 4,zvi,0,29.18,15.4,0,13.41,17.1,14.35,17.5,16.4
defensive industries,Industries with below-average  sensitivity to the state of the economy.,zvi,0,2.11,15.5,0,15.46,12.3,10.45,8,20
deferred annuities,Tax-advantaged life insurance product. Deferred annuities offer deferral of taxes with the option of withdrawing one™s funds in the form of a life annuity.,zvi,0,42.38,10.3,0,13.04,10.5,12.13,8,14.8
defined benefit plans,Pension plans in which retirement benefits are set according to a fixed formula.,zvi,0,49.82,9.5,0,11.7,9.7,12.78,10.5,17.51
defined contribution plans,Pension plans in which the employer is committed to making contributions according to a fixed formula.,zvi,0,38.32,11.9,0,13.63,12.2,12.33,13,18.9
degree of operating leverage DOL,Percentage change in profits for a 1% change in sales.,zvi,0,86.71,3.7,0,6.18,4.8,10.45,5,8
delta of option,The number of stocks required to hedge against the price risk of writing one option. Also called the hedge ratio.,zvi,0,86.71,3.7,0,7.92,5.7,9.66,4,4
delta neutral,The value of the options portfolio is not affected by changes in the value of the underlying asset.,zvi,0,53.21,10.3,0,8.52,9,9.79,12,13.87
demand shock,An event that affects the demand for goods and services in the economy.,zvi,0,75.2,6,0,7.7,6.5,10.35,6.5,8.28
derivative asset,Claim whose value is directly dependent on or is contingent on the value of some underlying assets.,zvi,0,45.76,11.1,0,10.38,10.1,10.05,12.5,16.21
derivative security,"A security whose payoff depends on the value of other financial variables such as stock prices, interest rates, or exchange rates.",zvi,0,50.16,11.5,0,12.3,13.8,10.69,13.5,14.11
direct search market,Buyers and sellers seek each other directly and transact directly.,zvi,0,44.41,9.6,0,13.72,10.4,10.45,6,8
directional strategy,Speculation that one sector or another will outperform other sectors of the market.,zvi,0,41.36,10.7,0,13.04,10.8,9.14,8.5,11.35
discount bond,A bond selling below par value.,zvi,0,73.85,4.5,0,3.35,2,11.83,2,2.4
discretionary account,An account of a customer who gives a broker the authority to make buy and sell decisions on the customer™s behalf.,zvi,0,58.62,10.3,0,8.41,10.2,9.19,12.5,12.21
disposition effect,The tendency of investors to hold on to losing investments.,zvi,0,61.33,7.2,0,9.66,7.1,10.45,6,12
diversifiable risk,"Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk, firm-specific risk, or",zvi,0,28.5,11.5,0,15.74,12.6,11.98,6,12.49
diversification,Spreading a portfolio over many invest-ments to avoid excessive exposure to any one source of risk.,zvi,0,55.24,9.5,0,12.18,11.3,13.31,12,13.9
dividend discount model DDM,A formula stating that the intrinsic value of a firm is the present value of all expected future dividends.,zvi,0,52.19,10.7,0,9.57,10.1,10.4,13.5,16.02
dividend payout ratio,Percentage of earnings paid out as dividends.,zvi,0,55.91,7.2,0,11.55,8.3,10.75,4.5,14.23
dollar-weighted rate of return,The internal rate of return on an investment.,zvi,0,63.36,6.4,0,7.21,4.9,7.98,5,13.2
doubling option,A sinking fund provision that may allow repurchase of twice the required number of bonds at the sinking fund call price.,zvi,0,67.08,9.1,0,10.04,11.5,9.19,12.5,12.21
DuPont system,Decomposition of a firm™s profitability measures into component ratios.,zvi,0,-5.35,16.2,0,20.91,16,16.36,6.5,16.93
dynamic hedging,Constant updating of hedge positions as market conditions change.,zvi,0,36.96,10.3,0,17.02,12.9,12.86,6.5,16.93
EAFE index,"The Europe, Australasia, Far East index, computed by Morgan Stanley, is a widely used index of non-U.S. stocks.",zvi,0,53.21,10.3,0,10.15,12.2,14.18,11,11.64
earnings management,The practice of using flexibility in accounting rules to manipulate the apparent profitability of the firm.,zvi,0,21.4,14.3,0,15.43,13.7,13.31,13,18.9
earnings retention ratio,The proportion of the firm™s  earnings reinvested in the business @and therefore not paid out as dividends@. Equals 1 minus the dividend payout ratio. Synonym for plowback ratio.,zvi,0,53.58,8.1,9.7,10.99,8.5,12.56,5,9.43
earnings yield,"The ratio of earnings to price, E/P.",zvi,0,89.75,2.5,0,2.44,2.3,13.01,2.5,2.8
economic earnings,The real flow of cash that a firm could pay out without impairing its productive capacity.,zvi,0,55.24,9.5,0,9.28,8.7,8.38,11,13.9
economic value added EVA,The spread between ROA and cost of capital multiplied by the capital invested in the firm. It measures the dollar value of the firm™s return in excess of its opportunity cost.,zvi,0,55.74,9.3,0,9.16,8.4,8.48,10.25,10.07
effective annual rate EAR,Interest rate annualized using compound rather than simple interest.,zvi,0,20.04,12.7,0,18.99,14.5,11.1,6.5,12.49
effective annual yield,Annualized interest rate on a  security computed using compound interest techniques.,zvi,0,-15.84,18.2,0,19.53,15.3,14.23,10.5,18.95
effective duration,Percentage change in bond price per change in the level of market interest rates.,zvi,0,74.19,6.4,0,9.91,8.5,9.97,8,11.31
efficient diversification,"The organizing principle of  modern portfolio theory, which describes how investors  can devise the best possible risk-return trade-off.",zvi,0,10.91,16.2,0,18.85,18.2,12.42,14,16.09
efficient frontier,Graph representing a set of portfolios that maximize expected return at each level of portfolio risk.,zvi,0,38.32,11.9,0,13.22,11.9,11.34,13,18.9
efficient frontier of risky assets,The portion of the mini-mum-variance frontier that lies above the global minimum-variance portfolio.,zvi,0,24.44,13.1,0,19.3,17,15.21,8.5,11.35
efficient market hypothesis EMH,"The prices of securi-ties fully reflect available information. Investors buying securities in an efficient market should expect to obtain an equilibrium rate of return. Weak-form EMH asserts that stock prices already reflect all information contained in the history of past prices. The semistrong-form hypothesis asserts that stock prices already reflect all publicly available information. The strong-form hypothesis asserts that stock prices reflect all relevant information, including insider information.",zvi,0,32.29,12.1,13,18.9,15.9,9.19,8.8,10.15
elasticity of an option,Percentage change in the value of an option accompanying a 1% change in the value of a stock.,zvi,0,61.67,9.1,0,6.26,7.4,8.04,11,11.64
electronic communication network ECN,"A computer-operated trading network for trading securities. Some ECNs are registered as formal stock exchanges, and others are  considered part of the over-the-counter market.",zvi,0,25.46,12.7,0,16.86,14.2,11.47,7.5,13.13
endowment funds,Organizations chartered to invest money for specific purposes.Final PDF to printer˙ 5,zvi,0,8.53,15.1,0,17.1,13.6,16.07,8,14.8
equity,Ownership share in a firm.,zvi,0,83.32,2.9,0,2.64,1.8,10.2,2.5,10
equivalent taxable yield,The pretax yield on a taxable bond providing an after-tax yield equal to the rate on a  tax-exempt municipal bond.,zvi,0,51.18,11.1,0,9.11,10.7,10.16,14,12
Eurodollars,Dollar-denominated deposits at foreign banks or foreign branches of American banks.,zvi,0,18.01,13.5,0,18.95,15.3,11.36,6.5,8.04
"Europe, Australasia, Far East EAFE index",A widely used index of non-U.S. stocks computed by MSCI.,zvi,0,78.25,4.8,0,6.18,5.7,16.76,5,8
American option,"European option A European option can be exercised only on the expiration date. Compare with an , which also can be exercised before its expiration date.",zvi,0,41.87,10.5,0,10.83,8.9,6.78,8.5,9.8
event study,Research methodology designed to measure the impact of an event of interest on stock returns.,zvi,0,47.79,10.3,0,12.29,10.9,11.75,8.5,11.33
event tree,Depicts all possible sequences of events.,zvi,0,56.93,6.8,0,12.98,9.8,11.83,3,2.4
excess return,Rate of return in excess of the risk-free rate.,zvi,0,87.72,3.3,0,4.78,3.5,7.59,3.5,3.6
exchange rate,Price of a unit of one country™s currency in terms of another country™s currency.,zvi,0,57.27,8.8,0,9.91,8.5,8.84,9,8.46
exchange rate risk,The uncertainty in dollar-denominated asset returns due to movements in the exchange rates between the dollar and foreign currencies.,zvi,0,26.81,14.2,0,17.23,16.6,11.23,12.5,13.92
exchange-traded funds ETFs,Variants of mutual funds that allow investors to trade portfolios of securities just as they do shares of stock.,zvi,0,60.65,9.5,0,11.08,11.4,10.4,12.5,13.92
exchanges,National or regional auction markets providing a facility for members to trade securities.,zvi,0,7.52,15.4,0,16.17,13.3,14,11.5,20.58
exercise or strike price,Price set for calling @buying@ an asset or putting @selling@ an asset.,zvi,0,76.22,5.6,0,7.93,7.7,8.18,5,4.8
expectations hypothesis of interest rates,Theory that  forward interest rates are unbiased estimates of expected future interest rates.,zvi,0,7.52,15.4,0,17.1,14,12.78,12.5,20.58
expected return,The probability-weighted average of the possible outcomes.Œbeta @or mean-beta@ relationship  Implication of the CAPM that security risk premiums @expected excess returns@ will be proportional to beta.,zvi,0,-14.14,21.7,0,20.02,23.1,14.64,24,22.71
expected shortfall ES,The expected loss on a security conditional on returns being in the left tail of the probability distribution.,zvi,0,27.83,13.9,0,12.06,11.9,9.79,14,18.31
factor beta,Sensitivity of security returns to the realization of a systematic factor. Also called,zvi,0,7.52,15.4,0,14.43,11.9,12.78,10.5,17.51
factor model,A way of decomposing the factors that  influence a security™s rate of return into common  @systematic@ and firm-specific influences.,zvi,0,1.43,17.8,0,15.66,15.8,12.89,15.5,20.23
factor portfolio,A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of 0 on any other factor.,zvi,0,57.61,10.7,0,6.21,9.3,9.75,14,14.25
fair game,An investment prospect that has a zero risk premium.,zvi,0,62.34,6.8,0,8.67,6.1,12.86,5.5,12.49
fair value accounting,Use of current values rather than  historic cost in the firm™s financial statements.,zvi,0,58.28,8.4,0,13.04,10.8,12.78,6.5,8.28
federal funds,Funds in a bank™s reserve account at the Federal Reserve Bank.,zvi,0,68.77,6.4,0,8.45,6.3,9.92,5.5,8.04
FIFO,The first-in first-out accounting method of inventory valuation.,zvi,0,29.52,11.1,0,19.5,16.2,11.93,6,18.2
firm-specific risk,"Nonmarket or  factors that can be eliminated by diversification. Also called unique risk,",zvi,0,31.04,10.5,0,12.76,9.4,12.46,3.75,11.83
first-pass regression,A time series regression to estimate the betas of securities or portfolios.,zvi,0,33.92,11.5,0,12.28,9.7,12.13,9,18.13
fiscal policy,The use of government spending and taxation for the specific purpose of stabilizing the economy.,zvi,0,30.87,12.7,0,13.45,11.8,10.7,12.5,16.67
fixed annuities,Annuity contracts in which the insurance company pays a fixed dollar amount of money per period.,zvi,0,46.78,10.7,0,11.42,10.4,11.34,12,13.9
fixed-charge coverage ratio,"Ratio of earnings to all fixed cash obligations, including lease payments and sinking fund payments.",zvi,0,56.25,9.1,0,14.61,13.1,13.85,8.5,11.33
fixed-income security,A security such as a bond that pays a specified cash flow over a specific period.,zvi,0,55.24,9.5,0,5.97,6,10.35,12,16.4
flight to quality,Describes the tendency of investors to require larger default premiums on investments under  worsening economic conditions.,zvi,0,4.47,16.6,0,20.88,18.1,15.29,14,21.4
floating-rate bond,A bond whose interest rate is reset  periodically according to a specified market rate.,zvi,0,23.43,13.5,0,11.94,10.1,11.1,11,17.03
forced conversion,Use of a firm™s call option on a callable convertible bond when the firm knows that bondholders will exercise their option to convert.,zvi,0,65.05,9.9,0,11.03,13,11.64,14.5,14.42
forecasting record,The historical record of the forecasting errors of a security analyst.,zvi,0,26.47,12.3,0,12.62,9.7,11.36,8.5,18.95
foreign exchange market,An informal network of  banks and brokers that allows customers to enter forward contracts to purchase or sell currencies in the future at a rate of exchange agreed upon now.,zvi,0,49.49,13.8,0,10.98,16.2,10.91,17,14.67
foreign exchange swap,An agreement to exchange  stipulated amounts of one currency for another at one or more future dates.,zvi,0,54.22,9.9,0,10.73,10.3,10.05,11.5,11.51
forward interest rate,Rate of interest for a future period that would equate the total return of a long-term bond with that of a strategy of rolling over shorter-term bonds.,zvi,0,60.99,11.5,0,9.23,13.9,10.82,17.5,15.24
framing,"Decisions are affected by how choices are described, for example, whether uncertainty is posed as Final PDF to printerˆ 6 potential gains from a low baseline level, or as losses from a higher baseline value.",zvi,0,35.95,16.9,0,11.33,19.3,13.04,22.5,19.71
fully diluted earnings per share,Earnings per share expressed as if all outstanding convertible securities and warrants have been exercised.,zvi,0,39.33,11.5,0,17.68,15.3,12.8,11.5,16.67
fundamental analysis,"Assessment of firm value that focuses on such determinants as earnings and dividends prospects, expectations for future interest rates, and risk evaluation.",zvi,0,23.77,15.4,0,17.52,18.5,14.06,18,21.53
fundamental risk,"Risk that even if an asset is mispriced, there is still no arbitrage opportunity, because the mispric-ing can widen before price eventually converges to intrinsic value.",zvi,0,36.63,14.6,0,14.22,17.7,11.61,18,16.55
funds of funds,Investment funds that invest in other funds rather than investing directly in securities such as stocks or bonds.,zvi,0,53.21,10.3,0,13.05,12.7,11.55,13,16.09
futures option,The right to enter a specified futures con-tract at a futures price equal to the stipulated exercise price.,zvi,0,53.21,10.3,0,10.79,11.1,9.79,12,13.87
futures price,The price at which a futures trader commits to make or take delivery of the underlying asset.,zvi,0,62.68,8.7,0,8.35,8.4,10.05,10.5,11.51
gamma,The curvature of an option pricing function @as a function of the value of the underlying asset@.,zvi,0,54.22,9.9,0,9.05,9.5,10.05,10.5,11.51
geometric average,The nth root of the product of n  numbers. It is used to measure the compound rate of return over a given sample period.,zvi,0,76.22,5.6,0,4.57,3.4,8.84,5.5,6.47
globalization,"Tendency toward a worldwide investment environment, and the integration of national capital markets.",zvi,0,-0.95,16.6,0,20.23,17,12.78,12.5,20.58
gross domestic product GDP,The market value of goods and services produced in an economy during a particular time period.,zvi,0,38.32,11.9,0,10.73,9.8,9.36,11,13.9
hedge ratio for futures,The number of contracts neces-sary to hedge a particular source of risk.,zvi,0,59.3,8,0,10.37,8.5,13.44,7,8.13
hedge ratio of an option,The shares of stocks required to hedge against the price risk of writing one option. Also called the option™s delta.,zvi,0,86.71,3.7,0,8.79,6.4,11.24,4,4
hedging,Investing in an asset or derivative security to  offset a specific source of risk.,zvi,0,31.89,12.3,0,9.91,8.5,13.35,11,17.03
hedging demands,"Demands for securities to hedge par-ticular sources of consumption risk, beyond the usual mean variance diversification motivation.",zvi,0,3.46,17,0,20.65,18.9,16.55,13.5,18.56
high water mark,The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.,zvi,0,61.67,9.1,0,10.15,10.3,10.67,12,13.87
high-frequency trading,A subset of algorithmic trading that relies on computer programs to make rapid trading decisions.,zvi,0,39.33,11.5,0,13.85,12.1,12.8,10.5,14
holding-period return,The rate of return over a given period.,zvi,0,71.82,5.2,0,2.86,1.4,6.01,4,8.2
home bias,The tendency of investors to allocate a greater share of their portfolios to domestic securities than would be the case under neutral diversification.,zvi,0,31.21,14.6,0,15.03,16.3,10.96,17.5,19.63
homogenous expectations,"The assumption that all inves-tors agree on the probability distribution of future returns,  so they all use the same input list.",zvi,0,41.7,12.7,0,11.72,13.3,10.69,13.5,14.11
horizon analysis,Forecasting the realized compound yield over various holding periods or investment horizons.,zvi,0,17,13.9,0,20.52,16.4,16.07,11,21.47
illiquidity,"Difficulty, cost, and/or delay in selling an asset on short notice without offering substantial price concessions.",zvi,0,29.86,13.1,0,16.88,15.7,11.34,12,16.4
illiquidity cost,Costs due to imperfect liquidity of some security.,zvi,0,29.52,11.1,0,10.8,7.9,11.93,6,18.2
illiquidity premium,Extra expected return as compensation for limited liquidity.,zvi,0,-12.79,17,0,18.05,13.8,11.93,7,23.2
immunization,A strategy that matches durations of assets and liabilities so as to make net worth unaffected by interest rate movements.,zvi,0,34.26,13.5,0,12.3,12.8,10.94,15,18
implied volatility,The standard deviation of stock returns that is consistent with an option™s market value.,zvi,0,48.81,9.9,0,13.22,11.1,11.1,8,11.31
in the money,In the money describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.,zvi,0,64.71,8,0,9.56,8.7,8.06,8.5,10
incentive fee,A fee charged by hedge funds equal to a share of any investment returns beyond a stipulated bench-mark performance.,zvi,0,60.65,9.5,0,11.72,12.1,12.06,12.5,13.92
income beneficiary,One who receives income from a trust.,zvi,0,89.75,2.5,0,4.94,2.9,6.24,2.5,2.8
income statement,A financial statement showing a firm™s revenues and expenses during a specified period.,zvi,0,24.44,13.1,0,14.83,12.2,15.21,10.5,17.51
index arbitrage,An investment strategy that exploits diver-gences between actual futures prices and their theoretically correct parity values to make a profit.,zvi,0,8.88,17,0,18.1,17.8,13.31,16,18
index fund,A mutual fund holding shares in proportion to their representation in a market index such as the S&P 500.,zvi,0,52.19,10.7,0,8.65,9.6,12.89,12.5,13.92
index model,A model of stock returns using a market index such as the S&P 500 to represent common or system-atic risk factors.Final PDF to printerˇ 7,zvi,0,46.1,13,0,8.54,12.4,15.61,15.5,11.6
index option,A call or put option based on a stock market index.,zvi,0,85.69,4,0,2.65,1.6,8.49,4.5,4.4
indifference curve,A curve connecting all portfolios with the same utility according to their means and standard deviations.,zvi,0,38.32,11.9,0,14.67,13.1,10.35,13,18.9
industry life cycle,Stages through which firms typically pass as they mature.,zvi,0,79.26,4.4,0,11.86,8.7,11.1,4.5,8.04
inflation,The rate at which the general level of prices for goods and services is rising.,zvi,0,81.63,5.6,0,6.89,6.5,6.49,7.5,6
information ratio,Ratio of alpha to the standard deviation of diversifiable risk.,zvi,0,27.49,11.9,0,11.98,9,13.61,6,12
initial public offering IPO,Stock issued to the public for the first time by a formerly privately owned company.,zvi,0,64.71,8,0,8.81,8.1,8.59,10.5,11.33
input list,"List of parameters such as expected returns,  variances, and covariances necessary to determine the  optimal risky portfolio.",zvi,0,11.92,15.8,0,17.92,16.7,13.77,15.5,23.27
inside information,"Nonpublic knowledge about a cor-poration possessed by corporate officers, major owners, or other individuals with privileged access to information about a firm.",zvi,0,6.84,17.8,0,18.33,19.3,14.06,18,21.53
insider trading,"Trading by officers, directors, major stockholders, or others who hold private inside information allowing them to benefit from buying or selling stock.",zvi,0,23.77,15.4,0,16.19,17.6,12.62,17,19.71
insurance principle,The law of averages. The average outcome for many independent trials of an experiment will approach the expected value of the experiment.,zvi,0,34.93,11.1,0,11.58,8.9,9.92,7.5,13.49
interest coverage ratio,Measure of financial leverage. Earnings before interest and taxes as a multiple of interest expense.,zvi,0,38.48,9.8,0,12.83,9.3,11.38,4.75,11
interest rate,The number of dollars earned per dollar invested per period.,zvi,0,52.87,8.4,0,10.24,7.6,12.03,6,12
interest rate parity relationship theorem,The rela-tion between spot and forward exchange rates and for-eign and domestic interest rates that rules out arbitrage opportunities.,zvi,0,35.27,13.1,0,17.23,16.8,12.06,14.5,16.02
interest rate swaps,Contracts between two parties to trade cash flows corresponding to different interest rates.,zvi,0,41.36,10.7,0,17.1,14,11.57,8.5,11.35
intermarket spread swap,"Switching from one segment of the bond market to another @from Treasuries to corporates, for example@.",zvi,0,55.24,9.5,0,12.53,12.2,10.35,11,11.4
international financial reporting standards IFRS,"Accounting standards used in many non-U.S. markets; compared to U.S. accounting standards, IFRS rely more on principles and less on rules.",zvi,0,58.62,10.3,0,13.11,15.5,12.95,13.5,12.21
intrinsic value of a firm,The present value of a firm™s expected future net cash flows discounted by the required rate of return.,zvi,0,61.67,9.1,0,9.8,10.1,10.67,11,11.64
intrinsic value of a share,The present value of expected future cash flows the firm will provide shareholders on a per share basis.,zvi,0,70.13,8,0,10.15,10.3,11.55,11,11.64
intrinsic value of an option,The value the option would have if it were about to expire.,zvi,0,84.68,4.4,0,4.57,3.4,6.86,5,4.8
inventory turnover ratio,Cost of goods sold as a multiple of average inventory.,zvi,0,52.87,8.4,0,6.76,4.8,8.87,7,16
investment,Commitment of current resources in the expectation of deriving greater resources in the future.,zvi,0,40.35,11.1,0,15.71,13.2,12.23,9,14.17
investment bankers,"Firms specializing in the sale of new securities to the public, typically by underwriting the issue.",zvi,0,29.86,13.1,0,12.53,11.6,10.35,12,16.4
investment company,Financial intermediaries that pool and invest the funds of individual investors in securities or other assets.,zvi,0,12.94,15.4,0,16.53,14.5,12.33,12,16.4
investment horizon,Time horizon for purposes of invest-ment decisions.,zvi,0,30.53,10.7,0,15.67,12.4,15.26,5.5,14.23
investment portfolio,Set of securities chosen by an investor.,zvi,0,55.91,7.2,0,7.37,5,8.5,3.5,8.51
investment-grade bond,Bond rated BBB and above or  Baa and above. Lower-rated bonds are classified as  speculative-grade or junk bonds.,zvi,0,53.88,8,0,9.94,7.7,10.22,5,8.04
issued shares,Shares that have been issued by the company.JJensen™s alpha The alpha of an investment.,zvi,0,57.27,8.8,0,11.94,10.5,11.1,8,8.46
junk bond,"A bond rated Ba or lower by Moody™s or  BB or lower by Standard & Poor™s, or an unrated bond.  Also called a speculative-grade bond.",zvi,0,47.12,12.7,0,7.43,11.4,12.06,6.25,12.93
kurtosis,Measure of the fatness of the tails of a probability distribution. Indicates probability of observing extreme high or low values.,zvi,0,27.49,11.9,0,12.56,9.5,10.45,6.5,12
latency,"The time it takes to accept, process, and deliver a trading order.",zvi,0,76.22,5.6,0,6.95,6.1,9.5,6,8.13
Law of One Price,The rule stipulating that equivalent securities or bundles of securities must sell at equal prices to preclude arbitrage opportunities.,zvi,0,18.35,15.4,0,18.16,17.1,11.23,15.5,18.13
leading economic indicators,Economic series that tend to rise or fall in advance of the rest of the economy.,zvi,0,72.16,7.2,0,5.62,5.7,9.36,9,11.4
leverage ratio,Ratio of debt to total capitalization of a firm.,zvi,0,53.88,8,0,6.06,4,12.86,4.5,8.04
LIFO,The last-in first-out accounting method of valuing inventories.,zvi,0,46.44,8.8,0,18.81,15.5,11.93,5,13.2
limit order,An order specifying a price at which an investor is willing to buy or sell a security.,zvi,0,62.68,8.7,0,5.97,6.5,7.27,10.5,11.51
liquidation value,Net amount that could be realized by selling the assets of a firm after paying the debt.,zvi,0,71.14,7.6,0,6.67,7,10.05,8.5,9.15
liquidity preference theory,Theory that investors demand a risk premium on long-term bonds. Implies that the forward rate generally will exceed the expected future interest rate.Final PDF to printer˘ 8,zvi,0,49.31,9.7,0,13.04,10.9,13.66,8.75,12.81
liquidity premium,Forward rate minus expected future short interest rate.,zvi,0,37.98,10,0,14.46,10.8,11.93,5,13.2
load,Sales charge on the purchase of some mutual funds.,zvi,0,87.72,3.3,0,7.39,5.1,11.1,4.5,8.04
load fund,"A mutual fund with a sales commission, or load.",zvi,0,79.26,4.4,0,4.78,3.5,11.1,5.5,12.49
lock-up period,Period in which investors cannot redeem investments in the hedge fund.,zvi,0,60.31,7.6,0,12.62,9.7,12.79,6.5,11.67
log-normal distribution,The probability distribution that characterizes a variable whose log has a normal @bell-shaped@ distribution.,zvi,0,14.97,14.7,0,20.23,17.9,11.1,11,14.17
London Interbank Offered Rate LIBOR,Lending rate among banks in the London market.,zvi,0,80.28,4.1,0,7.9,5.6,9.95,3,3.2
long position,The futures trader who commits to purchas-ing the underlying asset.,zvi,0,35.95,10.7,0,13.72,10.9,15.19,6,8
long position hedge,Hedging the future cost of a purchase by taking a long futures position to protect against changes in the price of the asset.,zvi,0,65.05,9.9,0,8.71,11.2,9.58,12.5,10.94
lower partial standard deviation LPSD,"Standard deviation computed using only the portion of the return distribution below a threshold such as the risk-free rate or the sample average.MMacaulay™s duration Effective maturity of bond,  equal to weighted average of the times until each payment, with weights proportional to the present value of  the payment.",zvi,0,5.84,24.4,0,15.39,28.9,12.6,33,25.87
"maintenance, or variation, margin",An established value below which a trader™s margin may not fall. Reaching the maintenance margin triggers a margin call.,zvi,0,61.83,7,0,11.45,8.6,9.93,4.75,8.01
mark-to-market accounting,See fair value accounting.,zvi,0,50.5,7.2,0,8.7,7.7,7.78,2,11.6
market model,Another version of the index model that breaks down return uncertainty into systematic and  nonsystematic components.,zvi,0,-3.99,17.8,0,18.67,16.3,12.33,13,16.4
market order,A buy or sell order to be executed immedi-ately at current market prices.,zvi,0,41.36,10.7,0,8.16,7.2,10.35,7.5,11.35
market portfolio,The portfolio encompassing all assets in which each asset is held in proportion to its market value.,zvi,0,54.22,9.9,0,10.73,10.3,9.12,11.5,13.86
market price of risk,"A measure of the extra return, or risk premium, that investors demand to bear risk. The ratio of the risk premium of the market portfolio to the variance of its return.",zvi,0,64.2,8.2,0,7.48,7.3,7.97,8.25,8.78
market risk,Risk factors common to the whole economy; also called systematic or,zvi,0,51.85,8.8,0,11.06,8.5,12.79,6.5,11.67
market segmentation,The theory that long- and short-maturity bonds are traded in essentially distinct or seg-mented markets and that prices in one market do not affect those in the other.,zvi,0,43.06,14.2,0,11.2,16.1,11.23,18,15.49
market timer,An investor who speculates on broad market moves rather than on specific securities.,zvi,0,49.82,9.5,0,13.5,11.2,10.35,8.5,14.43
market timing,Asset allocation in which the investment in the market is increased if one forecasts that the market will outperform T-bills.,zvi,0,51.18,11.1,0,12.88,13.5,10.94,13,14
market-neutral bet,A strategy designed to exploit relative mispricing within a market but which is hedged to avoid  taking a stance on the direction of the broad market.,zvi,0,45.09,13.4,0,10.45,14,10.39,17,15.02
market-value-weighted index,"An index of the value of a portfolio of securities computed by calculating a weighted average of the returns of each security in the portfolio, with weights proportional to outstanding market value.marketŒbook-value @P/B@ ratio Ratio of price per share to book value per share.",zvi,0,9.9,22.8,0,13.54,25.6,11.92,32,25.78
marking to market,Describes the daily settlement of  obligations on futures positions.,zvi,0,20.04,12.7,0,18.3,14,11.1,6.5,12.49
mean-variance M-V criterion,The selection of portfolios based on the means and variances of their returns. The choice of the highest expected return portfolio for a given level of variance or the lowest variance portfolio for a given expected return.,zvi,0,52.7,10.5,0,11.55,11.5,8.82,12.25,11.72
mean-variance analysis,Evaluation of risky prospects based on the expected value and variance of possible outcomes.,zvi,0,48.81,9.9,0,14.43,12.1,12.23,9,11.31
mental accounting,Individuals mentally segregate assets into independent accounts rather than viewing them as part of a unified portfolio.,zvi,0,11.92,15.8,0,17.57,15.9,12.84,13.5,18.56
minimum-variance frontier,Graph of the lowest possible portfolio standard deviation corresponding to each value of portfolio expected return.,zvi,0,12.94,15.4,0,18.33,16,11.34,14,16.4
minimum-variance portfolio,The portfolio of risky assets with lowest possible variance.,zvi,0,45.42,9.2,0,13.83,10.3,12.86,5.5,8.04
modern portfolio theory MPT,Principles underlying analysis and evaluation of rational portfolio choices based on riskŒreturn trade-offs and efficient diversification.,zvi,0,-20.91,20.2,0,26.27,22.8,16.27,16,26.4
modified duration,Macaulay™s duration divided by 1 + yield to maturity. Measures interest rate sensitivity of bonds.,zvi,0,22.07,11.9,0,13.64,10.3,16.39,5.25,17.09
momentum effect,The tendency of poorly performing stocks and well-performing stocks in one period to continue that abnormal performance in following periods.,zvi,0,17.34,15.8,0,17.52,17.3,11.73,19,22
monetary policy,Actions taken by the Board of Governors of the Federal Reserve System to influence the money sup-ply or interest rates.,zvi,0,42.72,12.3,0,11.14,12.1,12.52,14,16
mortality tables,Tables of probability that individuals of various ages will die within a year.,zvi,0,32.9,11.9,0,10.83,9,11.57,8.5,14.43
mortgage-backed security,"Ownership claim in a pool of mortgages or an obligation that is secured by such a pool. Also called a pass-through,because payments are passed along from the mortgage originator to the purchaser of the .",zvi,0,62.68,8.7,0,10.55,10.5,9.59,11.25,11.51
multifactor CAPM,Generalization of the basic CAPM that accounts for extra-market hedging demands.Final PDF to printer 9,zvi,0,30.87,12.7,0,15.36,13.7,14.91,10.5,8.67
multifactor model,Model of security returns positing that returns respond to several systematic risk factors as well as firm-specific influences.,zvi,0,10.91,16.2,0,17.22,16.3,14.18,14,16.09
municipal bonds,Tax-exempt bonds issued by state and local governments. General obligation bonds are backed by the general taxing power of the issuer. Revenue bonds are backed by the proceeds from the project or agency they are issued to finance.,zvi,0,67.04,7.1,10.5,10.66,8.8,10.08,7,7.19
mutual fund theorem,"A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index mutual fund.",zvi,0,40.69,13.1,0,13.58,15.2,13.34,15,16.07
NAICS codes,North American Industrial Classifica-tion System codes that use numerical values to identify industries.,zvi,0,-9.41,17.8,0,21.97,18.4,15.21,12.5,20.58
naked option writing,Writing an option without an offset-ting stock position.,zvi,0,37.98,10,0,14.46,11.4,11.93,5,8.2
NASDAQ Stock Market,The computer-linked price quo-tation and trade execution system on which thousands of securities trade.,zvi,0,31.89,12.3,0,18.15,15.9,13.35,11,14.17
neglected-firm effect,That investments in stock of less well-known firms have generated abnormal returns.,zvi,0,42.38,10.3,0,15.65,12.8,10.81,8,14.8
net asset value NAV,Assets minus liabilities expressed on a per-share basis.,zvi,0,21.06,12.3,0,14.46,11.4,15.88,4,8.2
nominal interest rate,The interest rate in terms of nominal @not adjusted for purchasing power@ dollars.,zvi,0,41.36,10.7,0,11.7,10.4,11.57,10.5,17.51
nondirectional strategy,A position designed to exploit temporary misalignments in relative pricing. Typically involves a long position in one security hedged with a short position in a related security.,zvi,0,23.93,13.3,0,14.38,11.8,11.32,11.75,15.77
nondiversifiable risk,Risk factors common to the whole economy; also called,zvi,0,62.34,6.8,0,9.31,6.6,12.86,4.5,8.04
nonsystematic risk,"Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk,",zvi,0,30.02,10.9,0,15.15,11.5,13.48,4.75,13.67
normal distribution,Bell-shaped probability distribution that characterizes many natural phenomena.,zvi,0,-55.09,22.9,0,31.1,25,15.88,8,28.2
notional principal,Principal amount used to calculate swap payments.,zvi,0,55.91,7.2,0,14.86,11,13.01,4.5,14.23
on the run,"Recently issued bond, selling at or near par value.",zvi,0,62.34,6.8,0,7.39,5.6,12.86,4.5,8.04
on-the-run yield curve,Relationship between yield to  maturity and time to maturity for newly issued bonds selling at or near par value.,zvi,0,35.27,13.1,0,11.08,11.4,11.23,12.5,11.81
open interest,The number of futures contracts outstanding.,zvi,0,48.47,8,0,15.88,12.2,11.83,3,9.07
open-end mutual fund,A fund that issues or redeems its own shares at net asset value @NAV@.,zvi,0,82.65,5.2,0,4.52,4.7,11.1,6,5.6
optimal risky portfolio,An investor™s best combination of risky assets; the combination that maximizes the Sharpe ratio.,zvi,0,40.35,11.1,0,15.71,13.5,13.35,9,11.31
option elasticity,The percentage increase in an option™s value given a 1% change in the value of the underlying security.,zvi,0,44.75,11.5,0,9.51,10.1,10.67,12,13.87
original issue discount bond,A bond issued with a low coupon rate that sells at a discount from par value.,zvi,0,89.08,4.8,0,4.52,4.8,10.35,7,6.4
out of the money,Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.,zvi,0,51.85,8.8,0,12.91,10.6,9.92,6.5,9.85
outstanding shares,Shares that have been issued by the company and are held by investors.,zvi,0,83.66,4.8,0,7.24,6.1,7.93,6.5,5.2
over-the-counter OTC market,An informal network of brokers and dealers where securities can be traded @not a formal exchange@.,zvi,0,46.78,10.7,0,11.42,11,11.34,9,11.4
P/E effect,That low P/E stocks have exhibited higher aver-age risk-adjusted returns than high P/E stocks.,zvi,0,57.27,8.8,0,13.62,12.8,14.48,9,11.31
pairs trading,A form of statistical arbitrage in which stocks are paired up based on underlying similarities and long/short positions are established to exploit any relative mispricing between each pair.,zvi,0,26.14,16.6,0,16.13,19.8,11.79,22,22.63
par value,The face value of the bond. The payment to the bondholder on the bond™s maturity date.,zvi,0,80.28,4.1,0,5.35,3.5,7.98,4,8.2
pass-through security,Pools of loans @such as home  mortgage loans@ sold in one package. Owners of pass-throughs receive all principal and interest payments made by the borrowers.,zvi,0,67.25,7,0,11.3,9.7,9.94,6.75,9.8
passive investment strategy,Investing in a well-diversified portfolio or market index without attempting to search out mispriced securities.,zvi,0,13.95,15,0,19.25,16.8,11.75,12.5,19.33
passive management,"Buying a well-diversified portfolio, often a broad-based market index, without attempting to identify mispriced securities.",zvi,0,-2.98,17.4,0,22.32,20.3,13.85,12.5,19.33
passive market-index portfolio,A market-index portfolio that can be formed without conducting security analysis.,zvi,0,26.47,12.3,0,17.9,14.4,12.79,8.5,18.95
passive strategy,A portfolio decision that avoids any direct or indirect security analysis. See,zvi,0,25.46,12.7,0,13.73,10.9,12.13,11,21.47
peak,The transition from the end of an expansion to the start of a contraction.,zvi,0,74.19,6.4,0,7.01,6.1,7.71,9,14.17
personal trust,An interest in an asset held by a trustee for the benefit of another person.,zvi,0,64.71,8,0,5.73,5.5,8.59,10.5,11.33
plowback ratio,The proportion of the firm™s earnings reinvested in the business @and therefore not paid out as dividends@. The  equals 1 minus the dividend payout ratio.,zvi,0,58.79,8.2,0,10.83,9.1,12.47,7.25,11.4
political risk,"Possibility of the expropriation of assets, changes in tax policy, restrictions on the exchange of foreign currency for domestic currency, or other changes in the  business climate of a country.Final PDF to printer 10",zvi,0,11.59,20.1,0,13.82,20.9,11.82,25,20.66
portable alpha,"A strategy in which you invest in positive alpha positions, then hedge the systematic risk of that invest-ment, and, finally, establish market exposure where you want it by using passive indexes.",zvi,0,23.09,17.7,0,13.07,19.1,12.31,24.5,21.43
portfolio insurance,The practice of using options or dynamic hedge strategies to provide protection against investment losses while maintaining upside potential.,zvi,0,26.81,14.2,0,19.96,18.5,14.55,14.5,18.13
portfolio management,"Process of combining securities in a portfolio tailored to the investor™s preferences and needs, monitoring that portfolio, and evaluating its performance.",zvi,0,16.32,16.2,0,19.2,19.4,13.7,18.5,21.73
portfolio opportunity set,The expected returnŒstandard deviation pairs of all portfolios that can be constructed from a given set of assets.,zvi,0,36.28,12.7,0,13.34,13,10.67,14,18.31
posterior distribution,Probability distribution for a variable after adjustment for empirical evidence on its likely value.,zvi,0,-1.96,17,0,17.74,14.8,11.1,12,19.89
preferred habitat theory,Holds that investors prefer  specific maturity ranges but can be induced to switch if  risk premiums are sufficient.,zvi,0,36.28,12.7,0,13.34,13,13.3,13,16.09
premium options,The purchase price of an option.,zvi,0,90.77,2.1,0,4.28,2.8,9.2,2,2.4
premium bond,A bond selling above par value.,zvi,0,90.77,2.1,0,3.35,2,11.83,2,2.4
present value of growth opportunities PVGO,Net present value of a firm™s future investments.,zvi,0,63.36,6.4,0,10.11,7.3,11.93,4,8.2
price value of a basis point,The change in the value of a fixed-income portfolio resulting from a 1 basis point change in the yield to maturity.,zvi,0,58.62,10.3,0,8.41,10.4,9.94,14.5,14.11
price-weighted average,Weighted average with weights proportional to security prices rather than total capitalization.priceŒearnings @P/E@ ratio The ratio of a stock™s price to its earnings per share. Also referred to as the P/E multiple.priceŒearnings multiple Price per share divided by earn-ings per share.,zvi,0,42.21,12.5,0,16.24,17.1,11.97,13.75,14.05
primary market,The market in which new issues of  securities are offered to the public.,zvi,0,58.28,8.4,0,7.7,6.5,7.93,6.5,8.28
"primitive security, derivative security",A primitive secu-rity is an instrument such as a stock or bond for which cash flows depend only on the financial status of its issuer.,zvi,0,54.56,11.9,0,8.07,11.8,10.56,16.5,14.8
prior distribution,Probability distribution for a variable before adjusting for empirical evidence on its likely value.,zvi,0,-1.96,17,0,17.74,14.8,11.1,12,19.89
private placement,Primary offering in which shares are sold directly to a small group of institutional or wealthy investors.,zvi,0,54.22,9.9,0,12.82,12,10.98,12.5,16.21
profit margin,Operating profits per dollar of sales; also called return on sales.,zvi,0,60.31,7.6,0,10.54,8.5,11.36,5.5,8.04
program trading,"Coordinated buy orders and sell orders of entire portfolios, usually with the aid of computers, often to achieve index arbitrage objectives.",zvi,0,24.78,15,0,15.03,16,12.2,16.5,19.83
prospect theory,Behavioral @as opposed to rational@ model of investor utility. Investor utility depends on changes in wealth rather than levels of wealth.,zvi,0,52.36,8.6,0,12.73,10.3,10.92,6.25,9.91
protective covenant,"A provision specifying requirements of collateral, sinking fund, dividend policy, etc., designed to protect the interests of bondholders.",zvi,0,2.44,17.4,0,19.14,19,15.06,17,24.98
protective put,Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put™s exercise price.,zvi,0,65.05,9.9,0,9.23,11.6,10.27,13.5,12.68
proxy,An instrument empowering an agent to vote in the name of the shareholder.,zvi,0,66.74,7.2,0,8.63,7.2,9.14,8.5,14.43
prudent investor rule,An investment manager must act in accord with the actions of a hypothetical prudent investor.,zvi,0,39.33,11.5,0,12.29,10.9,10.7,10.5,11.33
"public offering, private placement",A public offering  consists of securities sold in the primary market to the  general public; a,zvi,0,29.86,13.1,0,9.97,9.2,8.38,12,13.9
pure plays,"Bets on particular mispricing across two or more securities, with extraneous sources of risk such as  general market exposure hedged away.",zvi,0,33.24,13.8,0,14.5,15.3,11.45,16.5,17.92
pure yield curve,The relationship between yield to  maturity and time to maturity for zero-coupon bonds.,zvi,0,24.44,13.1,0,13.96,11.9,11.57,10.5,11.35
pure yield pickup swap,"Moving to higher-yield, longer-term bonds to capture the liquidity premium.",zvi,0,35.95,10.7,0,17.2,14.7,15.19,6,12
put bond,A bond that the holder may choose either to exchange for par value at some date or to extend for a given number of years.,zvi,0,71.48,9.5,0,5.29,9.3,7.4,12.5,10
put-call parity theorem,An equation representing the proper relation between put and call prices. Violation of  parity implies the existence of arbitrage opportunities.,zvi,0,10.56,14.3,0,16.62,12.8,12.03,7.5,18
put/call ratio,Ratio of put options to call options outstand-ing on a stock.,zvi,0,68.77,6.4,0,7.35,5.9,9.92,5.5,4.4
quality of earnings,The realism and conservatism of the earnings number and the extent to which we might expect the reported level of earnings to be sustained.,zvi,0,55.58,11.5,0,10.8,13.3,8.77,15,14.6
quick ratio,A measure of liquidity similar to the current ratio except for exclusion of inventories. It equals cash plus receivables divided by current liabilities.,zvi,0,25.96,12.5,0,13.84,10.9,11.76,8.25,16.77
random walk,Describes the notion that stock price changes are random and unpredictable.Final PDF to printerfifi 11,zvi,0,47.79,10.3,0,15.77,13.7,13.85,8.5,11.33
rate anticipation swap,A switch made between bonds of different durations in response to forecasts of interest rates.,zvi,0,56.25,9.1,0,12.69,11.2,10.7,10.5,11.33
real interest rate,The excess of the interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.,zvi,0,61.33,7.2,0,9.95,7.4,9.66,6,12
realized compound return,Compound rate of return assuming that coupon payments are reinvested until maturity.,zvi,0,33.92,11.5,0,16.63,13.2,12.13,8,14.8
rebalancing,Realigning the proportions of assets in a  portfolio as needed.,zvi,0,35.95,10.7,0,11.4,8.5,12.03,7,16
registered bond,"A bond whose issuer records ownership and interest payments. Differs from a bearer bond, which is traded without record of ownership and whose possession is its only evidence of ownership.",zvi,0,56.25,9.1,0,12.29,11,10.17,10.5,11.33
regression equation,An equation that describes the aver-age relationship between a dependent variable and one or more explanatory variables.,zvi,0,28.84,13.5,0,17.22,15.9,11.91,12.5,13.86
regret avoidance,Notion from behavioral finance that individuals who make decisions that turn out badly will have more regret when that decision was more unconventional.,zvi,0,31.21,14.6,0,15.55,16.7,10.27,16.5,17.9
reinvestment rate risk,The uncertainty surrounding the cumulative future value of reinvested bond coupon payments.,zvi,0,17,13.9,0,20,16,14.76,9,18.13
REIT,"Real estate investment trust, which is similar to a closed-end mutual fund. s invest in real estate or loans secured by real estate and issue shares in such investments.",zvi,0,42.04,14.6,0,10.69,16,12.15,18.5,17.12
relative strength,The extent to which a security has out-performed or underperformed either the market as a whole or its particular industry.,zvi,0,34.26,13.5,0,12.3,13.1,9.37,15,16
remainderman,One who receives the principal of a trust when it is dissolved.,zvi,0,84.68,4.4,0,6.48,5,8.18,6,8.13
replacement cost,Cost to replace a firm™s assets. Also called reproduction cost.,zvi,0,57.94,6.4,0,8.44,6.5,13.36,2,6
representativeness bias,The tendency to believe that a small sample is reliably representative of a broad population and therefore to infer patterns too quickly.,zvi,0,32.22,14.2,0,13.05,14.4,10.47,15,16.07
repurchase agreements repos,"Short-term, often over-night, sales of securities with an agreement to repurchase them at a slightly higher price. A reverse repo is a purchase with an agreement to resell at a specified price on a future date.",zvi,0,61.67,9.1,0,9.63,10.5,9.79,10.5,10.53
residual claim,Refers to the fact that shareholders are at the bottom of the list of claimants to assets of a corporation in the event of failure or bankruptcy.,zvi,0,60.99,11.5,0,8.36,12.8,9.65,16.5,15.24
residual income,Another term for economic value added @EVA@.,zvi,0,55.91,7.2,0,9.06,7.6,10.75,4.5,8.51
residuals,Parts of stock returns not explained by the explanatory variable @the market-index return@. They mea-sure the impact of firm-specific events during a particular period.,zvi,0,42.38,10.3,0,15.18,13,12.78,7,11.47
resistance level,A price level above which it is supposedly difficult for a stock or stock index to rise.,zvi,0,71.14,7.6,0,6.67,7,7.27,10.5,11.51
return on assets ROA,A profitability ratio; earnings before interest and taxes divided by total assets.,zvi,0,17,13.9,0,15.18,12.5,14.76,8,14.8
return on capital ROC,EBIT divided by long-term capital.,zvi,0,49.48,7.6,0,10.76,9.3,10.2,3.5,10
return on equity ROE,Ratio of net profits to common equity.,zvi,0,55.91,7.2,0,5.75,3.6,13.01,3.5,8.51
return on sales ROS,Operating profits per dollar of sales; also called,zvi,0,46.44,8.8,0,10.8,7.9,13.9,4,8.2
reversal effect,The tendency of poorly performing stocks and well-performing stocks in one period to experience reversals in following periods.,zvi,0,19.37,15,0,17.22,16.3,11.55,17,20.53
reversing trade,Entering the opposite side of a currently held futures position to close out the position.,zvi,0,47.79,10.3,0,11.13,9.9,9.64,12.5,16.67
reward-to-volatility or Sharpe ratio,Ratio of excess return to portfolio standard deviation.,zvi,0,21.06,12.3,0,14.46,10.8,13.9,5,13.2
riding the yield curve,Buying long-term bonds in anticipa-tion of capital gains as yields fall with the declining maturity of the bonds.,zvi,0,44.75,11.5,0,12.41,12.7,11.55,13,13.87
risk arbitrage,"Speculation on perceived security mispric-ing, often in connection with merger and acquisition targets.",zvi,0,-0.95,16.6,0,21.1,18,15.21,11.5,17.51
risk averse,An investor who will consider risky portfo-lios only if they provide compensation for risk via a risk premium.,zvi,0,44.75,11.5,0,11.77,11.9,13.3,13,13.87
risk lover,An investor who is willing to accept lower expected returns on prospects with higher amounts of risk.,zvi,0,62.68,8.7,0,11.08,10.6,11.91,8.5,9.15
risk neutral,An investor who finds the level of risk irrelevant and considers only the expected return of risk prospects.,zvi,0,53.21,10.3,0,11.42,11.4,10.67,12,13.87
risk pooling,"Adding uncorrelated, risky investments to the portfolio.",zvi,0,22.07,11.9,0,19.84,15.7,15.26,5.5,19.94
risk premium,An expected return in excess of that on risk-free securities. The premium provides compensation for the risk of an investment.,zvi,0,44.41,9.6,0,11.4,8.8,10.45,6.5,14
risk sharing,Spreading risk across many investors so that each investor bears only a fraction of the total risk.,zvi,0,71.14,7.6,0,10.38,10.1,10.98,7.5,6.8
risk-free asset,An asset with a certain rate of return; often taken to be short-term T-bills.,zvi,0,74.19,6.4,0,7.01,7.1,7.71,6,5.6
risk-free rate,"The interest rate that can be earned with  certainty, commonly taken to be the rate on short-term  Treasury bills.riskŒreturn trade-off Assets with higher expected return entail greater risk.",zvi,0,34.6,15.4,0,15.55,19.8,12.36,19,16.91
risky asset,An asset with an uncertain rate of return.,zvi,0,71.82,5.2,0,5,3.2,7.98,4,8.2
scatter diagram,Plot of returns of one security versus returns of another security. Each point represents one pair of returns for a given holding period.,zvi,0,42.88,10.1,0,10.01,7.9,9.01,7.25,9.82
seasoned new issue,Stock issued by companies that already have stock on the market.,zvi,0,68.77,6.4,0,9.49,7.2,7.05,5.5,8.04
second-pass regression,A cross-sectional regression of portfolio returns on betas. The estimated slope is the Final PDF to printerfi˚ 12 measurement of the reward for bearing systematic risk  during the period.,zvi,0,31.38,12.5,0,13.1,11.5,13.07,11.25,16.83
secondary market,Already existing securities are bought and sold on the exchanges or in the OTC market.,zvi,0,64.71,8,0,9.56,8.7,8.59,8.5,11.33
sector rotation,An investment strategy which entails  shifting the portfolio into industry sectors that are forecast to outperform others based on macroeconomic forecasts.,zvi,0,16.32,16.2,0,19.43,19.1,14.45,16.5,19.83
securitization,"Pooling loans for various purposes into  standardized securities backed by those loans, which can then be traded like any other security.",zvi,0,33.24,13.8,0,14.21,15.1,11.45,15.5,17.92
security analysis,Determining correct value of a security in the marketplace.,zvi,0,20.04,12.7,0,13.19,9.8,9.35,6.5,16.93
security characteristic line SCL,A plot of the excess return on a security over the risk-free rate as a function of the excess return on the market.,zvi,0,65.05,9.9,0,5.98,9.1,8.21,12.5,10.94
security market line SML,Graphical representation of the expected returnŒbeta relationship.,zvi,0,-54.08,22.5,0,28.95,22.4,15.26,7.5,31.37
security selection,Choice of specific securities within a given asset class.,zvi,0,36.96,10.3,0,11.86,8.7,11.1,5.5,12.49
semistrong-form EMH,See efficient market hypothesis.,zvi,0,-8.73,15.5,0,17.4,14.7,11.73,3,21.6
separation property,"The property that portfolio choice can be separated into two independent tasks: @1@ determination of the optimal risky portfolio, which is a purely technical problem, and @2@ the personal choice of the best mix of the risky portfolio and the risk-free asset.",zvi,0,20.39,20.8,0,12.32,23.9,11.73,31,24.42
shelf registration,Advance registration of securities with the SEC for sale up to 2 years following initial registration.,zvi,0,38.32,11.9,0,13.63,12.2,11.34,12,11.4
short position,The futures trader committing to deliver the underlying asset.,zvi,0,20.04,12.7,0,15.11,11.3,14.61,6.5,16.93
short rate,A one-period interest rate.,zvi,0,33.58,9.6,0,8.7,8.8,11.73,3,21.6
short sale,The sale of shares not owned by the investor but borrowed through a broker and later repurchased to replace the loan. Profit is earned if the initial sale is at a higher price than the repurchase price.,zvi,0,78.08,7,0,8.41,9,10.1,10.25,9.56
single-factor model,A model of security returns that decomposes the sources of return variability into one sys-tematic economywide factor and firm-specific factors.,zvi,0,0.42,18.2,0,18.1,18,14.89,16,20
single-index model,"A model of stock returns that decom-poses influences on returns into a systematic factor, as measured by the return on a broad market index, and firm-specific factors.",zvi,0,27.15,16.2,0,12.25,16.7,11.99,17.5,15.24
single-stock futures,Futures contracts on single stocks rather than an index.,zvi,0,79.26,4.4,0,11.22,8.2,11.1,3.5,3.6
sinking fund,A bond indenture that calls for the issuer to periodically repurchase some proportion of the outstanding bonds prior to maturity.,zvi,0,25.8,14.6,0,14.33,14.5,13.31,16,20
skew,Measure of the asymmetry of a probability distribution.,zvi,0,4.14,14.7,0,14.46,10.8,9.95,6,18.2
small-firm effect,That investments in stocks of small firms appear to have earned abnormal returns.,zvi,0,66.74,7.2,0,12.17,10.1,11.57,7.5,11.35
soft dollars,The value of research services that brokerage houses supply to investment managers fifree of chargefl in exchange for the investment managers™ business.,zvi,0,40.69,13.1,0,16.48,17.2,11.19,15,12.44
Sortino ratio,Excess return divided by lower partial  standard deviation.,zvi,0,-4.33,15.9,0,16.6,12.6,15.88,5,13.2
specialist,A trader who makes a market in the shares of one or more firms and who maintains a fifair and orderly marketfl by dealing personally in the stock.,zvi,0,59.98,11.8,0,7.03,12.3,10.66,16,14.06
speculation,Undertaking a risky investment with the objective of earning a greater profit than an investment in a risk-free alternative @a risk premium@.,zvi,0,32.22,14.2,0,13.29,15.2,11.9,17,17.89
speculative-grade bond,"A bond rated Ba or lower by Moody™s or BB or lower by Standard & Poor™s , or an unrated bond. Also called a junk bond.",zvi,0,76.22,5.6,0,3.35,2.8,10.81,6,6.47
spot-futures parity theorem,Describes the theoretically correct relationship between spot and futures prices.  Violation of the parity relationship gives rise to arbitrage opportunities. Also called the cost-of-carry relationship.,zvi,0,-0.44,16.4,0,21.74,18.2,11.2,6.166666667,14.6
spread futures,"Taking a long position in a futures  contract of one maturity and a short position in a contract  of different maturity, both on the same underlying asset.",zvi,0,27.15,16.2,0,9.87,14.2,8.48,19.5,15.24
spread options,A combination of two or more call options or put options on the same stock with differing  exercise prices or times to expiration. A money spread refers to a spread with different exercise prices; a time spread refers to differing expiration dates.,zvi,0,58.62,10.3,0,10.73,12.1,8.06,14.5,12.21
statement of cash flows,A financial statement showing a firm™s cash receipts and cash payments during a specified period.,zvi,0,39.33,11.5,0,13.85,12.1,13.85,10.5,14
statistical arbitrage,Use of quantitative systems to uncover many perceived misalignments in relative pricing and ensure profit by diversifying across all of these small bets.,zvi,0,31.21,14.6,0,15.79,16.9,12.33,16.5,17.9
stock exchanges,Secondary markets where already-issued securities are bought and sold by members.,zvi,0,51.85,8.8,0,17.9,14.4,11.36,6.5,8.04
stock selection,An active portfolio management technique that focuses on advantageous selection of particular stocks rather than on broad asset allocation choices.,zvi,0,8.88,17,0,19.55,18.7,14.1,17,22
stock split,"Issue by a corporation of a given number of shares in exchange for the current number of shares held by stockholders. Splits may go in either direction, either increasing or decreasing the number of shares outstanding. A reverse split decreases the number outstanding.",zvi,0,48.5,10,12.5,12.06,10.5,8.75,8.833333333,11.3
stop-loss order,A sell order to be executed if the price of the stock falls below a stipulated level.,zvi,0,62.68,8.7,0,5.62,6.2,7.27,10.5,11.51
straddle,"A combination of buying both a call and a put on the same asset, each with the same exercise price and expi-ration date. The purpose is to profit from expected volatility.",zvi,0,64.2,8.2,0,8.06,7.8,9.5,10.25,11.36
straight bond,A bond with no option features such as  callability or convertibility.Final PDF to printerfi˛ 13,zvi,0,30.87,12.7,0,13.04,11.5,13.85,10.5,14
street name,Describes securities held by a broker on behalf of a client but registered in the name of the firm.,zvi,0,69.11,8.3,0,7.14,8.1,10.4,11.5,11.81
strike price,See exercise price.,zvi,0,59.97,5.6,0,5.35,6.8,9.05,1.5,14.53
"strip, strap","Variants of a straddle. A strip is two puts and one call on a stock; a strap is two calls and one put, both with the same exercise price and expiration date.",zvi,0,89.08,4.8,0,4.52,5.1,7.39,8,8.9
stripped of coupons,Describes the practice of some invest-ment banks that create fisyntheticfl zero-coupon bonds by selling the individual payments made by a coupon-paying Treasury bond.,zvi,0,31.21,14.6,0,17.82,19.1,15.76,16.5,12.68
strong-form EMH,See efficient market hypothesis.,zvi,0,-8.73,15.5,0,17.4,14.7,11.73,3,21.6
subordination clause,A stipulation that senior bondholders will be paid first in the event of bankruptcy. Claims of  subordinated or junior debtholders are not paid until the senior debt is paid.,zvi,0,56.76,8.9,0,10.72,9.4,9.26,8.25,11.32
substitution swap,Exchange of one bond for another more attractively priced bond with similar attributes.,zvi,0,49.82,9.5,0,14.83,12.2,10.35,8.5,11.35
supply shock,An event that influences production capacity and costs in the economy.,zvi,0,43.39,9.9,0,12.62,9.7,12.79,8.5,18.95
support level,A price level below which it is supposedly difficult for a stock or stock index to fall.,zvi,0,62.68,8.7,0,6.67,7,7.27,10.5,11.51
survivorship bias,Bias in the average returns of a sample of funds induced by excluding past returns on funds that left the sample because they happened to be unsuccessful.,zvi,0,52.53,12.6,0,10.28,14.4,10.24,16.5,15.24
swaption,An option on a swap.,zvi,0,100.24,0.5,0,-4.33,-4,10.2,1.5,2
systematic risk,Risk factors common to the whole  economy; also called,zvi,0,53.88,8,0,9.31,6.6,12.86,4.5,8.04
systemic risk,"Risk of breakdown in the financial system, particularly due to spillover effects from one market into others.",zvi,0,45.76,11.1,0,13.45,12.8,11.91,10.5,11.51
tax anticipation notes,Short-term municipal debt to raise funds to pay for expenses before actual collection of taxes.,zvi,0,39.33,11.5,0,12.69,11.5,11.75,11.5,16.67
tax swap,Swapping two similar bonds to capture a tax benefit.,zvi,0,53.88,8,0,8.67,6.1,12.86,5.5,12.49
tax-deferral option,The feature of the U.S. Internal Rev-enue Code that the capital gains tax on an asset is payable only when the gain is realized by selling the asset.,zvi,0,74.19,6.4,0,6.55,6.1,11.1,7.5,8.46
tax-protected retirement plans,"Employer-sponsored and other plans that protect either contributions or investment earnings from taxes, at least until after retirement.",zvi,0,19.37,15,0,19.78,18.7,11.55,13,16.09
technical analysis,Research to identify mispriced securi-ties that focuses on recurrent and predictable stock price patterns and on proxies for buy or sell pressure in the market.,zvi,0,46.1,13,0,14.1,16.7,11.82,16.5,14.8
tender offer,"An offer from an outside investor to share-holders of a company to purchase their shares at a stipulated price, usually substantially above the market price, so that the investor may amass enough shares to obtain control of the company.",zvi,0,31.89,18.5,0,12.14,22,9.62,25.5,18.68
term insurance,"Provides a death benefit only, with no buildup of cash value.",zvi,0,68.77,6.4,0,7.35,5.9,8.49,5.5,8.04
term premiums,Excess of the yields to maturity on  long-term bonds over those of short-term bonds.,zvi,0,74.19,6.4,0,9.91,9.1,8.84,7,8.46
time value of an option,Difference between an option™s price and its intrinsic value. Not to be confused with present value or the time value of money.,zvi,0,68.77,6.4,0,8.97,6.8,7.05,5.5,6.22
time-weighted average,An average @often a geometric average@ of the period-by-period holding-period returns of an investment.,zvi,0,-10.42,18.2,0,16.93,15.9,11.1,13,17.03
times interest earned,Synonym for interest coverage ratio. Ratio of EBIT to interest expense.Tobin™s q Ratio of market value of the firm to replacement cost.,zvi,0,43.39,9.9,0,10.83,8.5,12.08,7,9.85
total asset turnover ATO,The annual sales generated by each dollar of assets @sales/assets@.,zvi,0,35.95,10.7,0,12.56,10.9,10.45,7,12
tracking error,The difference between the return on a  managed portfolio and that of a benchmark portfolio against which the manager is evaluated.,zvi,0,33.24,13.8,0,12.82,13.8,7.69,15.5,12.21
tracking portfolio,A portfolio constructed to have returns with the highest possible correlation with a systematic risk factor.,zvi,0,29.86,13.1,0,15.77,13.9,12.33,13,16.4
tranche,See collateralized mortgage obligation.,zvi,0,-34.11,19,0,27.55,23,15.68,3,21.6
Treasury bill,"Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.",zvi,0,41.7,12.7,0,13.92,15.1,10.69,14.5,14.11
Treasury bond,Debt obligation of the federal government with original maturity between 10 and 30 years.,zvi,0,31.89,12.3,0,13.22,11.1,13.35,12,17.03
Treasury note,Debt obligation of the federal government with original maturity between 1 and 10 years.,zvi,0,31.89,12.3,0,12.81,10.8,13.35,12,17.03
treasury stock,Stock that has been repurchased by the  issuing company and is held in the company™s treasury.,zvi,0,55.24,9.5,0,10.32,9.6,8.38,12,11.4
Treynor-Black model,"A special case of the Markowitz model of efficient diversification, derived by assuming returns are generated by the index model.Treynor™s measure Ratio of excess return to beta.",zvi,0,18.69,17.4,0,15.03,18.6,13.75,18.5,16.73
trin statistic,Ratio of average trading volume in declining stocks to average volume in advancing stocks. Used in  technical analysis.,zvi,0,36.96,10.3,0,12.84,9.5,11.98,6.5,14.71
trough,The transition point between recession and recovery.,zvi,0,30.53,10.7,0,17.35,13,10.75,5.5,19.94
turnover,The ratio of the trading activity of a portfolio to the assets of the portfolio.,zvi,0,47.79,10.3,0,7.24,6.8,9.64,10.5,11.33
12b-1 fees,Annual fees charged by a mutual fund to pay for marketing and distribution costs.,zvi,0,57.27,8.8,0,9.91,8.5,13.35,11,17.03
two-stage dividend discount model,Dividend discount model that allows for an initial high-growth period before the firm settles down to a sustainable growth trajectory.Final PDF to printerfi˝ 14,zvi,0,30.2,15,0,15.67,17.5,14.7,17,17.93
unbundling,See bundling.,zvi,0,120.21,-3.1,0,1.3,7.8,11.63,0,0.8
underwriters,Investment bankers who help companies issue their securities to the public.,zvi,0,43.39,9.9,0,15.29,11.9,11.36,7.5,15.31
"underwriting, underwriting syndicate",Underwriters @investment bankers@ purchase securities from the issuing company and resell them. Usually a syndicate of investment bankers is organized behind a lead firm.,zvi,0,25.46,12.7,0,16.4,13.4,11.47,10.5,16.47
unemployment rate,The ratio of the number of people classified as unemployed to the total labor force.,zvi,0,56.25,9.1,0,8.81,8.1,10.7,8.5,11.33
unique risk,"Nonmarket or firm-specific risk factors  that can be eliminated by diversification. Also called firm-specific risk,",zvi,0,4.64,14.5,0,17.47,13.7,12.43,5.25,13.67
unit investment trust,Money invested in a portfolio whose composition is fixed for the life of the fund.,zvi,0,64.71,8,0,8.05,7.4,9.64,10.5,14
universal life policy,"An insurance policy that allows for a varying death benefit and premium level over the term of the policy, with an interest rate on the cash value that changes with market interest rates.",zvi,0,37.98,16.2,0,10.22,17.2,9.58,23.5,19.26
utility,The measure of the welfare or satisfaction of an investor.,zvi,0,61.33,7.2,0,9.08,6.6,8.87,5,8
utility value,The welfare a given investor assigns to an investment with a particular return and risk.,zvi,0,47.79,10.3,0,10.37,9.3,10.7,8.5,11.33
value at risk VaR,"Measure of downside risk. The loss that will be incurred in the event of an extreme adverse price change with some given, typically low, probability.",zvi,0,67.25,7,0,9.9,8.4,9.31,6.25,8.2
variable annuities,Annuity contracts in which the  insurance company pays a periodic amount linked to the investment performance of an underlying portfolio.,zvi,0,17.34,15.8,0,16.36,16.1,12.52,18,22
variable life policy,An insurance policy that provides a fixed death benefit plus a cash value that can be invested in a variety of funds from which the policyholder can choose.,zvi,0,43.06,14.2,0,9.52,14.3,10.66,20,19.77
variation margin,See maintenance margin.,zvi,0,34.59,9.2,0,13.12,13,14.31,1.5,14.53
vega,The response of option price to a change in the  standard deviation of the underlying asset.,zvi,0,46.78,10.7,0,9.63,8.9,10.35,9,11.4
venture capital VC,"Money invested to finance a new, not yet publicly traded firm.",zvi,0,68.77,6.4,0,7.93,6.3,11.36,5.5,8.04
views,An analyst™s opinion on the likely performance of a stock or sector compared to the market-consensus expectation.,zvi,0,28.84,13.5,0,14.85,14,11.91,12.5,16.21
volatility risk,The risk in the value of options portfolios due to unpredictable changes in the volatility of the  underlying asset.,zvi,0,43.73,11.9,0,12.01,12.1,11.23,13.5,16.02
weak-form EMH,See efficient market hypothesis.,zvi,0,-8.73,15.5,0,17.4,14.7,11.73,3,21.6
well-diversified portfolio,"A portfolio spread out over many securities in such a way that the weight in any  security is close to zero, resulting in negligible diversifi-able risk.",zvi,0,36.63,14.6,0,10.68,14.6,10.39,19,19.63
whole-life insurance policy,Provides a death benefit and a kind of savings plan that builds up cash value for possible future withdrawal.,zvi,0,60.65,9.5,0,10.21,10.6,8.73,12.5,11.81
workout period,Realignment period of a temporary  misaligned yield relationship.,zvi,0,-4.33,15.9,0,20.95,16.2,15.88,7,23.2
world investable wealth,The part of world wealth that is traded and is therefore accessible to investors.,zvi,0,74.19,6.4,0,9.91,8.5,8.84,7,8.46
writing a call,Selling a call option.,zvi,0,75.88,3.7,0,2.9,2.9,11.73,1,1.6
yield curve,A graph of yield to maturity as a function of time to maturity.,zvi,0,66.74,7.2,0,4.16,3.5,9.14,7.5,8.28
yield to maturity YTM,A measure of the average rate of return that will be earned on a bond if held to maturity.,zvi,0,69.11,8.3,0,4.41,5.9,7.9,11.5,11.81
zero-beta portfolio,The minimum-variance portfolio uncorrelated with a chosen efficient portfolio.,zvi,0,-30.73,19.8,0,24.79,19.7,12.86,8.5,21.38
zero-coupon bond,A bond paying no coupons that sells at a discount and provides only payment of face value at maturity.,zvi,0,60.65,9.5,0,8.07,8.9,10.4,10.5,9.71
zero-investment portfolio,"A portfolio of zero net value, established by buying and shorting component securities, usually in the context of an arbitrage strategy.Final PDF to printer",zvi,0,13.28,17.4,0,14.45,16.7,14.04,19,21.27
Absolute advantage,"The ability of Coun-try A to produce a commodity  ciently @i.e., with greater output per unit of input@ than Country B. Possession of such an absolute advantage does not nec-essarily mean that A can export this commodity to B successfully. Country B may still have the com-parative advantage.     ",sam,1,38.32,11.9,13.6,10.55,10.5,11.34,11.33333333,13.07
"Actual, cyclical, and structural budget","The  actual budget  cit or surplus is the amount recorded in a given year. This is composed of the  structural budget,  which calcu-lates what government revenues,  cits would be if the economy were operating at potential output, and the  cycli-cal budget,  which measures the effect of the business cycle on the budget.     ",sam,1,28.17,15.8,0,11.32,15.3,11,16,13.48
Adaptive expectations,See  expecta-tions.,sam,1,-49,20.6,0,12.9,19.6,19.53,1,20.8
Adverse selection,"A type of market failure in which those people with the highest risk are the most likely to buy insurance. More broadly, adverse selection encompasses sit-uations in which sellers and buyers have different information about a product, such as in the market for used cars.     ",sam,1,40.18,13.2,0,11.61,13.6,10.02,14.25,12.56
Aggregate demand,"Total planned or desired spending in the economy during a given period. It is deter-mined by the aggregate price level  uenced by domestic invest-ment, net exports, government spending, the consumption func-tion, and the money supply.     ",sam,1,28.33,13.7,0,13.92,14.1,12.63,12.75,12.71
Appreciation,@of a currency@.   See  depreciation  @of a currency@.,sam,1,-12.79,17,0,7.21,7.9,7.98,2.5,13.2
Appropriable,"Term applied to resources for which the owner can capture the full economic value. In a well-functioning competitive market, appropriable resources  ciently. Also refer to  inappropriable.      ",sam,1,3.42,14.9,10.5,15.45,12.1,10.14,5,11.17
Arbitrage,The purchase of a good or asset in one market for immediate resale in another market in order  t from a price discrepancy.,sam,1,39.67,13.4,0,7.72,10.3,8.9,14.5,12.68
Asset,"A physical property or intangi-ble right that has economic value. Important examples are plant, equipment, land, patents, copy- nancial instruments such as money or bonds.     ",sam,1,24.95,12.9,0,14.08,12.5,11.2,8.75,14.6
Asymmetric information,A situation where one party to a transaction has better information than the other party. This often leads to a market failure or even to no mar-ket at all.,sam,1,56.76,8.9,0,7.13,6.6,8.17,7.75,9.94
Automatic,@ or  built-in@ stabilizers. The property of a government tax and spending system that cushions income changes in the private  sector. Examples include unem- ployment compensation and pro- gressive income taxes.,sam,1,35.95,10.7,10.5,14.3,11.7,12.55,5.833333333,9.33
Budget,"An account, usually for a year, of planned expenditures and expected receipts. For a govern-ment, the receipts are tax reve-nues. See also  actual, cyclical,  and  structural budget.      ",sam,1,28.5,11.5,10.5,11.68,9.8,11.1,5.166666667,9.53
Business cycles,"Fluctuations in total national output, income, and employment, usually lasting for a period of 2 to 10 years, marked by widespread and simultaneous expansion or contraction in many sectors of the economy.      C     C  I  G  NX    schedule.    A schedule showing the planned or desired levels of aggregate demand for each level of GDP, or the graph on which this schedule is depicted.    ",sam,1,-26.32,32.6,0,10.87,32.8,14.53,14.16666667,32.18
Average cost,"Refer to  cost, average.      ",sam,1,-93.33,27.3,0,2.9,4.1,11.73,2,11.6
Average product,"Total product or output divided by the quantity of one of the inputs. Hence, the aver- ned as total product divided by the amount of labor input, and simi-larly for other inputs.     Average revenue.    Total revenue divided by total number of units sold—i.e., revenue per unit. Aver-age revenue is generally equal to price.     ",sam,1,28.13,13.7,12.5,9.97,11,10.47,7.625,10.1
Average tax rate,Total taxes divided by total income; also known as  effective tax rate.,sam,1,42.38,10.3,0,9.38,7.7,9.5,7,11.47
Average variable cost,"Refer to  cost, average variable.       B     ",sam,1,-112.28,30.4,0,5.27,4.3,14.46,3,9.07
Balance of international payments,"A statement showing all of a nation’s transactions with the rest of the world for a given period. It includes purchases and sales of goods and services, gifts, government transac-tions, and capital movements.     Balance of trade.    The part of a nation’s balance of payments that deals with imports or exports of  goods,  including such items as oil, capital goods, and automobiles. When services and other current items are included, this measures the  balance on current account.  In balance-of-payments accounting,  nanced by the   nancial account.      Balance on current account.    See  balance of trade.      ",sam,1,14.93,18.8,14.6,13.53,19.4,9.79,6.25,15.32
Balance sheet,"A statement of the financial position of an entity  rm, government@ as of a given date, listing  assets  in one col-umn and  liabilities  plus  net worth  in the other. Each item is listed at its actual or estimated money value. Totals of the two columns must balance because net worth is  ned as assets minus liabilities.     ",sam,1,27.11,14.1,12.5,8.82,9.7,10.2,12,11.77
"Bank, commercial",Financial inter-mediary whose prime distinguishing feature is that it accepts checkable  nancial institutions that hold savings and checkable deposits are called depository institutions.     Bank money.,sam,1,-13.13,21.3,0,22.46,23.7,13.09,18.5,18
Money,"created by banks, particularly the checking accounts @part of   M   1 @ that are gen-erated by a multiple expansion of bank reserves.     ",sam,1,-0.61,18.6,0,11.14,13.3,13.7,16,17.92
Bank reserves,"Refer to  reserves, bank.      ",sam,1,-76.41,24.9,0,4.35,5.3,11.73,1,1.6
Barriers to entry,"Factors that impede entry into a market and thereby reduce the amount of competition or the number of producers in an industry. Important examples are legal barriers, regulation, and product differentiation.     ",sam,1,4.98,16.4,0,14.79,13.2,11.54,11.75,15.23
Barter,The direct exchange of one good for another without using anything as money or as a medium of exchange.,sam,1,60.65,9.5,0,8.36,9.1,6.24,10.5,7.6
Benefit principle,@of taxation@.   The principle that people should be taxed in proportion to the bene- ts they receive from government programs.,sam,1,42.72,12.3,0,12.01,13.5,10.16,14,14
Bond,"cate issued by a government or corpo-ration, promising to repay a sum of money @the principal@ plus  ed date in the future.     ",sam,1,32.22,14.2,0,8.01,11.2,11.19,14,10.62
Break-even point,"(in macroeconom- ics). For an individual, family, or community, that level of income at  which 100 percent is spent on con- sumption (i.e., the point where  there is neither saving nor dis- saving). Positive saving begins at  higher income levels.",sam,1,49.52,9.7,9.7,9.21,9.4,10.22,7,8.32
"Capital capital goods, capital equipment","@1@ In economic theory, one of the triad of productive inputs @land, labor, and capital@. Capital consists of durable pro-duced items that are in turn used in production. @2@ In accounting  nance, “capital” means the total amount of money subscribed by the shareholder-owners of a corporation, in return for which they receive shares of the compa-ny’s stock.     ",sam,1,34.09,15.6,0,11.9,17.7,11.7,19.75,16.31
Capital consumption allowance,"See  depreciation  @of an asset@. Capital deepening. In economic-growth theory, an increase in the capital-labor ratio. @Contrast with  capital widening. @     ",sam,1,-23.28,19,0,16.33,14.7,12.82,7.75,12
Capital gains,"The rise in value of a capital asset, such as land or com-mon stocks, the gain being the difference between the sales price and the purchase price of the asset.     ",sam,1,49.49,13.8,0,7.85,14.2,8.28,17,12
Capital markets,"@also  financial mar-kets @.    nancial resources @money, bonds, stocks@ are traded. These, along with   nan-cial intermediaries,  are institutions through which saving in the econ-omy is transferred to investors.     Capital-output ratio.    In economic-growth theory, the ratio of the total capital stock to annual GDP.     ",sam,1,-9.07,19.7,0,16.71,18.8,14.08,10.16666667,14.11
Capital widening,"A rate of growth in real capital stock just equal to the growth of the labor force @or of the population@, so the ratio between total capital and total labor remains unchanged. @Con-trast with  capital deepening. @     ",sam,1,18.02,19.7,0,10.51,19.7,10.25,23.5,16.62
Capitalism,"An economic system in which most property @land and cap-ital@ is privately owned. In such an economy, private markets are the primary vehicles used to allocate resources and generate incomes.     ",sam,1,30.87,12.7,0,12.29,11.5,12.28,12,16.67
Cardinal utility,See  ordinal utility.,sam,1,-24.64,17.4,0,7.32,8.3,14.31,2.5,27.87
Cartel,An organization of indepen- rms producing similar prod-ucts that work together to raise prices and restrict output.,sam,1,28.84,13.5,0,15.19,14.5,13.77,13.5,16.21
Central bank,A government-established agency @in the United States,sam,1,55.91,7.2,0,17.35,13.7,8.5,3.5,8.51
Federal Reserve System,"responsible for controlling the nation’s money supply and credit conditions and for supervising the  nancial system, especially com-mercial banks and other deposi-tory institutions.     ",sam,1,-28.02,22.9,0,21.88,22.4,15.76,19.5,19.63
Change in demand vs change in quantity demanded,"A change in the quantity buyers want to purchase, prompted by any reason other than a change in price @e.g., increase in income, change in tastes@, is a  change in demand.  In graphical terms, it is a shift of the demand curve. If, in contrast, the decision to buy more or less is prompted by a change in the good’s price, then it is a  change in quantity demanded.  In graphical terms, a change in quantity demanded is a movement along an unchanging demand curve.     ",sam,1,36.8,18.7,0,8.08,20.6,9.09,12.875,19.35
Change in supply vs change in quantity supplied,"This distinction for supply is the same as that for demand, so see  change in demand vs. change in quantity demanded.      Checking accounts @ also  checkable deposits  and  bank money@.    A deposit in a commercial bank or  nancial intermediary upon which checks can be written and which is therefore transactions money @or  M  1 @. Checkable depos-its are about half of  M  1 .     Chicago School of ",sam,1,13.62,19.3,0,10.75,17.7,10.16,6.9,16.55
Economics,"A group of economists @among whom Henry Simons, F. A. von Hayek, and Milton Friedman have been the most prominent@ who believe that competitive markets free of government intervention  cient oper-ation of the economy.     Classical approach.    See  classical economics.      Classical economics.    The predomi-nant school of economic thought prior to the appearance of Keynes’s work; founded by Adam  gures who followed Smith include David Ricardo, Thomas Malthus, and John Stuart Mill. By and large, this school believed that economic laws @particularly individual self- interest and competition@ determine prices and factor rewards and that the price system is the best possible device for resource allocation.     ",sam,1,2.82,21.4,19.3,15.56,22.9,13.16,14.6,20.32
Classical macroeconomics,See clas-sical theories.,sam,1,9.21,12.7,0,13.12,14.6,19.58,2.5,14.53
Classical theories,"Theories emphasizing the self-correcting forces in the econ-omy. In the classical approach, there is generally full employ-ment, and policies to stimulate aggregate demand have no impact upon output.     ",sam,1,14.97,14.7,0,16.29,14.5,13.92,11.5,15.6
Clearing market,"A market in which  ciently  exible to equilibrate supply and demand very quickly. In markets that clear, there is no rationing, unemployed resources, or excess demand or supply. In practice, this is thought to apply to many commodity and  nancial markets but not to labor or many product markets.     ",sam,1,46.47,10.8,9.7,10.61,10.3,9.6,8.5,9.79
Closed economy,"See  open economy.      Collective bargaining.    The process of negotiations between a group of workers @usually a union@ and their employer. Such bargain-ing leads to an agreement about  ts, and work-ing conditions.     ",sam,1,4.98,16.4,0,13.86,13.2,12.05,6.833333333,15.23
Collusion,"An agreement between  rms to cooperate by raising prices, dividing mar-kets, or otherwise restraining competition.     ",sam,1,-19.9,19.8,0,18.84,17.2,14.91,12.5,16.67
Collusive oligopoly,"A market struc-ture in which a small number  rms @i.e., a few oligopolists@ collude and jointly make their sam11290_glo.indd   656sam11290_glo.indd   6562/24/09   2:58:31 PM2/24/09   2:58:31 PM  657decisions. When they succeed in  ts, the price and quantity in the market closely approach those prevailing under monopoly.     ",sam,1,23.77,15.4,0,15.14,18.2,14.06,13.5,15.16
Command economy,"A mode of eco-nomic organization in which the key economic functions— what, how,  and  for whom  — are principally determined by government direc-tive. Sometimes called a  centrally planned economy.      Commodity money.    ",sam,1,-3.49,17.6,0,14.96,13.8,12.05,13.25,15.23
Common currency,"A situation where several countries form a mone-tary union with a single currency  ed central bank; e.g., the European Monetary Union @EMU@, which introduced the Euro in 1999.     ",sam,1,17.68,17.8,0,11.61,17.3,14.05,21,18.34
Common stock,"Financial instru-ment representing ownership and, generally, voting rights in a corpo-ration. A certain share of a com-pany’s stock gives the owner title to that fraction of the votes, net earn-ings, and assets of the corporation.     ",sam,1,28.33,13.7,0,13.22,13.7,12.63,12.75,12.71
Communism,"A communist eco-nomic system @also called  Soviet-style central planning @ is one in which the state owns and controls the means of production, par-ticularly industrial capital. Such economies are also characterized by extensive central planning, with the state setting many prices, output levels, and other important economic variables.     Comparative advantage    @in interna-tional trade@    .   The law of compar-ative advantage says that a nation should specialize in producing and exporting those commodi-ties which it can produce at  rela-tively  lower cost and that it should import those goods for which it is a  relatively  high-cost producer. Thus it is a comparative advantage, not an absolute advantage, that should dictate trade patterns.     Compensating differentials.    Differ-ences in wage rates among jobs that serve to offset or compensate for the nonmonetary differences of the jobs. For example, unpleas-ant jobs that require isolation for many months in Alaska pay wages much higher than those for simi-lar jobs nearer to civilization.     Competition, imperfect.    Term ap-plied to markets in which per-fect competition does not hold because at least one seller @or buyer@ is large enough to affect the market price and therefore faces a downward-sloping demand @or supply@ curve. ",sam,1,-1.92,25.3,21.6,15.68,29.3,13.17,15,24.85
Imperfect competition,"refers to any kind of market imperfection—pure  monopoly, oligopoly,  or  monopo-listic competition.      ",sam,1,-59.15,24.5,0,21.45,18.3,13.44,11,18.13
"Competition, perfect","Term applied  rm or con-sumer is large enough to affect the market price. This situation arises where @1@ the number of sellers and buyers is very large and @2@ the products offered by sellers are homogeneous @or indistinguish-able@. Under such conditions,  rm faces a horizontal @or perfectly elastic@ demand curve.     Competitive equilibrium.    The bal-ancing of supply and demand in a market or economy characterized by  perfect competition.  Because perfectly competitive sellers and buyers individually have no power  uence the market, price will move to the point at which it equals both marginal cost and marginal utility.     Competitive market.    See  competi-tion, perfect.      ",sam,1,3.43,21.2,17.9,14.52,21.8,11.09,14,19.42
Complements,"Two goods which “go together” in the eyes of consumers @e.g., left shoes and right shoes@. Goods are  substitutes  when they compete with each other @as do gloves and mittens@.     Compound interest.    ",sam,1,46.78,10.7,0,9.97,10.4,9.86,8.5,8.9
Constant returns to scale,See  returns to scale.,sam,1,75.88,3.7,0,1.45,1.8,11.73,1,1.6
Consumer price index CPI,"A price index that measures the cost of a  xed basket of consumer goods in which the weight assigned to each commodity is the share of expen-ditures on that commodity in a base year.     Consumer surplus.    The difference between the amount that a con-sumer would be willing to pay for a commodity and the amount actu-ally paid. This difference arises because the marginal utilities @in dollar terms@ of all but the last unit exceed the price. Under certain conditions, the money value of consumer surplus can be measured @using a demand curve diagram@ as the area under the demand curve but above the price line.     ",sam,1,35.95,16.9,14.1,10.34,18.6,9.28,15.25,15.9
Consumption,"In macroeconomics, the total spending, by individuals or a nation, on consumer goods during a given period. Strictly speaking, consumption should apply only to those goods totally used, enjoyed, or “eaten up” within that period. In practice, consump-tion expenditures include all consumer goods bought, many of which last well beyond the period in question—e.g., furniture, cloth-ing, and automobiles.     ",sam,1,26.51,14.4,14.1,15.32,16.2,11.13,13.33333333,12.55
Core rate of inflation,ation after  uence of vola-tile elements like food and energy prices. This concept is often used by  ation targeting.,sam,1,61.83,7,0,9.65,7.4,11.59,5.25,10.12
Corporate income tax,A tax levied on the annual net income of a corporation.,sam,1,68.77,6.4,0,4.74,3.3,8.49,6.5,11.67
Corporation,"The dominant form of business organization in modern capitalist economies. A corpora- rm owned by individu-als or other corporations. It has the same rights to buy, sell, and make contracts as a person would have. It is legally separate from those who own it and has  limited liability.      ",sam,1,42.38,10.3,11.7,9.61,7.9,9.5,7.25,11.47
Correlation,The degree to which two variables are systematically associated with each other.,sam,1,25.46,12.7,0,14.72,11.7,9.5,7,11.47
Total cost,"@refer to  cost, total @ divided by the number of units produced.     ",sam,1,9.55,14.7,0,7.35,6.8,11.36,6,8.04
Fixed cost,@refer to   xed @ divided by the num-ber of units produced.,sam,1,44.41,9.6,0,6.18,5.7,15.19,5.5,8
Variable,"cost.@refer to  cost, variable @ divided by the number of units produced.     ",sam,1,9.55,14.7,0,11.06,10.2,11.36,6,8.04
"Cost, fixed","rm would incur even if its output for the period in question were zero. T xed cost is made up of such individual contractual costs as interest payments, mortgage pay-ments, and directors’ fees.     ",sam,1,37.81,12.1,0,9.86,9.8,12.11,10.75,12.66
"Cost, marginal",The extra cost @or the increase in total cost@ required to produce 1 extra unit of output @or the reduction in total cost from producing 1 unit less@.,sam,1,59.98,11.8,0,7.43,13.2,10.1,16,14.06
"Cost, minimum","The lowest attain-able cost per unit @whether aver-age, variable, or marginal@. Every point on an average cost curve is a minimum in the sense that it is the  rm can do with respect to cost for the output which that point represents. Minimum aver-age cost is the lowest point, or points, on that curve.     ",sam,1,61.67,9.1,12.5,7.77,9.2,8.92,11.66666667,10.16
"Cost, total","The minimum attainable total cost, given a particular level of technology and set of input prices.  Short-run total cost  takes  xed costs as given.  Long-run total cost  is the cost that would be incurred if the   exibility with respect to all inputs and decisions.     ",sam,1,1.44,24,0,11.27,23.7,11.2,8.333333333,23.05
"Cost, variable","A cost that varies with the level of output, such as raw-material, labor, and fuel costs. ",sam,1,55.24,9.5,0,7.42,8.4,9.36,8,8.9
Cost-push inflation,See  supply-shock  ation.,sam,1,34.59,9.2,0,11.15,13,14.31,0.5,1.2
Credit,"@1@ In monetary theory, the use of someone else’s funds in exchange for a promise to pay @usually with interest@ at a later date. The major examples are short-term loans from a bank, credit extended by suppliers, and commercial paper. @2@ In balance-of-payments accounting, an item such as exports that earns a coun-try foreign currency.     ",sam,1,35.1,15.2,0,11.09,16.6,11.89,19.25,18.27
Cross elasticity of demand,"A mea- uence of a change in one good’s price on the demand for another good. More precisely, the cross elasticity of demand equals the percentage change in demand for good A when the price of good B changes by 1 per-cent, assuming other variables are held constant.     ",sam,1,55.58,11.5,0,8.65,12,9.76,14.5,12.93
Currency,Coins and paper money.,sam,1,75.88,3.7,0,2.9,2.9,7.78,1,1.6
Current account,See  balance of trade.,sam,1,75.88,3.7,0,1.45,1.8,7.78,1,1.6
Cyclical budget,"See  actual, cyclical, and structural budget.      Cyclical unemployment.    See  fric-tional unemployment.       D     Deadweight loss.    The loss in real income or consumer and pro-ducer surplus that arises because of monopoly, tariffs and quotas, taxes, or other distortions. For example, when a monopolist raises its price, the loss in con-sumer satisfaction is more than the gain in the monopolist’s rev-enue—the difference being the deadweight loss to society due to monopoly.     ",sam,1,-13.8,23.6,0,15.39,22.8,12.06,8.6,18.89
Debit,"@1@ An accounting term signifying an increase in assets or decrease in liabilities. @2@ In balance-of-payments accounting, a debit is an item such as imports that reduces a country’s stock of foreign currencies.     Decreasing returns to scale.    See  returns to scale.      ",sam,1,-3.99,24,0,13.48,24.6,13.37,8.166666667,21.28
Deficit spending,Government’s expen-ditures on goods and services and transfer payments in excess of its receipts from taxation and other rev-enue sources. The difference must  nanced by borrowing from the public.,sam,1,48.3,10.1,0,14.72,12.9,11.98,8.75,9.94
Deflating,@of economic data@.   The process of converting “nominal” or current-dollar variables into “real” terms. This is accomplished by dividing current-dollar variables by a  price index.,sam,1,24.95,12.9,0,15.94,13.8,11.2,5.5,13
Deflation,"A fall in the general level of prices.     Demand curve @ or  demand sched-ule@.    A schedule or curve show-ing the quantity of a good that buyers would purchase at each price, other things equal. Nor-mally a demand curve has price on sam11290_glo.indd   658sam11290_glo.indd   6582/24/09   2:58:31 PM2/24/09   2:58:31 PM  659the vertical or  Y  axis and quantity demanded on the horizontal or  X  axis. Also see  change in demand vs. change in quantity demanded.      ",sam,1,22.04,16.1,13,11.38,15,11.48,8,12.86
Demand for money,"A summary term used by economists to explain why individuals and businesses hold money balances. The major moti-vations for holding money are @1@  transactions demand,  signifying that people need money to pur-chase things, and @2@  asset demand,  relating to the desire to hold a very liquid, risk-free asset.     Demand-pull inflation.     a-tion caused by an excess demand for goods in general, caused, e.g., by a major increase in aggregate demand. Often contrasted with   ation.      ",sam,1,12.97,17.5,15,12.71,16.4,11.11,12.375,15.2
Demography,The study of the behav-ior of a population.,sam,1,63.36,6.4,0,5,3.8,9.95,5,8.2
Depression,"A prolonged period characterized by high unemploy-ment, low output and investment,  dence, falling prices, and widespread business failures. A milder form of business downturn is a  recession,  which has many of the features of a depression to a lesser extent.     ",sam,1,34.26,13.5,0,13.17,14.2,12.13,13,14
Derived demand,The demand for a factor of production that results @is “derived”@ from the demand  nal good to which it con-tributes. Thus the demand for tires is derived from the demand for automobile transportation.,sam,1,63.19,8.5,0,11.08,10.8,9.72,10.25,9.02
Developing country,"A country with a per capita income far below that of “developed” nations @the latter usu-ally includes most nations of North America and Western Europe@. Same as  less developed country.      Differentiated products.    Products which compete with each other and are close substitutes but are not identical. Differences may be manifest in the product’s func-tion, appearance, location, quality, or other attributes.     Diminishing marginal utility, law of.    The law which says that as more and more of any one com-modity is consumed, its marginal utility declines.     ",sam,1,9.22,18.9,17.5,14.1,18.8,10.85,10.16666667,17.87
"Diminishing returns, law of","A law stating that the additional out-put from successive increases of one input will eventually dimin-ish when other inputs are held constant. Technically, the law is equivalent to saying that the mar-ginal product of the varying input declines after a point.     Direct taxes.    Taxes levied directly  rms, including taxes on income, labor earnings,  ts. Direct taxes contrast with  indirect taxes,  which are levied on goods and services and thus only indirectly on people, such as sales taxes and taxes on property, alcohol, imports, and gasoline.     ",sam,1,17.37,17.9,15.5,13.06,18.1,11.54,14.125,16.97
Discount rate,@1@ The interest rate charged by a Federal Reserve Bank @the central bank@ on a loan that it makes to a commercial bank. @2@ The rate used to calculate the present value of some asset.,sam,1,61.33,13.4,0,6.86,16.3,10.34,21.5,18.57
Discounting,"@of future income@.   The process of converting future income into an equivalent pres-ent value. This process takes a future dollar amount and reduces  ects the appropriate interest rate. For example, if someone promises you $121 in 2 years, and the appropri-ate interest rate or discount rate is 10 percent per year, then we can calculate the present value by dis-counting the $121 by a discount factor of @1.10@ 2 . The rate at which future incomes are discounted is called the  discount rate.      ",sam,1,50.67,11.3,12.2,10.39,12.3,10.24,10.3,12.1
Discrimination,"Differences in earn-ings that arise because of personal characteristics that are unrelated to job performance, especially those related to gender, race, ethnicity, sexual orientation, or religion.     ",sam,1,-22.6,22.9,0,19.61,22.6,12.82,24,27.32
Disequilibrium,"The state in which an economy is not in  equilibrium.  This may arise when shocks @to income or prices@ have shifted demand or supply schedules but the market price @or quantity@ has not yet adjusted fully. In mac-roeconomics, unemployment is often thought to stem from mar-ket disequilibria.     ",sam,1,39.16,13.6,0,11.9,14.8,10.18,10.16666667,15.36
Disinflation,"The process of reducing  ation rate. For example, the deep recession of 1980–1983  ation over that period.     Disposable income @  DI   @.    Roughly, take-home pay, or that part of the total national income that is avail-able to households for consump-tion or saving. More precisely, it is equal to GDP less all taxes, busi-ness saving, and depreciation plus government and other transfer payments and government inter-est payments.  sam11290_glo.indd   659sam11290_glo.indd   6592/24/09   2:58:31 PM2/24/09   2:58:31 PM660     ",sam,1,13.58,17.3,14.6,15.84,19,13.71,8.7,15.11
Economic efficiency,See  effciency.,sam,1,-49,20.6,0,4.2,10.2,11.63,1,20.8
Economic good,"A good that is scarce relative to the total amount of it that is desired. It must therefore be rationed, usually by charging a positive price.     Economic growth.    An increase in the total output of a nation over time. Economic growth is usually measured as the annual rate of increase in a nation’s real GDP @or real potential ",sam,1,43.43,12,12.5,8.7,9.9,9.77,8.25,11.86
Economic regulation,See  regulation.,sam,1,-49,20.6,0,7.1,12.5,11.63,1,20.8
Economic rent,"Refer to  rent, eco-nomic.      ",sam,1,-93.33,27.3,0,4.35,6.5,15.68,2,1.6
Economic surplus,A term denoting the excess in total satisfaction or utility over the costs of production; equals the sum of consumer surplus @the excess of consumer satisfac-tion over total value of purchases@ and producer surplus @the excess of producer revenues over costs@.,sam,1,21.4,20.5,0,13.77,24.4,11.45,28.5,23.23
Economies of scale,"Increases in pro-ductivity, or decreases in average cost of production, that arise from increasing all the factors of pro-duction in the same proportion.     ",sam,1,14.29,17,0,14.8,16.9,11.64,19.5,21.37
Effective tax rate,Total taxes paid as a percentage of the total income or other tax base; also known as  average tax rate.,sam,1,51.18,11.1,0,6.5,8.4,7.79,12,12
Efficiency,"Absence of waste, or the use of economic resources that produces the maximum level of satisfaction possible with the given inputs and technology. A shorthand expression for  Pareto ef ciency.      Disposable personal income.    Same as  disposable income.      ",sam,1,-6.53,18.8,0,14.68,14.4,10.96,5.875,14.97
Dissaving,Negative saving; spending more on consumption goods dur-ing a period than the disposable income available for that period  nanced by borrowing or drawing on past savings@.,sam,1,28.17,15.8,0,14.45,17.9,11.61,19,18.09
Distribution,"In economics, the man-ner in which total output and income is distributed among indi-viduals or factors @e.g., the distri-bution of income between labor and capital@.     ",sam,1,12.26,17.8,0,13.64,17.8,13.09,17.5,14.8
Dominant equilibrium,See  dominant strategy.,sam,1,-24.64,17.4,0,11.15,11.5,14.31,2.5,27.87
Dominant strategy,"In game theory, a situation where one player has a best strategy no matter what strat-egy the other player follows. When all players have a dominant strat-egy, we say that the outcome is a  dominant equilibrium.      Downward-sloping demand, law of.    The rule which says that when the price of some commod-ity falls, consumers will purchase more of that good, other things held equal.     ",sam,1,22.58,17.9,0,11.09,17.9,10.21,10.375,15.77
Duopoly,A market structure in which there are only two sellers. @Compare with  oligopoly. @      E,sam,1,23.43,13.5,0,9.45,9.1,8.84,7.5,8.46
Econometrics,The branch of econom-ics that uses the methods of statistics to measure and estimate quantita-tive economic relationships.,sam,1,20.38,14.6,0,17.57,16.5,13.77,14.5,18.56
Efficient financial market,Financial market displaying the charac-teristics of an  ef cient market.,sam,1,19.03,13.1,0,16.04,12.8,13.61,7,16
Efficient market,efficient-market theory@.    A market or theory in which all new information is quickly absorbed by market par-ticipants and becomes immedi-ately incorporated into market  cient-market theory holds that all cur-rently available information is already incorporated into the price of common stocks @or other assets@.,sam,1,-22.94,27.1,0,18.41,29.4,12.38,33.5,22.78
Elasticity,"A term widely used in eco-nomics to denote the responsive-ness of one variable to changes in another. Thus the elasticity of  X  with respect to  Y  means the percentage change in  X  for every 1 percent change in  Y . For espe-cially important examples, see  price elasticity of demand  and  price elasticity of supply.",sam,1,36.59,12.6,13.6,9.8,10.2,10.77,12.33333333,10.1
Employed,"persons are employed if they perform any paid work or if they hold jobs but are absent because of illness, strike, or vacations.     ",sam,1,48.13,12.3,0,9,11.8,9.58,12.5,10.94
Equal-cost line,A line in a graph showing the various possible com-binations of factor inputs that can be purchased with a given quantity of money.,sam,1,39.67,13.4,0,9.99,12.4,10.96,15.5,14.42
Equal-product curve,or  isoquant@.    A line in a graph showing the vari-ous possible combinations of fac-tor inputs which will yield a given quantity of output.,sam,1,31.21,14.6,0,10.74,13.6,13.02,15.5,12.68
Equation of exchange,"A definitional equation which states that  MVP  PQ,  or the money stock times veloc-ity of money equals the price level times output. This equation forms the core of  monetarism.",sam,1,48.3,10.1,0,10.55,9.5,10.89,7.75,8.56
Exchange rate,"See  foreign exchange rate.      Exchange-rate system.    The set of rules, arrangements, and institu-tions under which payments are made among nations. Historically, the most important exchange-rate systems have been the gold exchange standard, the Bretton Woods system, and today’ exible-exchange-rate system.     ",sam,1,-8.05,19.3,0,18.85,19.6,10.16,8,12
Excise tax vs sales tax,"An excise tax is one levied on the purchase  c commodity or group of commodities @e.g., alcohol or tobacco@. A  sales tax  is one levied on all commodities with only a few  c exclusions @e.g., all pur-chases except food@.     ",sam,1,43.22,12.1,0,7.43,9.9,9.87,13.25,11.9
Exclusion principle,"A criterion by which public goods are distin-guished from private goods. When a producer sells a commodity to person A and can easily exclude B, C, D, etc., from enjoying the ben- ts of the commodity, the exclu-sion principle holds and the good is a private good. If, as in public health or national defense, people cannot easily be excluded from  ts of the good’s production, then the good has public-good characteristics.     Exogenous vs. induced variables.    Exogenous variables are those determined by conditions outside the economy. They are contrasted with  induced variables,  which are determined by the internal work-ings of the economic system. Changes in the weather are exog-enous; changes in consumption are often induced by changes in income.     ",sam,1,30.4,14.9,16.2,12.48,15.4,10.26,12.16666667,15.57
Expectations,"Views or beliefs about uncertain variables @such as future interest rates, prices, or tax rates@. ",sam,1,64.71,8,0,12.29,12.1,12.8,8.5,11.33
Equilibrium,The state in which an economic entity is at rest or in which the forces operating on the entity are in balance so that there is no tendency for change.,sam,1,57.95,12.6,0,6.69,12.7,8.28,20,17.33
Equimarginal principle,"A principle for deciding the allocation of income among different consump-tion goods. Under this principle, a consumer’s utility is maximized by choosing the consumption information. ",sam,1,16.49,14.1,0,17.56,14.6,11.2,11.25,16.2
Expected rate of inflation,A process of steady infl ation that occurs when infl ation is expected to per- sist and the ongoing rate of infl a- tion is built into contracts and people’s expectations.,sam,1,48.47,14.2,0,9.12,15.5,11.8,18.5,16.27
Expenditure multiplier,See  multiplier.,sam,1,-49,20.6,0,7.1,12.5,11.63,1,20.8
Financial,whose products and services consist of  nancial instruments like stocks and bonds.,sam,1,59.3,8,0,15.18,12,13.44,6,8.13
Financial system,"The markets,  rms, and other institutions which carr nancial decisions of households, businesses, govern-ments, and the rest of the world.  nancial system include the money mar- xed-interest assets like bonds or mortgages, stock markets for the ownership of  rms, and foreign exchange mar-kets which trade the monies of dif-ferent countries.     ",sam,1,3.81,25.2,0,15.51,30.8,13.7,32,24
Firm,"@business firm@.   The basic, pri-vate producing unit in an econ-omy. It hires labor, rents or owns capital and land, and buys other inputs in order to make and sell goods and services.     ",sam,1,46.78,10.7,0,8.18,8.9,11.83,8.5,7.65
Fiscal-monetary mix,"The combination of fiscal and monetary policies  uence macroeconomic activity. A tight monetar s-cal policy will tend to encourage consumption and retard invest-ment, while an easy monetary– scal policy will have the opposite effect.     Fiscal policy.    A government’s pro-gram with respect to @1@ the pur-chase of goods and services and spending on transfer payments and @2@ the amount and type of taxes.     ",sam,1,14.63,18.9,0,13.7,19.7,13.58,15,18.85
Fallacy of composition,The fallacy of assuming that what holds for indi-viduals also holds for the group or the entire system.,sam,1,53.21,10.3,0,9.51,10.1,10.67,12,13.87
Federal funds rate,The interest rate that banks pay each other for the overnight use of bank reserves.,sam,1,81.63,5.6,0,8.4,7.7,7.54,7.5,8.67
Final good,A good that is produced  nal use and not for resale or further manufacture. @Compare with  intermediate goods. @,sam,1,36.28,12.7,0,10.79,11.6,8.92,11.5,11.64
Finance,The process by which eco-nomic agents borrow from and lend to other agents in order to save and spend.,sam,1,77.57,7.2,0,7.78,8.9,7.9,10.5,7.6
Financial assets,"Monetary claims or obligations by one party against another party. Examples are bonds, mortgages, bank loans, and equities.     ",sam,1,28.5,11.5,0,13.48,10.8,11.1,6,12.49
Floating exchange rates,See flexible exchange rates.,sam,1,50.5,7.2,0,11.6,10,11.73,2,11.6
Flow of funds,The account which  nan- ow through the economy.,sam,1,71.82,5.2,0,7.21,5.6,9.95,4,8.2
Flow vs stock,A flow  variable is one  ows  ow through a stream@. A  stock  variable is one that measures a quantity at a point of time @like the water in a lake@.,sam,1,73.17,6.8,0,3.41,4.1,7.01,7,7.33
Income,"The flow of wages, interest payments, dividends, and other receipts accruing to an individual or nation during a period of time (usually a year).",sam,1,30.2,15,0,11.03,14.5,11.41,18,19.6
Wealth,The net value of tangible and fi nancial items owned by a nation or person at a point in time. It equals all assets less all liabilities.,sam,1,74.69,6.2,0,5.56,4.7,9.57,6.75,8.36
Foreign exchange market,"The mar-ket in which currencies of differ-ent countries are traded.     Foreign exchange rate.    The rate, or price, at which one country’s currency is exchanged for the currency of another country. For example, if you can buy 10 Mexi-can pesos for 1 U.S. dollar, then the exchange rate for the peso is 10. A country has a   xed exchange rate  if it pegs its currency at a given exchange rate and stands ready to defend that rate. ",sam,1,45.8,13.2,12.5,8.36,12.7,9.46,8.2,11.7
Fractional-reserve banking,A regu-lation in modern banking systems  nancial institutions are legally required to keep a speci- ed fraction of their deposits in the form of deposits with the cen-tral bank @or in vault cash@.,sam,1,46.44,15,0,10.92,18.3,12.93,18.5,14.41
Free goods,"Those goods that are not  economic goods.  Like air or seawater, they exist in such large quantities that they need not be rationed out among those wishing",sam,1,60.99,11.5,0,9.87,14.2,8.48,7.25,15.24
General-equilibrium analysis,"Analysis of the equilibrium state for the economy as a whole in which the markets for all goods and services are simultaneously in equilibrium. By contrast,  partial-equilibrium analysis  concerns the equilibrium in a single market.     ",sam,1,11.41,16,0,14.27,13.7,8.56,12.75,11.57
GNP,See  gross national product.,sam,1,33.58,9.6,0,10.15,8.8,15.68,2,11.6
Gold standard,"A system under which a nation @1@ declares its currency unit to be equivalent to some  xed weight of gold, @2@ holds gold reserves against its money, and @3@ will buy or sell gold freely at the price so proclaimed, with no restrictions on the export or import of gold.     ",sam,1,37.65,20.4,0,7.74,24.1,11.8,28,22.4
Government debt,The total of gov-ernment obligations in the form of bonds and shorter-term borrow-ings.,sam,1,49.82,9.5,0,13.5,12.2,12.78,10.5,8.28
"Gross domestic product, nominal ","The value, at current market prices, of the total fi nal output produced inside a country during a given year.",sam,1,59.64,9.9,0,8.24,10,10.16,9,8
"Gross domestic product, real ",The quantity of goods and services produced in a nation during a year. Real GDP takes nominal GDP and corrects for price increases.,sam,1,68.26,6.6,0,8.51,6.6,10.39,6.25,9.82
"Gross national product, real ","Nominal GNP corrected for infl ation; i.e., real GNP equals nominal GNP divided by the  GNP defl ator. This was the cen- tral accounting concept in earlier  times but has been replaced by gross domestic product.",sam,1,53.21,10.3,0,9.34,10.3,13.3,12.5,13.87
Full employment,"A term that is used in many senses. Historically, it was taken to be that level of employ-ment at which no @or minimal@ involuntary unemployment exists. Today, economists rely upon the concept of the  nonaccelerating  ation rate of unemployment  @ ",sam,1,32.9,11.9,12.5,11.12,9.8,9.54,8.333333333,11.35
NAIRU,@ to indicate the highest sustainable level of employment over the long run.      G     Gains from trade.    The aggregate increase in welfare accruing from voluntary exchange; equal to the sum of consumer surplus and  ts.,sam,1,3.13,21.3,0,12.31,19.8,11.82,6.833333333,20.66
Galloping inflation,See   ation.      Game theory.    An analysis of situ-ations involving two or more decision makers with at least  icting interests. It can be applied to the interaction of oligopolistic markets as well as to bargaining situations such  icts such as games and war.,sam,1,24.78,15,0,11.02,12.6,11.45,15,16.02
GDP deflator,"The “price” of GDP, i.e., the price index that measures the average price of the compo-nents in GDP relative to a base year.  decomposes the growth of output into the growth in labor, land, cap-ital, education, technical knowl-edge, and other miscellaneous sources.      H     ",sam,1,2.45,23.6,0,11.91,24.6,12.75,29.5,22.78
Hedging,"A technique for avoiding a risk by making a counteract-ing transaction. For example, if a farmer produces wheat that will be harvested in the fall, the risk of  uctuations can be offset, or hedged, by selling in the spring or summer the quantity of wheat that will be produced.     ",sam,1,46.61,12.8,0,9.17,12.7,9.69,15.25,14.7
Herfindahl-Hirschman Index HHI,A measure of market power often used in analysis of market struc-ture. It is calculated by summing the squares of the percentage market shares of all participants in a market.,sam,1,56.25,9.1,0,9.79,9,9.12,8.5,11.33
Perfect competition,"would have an HHI of near zero, while complete monopoly has an HHI of 10,000.     ",sam,1,56.25,9.1,0,5.33,5.9,10.7,7.5,8.67
High-powered money,Same as  mon-etary base.,sam,1,50.5,7.2,0,2.9,4.1,11.73,2,1.6
Horizontal equity vs vertical equity,Horizontal equity  refers to the fair-ness or equity in treatment of persons in similar situations; the principle of horizontal equity states that those who are essentially equal should receive equal treat-ment.,sam,1,14.63,18.9,0,16.26,21.4,10.78,24.5,20.14
Vertical equity,refers to the equitable treatment of those who are in different circumstances.,sam,1,59.3,8,0,13.73,10.9,9.5,8,11.47
Horizontal integration,"See  integra-tion, vertical vs. horizontal.      ",sam,1,-136.65,33.6,0,17.72,16.9,19.67,4.5,26
Horizontal merger,See  merger.,sam,1,35.61,8.8,0,-4.51,3.1,11.63,0,0.8
Human capital,"The stock of tech-nical knowledge and skill embod-ied in a nation’s workforce, resulting from investments in formal education and on-the-job training.     ",sam,1,7.86,17.4,0,16.94,18.2,14.45,16.5,14.11
Hyperinflation,See   Inflation.,sam,1,-49,20.6,0,4.2,10.2,11.63,1,20.8
Industry,A group of fi rms producing similar or identical products.,sam,1,52.87,8.4,0,9.08,6.6,13.61,7,16
Inferior good,A good whose con-sumption goes down as income rises.,sam,1,79.26,4.4,0,8.03,6.1,9.35,4.5,3.6
Inflation," @ or  inflation rate@.    The  ation rate is the percentage of annual increase in a general price level.   ation  a-tion at extremely high rates @say, 1000, 1 million, or even 1 billion percent a year@.   ation  is a rate of 50 or 100 or 200 per-cent annually.   ation  is a price-level rise that does not distort relative prices or incomes severely.     ",sam,1,-6.35,29.1,0,8.84,30.2,12.4,19.25,28.67
Innovation,"A term particularly asso-ciated with Joseph Schumpeter, who meant by it @1@ the bringing  -cantly different product, @2@ the introduction of a new production technique, or @3@ the opening up of a new market. @Contrast with  invention. @     ",sam,1,8.54,21.3,0,11.85,22.1,12.73,25,19.12
Inputs,Commodities or services  rms in their production processes; also called  factors of production.   change in income. @Compare with  price elasticity of demand. @,sam,1,15.31,16.6,0,16.19,18.1,11.19,16.5,16.07
Indexing,"A mecha-nism by which wages, prices, and contracts are partially or wholly adjusted to compensate for changes in the general price level.     ",sam,1,32.22,14.2,0,12.24,14.4,11.9,16,14.25
Indifference curve,A curve drawn on a graph whose two axes mea-sure amounts of different goods consumed. Each point on one curve @indicating different com-binations of the two goods@ yields exactly the same level of satisfac-tion for a given consumer.,sam,1,52.19,10.7,0,11.43,12.2,10.4,12.5,11.81
Indifference map,"A graph showing a family of indifference curves for a consumer. In general, curves that lie farther northeast from the graph’s origin represent higher levels of satisfaction.     ",sam,1,32.39,12.1,0,13.27,11.1,11.32,8.25,9.84
Indirect taxes,See  direct taxes.,sam,1,34.59,9.2,0,1.52,3.6,9.05,0.5,1.2
Imperfect competitor,Any firm that buys or sells a good in large enough quantities to be able to affect the price of that good.,sam,1,91.45,6,0,4.88,7.8,8.32,12,10.62
Inappropriability,See  inappropriable.,sam,1,-91.3,26.5,0,18.7,22,11.63,1,20.8
Inappropriable,"Term applied to resources for which the individual cost of use is free or less than the full social costs. These resources are characterized by the presence of externalities, and thus markets  ciently from a social point of view.     ",sam,1,51.68,10.9,0,10.5,11.3,9.06,11.25,10.88
Incidence,"@ or  tax incidence@.    The ultimate economic effect of a tax on the real incomes of producers or consumers @as opposed to the legal requirement for payment@. Thus a sales tax may be paid by a retailer, but it is likely that the inci-dence falls upon the consumer. The exact incidence of a tax depends on the price elasticities of supply and demand.     ",sam,1,42,12.5,13,8.36,10.5,10.01,10.125,12.8
Insurance,"A system by which indi-viduals can reduce their exposure to risk of large losses by spreading the risks among a large number of persons.     Integration, vertical vs. horizon-tal.    The production process is one of stages—e.g., iron ore into steel ingots, steel ingots into rolled steel sheets, rolled steel sheets into an automobile body.  ",sam,1,9.22,25.1,0,13.07,30,13.12,11.16666667,24.97
Vertical integration," is the combination in  rm of two or more dif-ferent stages of this process @e.g., iron ore with steel ingots@.  Horizon-tal integration  is the combination  rm of different units that operate at the same stage of production.     Intellectual property rights.    Laws governing patents, copyrights, trade secrets, electronic media, and other commodities comprised primarily of information. These laws generally provide the original creator the right to control and be compensated for reproduction of the work.     ",sam,1,0.08,22.4,0,15.27,24.1,13.15,11.2,22.91
International,monetary system @ also  international financial sys-tem@.    The institutions under which payments are made for transactions that reach across national boundaries. A central policy issue concerns the arrange-ment for determining how foreign exchange rates are set and how governments can affect exchange rates.,sam,1,16.32,16.2,0,18.22,18.7,12.57,10.5,16.97
Intervention,"An activity in which a government buys or sells its cur-rency in the foreign exchange market in order to affect its cur-rency’s exchange rate.     Intrinsic value  @of money@.   The commodity value of a piece of money @e.g., the market value of the weight of copper in a copper coin@.     ",sam,1,4.82,24.8,0,9.3,25.1,10.26,10.16666667,22.05
Invention,The creation of a new product or discovery of a new pro-duction technique. @Distinguish from  innovation. @,sam,1,29.86,13.1,0,13.22,13.1,12.33,12.5,13.9
Investment,"@1@ Economic activity that forgoes consumption today with an eye to increasing output in the future. It includes tangible capital such as houses and intan-gible investments such as educa-tion.  Net investment  is the value of total investment after an allow-ance has been made for deprecia-tion.  Gross investment  is investment without allowance for deprecia- nance terms, “invest-ment” has an altogether different meaning and denotes the pur-chase of a security, such as a stock or a bond.     ",sam,1,8.03,21.5,0,14.11,23.3,12.23,14.125,20.87
Invisible hand,"A concept introduced by Adam Smith in 1776 to describe the paradox of a laissez-faire mar-ket economy. The invisible-hand doctrine holds that, with each par-ticipant pursuing his or her own private interest, a market system  t of all as though a benevolent invis-ible hand were directing the whole process.     ",sam,1,29.69,15.2,0,12.36,15.5,13.23,17.25,16.33
Involuntarily unemployed,See  unem-ployment.,sam,1,-49,20.6,0,12.9,19.6,19.53,1,0.8
Isoquant,See  equal-product curve.,sam,1,34.59,9.2,0,13.12,14.6,9.05,1.5,1.2
Keynesian economics,"The body of macroeconomic analysis devel-oped by John Maynard Keynes holding that a market economy does not automatically tend toward a full-employment equi-librium. According to Keynes, the resulting underemployment equi- scal or monetary policies to raise aggre-gate demand.     Keynesian macroeconomics.    A the-ory of macroeconomic activity used to explain business cycles. It relies on an upward-sloping aggre-gate supply curve, so that changes in aggregate demand can affect output and employment.     Keynesian school.    See  ",sam,1,-3.65,19.7,18.6,17.82,19.9,12.28,14.5,17.93
Labor force,"In official U.S. statis-tics, that group of people 16 years of age and older who are either employed or unemployed.     ",sam,1,34.26,13.5,0,9.11,11.2,12.52,13,12
Labor-force participation rate,The ratio of those in the labor force to the entire population 16 years of age or older.,sam,1,70.13,8,0,4.99,6.1,11.55,9,9.42
Labor productivity,See  productivity.,sam,1,-91.3,26.5,0,12.9,17.3,11.63,1,20.8
Labor supply,"The number of workers @or, more generally, the number of labor-hours@ available to an econ-omy. The principal determinants of labor supply are population, real wages, and social traditions.     Labor theory of value.    The view, often associated with Karl Marx, that every commodity should be valued solely according to the quantity of labor required for its production.     ",sam,1,9.22,18.9,0,13.58,18.6,12.07,9,19.06
Laissez-faire “Leave us alone”,"    The view that government should  interfere as little as possible in eco- nomic activity and leave decisions  to the marketplace. As expressed by classical economists like Adam Smith, this view held that the role of government should be limited to maintenance of law and order, national defense, and provision  of certain public goods that pri- vate business would not under- take (e.g., public health and  sanitation).",sam,1,29.52,17.3,0,12.83,20,10.3,23.5,19.87
Law of diminishing marginal utility,"See  diminishing marginal utility, law of.      Law of diminishing returns.    See  diminishing returns, law of.      Law of downward-sloping demand.    The nearly universal observation that when the price of a com-modity is raised @and other things are held constant@, buyers buy less of the commodity. Similarly, when the price is lowered, other things being constant, quantity demanded increases.     ",sam,1,-8.22,21.5,0,14.45,19.7,10.87,6.083333333,19.12
Least-cost rule,@of production@.   The rule that the cost of producing  c level of output is mini-mized when the ratio of the mar-ginal revenue product of each input to the price of that input is the same for all inputs.,sam,1,41.37,16.9,0,7.44,17.9,10.92,23,17.31
Liabilities,"In accounting, debts or  nancial obligations owed to other  rms or persons.     ",sam,1,8.53,15.1,0,10.83,8.9,13.44,7,11.47
Libertarianism,An economic philos-ophy that emphasizes the impor-tance of personal freedom in economic and political affairs; also sometimes called “liberalism.”,sam,1,-7.04,19,0,20.59,19.8,13.72,17.5,18.13
Limited liability,The restriction of an owner’s loss in a business to the amount of capital that the owner has contributed to the company.,sam,1,57.61,10.7,0,8.53,10.8,6.88,15,12.44
Long run,"A term used to denote a period over which full adjust-ment to changes can take place. In microeconomics, it denotes  rms can enter or leave an industry and the capital stock can be replaced. In macroeconomics, it is often used to mean the period over which all prices, wage contracts, tax rates, and expectations can fully adjust.     ",sam,1,60.65,9.5,12.5,9.57,10.6,9.01,12.16666667,11.11
Long-run aggregate supply schedule,"A schedule showing the relation-ship between output and the price level after all price and wage adjustments have taken place, and the AS curve is therefore vertical.     ",sam,1,35.61,15,0,12.42,16.5,9.65,16.5,15.24
Lorenz curve,"A graph used to show the extent of inequality of income or wealth.      M     M   1  .   See  money supply.      Macroeconomic equilibrium.    Refer to  equilibrium, macroeconomic.      ",sam,1,-72.35,29.6,0,12.02,15.8,10.56,3.5,14.8
Macroeconomics,"Analysis dealing with the behavior of the economy as a whole with respect to output, income, the price level, foreign trade, unemployment, and other aggregate economic variables. @Contrast with  microeconomics. @     Malthusian theory of population growth.     rst expressed by Thomas Malthus, that the “natural” tendency of popula-tion is to grow more rapidly than the food supply. Per capita food production would thus decline over time, thereby putting a check on population. In general, a view that population tends to grow more rapidly as incomes or living standards of the population rise.     ",sam,1,24.11,17.4,16.7,14.17,19.5,11.27,20.83333333,17.78
Managed exchange rate,"The most prevalent exchange-rate system today. In this system, a country occasionally intervenes to stabilize  xed or announced parity.     ",sam,1,2.61,15.3,0,15.11,12.1,10.76,6.25,12.22
Marginal cost,"Refer to  cost, marginal.      ",sam,1,-93.33,27.3,0,4.35,5.3,11.73,2,11.6
Marginal principle,The fundamen-tal notion that people will maxi- ts when the marginal costs and marginal  ts of their actions are equal.,sam,1,51.18,11.1,0,10.27,11.6,10.94,13,10
Marginal product,MP   @.    The extra output resulting from 1 extra  ed input when all other inputs are held constant. Sometimes called  marginal physical product.,sam,1,26.47,12.3,0,11.35,9.1,12.79,6.25,9.85
Marginal product theory of distribution,"A theory of the distribu-tion of income proposed by John B. Clark, according to which each productive input is paid according to its  marginal product.      ",sam,1,24.95,12.9,0,10.14,8.6,11.84,8.25,11.4
Marginal propensity to import,"Mpm  @.    In macroeconomics, the increase in the dollar value of imports resulting from each dollar increase in the value of GDP.     ",sam,1,16.32,16.2,0,10.62,12.6,9.19,13,12.21
Marginal propensity to save,"MPS   @.    That fraction of an additional dollar of disposable income that  nition,  MRC  MPS  1.      Marginal revenue @  MR   @.    The addi- rm would earn if it sold 1 extra unit of output. In perfect competition,  MR  equals price. Under imperfect competi-tion,  MR  is less than price because, in order to sell the extra unit, the price must be reduced on all prior units sold.     ",sam,1,16.32,16.2,11.2,8.3,11.1,10.44,6.8,11.57
Marginal revenue product,"MRP  @  @of an input@.   Marginal revenue multiplied by marginal product. It is the extra revenue that would sam11290_glo.indd   666sam11290_glo.indd   6662/24/09   2:58:32 PM2/24/09   2:58:32 PM  667 rm were to buy 1 extra unit of an input, put it to work, and sell the extra product it produced.     ",sam,1,31.21,14.6,0,10.51,14.4,12.33,7.833333333,12.68
Marginal tax rate,"For an income tax, the percentage of the last dollar of income paid in taxes. If a tax sys-tem is progressive, the marginal tax rate is higher than the average tax rate.     Marginal utility @  MU    @.    The addi-tional or extra satisfaction yielded from consuming 1 additional unit of a commodity, with amounts of all other goods consumed held constant.     ",sam,1,16.66,18.1,0,10.8,16.3,11.06,10.25,17.81
Marxism,"The set of social, political, and economic doctrines devel-oped by Karl Marx in the nine-teenth century. As an economic theory, ",sam,1,35.95,10.7,0,10.82,9,12.82,7,14
Mean,"In statistics, the same thing as “average.” Thus for the numbers 1, 3, 6, 10, 20, the mean is 8.     ",sam,1,59.64,9.9,0,2.73,6.7,12.52,12,12
Median,"In statistics, the fi gure exactly in the middle of a series of numbers ordered or ranked from lowest to highest (e.g., incomes or examination grades). Thus for the numbers 1, 3, 6, 10, 20, the median is 6.",sam,1,60.14,9.7,0,5.75,8.6,13.51,11.75,11.9
Mercantilism,"A political doctrine emphasizing the importance of balance-of-payments surpluses as a device to accumulate gold. Pro-ponents therefore advocated tight government control of economic policies, believing that laissez-faire policies might lead to a loss of gold.     ",sam,1,2.95,17.2,0,18.56,17.6,13.08,14.75,16.14
Merchandise trade balance,See  bal-ance of trade.,sam,1,75.88,3.7,0,1.45,2.9,11.73,1,1.6
Merger,"The acquisition of one cor-poration by another, which usually  rm buys the stock of another. Important exam-ples are @1@  vertical mergers,  which  rms are at different stages of a production process @e.g., iron ore and steel@, @2@  horizontal mergers,  which occur  rms produce in the same market @e.g., two automobile manufacturers@, and @3@  conglomer-ate mergers,  which occur when the  rms operate in unrelated markets @e.g., shoelaces and oil  ning@.     ",sam,1,11.08,20.3,0,12.31,21.5,11.98,25.25,19.6
Microeconomics,"Analysis dealing with the behavior of individual elements in an economy—such as the determination of the price of a single product or the behavior of a  rm. @Contrast with  macroeconomics. @     Minimum cost.    Refer to  cost, minimum.      Mixed economy.    The dominant form of economic organization in noncommunist countries. Mixed economies rely primarily on the price system for their economic organization but use a variety of government interventions @such as taxes, spending, and regula-tion@ to handle macroeconomic instability and market failures.     ",sam,1,-27.85,27,0,16.08,25.8,11.99,16,24.91
Model,A formal framework for rep-resenting the basic features of a complex system by a few central relationships.,sam,1,37.3,12.3,0,12.82,12.3,13.77,10.5,11.51
Momentary run,A period of time that is so short that production is  xed.,sam,1,76.22,5.6,0,3.58,2.6,8.18,7,11.47
Monetarism,A school of thought holding that changes in the money  supply are the major cause of mac- roeconomic fl uctuations.,sam,1,51.18,11.1,0,9.69,10.9,10.16,12,12
Monetary policy,"The objectives of the central bank in exercising its control over money, interest rates, and credit conditions. The instru-ments of monetary policy are pri-marily open-market operations, reserve requirements, and the dis-count rate.     ",sam,1,12.94,15.4,0,17.05,16.1,13.31,13.5,17.65
Monetary rule,A period of time that is so short that production is fixed.,sam,1,84.68,4.4,0,4.57,3.4,8.18,7,11.47
Monopolistic competition,"A market structure in which there are many sellers supplying goods that are close, but not perfect, substitutes.  rm can exercise some effect on its prod-uct’s price.     ",sam,1,35.61,15,0,11.78,16.3,10.82,17.5,15.24
Monopoly,A market structure in which a commodity is supplied  rm. Also see  natural monopoly.,sam,1,38.99,9.6,0,7.84,5.3,10.75,4,11.37
Monopsony,"The mirror image of monopoly: a market in which there is a single buyer; a “buyer’s monopoly.”     Moral hazard.    A type of market failure in which the presence of insurance against an insured risk increases the likelihood that the risky event will occur. For example, a car owner insured 100 percent against auto theft may be careless about locking the car because the presence of insurance reduces the incentive to prevent the theft.     MPC .   See  marginal propensity to consume.      MPS .   See  marginal propensity to save.      ",sam,1,2.96,23.4,0,11.85,23.4,11.32,10.9,20.76
Multiplier,"A term in macroeconom-ics denoting the change in an induced variable @such as GDP or money supply@ per unit of change in an external variable @such as government spending or bank reserves@. The  expenditure multiplier  denotes the increase in GDP that would result from a $1 increase in expenditure @say, on investment@.     ",sam,1,36.63,14.6,0,11.55,15.7,10.7,17,14.25
Nash equilibrium,"In game theory, a set of strategies for the players where no player can improve his or her payoff given the other play-er’s strategy. That is, given player A’s strategy, player B can do no better, and given B’s strategy, A can do no better. The Nash equi-librium is also sometimes called the  noncooperative equilibrium.      ",sam,1,35.98,12.8,11.9,9.63,10.4,8.85,11.5,10.96
National debt,Same as  government debt.,sam,1,50.5,7.2,0,5.8,5.3,7.78,2,1.6
National income and product accounts," @NIPA@.    A set of accounts that measures the spending, income, and output of the entire nation for a quarter or a year.     National saving rate.    Total saving, private and public, divided by net domestic product.     ",sam,1,-6.36,22.8,0,10.34,19.3,11.69,5.833333333,17.43
Natural monopoly,"A firm or industry whose average cost per unit of  production falls sharply over the entire range of its output, as, e.g., in local electricity distribution.",sam,1,45.09,13.4,0,10.91,15.3,14.04,18,16.55
Natural rate of unemployment,The same concept as the  nonacceler- ation rate of unemploy-ment @,sam,1,44.41,9.6,0,11.4,9.5,12.03,6.5,12
Net domestic product NDP,GDP less an allowance for depreciation of capital goods.,sam,1,45.42,9.2,0,11.22,8.2,9.35,5.5,8.04
Net exports,"In the national product accounts, the value of exports of goods and services minus the value of imports of goods and services.     ",sam,1,40.69,13.1,0,9.86,12,9.75,12,10.62
Net foreign investment,Net saving by a country abroad; approxi-mately equal to net exports.     Net investment.    Gross investment minus depreciation of capital goods.,sam,1,-8.05,19.3,0,15.78,16.6,11.73,6.5,12
Net worth,"In accounting, total assets minus total liabilities.     New classical macroeconomics.    A theory which holds that @1@ prices  exible and @2@ peo-ple make forecasts in accordance with the  rational-expectations hypothesis.      ",sam,1,-42.57,26.4,0,18.52,23.3,15.96,6.833333333,25.39
Nonaccelerating inflation rate of unemployment,"An unem- ployment rate that is consistent  with a constant infl ation rate. At the NAIRU, upward and downward forces on price and wage infl ation  are in balance, so there is no ten- dency for infl ation to change. The  NAIRU is the unemployment rate at which the long-run Phillips curve is vertical.",sam,1,70.13,8,8.8,7.77,8.9,8.92,9,9.42
Phillips curve,"A graph, fi rst devised by A. W. Phillips, showing the tradeoff between unemployment  and infl ation. In modern main- stream macroeconomics, the  downward-sloping “tradeoff” Phil- lips curve is generally held to be  valid only in the short run; in the  long run, the Phillips curve is usu- ally thought to be vertical at the  nonaccelerating infl ation rate of unemployment (NAIRU).",sam,1,50.46,11.4,12.5,10.85,12.9,11.03,13,11.51
Noncooperative equilibrium,See Nash equillibrium,sam,1,9.21,12.7,0,11.15,9.9,14.31,1.5,14.53
Nonrenewable resources,"Those natural resources, like oil and gas,  that are essentially fi xed in sup- ply and whose regeneration is not  quick enough to be economically relevant.",sam,1,36.63,14.6,0,10.91,14.9,11,18,18.09
Not in the labor force,That part of the adult population that is neither working nor looking for work.      O,sam,1,47.79,10.3,0,7.65,7.1,9.64,7.5,8.67
Okun’s Law,"The empirical relation-ship, discovered by Arthur Okun, between cyclical movements in GDP and unemployment. The law states that when actual GDP declines 2 percent relative to potential GDP, the unemployment rate increases by about 1 per-centage point. @Earlier estimates placed the ratio at 3 to 1.@     ",sam,1,31.21,14.6,0,13.76,16.1,13.02,17.5,18.77
Oligopoly," A situation of imperfect competition in which an industry is dominated by a small number of suppliers.     Open economy.    An economy that engages in international trade @i.e., imports and exports@ of goods and capital with other coun-tries. A  closed economy  is one that has no imports or exports.     ",sam,1,13.28,17.4,0,11.32,14.5,9.76,11.66666667,16.27
Open-market operations,"The activity of a central bank in buying or  u-ence bank reserves, the money supply, and interest rates. If secu-rities are bought, the money paid out by the central bank increases commercial-bank reserves, and the money supply increases. If securities are sold, the money sup-ply contracts.     ",sam,1,39.03,11.6,11.9,11.53,11.3,10.23,9,10.47
Opportunity cost,"The value of the best alternative use of an economic good. Thus, say that the best alter-native use of the inputs employed to mine a ton of coal was to grow 10 bushels of wheat. The oppor-tunity cost of a ton of coal is thus the 10 bushels of wheat that  could  have been produced but were not. ",sam,1,77.27,7.3,9.7,5.63,7.3,7.86,11,9.79
Ordinal utility,A dimensionless util-ity measure used in demand the-ory.,sam,1,21.06,12.3,0,13.7,11.4,13.9,6,8.2
Outputs,"The various useful goods or services that are either consumed or used in further production.      P     Paradox of thrift.    The principle,  rst proposed by John Maynard Keynes, that an attempt by a soci-ety to increase its saving may result in a reduction in the amount which it actually saves.     Paradox of value.    The paradox that many necessities of life @e.g., water@ have a low “market” value while many luxuries @e.g., dia-monds@ with little “use” value have a high market price. It is explained  ects not the total utility of a commodity but its marginal utility.     ",sam,1,6.34,24.2,0,10.52,25.2,11.64,10.08333333,23.21
Pareto efficiency or Pareto optimality,"A situation in which no reor-ganization or trade could raise the utility or satisfaction of one indi-vidual without lowering the utility or satisfaction of another individ-ual. Under certain limited condi-tions, perfect competition leads  ciency. Also called  allocative ef ciency.      Partial-equilibrium analysis.    Analy-sis concentrating on the effect of changes in an individual market, holding other things equal @e.g., disregarding changes in income@.     ",sam,1,-16.82,20.6,17.9,18.1,18.8,13.19,12.625,17.96
Partnership,An association of two or more persons to conduct a business which is not in corporate form and does not enjoy limited liability.,sam,1,39.67,13.4,0,9.52,11.8,8.9,15.5,16.16
Patent,"An exclusive right granted to an inventor to control the use of an invention for, in the United States, a period of 20 years. ",sam,1,55.58,11.5,0,6.97,10.6,10.09,16,16.27
Payoff table,"In game theory, a table used to describe the strategies and payoffs of a game with two or  ts or utili-ties of the different players are the  payoffs.      ",sam,1,34.6,15.4,0,7.43,12.9,8.97,17,12.63
Payoffs,See  payoff table.,sam,1,34.59,9.2,0,1.52,3.6,9.05,0.5,1.2
Policy-ineffectiveness,"A theorem which asserts that, with  ex-ible prices and wages, anticipated government monetar scal policy cannot affect real output or unemployment.     Portfolio theory.    An economic theory that describes how ratio-nal investors allocate their wealth  nancial assets—that is, how they put their wealth into a “portfolio.”     Positive economics.    See  normative vs. positive economics.      ",sam,1,-48.99,33,0,18.18,33.6,14.41,15.33333333,30.03
Post hoc fallacy,"From the Latin,  post hoc, ergo propter hoc,  which translates as “after this, therefore because of this.” This fallacy arises when it is assumed that because event A precedes event B, it follows that A  causes  B.     Potential GDP.    High-employment GDP; more precisely, the maxi-mum level of GDP that can be sustained with a given state of tech-nology and population size without  ation. Today, it is generally taken to be equivalent to the level of output corresponding to the   ation rate of unemployment ",sam,1,20.89,20.7,0,11.51,22.8,11.4,17.5,21.42
Potential output,is not necessarily maximum output.,sam,1,-1.29,14.7,0,11.92,9.3,13.36,3.5,18
Poverty,"Today, the U.S. government  nes the “poverty line” to be the minimum adequate standard of living.     PPF.    See  production-possibility fron-tier.      Present value  @of an asset@.   Today’s value for an asset that yields a stream of income over time. Val-uation of such time streams of returns requires calculating the present worth of each component of the income, which is done by applying a discount rate @or inter-est rate@ to future incomes.     ",sam,1,10.57,20.5,0,11.96,20.6,11.69,7.8,18
Price,"The money cost of a good, service, or asset. ",sam,1,79.26,4.4,0,2.23,1.9,5.84,3.5,3.6
Private good,"See  public good.      Producer price index.    The price index of goods sold at the whole-sale level @such as steel, wheat, oil@.     Producer surplus.    The difference between the producer sales rev-enue and the producer cost. The producer surplus is generally mea-sured as the area above the supply curve but under the price line up to the amount sold.     ",sam,1,25.63,16.8,0,10.57,16.3,8.1,6.1,12.8
"Product, average",Refer to  average product.,sam,1,8.2,13.1,0,7.25,6.5,15.68,2,11.6
"Product, marginal",Refer to  marginal product.      Product differentiation.    The exis-tence of characteristics that make similar goods less-than-perfect substitutes. Thus locational dif-ferences make similar types of gasoline sold at separate points imperfect substitutes.,sam,1,-19.9,19.8,0,22.73,20.3,13.33,8,15.33
Production function,"A relation @or mathematical function@ specifying the maximum output that can be produced with given inputs for a given level of technology; applies  rm or, as an aggregate pro-duction function, to the economy as a whole.     ",sam,1,1.1,22.1,0,11.85,20.6,12,26,22.18
Production-possibility frontier,"PPF   @.    A graph showing the menu of goods that can be produced by an economy. In a frequently cited case, the choice is reduced to two goods, guns and butter. Points out-side the  PPF  @to the northeast of it@ are unattainable. Points inside  cient since resources are not being fully employed, resources are not being used prop-erly, or outdated production tech-niques are being utilized.     ",sam,1,46.78,10.7,9.5,10.15,10.2,10.1,8.375,8.9
Productive efficiency,A situation in which an economy cannot pro-duce more of one good without producing less of another good; this implies that the economy is on its production-possibility frontier.,sam,1,26.14,16.6,0,13.23,17.8,10.1,20,18.34
Productivity,A term referring to the ratio of output to inputs @total out-put divided by labor inputs is  labor productivity @.,sam,1,26.81,14.2,0,10.21,11.4,11.23,13,13.92
"Progressive, proportional, and regresive taxes","A progressive tax  weighs more heavily upon the rich; a regressive tax does the opposite. More precisely, a tax is progressive if the average tax rate (i.e., taxes divided by income) is higher for those with higher incomes; it is a regressive tax if the average tax rate declines with higher incomes; it is a proportional tax if the average tax rate is equal at all income levels.",sam,1,45.43,15.4,0,9.01,17.2,8.81,23,18.31
Property rights,"Rights that define the ability of individuals or firms  to own, buy, sell, and use the capital goods and other property in a  market economy.",sam,1,37.64,14.2,0,8.77,12.7,9.3,17.5,16.4
Proportional tax,"See  progressive, proportional, and regressive taxes.      Proprietorship, individual.    A busi- rm owned and operated by one person.     ",sam,1,-55.77,25.3,0,17.22,17.3,13.77,6.25,20.92
Protectionism,"Any policy adopted by a country to protect domestic industries against competition from imports @most commonly, a tariff or quota imposed on such imports@.     Public choice @ also  public-choice theory@.    Branch of economics and political science dealing with the way that governments make choices and direct the economy. This theory differs from the the-ory of markets in emphasizing  uence of vote maximizing for politicians, which contrasts to   rms.     ",sam,1,3.63,21.1,0,14.98,21.9,11.66,12.25,20.56
Public debt,"See  government debt.      Public good.    A commodity whose  ts are indivisibly spread among the entire community, whether or not particular individ-uals desire to consume the public good. For example, a public-health measure that eradicates polio pro-tects all, not just those paying for the vaccinations. To be contrasted with  private goods,  such as bread, which, if consumed by one person, cannot be consumed by another person.     Pure economic rent.    See  rent, economic.       Q     ",sam,1,4.82,18.6,15,13.12,16.2,9.87,7.166666667,15.16
Quantity demanded,See  change in demand vs. change in quantity demanded.,sam,1,53.88,8,0,8.67,6.6,11.1,5.5,12.49
Quantity equation of exchange,"A tau-tology,   MV  PQ ,  where  M  is the money supply,  V  is the income veloc-ity of money, and  PQ  @price times quantity@ is the money value of total output @nominal ",sam,1,7.19,19.7,0,6.69,14,12.49,19.5,16
Quantity theory of money and prices,A theory of the determination of output and the overall price level holding that prices move propor-tionately with the money supply. A more cautious approach put forth by monetarists holds that the money supply is the most impor-tant determinant of changes in nominal GDP @see  monetarism @.,sam,1,39.67,13.4,0,13,15,11.64,15.75,15.29
Quota,"A form of import protection-ism in which the total quantity of imports of a particular commodity @e.g., sugar or cars@ during a given period is limited.      R     ",sam,1,1.77,19.7,0,9,14.4,13.16,19.5,19.69
Random-walk theory,@of stock market prices@.   See  efficient market.,sam,1,30.53,10.7,0,10.74,9.7,8.5,1.25,8.51
Rate of inflation,See   infation.,sam,1,-49,20.6,0,1.3,7.8,11.63,1,20.8
Rate of return or return on capital,"The yield on an investment or on a capital good. Thus, an investment costing $100 and yield-ing $12 annually has a rate of return of 12 percent per year.     ",sam,1,56.76,8.9,0,5.91,6.1,9.8,8.25,8.56
Rate of return on investment,"The net dollar return per year for every dollar of invested capital. For example, if $100 of invest-ment yields $12 per year of return, the rate of return on investment is 12 percent per year.     Rational expectations.    See  expec-tations.      Rational-expectations hypothesis.    A hypothesis which holds that peo-ple make unbiased forecasts and, further, that people use all avail-able information and economic theory to make these forecasts.     ",sam,1,-3.82,21.9,0,14.63,21.5,11.08,15.83333333,19.15
Rational-expectations macroeconomics,A school holding that markets clear quickly and that expecta-tions are rational. Under these and other conditions it can be shown that predictable macro-economic policies have no effect on real output or unemployment. Sometimes called  new classical macroeconomics.,sam,1,41.66,10.6,11.9,15.7,13,11.33,7.666666667,12.45
Real-business-cycle RBC theory,"A theory that explains business cycles purely as shifts in aggregate supply, primarily due to techno-logical disturbances, without any reference to monetary or other demand-side forces.     ",sam,1,-5.68,20.5,0,17.58,20.5,14.04,21,21.17
Real interest rate,The interest rate measured in terms of goods rather than money. It is thus equal to the money @or nominal@ interest rate  ation.,sam,1,76.72,5.4,0,7,5.8,8.33,6.25,8.08
Real wages,The purchasing power of a worker’s wages in terms of goods and services. It is measured by the ratio of the money wage rate to the consumer price index.,sam,1,82.14,5.4,0,6.55,6,9.8,6.75,7.18
Recession,"A period of significant decline in total output, income, and employment, usually last-ing from 6 months to a year and marked by widespread contrac-tions in many sectors of the econ-omy. See also  depression.      ",sam,1,29.35,13.3,0,11.6,11.6,13.07,11.75,12.66
Regressive tax,"See  progressive, pro-portional, and regressive taxes.      ",sam,1,-95.36,28.1,0,21.68,19.3,17.09,5,22.4
Regulation,"Government laws or rules designed to control the behavior of  rms. The major kinds are  economic regulation  @which affects the prices, entry, or service of a single indus-try, such as telephone service@ and  social regulation  @which attempts to correct externalities that prevail across a number of industries, such as air or water pollution@.     Renewable resources.    Natural re-sources @like agricultural land@ whose services replenish regularly and which, if properly managed, can yield useful ser nitely.  sam11290_glo.indd   672sam11290_glo.indd   6722/24/09   2:58:33 PM2/24/09   2:58:33 PM  673   ",sam,1,-3.99,24,0,17.07,27.9,14.34,18.66666667,23.23
"Rent, economic ","Term applied to income earned from land. The total sup-ply of land available is @with minor  cations@  xed, and the return paid to the landowner is rent. The term is often extended to the return paid to any factor  xed supply—i.e., to any input having a perfectly inelastic or ver-tical supply curve.     ",sam,1,53.92,10,9.7,8.64,9.5,10.26,9,9.23
Required reserve ratio,"That portion of deposits that a bank sets aside in the form of vault cash or non-interest-earning deposits with Fed-eral Reserve Banks. In the United States, banks are required to hold 10 percent of checking deposits @or transactions accounts@ in the form of reserves.     ",sam,1,57.61,10.7,0,11.31,13.6,10.83,12.5,10.62
Resource allocation,The manner in which an economy distributes its resources @its factors of production@ among the potential uses so as to produce a particular set of  nal goods.,sam,1,44.07,13.8,0,10.51,14.9,11.41,18.5,18.21
Returns to scale,"The rate at which output increases when all inputs are increased proportionately. For example, if all the inputs double and output is exactly doubled, that process is said to exhibit  constant returns to scale.  If, however, output grows by less than 100 percent when all inputs are doubled, the process shows  decreasing returns to scale;  if output more than doubles, the process demonstrates  increas-ing returns to scale.      ",sam,1,29.01,17.5,0,13.01,20.2,10.48,13.83333333,16.98
Ricardian view of fiscal policy,"A theory developed by Harvard’s Robert Barro which holds that changes in tax rates have no impact upon consumption spending because households foresee, say, that tax cuts today will require tax increases  nance the govern-ment’ financing requirements.     ",sam,1,17,20.1,0,16.26,24.3,14.01,25.5,21.29
Risk,"Financial economics, refers to the variability of the returns on an investment.     ",sam,1,0.08,16.2,0,13.73,11.3,12.13,9,18.13
Saving function,The schedule show-ing the amount of saving that households or a nation will under-take at each level of income.,sam,1,60.65,9.5,0,10.21,11.1,8.73,10.5,7.6
Scarcity,"The distinguishing charac-teristic of an economic good. That an economic good is scarce means not that it is rare but only that it is not freely available for the taking. To obtain such a good, one must either produce it or offer other economic goods in exchange.     ",sam,1,55.54,9.4,10.5,8.58,8.2,7.77,8.5,8.83
Schedule,"@demand, supply, aggre-gate demand, aggregate supply@. Term used interchangeably with “curve,” as in demand curve, sup-ply curve, etc.     ",sam,1,28.5,11.5,0,14.76,13.7,11.1,5,8.04
Securities,"A term used to designate  nancial assets, such as stocks, bonds, options, and notes; more precisely, the docu-ments used to establish ownership of these assets.     ",sam,1,29.18,15.4,0,12.48,16.5,12.46,17.5,16.4
Short run,"A period in which not all factors can adjust fully. In micro-economics, the capital stock and  xed” inputs cannot be adjusted and entry is not free in the short run. In macroeconom-ics, prices, wage contracts, tax rates, and expectations may not fully adjust in the short run.     Short-run aggregate supply sched-ule.    The schedule showing the relationship between output and prices in the short run wherein changes in aggregate demand can affect output; represented by an upward-sloping or horizontal  AS  curve.     ",sam,1,27.45,16.1,14.6,12.83,17.1,11.08,10.4,14.68
Shutdown price,"In  the theory of the firm, the shut-down point comes at that point  where the market price is just sufficient to cover average variable cost and no more. Hence, the firm’s losses per period just equal its fixed costs; it might as well shut down.",sam,1,65.56,9.7,0,8.01,10.7,9.31,13.25,12.56
Single-tax movement,"A nineteenth-century movement, originated by Henry George, holding that continued poverty in the midst of steady economic progress was attributable to the scarcity of land  owing to land-owners. The “single tax” was to be a tax on economic rent earned from landownership.     ",sam,1,33.24,13.8,0,13.52,14.7,11.45,14.5,14.11
Slope,"In a graph, the change in the variable on the vertical axis per unit of change in the variable on the horizontal axis. Upward-sloping lines have positive slopes, downward-sloping curves @like demand curves@ have negative slopes, and horizontal lines have slopes of zero.     Social insurance.    Mandatory insur-ance provided by government to improve social welfare by prevent-ing the losses created by market failures such as moral hazard or adverse selection.     ",sam,1,11.08,20.3,0,14.69,22.1,12.67,16.5,19.02
Social overhead capital,"The essen-tial investments on which eco-nomic development depends, particularly for sanitation and drinking water, transportation, and communications; sometimes called  infrastructure.      ",sam,1,-50.35,25.3,0,28.25,27.2,15.68,19,22
Social regulation,See  regulation.,sam,1,-49,20.6,0,7.1,12.5,11.63,1,20.8
Socialism,"A political theory which holds that all @or almost all@ the means of production, other than labor, should be owned by the community. This allows the return on capital to be shared more equally than under capitalism.     ",sam,1,44.24,11.7,0,9.86,10.6,9.25,12.25,12.81
Speculator,"Someone engaged in speculation, i.e., someone who buys  nancial  ting from later selling @or buying@ the item at a higher @or lower@ price.     ",sam,1,31.21,14.6,0,9.75,13.6,13.02,12.5,10.94
Spillovers,Same as  externalities.,sam,1,-24.64,17.4,0,11.15,11.5,9.05,1.5,14.53
Stagflation,"A term, coined in the early 1970s, describing the coex-istence of high unemployment, or  stag  nation, with persistent in  ation . Its explanation lies pri-marily in the inertial nature of the  ationary process.     ",sam,1,21.4,14.3,0,12.7,12.3,13.31,11.75,13.9
Statistical discrimination,Treatment of individuals on the basis of the average behavior or characteristics of members of the group to which they belong. Statistical discrimina- lling by reduc-ing incentives for individuals to overcome the stereotype.,sam,1,20.89,14.4,0,15.48,14.2,11.63,12.75,15.08
"Stock, common",Refer to  common stock.,sam,1,50.5,7.2,0,2.9,2.9,11.73,1,1.6
Stock market,"An organized market-place in which common stocks are traded. In the United States, the largest stock market is the New York Stock Exchange, on which are traded the stocks of the largest U.S. companies.     ",sam,1,62.68,8.7,0,9.92,10.3,8.66,9,9.15
Stock vs flow,See flow vs. stock.,sam,1,118.18,-2.3,0,-2.91,-0.7,7.78,1,1.6
Strategic interaction,A situation in oligopolistic markets in which  rm’s business strategies depend upon its rival’s plans. A formal analysis of strategic interac-tion is given in  game theory.,sam,1,41.36,10.7,0,13.5,11.4,12.18,7.5,11.35
Structural budget,"See  actual, cyclical, and structural budget.      ",sam,1,-53.06,22.2,0,13.97,12.2,14.46,3,9.07
Structural  unemployment,"Unem-ployment resulting because the regional or occupational pattern of job vacancies does not match the pattern of worker availability. There may be jobs available, but unemployed workers may not have the required skill or the jobs may be in different regions from where the unemployed workers live.     ",sam,1,30.7,14.8,0,13.87,15.8,9.84,16.25,14.51
Subsidy,"A payment by a government  rm or household that pro-vides or consumes a commodity. For example, governments often subsidize food by paying for part of the food expenditures of low-income households.     ",sam,1,30.36,12.9,0,12.76,11.7,10.52,11.25,12.65
Substitutes,"Goods that compete with each other @as do gloves and mittens@. By contrast, goods that go together in the eyes of consum-ers @such as left shoes and right shoes@ are  complements.      ",sam,1,64.2,8.2,0,8.64,8.8,8.99,7.75,7.49
Substitution effect,@of a price change@.   The tendency of consumers to consume more of a good when its relative price falls @to “sub-stitute” in favor of that good@ and to consume less of the good when its relative price increases @to “substitute” away from that good@. This substitution effect of a price change leads to a downward-sloping demand curve. @Compare with  income effect. @,sam,1,48.98,14,0,10.8,17.2,9.03,13,15.48
Substitution rule,"A rule which asserts that if the price of one factor falls while all other factor prices remain   t by sub-stituting the now-cheaper factor for all the other factors. The rule is a corollary of the  least-cost rule.      Supply curve @   or      supply schedule@.    A schedule showing the quantity of a good that suppliers in a given market desire to sell at each price, holding other things equal.     ",sam,1,20.55,18.7,0,9.64,17.4,9.3,8.25,15.19
Supply shock,"In macroeconomics, a sudden change in production costs or productivity that has a large and unexpected impact upon aggre-gate supply. As a result of a sup-ply shock, real GDP and the price level change unexpectedly.     ",sam,1,28.33,13.7,0,11.42,11.7,10.37,11.75,12.71
Supply-shock inflation,"Ination origi-nating on the supply side of markets from a sharp increase in costs. In the aggregate supply-and-demand framework, cost-push is illustrated as an upward shift of the  AS  curve. Also called   ation.      ",sam,1,34.93,11.1,9.7,11.06,9.2,10.88,5.833333333,6.82
Supply-side economies,A view emphasizing policy measures to affect aggregate supply or poten-tial output. This approach holds that high marginal tax rates on labor and capital incomes reduce work effort and saving.      T,sam,1,30.36,12.9,0,12.53,11.2,14.08,10.75,11.36
Tangible assets,"Those assets, such as land or capital goods like comput-ers, buildings, and automobiles, that are used to produce further goods and services.     ",sam,1,32.22,14.2,0,12.76,15.2,9.75,14,10.62
Tariff,A levy or tax imposed upon each unit of a commodity imported into a country.,sam,1,56.25,9.1,0,5.73,5.5,9.64,8.5,11.33
Tax incidence,See  incidence.,sam,1,-6.7,14.7,0,4.2,10.2,11.63,1,20.8
Technological change,A change in the process of production or an introduction of a new product such that more or improved out-put can be obtained from the same bundle of inputs. It results in an outward shift in the production-possibility curve. Often called  tech-nological progress.,sam,1,56.96,8.9,9.7,11.01,9.9,9.49,7.5,9.44
Technological progress,See  techno-logical change.,sam,1,-24.64,17.4,0,16.95,17.8,14.31,1.5,14.53
Terms of trade,@in international trade@    .   The “real” terms at which a nation sells its export products and buys its import products. This measure equals the ratio of an index of export prices to an index of import prices.     Theory of income distribution.    A theory explaining the manner in which personal income and wealth are distributed in a society.,sam,1,26.14,16.6,0,11.09,15.9,10.38,6.3,16.2
Time deposit,"Funds, held in a bank, that have a minimum “time of with-drawal”; included in broad money but not in  M  1  because they are not accepted as a means of payment. Similar to  savings deposits.      ",sam,1,45.25,11.3,0,6.61,7.8,8.56,10.75,11.57
Total factor productivity,"An index of productivity that measures total output per unit of total input. The numerator of the index is total output @say, ",sam,1,43.39,9.9,0,8.16,6.3,10.64,5.5,8.04
Trade balance,or      merchandise trade balance.  See  balance of trade.,sam,1,-4.33,15.9,0,10.8,8.5,7.98,1.5,8.2
Trade barrier,Any of a number of pro-tectionist devices by which nations discourage imports.,sam,1,42.38,10.3,0,13.27,10.9,12.13,7,11.47
Transactions demand for money,"See  demand for money. Transactions money @  M   1 @.    A mea-sure of the  money supply  which consists of items that are actually for transactions, namely, currency and checking accounts.     ",sam,1,-1.96,17,0,11.77,11,11.66,5.333333333,9.89
"Transfer payments, government","Pay-ments made by a government to individuals, for which the individ-ual performs no current service in return. Examples are social secu-rity payments and unemployment insurance.     Treasury bills @T-bills@.    Short-term bonds or securities issued by the federal government.      U     ",sam,1,-15.5,20.1,0,16.59,17.1,13.3,6.25,14.97
Unemployed,People who are not employed but are actively look-ing for work or waiting to return to work.,sam,1,71.14,7.6,0,7.65,8.1,8.19,8.5,9.15
Unemployment,"@1@ In economic terms,  involuntary unemployment   ed workers who are willing to work at prevailing wages but cannot   cial @U.S.  -nition, a worker is unemployed if he or she @ a @ is not working and @ b @ either is waiting for recall from layoff or has actively looked for work in the last 4 weeks. See also  frictional unemployment  and  structural unemployment.      ",sam,1,15.65,18.5,0,10.28,16.6,11.7,20.5,16.67
Unit-elastic demand,"The situation, between  price-elastic demand  and  price-inelastic demand,  in which price elasticity is just equal to 1 in absolute value. See also  price elas-ticity of demand.      Unlimited liability.    See  limited liability.      ",sam,1,-37.33,22.3,0,15.72,14.7,10.52,7.5,16.52
Usury,The charging of an interest rate above a legal maximum on borrowed money.,sam,1,58.28,8.4,0,8.63,7.2,10.35,7.5,11.35
"Value, paradox of",Refer to  paradox of value.,sam,1,49.48,7.6,0,2.64,1.8,10.2,1.5,2
Value-added tax VAT,A tax levied  rm as a percentage of its value added.,sam,1,77.23,5.2,0,2.65,1.6,9.92,5.5,8.04
Velocity of money,"In serving its func-tion as a medium of exchange, money moves from buyer to seller to new buyer and so on. Its “veloc-ity” refers to the speed of this movement.     ",sam,1,56.25,9.1,0,6.49,6.7,10.17,7,6
Vertical merger,See  merger,sam,1,35.61,8.8,0,-4.51,0.8,11.63,0,0.8
Zero economic profit,"In a perfectly competitive industry in long-run equilibrium, there will be zero economic profi t. This defi nition pertains to all revenues less all costs, including the implicit costs of factors owned by the fi rms.",sam,1,53.21,10.3,0,10.79,11.3,12.86,12.5,14.98
Yield,Same as the  interest rate  or  rate of return  on an asset.,sam,1,50.84,9.2,0,3.12,2.2,6.86,6,8.13
ABS,See Asset-Backed Security.,opod,0,-24.64,17.4,0,16.95,17.8,19.58,2.5,14.53
ABS CDO,Instrument where tranches are created from the tranches of ABSs.,opod,0,52.87,8.4,0,12.56,9.5,10.45,6,12
Accrual Swap,An interest rate swap where interest on one side accrues only when a certain condition is met.,opod,0,62.68,8.7,0,8.7,8.7,8.19,11.5,11.51
Accrued Interest,The interest earned on a bond since the last coupon payment date.,opod,0,84.68,4.4,0,7.47,5.8,9.5,6,8.13
Adaptive Mesh Model,A model developed by Figlewski and Gao that grafts a high- resolution tree on to a low-resolution tree so that there is more detailed modeling of the asset price in critical regions.,opod,0,47.46,14.6,0,10.17,16.8,10.65,21,17.8
Agency Costs,"Costs arising from a situation where the agent (e.g., manager) is not motivated to act in the best interests of the principal (e.g., shareholder). ",opod,0,38.66,13.8,0,10.1,14.7,11.41,18,17.93
American Option,An option that can be exercised at any time during its life.,opod,0,84.68,4.4,0,5.03,3.8,6.86,6,8.13
Amortizing Swap,A swap where the notional principal decreases in a predetermined way as time passes.,opod,0,48.81,9.9,0,11.13,9.4,11.1,11,17.03
Analytic Result,Result where answer is in the form of an equation.,opod,0,86.71,3.7,0,4.44,2.9,7.29,4,4
Arbitrageur,An individual engaging in arbitrage.,opod,0,-18.21,17,0,14.24,11.2,13.36,4.5,26
Asian Option,An option with a payoff dependent on the average price of the under- lying asset during a specified period.,opod,0,43.73,11.9,0,9.28,10.1,10.4,13.5,16.02
Ask Price,The price that a dealer is offering to sell an asset.,opod,0,77.23,5.2,0,3.69,2.5,8.49,5.5,8.04
Asked Price,See Ask Price.,opod,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
Asset-Backed Security,"Security created from a portfolio of loans, bonds, credit card receivables, or other assets. ",opod,0,31.89,12.3,0,13.22,12.1,13.35,11,17.03
Asset-or-Nothing Call Option,An option that provides a payoff equal to the asset price if the asset price is above the strike price and zero otherwise.,opod,0,73.51,8.7,0,7.96,10.6,8.9,12.5,9.2
Asset-or-Nothing Put Option,An option that provides a payoff equal to the asset price if the asset price is below the strike price and zero otherwise.,opod,0,65.05,9.9,0,7.96,10.6,8.9,12.5,9.2
Asset Swap,Exchanges the coupon on a bond for LIBOR plus a spread.,opod,0,94.15,2.9,0,4.74,3.3,11.36,4.5,4.4
As-You-Like-It Option,See Chooser Option.,opod,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
At-the-Money Option,An option in which the strike price equals the price of the underlying asset.,opod,0,74.19,6.4,0,8.23,7.1,9.97,7,8.46
Average Price Call Option,An option giving a payoff equal to the greater of zero and the amount by which the average price of the asset exceeds the strike price.,opod,0,70.47,9.9,0,7.32,11.5,9.78,14,11.94
Average Price Put Option,An option giving a payoff equal to the greater of zero and the amount by which the strike price exceeds the average price of the asset.,opod,0,70.47,9.9,0,7.32,11.5,9.78,14,11.94
Average Strike Option,An option that provides a payoff dependent on the difference between the final asset price and the average asset price.,opod,0,42.72,12.3,0,11.43,12.1,10.16,13,12
Backdating,Practice (often illegal) of marking a document with a date that precedes the current date.,opod,0,56.25,9.1,0,10.37,9.9,10.7,8.5,11.33
Back Testing,Testing a value-at-risk or other model using historical data.,opod,0,28.5,11.5,0,13.19,10.8,14.61,4.5,8.04
Backwards Induction,A procedure for working from the end of a tree to its beginning in order to value an option.,opod,0,69.11,8.3,0,4.99,6.4,7.07,11.5,9.71
Barrier Option,"An option whose payoff depends on whether the path of the under- lying asset has reached a barrier (i.e., a certain predetermined level). ",opod,0,48.13,12.3,0,10.28,13.6,10.96,13.5,12.68
Base Correlation,Correlation that leads to the price of a 0% to CDO tranche being consistent with the market for a particular value of .,opod,0,57.61,10.7,0,7.78,10.3,9.75,14.5,14.25
Basel Committee,Committee responsible for regulation of banks internationally.,opod,0,-45.62,21.4,0,25.64,19.8,15.26,6.5,25.66
Basis,The difference between the spot price and the futures price of a commodity.,opod,0,66.74,7.2,0,9.5,7.9,6.71,7.5,8.28
Basis Point,"When used to describe an interest rate, a basis point is one hundredth of one percent ( 0 01 ) ",opod,0,61.67,9.1,0,5.62,7.2,9.79,11,9.42
Basis Risk,The risk to a hedger arising from uncertainty about the basis at a future time.,opod,0,73.17,6.8,0,6.89,6.5,10.7,7.5,8.67
Basis Swap,A swap where cash flows determined by one floating reference rate are exchanged for cash flows determined by another floating reference rate.,opod,0,49.15,11.9,0,14.1,15.2,9.03,16,12.44
Basket Credit Default Swap,Credit default swap where there are several reference entities.,opod,0,36.96,10.3,0,15.74,11.8,12.86,6.5,12.49
Basket Option,An option that provides a payoff dependent on the value of a portfolio of assets.,opod,0,56.25,9.1,0,7.65,7.1,10.7,8.5,11.33
Bear Spread,A short position in a put option with strike price combined with a long position in a put option with strike price where . (A bear spread can also be created with call options.),opod,0,54.9,13.8,0,7.9,15.6,8.14,20,15.62
Bermudan Option,An option that can be exercised on specified dates during its life.,opod,0,67.76,6.8,0,8.4,6.6,9.5,7,11.47
Beta,A measure of the systematic risk of an asset.,opod,0,62.34,6.8,0,4.14,2.4,9.35,4.5,8.04
Bid-Ask Spread,The amount by which the ask price exceeds the bid price.,opod,0,102.61,1.7,0,5.26,3.8,5.62,4.5,4.4
Bid-Offer Spread,See Bid-Ask Spread.,opod,0,119.19,-2.7,0,3.43,6.8,0.15,0.5,1.2
Bid Price,The price that a dealer is prepared to pay for an asset.,opod,0,84.68,4.4,0,3.12,2.2,8.18,5,4.8
Bilateral Clearing,"Arrangement between two parties to handle transactions in the OTC market, often involving an ISDA Master Agreement. ",opod,0,28.84,13.5,0,15.54,14.5,10.98,11.5,13.86
Binary Credit Default Swap,Instrument where there is a fixed dollar payoff in the event of a default by a particular company.,opod,0,53.21,10.3,0,8.18,8.8,9.79,12,11.64
Binary Option,"Option with a discontinuous payoff, e.g., a cash-or-nothing option or an asset-or-nothing option. ",opod,0,24.44,13.1,0,15.76,15.9,11.57,7.5,8.28
Binomial Model,A model where the price of an asset is monitored over successive short periods  of time.  In  each short  period it is assumed that only  two  price movements are possible.,opod,0,32.57,16.2,0,9.41,15.1,9.34,9,17.33
Binomial Tree,A tree that represents how an asset price can evolve under the binomial model.,opod,0,57.27,8.8,0,8.63,7.4,9.97,8,11.31
Bivariate Normal Distribution,"A distribution for two correlated variables, each of which is normal. ",opod,0,43.39,9.9,0,11.58,9.3,9.92,6.5,11.67
Black’s Approximation,An approximate procedure developed by Fischer Black for valuing a call option on a dividend-paying stock.,opod,0,29.86,13.1,0,14.32,13.1,12.33,13,18.9
Black’s  Model,"An  extension  of  the  Black-Scholes  model  for  valuing  European options on futures contracts. As described in Chapter 26, it is used extensively in practice to value European options  when the distribution of the asset  price at maturity is assumed to be lognormal. ",opod,0,16.32,16.2,0,12.42,13.6,11.45,14,14.11
Black-Scholes-Merton Model,"A model for pricing European options on stocks, developed by Fischer Black, Myron Scholes, and Robert Merton. ",opod,0,37.3,12.3,0,12.82,12.8,14.7,11.5,13.86
Bond Option,An option where a bond is the underlying asset.,opod,0,62.34,6.8,0,5.42,3.5,11.1,4.5,8.04
Bond Yield,"Discount rate which, when applied to all the cash flows of a bond, causes the present value of the cash flows to equal the bond’s market price. ",opod,0,77.91,9.1,0,7.49,12.5,8.48,13.5,10.8
Bootstrap Method,A procedure for calculating the zero-coupon yield curve from market data. It involves using progressively longer maturity instruments.,opod,0,20.04,12.7,0,17.66,13.7,14.61,6.5,14.71
Boston Option,See Deferred Payment Option.,opod,0,50.5,7.2,0,11.6,10,11.73,1,1.6
Box Spread,A combination of a bull spread created from calls and a bear spread created from puts.,opod,0,72.16,7.2,0,7.83,7.5,8.38,11,11.4
Break Forward,See Deferred Payment Option.,opod,0,50.5,7.2,0,11.6,10,11.73,1,1.6
Brownian Motion,See Wiener Process.,opod,0,119.19,-2.7,0,5.35,6.8,14.31,0.5,1.2
Bull Spread,"A long position in a call with strike price combined with a short position in a call with strike price , where . (A bull spread can also be created with put options.) ",opod,0,56.93,13,0,7.44,14.4,7.72,19.5,14.98
Butterfly Spread,"A position that is created by taking a long position in a call with strike price , a long position in a call with strike price , and a short position in two  calls  with  strike  price ,  where and 0 5 . (A butterfly spread can also be created with put options.) ",opod,0,21.74,22.4,0,7.04,22.8,8.32,33.5,21.23
Calendar Spread,A position that is created by taking a long position in a call option that matures at one time and a short position in a similar call option that matures at a different time. (A calendar spread can also be created using put options.),opod,0,35.28,19.3,0,8.14,20.9,8.33,30,20.33
Calibration,Method for implying a model’s parameters from the prices of actively traded options.,opod,0,41.36,10.7,0,13.5,11.2,14,8.5,14.43
Callable Bond,A bond containing provisions that allow the issuer to buy it back at a predetermined price at certain times during its life.,opod,0,57.61,10.7,0,9.63,11.6,9.03,14,14.25
Call Option,An option to buy an asset at a certain price by a certain date.,opod,0,82.65,5.2,0,2.43,2.4,6.59,6,5.6
Cancelable Swap,Swap that can be canceled by one side on prespecified dates.,opod,0,77.23,5.2,0,7.35,5.5,9.92,5.5,8.04
Cap,See Interest Rate Cap.,opod,0,75.88,3.7,0,2.9,2.9,7.78,2,11.6
Cap Rate,The rate determining payoffs in an interest rate cap.,opod,0,53.88,8,0,9.31,6.6,9.35,5.5,12.49
Capital Asset Pricing Model,A model relating the expected return on an asset to its beta.,opod,0,50.84,9.2,0,5.5,4.2,10.81,7,11.47
Caplet,One component of an interest rate cap.,opod,0,64.37,6,0,5.75,3.6,8.5,4.5,14.23
Case-Shiller Index,Index of house prices in the United States.,opod,0,88.74,2.9,0,5.76,3.8,7.98,3,3.2
Cash Flow Mapping,A procedure for representing an instrument as a portfolio of zero-coupon bonds for the purpose of calculating value at risk.,opod,0,34.26,13.5,0,12.59,13.3,12.52,16,18
Cash-or-Nothing Call Option,An option that provides a fixed predetermined payoff if the final asset price is above the strike price and zero otherwise.,opod,0,58.62,10.3,0,10.91,12.1,11.45,12.5,10.3
Cash-or-Nothing Put Option,An option that provides a fixed predetermined payoff if the final asset price is below the strike price and zero otherwise.,opod,0,50.16,11.5,0,10.91,12.1,11.45,12.5,10.3
Cash Settlement,Procedure for settling a futures contract in cash rather than by delivering the underlying asset.,opod,0,39.33,11.5,0,13.85,12.1,11.75,10.5,14
CAT Bond,"Bond where the interest and, possibly, the principal paid are reduced if a particular category of ‘‘catastrophic’’ insurance claims exceed a certain amount. ",opod,0,22.75,15.8,0,16.08,17.5,12.33,18.5,21.37
CCP,See Central Clearing Party.,opod,0,50.5,7.2,0,10.15,8.8,11.73,1,1.6
CDD,Cooling degree days. The maximum of zero and the amount by which the daily average temperature is greater than 65 Fahrenheit. The average temperature is the average of the highest and lowest temperatures (midnight to midnight).,opod,0,50.84,9.2,11.9,11.93,9.7,9.93,7.333333333,9.24
CDO,See Collateralized Debt Obligation.,opod,0,-8.73,15.5,0,21.75,18.3,15.68,3,21.6
CDO Squared,An instrument in which the default risks in a portfolio of CDO tranches are allocated to new securities.,opod,0,44.75,11.5,0,10.15,10.3,11.55,13,16.09
CDS,See Credit Default Swap.,opod,0,75.88,3.7,0,5.8,5.3,15.68,1,1.6
CDS Spread,Basis points that must be paid each year for protection in a CDS.,opod,0,92.12,3.6,0,5.03,4.3,9.14,6.5,8.28
CDX NA IG,Portfolio of 125 North American companies.,opod,0,31.55,10.4,0,13.97,10.6,11.83,5,15.73
CEBO,See Credit Event Binary Option.,opod,0,49.48,7.6,0,8.44,6.5,16.52,2.5,10
Central Clearing,The use of a clearing house for over-the-counter derivatives.,opod,0,53.88,8,0,13.19,10.8,7.59,5.5,8.04
Central Counterparty,A clearing house for over-the-counter derivatives.,opod,0,31.55,10.4,0,19.77,16.9,9.2,4,9.07
Cheapest-to-Deliver Bond,The bond that is cheapest to deliver in the CME Group bond futures contract.,opod,0,74.19,6.4,0,7.82,6.8,11.1,7,8.46
Cholesky Decomposition,A method of sampling from a multivariate normal dis- tribution.,opod,0,44.41,9.6,0,11.4,9,13.61,6,12
Chooser Option,An option where the holder has the right to choose whether it is a call or a put at some point during its life.,opod,0,89.42,6.8,0,4.07,7.9,6.14,12,9.6
Class of Options,See Option Class.,opod,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
Clean Price of Bond,The quoted price of a bond. The cash price paid for the bond (or dirty price) is calculated by adding the accrued interest to the clean price.,opod,0,83.15,5,0,6.2,5.6,7.81,6.75,8.36
Clearing House,A firm that guarantees the performance of the parties in a derivatives transaction (also referred to as a clearing corporation).,opod,0,34.26,13.5,0,13.46,14.2,11.73,15,18
Clearing Margin,A margin posted by a member of a clearinghouse.,opod,0,62.34,6.8,0,5.42,3.5,9.35,4.5,8.04
Cliquet Option,"A series of call or put options with rules for determining strike prices. Typically, one option starts when the previous one terminates. ",opod,0,60.31,7.6,0,11.06,8.7,12.08,6.5,11.67
CMO,Collateralized Mortgage Obligation.,opod,0,-75.4,24.5,0,36.32,31.9,19.58,2.5,27.87
Collar,See Interest Rate Collar.,opod,0,50.5,7.2,0,7.25,6.5,7.78,2,11.6
Collateralization,A system for posting collateral by one or both parties in a derivatives transaction.,opod,0,40.35,11.1,0,11.13,9.4,11.1,9,14.17
Collateralized Debt Obligation,A way of packaging credit risk. Several classes of securities (known as tranches) are created from a portfolio of bonds and there are rules for determining how the cost of defaults are allocated to classes.,opod,0,53.71,10.1,0,10.26,10.4,10.37,12.25,13.86
Collateralized Mortgage Obligation (CMO),A mortgage-backed security where in- vestors are divided into classes and there are rules for determining how principal repayments are channeled to the classes.,opod,0,30.2,15,0,15.38,17.5,12.06,18,17.93
Combination,A position involving both calls and puts on the same underlying asset.,opod,0,50.84,9.2,0,9.85,7.7,12.13,8,14.8
Commodity Futures Trading Commission,A body that regulates trading in futures contracts in the United States.,opod,0,67.76,6.8,0,10.83,8.5,9.5,6,8.13
Commodity Swap,A swap where cash flows depend on the price of a commodity.,opod,0,84.68,4.4,0,4.57,3.4,8.18,6,8.13
Compound Correlation,Correlation implied from the market price of a CDO tranche.,opod,0,69.79,6,0,9.66,7.1,10.45,5,8
Compound Option,An option on an option.,opod,0,83.32,2.9,0,-0.85,-1.1,7.04,1.5,2
Compounding Frequency,This defines how an interest rate is measured.,opod,0,71.82,5.2,0,7.9,5.6,9.95,4,8.2
Compounding Swap,Swap where interest compounds instead of being paid.,opod,0,63.36,6.4,0,12.25,9.1,9.95,4,8.2
Conditional Value at Risk (C-VaR),Expected loss during days conditional on being in the 100 tail of the distribution of profits/losses. The variable is the time horizon and is the confidence level.,opod,0,49.31,9.7,0,10.9,9.2,10.15,8.25,11.33
Confirmation,Contract confirming verbal agreement between two parties to a trade in the over-the-counter market.,opod,0,48.81,9.9,0,16.52,14.5,9.97,8,8.46
Constant Elasticity of Variance (CEV) Model,Model where the variance of the change in a variable in a short period of time is proportional to the value of the variable.,opod,0,64.04,10.3,0,7.2,10.4,8.12,14,12.93
Constant Maturity Swap (CMS),A swap where a swap rate is exchanged for either a fixed rate or a floating rate on each payment date.,opod,0,84,6.8,0,5.11,7.4,7.69,10.5,8.4
Constant Maturity Treasury Swap,A swap where the yield on a Treasury bond is exchanged for either a fixed rate or a floating rate on each payment date.,opod,0,80.96,7.9,0,5.98,9.4,9.43,12,9.6
Consumption Asset,An asset held for consumption rather than investment.,opod,0,63.36,6.4,0,13.01,9.7,9.95,5,13.2
Contango,A situation where the futures price is above the expected future spot price (also often used to refer to the situation where the futures price is above the current spot price).,opod,0,48.47,14.2,0,10.05,16.3,8.23,18.5,14.98
Continuous Compounding,A way of quoting interest rates. It is the limit as the assumed compounding interval is made smaller and smaller.,opod,0,61.33,7.2,0,7.92,5.7,10.45,5.5,10
Control Variate Technique,A technique that can sometimes be used for improving the accuracy of a numerical procedure.,opod,0,39.33,11.5,0,11.53,10.2,9.64,11.5,16.67
Convenience Yield,A measure of the benefits from ownership of an asset that are not obtained by the holder of a long futures contract on the asset.,opod,0,63.02,10.7,0,7.14,10.9,8.67,14.5,13.2
Conversion Factor,A factor used to determine the number of bonds that must be delivered in the CME Group bond futures contract.,opod,0,68.1,8.7,0,8.53,9.8,10.94,12,12
Convertible Bond,A corporate bond that can be converted into a predetermined amount of the company’s equity at certain times during its life.,opod,0,41.7,12.7,0,11.14,12.4,9.94,15.5,17.92
Convexity,A measure of the curvature in the relationship between bond prices and bond yields.,opod,0,65.73,7.6,0,10.72,9.1,9.97,8,11.31
Convexity Adjustment,"An overworked term. For example, it can refer to the adjust- ment necessary to convert a futures interest rate to a forward interest rate. It can also refer to the adjustment to a forward rate that is sometimes necessary when Black’s model is used. ",opod,0,56.55,9,11.2,8.52,7.9,8.67,8.333333333,9.52
Copula,A way of defining the correlation between variables with known distributions.,opod,0,43.39,9.9,0,16.34,12.8,9.92,6.5,11.67
Cornish-Fisher Expansion,An approximate relationship between the fractiles of a probability distribution and its moments.,opod,0,7.52,15.4,0,18.84,15.5,11.57,10.5,17.51
Cost of Carry,The storage costs plus the cost of financing an asset minus the income earned on the asset.,opod,0,71.14,7.6,0,7.65,7.8,10.98,8.5,9.15
Counterparty,The opposite side in a financial transaction.,opod,0,38.99,9.6,0,11.55,8.3,10.75,5.5,19.94
Coupon,Interest payment made on a bond.,opod,0,73.85,4.5,0,4.28,2.8,9.2,3,9.07
Covariance,Measure of the linear relationship between two variables (equals the correlation between the variables times the product of their standard deviations).,opod,0,33.24,13.8,0,18.1,18.5,11.45,13.5,14.11
Covariance Matrix,See Variance-Covariance Matrix.,opod,0,-24.64,17.4,0,26.63,25.6,19.58,1.5,14.53
Covered Call,A short position in a call option on an asset combined with a long position in the asset.,opod,0,70.13,8,0,5.28,6.4,8.04,11,9.42
Crashophobia,Fear of a stock market crash that some people claim causes the market to increase the price of deep-out-of-the-money put options.,opod,0,67.08,9.1,0,11.43,13.5,7.69,11.5,8.4
Credit Contagion,The tendency of a default by one company to lead to defaults by other companies.,opod,0,56.25,9.1,0,7.24,6.8,8.59,10.5,11.33
Credit Default Swap,An instrument that gives the holder the right to sell a bond for its face value in the event of a default by the issuer.,opod,0,79.94,8.3,0,5.06,9.2,8.67,13.5,11.6
Credit Derivative,A derivative whose payoff depends on the creditworthiness of one or more companies or countries.,opod,0,39.33,11.5,0,13.45,11.8,10.7,10.5,14
Credit Event,"Event, such as a default or reorganization, triggering a payout on a credit derivative. ",opod,0,23.43,13.5,0,11.53,10.5,12.23,9,14.17
Credit Event Binary Option,Exchange-traded option that provides a fixed payoff if a reference entity suffers a credit event.,opod,0,39.33,11.5,0,13.45,12.1,14.91,10.5,11.33
Credit Index,"Index that tracks the cost of buying protection for each company in a portfolio (e.g., CDX NA IG and iTraxx Europe). ",opod,0,58.62,10.3,0,7.6,10.6,13.7,13.5,12.21
Credit Rating,A measure of the creditworthiness of a bond issue.,opod,0,53.88,8,0,7.39,5.1,9.35,4.5,8.04
Credit Ratings Transition Matrix,A table showing the probability that a company will move from one credit rating to another during a certain period of time.,opod,0,40.69,13.1,0,9.34,11.4,8.32,15,12.44
Credit Risk,The risk that a loss will be experienced because of a default by the counterparty in a derivatives transaction.,opod,0,43.73,11.9,0,10.79,11.1,9.57,13.5,16.02
Credit Spread Option,Option whose payoff depends on the spread between the yields earned on two assets.,opod,0,74.19,6.4,0,10.32,8.8,11.1,6,5.6
Credit Support Annex (CSA),Part of ISDA Master Agreement dealing with collateral requirements.,opod,0,28.5,11.5,0,18.3,14,12.86,5.5,12.49
Credit  Value  Adjustment,Adjustment  to value  of  derivatives  outstanding  with  a counterparty to reflect the counterparty’s default risk.,opod,0,-19.9,19.8,0,18.84,16.2,12.8,12.5,19.33
Credit Value at Risk,The credit loss that will not be exceeded at some specified confidence level.,opod,0,58.28,8.4,0,10.37,8.6,9.14,8.5,14.43
CreditMetrics,A procedure for calculating credit value at risk.,opod,0,37.98,10,0,10.11,7.3,11.93,5,13.2
Cross Hedging,Hedging an exposure to the price of one asset with a contract on another asset.,opod,0,64.71,8,0,6.89,6.5,8.59,8.5,8.67
Cumulative Distribution Function,The probability that a variable will be less than as a function of .,opod,0,66.74,7.2,0,5.9,5,7.93,7,8.28
Currency Swap,A swap where interest and principal in one currency are exchanged for interest and principal in another currency.,opod,0,36.28,12.7,0,13.05,12.7,8.92,16,13.87
CVA,See Credit Value Adjustment.,opod,0,33.58,9.6,0,11.6,10,11.73,2,11.6
Day Count,A convention for quoting interest rates.,opod,0,48.47,8,0,12.05,9,14.46,4,15.73
Day Trade,A trade that is entered into and closed out on the same day.,opod,0,92.12,3.6,0,2.83,2.4,6.71,5.5,5.2
Debt (or Debit) Value Adjustment,Value to a company of the fact that it might default on outstanding derivatives transactions.,opod,0,47.79,10.3,0,12.29,10.9,8.59,11.5,14
Default Correlation,Measures the tendency of two companies to default at about the same time.,opod,0,66.74,7.2,0,8.63,7.2,9.14,7.5,11.35
Default Intensity,See Hazard Rate.,opod,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
Default Probability Density,Measures the unconditional probability of default in a future short period of time.,opod,0,24.44,13.1,0,13.04,10.8,11.57,8.5,14.43
Deferred Payment Option,An option where the price paid is deferred until the end of the option’s life.,opod,0,81.63,5.6,0,6.49,6.2,7.54,6.5,6
Deferred Swap,An agreement to enter into a swap at some time in the future (also called a forward swap).,opod,0,78.59,6.8,0,4.99,6.7,8.04,8,7.2
Delivery Price,Price agreed to (possibly some time in the past) in a forward contract.,opod,0,83.66,4.8,0,6.83,6.5,7.93,6.5,8.28
Delta,The rate of change of the price of a derivative with the price of the underlying asset.,opod,0,71.14,7.6,0,6.32,6.8,7.27,10.5,11.51
Delta Hedging,A hedging scheme that is designed to make the price of a portfolio of derivatives insensitive to small changes in the price of the underlying asset.,opod,0,53.55,12.3,0,10.22,13.8,10.39,17,16.55
Delta-Neutral Portfolio,A portfolio with a delta of zero so that there is no sensitivity to small changes in the price of the underlying asset.,opod,0,56.59,11.1,0,7.2,9.9,9.58,14.5,14.42
DerivaGem,The software accompanying this book.,opod,0,32.56,10,0,14.24,11.2,10.2,2.5,10
Derivative,"An instrument whose price depends on, or is derived from, the price of another asset. ",opod,0,64.71,8,0,8.4,8.3,8.59,8.5,8.67
Deterministic Variable,A variable whose future value is known.,opod,0,81.29,3.7,0,6.56,4.3,8.5,2.5,2.8
Diagonal Spread,A position in two calls where both the strike prices and times to maturity are different. (A diagonal spread can also be created with put options.),opod,0,53.55,12.3,0,9.35,13.7,10.39,18,16.55
Differential Swap,A swap where a floating rate in one currency is exchanged for a floating rate in another currency and both rates are applied to the same principal.,opod,0,60.99,11.5,0,8.77,13.2,9.07,17.5,13.76
Diffusion Process,Model where value of asset changes continuously (no jumps).,opod,0,45.42,9.2,0,11.86,9.8,12.86,4.5,8.04
Dirty Price of Bond,Cash price of bond.,opod,0,118.18,-2.3,0,-1.46,-0.7,7.78,1,1.6
Discount Bond,See Zero-Coupon Bond.,opod,0,59.97,5.6,0,7.32,9.9,19.58,1.5,1.2
Discount  Instrument,"An  instrument,  such  as  a  Treasury  bill,  that  provides  no coupons. ",opod,0,1.09,15.8,0,8.97,7.6,9.92,5.5,8.04
Diversification,Reducing risk by dividing a portfolio between many different assets.,opod,0,27.49,11.9,0,14.88,11.4,12.03,8,16
Dividend,A cash payment made to the owner of a stock.,opod,0,95.17,2.5,0,0.96,0.1,0.5,4,4
Dividend Yield,The dividend as a percentage of the stock price.,opod,0,79.26,4.4,0,6.06,4,7.59,5.5,12.49
Dodd-Frank Act,"An act introduced in the United States in 2010 designed to protect consumers and investors, avoid future bailouts, and monitor the functioning of the financial system more carefully. ",opod,0,43.06,14.2,0,14.51,18.7,12.36,19,18.34
Dollar Duration,The product of a bond’s modified duration and the bond price.,opod,0,68.77,6.4,0,7.93,5.9,11.36,6.5,11.67
DOOM Option,Deep-out-of-the-money put option.,opod,0,9.21,12.7,0,24.72,28.7,9.05,1.5,1.2
Down-and-In Option,An option that comes into existence when the price of the underlying asset declines to a prespecified level.,opod,0,44.75,11.5,0,11.42,11.4,10.67,12,13.87
Down-and-Out Option,An option that ceases to exist when the price of the under- lying asset declines to a prespecified level.,opod,0,52.19,10.7,0,8.65,9.6,9.57,10.5,9.71
Downgrade  Trigger,A  clause  in  a contract  that  states that  the  contract  will  be terminated with a cash settlement if the credit rating of one side falls below a certain level.,opod,0,33.58,15.8,0,8.72,13.8,8.34,16.5,12.98
Drift Rate,The average increase per unit of time in a stochastic variable.,opod,0,68.77,6.4,0,8.97,6.8,12.79,6.5,11.67
Duration,A measure of the average life a bond. It is also an approximation to the ratio of the proportional change in the bond price to the absolute change in its yield.,opod,0,64.2,8.2,0,6.38,6.1,7.97,8.75,11.36
Duration Matching,A procedure for matching the durations of assets and liabilities in a financial institution.,opod,0,14.97,14.7,0,14.43,12.1,12.23,12,19.89
DV01,The dollar value of a 1-basis-point increase in all interest rates.,opod,0,60.31,7.6,0,10.01,8.5,11.36,6.5,8.04
DVA,See Debt (or Debit) Value Adjustment.,opod,0,56.93,6.8,0,7.18,6.7,11.83,3,9.07
Dynamic  Hedging,A  procedure  for  hedging  an  option  position  by  periodically changing  the position held in the underlying asset. The objective is usually to maintain a delta-neutral position.,opod,0,-9.41,17.8,0,14.2,11.9,12.18,11,14.43
Early Exercise,Exercise prior to the maturity date.,opod,0,31.55,10.4,0,8.17,5.9,11.83,4,15.73
Effective  Federal  Funds  Rate,Weighted  average  federal  funds  rate  for  brokered transactions.,opod,0,-38.17,20.6,0,19.5,15,15.88,6,18.2
Efficient Market Hypothesis,A hypothesis that asset prices reflect relevant information.,opod,0,4.14,14.7,0,18.05,13.8,15.88,6,18.2
Electronic Trading,System of trading where a computer is used to match buyers and sellers.,opod,0,66.74,7.2,0,7.7,6.5,10.35,6.5,8.28
Embedded Option,An option that is an inseparable part of another instrument.,opod,0,35.95,10.7,0,10.24,7.6,8.87,7,12
Empirical Research,Research based on historical market data.,opod,0,31.55,10.4,0,12.98,9.8,14.46,3,9.07
Employee Stock Option,A stock option issued by company on its own stock and given to its employees as part of their remuneration.,opod,0,51.18,11.1,0,7.95,9.3,7.79,13,12
Equilibrium Model,A model for the behavior of interest rates derived from a model of the economy.,opod,0,56.25,9.1,0,6.89,6.5,10.7,10.5,14
Equity Swap,A swap where the return on an equity portfolio is exchanged for either a fixed or a floating rate of interest.,opod,0,58.62,10.3,0,7.31,9.3,9.94,13.5,14.11
Equity Tranche,The tranche that first absorbs losses.,opod,0,90.77,2.1,0,10.08,7.5,11.83,2,2.4
Equivalent Annual Interest Rate,Interest rate with annual compounding.,opod,0,15.64,12.3,0,16.56,13.1,13.36,4.5,26
Euribor,Rate in the interbank market between banks in the Eurozone.,opod,0,61.33,7.2,0,9.66,7.1,8.87,6,12
Eurocurrency,A currency that is outside the formal control of the issuing country’s monetary authorities.,opod,0,31.89,12.3,0,14.43,12.1,12.23,11,17.03
Eurodollar,A dollar held in a bank outside the United States.,opod,0,86.71,3.7,0,4.44,2.9,0.5,4,4
Eurodollar Futures Contract,A futures contract written on a Eurodollar deposit.,opod,0,46.44,8.8,0,11.56,8.5,9.95,4,8.2
Eurodollar Interest Rate,The interest rate on a Eurodollar deposit.,opod,0,55.91,7.2,0,9.06,6.3,8.5,4.5,14.23
Euro LIBOR,London interbank offered rate for euros.,opod,0,48.47,8,0,12.05,9,14.46,3,9.07
European Option,An option that can be exercised only at the end of its life.,opod,0,83.66,4.8,0,2.83,2.4,6.71,6.5,8.28
EWMA,Exponentially weighted moving average.,opod,0,-51.03,21.4,0,26.1,21.8,15.68,3,21.6
Exchange Option,An option to exchange one asset for another.,opod,0,63.36,6.4,0,6.45,4.4,7.98,4,3.2
Ex-dividend Date,"When a dividend is declared, an ex-dividend date is specified. Investors who own shares of the stock just before the ex-dividend date receive the dividend. ",opod,0,50.33,9.3,0,11.06,9.5,8.05,7.75,8.2
Exercise Limit,Maximum number of option contracts that can be exercised within a five-day period.,opod,0,41.36,10.7,0,12.17,10.4,11.57,8.5,14.43
Exercise Multiple,Ratio of stock price to strike price at time of exercise for employee stock option.,opod,0,73.17,6.8,0,8.4,7.7,9.64,8.5,11.33
Exercise Price,The price at which the underlying asset may be bought or sold in an option contract (also called the strike price).,opod,0,75.54,7.9,0,8.12,10.4,9.19,11.5,10.3
Exotic Option,A nonstandard option.,opod,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
Expectations Theory,The theory that forward interest rates equal expected future spot interest rates.,opod,0,42.38,10.3,0,15.18,12,10.81,9,14.8
Expected Shortfall,See Conditional Value at Risk.,opod,0,49.48,7.6,0,7.28,5.6,10.2,2.5,10
Expected Value of a Variable,The average value of the variable obtained by weighting the alternative values by their probabilities.,opod,0,30.87,12.7,0,15.77,13.7,11.75,10.5,14
Expiration Date,The end of life of a contract.,opod,0,106.67,0.1,0,-0.87,-1.9,6.24,2.5,2.8
Explicit Finite Difference Method,A method for valuing a derivative by solving the underlying differential equation. The value of the derivative at time is related to three values at time . It is essentially the same as the trinomial tree method.,opod,0,50.84,9.2,11.9,9.73,7.6,9.06,7.5,11.47
Exponentially Weighted Moving Average Model,A model where exponential weight- ing is used to provide forecasts for a variable from historical data. It is sometimes applied to variances and covariances in value at risk calculations.,opod,0,47.79,10.3,0,12.11,10.9,11.75,8.5,11.33
Exponential Weighting,A weighting scheme where the weight given to an observation depends on how recent it is. The weight given to an observation time periods ago is times the weight given to an observation 1 time periods ago where 1.,opod,0,60.14,9.7,0,8.3,9.3,8.25,12.25,9.85
Exposure,The maximum loss from default by a counterparty.,opod,0,46.44,8.8,0,9.35,6.7,9.95,5,13.2
Extendable Bond,A bond whose life can be extended at the option of the holder.,opod,0,83.66,4.8,0,3.7,3.2,7.93,6.5,8.28
Extendable Swap,A swap whose life can be extended at the option of one side to the contract.,opod,0,80.62,6,0,4.17,4.5,8.38,8,8.9
Factor,Source of uncertainty.,opod,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
Factor analysis,An analysis aimed at finding a small number of factors that describe most of the variation in a large number of correlated variables (similar to a principal components analysis).,opod,0,33.58,15.8,0,12.72,17.4,10.52,21.5,19.88
FAS 123,Accounting standard in United States relating to employee stock options.,opod,0,35.95,10.7,0,17.2,13.2,12.03,7,16
FAS 133,Accounting  standard  in  United  States  relating  to  instruments  used  for hedging.,opod,0,-24.3,19.4,0,16.86,13.2,11.36,7.5,15.31
FASB,Financial Accounting Standards Board.,opod,0,8.2,13.1,0,24.65,20.6,15.68,3,21.6
Federal Funds Rate,Overnight interbank borrowing rate.,opod,0,33.58,9.6,0,21.75,18.3,11.73,3,21.6
FICO,A credit score developed by Fair Isaac Corporation.,opod,0,46.44,8.8,0,11.56,8.5,11.93,5,13.2
Financial Intermediary,A bank or other financial institution that facilitates the flow of funds between different entities in the economy.,opod,0,27.83,13.9,0,13.69,13.2,9.79,15,18.31
Finite Difference Method,A method for solving a differential equation.,opod,0,55.91,7.2,0,11.55,8.3,13.01,3.5,8.51
Flat Volatility,The name given to volatility used to price a cap when the same volatility is used for each caplet.,opod,0,77.57,7.2,0,6.85,7.9,6.24,11.5,9.71
Flex Option,An option traded on an exchange with terms that are different from the standard options traded by the exchange.,opod,0,60.65,9.5,0,10.79,11.1,8.73,10.5,7.6
Flexi Cap,Interest rate cap where there is a limit on the total number of caplets that can be exercised.,opod,0,70.13,8,0,6.9,7.7,8.92,11,11.64
Floor,See Interest Rate Floor.,opod,0,75.88,3.7,0,5.8,5.3,7.78,2,11.6
Floor-Ceiling Agreement,See Collar.,opod,0,77.91,2.9,0,-4.51,3.1,0.1,0,0.8
Floorlet,One component of a floor.,opod,0,83.32,2.9,0,1.48,0.9,7.04,2.5,10
Floor Rate,The rate in an interest rate floor agreement.,opod,0,80.28,4.1,0,7.21,4.9,7.98,4,8.2
Foreign Currency Option,An option on a foreign exchange rate.,opod,0,81.29,3.7,0,4.94,2.9,8.5,2.5,2.8
Forward Contract,A contract that obligates the holder to buy or sell an asset for a predetermined delivery price at a predetermined future time.,opod,0,49.15,11.9,0,10.39,12.3,9.03,15,14.25
Forward Exchange Rate,The forward price of one unit of a foreign currency.,opod,0,78.25,4.8,0,5.6,3.8,8.87,5,8
Forward Interest Rate,The interest rate for a future period of time implied by the rates prevailing in the market today.,opod,0,53.21,10.3,0,8.18,8.8,9.79,12,13.87
Forward Price,The delivery price in a forward contract that causes the contract to be worth zero.,opod,0,64.71,8,0,8.4,7.7,8.59,7.5,8.67
Forward Rate,Rate of interest for a period of time in the future implied by today’s zero rates.,opod,0,63.7,8.4,0,6.38,6.3,11.34,9,11.4
Forward Rate Agreement (FRA),Agreement that a certain interest rate will apply to a certain principal amount for a certain time period in the future.,opod,0,50.16,11.5,0,10.04,11.5,9.19,13.5,14.11
Forward Risk-Neutral World,A world is forward risk-neutral with respect to a certain asset when the market price of risk equals the volatility of that asset.,opod,0,65.05,9.9,0,9.75,12.2,8.9,12.5,10.94
Forward Start Option,An option designed so that it will be at-the-money at some time in the future.,opod,0,81.63,5.6,0,5.73,6.2,7.54,6.5,6
Forward Swap,See Deferred Swap.,opod,0,93.81,0.9,0,3.43,5.2,14.31,0.5,1.2
Funding Value Adjustment (FVA),Adjustment made to the price of a derivative for funding costs.,opod,0,68.77,6.4,0,8.97,6.8,9.92,6.5,11.67
Futures Commission Merchants,Futures traders who are following instructions from clients.,opod,0,63.36,6.4,0,18.05,13.8,11.93,5,8.2
Futures Contract,A contract that obligates the holder to buy or sell an asset at a predetermined delivery price during a specified future time period. The contract is settled daily.,opod,0,48.81,9.9,0,10.08,8.6,9.41,8.5,12.74
Futures Option,An option on a futures contract.,opod,0,73.85,4.5,0,4.28,2.8,11.83,2,2.4
Futures Price,The delivery price currently applicable to a futures contract.,opod,0,28.5,11.5,0,15.11,11.3,12.86,6.5,16.93
Futures-Style Option,Futures contract on the payoff from an option.,opod,0,71.82,5.2,0,7.9,5.6,11.93,3,3.2
Gamma,The rate of change of delta with respect to the asset price.,opod,0,93.14,3.3,0,5.03,3.8,8.18,5,4.8
Gamma-Neutral Portfolio,A portfolio with a gamma of zero.,opod,0,64.37,6,0,1.57,0.3,10.75,3.5,8.51
GAP Management,Procedure for matching the maturities of assets and liabilities.,opod,0,11.58,13.9,0,16.38,12.4,12.86,6.5,16.93
Gap Option,European call or put option where there are two strike prices. One determines whether the option is exercised. The other determines the payoff.,opod,0,72.12,5.1,9.7,10.11,7.2,9.51,4.166666667,8.3
GARCH Model,A model for forecasting volatility where the variance rate follows a mean-reverting process.,opod,0,41.36,10.7,0,16.63,14,12.78,8.5,14.43
Gaussian Copula Model,"A model for defining a correlation structure between two or more variables. In some credit derivatives models, it is used to define a correlation structure for times to default. ",opod,0,48.3,10.1,0,11.3,10,10.35,7.75,8.56
Gaussian Quadrature,Procedure for integrating over a normal distribution.,opod,0,5.15,14.3,0,18.16,13.7,13.01,5.5,19.94
Generalized Wiener Process,A stochastic process where the change in a variable in time has a normal distribution with mean and variance both proportional to .,opod,0,57.61,10.7,0,11.2,12.9,9.75,14.5,14.25
Geometric Average,The th root of the product of numbers.,opod,0,88.74,2.9,0,2.1,0.8,9.95,3,3.2
Geometric Brownian Motion,A stochastic process often assumed for asset prices where the logarithm of the underlying variable follows a generalized Wiener process.,opod,0,34.26,13.5,0,16.36,16.1,13.31,14,16
Girsanov’s Theorem,"Result showing that when we change the measure (e.g., move from real world to risk-neutral world) the expected return of a variable changes but the volatility remains the same. ",opod,0,58.96,12.2,0,11.5,17.1,11.06,16.5,14.36
Greeks,"Hedge parameters such as delta, gamma, vega, theta, and rho. ",opod,0,61.33,7.2,0,7.92,7.6,15.19,5,8
Guaranty Fund,Fund to which members of an exchange or CCP contribute. It may be used to cover losses in the event of a default.,opod,0,85.18,4.2,0,3.98,3,9.01,5.25,6.34
Haircut,Discount applied to the value of an asset for collateral purposes.,opod,0,43.39,9.9,0,10.54,8,11.36,6.5,11.67
Hazard Rate,Measures probability of default in a short period of time conditional on no earlier default.,opod,0,30.87,12.7,0,11.88,10.6,10.7,11.5,16.67
HDD,Heating degree days. The maximum of zero and the amount by which the daily average temperature is less than 65 Fahrenheit. The average temperature is the average of the highest and lowest temperatures (midnight to midnight).,opod,0,50.84,9.2,11.9,11.47,9.3,9.5,7.333333333,9.24
Hedge,A trade designed to reduce risk.,opod,0,90.77,2.1,0,4.28,2.8,11.83,2,2.4
Hedge Funds,"Funds that are subject to less regulation and fewer restrictions than mutual funds. They can take short positions and use derivatives, but they cannot publicly offer their securities. ",opod,0,40.35,11.1,0,13.8,11.8,9.41,9,14.17
Hedger,An individual who enters into hedging trades.,opod,0,30.53,10.7,0,11.55,8.3,13.01,3.5,8.51
Hedge Ratio,The ratio of the size of a position in a hedging instrument to the size of the position being hedged.,opod,0,59.64,9.9,0,6.21,7.9,8.58,13,12
Historical Simulation,A simulation based on historical data.,opod,0,14.63,12.7,0,10.08,7.5,14.46,4,15.73
Historical Volatility,A volatility estimated from historical data.,opod,0,-10.76,16.3,0,15.88,12.2,14.46,5,22.4
Holiday Calendar,Calendar defining which days are holidays for the purposes of determining payment dates in a swap.,opod,0,46.78,10.7,0,12.18,11,11.34,12,13.9
IMM Dates,"Third Wednesday in March, June, September, and December. ",opod,0,46.44,8.8,0,13.01,11.4,0.4,5,3.2
Implicit Finite Difference Method,A method for valuing a derivative by solving the underlying differential equation. The value of the derivative at time is related to three values at time.,opod,0,49.82,9.5,0,10.14,8.4,9.75,8,11.35
Implied Correlation,Correlation number implied from the price of a credit derivative using the Gaussian copula or similar model.,opod,0,28.84,13.5,0,13.45,12.6,12.84,12.5,16.21
Implied Distribution,A distribution for a future asset price implied from option prices.,opod,0,60.31,7.6,0,11.06,8.5,12.79,5.5,8.04
Implied Dividend Yield,Dividend yield estimated using put-call parity from the prices of calls and puts with the same strike price and time to maturity.,opod,0,57.61,10.7,0,10.68,12.7,11.9,15,16.07
Implied Tree,A tree describing the movements of an asset price that is constructed to be consistent with observed option prices.,opod,0,60.65,9.5,0,12.01,12.1,11.23,12.5,13.92
Implied Volatility,Volatility implied from an option price using the Black-Scholes or a similar model.,opod,0,49.82,9.5,0,12.63,10.8,12.78,7.5,11.35
Implied Volatility Function (IVF) Model,Model designed so that it matches the market prices of all European options.,opod,0,66.74,7.2,0,9.96,8.2,11.57,6.5,8.28
Inception Profit,Profit created by selling a derivative for more than its theoretical value.,opod,0,25.46,12.7,0,12.28,9.7,10.81,8,14.8
Index Amortizing Swap,See indexed principal swap.,opod,0,50.5,7.2,0,10.15,8.8,15.68,2,11.6
Index Arbitrage,An arbitrage involving a position in the stocks comprising a stock index and a position in a futures contract on the stock index.,opod,0,48.13,12.3,0,9.75,12,10.27,16.5,16.16
Index Futures,A futures contract on a stock index or other index.,opod,0,69.79,6,0,5.02,3.4,8.87,4,4
Index Option,An option contract on a stock index or other index.,opod,0,69.79,6,0,5.02,3.4,8.87,4,4
Indexed Principal Swap,A swap where the principal declines over time. The reduction in the principal on a payment date depends on the level of interest rates.,opod,0,67.76,6.8,0,8.4,6.6,8.84,7,9.8
Initial Margin,The cash required from a futures trader at the time of the trade.,opod,0,92.12,3.6,0,5.03,4.3,7.93,5.5,5.2
Instantaneous Forward Rate,Forward rate for a very short period of time in the future.,opod,0,84.68,4.4,0,4.57,3.4,6.86,6,8.13
Interest Rate Cap,An option that provides a payoff when a specified interest rate is above a certain level. The interest rate is a floating rate that is reset periodically.,opod,0,49.31,9.7,0,9.21,7.6,8.98,7.75,9.84
Interest Rate Collar,A combination of an interest-rate cap and an interest rate floor.,opod,0,51.85,8.8,0,9.49,7.6,7.05,7.5,11.67
Interest Rate Derivative,A derivative whose payoffs are dependent on future interest rates.,opod,0,35.95,10.7,0,13.72,10.4,13.61,7,16
Interest Rate Floor,An option that provides a payoff when an interest rate is below a certain level. The interest rate is a floating rate that is reset periodically.,opod,0,49.82,9.5,0,8.16,6.8,8.53,7,8.28
Interest Rate Option,An option where the payoff is dependent on the level of interest rates.,opod,0,66.74,7.2,0,7.7,6.5,10.35,7.5,11.35
Interest Rate Swap,An exchange of a fixed rate of interest on a certain notional principal for a floating rate of interest on the same notional principal.,opod,0,47.12,12.7,0,9.87,12.6,8.12,18,14.6
International  Swaps  and  Derivatives  Association,Trade  Association  for over-the- counter derivatives and developer of master agreements used in over-the-counter contracts.,opod,0,5.49,16.2,0,21.97,20,9.64,11.5,14
In-the-Money Option,Either (a) a call option where the asset price is greater than the strike price or (b) a put option where the asset price is less than the strike price.,opod,0,74.87,10.3,0,6.11,12.9,7.76,15,12
Intrinsic Value,"For a call option, this is the greater of the excess of the asset price over the strike price and zero. For a put option, it is the greater of the excess of the strike price over the asset price and zero. ",opod,0,84,6.8,0,4.7,7.3,6.93,10.5,8.4
Inverted Market,A market where futures prices decrease with maturity.,opod,0,46.44,8.8,0,13.01,9.7,11.93,4,8.2
Investment Asset,An asset held by at least some individuals for investment purposes.,opod,0,43.39,9.9,0,11.06,8.5,9.92,7.5,15.31
IO,Interest Only. A mortgage-backed security where the holder receives only interest cash flows on the underlying mortgage pool.,opod,0,27.83,13.9,0,16.24,15.8,10.67,14,13.87
ISDA,See International Swaps and Derivatives Association.,opod,0,-36.14,19.8,0,23.65,18.4,14.46,5,22.4
Itô Process,A stochastic process where the change in a variable during each short period of time of length has a normal distribution. The mean and variance of the distribution are proportional to and are not necessarily constant.,opod,0,53.21,10.3,0,11.42,11.4,8.92,12,12.76
Itô’s Lemma,A result that enables the stochastic process for a function of a variable to be calculated from the stochastic process for the variable itself.,opod,0,55.58,11.5,0,11.78,14.1,9.43,15,12.93
ITraxx Europe,Portfolio of 125 investment-grade European companies.,opod,0,-10.76,16.3,0,23.65,19.3,17.09,6,29.07
Jump-Diffusion Model,Model where asset price has jumps superimposed on to a diffusion process such as geometric Brownian motion.,opod,0,54.22,9.9,0,13.11,12.3,12.84,11.5,13.86
Jump Process,Stochastic process for a variable involving jumps in the value of the variable.,opod,0,66.74,7.2,0,11.3,9.3,10.35,7.5,11.35
Kurtosis,A measure of the fatness of the tails of a distribution.,opod,0,68.77,6.4,0,5.26,3.8,8.49,5.5,8.04
LEAPS,Long-term equity anticipation securities. These are relatively long-term options on individual stocks or stock indices.,opod,0,13.1,13.3,0,19.39,15.3,12.43,5.25,16.33
LIBID,"London interbank bid rate. The rate bid by banks on Eurocurrency deposits (i.e., the rate at which a bank is willing to borrow from other banks). ",opod,0,75.2,6,0,7.06,6.8,7.93,6.5,8.28
LIBOR,"London interbank offered rate. The rate offered by banks on Eurocurrency deposits (i.e., the rate at which a bank is willing to lend to other banks). ",opod,0,66.74,7.2,0,7.93,7.5,8.53,6.5,8.28
LIBOR Curve,LIBOR zero-coupon interest rates as a function of maturity.,opod,0,28.5,11.5,0,12.5,9.8,16.36,6.5,12.49
LIBOR-in-Arrears Swap,Swap where the interest paid on a date is determined by the interest rate observed on that date (not by the interest rate observed on the previous payment date).,opod,0,58.96,12.2,0,9.3,14.7,7.8,19.5,15.74
LIBOR-OIS  Spread,Difference  between  LIBOR  rate  and  OIS  rate  for a certain maturity.,opod,0,-7.38,17,0,10.54,8,8.49,6.5,8.04
Limit Move,The maximum price move permitted by the exchange in a single trading session.,opod,0,58.28,8.4,0,10.37,8.6,9.14,7.5,11.35
Limit Order,An order that can be executed only at a specified price or one more favorable to the investor.,opod,0,53.21,10.3,0,6.9,7.7,8.04,12,13.87
Liquidity Preference Theory,A theory leading to the conclusion that forward interest rates are above expected future spot interest rates.,opod,0,37.3,12.3,0,13.8,12.8,10.98,13.5,16.21
Liquidity Premium,The amount that forward interest rates exceed expected future spot interest rates.,opod,0,42.38,10.3,0,15.65,12.5,10.81,8,11.47
Liquidity Risk,"Risk that it will not be possible to sell a holding of a particular instrument at its theoretical price. Also, the risk that a company will not be able to borrow money to fund its assets. ",opod,0,61.67,9.1,0,6.44,7.4,7.6,11.5,10.53
Locals,Individuals on the floor of an exchange who trade for their own account rather than for someone else.,opod,0,70.13,8,0,9.16,9.6,5.41,9,9.42
Lognormal Distribution,A variable has a lognormal distribution when the logarithm of the variable has a normal distribution.,opod,0,38.32,11.9,0,13.22,11.9,9.36,12,13.9
Long Hedge,A hedge involving a long futures position.,opod,0,55.91,7.2,0,9.06,6.3,13.01,4.5,14.23
Long Position,A position involving the purchase of an asset.,opod,0,46.44,8.8,0,7.9,5.6,11.93,5,13.2
Lookback Option,An option whose payoff is dependent on the maximum or min- imum of the asset price achieved during a certain period.,opod,0,58.62,10.3,0,8.7,10.6,11.45,13.5,14.11
Low Discrepancy Sequence,See Quasi-random Sequence.,opod,0,34.59,9.2,0,16.95,17.8,19.58,1.5,1.2
Maintenance Margin,"When the balance in a trader’s margin account falls below the maintenance margin level, the trader receives a margin call requiring the account to be topped up to the initial margin level. ",opod,0,39,15.8,0,11.38,17.7,10.16,18,15.3
Margin,The cash balance (or security deposit) required from a futures or options trader.,opod,0,49.82,9.5,0,11.3,10.1,11.57,6.5,8.28
Margin Call,A request for extra margin when the balance in the margin account falls below the maintenance margin level.,opod,0,53.21,10.3,0,11.08,11.1,8.92,9,9.42
Market-Leveraged Stock Unit (MSU),A unit entitling the holder to receive shares of a stock at a future time. The number of shares received depends on the stock price.,opod,0,84.17,4.6,0,6.42,5.2,8.05,5.75,6.6
Market Maker,A trader who is willing to quote both bid and offer prices for an asset.,opod,0,81.63,5.6,0,4.17,4.3,8.59,6.5,6
Market Model,A model most commonly used by traders.,opod,0,81.29,3.7,0,5.75,3.6,10.75,3.5,8.51
Market Price of Risk,A measure of the trade-offs investors make between risk and return.,opod,0,68.77,6.4,0,10.54,8.5,8.49,4.5,4.4
Market  Segmentation  Theory,A  theory  that  short  interest  rates  are  determined independently of long interest rates by the market.,opod,0,-3.99,17.8,0,13.22,11.9,9.36,13,16.4
Marking to Market,The practice of revaluing an instrument to reflect the current values of the relevant market variables.,opod,0,46.78,10.7,0,13.98,12.5,12.33,9,11.4
Markov Process,"A stochastic process where the behavior of the variable over a short period of time depends solely on the value of the variable at the beginning of the period, not on its past history. ",opod,0,45.43,15.4,0,8.72,16.5,8.57,23,17.13
Martingale,A zero drift stochastic process.,opod,0,66.4,5.2,0,9.6,7.4,13.36,2.5,10
Maturity Date,The end of the life of a contract.,opod,0,105.66,0.5,0,-0.81,-1.6,6.01,3,3.2
Maximum Likelihood Method,A method for choosing the values of parameters by maximizing the probability of a set of observations occurring.,opod,0,27.83,13.9,0,12.7,12.4,11.55,14,18.31
Mean Reversion,The tendency of a market variable (such as an interest rate) to revert back to some long-run average level.,opod,0,52.19,10.7,0,8.65,10.1,8.73,12.5,13.92
Measure,"Sometimes also called a probability measure, it defines the market price of risk. ",opod,0,41.36,10.7,0,11.7,10.1,9.14,6.5,8.28
Mezzanine Tranche,Tranche which experiences losses after equity tranche but before senior tranches.,opod,0,34.93,11.1,0,18.42,14.4,12.79,6.5,11.67
Modified Duration,A modification to the standard duration measure so that it more accurately describes the relationship between proportional changes in a bond price and actual changes in its yield. The modification takes account of the compounding frequency with which the yield is quoted.,opod,0,41.7,12.7,0,14.21,14.9,10.32,15,16.02
Money Market Account,"An investment that is initially equal to $1 and, at time , increases at the very short-term risk-free interest rate prevailing at that time. ",opod,0,48.13,12.3,0,11.03,14,9.58,17,17.9
Monte Carlo Simulation,A procedure for randomly sampling changes in market variables in order to value a derivative.,opod,0,39.33,11.5,0,12.29,10.9,10.7,10.5,14
Mortgage-Backed Security,A security that entitles the owner to a share in the cash flows realized from a pool of mortgages.,opod,0,60.65,9.5,0,6.85,7.9,8.73,12.5,13.92
Naked Position,A short position in a call option that is not combined with a long position in the underlying asset.,opod,0,60.65,9.5,0,7.43,8.4,8.73,12.5,11.81
Netting,The ability to offset contracts with positive and negative values in the event of a default by a counterparty or for the purpose of determining collateral requirements.,opod,0,27.15,16.2,0,13.29,16.8,12.58,20.5,21.17
Newton-Raphson Method,An iterative procedure for solving nonlinear equations.,opod,0,5.15,14.3,0,19.84,15,15.26,5.5,19.94
NINJA,"Term used to describe a person with a poor credit risk: no income, no job, no assets. ",opod,0,71.14,7.6,0,4.58,6.2,7.27,7.5,6.8
No-Arbitrage Assumption,The assumption that there are no arbitrage opportunities in market prices.,opod,0,43.39,9.9,0,14.77,11.5,9.92,7.5,15.31
No-Arbitrage Interest Rate Model,A model for the behavior of interest rates that is exactly consistent with the initial term structure of interest rates.,opod,0,42.72,12.3,0,11.72,12.4,10.94,15,16
Nonstationary Model,A model where the volatility parameters are a function of time.,opod,0,60.31,7.6,0,8.97,6.8,9.92,6.5,11.67
Nonsystematic Risk,Risk that can be diversified away.,opod,0,73.85,4.5,0,6.25,4.3,9.2,3,9.07
Normal Backwardation,A situation where the futures price is below the expected future spot price.,opod,0,58.28,8.4,0,9.96,8.2,9.14,7.5,11.35
Normal Distribution,The standard bell-shaped distribution of statistics.,opod,0,14.63,12.7,0,22.67,18.4,14.46,4,15.73
Normal Market,A market where futures prices increase with maturity.,opod,0,46.44,8.8,0,13.01,9.7,11.93,4,8.2
Notional Principal,The principal used to calculate payments in an interest rate swap. The principal is ‘‘notional ’’ because it is neither paid nor received.,opod,0,59.8,7.8,0,10.3,8.1,9.7,7.25,11.56
Numeraire,"Defines the units in which security prices are measured. For example, if the price of IBM is the numeraire, all security prices are measured relative to IBM. If IBM is $80 and a particular security price is $50, the security price is 0.625 when IBM is the numeraire. ",opod,0,63.7,8.4,11.9,7.83,8,9.04,10.33333333,9.73
Numerical Procedure,A method of valuing an option when no formula is available.,opod,0,68.77,6.4,0,6.82,5,11.36,5.5,8.04
OCC,Options Clearing Corporation. See Clearinghouse.,opod,0,-1.29,14.7,0,27,22.5,16.52,3.5,18
Offer Price,See Ask Price.,opod,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
OIS,See Overnight Indexed Swap.,opod,0,92.8,1.3,0,10.15,8.8,11.73,1,1.6
Open Interest,The total number of long positions outstanding in a futures contract (equals the total number of short positions).,opod,0,44.75,11.5,0,12.7,13,9.79,12,11.64
Open Outcry,System of trading where traders meet on the floor of the exchange,opod,0,84.68,4.4,0,7.93,5.8,8.18,5,4.8
Option,The right to buy or sell an asset.,opod,0,105.66,0.5,0,-0.81,-1.6,6.01,3,3.2
Option-Adjusted Spread,The spread over the Treasury curve that makes the theoret- ical price of an interest rate derivative equal to the market price.,opod,0,66.07,9.5,0,10.15,12.3,9.03,14,14.25
Option Class,All options of the same type (call or put) on a particular stock.,opod,0,83.66,4.8,0,4.16,4.3,7.93,6.5,8.28
Option Series,All options of a certain class with the same strike price and expiration date.,opod,0,74.19,6.4,0,8.63,7.4,7.71,7,8.46
Out-of-the-Money Option,Either (a) a call option where the asset price is less than the strike price or (b) a put option where the asset price is greater than the strike price.,opod,0,74.87,10.3,0,6.11,12.9,7.76,15,12
Overnight Indexed Swap,"Swap where a fixed rate for a period (e.g., 1 month) is exchanged for the geometric average of the overnight rates during the period. ",opod,0,55.58,11.5,0,8.13,12.1,11.41,16,14.6
Over-the-Counter Market,"A market where traders deal by phone. The traders are usually financial institutions, corporations, and fund managers. ",opod,0,45.93,9,0,14.06,11.1,10.56,5.25,12.81
Package,"A derivative that is a portfolio of standard calls and puts, possibly combined with a position in forward contracts and the asset itself. ",opod,0,39.67,13.4,0,11.49,13.6,11.64,15.5,16.16
Par Value,The principal amount of a bond.,opod,0,90.77,2.1,0,3.35,2,9.2,3,9.07
Par Yield,The coupon on a bond that makes its price equal the principal.,opod,0,93.14,3.3,0,6.02,4.6,9.5,6,8.13
Parallel Shift,A movement in the yield curve where each point on the curve changes by the same amount.,opod,0,96.52,4,0,6.32,6.8,7.27,7.5,6.8
Parisian Option,Barrier option where the asset has to be above or below the barrier for a period of time for the option to be knocked in or out.,opod,0,60.99,11.5,0,4.71,9.9,7.9,16.5,13.76
Path-Dependent Option,An option whose payoff depends on the whole path followed by the underlying variable—not just its final value.,opod,0,53.21,10.3,0,12.06,11.9,10.67,9,9.42
Payoff,The cash realized by the holder of an option or other derivative at the end of its life.,opod,0,70.13,8,0,4.99,6.1,7.16,11,11.64
PD,Probability of default.,opod,0,-24.64,17.4,0,13.12,13,14.31,1.5,14.53
Perpetual Derivative,A derivative that lasts forever.,opod,0,32.56,10,0,9.6,7.4,13.36,3.5,18
Plain Vanilla,A term used to describe a standard deal.,opod,0,88.74,2.9,0,3.55,2,6.01,3,3.2
P-Measure,Real-world measure.,opod,0,-6.7,14.7,0,15.8,22,0.1,1,0.8
PO,Principal  Only.  A  mortgage-backed  security  where  the  holder  receives  only principal cash flows on the underlying mortgage pool.,opod,0,-14.48,19.8,0,16.88,16.3,10.67,14,13.87
Poisson Process,"A process describing a situation where events happen at random. The probability of an event in time is , where   is the intensity of the process. ",opod,0,50.33,9.3,0,8.51,7.1,9.31,7.5,11.4
Portfolio Immunization,Making a portfolio relatively insensitive to interest rates.,opod,0,-4.33,15.9,0,18.05,13.8,13.9,7,23.2
Portfolio Insurance,Entering into trades to ensure that the value of a portfolio will not fall below a certain level.,opod,0,53.21,10.3,0,7.89,8.5,8.04,11,11.64
Position Limit,The maximum position a trader (or group of traders acting together) is allowed to hold.,opod,0,56.25,9.1,0,9.21,9,10.7,10.5,11.33
Premium,The price of an option.,opod,0,100.24,0.5,0,-0.85,-1.1,7.04,1.5,2
Prepayment function,A function estimating the prepayment of principal on a port- folio of mortgages in terms of other variables.,opod,0,44.75,11.5,0,11.08,11.4,12.42,12,13.87
Principal,The par or face value of a debt instrument.,opod,0,87.72,3.3,0,2.87,1.4,9.35,4.5,8.04
Principal Components Analysis,An analysis aimed at finding a small number of factors that describe most of the variation in a large number of correlated variables (similar to a factor analysis).,opod,0,43.06,14.2,0,10.8,15.6,10.1,19,16.91
Principal Protected Note,"A product where the return earned depends on the perfor- mance of a risky asset but is guaranteed to be nonnegative, so that the investor’s principal is preserved. ",opod,0,51.52,13,0,10.57,15.5,11.79,17,15.49
Program Trading,A procedure where trades are automatically generated by a com- puter and transmitted to the trading floor of an exchange.,opod,0,34.26,13.5,0,11.72,12.6,10.94,14,16
Protective Put,A put option combined with a long position in the underlying asset.,opod,0,50.84,9.2,0,8.4,6.6,10.81,7,11.47
Pull-to-Par,The reversion of a bond’s price to its par value at maturity.,opod,0,67.76,6.8,0,5.5,4.2,9.5,7,11.47
Put-Call Parity,The relationship between the price of a European call option and the price of a European put option when they have the same strike price and maturity date.,opod,0,51.52,13,0,9.35,14.1,7.84,18,15.49
Put Option,An option to sell an asset for a certain price by a certain date.,opod,0,82.65,5.2,0,3.24,3,6.59,6,5.6
Puttable Bond,A bond where the holder has the right to sell it back to the issuer at certain predetermined times for a predetermined price.,opod,0,65.05,9.9,0,8.71,11.2,7.52,13.5,10.94
Puttable Swap,A swap where one side has the right to terminate early.,opod,0,85.69,4,0,4.74,3.3,7.05,5.5,8.04
Q-Measure,Risk-neutral measure.,opod,0,35.61,8.8,0,21.6,26.7,19.53,0,0.8
Quanto,A derivative where the payoff is defined by variables associated with one currency but is paid in another currency.,opod,0,35.27,13.1,0,12.01,12.1,9.57,14.5,13.92
Quasi-random Sequences,A sequences of numbers used in a Monte Carlo simulation that are representative of alternative outcomes rather than random.,opod,0,35.27,13.1,0,14.45,14.1,12.06,12.5,13.92
Rainbow Option,An option whose payoff is dependent on two or more underlying variables.,opod,0,50.84,9.2,0,10.83,8.5,10.81,7,11.47
Range  Forward  Contract,The  combination  of  a  long  call  and  short  put  or  the combination of a short call and long put.,opod,0,35.27,13.1,0,5.28,6.7,5.41,11.5,9.71
Ratchet Cap,Interest rate cap where the cap rate applicable to an accrual period equals the rate for the previous accrual period plus a spread.,opod,0,39.67,13.4,0,10.28,12.4,9.58,18.5,17.9
Real Option,"Option involving real (as opposed to financial) assets. Real assets include land, plant, and machinery. ",opod,0,38.48,9.8,0,12.43,10.3,10.32,4.25,8.33
Rebalancing,The process of adjusting a trading position periodically. Usually the purpose is to maintain delta neutrality.,opod,0,21.06,12.3,0,14.05,10.5,13.9,5.5,15.7
Recovery Rate,Amount recovered in the event of a default as a percent of the face value.,opod,0,81.63,5.6,0,4.92,4.9,8.59,7.5,8.67
Reference Entity,Company for which default protection is bought in a credit default swap.,opod,0,59.3,8,0,10.83,8.5,9.5,7,8.13
Repo,Repurchase agreement. A procedure for borrowing money by selling securities to a counterparty and agreeing to buy them back later at a slightly higher price.,opod,0,29.18,15.4,0,13.41,16.1,11.82,17.5,18
Repo Rate,The rate of interest in a repo transaction.,opod,0,63.36,6.4,0,5.76,3.8,9.95,5,13.2
Reset Date,The date in a swap or cap or floor when the floating rate for the next period is set.,opod,0,86.03,6,0,2.85,4.7,7.07,10.5,9.71
Restricted Stock Unit (RSU),A unit entitling the holder to receive one share of a stock at a future time.,opod,0,80.62,6,0,4.52,4.8,7.39,8,8.9
Reversion Level,"The level to which the value of a market variable (e.g., an interest rate) tends to revert. ",opod,0,62.68,8.7,0,5.97,7.8,10.05,8.5,9.15
Rho,Rate of change of the price of a derivative with the interest rate.,opod,0,75.2,6,0,5.9,5,6.71,7.5,11.35
Rights Issue,An issue to existing shareholders of a security giving them the right to buy new shares at a certain price.,opod,0,59.64,9.9,0,7.95,9.3,8.58,13,14
Risk-Free Rate,The rate of interest that can be earned without assuming any risks.,opod,0,76.22,5.6,0,8.4,6.6,9.5,7,11.47
Risk-Neutral Valuation,"The valuation of an option or other derivative assuming the world is risk neutral. Risk-neutral valuation gives the correct price for a derivative in all worlds, not just in a risk-neutral world. ",opod,0,46.78,10.7,0,11.25,10.7,8.38,10.5,10.15
Risk-Neutral World,A world where investors are assumed to require no extra return on average for bearing risks.,opod,0,63.7,8.4,0,9.97,9.2,10.35,8,8.9
Roll Back,See Backwards Induction.,opod,0,34.59,9.2,0,15.03,14.6,9.05,1.5,14.53
Scalper,A trader who holds positions for a very short period of time.,opod,0,76.22,5.6,0,5.5,4.2,9.5,7,11.47
Scenario Analysis,An analysis of the effects of possible alternative future movements in market variables on the value of a portfolio.,opod,0,35.27,13.1,0,12.36,12.4,10.4,13.5,13.92
SEC,Securities and Exchange Commission.,opod,0,-8.73,15.5,0,21.75,18.3,11.73,3,21.6
Securitization,Procedure for distributing the risks in a portfolio of assets.,opod,0,52.87,8.4,0,11.4,8.5,12.03,7,16
SEF,See Swap Execution Facility.,opod,0,-8.73,15.5,0,11.6,10,15.68,3,21.6
Settlement Price,The average of the prices that a contract trades for immediately before the bell signaling the close of trading for a day. It is used in mark-to-market calculations.,opod,0,57.27,8.8,0,9.91,8.8,8.84,8.5,11.31
Sharpe Ratio,Ratio of excess return over risk-free rate to standard deviation of the excess return.,opod,0,48.81,9.9,0,11.53,10.1,9.97,7,8.46
Short Hedge,A hedge where a short futures position is taken.,opod,0,79.26,4.4,0,6.06,4,9.35,4.5,8.04
Short Position,A position assumed when traders sell shares they do not own.,opod,0,85.69,4,0,7.35,5.5,9.92,5.5,8.04
Short Rate,The interest rate applying for a very short period of time.,opod,0,68.77,6.4,0,6.82,5,8.49,7.5,15.31
Short Selling,Selling in the market shares that have been borrowed from another investor.,opod,0,67.76,6.8,0,12.28,9.7,9.5,6,4.8
Short-Term Risk-Free Rate,See Short Rate.,opod,0,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
Shout Option,An option where the holder has the right to lock in a minimum value for the payoff at one time during its life.,opod,0,73.51,8.7,0,5.23,8.3,6.84,12.5,10.94
Simulation,See Monte Carlo Simulation.,opod,0,33.58,9.6,0,10.15,8.8,15.68,2,11.6
Specialist,An individual responsible for managing limit orders on some exchanges. The specialist does not make the information on outstanding limit orders available to other traders.,opod,0,33.41,11.7,0,15.47,12.5,11.2,8.25,14.6
Spot Interest Rate,See Zero-Coupon Interest Rate.,opod,0,33.58,9.6,0,13.05,12.4,15.68,3,11.6
Spot Price,The price for immediate delivery.,opod,0,32.56,10,0,10.76,8.4,10.2,3.5,18
Spot Volatilities,The volatilities used to price a cap when a different volatility is used for each caplet.,opod,0,72.16,7.2,0,8.87,8.4,7.39,11,11.4
Spread Option,An option where the payoff is dependent on the difference between two market variables.,opod,0,57.27,8.8,0,12.35,10.5,8.84,8,8.46
Spread Transaction,A position in two or more options of the same type.,opod,0,85.69,4,0,2.65,1.6,8.49,5.5,8.04
Stack and Roll,Procedure where short-term futures contracts are rolled forward to create long-term hedges.,opod,0,59.3,8,0,19.07,16,12.13,6,8.13
Static Hedge,A hedge that does not have to be changed once it is initiated.,opod,0,92.12,3.6,0,3.7,3.2,7.93,6.5,8.28
Static Options Replication,A procedure for hedging a portfolio that involves finding another portfolio of approximately equal value on some boundary.,opod,0,27.83,13.9,0,15.95,15,10.67,14,13.87
Step-up Swap,A swap where the principal increases over time in a predetermined way.,opod,0,59.3,8,0,9.85,7.7,9.5,8,14.8
Sticky Cap,Interest rate cap where the cap rate applicable to an accrual period equals the capped rate for the previous accrual period plus a spread.,opod,0,47.12,12.7,0,10.57,13.1,10.09,19,17.93
Stochastic Process,An equation describing the probabilistic behavior of a stochastic variable.,opod,0,19.03,13.1,0,18.94,14.7,13.61,8,20
Stochastic Variable,A variable whose future value is uncertain.,opod,0,55.91,7.2,0,9.87,7,10.75,3.5,8.51
Stock Dividend,A dividend paid in the form of additional shares.,opod,0,62.34,6.8,0,6.7,4.5,9.35,5.5,12.49
Stock Index,An index monitoring the value of a portfolio of stocks.,opod,0,52.87,8.4,0,7.34,5.2,10.45,6,12
Stock Index Futures,Futures on a stock index.,opod,0,83.32,2.9,0,1.48,0.9,10.2,1.5,2
Stock Index Option,An option on a stock index.,opod,0,90.77,2.1,0,-0.54,-1.2,9.2,2,2.4
Stock Option,Option on a stock.,opod,0,92.8,1.3,0,-2.91,-1.9,7.78,1,1.6
Stock Split,The conversion of each existing share into more than one new share.,opod,0,76.22,5.6,0,8.4,6.6,6.86,7,11.47
Storage Costs,The costs of storing a commodity.,opod,0,56.93,6.8,0,5.27,3.6,11.83,3,9.07
Straddle,A long position in a call and a put with the same strike price.,opod,0,99.57,2.9,0,2.43,2.4,6.59,7,8.46
Strangle,A long position in a call and a put with different strike prices.,opod,0,83.66,4.8,0,5.03,4.3,7.93,7.5,8.28
Strap,A long position in two call options and one put option with the same strike price.,opod,0,80.62,6,0,6.38,6.3,8.38,8,8.9
Stressed VaR,Value at risk calculated using historical simulation from a period of stressed market conditions.,opod,0,14.97,14.7,0,16.52,13.8,13.35,12,19.89
Stress Testing,Testing of the impact of extreme market moves on the value of a portfolio.,opod,0,65.73,7.6,0,7.01,6.1,9.97,7,8.46
Strike Price,The price at which the asset may be bought or sold in an option contract (also called the exercise price).,opod,0,76.56,7.6,0,7.08,9.1,8.58,11,10
Strip,A long position in one call option and two put options with the same strike price.,opod,0,80.62,6,0,6.38,6.3,8.38,8,8.9
Strip Bonds,Zero-coupon bonds created by selling the coupons on Treasury bonds separately from the principal.,opod,0,40.35,11.1,0,16.12,13.8,14.48,11,14.17
Subprime Mortgage,Mortgage granted to borrower with a poor credit history or no credit history.,opod,0,41.36,10.7,0,10.37,8.6,9.14,8.5,8.28
Swap,An agreement to exchange cash flows in the future according to a prearranged formula.,opod,0,57.27,8.8,0,11.53,9.8,11.1,9,14.17
Swap Execution Facility,Electronic platform for trading over-the-counter derivatives.,opod,0,-10.76,16.3,0,30.38,25.5,11.83,5,15.73
Swap Rate,The fixed rate in an interest rate swap that causes the swap to have a value of zero.,opod,0,78.59,6.8,0,4,5.4,8.92,9,9.42
Swaption,An option to enter into an interest rate swap where a specified fixed rate is exchanged for floating.,opod,0,61.67,9.1,0,9.16,9.6,10.67,11,11.64
Swing Option,Energy option in which the rate of consumption must be between a minimum and maximum level. There is usually a limit on the number of times the option holder can change the rate at which the energy is consumed.,opod,0,60.14,9.7,0,8.01,9.1,8.25,12.75,12.93
Synthetic CDO,A CDO created by selling credit default swaps.,opod,0,63.36,6.4,0,7.9,5.6,15.88,4,8.2
Synthetic Option,An option created by trading the underlying asset.,opod,0,29.52,11.1,0,10.8,7.9,13.9,5,13.2
Systematic Risk,Risk that cannot be diversified away.,opod,0,56.93,6.8,0,9.15,6.7,9.2,3,9.07
Systemic Risk,Risk that a default by one financial institution will lead to defaults by other financial instutions.,opod,0,38.32,11.9,0,13.22,11.9,10.35,12,13.9
Tailing the Hedge,A procedure for adjusting the number of futures contracts used for hedging to reflect daily settlement.,opod,0,38.32,11.9,0,13.98,12.5,10.35,11,11.4
Tail Loss,See Conditional Value at Risk.,opod,0,49.48,7.6,0,7.28,5.6,10.2,2.5,10
Take-and-Pay Option,See Swing Option.,opod,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
TED Spread,The difference between 3-month LIBOR and the 3-month T-Bill rate.,opod,0,78.25,4.8,0,11.4,9.9,8.87,5,4
Tenor,Frequency of payments.,opod,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
Term Structure of Interest Rates,The relationship between interest rates and their maturities.,opod,0,21.06,12.3,0,18.81,14.4,11.93,6,18.2
Terminal Value,The value at maturity.,opod,0,33.58,9.6,0,2.9,2.9,7.78,2,11.6
Theta,The rate of change of the price of an option or other derivative with the passage of time.,opod,0,78.59,6.8,0,5.62,6.7,7.16,9,9.42
Time Decay,See Theta.,opod,0,120.21,-3.1,0,-7.41,0.8,11.63,0,0.8
Time Value,The value of an option arising from the time left to maturity (equals an option’s price minus its intrinsic value).,opod,0,51.18,11.1,0,9.69,11.2,10.16,12,12
Timing Adjustment,Adjustment made to the forward value of a variable to allow for the timing of a payoff from a derivative.,opod,0,51.18,11.1,0,7.37,8.8,8.58,12,12
Total Return Swap,A swap where the return on an asset such as a bond is exchanged for LIBOR plus a spread. The return on the asset includes income such as coupons and the change in value of the asset.,opod,0,78.08,7,0,5.28,6.4,7.97,8.25,7.4
Tranche,One of several securities that have different risk attributes. Examples are the tranches of a CDO or CMO.,opod,0,62.34,6.8,0,8.67,6.1,10.22,5.5,8.04
Transaction Costs,The cost of carrying out a trade (commissions plus the difference between the price obtained and the midpoint of the bid-offer spread).,opod,0,57.61,10.7,0,11.72,14,8.32,15,12.44
Treasury Bill,A short-term non-coupon-bearing instrument issued by the government to finance its debt.,opod,0,42.38,10.3,0,17.1,14.8,13.44,8,8.13
Treasury Bond,A long-term coupon-bearing instrument issued by the government to finance it debt.,opod,0,50.84,9.2,0,14.72,12.5,12.13,8,8.13
Treasury Bond Futures,A futures contract on Treasury bonds.,opod,0,73.85,4.5,0,9.15,6.7,14.46,2,2.4
Treasury  Note,See  Treasury  Bond.  (Treasury  notes  have  maturities  of  less than 10 years.),opod,0,17,13.9,0,10.37,9.3,12.13,6,8.13
Treasury Note Futures,A futures contract on Treasury notes.,opod,0,73.85,4.5,0,9.15,6.7,14.46,2,2.4
Tree,Representation  of  the  evolution  of  the  value  of  a  market  variable  for  the purposes of valuing an option or other derivative.,opod,0,-17.53,20.9,0,11.14,12.4,9.94,14.5,16.02
Trinomial Tree,A tree where there are three branches emanating from each node. It is used in the same way as a binomial tree for valuing derivatives.,opod,0,75.71,5.8,0,6.89,5.5,8.05,6.75,9.8
Triple Witching Hour,"A term given to the time when stock index futures, stock index options, and options on stock index futures all expire together. ",opod,0,57.61,10.7,0,9.86,12.3,7.6,12,8.8
Underlying Variable,A variable on which the price of an option or other derivative depends.,opod,0,66.74,7.2,0,7.7,6.5,9.14,6.5,8.28
Unsystematic Risk,See Nonsystematic Risk.,opod,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
Up-and-In Option,An option that comes into existence when the price of the under- lying asset increases to a prespecified level.,opod,0,43.73,11.9,0,10.5,11.1,9.57,12.5,13.92
Up-and-Out Option,An option that ceases to exist when the price of the underlying asset increases to a prespecified level.,opod,0,44.75,11.5,0,10.15,10.3,10.67,12,13.87
Uptick,An increase in price.,opod,0,92.8,1.3,0,1.45,1.8,7.78,1,1.6
Value at Risk,A loss that will not be exceeded at some specified confidence level.,opod,0,59.3,8,0,8.92,6.9,8.18,8,14.8
Variance-Covariance Matrix,"A matrix showing variances of, and covariances be- tween, a number of different market variables. ",opod,0,47.79,10.3,0,12.69,12.1,10.7,8.5,8.67
Variance-Gamma Model,A pure jump model where small jumps occur often and large jumps occur infrequently.,opod,0,65.73,7.6,0,10.72,9.1,8.84,7,8.46
Variance Rate,The square of volatility.,opod,0,75.88,3.7,0,7.25,6.5,7.78,2,11.6
Variance Reduction Procedures,Procedures for reducing the error in a Monte Carlo simulation.,opod,0,35.95,10.7,0,11.4,8.5,13.61,7,16
Variance Swap,Swap where the realized variance rate during a period is exchanged for a fixed variance rate. Both are applied to a notional principal.,opod,0,59.8,7.8,0,9.55,7.4,10.39,6.75,11.56
Variation Margin,An extra margin required to bring the balance in a margin account up to the initial margin when there is a margin call.,opod,0,65.05,9.9,0,7.2,9.9,7.52,11.5,9.2
Vega,The rate of change in the price of an option or other derivative with volatility.,opod,0,64.71,8,0,7.65,7.1,7.54,8.5,11.33
Vega-Neutral Portfolio,A portfolio with a vega of zero.,opod,0,64.37,6,0,0.76,-0.6,10.75,3.5,8.51
Vesting Period,Period during which an option cannot be exercised.,opod,0,37.98,10,0,10.8,7.9,9.95,5,13.2
VIX Index,Index of the volatility of the S&P 500.,opod,0,80.28,4.1,0,2.1,1.4,13.9,4,8.2
Volatility,A measure of the uncertainty of the return realized on an asset.,opod,0,50.84,9.2,0,6.95,5.4,8.18,7,11.47
Volatility Skew,A term used to describe the volatility smile when it is nonsymmetrical.,opod,0,59.3,8,0,10.37,8.1,6.86,7,11.47
Volatility Smile,The variation of implied volatility with strike price.,opod,0,63.36,6.4,0,13.7,10.3,11.93,5,13.2
Volatility Surface,A table showing the variation of implied volatilities with strike price and time to maturity.,opod,0,47.79,10.3,0,12.29,10.9,10.7,10.5,14
Volatility Swap,Swap where the realized volatility during a period is exchanged for a fixed volatility. Both percentage volatilities are applied to a notional principal.,opod,0,42.88,10.1,0,14.07,11.2,11.76,8.75,16.77
Volatility Term Structure,The variation of implied volatility with time to maturity.,opod,0,36.96,10.3,0,12.5,9.3,11.1,6.5,16.93
Volcker Rule,"A rule in the Dodd-Frank Act restricting the speculative activities of banks, proposed by former Federal Reserve Chairman, Paul Volcker. ",opod,0,25.8,14.6,0,15.49,16.1,14.89,15,18
Warrant,An option issued by a company or a financial institution. Call warrants are frequently issued by companies on their own stock.,opod,0,52.36,8.6,0,9.95,7.6,9.42,6.75,11.82
Waterfall,Rules determining how cash flows from the underlying portfolio are dis- tributed to tranches.,opod,0,40.35,11.1,0,14.43,12.5,13.35,11,17.03
Weather Derivative,Derivative where the payoff depends on the weather.,opod,0,46.44,8.8,0,11.56,8.5,9.95,4,8.2
Weeklys,Option created on a Thursday that expires on Friday of the following week.,opod,0,58.28,8.4,0,9.03,7.5,7.93,7.5,8.28
Wiener Process,A stochastic process where the change in a variable during each short period of time of length has a normal distribution with a mean equal to zero and a variance equal to .,opod,0,55.92,13.4,0,8.48,15.2,9.17,19.5,16.55
Wild Card Play,The right to deliver on a futures contract at the closing price for a period of time after the close of trading.,opod,0,66.07,9.5,0,6.44,9.1,9.03,13,12.44
Writing an Option,Selling an option.,opod,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
Yield Curve,See Term Structure.,opod,0,93.81,0.9,0,5.35,6.8,9.05,0.5,1.2
Zero-Coupon Bond,A bond that provides no coupons.,opod,0,99.23,0.9,0,4.28,2.8,11.83,2,2.4
Zero-Coupon Interest Rate,The interest rate that would be earned on a bond that provides no coupons.,opod,0,91.11,4,0,7.01,6.1,9.97,7,8.46
Zero-Coupon Yield Curve,A plot of the zero-coupon interest rate against time to maturity.,opod,0,60.31,7.6,0,9.49,7.6,11.36,7.5,11.67
Zero Curve,See Zero-Coupon Yield Curve.,opod,0,75.88,3.7,0,10.15,10,15.68,2,1.6
Zero Rate,See Zero-Coupon Interest Rate.,opod,0,33.58,9.6,0,13.05,12.4,15.68,3,11.6
advances,See discount loans.,fmi,0,93.81,0.9,0,5.35,6.8,14.31,0.5,1.2
adverse selection,The problem created by asym-metric information before a transaction occurs,fmi,0,10.56,14.3,0,18.36,14.2,15.19,8,16
agency theory,The analysis of how asymmetric information problems affect economic behavior.,fmi,0,2.11,15.5,0,20.1,15.6,15.19,9,24
American depository receipts @ADR@,A receipt for foreign stocks held by a trustee. The receipts trade on U.S. stock exchanges instead of the actual stock.,fmi,0,86.2,3.8,0,7.46,6,10.92,4.75,6.1
amortized,"Paid off in stages over a period of time. Each payment on a loan consists of the accrued interest and an amount that is applied to repay the principal. When all of the payments have been made, the loan is paid off @fully amortized@.",fmi,0,81.93,5.5,8.8,6.26,6.2,7.6,7.333333333,8.61
anchor currency,The currency to which a country fixes its exchange rate.,fmi,0,69.79,6,0,7.92,5.7,7.29,5,8
appreciation,Increase in a currency™s value.,fmi,0,49.48,7.6,0,8.44,6.5,13.36,2.5,10
asset,"A financial claim or piece of property that is a store of value. 42,",fmi,0,74.19,6.4,0,4.11,4.1,8.84,8,11.31
asset-backed commercial paper @ABCP@,"Short-term commercial paper secured by a bundle of assets, usually mortgages.",fmi,0,34.93,11.1,0,15.29,12.8,11.36,6.5,11.67
asset management,The acquisition of assets that have a low rate of default and diversification of asset holdings to increase profits.,fmi,0,43.73,11.9,0,12.36,12.4,11.23,11.5,11.81
asset market approach,Determining asset prices using stocks of assets rather than ˚ows.,fmi,0,61.33,7.2,0,13.14,9.9,15.19,5,8
asset-price bubble,An increase in asset prices that are driven above their fundamental economic values by investor psychology.,fmi,0,38.32,11.9,0,15.43,13.7,12.33,11,13.9
asset transformation,The process by which financial intermediaries turn risky assets into safer assets for investors by creating and selling assets with risk characteristics that people are comfortable with and then use the funds they acquire by selling these assets to purchase other assets that may have far more risk.,fmi,0,22.76,22,0,13.94,27.3,10.95,29,23.37
asymmetric information,The inequality of knowledge that each party to a transaction has about the other party.,fmi,0,56.25,9.1,0,9.97,9,7.54,8.5,11.33
audits,Certification by accounting firms that a business is adhering to standard accounting principles.,fmi,0,15.98,14.3,0,18.84,15.5,11.57,11.5,17.51
automated banking machine @ABM@,"An electronic machine that combines in one location an ATM, an Internet connection to the bank™s Web site, and a telephone link to customer service.",fmi,0,54.56,11.9,0,11.09,14.4,10.56,16.5,16.4
automated teller machine @ATM@,"An electronic machine that allows customers to get cash, make deposits, transfer funds from one account to another, and check balances.",fmi,0,58.62,10.3,0,13.4,14.9,9.94,12.5,10.3
balance of payments,A bookkeeping system for recording all payments that have a direct bear-ing on the movement of funds between a country and all other countries.,fmi,0,55.58,11.5,0,11.55,14.1,10.09,13,11.27
balance-of-payments crisis,A foreign exchange crisis stemming from problems in a country™s balance of payments. 418GlossaryZ01_MISH5006_09_GE_GLO.indd   64907/11/17   11,fmi,0,29.86,13.1,0,24.13,22.8,16.27,8,8.9
balloon loan,"A loan on which the payments do not fully pay off the principal balance, meaning that the final payment must be larger than the rest.",fmi,0,63.02,10.7,0,7.84,11.6,8.67,13.5,11.6
bank failure,A situation in which a bank cannot satisfy its obligation to pay its depositors and other creditors and so goes out of business.,fmi,0,39.67,13.4,0,9.52,11.8,8.21,16.5,17.9
bank holding companies,Companies that own one or more banks.,fmi,0,89.75,2.5,0,4.94,2.9,8.5,3.5,8.51
bank panic,"The simultaneous failure of many banks, as during a financial crisis. 210,",fmi,0,42.38,10.3,0,10.83,9.3,12.13,7,11.47
bank supervision,Overseeing who operates banks and how they are operated. 227banker™s acceptance,fmi,0,43.39,9.9,0,17.38,13.6,14.23,8.5,18.95
banks,"Financial institutions that accept deposits and make loans @such as commercial banks, savings and loan associations, and credit unions@.",fmi,0,35.27,13.1,0,17.23,17.3,12.06,13.5,16.02
Basel Accord,An agreement that requires that banks hold as capital at least 8% of their risk-weighted assets.,fmi,0,72.16,7.2,0,10.73,10.4,11.34,8,6.4
Basel Committee on Banking Supervision,"A committee that meets under the auspices of the Bank for International Settlements in Basel, Switzerland, and that sets bank regulatory standards.",fmi,0,40.69,13.1,0,15.14,16.6,11.9,15,16.07
bearer instrument,A security payable to the holder or fibearerfl when presented. No proof of ownership is required. 298behavioral finance,fmi,0,53.88,8,0,12.5,9.3,11.98,5.5,12.49
Board of Governors of the Federal Reserve System,A board with seven governors @including the chair@ that plays an essential role in decision making within the Federal Reserve System.,fmi,0,41.7,12.7,0,13.11,14.4,12.2,15.5,17.92
book entry,"A system of tracking securities owner-ship where no certificate is issued. Instead, the security issuer keeps records, usually electroni-cally, of who holds outstanding securities.",fmi,0,17,13.9,0,18.08,15.4,13.44,9,13.13
branches,Additional offices of banks that conduct banking operations.,fmi,0,21.06,12.3,0,18.05,13.8,15.88,5,13.2
Bretton Woods system,The international monetary system in use from 1945 to 1971 in which exchange rates were fixed and the U.S. dollar was freely convertible into gold @by foreign gov-ernments and central banks only@.,fmi,0,47.46,14.6,0,12.14,18.9,13.12,20,16.55
brokers,Agents for investors who match buyers with sellers.,fmi,0,80.28,4.1,0,11.56,8.5,11.93,3,3.2
bubble,"A situation in which the price of an asset dif-fers from its fundamental market value. 170,",fmi,0,55.24,9.5,0,8.87,8.9,10.35,9,11.4
call provision,"A right, usually included in the terms of a bond, that gives the issuer the ability to repurchase outstanding bonds before they mature.",fmi,0,48.13,12.3,0,10.74,13.2,12.33,16.5,17.9
capital,"Wealth, either financial or physical, that is employed to produce more wealth.",fmi,0,59.3,8,0,12.75,10.9,9.5,7,11.47
capital adequacy management,Managing the amount of capital the bank should maintain and then acquiring the needed capital.,fmi,0,47.79,10.3,0,12.69,11.2,8.59,11.5,11.33
capital buyout,Investors™ funds are pooled and used to buy a controlling interest in a public company that is then taken private.,fmi,0,59.64,9.9,0,9.98,10.9,9.37,13,12
capital call,A requirement of limited partners in a venture capital agreement to supply funds per their commitment with the partnership.,fmi,0,43.73,11.9,0,14.45,14.1,12.89,14.5,16.02
capital controls,Restrictions on the free movement of capital across the borders.,fmi,0,61.33,7.2,0,12.56,9.5,8.87,6,8
capital market,A financial market in which longer-term debt @maturity of greater than one year@ and equity instruments are traded.,fmi,0,44.75,11.5,0,12.7,13.2,11.55,13,16.09
capital mobility,A situation in which foreigners can easily purchase a country™s assets and the country™s residents can easily purchase foreign assets. 412captive finance company,fmi,0,14.29,17,0,17.82,18.5,11.64,18.5,17.9
casualty @liability@ insurance,Protection against finan-cial losses because of a claim of negligence.,fmi,0,44.41,9.6,0,15.46,12.3,13.61,7,12
central bank,"The government agency that over-sees the banking system and is responsible for the amount of money and credit supplied in the economy; in the United States, the Federal Reserve System.",fmi,0,41.03,15,0,12.49,17.9,10.39,19,16
Central Liquidity Facility @CLF@,"The lender of last resort for credit unions, created in 1978 by the Financial Institutions Reform Act. W-",fmi,0,53.21,10.3,0,9.8,10.6,13.3,12,13.87
coinsurance,An insurance policy under which the policyholder bears a percentage of the loss along with the insurance company.,fmi,0,36.28,12.7,0,13.05,12.7,8.92,15,16.09
collateralized debt obligation @CDO@,Securities that pay out cash ˚ows from subprime mortgage-backed securities.,fmi,0,35.95,10.7,0,18.36,14.7,12.03,7,8
collateralized mortgage obligation @CMO@,Securities classified by when prepayment is likely to occur. Investors may buy a group of CMOs that are likely to mature at a time that meets the inves-tors™ needs.,fmi,0,73.68,6.6,0,8.75,7.9,10.35,7.75,9.94
common bond membership,"A requirement that all members of credit unions share some common bond, such as working for the same employer.",fmi,0,69.11,8.3,0,10.21,10.9,11.23,11.5,11.81
common stockholders,"Individuals who have an ownership interest in a firm, with rights to receive dividends and vote on major corporate issues.",fmi,0,34.26,13.5,0,12.01,12.8,10.94,15,18
community banks,Small banks with local roots.,fmi,0,100.24,0.5,0,6.12,4.6,13.36,1.5,2
compensating balance,A required minimum amount of funds that a firm receiving a loan must keep in a checking account at the bank.,fmi,0,75.54,7.9,0,6.73,8.8,9.19,12.5,12.21
competitive bidding,Competing in an auction against other potential buyers of Treasury securities. 294confidential memorandum,fmi,0,-9.41,17.8,0,22.9,18.7,14,11.5,20.58
conventional monetary policy tools,"Three tools of monetary policyŠopen market operations, discount lending, and reserve requirementsŠthe Federal Reserve uses to control the money supply and interest rates.",fmi,0,14.29,17,0,19.56,20.4,14.39,17.5,19.63
conventional mortgages,Mortgage contracts origi-nated by banks and other mortgage lenders that are not guaranteed by the FHA or the VA. They are often insured by private mortgage insurance.,fmi,0,57.77,8.6,0,11.53,9.8,11.32,7.25,8.36
coupon bond,"A credit market instrument that pays the owner a fixed interest payment every year until the maturity date, when a specified anunal amount is paid.",fmi,0,46.1,13,0,11.09,14.2,9.93,16.5,16.4
credit-rating agencies,Investment advisory firms that rate the quality of corporate and municipal bonds in terms of the probability of default.,fmi,0,26.81,14.2,0,13.58,13.4,12.89,15.5,20.23
credit boom,A lending spree when financial institutions expand their lending at a rapid pace.,fmi,0,58.28,8.4,0,12.17,10.1,11.57,7.5,11.35
credit default swap,"A transaction in which one party who wants to hedge credit risk pays a fixed payment on a regular basis, in return for a con-tingent payment that is triggered by a credit event such as the bankruptcy of a particular firm or the downgrading of the firm™s credit rating by a credit rating agency.",fmi,0,25.13,23.2,0,9.19,26.6,12.16,33,25.3
credit derivatives,"Derivatives that have payoffs to previously issued securities, but ones that bear credit risk.",fmi,0,31.89,12.3,0,14.84,12.8,13.35,9,14.17
credit easing,The altering of the composition of the Fed™s balance sheet in order to improve the functioning of particular segments of the credit markets.,fmi,0,39.67,13.4,0,12.54,14.2,10.96,15.5,16.16
credit-linked note,A type of credit derivative that is a combination of a bond and a credit option.,fmi,0,55.24,9.5,0,5.62,5.7,10.35,9,11.4
credit options,"Options in which for a fee, the purchaser has the right to get profits that are tied either to the price of an underlying risky security or to an interest rate.",fmi,0,56.93,13,0,7.27,13.8,9.76,19.5,17.56
credit rationing,A lender™s refusing to make loans even though borrowers are willing to pay the stated interest rate or even a higher rate or restricting the size of loans to less than the amount being sought.,fmi,0,61.33,13.4,0,9.35,17.3,9.88,21.5,18.57
credit swap,A transaction in which risky payments on loans are swapped for each other.,fmi,0,83.66,4.8,0,9.03,7.5,10.35,6.5,8.28
credit union,"A financial institution that focuses on servicing the banking and lending needs of its members, who must be linked by a common bond.",fmi,0,48.13,12.3,0,10.28,12.6,12.33,15.5,16.16
Credit Union National Association @CUNA@,A central credit union facility that encourages establishing credit unions and provides information to its members.,fmi,0,21.4,14.3,0,18.33,16,14.3,12,16.4
Credit Union National Extension Bureau @CUNEB@,A central credit union facility established in 1921 that was later replaced by the Credit Union National Association.,fmi,0,27.83,13.9,0,14.32,13.8,13.3,13,16.09
creditor,A lender or holder of debt.,fmi,0,99.23,0.9,0,-0.54,-1.2,9.2,2,2.4
currency board,"A monetary regime in which the domestic currency is backed 100% by a foreign currency @say, dollars@ and in which the note-issuing authority, whether the central bank or the government, establishes a fixed exchange rate to this foreign currency and stands ready to exchange domestic currency at this rate whenever the public requests it.",fmi,0,16.67,24.4,0,13.25,30.3,10.99,39,26.04
currency swap,A swap that involves the exchange of a set of payments in another currency.,fmi,0,65.73,7.6,0,7.42,6.4,8.84,8,8.46
currency union,A situation in which a group of coun-tries decide to adopt a common currency. @Also called a monetary union.@,fmi,0,52.19,10.7,0,8.99,10.6,12.06,12.5,13.92
current account,An account that shows international transactions involving currently produced goods and services.,fmi,0,17,13.9,0,22.9,18.3,13.44,9,18.13
dealers,People who link buyers with sellers by buy-ing and selling securities at stated prices.,fmi,0,57.27,8.8,0,11.94,10.5,13.35,7,8.46
deductible,An amount of any loss that must be paid by the insured before the insurance company will pay anything.,fmi,0,69.11,8.3,0,8.07,8.9,6.24,11.5,9.71
deep markets,"Markets in which there are many par-ticipants and a great deal of activity, thus ensuring that securities can be rapidly sold at fair prices.",fmi,0,55.58,11.5,0,10.8,13.7,10.09,16,16.27
default,A situation in which the party issuing a debt instrument is unable to make interest payments or pay off the amount owed when the instrument matures.,fmi,0,45.09,13.4,0,10.22,13.8,10.39,18,16.55
default-free bonds,"Bonds with no default risk, such as U.S. government bonds.",fmi,0,86.71,3.7,0,7.34,6.6,12.03,5,4
default risk,The risk that a loan customer may fail to repay a loan as promised.,fmi,0,99.57,2.9,0,4.11,3.8,6.59,6,5.6
defensive open market operations,Open market operation intended to offset movements in other factors that affect reserves and the monetary base.,fmi,0,37.3,12.3,0,14.5,13.4,11.91,11.5,13.86
deferred load,A fee on a mutual fund investment that is charged only if the investment is withdrawn. The amount of the deferred load usually falls the longer the investment is left in the fund. 528defined-benefit plan,fmi,0,62.17,8.9,0,9.92,10.1,9.92,11.75,11.57
deleveraging,When financial institutions cut back on their lending because they have less capital.,fmi,0,49.82,9.5,0,13.96,11.5,7.93,8.5,11.35
demand curve,A curve depicting the relationship between quantity demanded and price when all other economic variables are held constant.,fmi,0,36.28,12.7,0,16.24,15.3,10.67,14,18.31
demand deposit,A deposit held by a bank that must be paid to the depositor on demand. Demand deposits are more commonly called checking accounts,fmi,0,68.26,6.6,0,8.27,6.2,9.01,5.75,8.08
deposit facility,The European Central Bank™s standing facility in which banks are paid a fixed interest rate 100 basis points below the target financing rate.,fmi,0,48.13,12.3,0,12.77,14.4,13.7,15.5,16.16
deposit rate ceilings,Restrictions on the maximum interest rates payable on deposits.,fmi,0,45.42,9.2,0,15.74,11.8,14.61,6.5,16.93
depreciation,Decrease in a currency™s value.,fmi,0,49.48,7.6,0,8.44,6.5,13.36,2.5,10
devaluation,Resetting of the par value of a currency at a lower level.,fmi,0,59.3,8,0,4.05,3,9.5,7,11.47
direct placement,An issuer™s bypassing the dealer and selling the security directly to the investor. 299dirty ˚oat,fmi,0,47.79,10.3,0,13.85,12.1,14.91,10.5,14
discount,When the bond sells for less than the par value.,fmi,0,103.63,1.3,0,3.28,1.9,8.87,4,4
discount loans,"A bank™s borrowings from the Federal Reserve System. @Also known as advances.@ 245,",fmi,0,58.28,8.4,0,11.3,10.8,12.78,7.5,11.35
discount points,Percentage of the total loan paid back immediately when a mortgage loan is obtained. Payment of discount points lowers the annual interest rate on the debt.,fmi,0,58.28,8.4,0,10.6,8.8,10.96,7.5,11.35
discount rate,"The interest rate that the Federal Reserve charges banks on discount loans. 246,",fmi,0,66.74,7.2,0,11.3,9.7,14,7.5,11.35
discount window,The Federal Reserve facility at which discount loans are made to banks.,fmi,0,59.3,8,0,10.37,8.1,12.13,7,11.47
discount yield,See yield on a discount basis.,fmi,0,90.77,2.1,0,2.37,1.2,11.83,2,2.4
discounting,"Reduction in the value of a security at purchase such that when it matures at full value, the investor receives a fair return.",fmi,0,56.59,11.1,0,8.71,11.4,8.9,13.5,12.68
disintermediation,A reduction in the ˚ow of funds into the banking system that causes the amount of financial intermediation to decline. 491diversification,fmi,0,16.32,16.2,0,14.74,15.3,12.2,14.5,16.02
dividends,Periodic payments made by equities to shareholders.,fmi,0,22.07,11.9,0,16.54,12.4,13.01,5.5,19.94
dollarization,"A monetary strategy in which a country abandons its currency altogether and adopts that of another country, typically the U.S. dollar.",fmi,0,24.78,15,0,13.11,14.6,11.45,16.5,17.92
down payment,A portion of the original purchase price that is paid by the borrower so that the borrower will have equity @ownership interest@ in the asset pledged as collateral.,fmi,0,43.06,14.2,0,10.8,15.6,10.66,21,19.77
dual banking system,The system in the United States in which banks supervised by the federal govern-ment and banks supervised by the states operate side by side.,fmi,0,55.58,11.5,0,11.03,13.7,8.77,17,14.6
dual mandate,"A central bank mandate in which there are two equal objectives, price stability and maximum employment.",fmi,0,46.78,10.7,0,13.63,12.5,10.35,12,16.4
due diligence period,A 20- to 40-day period used by the buyer of a firm to verify the accuracy of the information contained in the confidential memo-randum.,fmi,0,30.2,15,0,9.12,12.6,12.72,18,17.93
duration gap analysis,A measurement of the sensi-tivity of the market value of a bank™s assets and liabilities to changes in interest rates.,fmi,0,34.26,13.5,0,10.85,11.9,11.73,14,16
dynamic open market operations,Open market opera-tions intended to change the level of reserves and the monetary base.,fmi,0,48.81,9.9,0,11.94,10.5,9.97,9,11.31
early-stage investing,Investment by a venture capital firm in a company that is in the very beginning stage of its development.,fmi,0,52.19,10.7,0,8.99,9.6,7.9,14.5,11.81
easing of monetary policy,A lowering of the federal funds rate.,fmi,0,64.37,6,0,4.94,2.9,10.75,4.5,14.23
e-cash,A form of electronic money used on the Internet to pay for goods and services.,fmi,0,73.17,6.8,0,6.49,6.2,7.54,8.5,11.33
econometric model,A model whose equations are estimated using statistical procedures.,fmi,0,11.58,13.9,0,18.3,14,14.61,6.5,16.93
economies of scale,Savings that can be achieved through increased size.,fmi,0,88.74,2.9,0,12.25,9.1,7.98,3,3.2
economies of scope,"Increased business that can be achieved by offering many products in one easy-to-reach location. 66, 197,",fmi,0,55.24,9.5,0,13.22,13.1,11.34,11,11.4
Edge Act corporation,A special subsidiary of a U.S. bank that is engaged primarily in international banking.,fmi,0,40.35,11.1,0,11.53,10.5,13.35,8,11.31
effective exchange rate index,An index re˚ecting the value of a basket of representative foreign currencies. 392efficient market hypothesis,fmi,0,5.49,16.2,0,18.49,15.9,12.8,11.5,16.67
electronic money @or e-money@,Money that exists only in electronic form and substitutes for cash as well.,fmi,0,66.74,7.2,0,9.5,7.9,7.93,7.5,11.35
emerging market economies,"Economies in an earlier stage of market development that have recently opened up to the ˚ow of goods, services, and capital from the rest of the world.",fmi,0,60.99,11.5,0,9.23,13.9,9.07,17.5,15.24
Employee Retirement Income Security Act @ERISA@,A comprehensive law passed in 1974 that set standards that must be followed by all pension plans.,fmi,0,71.14,7.6,0,9.74,9.5,10.98,8.5,9.15
equities,Claims to share in the net income and assets of a corporation @such as common stock@.,fmi,0,72.16,7.2,0,6.73,7.2,8.38,8,8.9
equity capital,See net worth.,fmi,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
equity multiplier,The amount of assets per dollar of equity capital.,fmi,0,53.88,8,0,7.39,5.1,9.35,5.5,8.04
Euro system,"The monetary authority of the Eurozone, comprising the ECB and the NCBs of those EU member states that have adopted the euro.",fmi,0,57.61,10.7,0,9.63,11.8,11.19,15,16.07
Eurobonds,Bonds denominated in a currency other than that of the country in which they are sold.,fmi,0,63.7,8.4,0,7.83,7.5,7.39,9,11.4
Eurocurrencies,Foreign currencies deposited in banks outside the home country.,fmi,0,45.42,9.2,0,15.74,11.8,11.1,5.5,12.49
European System of Central Banks @ESCB@,A banking system that consists of the European Central Bank @ECB@ and the national central banks @NCBs@ of all 28 member states of the European Union @EU@.,fmi,0,60.99,11.5,0,9.23,14.6,11.99,16.5,13.76
Eurozone or area,The economic region formed by those European Union @EU@ member countries that have adopted the euro.,fmi,0,55.24,9.5,0,12.18,11.6,13.31,9,11.4
excess demand,A situation in which quantity demanded is greater than quantity supplied.,fmi,0,34.93,11.1,0,14.25,11.1,11.36,8.5,15.31
excess reserves,Reserves in excess of required reserves.,fmi,0,56.93,6.8,0,12.05,9,11.83,2,2.4
excess supply,A situation in which quantity supplied is greater than quantity demanded.,fmi,0,34.93,11.1,0,14.25,11.1,11.36,8.5,15.31
Executive Board of the ECB,"One of the three main decision-making bodies of the European Central Bank @ECB@, consisting of the president and the vice-president of the ECB along with 4 other members.",fmi,0,43.06,14.2,0,11.38,16.6,10.66,19,16.91
exercise price,The price at which the purchaser of an option has the right to buy or sell the under-lying financial instrument. @Also known as the strike price.@,fmi,0,62.01,11.1,0,8.88,13.5,7.96,17,15.02
factoring,"The sale of accounts receivable to another firm, which takes responsibility for collections. W-",fmi,0,31.89,12.3,0,14.84,13.2,12.23,11,14.17
fair-value accounting,An accounting principle in which assets are valued in the balance sheet at what they would sell for in the market.,fmi,0,67.08,9.1,0,8.41,10.2,8.44,12.5,12.21
Federal Credit Union Act,Law passed in 1934 that allowed federal chartering of credit unions in all states. W-,fmi,0,73.17,6.8,0,8.81,8.3,12.8,8.5,11.33
federal funds rate,The interest rate on overnight loans of deposits at the Federal Reserve.,fmi,0,67.76,6.8,0,10.83,8.5,10.81,7,11.47
Federal Home Loan Bank Act of 1932,Law that created the Federal Home Loan Bank Board and a net-work of regional home loan banks. W-,fmi,0,70.13,8,0,6.9,8.2,8.92,12,13.87
Federal Home Loan Bank Board @FHLBB@,"Agency respon-sible for regulating and controlling savings and loan institutions, abolished by FIRREA in 1989.",fmi,0,22.41,13.9,0,18.09,16.2,13.85,11.5,14
Federal Open Market Committee @FOMC@,"The commit-tee that makes decisions regarding the conduct of open market operations; composed of the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and the presidents of four other Federal Reserve banks on a rotating basis.",fmi,0,12.27,24,0,12.38,27.4,12.12,36,26.4
Federal Reserve banks,The 12 district banks in the Federal Reserve system.,fmi,0,62.34,6.8,0,8.67,6.1,14.61,4.5,8.04
Federal Reserve System @the Fed@,The central banking authority responsible for monetary policy in the United States.,fmi,0,17,13.9,0,16.17,12.8,12.13,9,18.13
Federal Savings and Loan Insurance Corporation @FSLIC@,An agency that provided deposit insurance to savings and loans similar to the Federal Deposit Insurance Corporation that insures banks. FSLIC was eliminated in 1989.,fmi,0,33.41,11.7,0,14.08,11.4,11.84,8.75,14.6
FICO scores,A credit history of a potential borrower by lenders to determine a borrowers™ creditwor-thiness. 360financial crisis,fmi,0,-3.99,17.8,0,18.33,16.3,14.3,15,21.4
futures options,Options in which the under-lying instrument is a futures contract. @Also called futures options.@ 630financial globalization,fmi,0,12.94,15.4,0,20.12,18.6,11.34,12,13.9
Financial Institutions Reform Act,Law passed in 1978 that created the Central Liquidity Facility as the lender of last resort for credit unions. W-,fmi,0,51.18,11.1,0,9.4,10.7,13.31,13,14
"Financial Institutions Reform, Recovery, and Enforcement Act",Law passed in 1989 to stop losses in the sav-ings and loan industry. It reversed much of the deregulation included in the GarnŒSt Germain Act of 1982.,fmi,0,74.69,6.2,0,8.11,6.9,11.32,7.25,9.84
FINRA,The Financial Industry Regulatory Author-ity; formerly the National Association of Security Dealers @NASD@. 324fire sales,fmi,0,-28.36,20.9,0,21.57,19.7,17.01,15.5,24.67
Fisher effect,"The outcome that when expected inflation occurs, interest rates will rise; named after economist Irving Fisher. 121fixed exchange rate regime",fmi,0,34.26,13.5,0,17.23,17.3,14.1,14,16
foreign bonds,Bonds sold in a foreign country and denominated in that country™s currency.,fmi,0,42.38,10.3,0,12.28,9.7,10.81,7,11.47
foreign exchange intervention,An international finan-cial transaction in which a central bank buys or sells currency to in˚uence foreign exchange rates.,fmi,0,36.28,12.7,0,15.6,15,14.18,13,13.87
foreign exchange rate,See exchange rate.,fmi,0,93.81,0.9,0,3.43,5.2,0.15,0.5,1.2
forward guidance,A strategy in which the Fed committed to keep the federal funds rate at zero,fmi,0,64.71,8,0,6.08,5.5,9.64,10.5,14
forward rate,The interest rate predicted by pure expectations theory of the term structure of interest rates to prevail in the future.,fmi,0,42.72,12.3,0,12.01,12.6,10.94,15,16
forward transaction,An exchange rate transaction that involves the exchange of bank deposits denominated in different currencies at some specified future date.,fmi,0,25.8,14.6,0,17.23,16.8,10.16,15,16
free-rider problem,The problem that occurs when people who do not pay for information take advantage of the information that other people have paid for.,fmi,0,48.13,12.3,0,10.74,12.8,7.52,14.5,12.68
fully amortized loan,"A fixed-payment loan in which the lender provides the borrower with an amount of funds that must be repaid by making the same payment every period, consisting of part of the principal and interest for a set number of years.",fmi,0,39.34,17.7,0,9.59,20.2,9.96,26,21
fully funded,Describing a pension plan in which the contributions to the plan and their earnings over the years are sufficient to pay out the defined benefits when they come due.,fmi,0,58.96,12.2,0,10.51,15.3,9.43,18.5,17.12
fully subscribed,Describing a security issue for which all of the securities available have been spoken for before the issue date.,fmi,0,43.73,11.9,0,11.43,11.6,9.57,12.5,13.92
fundamental economic values,The values of assets based on realistic expectations of the assets™ future income streams.,fmi,0,31.89,12.3,0,13.62,11.5,12.23,9,11.31
gap analysis,"A measurement of the sensitivity of bank profits to changes in interest rates, calculated by subtracting the amount of rate-sensitive liabilities minus rate-sensitive assets. @Also called income gap  analysis.@",fmi,0,-0.27,20.5,0,18.11,22.5,13.24,23.5,22.63
General Council of the ECB,"One of the three main decision-making bodies of the European Central Bank @ECB@, consisting of the president and the vice-president of the ECB and the governors of the NCBs of the 28 EU member states.",fmi,0,44.41,15.8,0,9.82,18.4,10.79,23.5,19.71
general obligation bonds,"Bonds that are secured by the full faith and credit of the issuer, which includes the taxing authority of municipalities.",fmi,0,42.72,12.3,0,11.72,12.6,10.94,12,12
generalized dividend model,Calculates that the price of stock is determined only by the present value of the dividends.,fmi,0,63.7,8.4,0,9.97,9.2,7.39,11,13.9
Glass-Steagall Act,Law that made it illegal for com-mercial banks to underwrite securities for sale to the public.,fmi,0,55.24,9.5,0,10.73,10.1,10.35,12,13.9
goal independence,The ability of the central bank to set the goals of monetary policy.,fmi,0,66.74,7.2,0,6.37,5.4,10.35,8.5,14.43
Gordon growth model,A simplified model to compute the value of a stock by assuming constant divi-dend growth.,fmi,0,47.79,10.3,0,10.37,9.6,12.8,10.5,11.33
Governing Council of the ECB,"One of the three main decision-making bodies of the European Central Bank @ECB@, consisting of governors from the 19 Euro area NCBs and members of the Executive Board.",fmi,0,43.06,14.2,0,10.97,16.1,12.36,19,18.34
haircuts,Requirements that borrowers have more collateral than the amount of the  loan.,fmi,0,50.84,9.2,0,13.27,10.5,8.18,8,14.8
hedge,To protect oneself against risk.,fmi,0,83.32,2.9,0,9.6,7.4,10.2,1.5,2
hedge funds,"A special type of mutual fund that acquires funds by selling shares but only to very wealthy people, so they are less regulated than mutual funds.",fmi,0,53.55,12.3,0,9.58,13.5,11,16,13.48
hierarchical mandate,"A mandate for the central bank that puts the goal of price stability first, but as long as it is achieved other goals can be pursued.",fmi,0,70.47,9.9,0,6.68,11.1,9.18,14,11.94
hybrid funds,A mutual fund that is composed of both stocks and bonds.,fmi,0,85.69,4,0,5.26,3.8,11.36,5.5,8.04
impossible trinity,See policy trilemma.,fmi,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
incentive-compatible,Aligning the incentives of both parties to a contract.,fmi,0,62.34,6.8,0,9.94,7.1,11.1,4.5,8.04
income gap analysis,See gap analysis.,fmi,0,59.97,5.6,0,1.52,3.6,14.31,1.5,14.53
indexed bonds,Bonds whose interest and principal payments are adjusted for changes in the price level and whose interest rate thus provides a direct measure of a real interest rate.,fmi,0,43.06,14.2,0,11.78,16.1,9.54,19,15.49
individual retirement account @IRA@,Retirement account in which pretax dollars can be invested by individuals not covered by some other retire-ment plan. 566in˚ation targeting,fmi,0,25.8,14.6,0,16.94,16.8,13.31,15,16
initial public offering @IPO@,A corporation™s first sale of securities to the public.,fmi,0,45.42,9.2,0,10.58,7.7,9.35,5.5,12.49
insolvent,A situation in which the value of a firm™s or bank™s assets have fallen below its liabilities; bankrupt.,fmi,0,44.75,11.5,0,9.8,10.3,10.67,11,11.64
instrument independence,The ability of the central bank to set monetary policy instruments.,fmi,0,43.39,9.9,0,11.06,8.5,11.36,8.5,18.95
insured mortgage,Mortgages guaranteed by either the Federal Housing Administration or the Veterans Administration. These agen-cies guarantee that the bank making the loan will not suffer any losses if the borrower defaults.,fmi,0,30.87,12.7,0,15.77,13.9,10.7,11,14
interest parity condition,The observation that the domestic interest rate equals the foreign interest rate plus the expected appreciation in the foreign currency.,fmi,0,17.34,15.8,0,16.36,16.1,11.73,17,20
interest-rate forward contracts,Forward contracts that are linked to debt instruments.,fmi,0,71.82,5.2,0,13.7,10.3,11.93,4,8.2
interest-rate risk,The possible reduction in returns that is associated with changes in interest rates.,fmi,0,41.36,10.7,0,13.5,11.2,11.57,10.5,14.43
interest-rate swap,A financial contract that allows one party to exchange @swap@ a set of interest payments for another set of interest payments owned by another party.,fmi,0,37.64,14.2,0,11.32,14.6,9.3,17.5,13.2
intermediate-term,"With reference to a debt instrument, having a maturity of between 1 and 10 years.",fmi,0,56.25,9.1,0,7.24,7.1,11.75,10.5,14
international banking facilities @IBFs@,Banking estab-lishments in the United States that can accept time deposits from foreigners but are not subject to either reserve requirements or restrictions on interest payments.,fmi,0,36.63,14.6,0,16.95,19.5,11,18,16.55
International Monetary Fund @IMF@,The international organization created by the Bretton Woods agree-ment whose objective is to promote the growth of world trade by making loans to countries experi-encing balance-of-payments difficulties.,fmi,0,10.23,18.5,0,19.96,23,13.75,20.5,18.21
international reserves,Central bank holdings of assets denominated in foreign currencies.,fmi,0,20.04,12.7,0,17.66,13.4,14.61,5.5,12.49
inverted yield curve,A yield curve that is downward sloping.,fmi,0,89.75,2.5,0,6.56,4.3,10.75,2.5,2.8
investment banker,A securities dealer who facilitates the transfer of securities from the original issuer to the public.,fmi,0,29.86,13.1,0,13.63,12.2,10.35,12,13.9
investment banks,Firms that assist in the initial sale of securities in the primary market.,fmi,0,58.28,8.4,0,9.03,7.5,10.35,7.5,11.35
January effect,An abnormal rise in stock prices from December to January.,fmi,0,61.33,7.2,0,9.08,6.6,7.29,7,8
junk bonds,Bonds rated lower than BBB by bond-rating agencies. Junk bonds are not investment grade and are considered speculative. They usually have a high yield to compensate investors for their high risk.,fmi,0,69.48,6.1,11.2,11.34,8.8,11.79,6.166666667,10.57
"large, complex banking organizations @LCBOs@",Large companies that provide banking as well as many other financial services.,fmi,0,50.84,9.2,0,13.73,10.9,10.81,7,11.47
later-stage investing,Investment by a venture  capital firm in a company to help the firm grow to a critical mass needed to attract public financing.,fmi,0,39.67,13.4,0,9,11.4,10.27,16.5,14.42
law of large numbers,"The observation that when many people are insured, the probability distri-bution of the losses will assume a normal prob-ability distribution.",fmi,0,8.88,17,0,17.23,17.5,13.31,15,16
law of one price,"The principle that if two or more countries produce an identical good, the price of this good should be the same no matter which country produces it.",fmi,0,69.45,10.3,0,9,13.5,7.9,15.5,13.76
lender of last resort,Provider of reserves to financial institutions when no one else would provide them to prevent a financial crisis.,fmi,0,53.21,10.3,0,13.05,12.7,10.67,12,11.64
letter of intent,A document issued by a prospective buyer that signals a desire to go forward with a purchase and that outlines the preliminary terms of the purchase.,fmi,0,53.55,12.3,0,10.45,14,10.39,15,13.48
leverage cycle,A lending boom and then a lending crash.,fmi,0,88.74,2.9,0,3.55,2,6.01,3,3.2
liabilities,IOUs or debts.,fmi,0,119.19,-2.7,0,-4.29,-1.2,14.31,0.5,1.2
liability management,The acquisition of funds at low cost to increase profits.,fmi,0,69.79,6,0,8.5,6.2,10.45,5,8
lien,A legal claim against a piece of property that gives a lender the right to foreclose or seize the property if a loan on the property is not repaid as promised.,fmi,0,65.39,11.8,0,7.27,13.7,9.76,18.5,13.69
liquid,Easily converted into cash.,fmi,0,8.2,13.1,0,10.15,8.8,11.73,3,21.6
liquid market,A market in which securities can be bought and sold quickly and with low transaction costs.,fmi,0,72.16,7.2,0,9.63,8.9,7.39,9,11.4
liquidity management,The decision made by a bank to maintain sufficient liquid assets to meet the bank™s obligations to depositors.,fmi,0,44.75,11.5,0,12.06,11.9,11.55,13,16.09
liquidity preference framework,A model developed by John Maynard Keynes that predicts the equilib-rium interest rate on the basis of the supply of and demand for money.,fmi,0,47.12,12.7,0,10.1,12.9,12.72,15,12.93
liquidity premium theory,The theory that the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a positive term @liquidity@ premium.,fmi,0,36.97,16.6,0,10.8,18.7,10.43,25,21.84
liquidity risk,The risk that a firm may run out of cash needed to pay bills and to keep the firm operating.,fmi,0,85.02,6.4,0,3.6,5.8,8.58,11,10
liquidity services,Services that make it easier for customers to conduct transactions.,fmi,0,52.87,8.4,0,14.3,10.9,12.03,6,12
loan commitment,A bank™s commitment @for a speci-fied future period of time@ to provide a firm with loans up to a given amount at an interest rate that is tied to some market interest rate.,fmi,0,54.9,13.8,0,7.38,15.2,10.54,21.5,16.84
loan sale,"The sale under a contract @also called a secondary loan participation@ of all or part of the cash stream from a specific loan, thereby removing the loan from the bank™s balance sheet.",fmi,0,55.92,13.4,0,10.17,16.9,9.66,19,16.55
London interbank bid rate @LIBID@,The rate of interest large international banks charge on overnight loans among themselves.,fmi,0,66.74,7.2,0,16.17,13.3,10.35,7.5,11.35
London interbank offer rate @LIBOR@,The interest rate charged on short-term funds bought or sold between large international banks.,fmi,0,57.27,8.8,0,15.25,13.2,9.97,8,11.31
long-term,"With reference to a debt instrument, having a maturity of 10 years or more. 58longer-term refinancing operations",fmi,0,28.84,13.5,0,14.15,13.7,12.84,14.5,18.56
macro hedge,A hedge of interest-rate risk for a financial institution™s entire portfolio.,fmi,0,26.47,12.3,0,15.81,12.8,15.67,8.5,18.95
macroprudential regulation,Regulatory policy to affect what is happening in credit markets in the aggregate.,fmi,0,24.44,13.1,0,12.17,10.1,12.78,10.5,17.51
macroprudential supervision,Supervision that focuses on the safety and soundness of the financial system in the aggregate. 467main refinancing operations,fmi,0,10.91,16.2,0,16.88,15.8,12.42,15,20.53
margin credit,Loans advanced by a brokerage house to help investors buy securities.,fmi,0,60.31,7.6,0,12.1,9.3,11.36,6.5,11.67
margin requirement,A sum of money that must be kept in an account @the margin account@ at a brokerage firm.,fmi,0,78.59,6.8,0,4.35,6.1,7.16,9,9.42
marginal lending facility,The European Central Bank™s standing lending facility in which banks can borrow @against eligible collateral@ over-night loans from the national central bank at a rate 100 basis points above the target financing rate.,fmi,0,29.52,17.3,0,15.1,21.5,12.93,22.5,20.47
marginal lending rate,The interest rate charged by the European Central Bank for borrowing at its marginal lending facility.,fmi,0,38.32,11.9,0,13.63,12.2,12.33,13,18.9
market equilibrium,A situation occurring when the quantity that people are willing to buy @demand@ equals the quantity that people are willing to sell @supply@.,fmi,0,39.67,13.4,0,11.78,14.4,8.9,15.5,14.42
market fundamentals,Items that have a direct effect on future income streams of the security.,fmi,0,66.74,7.2,0,8.63,7.2,10.35,6.5,8.28
market maker,"Dealers who buy or sell securities from their own inventories, thereby ensuring that there is always a market in which investors can buy or sell their securities.",fmi,0,44.07,13.8,0,11.78,15.8,8.48,17.5,15.24
market segmentation theory,"A theory of the term structure that sees markets for different maturity bonds as completely separated and segmented such that the interest rate for bonds of a given maturity is determined solely by supply and
demand for bonds of that maturity.",fmi,0,21.4,20.5,0,12.32,22.5,11.06,30.5,23.23
matched sale-purchase transaction,An arrangement whereby the Fed sells securities and the buyer agrees to sell them back to the Fed in the near future; sometimes called a reverse repo.,fmi,0,60.99,11.5,0,9.23,13.7,10.82,15.5,13.76
maturity,Time to the expiration date @maturity date@ of a debt instrument.,fmi,0,51.85,8.8,0,8.97,7.6,9.92,7.5,15.31
mean reversion,"The phenomenon that stocks with low returns today tend to have high returns in the future, and vice versa.",fmi,0,69.11,8.3,0,8.99,9.9,10.4,10.5,9.71
mergers and acquisitions market,"An informal and unorganized market where firms are bought, sold, or merged with other firms.",fmi,0,64.71,8,0,11.13,10.6,8.59,8.5,11.33
micro hedge,A hedge for a specific asset.,fmi,0,73.85,4.5,0,1.38,0.4,11.83,3,9.07
microprudential supervision,Supervision that focuses on the safety and soundness of individual finan-cial institutions.,fmi,0,0.08,16.2,0,19.53,16,13.44,11,18.13
monetary base,"The sum of the Fed™s monetary liabili-ties @currency in circulation and reserves@ and the U.S. Treasury™s monetary liabilities @Treasury currency in circulation, primarily coins@.",fmi,0,8.53,15.1,0,17.39,15.2,12.13,10.5,14.8
monetary targeting,A monetary policy strategy in which the central bank announces that it will achieve a certain value @the target@ of the annual growth rate of a monetary aggregate.,fmi,0,43.06,14.2,0,10.57,15.5,10.66,20,18.34
monetary union,A situation in which a group of coun-tries decide to adopt a common currency. @Also called a currency union.@,fmi,0,52.19,10.7,0,8.99,10.6,11.23,12.5,11.81
money,Anything that is generally accepted in pay-ment for goods or services or in the repayment of debts. @Also called money supply.@,fmi,0,50.16,11.5,0,10.91,13.1,10.69,13.5,14.11
money center banks,Large banks in key financial cen-ters.,fmi,0,73.85,4.5,0,9.15,7.5,14.46,3,9.07
money market mutual funds,Funds that accumulate investment dollars from a large group of people and then invest in short-term securities such as Treasury bills and commercial paper.,fmi,0,38.66,13.8,0,14.45,16.5,10.75,16,16.27
money market securities,"Securities that have an original maturity of less than one year, such as Treasury bills, commercial paper, banker™s accep-tances, and negotiable certificates of deposit.",fmi,0,30.2,15,0,16.83,19.2,12.06,19,19.6
monoline insurance companies,Companies that specialize in credit insurance.,fmi,0,14.63,12.7,0,17.85,13.7,14.46,5,22.4
money supply,See money.,fmi,0,77.91,2.9,0,-7.41,0.8,0.1,0,0.8
moral hazard,The risk that one party to a transaction will engage in behavior that is undesirable from the other party™s point of view.,fmi,0,57.61,10.7,0,9.11,11.2,9.03,14,14.25
mortgage,A long-term loan secured by real estate.,fmi,0,81.29,3.7,0,6.56,5,8.5,2.5,2.8
mortgage pass-through,A security that has the multiple borrowers™ mortgage payments pass through a trustee before being disbursed to the investors.,fmi,0,43.73,11.9,0,15.08,14.6,11.23,12.5,13.92
mutual insurance company,An insurance company that is owned by the policyholders and has the objective of providing insurance for the lowest possible price.,fmi,0,33.24,13.8,0,13.11,14,9.19,17.5,16.02
named-peril policy,Insurance policy that protects against loss from perils that are specifically named in the policy.,fmi,0,47.79,10.3,0,14.2,12.4,10.7,11.5,14
National Association of Securities Dealers Automated Quotation System @NASDAQ@,A computerized net-work that links dealers around the country and provides price quotes on over-the-counter secu-rities.,fmi,0,38.32,11.9,0,18.67,17.5,11.34,11,8.9
national banks,Federally chartered banks.,fmi,0,9.21,12.7,0,18.92,17.8,19.58,1.5,14.53
National Credit Union Act of 1970,"Law that estab-lished the National Credit Union Administration @NCUA@, an independent agency charged with the task of regulating and supervising federally chartered credit unions and state-chartered credit unions that receive federal deposit insurance.",fmi,0,4.14,20.9,0,20.9,26.5,13.41,26.5,22.9
National Credit Union Share Insurance Fund @NCUSIF@,"Agency established by the National Credit Union Act of 1970 that is controlled by the National Credit Union Administration and insures the deposits in credit unions for $100,000 per account.",fmi,0,41.03,15,0,13.88,18.9,12.49,19,16
natural rate of unemployment,The rate of unemploy-ment consistent with full employment at which the demand for labor equals the supply of labor.,fmi,0,52.19,10.7,0,11.72,12.1,11.23,12.5,13.92
net asset value,"The total value of a mutual fund™s assets minus any liabilities, divided by the num-ber of shares outstanding.",fmi,0,36.28,12.7,0,11.42,11.9,15.06,13,16.09
net exports,The balance of trade in both goods and services.,fmi,0,96.18,2.1,0,6.06,4,7.59,3.5,3.6
net interest margin @NIM@,The difference between interest income and interest expense as a per-centage of assets.,fmi,0,32.9,11.9,0,14.43,12.2,10.35,10.5,11.35
net worth,The difference between a firm™s assets @what it owns or is owed@ and its liabilities @what it owes@. @Also called equity capital.@,fmi,0,49.15,11.9,0,9.34,12.9,11.19,15,12.44
no-load fund,A mutual fund that does not charge a fee when funds are added to or withdrawn from the fund.,fmi,0,86.03,6,0,4.99,6.4,9.57,10.5,9.71
nominal anchor,"A nominal variable such as the in˚a-tion rate, an exchange rate, or the money supply that monetary policy makers use to tie down the price level.",fmi,0,53.55,12.3,0,8.88,13.3,9.18,17,15.02
noncompetitive bidding,Offering to buy Treasury securities without specifying a price; the securi-ties are ultimately sold at the weighted average of the competitive bids accepted at the same auction.,fmi,0,18.69,17.4,0,14.8,18.4,12.58,21.5,21.17
nonconventional monetary policy tools,Three non-interest-rate tools used to stimulate the economy,fmi,0,29.52,11.1,0,16.6,13.2,13.9,6,18.2
off-balance-sheet activities,"Bank activities that involve trading financial instruments and the generation of income from fees and loan sales, all of which affect bank profits but are not visible on bank balance sheets.",fmi,0,40.01,15.4,0,12.89,18.4,11.8,20.5,18.85
open-end fund,A mutual fund that accepts invest-ments and allows investors to redeem shares at any time. The value of the shares is tied to the value of investment assets of the fund.,fmi,0,72.66,7,0,7.89,7.4,10.52,8.25,8.78
open market operations,"The buying and selling of government securities in the open market that affect both interest rates and the amount of reserves in the banking system. 230,",fmi,0,53.55,12.3,0,11.15,14.7,11,16,13.48
open-peril policies,See named-peril policies.,fmi,0,34.59,9.2,0,15.03,16.2,19.58,1.5,1.2
operating expenses,The expenses incurred from a bank™s ongoing operations.,fmi,0,29.52,11.1,0,14.46,10.8,13.9,6,18.2
operating income,The income earned on a bank™s ongoing operations.,fmi,0,46.44,8.8,0,10.11,7.3,11.93,5,13.2
opportunity cost,The amount of interest @expected return@ sacrificed by not holding an alternative asset.,fmi,0,32.9,11.9,0,14.43,12.6,11.57,10.5,17.51
options,"Contracts that give the purchaser the option @right@ to buy or sell the underlying financial instrument at a specified price, called the exercise price or strike price, within a specific period of time @the term to expiration@.",fmi,0,33.92,17.7,0,12.14,21.4,11.45,27.5,24.53
originate-to-distribute model,"A business model in which the mortgage is originated by a separate party, typically a mortgage broker, and then dis-tributed to an investor as an underlying asset in a security.",fmi,0,24.11,17.4,0,11.15,16.8,10.91,21,18.67
overfunded,Describing a pension plan that has assets greater than needed to make the pro-jected benefit payments owed by the plan.,fmi,0,59.64,9.9,0,11.14,12.1,12.52,13,12
overnight cash rate,The interest rate for very-short-term interbank loans in the euro area.,fmi,0,68.77,6.4,0,12.1,10.2,11.36,6.5,11.67
oversubscribed,Having received more offers to buy than there are securities available for sale.,fmi,0,66.74,7.2,0,11.7,9.7,9.14,6.5,8.28
over-the-counter @OTC@ market,A secondary market in which dealers at different locations who have an inventory of securities stand ready to buy and sell securities to anyone who comes to them and is willing to accept their prices.,fmi,0,44.41,15.8,0,10.63,18.4,8.53,22.5,17.43
pecking order hypothesis,"The hypothesis that the larger and more established is a corporation, the more likely it will be to issue securities to raise funds.",fmi,0,48.13,12.3,0,10.28,12.6,9.58,15.5,16.16
pension plan,An asset pool that accumulates over an individual™s working years and is paid out during the nonworking years.,fmi,0,44.75,11.5,0,12.06,11.9,10.67,12,13.87
policy instrument,A variable that is very responsive to the central bank™s tools and indicates the stance of monetary policy. @Also called an operating instrument.@,fmi,0,39.67,13.4,0,13.29,15.5,13.02,17.5,19.63
policy trilemma,A country cannot pursue the following three policies at the same time,fmi,0,67.76,6.8,0,9.85,7.3,6.86,6,4.8
political business cycle,A business cycle caused by expansionary policies before an election.,fmi,0,44.41,9.6,0,14.88,11.4,12.03,5,8
portfolio,A collection of assets.,fmi,0,50.5,7.2,0,4.35,4.1,11.73,2,11.6
potential output,The level of output that is produced at the natural rate of unemployment. @Also called natural rate of output.@,fmi,0,52.19,10.7,0,9.86,11.1,8.73,12.5,11.81
premium,The amount paid for an option contract.,fmi,0,89.75,2.5,0,6.56,4.3,8.5,2.5,2.8
present discounted value,See present value.,fmi,0,93.81,0.9,0,3.43,5.2,0.15,0.5,1.2
present value,Today™s value of a payment to be received in the future when the interest rate is i. @Also called present discounted value.@,fmi,0,57.61,10.7,0,8.82,11.6,9.03,13,12.44
price earnings ratio @PE@,A measure of how much the market is willing to pay for $1 of earnings from a firm.,fmi,0,87.05,5.6,0,2.72,4.6,7.16,8,7.2
price stability,Low and stable inflation.,fmi,0,50.5,7.2,0,7.25,6.5,7.78,2,11.6
primary dealers,"Government securities dealers,  operating out of private firms or commercial banks, with whom the Fed™s open market desk trades.",fmi,0,43.73,11.9,0,15.08,15.1,12.06,13.5,13.92
private equity buyout,When a public company becomes private.,fmi,0,48.47,8,0,10.08,7.5,9.2,3,2.4
private mortgage insurance @PMI@,Insurance that pro-tects the lender against losses from defaults on mortgage loans.,fmi,0,67.76,6.8,0,15.65,12.8,14.76,6,8.13
private pension plan,"A pension plan sponsored by an employer, group, or individual.",fmi,0,44.41,9.6,0,10.24,8.5,10.45,6,12
property insurance,"Insurance that protects against losses from fire, theft, storm, explosion, and neglect.",fmi,0,59.3,8,0,16.17,14.4,12.13,7,11.47
proprietary trading,Financial institutions that trade with their own money.,fmi,0,46.44,8.8,0,14.46,10.8,7.98,5,13.2
prudent man rule,"This rule states that those with the responsibility of investing money for others should act with prudence, discretion, intelligence, and regard for safety of capital as well as income.",fmi,0,33.58,15.8,0,13.94,18.6,8.89,19.5,17.12
public pension plan,A pension plan sponsored by a government body.,fmi,0,71.82,5.2,0,7.9,5.6,7.98,4,3.2
quantitative easing,Asset purchase programs that lead to an expansion of central bank™s balance sheet and the monetary base.,fmi,0,62.68,8.7,0,12.12,11.5,11.91,10.5,11.51
quotas,Restrictions on the quantity of foreign goods that can be imported.,fmi,0,60.31,7.6,0,11.06,8.5,9.92,7.5,15.31
rate of capital gain,The change in a security™s price relative to the initial purchase price.,fmi,0,59.3,8,0,10.83,8.5,10.81,7,11.47
real exchange rate,"The rate at which domestic goods can be exchanged for foreign goods, meaning the price of domestic goods relative to foreign goods denominated in domestic currency.",fmi,0,36.63,14.6,0,13.58,16.8,9.18,19,16.55
real terms,Terms re˚ecting actual goods and ser-vices one can buy.,fmi,0,79.26,4.4,0,9.94,7.7,14.61,4.5,8.04
registered bonds,"Bonds requiring that their own-ers register with the company to receive inter-est payments. Registered bonds have largely replaced bearer bonds, which did not require registration.",fmi,0,41.87,10.5,0,16.86,14.2,12.47,8.25,11.4
Regulation Z,The requirement that lenders disclose the full cost of a loan to the bor-rower. @Also known as the fitruth in lendingfl regulation.@,fmi,0,57.61,10.7,0,10.15,12.9,10.47,14,12.44
regulatory arbitrage,"An attempt to avoid regulatory capital requirements by keeping assets on banks™ books that have the same risk-based capital requirement but are relatively risky, while taking off their books low-risk assets.",fmi,0,40.01,15.4,0,15.68,21,11.8,21.5,17.56
regulatory forbearance,Refraining from exercising a regulatory right to put insolvent savings and loans out of business.,fmi,0,30.87,12.7,0,13.85,12.1,9.64,11.5,16.67
reinsurance,Allocating a portion of the risk to another company in exchange for a portion of the premium.,fmi,0,45.76,11.1,0,8.35,8.4,8.19,12.5,11.51
reinvestment risk,The interest-rate risk associated with the fact that the proceeds of short-term investments must be reinvested at a future inter-est rate that is uncertain.,fmi,0,30.2,15,0,14.22,16.7,11.41,18,17.93
repossession,The taking of an asset that has been pledged as collateral for a loan when the bor-rower defaults. W-,fmi,0,69.11,8.3,0,7.14,8.7,10.4,11.5,9.71
repurchase agreement,"A form of loan in which the borrower simultaneously contracts to sell securi-ties and contracts to repurchase them, either on demand or on a specified date.",fmi,0,36.63,14.6,0,11.55,15.3,9.78,18,16.55
required reserve ratio,The fraction of deposits that the Fed requires to be kept as reserves.,fmi,0,83.66,4.8,0,7.24,6.1,9.14,5.5,5.2
required reserves,Reserves that are held to meet Fed requirements that a certain fraction of bank deposits be kept as reserves.,fmi,0,69.11,8.3,0,10.21,10.6,7.9,10.5,9.71
reserve account,An account used to make insurance and tax payments due on property securing a mortgage loan. A portion of each monthly loan payment goes into the reserve account.,fmi,0,65.73,7.6,0,9.68,8.3,8.84,7.5,9.89
reserve currency,A currency such as the U.S. dollar that is used by other countries to denominate the assets they hold as international reserves.,fmi,0,49.15,11.9,0,10.15,12.5,10.47,14,14.25
reserve for loan losses,An account that offsets the loan accounts on a lender™s books that re˚ects the lender™s projected losses due to default.,fmi,0,68.1,8.7,0,11.72,12.4,12.52,11,10
reserve requirements,Regulations making it obliga-tory for depository institutions to keep a certain fraction of their deposits in accounts with the Fed.,fmi,0,25.8,14.6,0,14.91,15.2,10.94,14,14
reserves,"Banks™ holding of deposits in accounts with the Fed, plus currency that is physically held by banks @vault cash@.",fmi,0,69.11,8.3,0,10.5,11.6,11.23,11.5,11.81
Resolution Trust Corporation @RTC@,A temporary agency created by FIRREA that was responsible for liqui-dating the assets of failed savings and loans.,fmi,0,36.28,12.7,0,13.05,13,13.3,13,13.87
restrictive covenants,Provisions that specify certain activities that a borrower can and cannot engage in.,fmi,0,32.9,11.9,0,13.5,11.2,10.35,10.5,17.51
return,"The payments to the owner of a security plus the change in the security™s value, expressed as a fraction of its purchase price; more precisely called the rate of return.",fmi,0,49.49,13.8,0,9.82,15.6,9.86,18,14.67
return on assets @ROA@,Net profit after taxes per dollar of assets.,fmi,0,63.36,6.4,0,6.45,4.4,11.93,3,3.2
return on equity @ROE@,Net profit after taxes per dollar of equity capital.,fmi,0,36.96,10.3,0,8.67,6.1,11.1,5.5,8.04
revaluation,Resetting of the par value of a currency at a higher level.,fmi,0,59.3,8,0,4.57,3.4,9.5,7,11.47
revenue bonds,"Bonds for which the source of income that is used to pay the interest and to retire the bonds is from a specific source, such as a toll road or an electric plant. If this revenue source is unable to make the payments, the bonds can default, despite the issuing municipality being otherwise healthy.",fmi,0,60.99,11.5,0,8.77,13.5,8.78,16,13.76
reverse transactions,Purchase or sale of eligible assets by the European Central Bank under repurchase agreements or credit operations against eligible assets as collateral that are reversed within two weeks.,fmi,0,17.68,17.8,0,15.96,19.5,12.36,20,18.34
risk,The degree of uncertainty associated with the return on an asset.,fmi,0,34.93,11.1,0,10.01,7.6,9.92,6.5,11.67
risk structure of interest rates,The relationship among the various interest rates on bonds with the same term to maturity.,fmi,0,47.79,10.3,0,11.13,9.9,10.7,11.5,16.67
roll over,To renew a debt when it matures.,fmi,0,89.75,2.5,0,0.76,-0.6,10.75,2.5,2.8
seasoned issues,Securities that have been trad-ing publicly long enough to have let the market clearly establish their value.,fmi,0,54.22,9.9,0,13.45,12.8,10.05,10.5,11.51
secondary reserves,U.S. government and agency securities held by banks.,fmi,0,46.44,8.8,0,10.8,9.1,13.9,5,8.2
secured debt,Debt guaranteed by collateral.,fmi,0,8.2,13.1,0,14.5,12.4,15.68,3,21.6
secured loan,A loan guaranteed by collateral.,fmi,0,32.56,10,0,9.6,7.4,10.2,3.5,18
securitized mortgage,See mortgage-backed-security.,fmi,0,-133.6,32.4,0,41.9,45.5,27.42,1,20.8
security,A claim on the borrower™s future income that is sold by the borrower to the lender. @Also called a ˚nancial instrument.@,fmi,0,58.62,10.3,0,9.23,11.5,10.69,13.5,12.21
seed investing,Investment by a venture capital firm in a company before it has a real product or is even clearly organized as a company.,fmi,0,39.67,13.4,0,7.72,10.3,8.9,16.5,12.68
Separate Trading of Registered Interest and Principal Securities @STRIPS@,Securities that have their periodic interest payments separated from the final maturity payment and the two cash ˚ows are sold to different investors.,fmi,0,22.75,15.8,0,15.03,16.3,10.96,17.5,17.9
shadow banking system,A system in which bank lending is replaced by lending via the securities market.,fmi,0,57.27,8.8,0,9.45,8.1,9.97,7,8.46
share draft account,Accounts at credit unions that are similar to checking accounts at banks.,fmi,0,67.76,6.8,0,11.3,8.9,12.13,6,8.13
short-term,"With reference to a debt instrument, having a maturity of one year or less.",fmi,0,57.27,8.8,0,7.01,6.4,8.84,9,14.17
simple loan,A credit market instrument providing the borrower with an amount of funds that must be repaid to the lender at the maturity date along with an additional payment @interest@.,fmi,0,42.04,14.6,0,11.73,16.6,10.52,20.5,19.88
smart card,A more sophisticated stored-value card that contains its own computer chip so that it can be loaded with digital cash from the owner™s bank account whenever needed.,fmi,0,44.07,13.8,0,12.25,16.1,9.65,18.5,15.24
speculative attack,A situation in which speculators engage in massive sales of a currency.,fmi,0,42.38,10.3,0,10.37,8.1,12.13,8,14.8
spinning,"When an investment bank allocates hot, but underpriced, initial public offerings @IPOs@, shares of newly issued stock, to executives of other companies in return for their companies™ future business with the investment banks.",fmi,0,21.06,18.5,0,16.02,22.6,11.49,24.5,20.47
spot transaction,The immediate exchange of bank deposits denominated in different currencies.,fmi,0,2.11,15.5,0,19.52,15.1,10.45,8,16
standing lending facility,A lending facility in which healthy banks are allowed to borrow all they want from a central bank.,fmi,0,70.13,8,0,8.18,8.8,8.92,9,9.42
state banks,Banks chartered by the states.,fmi,0,100.24,0.5,0,7.28,5.6,10.2,1.5,2
state-owned banks,Banks that are owned by govern-ments.,fmi,0,90.77,2.1,0,8.17,6.7,11.83,3,2.4
sterilized foreign exchange intervention,A foreign exchange intervention with an offsetting open market operation that leaves the monetary base unchanged.,fmi,0,29.86,13.1,0,17.57,15.4,11.34,12,16.4
stock,A security that is a claim on the earnings and assets of a corporation.,fmi,0,57.27,8.8,0,5.73,5.1,9.97,8,11.31
stock company,An insurance company that issues stock and has the objective of making a profit for its shareholders.,fmi,0,54.22,9.9,0,11.08,10.6,9.12,12.5,13.86
stock market risk,The risk associated with ˚uctua-tions in stock prices.,fmi,0,37.98,10,0,13.01,10.3,13.9,5,8.2
stock option,An option on an individual stock.,fmi,0,48.47,8,0,5.27,3.6,9.2,3,9.07
stop loss order,An order placed with a broker to buy or sell when a certain price is reached; it is designed to limit an investor™s loss on a security position.,fmi,0,59.98,11.8,0,6.85,12.3,10.1,16,14.06
stress testing,Calculating losses under dire sce-narios.,fmi,0,-1.29,14.7,0,18.88,15.9,19.67,3.5,10
structured credit products,Securities that are derived from cash ˚ows of underlying assets and are tailored to have particular risk characteristics that appeal to investors with different prefer-ences.,fmi,0,20.72,16.6,0,17.35,19.3,13.09,18.5,16.4
subprime loans,Loans made to borrowers who do not qualify for loans at the usual rate of interest due to poor credit rating or too large of a loan.,fmi,0,69.45,10.3,0,5.58,10.6,9.07,16.5,15.24
subprime mortgages,Mortgage loans made to borrow-ers who do not qualify for loans at the usual rate of interest due to a poor credit history.,fmi,0,56.59,11.1,0,7.72,10.6,9.58,15.5,12.68
super display book @SDBK@,A computerized system for executing trades very rapidly that removes the specialist from the process.,fmi,0,47.79,10.3,0,15.36,13.4,11.75,10.5,14
superregional banks,"Bank holding companies similar in size to money center banks whose headquar-ters are not based in one of the money center cities @New York, Chicago, San Francisco@.",fmi,0,52.53,12.6,0,11.38,16.1,11.99,17.5,15.24
supply curve,A curve depicting the relationship between quantity supplied and price when all other economic variables are held constant.,fmi,0,36.28,12.7,0,16.24,15.3,10.67,13,16.09
swap,A financial contract that obligates one party to exchange @swap@ a set of payments it owns for a set of payments owned by another party.,fmi,0,54.56,11.9,0,8.3,12.2,9.3,15.5,13.2
sweep account,An arrangement in which any balances above a certain amount in a corpora-tion™s checking account at the end of a business day are fiswept outfl of the account and invested in overnight repos that pay the corporation interest.,fmi,0,41.37,16.9,0,11.38,20.6,10.51,24,20.46
syndicate,A group of investment banks that come together for the purpose of issuing a security. The syndicate spreads the risk of the issue among the members. Each participant attempts to market the security and shares in losses.,fmi,0,58.99,8.1,11.9,10.02,8,10.22,7.5,10.33
systemic,Financial firms who pose a risk to the over-all financial system because their failure would cause widespread damage. 473systematically important financial institutions @SIFIs@,fmi,0,14.29,17,0,20.83,21.6,11.64,17.5,14.42
T-account,A simplified balance sheet with lines in the form of a T that lists only the changes that occur in a balance sheet starting from some ini-tial balance sheet position.,fmi,0,57.95,12.6,0,9.41,15.1,10.91,17,14.67
tariffs,Taxes on imported goods.,fmi,0,50.5,7.2,0,5.8,5.3,11.73,2,11.6
term security,A security with a specified maturity date.,fmi,0,22.07,11.9,0,9.06,6.3,10.75,5.5,19.94
theory of portfolio choice,The theory that tells how much of an asset people want to hold in their portfolio.,fmi,0,72.16,7.2,0,6.38,6.3,8.38,9,11.4
theory of purchasing power parity @PPP@,The theory that exchange rates between any two currencies will adjust to re˚ect changes in the price levels of the two countries.,fmi,0,66.07,9.5,0,10.91,12.7,11.19,13,12.44
thrift institutions @thrifts@,"Savings and loan associa-tions, mutual savings banks, and credit unions.",fmi,0,35.95,10.7,0,15.46,13.2,13.61,6,12
tightening of monetary policy,A rise in the federal funds rate.,fmi,0,89.75,2.5,0,1.57,0.3,8.5,3.5,8.51
time-inconsistency problem,The problem that occurs when monetary policy makers conduct monetary policy in a discretionary way and pursue expan-sionary policies that are attractive in the short run but lead to bad long-run outcomes.,fmi,0,30.54,17,0,14.11,20.1,11.64,23,17.8
tombstone,A large notice placed in financial newspapers announcing that a security will be offered for sale by an underwriter or group of underwriters.,fmi,0,39.67,13.4,0,12.77,14.4,10.27,17.5,19.63
too-big-to-fail problem,Quandary in which regulators are reluctant to close down large financial insti-tutions and impose losses on their depositors and creditors because doing so might precipitate a financial crisis.,fmi,0,17.68,17.8,0,17,20.5,12.36,22,19.77
TRACE,A trade reporting and compliance engine created by the Securities and Exchange Trade Commission in 2002.,fmi,0,38.32,11.9,0,14.32,12.8,10.35,13,18.9
trade balance,The difference between merchandise exports and imports.,fmi,0,30.53,10.7,0,19.84,15,10.75,4.5,8.51
transaction costs,"The time and money spent  trying to exchange financial assets, goods, or services.",fmi,0,58.28,8.4,0,11.3,10.1,9.14,6.5,8.28
Treasury bills @T-bills@,Securities sold by the federal government with initial maturities of less than one year. They are often considered the lowest-risk security available.,fmi,0,34.93,11.1,0,14.77,11.7,10.64,7.5,13.49
underfunded,Describing a pension plan in which the contributions and their earnings are insufficient to pay out the defined benefits when they come due.,fmi,0,48.13,12.3,0,12.54,14.2,9.58,15.5,16.16
undersubscribed,Having received fewer offers to buy than there are securities available for sale.,fmi,0,58.28,8.4,0,12.17,10.1,10.35,6.5,8.28
underwriting,Guaranteeing prices on securities to corporations and then selling the securities to the public.,fmi,0,23.43,13.5,0,16.12,13.5,9.97,11,14.17
unsecured debt,Debt not guaranteed by collateral.,fmi,0,32.56,10,0,11.92,9.3,13.36,3.5,18
unsterilized foreign exchange intervention,A foreign exchange intervention in which a central bank allows the purchase or sale of domestic currency to affect the monetary base.,fmi,0,40.69,13.1,0,12.01,13.5,11.19,15,16.07
U.S. Central Credit Union,A central bank for credit unions that was organized in 1974 and provides banking services to the state central credit unions.,fmi,0,67.08,9.1,0,11.43,12.6,10.69,11.5,10.3
usury,Charging an excessive or inordinate interest rate on a loan.,fmi,0,44.41,9.6,0,10.24,7.6,10.45,7,16
value at risk @VaR@ calculations,"Measurements of the size of the loss on a trading portfolio that might happen, say, 1% of the time, over a particular period such as two weeks.",fmi,0,60.99,11.5,0,7.09,12.5,9.07,17.5,16.73
vault cash,Currency that is physically held by banks and stored in vaults overnight.,fmi,0,76.22,5.6,0,11.3,8.9,10.81,7,11.47
virtual bank,A bank that has no building but rather exists only in cyberspace.,fmi,0,84.68,4.4,0,7.47,5.8,6.86,5,4.8
wealth,"All resources owned by an individual, includ-ing all assets.",fmi,0,36.96,10.3,0,12.5,10.3,14.61,5.5,8.04
wholesale market,"Market where extremely large transactions occur, as for money market funds or foreign currency.",fmi,0,40.35,11.1,0,15.25,13.2,11.1,9,14.17
World Bank,"The International Bank for Reconstruc-tion and Development, an international orga-nization that provides long-term loans to assist developing countries in building dams, roads, and other physical capital that would contribute to their economic development.",fmi,0,-4.33,22.1,0,21.48,27.1,12.93,27.5,21.68
World Trade Organization @WTO@,The organization that monitors rules for the conduct of trade between countries @tariffs and quotas@.,fmi,0,47.79,10.3,0,14.61,13.4,11.75,8.5,11.33
zero-coupon securities,See Separate Trading of Registered Interest and Principal Securities (STRIPS).,fmi,0,10.56,14.3,0,19.52,16.1,13.61,9,20
zero-lower-bound problem,Situation in which the central bank is unable to lower the policy interest rate further because it has hit a ˚oor of zero.,fmi,0,48.13,12.3,0,7.96,10.6,10.27,14.5,14.42
The Association of South-East Asian Nations (ASEAN),The Association of South-East Asian Nations (ASEAN),ncert_keec111,1,38.99,9.6,0,14.86,12.4,13.01,3.5,8.51
Balance of Payments (BOP),Balance of Payments (BOP),ncert_keec111,1,75.88,3.7,0,5.8,6.5,15.68,1,1.6
Barriers to Entry,Barriers to Entry,ncert_keec111,1,34.59,9.2,0,3.43,3.6,14.31,1.5,14.53
Better Compliance,Better Compliance,ncert_keec111,1,-6.7,14.7,0,15.8,17.3,11.63,1,20.8
Bilateral Trade Agreements,Bilateral Trade Agreements,ncert_keec111,1,9.21,12.7,0,20.83,17.8,14.31,1.5,14.53
Brundtland Commission,Brundtland Commission,ncert_keec111,1,-6.7,14.7,0,27.4,26.7,19.53,1,20.8
Budgetary Deficit,Budgetary Deficit,ncert_keec111,1,77.91,2.9,0,15.8,17.3,19.53,0,0.8
Bureau of Energy Efficiency (BEE),Bureau of Energy Efficiency (BEE),ncert_keec111,1,15.64,12.3,0,9.6,8.4,13.36,3.5,18
Business Process Outsourcing (BPO),Business Process Outsourcing (BPO),ncert_keec111,1,50.5,7.2,0,18.85,17.1,15.68,2,11.6
Carrying Capacity,Carrying Capacity,ncert_keec111,1,-91.3,26.5,0,15.8,17.3,19.53,2,40.8
Cascading Effect,Cascading Effect,ncert_keec111,1,-6.7,14.7,0,12.9,14.9,19.53,1,20.8
Casual Wage Labourer,Casual Wage Labourer,ncert_keec111,1,34.59,9.2,0,9.23,8.3,19.58,1.5,14.53
Colonialism,Colonialism,ncert_keec111,1,-47.99,20.2,0,18.4,30.9,19.48,0.5,40.4
Commercialisation of Agriculture,Commercialisation of Agriculture,ncert_keec111,1,-75.4,24.5,0,32.43,27.2,14.31,2.5,27.87
Communes,Communes,ncert_keec111,1,36.62,8.4,0,1,16.8,19.48,-0.5,0.4
Consumption Basket,Consumption Basket,ncert_keec111,1,-6.7,14.7,0,18.7,19.6,11.63,1,20.8
(iii)milk and milk products (iv) edible oil (v) vegetables (vi) fuel and light and (vii) clothing.,(iii)milk and milk products (iv) edible oil (v) vegetables (vi) fuel and light and (vii) clothing.,ncert_keec111,1,55.24,9.5,0,8.52,11,12.33,11,11.4
Default,Default,ncert_keec111,1,36.62,8.4,0,-4.81,12,19.48,-0.5,0.4
Deficit Financing,Deficit Financing,ncert_keec111,1,35.61,8.8,0,15.8,17.3,19.53,1,20.8
Demographic Transition,Demographic Transition,ncert_keec111,1,-91.3,26.5,0,30.3,29,19.53,2,40.8
Dereservation,Dereservation,ncert_keec111,1,-47.99,20.2,0,30,40.3,19.48,0.5,40.4
Disinvestment,Disinvestment,ncert_keec111,1,-132.59,32,0,30,40.3,19.48,0.5,40.4
Employers,Employers,ncert_keec111,1,-47.99,20.2,0,6.8,21.5,19.48,0.5,40.4
Enterprise,Enterprise,ncert_keec111,1,-47.99,20.2,0,12.6,26.2,19.48,0.5,40.4
Equities,Equities,ncert_keec111,1,-47.99,20.2,0,1,16.8,19.48,0.5,40.4
Establishment,Establishment,ncert_keec111,1,-132.59,32,0,30,40.3,19.48,0.5,40.4
European Union,European Union,ncert_keec111,1,35.61,8.8,0,7.1,10.2,19.53,1,20.8
"Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom, Malta, Poland, Slovakia and Slovenia.","Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom, Malta, Poland, Slovakia and Slovenia.",ncert_keec111,1,36.28,12.7,0,22.04,23.7,17.69,11,11.64
Export Duties,Export Duties,ncert_keec111,1,35.61,8.8,0,4.2,7.8,19.53,0,0.8
Export Promotion,Export Promotion,ncert_keec111,1,-6.7,14.7,0,12.9,14.9,19.53,1,20.8
Export-Import Policy,Export-Import Policy,ncert_keec111,1,-49,20.6,0,21.6,24.3,27.42,2,20.8
Family labour/worker,Family labour/worker,ncert_keec111,1,-49,20.6,0,21.6,24.3,11.63,2,0.8
Financial Institutions,Financial Institutions,ncert_keec111,1,-91.3,26.5,0,30.3,29,19.53,2,40.8
Fiscal Management,Fiscal Management,ncert_keec111,1,-6.7,14.7,0,15.8,17.3,19.53,1,20.8
Fiscal Policy,Fiscal Policy,ncert_keec111,1,-6.7,14.7,0,4.2,7.8,19.53,1,20.8
Foreign Direct Investment,Foreign Direct Investment,ncert_keec111,1,9.21,12.7,0,18.92,16.2,14.31,1.5,14.53
Foreign Exchange,Foreign Exchange,ncert_keec111,1,35.61,8.8,0,12.9,14.9,11.63,0,0.8
Foreign Exchange Markets,Foreign Exchange Markets,ncert_keec111,1,34.59,9.2,0,16.95,14.6,14.31,0.5,1.2
Foreign Institutional Investment,Foreign Institutional Investment,ncert_keec111,1,-75.4,24.5,0,32.43,27.2,19.58,2.5,27.87
Foreign Institutional Investors (FIIs),Foreign Institutional Investors (FIIs),ncert_keec111,1,-34.11,19,0,24.65,21.8,19.62,2,11.6
in stocks and bonds in the country through stock markets have significant influence.,in stocks and bonds in the country through stock markets have significant influence.,ncert_keec111,1,66.74,7.2,0,13.5,11.2,10.35,7.5,11.35
Formal Sector Establishments,Formal Sector Establishments,ncert_keec111,1,-24.64,17.4,0,24.72,20.9,19.58,1.5,14.53
G-20,G-20,ncert_keec111,1,121.22,-3.5,0,-28.01,-2.2,35.27,-0.5,0.4
G-8,G-8,ncert_keec111,1,121.22,-3.5,0,-33.81,-6.9,35.27,-0.5,0.4
Goods and Services Tax,Goods and Services Tax,ncert_keec111,1,92.8,1.3,0,4.35,2.9,7.78,1,1.6
Gratuity,Gratuity,ncert_keec111,1,-47.99,20.2,0,1,16.8,19.48,0.5,40.4
Gross Domestic Product,Gross Domestic Product,ncert_keec111,1,34.59,9.2,0,13.12,11.5,19.58,1.5,14.53
Gross Value Added: The sum of a country’s GDP and net of subsidies and taxes in the economy (GVA=GDP+Subsidies–indirect taxes).,Gross Value Added: The sum of a country’s GDP and net of subsidies and taxes in the economy (GVA=GDP+Subsidies–indirect taxes).,ncert_keec111,1,51.18,11.1,0,12.3,14,11.73,13,14
Household,Household,ncert_keec111,1,36.62,8.4,0,6.8,21.5,19.48,-0.5,0.4
Import Licensing,Import Licensing,ncert_keec111,1,-6.7,14.7,0,12.9,14.9,19.53,1,20.8
Import Substitution,Import Substitution,ncert_keec111,1,-49,20.6,0,21.6,22,19.53,1,20.8
Infant Mortality Rate,Infant Mortality Rate,ncert_keec111,1,9.21,12.7,0,11.15,9.9,14.31,1.5,14.53
Informal Sector Enterprises,Informal Sector Enterprises,ncert_keec111,1,-50.02,21,0,22.75,19.3,19.58,2.5,27.87
Integration of Domestic Economy,Integration of Domestic Economy,ncert_keec111,1,-34.11,19,0,17.4,13.5,15.68,4,31.6
Invisibles,Invisibles,ncert_keec111,1,-132.59,32,0,12.6,26.2,19.48,0.5,40.4
Labour Laws,Labour Laws,ncert_keec111,1,120.21,-3.1,0,-1.61,3.1,19.53,0,0.8
Land/Revenue Settlement,Land/Revenue Settlement,ncert_keec111,1,-49,20.6,0,30.3,31.4,11.63,2,0.8
Life Expectancy at Birth (years),Life Expectancy at Birth (years),ncert_keec111,1,83.32,2.9,0,8.44,7.4,10.2,2.5,10
Maternal Mortality Rate,Maternal Mortality Rate,ncert_keec111,1,-24.64,17.4,0,15.03,13,14.31,2.5,27.87
Merchant Bankers,Merchant Bankers,ncert_keec111,1,77.91,2.9,0,12.9,14.9,19.53,0,0.8
Morbidity,Morbidity,ncert_keec111,1,-132.59,32,0,6.8,21.5,19.48,0.5,40.4
"In our country, acute respiratory infections and diarrhoea are two major causes of morbidity.","In our country, acute respiratory infections and diarrhoea are two major causes of morbidity.",ncert_keec111,1,23.43,13.5,0,14.43,12.5,11.1,11,17.03
Mortality rate,Mortality rate,ncert_keec111,1,-6.7,14.7,0,7.1,10.2,11.63,1,20.8
MRTP Act,MRTP Act,ncert_keec111,1,120.21,-3.1,0,-10.31,-4,11.63,0,0.8
Multilateral Trade Agreements,Multilateral Trade Agreements,ncert_keec111,1,-24.64,17.4,0,26.63,22.5,14.31,1.5,14.53
National Product/Income,National Product/Income,ncert_keec111,1,-91.3,26.5,0,30.3,31.4,19.53,2,20.8
Nationalisation,Nationalisation,ncert_keec111,1,-301.79,55.6,0,41.6,49.7,19.48,0.5,40.4
New Economic Policy,New Economic Policy,ncert_keec111,1,9.21,12.7,0,7.32,6.8,14.31,2.5,27.87
Non-renewable Resources,Non-renewable Resources,ncert_keec111,1,-49,20.6,0,30.3,31.4,27.42,1,20.8
Non-tariff Barriers,Non-tariff Barriers,ncert_keec111,1,-49,20.6,0,18.7,22,27.42,2,20.8
Opportunity Cost,Opportunity Cost,ncert_keec111,1,-49,20.6,0,12.9,14.9,11.63,1,20.8
Pension,Pension,ncert_keec111,1,36.62,8.4,0,-4.81,12,19.48,-0.5,0.4
Per Capita Income,Per Capita Income,ncert_keec111,1,59.97,5.6,0,3.43,3.6,14.31,0.5,1.2
Permit License Raj,Permit License Raj,ncert_keec111,1,59.97,5.6,0,5.35,5.2,19.58,0.5,1.2
Planning Commission,Planning Commission,ncert_keec111,1,-6.7,14.7,0,21.6,22,19.53,1,20.8
Poverty Line,Poverty Line,ncert_keec111,1,77.91,2.9,0,1.3,5.5,11.63,0,0.8
Private Sector Establishments,Private Sector Establishments,ncert_keec111,1,-24.64,17.4,0,26.63,22.5,19.58,1.5,14.53
Provident Fund,Provident Fund,ncert_keec111,1,35.61,8.8,0,7.1,10.2,19.53,1,20.8
Public Sector Establishments,Public Sector Establishments,ncert_keec111,1,-24.64,17.4,0,24.72,20.9,14.31,1.5,14.53
Quantitative Restrictions,Quantitative Restrictions,ncert_keec111,1,-91.3,26.5,0,39,36.1,19.53,2,40.8
Regular Salaried/Wage Employee,Regular Salaried/Wage Employee,ncert_keec111,1,-24.64,17.4,0,26.63,24,24.84,2.5,27.87
Renewable Resources,Renewable Resources,ncert_keec111,1,-6.7,14.7,0,21.6,22,19.53,1,20.8
South Asian Association for Regional Cooperation (SAARC),South Asian Association for Regional Cooperation (SAARC),ncert_keec111,1,-3.32,15.5,0,19.84,15.7,15.26,5.5,19.94
Self-employed,Self-employed,ncert_keec111,1,-47.99,20.2,0,24.2,40.3,19.48,0.5,0.4
Social Security,Social Security,ncert_keec111,1,-49,20.6,0,10,12.5,19.53,1,20.8
Special Economic Zone (SEZ),Special Economic Zone (SEZ),ncert_keec111,1,50.5,7.2,0,8.7,8.8,19.62,2,11.6
Stabilisation Measures,Stabilisation Measures,ncert_keec111,1,-91.3,26.5,0,30.3,29,19.53,1,20.8
State Electricity Boards (SEBs),State Electricity Boards (SEBs),ncert_keec111,1,50.5,7.2,0,14.5,13.5,11.73,2,1.6
Stock Exchange,Stock Exchange,ncert_keec111,1,77.91,2.9,0,7.1,10.2,0.1,0,0.8
Stock Market,Stock Market,ncert_keec111,1,77.91,2.9,0,1.3,5.5,0.1,0,0.8
Structural Reform Policies,Structural Reform Policies,ncert_keec111,1,34.59,9.2,0,20.83,17.8,19.58,0.5,1.2
Tariff Barriers,Tariff Barriers,ncert_keec111,1,-6.7,14.7,0,10,12.5,19.53,1,20.8
Trade Union,Trade Union,ncert_keec111,1,120.21,-3.1,0,-1.61,3.1,11.63,0,0.8
Urbanisation,Urbanisation,ncert_keec111,1,-217.19,43.8,0,24.2,35.6,19.48,0.5,40.4
Worker-Population Ratio,Worker-Population Ratio,ncert_keec111,1,-133.6,32.4,0,30.3,31.4,19.53,1,20.8
Analysis,Understanding and explaining an economic problem in terms of the various causes behind it.,ncert_kest,1,31.89,12.3,0,13.62,11.5,12.23,11,17.03
Assumed Mean,An approximate value in order to simplify calculation.,ncert_kest,1,4.14,14.7,0,13.7,10.3,9.95,6,18.2
Attribute,A characteristic that is qualitative in nature. It cannot be measured.,ncert_kest,1,40.51,9,0,9.44,7,9.65,2.75,9.47
Bimodal Distribution,A distribution which has two mode values.,ncert_kest,1,64.37,6,0,8.24,5.6,10.75,3.5,8.51
Bivariate Distribution,Frequency distribution of two variables.,ncert_kest,1,15.64,12.3,0,18.88,15,13.36,3.5,18
Census Method,"A method of data collection, which requires that observations are taken on all the individuals in a population.",ncert_kest,1,36.28,12.7,0,12.06,12.2,10.67,13,16.09
Chronological Classification,Classification based on time.,ncert_kest,1,33.58,9.6,0,13.05,11.2,11.73,2,11.6
Class Frequency,Number of observations in a class.,ncert_kest,1,56.93,6.8,0,6.25,4.3,6.57,3,9.07
Class Interval,Difference between the upper and the lower class limits.,ncert_kest,1,53.88,8,0,11.22,8.2,7.59,4.5,3.6
Class Mark,Class midpoint,ncert_kest,1,77.91,2.9,0,7.1,10.2,11.63,0,0.8
Class Midpoint,Middle value of a class. It is the representative value of different observations in a class. It is equal to (upper class limit + lower class limit)/2.,ncert_kest,1,54.18,7.9,8.8,6.98,5.6,7.1,4.5,6.56
Classification,Arranging or organising similar things into groups or classes.,ncert_kest,1,28.5,11.5,0,15.11,11.3,14.61,6.5,16.93
Consumer,One who buys goods for one’s own personal needs or for the needs of one’s family or as a gift to someone.,ncert_kest,1,82.99,7.2,0,4.59,7.6,7.6,13,10.62
Constant,"A constant is also a quantity used to describe an attribute, but it will not change during calculation or investigation.",ncert_kest,1,42.72,12.3,0,11.43,12.4,8.58,13,14
Continuous Variable,A quantitative variable that can take any numerical value.,ncert_kest,1,36.96,10.3,0,12.5,9.3,9.35,5.5,12.49
Cyclicity,Periodicity in data variation with time period of more than one year.,ncert_kest,1,42.38,10.3,0,9.38,7.3,9.5,8,14.8
Decile,A partition value that divides the data into ten equal parts.,ncert_kest,1,68.77,6.4,0,7.93,5.9,9.92,5.5,8.04
Discrete Variable,A quantitative variable that takes only certain values. It changes from one value to another by finite “jumps”. The intermediate values between two adjacent values are not taken by the variable.,ncert_kest,1,52.56,8.5,9.7,11.34,8.7,8.73,5.5,7.99
Employee,One who gets paid for a job or for working for another person.,ncert_kest,1,83.66,4.8,0,3.7,3.2,6.71,6.5,5.2
Employer,One who pays another person to do or do some work.,ncert_kest,1,85.69,4,0,2.13,1.2,5.62,5.5,4.4
Enumerator,A person who collects the data.,ncert_kest,1,73.85,4.5,0,3.35,2,9.2,2,2.4
Exclusive Method,A method of classifying observations in which an observation equal to either the upper class limit or the lower class limit of a class is not put in that class but is put in the class above or below.,ncert_kest,1,48.81,16.1,0,7.09,17.5,8,22.5,18.68
Frequency,The number of times an observation occurs in raw data. In a frequency distribution it means the number of observations in a class.,ncert_kest,1,51.34,9,0,8.27,6.5,9.01,6.75,11.56
Frequency Array,A classification of a discrete variable that shows different values of the variable along with their corresponding frequencies.,ncert_kest,1,36.28,12.7,0,17.57,16.3,10.67,13,13.87
Frequency Curve,The graph of a frequency distribution in which class frequencies on Y-axis are plotted against the values of class marks on X-axis.,ncert_kest,1,57.61,10.7,0,10.91,13.1,11.9,14,14.25
Frequency Distribution,A classification of a quantitative variable that shows how different values of the variable are distributed in different classes along with their corresponding class frequencies.,ncert_kest,1,20.72,16.6,0,18.51,20.1,10.56,19.5,18
Inclusive Method,A method of classifying observations in which an observations equal to the upper class limit of a class as well as the lower class limit is put in that class.,ncert_kest,1,57.95,12.6,0,8.08,13.8,7.76,18,14.67
Informant,Individual/unit f r o m whom the desired information is obtained.,ncert_kest,1,34.93,11.1,0,9.49,7.6,17.1,6.5,11.67
Multi Modal Distribution,The distribution that has more than two modes.,ncert_kest,1,80.28,4.1,0,7.9,5.6,7.98,4,8.2
Non-Sampling Error,"It arises in data collection due to (i) sampling bias, (ii) non-response, (iii) error in data acquisition.",ncert_kest,1,45.76,11.1,0,9.74,12,14.7,11.5,11.51
Observation,A unit of raw data.,ncert_kest,1,100.24,0.5,0,-5.49,-4.9,10.2,1.5,2
Percentiles,A value which divides the data into hundred equal parts so there are 99 percentiles in the data.,ncert_kest,1,70.13,8,0,7.54,8.2,8.92,8,7.2
Policy,The measure to solve an economic problem.,ncert_kest,1,64.37,6,0,8.24,5.6,10.75,3.5,8.51
Population,Population means all the individuals/units for whom the information has to be sought.,ncert_kest,1,41.36,10.7,0,13.5,11.5,10.35,8.5,14.43
Qualitative Classification,"Classification based on quality. For example classification of people according to gender, marital status etc.",ncert_kest,1,4.64,14.5,0,16.31,12.5,13.48,5.75,16.33
Qualitative Data,Information or data expressed in terms of qualities.,ncert_kest,1,37.98,10,0,12.25,9.1,13.9,5,13.2
Quantitative Data,A (often large) set of numbers systematically arranged for conveying specific information on a subject for better understanding or decision-making.,ncert_kest,1,0.42,18.2,0,18.68,18.7,10.94,16,20
Questionnaire,A list of questions prepared by an investigator on the subject of enquiry. The respondent is required to answer the questions.,ncert_kest,1,60.82,7.4,0,9.95,7.6,8.67,5.25,8.01
Random Sampling,It is a method of sampling in which the representative set of informants is selected in a way that every individual is given equal chance of being selected as an informant.,ncert_kest,1,40.01,15.4,0,9.7,15.6,8.74,21.5,18.85
Range,Difference between the maximum and the minimum values of a variable.,ncert_kest,1,43.39,9.9,0,11.58,8.9,9.92,7.5,11.67
Relative Frequency,Frequency of a class as proportion or percentage of total frequency,ncert_kest,1,43.39,9.9,0,11.58,8.5,9.92,8.5,15.31
Sample Survey Method,"A method, where observations are obtained on a representative set of individuals (the sample), selected from the population.",ncert_kest,1,19.37,15,0,15.31,15.5,11.55,14,18.31
Sampling Error,It is the numerical difference between the estimate from the sample and the corresponding true value of the parameter from the population.,ncert_kest,1,23.77,15.4,0,13.29,14.6,9.03,17,17.89
Seasonality,Periodicity in data variation with time period less than one year.,ncert_kest,1,34.93,11.1,0,10.54,8,9.92,7.5,15.31
Seller,One who sells goods for profit.,ncert_kest,1,99.23,0.9,0,3.35,2,9.2,2,2.4
Service Provider,One who provides a service to others for a payment.,ncert_kest,1,78.25,4.8,0,5.02,3.4,7.29,4,4
Spatial Classification,Classification based on geographical location.,ncert_kest,1,-52.05,21.8,0,25.84,20.6,16.52,4.5,26
Statistics,"The method of collecting, organising, presenting and analysing data to draw meaningful conclusion. Further, it also means data.",ncert_kest,1,45.42,9.2,0,14.76,11.8,11.1,6,14.71
Structured Questionnaire Structured,"Questionnaire consists of “closed- ended” questions, for which alternative possible answers to choose from are provided.",ncert_kest,1,38.32,11.9,0,19.43,17.5,12.33,12,13.9
Tally Marking,The counting of observations in a class using tally (/) marks. Tallies are grouped in fives.,ncert_kest,1,72.32,5,0,8.19,6.5,12.43,3.5,5.67
Time Series,Data arranged in chronological order or two variable data where one of the variables is time.,ncert_kest,1,55.24,9.5,0,10.32,9.6,9.36,8,8.9
Univariate Distribution,The frequency distribution of one variable.,ncert_kest,1,31.55,10.4,0,14.95,11.4,11.83,4,15.73
Weighted Average,The average is calculated by providing the different data points with different weights.,ncert_kest,1,32.9,11.9,0,15.3,12.6,11.57,11.5,14.43
Average fixed cost,Total fixed cost per unit of output.,ncert_class12_econ,1,89.75,2.5,0,4.07,2.3,15.26,2.5,2.8
Average revenue,Total revenue per unit of output.,ncert_class12_econ,1,73.85,4.5,0,5.27,3.6,17.09,2,2.4
Break-even,point is the point on the supply curve at which a firm earns normal profit.,ncert_class12_econ,1,90.09,4.4,0,5.33,5.2,9.64,6.5,6
point,Break-even  is the  on the supply curve at which a firm earns normal profit.,ncert_class12_econ,1,74.19,6.4,0,6.55,6.1,9.97,6,5.6
Budget line,consists of all bundles which cost exactly equal to the consumer’s income.,ncert_class12_econ,1,67.76,6.8,0,11.82,9.3,9.5,6,8.13
Budget set,is the collection of all bundles that the consumer can buy with her income at the prevailing market prices.,ncert_class12_econ,1,69.11,8.3,0,9.57,10.1,8.73,11.5,11.81
Cost function,"For every level of output, it shows the minimum cost for the firm.",ncert_class12_econ,1,75.2,6,0,5.03,4.6,9.14,6.5,8.28
Decreasing returns to scale,is a property of production function that holds when a proportional increase in all inputs results in an increase in output by less than the proportion.,ncert_class12_econ,1,45.09,13.4,0,11.15,14.6,11,17,16.55
Demand curve,is a graphical representation of the demand function. It gives the quantity demanded by the consumer at each price.,ncert_class12_econ,1,53.37,8.2,0,9.94,7.4,10.76,5.75,12.22
Demand function,A consumer’s demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain unchanged.,ncert_class12_econ,1,58.96,12.2,0,10.92,15.6,9.98,15.5,11.6
Excess demand,"If at a price market, demand exceeds market supply, it is said that excess demand exists in the market at that price.",ncert_class12_econ,1,66.07,9.5,0,7.25,10.1,8.32,11,8.8
Excess supply,"If at a price market, supply is greater than market demand, it is said that there is excess supply in the market at that price.",ncert_class12_econ,1,71.48,9.5,0,6.22,10.5,7.4,12.5,10
Firm’s supply curve,shows the levels of output that a profit- maximising firm will choose to produce at different values of the market price.,ncert_class12_econ,1,58.62,10.3,0,10.04,11.7,10.69,12.5,10.3
Fixed input,An input which cannot be varied in the short run is called a fixed input.,ncert_class12_econ,1,81.63,5.6,0,4.57,4.6,8.59,6.5,6
Income effect,The change in the optimal quantity of a good when the purchasing power changes consequent upon a change in the price of the good is called the income effect.,ncert_class12_econ,1,58.96,12.2,0,8.89,14,8.89,18.5,17.12
Increasing returns to scale,is a property of production function that holds when a proportional increase in all inputs results in an increase in output by more than the proportion.,ncert_class12_econ,1,45.09,13.4,0,11.15,14.6,11,17,16.55
Law of demand,"If a consumer’s demand for a good moves in the same direction as the consumer’s income, the consumer’s demand for that good must be inversely related to the price of the good.",ncert_class12_econ,1,55.92,13.4,0,9.06,15.8,7.69,19,15.3
Law of diminishing marginal product,If we keep increasing the employment of an input with other inputs fixed then eventually a point will be reached after which the marginal product of that input will start falling.,ncert_class12_econ,1,48.47,14.2,0,10.98,16.7,10.27,19.5,17.56
Law of variable proportions,"The marginal product of a factor input initially rises with its employment level when the level of employment of the input is low. But after reaching a certain level of employment, it starts falling.",ncert_class12_econ,1,54.22,9.9,0,10.21,10.1,9.12,11,10.33
Marginal revenue,Change in total revenue per unit change in sale of output.,ncert_class12_econ,1,85.69,4,0,6.3,4.6,11.36,4.5,4.4
Marginal revenue product(MRP) of a factor,Marginal Revenue times Marginal Product of the factor.,ncert_class12_econ,1,37.98,10,0,13.7,10.3,13.9,5,8.2
Market supply curve,shows the output levels that firms in the market produce in aggregate corresponding to different values of the market price.,ncert_class12_econ,1,42.72,12.3,0,12.88,13.3,10.94,13,12
Monotonic preferences,"A consumer’s preferences are monotonic if and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle.",ncert_class12_econ,1,55.24,15.7,0,8.37,19.4,8.37,22.5,18.35
Normal good,A good for which the demand increases with increase in the income of the consumer is called a normal good.,ncert_class12_econ,1,68.1,8.7,0,7.66,9.1,9.37,11,10
Normal profit,The profit level that is just enough to cover the explicit costs and opportunity costs of the firm is called the normal profit.,ncert_class12_econ,1,56.59,11.1,0,9.23,11.6,9.58,13.5,12.68
Price ceiling,The government-imposed upper limit on the price of a good or service is called price ceiling.,ncert_class12_econ,1,72.16,7.2,0,9.97,9.6,7.39,8,6.4
Price elasticity of demand,for a good is defined as the percentage change in demand for the good divided by the percentage change in its price.,ncert_class12_econ,1,66.07,9.5,0,7.49,9.9,7.6,14,12.44
Price elasticity of supply,is the percentage change in quantity supplied due to a one per cent change in the market price of the good.,ncert_class12_econ,1,75.54,7.9,0,6.5,8.6,7.69,12.5,12.21
Price floor,The government-imposed lower limit on the price that may be charged for a particular good or service is called price floor.,ncert_class12_econ,1,67.08,9.1,0,10.62,12.1,9.19,12.5,10.3
Price line,is a horizontal straight line that shows the relationship between market price and a firm’s output level.,ncert_class12_econ,1,54.22,9.9,0,12.47,11.8,9.12,10.5,11.51
Shut down point,"In the short run, it is the minimum point of AVC curve and in the long run, it is the minimum point of LRAC curve.",ncert_class12_econ,1,79.94,8.3,0,3.2,8,6.77,14.5,11.6
Super-normal,profit Profit that a firm earns over and above the normal profit is called the super-normal profit.,ncert_class12_econ,1,62.68,8.7,0,10.03,10.1,10.05,8.5,6.8
profit,Break-even point is the point on the supply curve at which a firm earns normal .,ncert_class12_econ,1,90.09,4.4,0,6.49,6.5,8.59,7,6
Total fixed cost,Average fixed cost  per unit of output.,ncert_class12_econ,1,64.37,6,0,5.75,3.6,15.26,3.5,8.51
Total physical product,Same as the total product.,ncert_class12_econ,1,83.32,2.9,0,2.64,1.8,10.2,1.5,2
Total product,"If we vary a single input keeping all other inputs constant, then for different levels of employment of that input we get different levels of output from the production function. This relationship between the variable input and output is referred to as total product.",ncert_class12_econ,1,40.69,13.1,0,11.84,13.5,10.11,13.5,11.53
Total return,Same as the total product.,ncert_class12_econ,1,83.32,2.9,0,2.64,1.8,10.2,1.5,2
Total revenue,Average revenue  per unit of output.,ncert_class12_econ,1,48.47,8,0,7.18,5.1,17.09,3,9.07
Total revenue curve,shows the relationship between firm’s total revenue and firm’s output level.,ncert_class12_econ,1,34.93,11.1,0,15.81,12.3,12.79,5.5,8.04
Total variable cost,Average variable cost  per unit of output.,ncert_class12_econ,1,55.91,7.2,0,8.24,5.6,15.26,3.5,8.51
Variable input,An input the amount of which can be varied.,ncert_class12_econ,1,96.18,2.1,0,2.87,1.4,7.59,3.5,3.6
0x Protocol,"The 0x protocol is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain. The 0x protocol was launched in 2017. It was built by 0x Labs, an organization based in San Francisco that is focused on creating new markets in the 0x ecosystem. The goal of 0x Labs is to create the necessary infrastructure for the emerging cryptocurrency economy and to enable markets to be created that couldn't have existed before.",investopedia,1,60.65,9.5,13,10.73,11.3,10.19,12.5,12.86
1%/10 Net 30,"The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days.",investopedia,1,75.2,6,9.7,5.32,5.1,8.73,6.833333333,8.28
10-K,"A 10-K is a comprehensive report filed annually by a publicly-traded company about its financial performance and is required by the U.S. Securities and Exchange Commission (SEC). The report contains much more detail than a company's annual report, which is sent to its shareholders before an annual meeting to elect company directors.",investopedia,1,37,12.4,15.5,12.99,13,11.17,13.33333333,14.61
10-K Wrap,"A 10-K wrap is a summary report of a company's annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders, and business overview, among other topics.",investopedia,1,6.85,24,0,14.81,28.4,12.69,35.5,28.16
10-Q SEC Form,"SEC Form 10-Q is a comprehensive report of financial performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission (SEC). In the 10-Q, firms are required to disclose relevant information regarding their finances as a result of their business operations. The 10-Q is generally an unaudited report.",investopedia,1,36.59,12.6,15.5,13.51,13.5,11.07,13.5,17.65
10-Year Treasury Note,The 10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. A 10-year Treasury note pays interest at a fixed rate once every six months and pays the face value to the holder at maturity. The U.S. government partially funds itself by issuing 10-year Treasury notes.,investopedia,1,60.35,9.6,12.5,10.33,11.3,9.77,12.33333333,11.17
100% Equities Strategy,"A 100% equities strategy is a strategy commonly adopted by pooled funds, such as a mutual fund, that allocates all investable cash solely to stocks. Only equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares.",investopedia,1,41.19,12.9,0,14.04,15.8,12.41,16.75,16.97
1040 U.S. Individual Tax Return Form,Form 1040 is the standard Internal Revenue Service (IRS) form that individual taxpayers use to file their annual income tax returns. The form contains sections that require taxpayers to disclose their taxable income for the year to determine whether additional taxes are owed or whether the filer will receive a tax refund.,investopedia,1,45.09,13.4,0,12.89,16.2,11.3,16.5,15.02
1040A Form,"Form 1040-A of the Internal Revenue Service (IRS) was a simplified version of Form 1040 used by U.S. taxpayers to file an annual income tax return. To have been eligible to use Form 1040-A, an individual needed to meet certain requirements such as not itemizing deductions, not owning a business, and having a taxable income of less than $100,000. Unofficially known as the ""short form,"" Form 1040-A was eliminated for the 2018 tax year in favor of the redesigned Form 1040 that debuted that year.",investopedia,1,51.21,13.1,14.6,9.99,15.6,9.68,18.16666667,16.97
1040EZ Form,IRS Form 1040EZ: Income Tax Return for Single and Joint Filers with No Dependents was the shortened version of the Internal Revenue Service (IRS) Form 1040. This form was for taxpayers with basic tax situations and offered a fast and easy way to file income taxes.,investopedia,1,41.71,18.9,0,10.87,24.2,11.07,13.5,21.88
SEC Release IA-1092,SEC Release IA-1092 is a release from the Securities & Exchange Commission (SEC) that provides uniform interpretations of how state and federal adviser laws apply to those that provide financial services.,investopedia,1,24.11,17.4,0,15.97,20.9,13.02,21.5,20
11th District Cost of Funds Index (COFI),"The 11th District Cost of Funds Index (COFI) is a monthly weighted average of the interest rates paid on checking and savings accounts offered by financial institutions operating in Arizona, California, and Nevada. It is one of many indices used by mortgage lenders to adjust the interest rate on adjustable rate mortgages (ARM) and was launched in 1981. With an ARM mortgage, the interest rate on a mortgage moves up and down along with some standard interest rate chosen by the lender, and COFI is one of the most popular indices in the western states.",investopedia,1,47.76,14.5,13.6,10.75,17.2,10.36,19.16666667,15.63
125% Loan,"A 125% loan—usually a mortgage—carries an initial principal amount equal to 125% (1.25x) of the initial property value. For example, if a home is worth $300,000, a 125% loan would allow the borrower access to $375,000.",investopedia,1,61.67,9.1,0,9.63,11.5,11.11,12,12.76
12B-1 Fee,"A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered to be an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25% and 0.75% (the maximum allowed) of a fund's net assets. The fee gets its name from a section of the Investment Company Act of 1940.",investopedia,1,63.7,8.4,12.6,6.44,7.2,10.6,10.75,12.65
12B-1 Fund,A 12b-1 fund is a mutual fund that charges its holders a 12b-1 fee. A 12b-1 fee pays for a mutual fund’s distribution and marketing costs. It is often used as a commission to brokers for selling the fund.,investopedia,1,75.2,6,10.5,5.61,5.1,10.35,7.166666667,9.3
12B-1 Plan,A 12B-1 plan is a plan structured by mutual fund companies for the distribution of funds through intermediaries. 12B-1 plans provide mapping for the partnerships between distributors and intermediaries who help to ensure the sale of a fund. Sales commission schedules and 12B-1 distribution expenses are the primary components driving a 12B-1 plan.,investopedia,1,36.12,14.8,0,14.74,18.2,11.51,19.25,18.15
130-30 Strategy,"The 130-30 strategy, often called a long/short equity strategy, refers to an investing methodology used by institutional investors. A 130-30 designation implies using a ratio of 130% of starting capital allocated to long positions and accomplishing this by taking in 30% of the starting capital from shorting stocks.",investopedia,1,30.2,15,0,14.45,16.9,11.41,18,17.1
18-Hour City,"Economists and real estate investors use the term 18-hour city to describe a mid-size city with attractive amenities, higher-than-average population growth, and a lower cost of living and cost of doing business than the biggest urban areas. The 18-hour city generally has a population of under one million, making it a second-tier city.",investopedia,1,44.58,13.6,0,12.89,17.1,10.31,16.75,14.37
183-Day Rule,"The 183-day rule is used by most countries to determine if someone should be considered a resident for tax purposes. In the U.S., the Internal Revenue Service (IRS) uses 183 days as a threshold in the ""substantial presence test,"" which determines whether people who are neither U.S. citizens nor permanent residents should still be considered residents for taxation.",investopedia,1,42.04,14.6,0,12.89,18.2,11.06,21,19.19
1979 Energy Crisis,"The 1979 energy crisis, the second of two oil price shocks in the '70s, resulted in a widespread panic about potential gasoline shortages, and far higher prices for both crude oil and refined products. Oil output declined by only 7% or less, but the short-term supply disruption led to a spike in prices, panic buying, and long lines at gas stations.",investopedia,1,57.44,12.8,0,9.82,16.2,11.1,17.25,14.82
2-1 Buydown,The term 2-1 buydown refers to a type of mortgage product with a set of two initial temporary-start interest rates that increase in stair-step fashion until it reaches a permanent interest rate. The initial interest rate reductions are either paid for by the borrower to help them qualify for a mortgage or by a builder as an incentive to purchase a home.,investopedia,1,48.47,14.2,0,10.34,16.4,10.27,20,16.92
2/28 Adjustable-Rate Mortgage (2/28 ARM),"A 2/28 adjustable-rate mortgage (2/28 ARM) is a type of 30-year home loan that has an initial two-year fixed interest rate period. After this 2-year period, the rate floats based on an index rate plus a margin.",investopedia,1,78.08,7,0,8.76,10.3,10.96,11.25,9.56
2000 Investor Limit,"The 2,000 Investor Limit is a stipulation required by the Securities & Exchange Commission (SEC) that mandates a company that exceeds 2,000 individual investors, and with more than $10 million in combined assets, must file its financials with the commission. According to SEC rules, a company that meets these criteria has 120 days to file following its fiscal year's end.",investopedia,1,11.59,26.3,0,13.59,33.4,13.25,41,28.35
2011 U.S. Debt Ceiling Crisis,The 2011 U.S. Debt Ceiling Crisis was a contentious debate in Congress that occurred in July 2011 regarding the maximum amount of borrowing the federal government should be allowed to undertake.,investopedia,1,55.74,9.3,0,12.53,11.2,12.05,10.75,12.65
25% Rule Definition,"There are two common usages of the term ""25% rule"":",investopedia,1,95.17,2.5,0,3.28,3.4,8.87,4,4
3-2-1 Buy-Down Mortgage Definition,"A 3-2-1 buy-down mortgage allows a borrower to lower the interest rate over the course of the first three years of the loan through an up-front payment. In general, 3-2-1 buy-down loans are only available on primary and secondary homes, while investment properties are not eligible. The 3-2-1 buydown is also not available as part of an adjustable-rate mortgage (ARM) with an initial period of fewer than five years.",investopedia,1,44.92,15.6,0,11.33,19.7,10.38,14.5,17.86
3-6-3 Rule Definition,"The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry in the 1950s, 1960s, and 1970s that was the result of non-competitive and simplistic conditions in the industry.",investopedia,1,44.41,15.8,0,10.63,19.1,12.59,23.5,19.71
3/27 Adjustable-Rate Mortgage (3/27 ARM),"A 3/27 adjustable-rate mortgage, or 3/27 ARM, is a 30-year mortgage frequently offered to subprime borrowers, meaning people with lower credit scores or a history of loan delinquencies. The mortgages are designed as short-term financing vehicles that give borrowers time to repair their credit until they are able to refinance into a mortgage with more favorable terms.",investopedia,1,42.55,14.4,0,13.87,18.7,10.87,19.25,16.31
3(c)(7) Exemption,"The 3(c)(7) exemption refers to a portion of the Investment Company Act of 1940 that allows private investment companies an exemption from some Securities and Exchange Commission (SEC) regulation, providing that they meet certain criteria. 3C7 is shorthand for the 3(c)(7) exemption.",investopedia,1,11.93,22,0,15.22,26.7,12.86,33,24.42
3D Printing Definition,"Three-dimensional (3D) printing is an additive manufacturing process that creates a physical object from a digital design. The process works by laying down thin layers of material in the form of liquid or powdered plastic, metal or cement, and then fusing the layers together.",investopedia,1,32.22,14.2,0,12.53,14.5,11.9,14.5,14.25
3P Oil Reserves,"3P oil reserves are the total amount of reserves that a company estimates having access to, calculated as the sum of all proven and unproven reserves. The 3Ps stand for proven, probable, and possible reserves.",investopedia,1,62.17,8.9,0,10.61,10.9,9.02,11.25,10.43
30-Year Treasury,The 30-Year Treasury is a U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury used to be the bellwether U.S. bond but now most consider the 10-year Treasury to be the benchmark.,investopedia,1,75.91,5.7,8.8,7.53,6.8,9.79,6.166666667,8.16
341 Meeting,"The term “341 meeting” refers to a meeting between creditors and debtors that is required to take place during the course of a Chapter 7 bankruptcy proceeding. Accordingly, its name is derived from section 341 of the bankruptcy code.",investopedia,1,60.14,9.7,0,11.55,12.1,9.87,12.25,11.9
401(a) Plan,"A 401(a) plan is an employer-sponsored money-purchase retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. The sponsoring employer establishes eligibility and the vesting schedule. The employee can withdraw funds from a 401(a) plan through a rollover to a different qualified retirement plan, a lump-sum payment, or an annuity.",investopedia,1,35.98,12.8,16.3,16.36,16.3,10.29,14.5,14.59
401(k) Plan,"A 401(k) plan is a tax-advantaged, defined-contribution retirement account offered by many employers to their employees. It is named after a section of the U.S. Internal Revenue Code. Workers can make contributions to their 401(k) accounts through automatic payroll withholding, and their employers can match some or all of those contributions. The investment earnings in a traditional 401(k) plan are not taxed until the employee withdraws that money, typically after retirement. In a Roth 401(k) plan, withdrawals can be tax-free.",investopedia,1,49.52,9.7,12.5,13.09,11.9,10.41,8.333333333,11.82
403(b) Plan,"A 403(b) plan is a retirement account for certain employees of public schools and tax-exempt organizations. Participants include teachers, school administrators, professors, government employees, nurses, doctors, and librarians.",investopedia,1,6.5,15.8,0,21.51,19.4,12.79,12,15.6
408(k) Plan,"A 408(k) account, commonly referred to as a Simplified Employee Pension (SEP) plan, is an employer-sponsored, retirement savings plan. The 408(k) plan is the SEP version of the popular 401(k) plan. A SEP is intended for smaller companies, such as those with fewer than 25 employees.",investopedia,1,55.95,9.3,13,9.97,10.5,11.26,10.66666667,13.95
412(i) Plan,"A 412(i) plan is a defined-benefit pension plan that is designed for small business owners in the U.S. This is a tax-qualified benefit plan, so any amount that the owner contributes to the plan becomes available immediately as a tax deduction to the company. Guaranteed annuities or a combination of annuities and life insurance are the only things that can fund the plan.",investopedia,1,50.16,11.5,14.6,10.62,12.4,9.69,14.5,14.11
457 Plan,"Generally speaking, 457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state governments, local governments, and some nonprofit employers. Eligible participants are able to make salary deferral contributions, depositing pre-tax money that is allowed to compound without being taxed until it is withdrawn.",investopedia,1,14.8,16.8,0,20.89,21.8,13.88,18.25,20.56
48-Hour Rule,"The 48-hour rule is a requirement that sellers of to-be-announced (TBA) mortgage-backed securities (MBS) communicate all pool information regarding the MBS to buyers before 3 p.m. Eastern Time, 48 hours before the settlement date of the trade. The Securities Industry and Financial Markets Association (SIFMA) enforces this rule. SIFMA was formerly known as the Public Securities Association or Bond Market Association.",investopedia,1,39.03,11.6,14.6,15.19,14.3,10.87,11.625,12.02
5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM),"A 5/1 hybrid adjustable-rate mortgage (5/1 ARM) begins with an initial five-year fixed-interest rate period, followed by a rate that adjusts on an annual basis. The ""5"" in the term refers to the number of years with a fixed rate, and the ""1"" refers to how often the rate adjusts after that (once per year). As such, monthly payments can go up—sometimes dramatically—after five years.",investopedia,1,66.37,9.4,11.2,9.52,12.5,9.57,12.83333333,11.14
5-6 Hybrid Adjustable-Rate Mortgage (5-6 Hybrid ARM),"A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is an adjustable-rate mortgage (ARM) with an initial five-year fixed interest rate, after which the interest rate begins to adjust every six months according to an index plus a margin, known as the fully indexed interest rate. The index is variable, while the margin is fixed for the life of the loan.",investopedia,1,49.49,13.8,0,10.69,16.9,9.6,18,13.33
500-Shareholder Threshold,The 500 shareholder threshold for investors is an outdated rule required by the Securities and Exchange Commission (SEC) that triggered public reporting requirements of a company when it reached that many or more distinct shareholders. Section 12(g) of the Securities Exchange Act of 1934 calls for issuers of securities to register with the SEC and begin public dissemination of financial information within 120 days of the end of a fiscal year.,investopedia,1,26.98,18.3,0,13.53,21.3,11.85,24.75,20.4
501(c)(3) Organizations,"Section 501(c)(3) is a portion of the U.S. Internal Revenue Code (IRC) and a specific tax category for nonprofit organizations. Organizations that meet Section 501(c)(3) requirements are exempt from federal income tax. While the Internal Revenue Service (IRS) recognizes more than 30 types of nonprofit organizations, organizations that qualify as 501(c)(3) organizations are unique because donations to these organizations are tax-deductible for donors.",investopedia,1,30.06,13,15.2,16.41,15.7,11.19,12.375,12.67
501(c),"The 501(c) is a subsection under the United States Internal Revenue Code (IRC). The subsection relates to nonprofit organizations and tax law; specifically, it identifies which nonprofit organizations are exempt from paying federal income tax. The term 501(c) is often used as shorthand to refer to organizations granted legal status under this subsection.",investopedia,1,36.59,12.6,14.6,14.5,14.4,10.47,12.83333333,12.36
51% Attack,"A 51% attack refers to an attack on a blockchain—most commonly bitcoins, for which such an attack is still hypothetical—by a group of miners controlling more than 50% of the network's mining hash rate or computing power.",investopedia,1,42.38,16.5,0,11.67,20.8,11.02,22.5,19.12
52-Week High/Low,"The 52-week high/low is the highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.",investopedia,1,59.98,11.8,0,7.43,13.2,8.97,16,14.06
52-Week Range,"The 52-week range is a data point traditionally reported by printed financial news media, but more modernly included in data feeds from financial information sources online. The data point includes the lowest and highest price at which a stock has traded during the previous 52 weeks.",investopedia,1,39.67,13.4,0,12.65,14.6,11.64,15.5,15.29
529 Plan,"A 529 plan is a tax-advantaged savings plan designed to help pay for education. Originally limited to post-secondary education costs, it was expanded to cover K-12 education in 2017 and apprenticeship programs in 2019. The two major types of 529 plans are savings plans and prepaid tuition plans. Savings plans grow tax-deferred, and withdrawals are tax-free if they're used for qualified education expenses. Prepaid tuition plans allow the account owner to pay in advance for tuition at designated colleges and universities, locking in the cost at today's rates. 529 plans are also referred to as qualified tuition programs and Section 529 plans.",investopedia,1,50.77,11.2,13,12.88,14,9.6,13,12.08
529 Savings Plan,"A 529 plan is a tax-advantaged savings plan designed to help pay for education. Originally limited to post-secondary education costs, it was expanded to cover K-12 education in 2017 and apprenticeship programs in 2019. The two major types of 529 plans are savings plans and prepaid tuition plans. Savings plans grow tax-deferred, and withdrawals are tax-free if they're used for qualified education expenses. Prepaid tuition plans allow the account owner to pay in advance for tuition at designated colleges and universities, locking in the cost at today's rates. 529 plans are also referred to as qualified tuition programs and Section 529 plans.",investopedia,1,50.77,11.2,13,12.88,14,9.6,13,12.08
60-Plus Delinquencies,"The 60-plus delinquency rate is a metric that is typically used for the housing industry to measure the number of mortgage loans that are more than 60 days past due on their monthly payments. A 60-plus delinquency rate is often expressed as a percentage of a group of loans that have been underwritten within a specified time period, such as one year.",investopedia,1,48.47,14.2,0,9.99,16.1,9.76,19.5,16.92
8-K (Form 8K),"An 8-K is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). Also known as a Form 8K, the report notifies the public of events, including acquisitions, bankruptcy, the resignation of directors, or changes in the fiscal year.",investopedia,1,34.6,15.4,0,11.9,16.9,10.66,21,20.49
80-10-10 Mortgage,"An 80-10-10 mortgage is a loan where first and second mortgages are obtained simultaneously. The first mortgage lien is taken with an 80% loan-to-value ratio (LTV ratio), meaning that it is 80% of the home's cost; the second mortgage lien has a 10% loan-to-value, and the borrower makes a 10% down payment. This arrangement can be contrasted with the traditional single mortgage with a down payment amount of 20%.",investopedia,1,65.05,9.9,11.9,10.86,14,8.67,13.83333333,12.1
80-20 Rule,"The 80-20 rule, also known as the Pareto Principle, is an aphorism which asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority. For instance, once managers identify factors that are critical to their company's success, they should give those factors the most focus.",investopedia,1,54.26,12,12.5,9.87,14.1,9.67,15.33333333,13.8
83(b) Election,"The 83(b) election is a provision under the Internal Revenue Code (IRC) that gives an employee, or startup founder, the option to pay taxes on the total fair market value of restricted stock at the time of granting. ",investopedia,1,40.35,17.3,0,9.47,20.2,12.45,23.5,19.7
8(a) Firm,"An 8(a) firm is a small business that is owned and operated by socially and economically disadvantaged citizens and that has been accepted into the 8(a) Business Development Program. This program is administered by the Small Business Administration (SBA), the United States agency charged with supporting the growth and development of small businesses. The 8(a) program is designed to help disadvantaged entrepreneurs get government contracts and access the economic mainstream in America.",investopedia,1,18.02,19.7,0,16.26,24.1,10.9,26,21.07
90-Day Letter,"90-Day Letter is an IRS notice stating that there was a discrepancy or error within an individual's taxes and they will be assessed unless petitioned. The taxpayer has 90 days to respond, otherwise the audit deficiencies will result in reassessment. Also known as a Notice of Deficiency.",investopedia,1,47.08,10.6,12.5,11.66,10.8,10.46,10.5,12.24
90/10 Strategy,"Legendary investor Warren Buffett invented the “90/10"" investing strategy for the investment of retirement savings. The method involves deploying 90% of one's investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments.",investopedia,1,26.81,14.2,0,18.56,18.3,14.14,15.5,17.07
A-B Trust,"An A-B trust is a joint trust created by a married couple for the purpose of minimizing estate taxes. Upon the death of the first spouse, an A-B trust divides into two. It is formed with each spouse placing assets in the trust and naming as the final beneficiary any suitable person except the other spouse.",investopedia,1,69.41,8.2,8.8,8.18,9.1,9.36,10.33333333,9.62
A-Shares,"China A-shares are the stock shares of mainland China-based companies that trade on the two Chinese stock exchanges, the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). Historically, China A-shares were only available for purchase by mainland citizens due to China's restrictions on foreign investment.",investopedia,1,47.62,12.5,0,16.08,18.4,10.85,14.25,13.66
AAA,"AAA is the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default. Rating agencies Standard & Poor's (S&P) and Fitch Ratings use the letters ""AAA"" to identify bonds with the highest credit quality, while Moody's uses the similar ""Aaa"" to signify a bond's top-tier credit rating.",investopedia,1,44.37,13.7,13.6,11.61,16.2,11.47,16.83333333,14.68
AARP,"The American Association of Retired Persons, commonly known by its acronym AARP, is America's leading organization for people aged fifty and older, providing member benefits, marketing services, and lobbying on their behalf.",investopedia,1,5.16,20.5,0,17.01,23,13.12,25,22.8
Abenomics,"Abenomics is the nickname for the economic policies set out for Japan in 2012 when prime minister Shinzo Abe came into power for a second time. Abenomics involved increasing the nation’s money supply, boosting government spending, and enacting reforms to make the Japanese economy more competitive. The Economist outlined the program as a ""mix of reflation, government spending, and a growth strategy designed to jolt the economy out of suspended animation that has gripped it for more than two decades.""",investopedia,1,44.37,13.7,15.9,13.47,17.2,11.47,18.33333333,16.68
Ability-to-Pay Taxation,"The ability-to-pay philosophy of taxation maintains that taxes should be levied according to a taxpayer's ability to pay. The idea is that people, businesses, and corporations with higher incomes can and should pay more in taxes.",investopedia,1,44.75,11.5,0,12.53,13,9.79,13,14.98
Abnormal Return,"An abnormal return describes the unusually large profits or losses generated by a given investment or portfolio over a specified period. The performance diverges from the investments' expected, or anticipated, rate of return (RoR)—the estimated risk-adjusted return based on an asset pricing model, or using a long-run historical average or multiple valuation techniques.",investopedia,1,10.74,18.3,0,16.83,20.2,13.59,21.75,23.43
Absolute Advantage,"Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than another entity that produces the same good or service.",investopedia,1,7.53,27.9,0,9.19,31.3,10.52,42.5,29.01
Absolute Return,"Absolute return is the return that an asset achieves over a specified period. This measure looks at the appreciation or depreciation, expressed as a percentage, that an asset, such as a stock or a mutual fund, achieves over a given period.",investopedia,1,42.21,12.5,0,10.04,11.7,9.27,14.25,15.03
Absorption Costing,"Absorption costing, sometimes called “full costing,” is a managerial accounting method for capturing all costs associated with manufacturing a particular product. The direct and indirect costs, such as direct materials, direct labor, rent, and insurance, are accounted for by using this method. Absorption costing is required by generally accepted accounting principles (GAAP) for external reporting.",investopedia,1,19.06,15.1,17.1,17.93,17.4,11.72,15.16666667,18.96
Absorption Rate,"The term absorption rate refers to a metric used in the real estate market to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of homes sold in the allotted time period by the total number of available homes. This equation can also be reversed to identify the amount of time it would take for the supply to be sold. Absorption rates are also a key part of the accounting industry. In this context, the absorption rate refers to the way in which businesses calculate their overhead costs.",investopedia,1,58.82,10.2,13,8.94,10.5,8.31,12.8,12.94
Accelerated Depreciation,"Accelerated depreciation is any method of depreciation used for accounting or income tax purposes that allows greater depreciation expenses in the early years of the life of an asset. Accelerated depreciation methods, such as double-declining balance (DDB), means there will be higher depreciation expenses in the first few years and lower expenses as the asset ages. This is unlike the straight-line depreciation method, which spreads the cost evenly over the life of an asset.",investopedia,1,29.48,15.3,15.5,13.99,16.7,9.13,17,13.12
Acceleration Clause,An acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment and the repayment required.,investopedia,1,48.64,12.1,0,12.65,14.1,10.02,15.25,14.33
Acceptable Quality Level (AQL),The acceptable quality level (AQL) is a measure applied to products and defined in ISO 2859-1 as the “quality level that is the worst tolerable.” The AQL tells you how many defective components are considered acceptable during random sampling quality inspections. It is usually expressed as a percentage or ratio of the number of defects compared to the total quantity.,investopedia,1,32.57,16.2,0,13.07,18.2,11.7,21.5,18.67
Accepting Risk,"Accepting risk, or risk acceptance, occurs when a business or individual acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it. Also known as ""risk retention,"" it is an aspect of risk management commonly found in the business or investment fields.",investopedia,1,46.1,13,0,11.32,14.7,9.93,17,17.2
Accidental Death and Dismemberment Insurance (AD&D),"Accidental death and dismemberment (AD&D) insurance is insurance—usually added as a rider to a health insurance or life insurance policy—that covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss—or the loss of use—of body parts or functions (e.g., limbs, speech, eyesight, and hearing).",investopedia,1,39.16,13.6,0,16.6,18.9,10.85,16.75,14.51
Accidental Death Benefits,"The term accidental death benefit refers to a payment due to the beneficiary of an accidental death insurance policy, which is often a clause or rider connected to a life insurance policy. The accidental death benefit is usually paid in addition to the standard benefit payable if the insured died of natural causes.",investopedia,1,36.12,14.8,0,11.78,15.5,9.42,20.75,17.39
Account Balance,"An account balance is the amount of money present in a financial repository, such as a savings or checking account, at any given moment. The account balance is always the net amount after factoring in all debits and credits. An account balance that falls below zero represents a net debt—for example, when there is an overdraft on a checking account. For financial accounts that have recurring bills, such as an electric bill or a mortgage, an account balance may also reflect an amount owed.",investopedia,1,58.62,10.3,10.7,10.33,12,8.25,12.25,11.26
Account in Trust,An account in trust or trust account refers to any type of financial account that is opened by an individual and managed by a designated trustee for the benefit of a third party per agreed-upon terms.,investopedia,1,51.86,15,0,9.59,18.1,10.69,22,18.84
Account Number,"An account number is a unique string of numbers and, sometimes, letters and other characters that identifies the owner of an account and grants access to it. In the U.S., the Social Security number was the primary identifier until its vulnerability to identity theft forced the practice to be abandoned. In today's electronic age, the most important account number for many people is the checking account number.",investopedia,1,40.38,13.2,13,12.07,14,9.93,14.16666667,13.7
Account Statement,"An account statement is a periodic summary of account activity with a beginning date and an ending date. The most commonly known are checking account statements, usually provided monthly, and brokerage account statements, which are provided monthly or quarterly. Monthly credit card bills are also considered account statements.",investopedia,1,38.32,11.9,14.1,15.66,14.1,9.36,11.66666667,13.9
Accountability,"Accountability is when an individual or department experiences consequences for their performance or actions. Accountability is essential for an organization and for a society. Without it, it is difficult to get people to assume ownership of their own actions because they believe they will not face any consequences.",investopedia,1,29.86,13.1,15,14.56,13.1,8.71,12.33333333,15.57
Accountant,"The term accountant refers to a professional who performs accounting functions such as account analysis, auditing, or financial statement analysis. Accountants work with accounting firms or internal account departments with large companies. They may also set up their own, individual practices. After meeting state-specific educational and testing requirements, these professionals are certified by national professional associations.",investopedia,1,14.97,14.7,16.2,20.47,17.5,11.38,12.25,18.46
Accountant Responsibility,"Accountant responsibility is the ethical responsibility an accountant has to those who rely on his or her work. According to the American Institute of Certified Public Accountants (AICPA), accountants have a duty to serve the public interest and uphold the public trust in the profession. An accountant has a responsibility to his clients, his company's managers, investors, and creditors, as well as to outside regulatory bodies. Accountants are responsible for the validity of the financial statements they work on, and they must perform their duties following all applicable principles, standards, and laws.",investopedia,1,22.75,15.8,17.4,14.8,16.6,9.58,17.75,16.59
Accounting,"Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.",investopedia,1,10.19,16.5,19.3,20.54,19.3,11.05,17.33333333,18.19
Accounting Conservatism,"Accounting conservatism is a set of bookkeeping guidelines that call for a high degree of verification before a company can make a legal claim to any profit. The general concept is to factor in the worst-case scenario of a firm’s financial future. Uncertain liabilities are to be recognized as soon as they are discovered. In contrast, revenues can only be recorded when they are assured of being received.",investopedia,1,54.22,9.9,12.6,10.84,10.6,10.05,11.25,12.09
Accounting Cycle,"The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. It is a standard 8-step process that begins when a transaction occurs and ends with its inclusion in the financial statements.",investopedia,1,43.22,12.1,0,13.23,13.7,11.49,14.25,14.98
Accounting Equation,"The accounting equation is considered to be the foundation of the double-entry accounting system. On a company's balance sheet, it shows that a company's total assets are equal to the sum of the company's liabilities and shareholders' equity.",investopedia,1,35.27,13.1,0,12.76,13.5,10.4,15,14.97
Accounting Information System (AIS),"An accounting information system (AIS) involves the collection, storage, and processing of financial and accounting data used by internal users to report information to investors, creditors, and tax authorities. It is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. An AIS combines traditional accounting practices, such as the use of Generally Accepted Accounting Principles (GAAP), with modern information technology resources.",investopedia,1,6.84,17.8,19.6,19.9,20.8,12.14,19.33333333,18.5
Accounting Method,An accounting method refers to the rules a company follows in reporting revenues and expenses. The two primary methods of accounting are accrual accounting (generally used by companies) and cash accounting (generally used by individuals).,investopedia,1,28.33,13.7,0,15.25,14.8,10.82,15.25,16.14
Accounting Policies,"Accounting policies are the specific principles and procedures implemented by a company's management team that are used to prepare its financial statements. These include any accounting methods, measurement systems, and procedures for presenting disclosures. Accounting policies differ from accounting principles in that the principles are the accounting rules and the policies are a company's way of adhering to those rules.",investopedia,1,34.26,13.5,17.9,17.4,17.3,9.63,16.66666667,16
Accounting Principles,Accounting principles are the rules and guidelines that companies must follow when reporting financial data. The Financial Accounting Standards Board (FASB) issues a standardized set of accounting principles in the U.S. referred to as generally accepted accounting principles (GAAP).,investopedia,1,26.3,14.4,0,17.98,17.9,11.89,16.75,16.01
Accounting Profit,"Accounting profit is a company's total earnings, calculated according to generally accepted accounting principles (GAAP). It includes the explicit costs of doing business, such as operating expenses, depreciation, interest, and taxes.",investopedia,1,4.98,16.4,0,19.08,17.6,14.59,14.25,21.68
Accounting Rate of Return (ARR),"Accounting rate of return (ARR) is a formula that reflects the percentage rate of return expected on an investment, or asset, compared to the initial investment's cost. The ARR formula divides an asset's average revenue by the company's initial investment to derive the ratio or return that one may expect over the lifetime of the asset, or related project. ARR does not consider the time value of money or cash flows, which can be an integral part of maintaining a business.",investopedia,1,44.07,13.8,15.5,10.45,15.1,9.85,18.16666667,16.73
Accounting Ratio,"Accounting ratios, an important sub-set of financial ratios, are a group of metrics used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the relationship between one accounting data point to another and are the basis of ratio analysis.",investopedia,1,29.18,15.4,0,12.6,15.6,9.93,18.5,15.6
Accounting Standard,"An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices.",investopedia,1,32.22,14.2,0,15.66,16.7,12.62,16,16.07
Accounting Theory,"Accounting theory is a set of assumptions, frameworks, and methodologies used in the study and application of financial reporting principles. The study of accounting theory involves a review of both the historical foundations of accounting practices, as well as the way in which accounting practices are changed and added to the regulatory framework that governs financial statements and financial reporting.",investopedia,1,24.11,17.4,0,16.55,21,10.12,24,19.33
Accounts Payable (AP),"Accounts payable (AP) is an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers. Another common usage of ""AP"" refers to the business department or division that is responsible for making payments owed by the company to suppliers and other creditors.",investopedia,1,36.12,14.8,0,12.48,16.5,10.61,19.75,16.64
Accounts Payable Turnover Ratio,The accounts payable turnover ratio is a short-term liquidity measure used to quantify the rate at which a company pays off its suppliers. Accounts payable turnover shows how many times a company pays off its accounts payable during a period.,investopedia,1,59.64,9.9,0,11.72,12.5,8.97,13,12
Accounts Receivable (AR),Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. AR is any amount of money owed by customers for purchases made on credit.,investopedia,1,70.84,7.7,9.7,7.83,8.3,9.05,9,10
Accounts Receivable Aging,"Accounts receivable aging (tabulated via an aged receivables report) is a periodic report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding. It is used as a gauge to determine the financial health of a company's customers. If the accounts receivable aging shows a company's receivables are being collected much slower than normal, this is a warning sign that business may be slowing down or that the company is taking greater credit risk in its sales practices.",investopedia,1,42.75,14.3,16.7,12.48,17.2,10.06,19.83333333,16.5
Accounts Receivable Financing,Accounts receivable (AR) financing is a type of financing arrangement in which a company receives financing capital related to a portion of its accounts receivable. Accounts receivable financing agreements can be structured in multiple ways usually with the basis as either an asset sale or a loan.,investopedia,1,30.7,14.8,0,13.76,15.7,10.18,18.25,14.51
Accredited Asset Management Specialist (AAMS),"The Accredited Asset Management Specialist (AAMS®) is a professional designation awarded by the College for Financial Planning unto financial professionals who successfully complete a self-study program, pass an exam, and agree to comply with a code of ethics.",investopedia,1,7.53,21.7,0,16.43,25.2,13.42,29,23.62
Accredited In Business Valuation (ABV),"Accredited in Business Valuation (ABV) is a professional designation awarded to a certified public accountant (CPA), who specializes in calculating businesses' value. The ABV certification is overseen by the American Institute of Certified Public Accountants (AICPA). It requires candidates to complete an application process, pass an exam, meet the minimum business experience and education requirements, and pay a credential fee. As of 2021, the annual fee for the ABV Credential was $380.",investopedia,1,27.83,13.9,16.8,15.14,15.3,11.55,14.75,18.31
Accredited Investor,"An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience.",investopedia,1,21.23,16.4,0,15.44,17.7,11.3,19.75,22.04
Accretion,"Accretion is the gradual and incremental growth of assets and earnings due to business expansion, a company's internal growth, or a merger or acquisition.",investopedia,1,30.2,15,0,13.7,16.3,12.06,19,21.27
Accretion of Discount,"Accretion of discount is the increase in the value of a discounted instrument as time passes and the maturity date looms closer. The value of the instrument will accrete (grow) at the interest rate implied by the discounted issuance price, the value at maturity, and the term to maturity.",investopedia,1,46.61,12.8,0,10.74,13.9,9.04,16.75,13.88
Accretive,"In both finance and in general lexicon, the term ""accretive"" is the adjective form of the word ""accretion"", which refers to gradual or incremental growth. For example, an acquisition deal may be deemed accretive for the absorbing company, if that deal contributes to an increase in earnings per share.",investopedia,1,46.61,12.8,0,11.78,15.1,10.33,18.75,17.96
Accrual Accounting,"Accrual accounting is one of two accounting methods; the other is cash accounting. Accrual accounting measures a company's performance and position by recognizing economic events regardless of when cash transactions occur, whereas cash accounting only records transactions when payment occurs.",investopedia,1,17.34,15.8,0,18.85,18.5,10.94,17.5,17
Accruals,"Accruals are revenues earned or expenses incurred which impact a company's net income on the income statement, although cash related to the transaction has not yet changed hands. Accruals also affect the balance sheet, as they involve non-cash assets and liabilities. Accrual accounts include, among many others, accounts payable, accounts receivable, accrued tax liabilities, and accrued interest earned or payable.",investopedia,1,34.26,13.5,14.1,16.07,16.6,11.73,13.66666667,14
Accrue,"To accrue means to accumulate over time—most commonly used when referring to the interest, income, or expenses of an individual or business. Interest in a savings account, for example, accrues over time, such that the total amount in that account grows. The term accrue is often related to accrual accounting, which has become the standard accounting practice for most companies.",investopedia,1,42.72,12.3,15,12.88,13.8,9.1,14.33333333,15.33
Accrued Expense,"An accrued expense, also known as accrued liabilities, is an accounting term that refers to an expense that is recognized on the books before it has been paid. The expense is recorded in the accounting period in which it is incurred.",investopedia,1,59.13,10.1,0,9.46,11,8.5,12.75,12.1
Accrued Income,"Accrued income is money that's been earned but has yet to be received. Mutual funds or other pooled assets that accumulate income over a period of time—but only pay shareholders once a year—are, by definition, accruing their income. Individual companies can also generate income without actually receiving it, which is the basis of the accrual accounting system.",investopedia,1,35.27,13.1,15,13.17,13.4,10.4,13.83333333,16.72
Accrued Liability,The term accrued liability refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for which it must pay in the future. A company can accrue liabilities for any number of obligations. They may be recorded as either short- or long-term liabilities on the company's balance sheet. They are normally listed on the balance sheet as current expenses and are adjusted at the end of an accounting period.,investopedia,1,54.63,9.8,12.3,9.45,9.3,8.65,10.9,11.46
Accrued Revenue,"Accrued revenue is revenue that has been earned by providing a good or service, but for which no cash has been received. Accrued revenues are recorded as receivables on the balance sheet to reflect the amount of money that customers owe the business for the goods or services they purchased.",investopedia,1,63.02,10.7,0,10.74,13.9,8.98,13.5,11.6
Accumulated Depreciation,"Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Accumulated depreciation is a contra asset account, meaning its natural balance is a credit that reduces the overall asset value.",investopedia,1,18.86,15.2,0,12.82,12.6,9.25,12.75,11.72
Accumulation Phase,"Accumulation phase has two meanings for investors and those saving for retirement. It refers to the period when an individual is working and planning and ultimately building up the value of their investment through savings. The accumulation phase is then followed by the distribution phase, in which retirees begin accessing and using their funds.",investopedia,1,44.75,11.5,13,13.57,13.2,10.09,12,13.13
Accumulation/Distribution Indicator (A/D),"The accumulation/distribution indicator (A/D) is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed. The A/D measure seeks to identify divergences between the stock price and the volume flow. This provides insight into how strong a trend is. If the price is rising but the indicator is falling, then it suggests that buying or accumulation volume may not be enough to support the price rise and a price decline could be forthcoming.",investopedia,1,50.87,11.2,12.6,11.6,12.7,9.13,12.875,12.56
Acid-Test Ratio,"The acid-test ratio, commonly known as the quick ratio, uses a firm's balance sheet data as an indicator of whether it has sufficient short-term assets to cover its short-term liabilities.",investopedia,1,41.03,15,0,12.89,18.7,11.44,19,17.33
Acquisition,"An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders. Acquisitions, which are very common in business, may occur with the target company's approval, or in spite of its disapproval. With approval, there is often a no-shop clause during the process.",investopedia,1,43.77,13.9,15.5,12.25,16.7,9.8,13.75,15.8
Acquisition Accounting,"Acquisition accounting is a set of formal guidelines describing how assets, liabilities, non-controlling interest (NCI) and goodwill of a purchased company must be reported by the buyer on its consolidated statement of financial position.",investopedia,1,3.13,21.3,0,17.59,24.3,14.15,28,25.36
Acquisition Cost,"An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures, but before sales taxes. An acquisition cost may also entail the amount needed to take over another firm or purchase an existing business unit from another company. Additionally, an acquisition cost can describe the costs incurred by a business in relation to the efforts involved in acquiring a new customer.",investopedia,1,33.58,15.8,17.1,13.53,18.1,10.16,20.5,16.66
Acquisition Premium,An acquisition premium is a figure that's the difference between the estimated real value of a company and the actual price paid to acquire it. An acquisition premium represents the increased cost of buying a target company during a merger and acquisition (M&A) transaction.,investopedia,1,23.77,15.4,0,12.36,14.3,9.03,17,14.25
Active Management,"The term active management implies that a professional money manager or a team of professionals is tracking the performance of a client's investment portfolio and regularly making buy, hold, and sell decisions about the assets in it. The goal of the active manager is to outperform the overall market.",investopedia,1,38.15,14,0,12.36,15.1,9.69,17.75,17.15
Activities of Daily Living (ADL),"Activities of daily living (ADLs) are routine activities people do every day without assistance. There are six basic ADLs: eating, bathing, getting dressed, toileting, mobility, and continence. The performance of these ADLs is important in determining what type of long-term care and health coverage, such as Medicare, Medicaid, or long-term care insurance, a person will need as they age.",investopedia,1,43.02,12.2,14.6,13.81,15,9.16,13.83333333,14.66
Activity-Based Budgeting (ABB),"Activity-based budgeting (ABB) is a system that records, researches, and analyzes activities that lead to costs for a company. Every activity in an organization that incurs a cost is scrutinized for potential ways to create efficiencies. Budgets are then developed based on these results.",investopedia,1,39.63,11.4,14.6,13.39,12.1,11.54,11.33333333,14.97
Activity-Based Costing (ABC),"Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services. This accounting method of costing recognizes the relationship between costs, overhead activities, and manufactured products, assigning indirect costs to products less arbitrarily than traditional costing methods. However, some indirect costs, such as management and office staff salaries, are difficult to assign to a product.",investopedia,1,25.08,14.9,16.3,17.98,18.4,11.28,15.66666667,16.67
Activity-Based Management (ABM),Activity-based management (ABM) is a system for determining the profitability of every aspect of a business so that its strengths can be enhanced and its weaknesses can either be improved or eliminated altogether.,investopedia,1,21.06,18.5,0,14.4,20.9,11.97,23.5,21.68
Activity Cost Driver,"An activity cost driver is an accounting term. A cost driver affects the cost of specific business activities. In activity-based costing (ABC), an activity cost driver influences the costs of labor, maintenance, or other variable costs. Cost drivers are essential in ABC, a branch of managerial accounting that allocates the indirect costs, or overheads, of an activity.",investopedia,1,40.04,11.2,13.8,12.75,11.6,9.61,10.625,12.74
Activity Ratios,"An activity ratio is a type of financial metric that indicates how efficiently a company is leveraging the assets on its balance sheet, to generate revenues and cash. Commonly referred to as efficiency ratios, activity ratios help analysts gauge how a company handles inventory management, which is key to its operational fluidity and overall fiscal health.",investopedia,1,17.68,17.8,0,13.76,18,12.07,22,20.49
Actual Deferral & Actual Contribution Percentage Test (ADP/ACP),The Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests are two tests that companies must conduct to ensure that their 401(k) plans don't unfairly benefit highly-paid employees at the expense of others.,investopedia,1,20.05,18.9,0,15.56,23,14.15,28,23.01
Actuarial Gain Or Loss,"Actuarial gain or loss refers to an increase or a decrease in the projections used to value a corporation’s defined benefit pension plan obligations. The actuarial assumptions of a pension plan are directly affected by the discount rate used to calculate the present value of benefit payments and the expected rate of return on plan assets. The Financial Accounting Standards Board (FASB) SFAS No. 158 requires the funding status of pension funds to be reported on the plan sponsor’s balance sheet. This means there are periodic updates to the pension obligations, the fund performance and the financial health of the plan. Depending on plan participation rates, market performance and other factors, the pension plan may experience an actuarial gain or loss in their projected benefit obligation.",investopedia,1,31.04,16.8,18,13.94,19.6,10.46,17.25,18.95
Actuarial Life Table,An actuarial life table is a table or spreadsheet that shows the probability of a person at a certain age dying before their next birthday. It is used often by life insurance companies.,investopedia,1,37.98,16.2,0,10.05,17.1,8.14,10.25,18.05
Actuarial Science,"Actuarial science is a discipline that assesses financial risks in the insurance and finance fields, using mathematical and statistical methods. Actuarial science applies the mathematics of probability and statistics to define, analyze, and solve the financial implications of uncertain future events. Traditional actuarial science largely revolves around the analysis of mortality and the production of life tables, and the application of compound interest.",investopedia,1,7.86,17.4,18.6,18.74,18.8,13.2,17.83333333,20.46
Ad Valorem Tax,"An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. The most common ad valorem taxes are property taxes levied on real estate. However, ad valorem taxes may also extend to a number of tax applications, such as import duty taxes on goods from abroad.",investopedia,1,60.65,9.5,10.5,7.54,8.7,8.73,11.16666667,9.71
Add-On Interest,"Add-on interest is a method of calculating the interest to be paid on a loan by combining the total principal amount borrowed and the total interest due into a single figure, then multiplying that figure by the number of years to repayment. The total is then divided by the number of monthly payments to be made. The result is a loan that combines interest and principal into one amount due.",investopedia,1,47.83,12.4,14.1,9.29,11.9,8.18,15.33333333,13.32
Additional Child Tax Credit,"The Additional Child Tax Credit was the refundable portion of the Child Tax Credit. It could be claimed by families who owed the IRS less than their qualified Child Tax Credit amount. Since the Child Tax Credit was non-refundable, the Additional Child Tax Credit refunded the unused portion of the Child Tax Credit to the taxpayer. This provision was eliminated from 2018 to 2025 by the Tax Cuts and Jobs Act (TCJA).",investopedia,1,70.13,8,12.2,9.97,10.5,8.92,11.5,11.64
Additional Paid-In Capital,"Additional paid-in capital (APIC), is an accounting term referring to money an investor pays above and beyond the par value price of a stock. Often referred to as ""contributed capital in excess of par”, APIC occurs when an investor buys newly-issued shares, directly from a company, during its initial public offering (IPO) stage. Therefore, APICs, which are itemized under the “shareholder’s equity” section of a balance sheet, are viewed as profit opportunities for companies, who receive excess cash from stockholders.",investopedia,1,35.91,14.9,15.9,13.76,18,11.28,18.33333333,16.18
Addition Rule for Probabilities,"The addition rule for probabilities describes two formulas, one for the probability for either of two mutually exclusive events happening and the other for the probability of two non-mutually exclusive events happening.",investopedia,1,-3.31,21.7,0,16.84,22.3,10.16,27,21.55
Adhesion Contract,"An adhesion contract is an agreement where one party has substantially more power than the other in setting the terms of the contract. For a contract of adhesion to exist, the offeror must supply a customer with standard terms and conditions that are identical to those offered to other customers. Those terms and conditions are non-negotiable, meaning the weaker party in the contract must agree to the contract as it is rather than requesting clauses be added, removed, or changed. Adhesion contracts may also be referred to as boilerplate contracts or standard contracts.",investopedia,1,56.29,11.2,12.6,12.65,14.7,9.04,14.375,12.76
Adjudication,"An adjudication is a legal ruling or judgment, usually final, but can also refer to the process of settling a legal case or claim through the court or justice system, such as a decree in the bankruptcy process between the defendant and the creditors.",investopedia,1,35.28,19.3,0,10.35,22.7,11.56,27,22.15
Adjustable Life Insurance,"Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.",investopedia,1,17,20.1,0,14.52,23,11.45,28.5,23.45
Adjustable-Rate Mortgage (ARM),"An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. With an adjustable-rate mortgage, the initial interest rate is fixed for a period of time. After this initial period of time, the interest rate resets periodically, at yearly or even monthly intervals. ARMs are also called variable-rate mortgages or floating mortgages. The interest rate for ARMs is reset based on a benchmark or index, plus an additional spread called an ARM margin.",investopedia,1,53.61,10.2,12.3,11.48,11.7,9.71,11.4,9.77
Adjusted Closing Price,The adjusted closing price amends a stock's closing price to reflect that stock's value after accounting for any corporate actions. It is often used when examining historical returns or doing a detailed analysis of past performance.,investopedia,1,44.75,11.5,0,13.51,13.3,11.11,12.5,14.98
Adjusted EBITDA,"Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a measure computed for a company that takes its earnings and adds back interest expenses, taxes, and depreciation charges, plus other adjustments to the metric.",investopedia,1,10.57,20.5,0,17.13,24.8,12.14,27.5,22
Adjusted Funds From Operations (AFFO),"Adjusted funds from operations (AFFO) refers to the financial performance measure primarily used in the analysis of real estate investment trusts (REITs). The AFFO of a REIT, though subject to varying methods of computation, is generally equal to the trust's funds from operations (FFO) with adjustments made for recurring capital expenditures used to maintain the quality of the REIT's underlying assets. The calculation takes in the adjustment to GAAP straight-lining of rent, leasing costs, and other material factors.",investopedia,1,28.17,15.8,17.5,14.86,18.4,12.42,19.33333333,19.12
Adjusted Gross Income (AGI),Adjusted gross income (AGI) is your annual gross income minus certain adjustments that the Internal Revenue Service uses to determine your income tax liability for the year.,investopedia,1,27.15,16.2,0,14.57,18.3,11.41,19.5,19.69
Adjusted Present Value (APV),"The adjusted present value is the net present value (NPV) of a project or company if financed solely by equity plus the present value (PV) of any financing benefits, which are the additional effects of debt. By taking into account financing benefits, APV includes tax shields such as those provided by deductible interest.",investopedia,1,44.58,13.6,0,11.67,15.8,10.61,18.25,15.88
Adjusting Journal Entry,"An adjusting journal entry is an entry in a company's general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period. When a transaction is started in one accounting period and ended in a later period, an adjusting journal entry is required to properly account for the transaction. Adjusting journal entries can also refer to financial reporting that corrects a mistake made previously in the accounting period.",investopedia,1,28.47,15.7,18.2,12.36,15.6,9.42,19.83333333,15.99
Administrative Expenses,"Administrative expenses are expenses an organization incurs that are not directly tied to a specific function such as manufacturing, production or sales. These expenses are related to the organization as a whole, as opposed to individual departments or business units. Administrative expenses include salaries of senior executives and costs associated with general services, for example, accounting and information technology. They tend to be unrelated to gross margins.",investopedia,1,12.12,15.7,16.8,16.7,15.3,11.78,14.125,16.87
Administrative Services Only (ASO),"Administrative services only (ASO) refers to an agreement that companies use when they fund their employee benefit plan but hire an outside vendor to administrate it. For example, an organization may hire an insurance company to evaluate and process claims under its employee health plan while maintaining the responsibility of paying the claims itself. An ASO arrangement contrasts with a company that purchases health insurance for its employees from an external provider.",investopedia,1,30.2,15,17.5,14.97,16.9,10.53,18.33333333,17.93
Advance/Decline Line (A/D),"The advance/decline line (A/D) is a technical indicator that plots the difference between the number of advancing and declining stocks on a daily basis. The indicator is cumulative, with a positive number being added to the prior number, or if the number is negative it is subtracted from the prior number.",investopedia,1,37.13,14.4,0,11.2,15,9.86,18.25,16.47
Advance Payment,"Advance payment is a type of payment made ahead of its normal schedule such as paying for a good or service before you actually receive it. Advance payments are sometimes required by sellers as protection against nonpayment, or to cover the seller's out-of-pocket costs for supplying the service or product.",investopedia,1,46.1,13,0,12.25,15.4,9.61,15,13.2
Advanced Internal Rating-Based (AIRB),An advanced internal rating-based (AIRB) approach to credit risk measurement is a method that requests that all risk components be calculated internally within a financial institution. Advanced internal rating-based (AIRB) can help an institution reduce its capital requirements and credit risk.,investopedia,1,25.29,14.8,0,17.81,18.2,11.97,16.75,16
Adverse Possession,"The term adverse possession refers to a legal principle that grants title to someone who resides on or is in possession of another person's land. The property's title is granted to the possessor as long as certain conditions are met including whether they infringe on the rights of the actual owner and whether they are in continuous possession of the property. Adverse possession is sometimes called squatter’s rights, although squatter’s rights are a colloquial reference to the idea rather than a recorded law.",investopedia,1,43.36,14.1,15.9,12.71,16.8,9.77,18.83333333,16.38
Adverse Selection,"Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has greater material knowledge than the other party.",investopedia,1,34.56,13.3,15,13.98,14.5,10.77,14.16666667,13.98
Advertising Budget,"An advertising budget is an estimate of a company's promotional expenditures over a certain time period. More importantly, it is the money a company is willing to set aside to accomplish its marketing objectives. When creating an advertising budget, a company must weigh the value of spending an advertising dollar against the value of that dollar as recognized revenue.",investopedia,1,34.56,13.3,16.3,12.82,13.3,8.63,15.16666667,16.02
Affiliate,Affiliate is used primarily to describe a business relationship between wherein one company owns less than a majority stake in the other company's stock. Affiliations can also describe a type of relationship in which at least two different companies are subsidiaries of the same larger parent company.,investopedia,1,30.7,14.8,0,14.1,15.9,9.17,17.25,15.36
Affiliate Marketing,"Affiliate marketing is an advertising model in which a company compensates third-party publishers to generate traffic or leads to the company’s products and services. The third-party publishers are affiliates, and the commission fee incentivizes them to find ways to promote the company.",investopedia,1,24.78,15,0,16.01,16.7,11.45,18,17.92
Affiliated Companies,"Companies are affiliated when one company is a minority shareholder of another. In most cases, the parent company will own less than a 50% interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third party. In the business world, affiliated companies are often simply called affiliates.",investopedia,1,32.09,12.2,14.6,11.65,10,7.48,10.875,9.88
Affirmative Action,"Affirmative action is a policy that aims to increase opportunities in the workplace or education to underrepresented parts of society by taking into account an individual's color, race, sex, religion, or national origin.",investopedia,1,-4.33,22.1,0,15.33,21.9,12.93,25.5,24.11
Affordable Care Act,"The Affordable Care Act (ACA) is the comprehensive healthcare reform signed into law by President Barack Obama in March 2010. Formally known as the Patient Protection and Affordable Care Act, and often just called Obamacare, the law includes a list of healthcare policies intended to extend health insurance coverage to millions of uninsured Americans",investopedia,1,44.07,13.8,0,14.68,18.3,11.99,18.5,17.47
After-Tax Real Rate of Return,"The after-tax real rate of return is the actual financial benefit of an investment after accounting for the effects of inflation and taxes. It is a more accurate measure of an investor’s net earnings after income taxes have been paid and the rate of inflation has been adjusted for. Both of these factors will impact the gains an investor receives, and so must be accounted for. This can be contrasted with the gross rate of return and the nominal rate of return of an investment.",investopedia,1,58.32,10.4,13.8,9.34,11.1,8.59,14.125,13.7
After-Hours Trading,"After-hours trading starts at 4 p.m. U.S. Eastern Time after the major U.S. stock exchanges close. The after-hours trading session can run as late as 8 p.m., though volume typically thins out much earlier in the session. Trading in the after-hours is conducted through electronic communication networks (ECNs).",investopedia,1,59.3,8,11.2,11.59,10.4,10.81,7,8.97
After-Tax Contribution,"An after-tax contribution is money paid into a retirement or investment account after income taxes on those earnings have already been deducted. When opening a tax-advantaged retirement account, an individual may choose to defer the income taxes owed until after retiring, if it is a so-called traditional retirement account, or pay the income taxes in the year in which the payment is made, if it is a Roth retirement account.",investopedia,1,27.49,18.1,0,12.25,20.1,8.76,23.5,18.57
After-Tax Income,"After-tax income is the net income after the deduction of all federal, state, and withholding taxes. After-tax income, also called income after taxes, represents the amount of disposable income that a consumer or firm has available to spend.",investopedia,1,43.73,11.9,0,12.65,13.4,8.73,13,12.86
Agency Bond,An agency bond is a security issued by a government-sponsored enterprise or by a federal government department other than the U.S. Treasury. Some are not fully guaranteed in the same way that U.S. Treasury and municipal bonds are. An agency bond is also known as agency debt.,investopedia,1,59.5,7.9,11.2,8.8,7.4,9.26,6.875,9.83
Agency by Necessity,"Agency by necessity is a type of legal relationship in which one party can make essential decisions for another party. The courts recognize agency by necessity during an emergency or urgent situation under which the beneficiary is unable to provide explicit authorization. Under such circumstances, those granted agency must act for the sole benefit of the beneficiary.",investopedia,1,26.81,14.2,15.9,14.16,13.9,10.12,14.5,16.02
Agency Problem,"The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders. The manager, acting as the agent for the shareholders, or principals, is supposed to make decisions that will maximize shareholder wealth even though it is in the manager’s best interest to maximize his own wealth.",investopedia,1,36.32,14.7,18.2,13.06,16.7,9.94,20.16666667,18.62
Agency Theory,"Agency theory is a principle that is used to explain and resolve issues in the relationship between business principals and their agents. Most commonly, that relationship is the one between shareholders, as principals, and company executives, as agents.",investopedia,1,35.27,13.1,0,14.79,14.8,9.15,14.5,14.97
Agent,"An agent, in legal terminology, is a person who has been legally empowered to act on behalf of another person or an entity. An agent may be employed to represent a client in negotiations and other dealings with third parties. The agent may be given decision-making authority.",investopedia,1,47.08,10.6,12.5,9.92,9.3,9.45,10.5,12.24
Aggregate Demand,Aggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.,investopedia,1,56.08,11.3,0,11.15,13.4,8.83,14.75,13.66
Aggregate Stop-Loss Insurance,"Aggregate stop-loss insurance is a policy designed to limit claim coverage (losses) to a specific amount. This coverage ensures that a catastrophic claim (specific stop-loss) or numerous claims (aggregate stop-loss) do not drain the financial reserves of a self-funded plan. Aggregate stop-loss protects the employer against claims that are higher than expected. If total claims exceed the aggregate limit, the stop-loss insurer covers the claims or reimburses the employer.",investopedia,1,37,12.4,15.6,15.19,15,10.22,13.375,13.88
Aggregate Supply,"Aggregate supply, also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period. It is represented by the aggregate supply curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Typically, there is a positive relationship between aggregate supply and the price level.",investopedia,1,40.38,13.2,14.1,12.42,14.1,9.22,14.83333333,13.7
Aggregation,"Aggregation in the futures markets is a process that combines of all futures positions owned or controlled by a single trader or group of traders into one aggregate position. Aggregation in a financial planning sense, however, is a time-saving accounting method that consolidates an individual’s financial data from various institutions.",investopedia,1,20.72,16.6,0,15.84,18.2,11.82,19.5,18
Aggressive Investment Strategy,"An aggressive investment strategy typically refers to a style of portfolio management that attempts to maximize returns by taking a relatively higher degree of risk. Strategies for achieving higher than average returns typically emphasize capital appreciation as a primary investment objective, rather than income or safety of principal. Such a strategy would therefore have an asset allocation with a substantial weighting in stocks and possibly little or no allocation to bonds or cash.",investopedia,1,21.43,16.3,18.6,15.73,17.6,11.55,19.5,19.04
Agribusiness Definition,Agribusiness is the business sector encompassing farming and farming-related commercial activities.,investopedia,1,-15.84,18.2,0,27.41,22.2,12.79,8.5,18.95
Air Waybill (AWB),"An air waybill (AWB) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment and allow it to be tracked. The bill has multiple copies so that each party involved in the shipment can document it. An air waybill (AWB), also known as an air consignment note, is a type of bill of lading. However, an AWB serves a similar function to ocean bills of lading, but an AWB is issued in non-negotiable form, meaning there's less protection with an AWB versus bills of lading.",investopedia,1,56.08,11.3,12.6,9.46,12.6,9.67,14.5,13.23
Aktiengesellschaft (AG),"AG is an abbreviation of Aktiengesellschaft, which is a German term for a public limited company. This type of company shares are offered to the general public and traded on a public stock exchange. Shareholders' liability is limited to their investment. The shareholders are not responsible for the company's debts, and their assets are protected in case the company becomes insolvent.",investopedia,1,47.49,10.4,14.6,12.64,11.6,9.57,11.625,13.33
Alan Greenspan,"Alan Greenspan is an American economist who was the chair of the Board of Governors of the Federal Reserve (Fed), the United States' central bank, from 1987 until 2006. In that role, he also served as the chair of the Federal Open Market Committee (FOMC), which is the Fed’s principal monetary policymaking committee that makes decisions on interest rates and managing the U.S. money supply.",investopedia,1,38.49,16,0,11.44,18.6,11.56,22.75,19.15
Aleatory Contract,"An aleatory contract is an agreement whereby the parties involved do not have to perform a particular action until a specific, triggering event occurs. Events are those that cannot be controlled by either party, such as natural disasters and death. Aleatory contracts are commonly used in insurance policies. For example, the insurer does not have to pay the insured until an event, such as a fire that results in property loss. Aleatory contracts—also called aleatory insurance—are helpful because they typically help the purchaser reduce financial risk.",investopedia,1,45.56,11.2,13,13.8,13.1,10.36,11.6,12.93
Algorithmic Trading,"Algorithmic trading is a process for executing orders utilizing automated and pre-programmed trading instructions to account for variables such as price, timing and volume. An algorithm is a set of directions for solving a problem. Computer algorithms send small portions of the full order to the market over time.",investopedia,1,46.47,10.8,13.6,13.34,12.3,10.89,11.5,13.87
All Risks,"All risks refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. For example, if an ""all risk"" homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.",investopedia,1,47.62,12.5,0,11.03,13.8,10.85,16.25,16.21
Allocated Loss Adjustment Expenses (ALAE),Allocated loss adjustment expenses (ALAE) are attributed to the processing of a specific insurance claim. ALAE is part of an insurer’s expense reserves. It is one of the largest expenses for which an insurer has to set aside funds—along with contingent commissions.,investopedia,1,57.27,8.8,15,12.81,11,10.72,11.33333333,16.08
Allocational Efficiency,"Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where capital is assigned in a way that is most beneficial to the parties involved.",investopedia,1,8.2,19.3,0,14.69,19.1,9.98,22.5,19.88
Allotment,An allotment commonly refers to the allocation of shares granted to a participating underwriting firm during an initial public offering (IPO). Remaining surpluses go to other firms that have won the bid for the right to sell the remaining IPO shares. There are several types of allotment that arise when new shares are issued and allocated to either new or existing shareholders.,investopedia,1,50.46,11.4,15.5,12.01,13.1,9.76,15,15.38
Allowance for Bad Debt,"An allowance for bad debt is a valuation account used to estimate the amount of a firm's receivables that may ultimately be uncollectible. It is also known as an allowance for doubtful accounts. When a borrower defaults on a loan, the allowance for bad debt account and the loan receivable balance are both reduced for the book value of the loan.",investopedia,1,59.33,10,11.9,9.46,10.8,8.53,12.5,12.71
Allowance for Credit Losses,Allowance for credit losses is an estimate of the debt that a company is unlikely to recover. It is taken from the perspective of the selling company that extends credit to its buyers.,investopedia,1,46.44,15,0,10.05,17.1,10.54,11.25,18.05
Allowance for Doubtful Accounts,"An allowance for doubtful accounts is a contra account that nets against the total receivables presented on the balance sheet to reflect only the amounts expected to be paid. The allowance for doubtful accounts estimates the percentage of accounts receivable that are expected to be uncollectible. However, the actual payment behavior of customers may differ substantially from the estimate.",investopedia,1,43.02,12.2,15,15.08,15,10.5,14.16666667,15.34
Alpha,"Alpha (α) is a term used in investing to describe an investment strategy's ability to beat the market, or its ""edge."" Alpha is thus also often referred to as “excess return” or “abnormal rate of return,” which refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole. Alpha is often used in conjunction with beta (the Greek letter β), which measures the broad market's overall volatility or risk, known as systematic market risk.",investopedia,1,34.77,19.5,0,10.52,23.5,10.46,18.16666667,22.29
Alphabet Stock,"An alphabet stock refers to a separate class of common stock that is tied to a specific subsidiary of a corporation. More broadly, it refers to shares of common stock that are distinguished in some way from other common stock of the same company.",investopedia,1,66.07,9.5,0,9.11,11.3,8.32,14,12.44
Altcoin,"Altcoins are cryptocurrencies other than Bitcoin. They share characteristics with Bitcoin but are also different from them in other ways. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or, they distinguish themselves from Bitcoin by providing new or additional capabilities, such as smart contracts or low-price volatility.",investopedia,1,32.39,12.1,13.8,16.7,14.1,9.86,10.25,14.29
Alternative Depreciation System (ADS),"An alternative depreciation system (ADS) is one of the methods the Internal Revenue Service (IRS) requires taxpayers to use to determine the depreciation allowed on business assets. An ADS has a depreciation schedule with a longer recovery period that generally better mirrors the asset's income streams than declining balance depreciation. If the taxpayer elects to use an alternative depreciation system, they must apply it to all property of the same class placed in service during the same year.",investopedia,1,28.17,15.8,16.3,13.7,17.1,10.59,18.33333333,16.04
Alternative Investment,"An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.",investopedia,1,23.93,13.3,14.9,17.8,15.2,11.03,11,12.81
Alternative Minimum Tax (AMT),"An alternative minimum tax (AMT) places a floor on the percentage of taxes that a filer must pay to the government, no matter how many deductions or credits the filer may claim.",investopedia,1,47.46,14.6,0,9.06,16,10.16,21,17.8
Alternative Trading System (ATS),An alternative trading system (ATS) is a trading venue that is more loosely regulated than an exchange. ATS platforms are often used to match large buy and sell orders among its subscribers. The most widely used type of ATS in the United States are electronic communication networks (ECNs)—computerized systems that automatically match buy and sell orders for securities in the market.,investopedia,1,42.41,12.4,11.9,13.17,14,9.82,12.5,12.71
Altman Z-Score,The Altman Z-score is the output of a credit-strength test that gauges a publicly-traded manufacturing company's likelihood of bankruptcy.,investopedia,1,26.81,14.2,0,17.81,17.8,14.55,15.5,16.02
Always Be Closing (ABC),"Always Be Closing (ABC) is a motivational phrase used to describe a sales strategy. It implies that a salesperson following the regimen should continuously look for new prospects, pitch products or services to those prospects, and ultimately complete a sale.",investopedia,1,42.72,12.3,0,13.63,14.4,10.55,13.5,14
Amalgamation,"An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.",investopedia,1,39.03,11.6,14.1,11.88,10.8,9.2,11.33333333,11.34
Amended Return,"An amended return is a form filed in order to make corrections to a tax return from a previous year. An amended return can be used to correct errors and claim a more advantageous tax status—such as a refund. For example, one might choose to file an amended return in instances of misreported earnings or tax credits. Mathematical errors, however, would not require amendments, as the IRS would automatically correct for such errors.",investopedia,1,52.9,10.4,11.7,10.68,10.9,8.65,11.375,11.16
American Depositary Receipt (ADR),An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—often one share—of a foreign company's stock. The ADR trades on U.S. stock markets as any domestic shares would.,investopedia,1,51.68,10.9,0,13.23,14.2,11.08,14.25,14.98
American Depositary Share (ADS),An American depositary share (ADS) is an equity share of a non-U.S. company that is held by a U.S. depositary bank and is available for purchase by U.S. investors.,investopedia,1,58.96,12.2,0,8.31,15,9.98,19.5,14.36
American Dream,"The American dream is the belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society in which upward mobility is possible for everyone. The American dream is believed to be achieved through sacrifice, risk-taking, and hard work, rather than by chance.",investopedia,1,22.08,24.3,0,11.27,30.2,9.51,18.75,25.61
American Express Card,"An American Express card, also known as an “Amex” card, is an electronic payment card branded by the publicly traded financial services company American Express (AXP). The company issues and processes prepaid, charge, and credit cards. American Express cards are available to individuals, small businesses, and corporate consumers across the United States and around the world.",investopedia,1,44.03,11.8,14.1,14.91,15,9.92,13,11.77
American Opportunity Tax Credit (AOTC),"The American Opportunity Tax Credit is a tax credit for qualified education expenses associated with the first four years of a student’s post-secondary education. It replaced the Hope Credit in 2009. The AOTC can be claimed on the tax return of a student, a person claiming the student as a dependent, or a spouse making post-secondary education payments.",investopedia,1,43.43,12,14.6,11.84,12.4,9.49,13.66666667,12.55
American Stock Exchange (AMEX),"The American Stock Exchange (AMEX) was once the third-largest stock exchange in the United States, as measured by trading volume. The exchange, at its height, handled about 10% of all securities traded in the U.S.",investopedia,1,70.63,7.8,0,10.61,11.5,9.47,8.75,8.14
Americans with Disabilities Act (ADA),"The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities and guarantees that they have equal opportunity to participate in mainstream American life. Passed in 1990, this federal law made it illegal to discriminate against a disabled person in terms of employment opportunities, access to transportation, public accommodations, communications, and government activities.",investopedia,1,1.77,19.7,0,20.6,23.4,11.7,22.5,21.91
Amortizable Bond Premium,"The amortizable bond premium is a tax term that refers to the excess price paid for a bond over and above its face value. Depending on the type of bond, the premium can be tax-deductible and amortized over the life of the bond on a pro-rata basis.",investopedia,1,64.54,10.1,0,7.2,10.5,8.83,14.75,11.95
Amortization of Intangibles,Amortization of intangibles is the process of expensing the cost of an intangible asset over the projected life of the asset for tax or accounting purposes. The amortization process for corporate accounting purposes may differ from the amount of amortization posted for tax purposes.,investopedia,1,32.22,14.2,0,14.1,15.2,9.03,17.5,16.07
Amortization Schedule,"An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Each periodic payment is the same amount in total for each period. However, early in the schedule, the majority of each payment is what is owed in interest; later in the schedule, the majority of each payment covers the loan's principal. The last line of the schedule shows the borrower’s total interest and principal payments for the entire loan term.",investopedia,1,46.81,12.8,13.8,10.22,13.3,7.93,15.625,12.61
Amortization,"Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time. In relation to a loan, amortization focuses on spreading out loan payments over time. When applied to an asset, amortization is similar to depreciation.",investopedia,1,38.32,11.9,14.1,11.31,10.5,9.36,11.66666667,13.9
Amortized Bond,"An amortized bond is one in which the principal (face value) on the debt is paid down regularly, along with its interest expense over the life of the bond. A fixed-rate residential mortgage is one common example because the monthly payment remains constant over its life of, say, 30 years. However, each payment represents a slightly different percentage mix of interest versus principal. An amortized bond is different from a balloon or bullet loan, where there is a large portion of the principal that must be repaid only at its maturity.",investopedia,1,48.33,12.2,13.8,10.91,13.3,8.93,14.875,12.64
Amortized Loan,"An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the loan's principal amount and the interest accrued. An amortized loan payment first pays off the relevant interest expense for the period, after which the remainder of the payment is put toward reducing the principal amount. Common amortized loans include auto loans, home loans, and personal loans from a bank for small projects or debt consolidation.",investopedia,1,55.27,11.6,14.1,12.31,15,9.82,15.83333333,14.65
Amsterdam Stock Exchange (AEX),"Founded in 1602, along with the creation of the Dutch East India Company (VOC), the Amsterdam Stock Exchange is considered the oldest, still-functioning stock exchange in the world.",investopedia,1,43.06,14.2,0,13.7,18.7,10.66,18,15.49
Analysis of Variance (ANOVA),"Analysis of variance (ANOVA) is an analysis tool used in statistics that splits an observed aggregate variability found inside a data set into two parts: systematic factors and random factors. The systematic factors have a statistical influence on the given data set, while the random factors do not. Analysts use the ANOVA test to determine the influence that independent variables have on the dependent variable in a regression study.",investopedia,1,31.21,14.6,15.9,13.35,15.2,9.81,16.5,16.16
Android Operating System,"The Android operating system is a mobile operating system that was developed by Google (GOOGL​) to be primarily used for touchscreen devices, cell phones, and tablets. Its design lets users manipulate the mobile devices intuitively, with finger movements that mirror common motions, such as pinching, swiping, and tapping. Google also employs Android software in televisions, cars, and wristwatches—each of which is fitted with a unique user interface.",investopedia,1,40.38,13.2,13,15.32,16.9,12.28,14.16666667,13.7
Anchoring,"Anchoring is a heuristic revealed by behavioral finance that describes the subconscious use of irrelevant information, such as the purchase price of a security, as a fixed reference point (or anchor) for making subsequent decisions about that security. Thus, people are more likely to estimate the value of the same item higher if the suggested sticker price is $100 than if it is $50.",investopedia,1,39,15.8,0,11.79,18.4,11.14,22,19.68
Anchoring and Adjustment,"Anchoring and adjustment is a phenomenon wherein an individual bases their initial ideas and responses on one point of information and makes changes driven by that starting point. The anchoring and adjustment heuristic describes cases in which a person uses a specific target number or value as a starting point, known as an anchor, and subsequently adjusts that information until an acceptable value is reached over time. Often, those adjustments are inadequate and remain too close to the original anchor, which is a problem when the anchor is very different from the true answer.",investopedia,1,31.25,16.7,16.3,13.07,18.7,9.89,21,17.63
Angel Investor,"An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.",investopedia,1,35.61,15,15,13.58,17.6,9.46,17.83333333,15.24
Animal Spirits,"Animal spirits is a term coined by the famous British economist, John Maynard Keynes, to describe how people arrive at financial decisions, including buying and selling securities, in times of economic stress or uncertainty. In Keynes’s 1936 publication, The General Theory of Employment, Interest, and Money, he speaks of animal spirits as the human emotions that affect consumer confidence.",investopedia,1,24.61,17.2,0,15.39,20.1,13.13,22.25,19.94
Annual Equivalent Rate (AER),The annual equivalent rate (AER) is the interest rate for a savings account or investment product that has more than one compounding period. AER is calculated under the assumption that any interest paid is included in the principal payment's balance and the next interest payment will be based on the slightly higher account balance.,investopedia,1,35.61,15,0,12.54,16.5,9.95,19.5,18.21
Annual General Meeting (AGM),"An annual general meeting (AGM) is a yearly gathering of a company's interested shareholders. At an AGM, the directors of the company present an annual report containing information for shareholders about the company's performance and strategy.",investopedia,1,19.37,15,0,14.96,14.9,9.35,16.5,17.2
Annual Percentage Rate (APR),"The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers and paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes any fees or additional costs associated with the transaction, but it does not take compounding into account. The APR provides consumers with a bottom-line number they can easily compare with rates from other lenders.",investopedia,1,50.67,11.3,14.2,11.37,12.6,9.85,14,14.05
Annual Percentage Yield (APY),The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.,investopedia,1,36.63,14.6,0,12.02,15.7,10.39,18,18.09
Annual Report,"An annual report is a document that public corporations must provide annually to shareholders that describes their operations and financial conditions. The front part of the report often contains an impressive combination of graphics, photos, and an accompanying narrative, all of which chronicle the company's activities over the past year and may also make forecasts about the future of the company. The back part of the report contains detailed financial and operational information.",investopedia,1,29.89,15.1,17.5,15.38,17.4,10.25,18.5,19.04
Annual Return,"The annual return is the return that an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include dividends, returns of capital and capital appreciation. The rate of annual return is measured against the initial amount of the investment and represents a geometric mean rather than a simple arithmetic mean.",investopedia,1,43.43,12,15,13.4,13.7,8.95,14,13.24
Annual Turnover,"Annual turnover is the percentage rate at which something changes ownership over the course of a year. For a business, this rate could be related to its yearly turnover in inventories, receivables, payables, or assets.",investopedia,1,62.17,8.9,0,11.95,12.1,9.47,11.75,13.86
Annualize,"To annualize a number means to convert a short-term calculation or rate into an annual rate. Typically, an investment that yields a short-term rate of return is annualized to determine an annual rate of return, which may also include compounding or reinvestment of interest and dividends. It helps to annualize a rate of return to better compare the performance of one security versus another.",investopedia,1,32.94,14,16.3,12.01,13.5,9.13,16,16.65
Annualized Income,"Annualized income is an estimate of the sum of money that an individual or a business generates over a year's time. Annualized income is calculated with less than one year's worth of data, so it is only an approximation of total income for the year. Annualized income figures can be helpful for creating budgets and making estimated income tax payments.",investopedia,1,42.72,12.3,13.6,10.68,11.7,8.31,13.33333333,13.33
Annualized Income Installment Method,"The annualized income installment method calculates a taxpayers' estimated tax installment payments and helps to decrease underpayment and penalties incurred due to their fluctuating income. Taxpayers must pay quarterly installments of their estimated tax in amounts figured by the regular installment method. When a taxpayer has a fluctuating income it often causes them to underpay on the quarterly estimates leading to underpayment penalties. Through the use of the annualized income installment method, taxpayers may more accurately estimate their taxes. ",investopedia,1,25.8,14.6,17.4,17.4,17.1,9.96,16.25,16
Annualized Rate of Return,"An annualized rate of return is calculated as the equivalent annual return an investor receives over a given period. The Global Investment Performance Standards dictate that returns of portfolios or composites for periods of less than one year may not be annualized. This prevents ""projected"" performance in the remainder of the year from occurring.",investopedia,1,36.28,12.7,15.9,13.69,13.4,10.38,14,16.83
Annualized Total Return,An annualized total return is the geometric average amount of money earned by an investment each year over a given time period. The annualized return formula is calculated as a geometric average to show what an investor would earn over a period of time if the annual return was compounded. An annualized total return provides only a snapshot of an investment's performance and does not give investors any indication of its volatility or price fluctuations.,investopedia,1,29.18,15.4,17.5,12.25,15,9.09,18.83333333,17.47
Annuitant,"An annuitant is an individual who is entitled to collect the regular payments of a pension or an annuity investment. The annuitant may be the contract holder or another person, such as a surviving spouse. Annuities are generally seen as retirement income supplements. They may be tied to an employee pension plan or a life insurance product. The size of the payments is usually determined by the life expectancy of the annuitant as well as the amount invested.",investopedia,1,47.18,10.6,14.6,10.44,9.5,9.27,11.8,14.96
Annuitization,Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant. Annuity payments may only be made to the annuitant or to the annuitant and a surviving spouse in a joint life arrangement. Annuitants can arrange for beneficiaries to receive a portion of the annuity balance upon their death.,investopedia,1,37,12.4,15.2,11.42,11,9.3,13.125,15.04
Annuity,"Annuities are contracts issued and distributed (or sold) by financial institutions where the funds are invested with the goal of paying out a fixed income stream later on. They are mainly used for retirement purposes and help individuals address the risk of outliving their savings. Upon annuitization, the holding institution will issue a stream of payments at a later point in time.",investopedia,1,42,12.5,14.1,12.36,13.4,10.27,14,15.38
Annuity Due,"An annuity due is an annuity whose payment is due immediately at the beginning of each period. A common example of an annuity due payment is rent, as landlords often require payment upon the start of a new month as opposed to collecting it after the renter has enjoyed the benefits of the apartment for an entire month.",investopedia,1,50.5,13.4,0,9.41,14.5,8.61,19,15.74
Annuity Table,"An annuity table is a tool for determining the present value of an annuity or other structured series of payments. Such a tool, used by accountants, actuaries, and other insurance personnel, takes into account how much money has been placed into an annuity and how long it has been there to determine how much money would be due to an annuity buyer or annuitant.",investopedia,1,39,15.8,0,9.88,16.6,8.68,21.5,17.8
Anomaly,"In economics and finance, an anomaly is when the actual result under a given set of assumptions is different from the expected result predicted by a model. An anomaly provides evidence that a given assumption or model does not hold up in practice. The model can either be a relatively new or older model.",investopedia,1,53.21,10.3,13,8.93,9.5,8.92,12,13.13
Anti-Dilution Provision,"Anti-dilution provisions are clauses built into convertible preferred stocks and some options to help shield investors from their investment potentially losing value. When new issues of a stock hit the market at a cheaper price than that paid by earlier investors in the same stock, then equity dilution can occur. Anti-dilution provisions are also referred to as anti-dilution clauses, subscription rights, subscription privileges, or preemptive rights.",investopedia,1,40.69,13.1,15.9,16.01,17.3,10.23,16,14.86
Anti-Dumping Duty,An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process wherein a company exports a product at a price that is significantly lower than the price it normally charges in its home (or its domestic) market.,investopedia,1,44.07,13.8,0,11.38,15.5,10.24,18,14.5
Anti Money Laundering (AML),"Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.",investopedia,1,6.84,17.8,0,19.9,20.8,15.49,20,23.35
Anticipatory Breach,An anticipatory breach of contract is an action that shows one party's intention to fail to fulfill its contractual obligations to another party. An anticipatory breach ends the counterparty's responsibility to perform its duties.,investopedia,1,20.38,14.6,0,15.37,14.3,11.45,12.5,13.86
Antitrust,"Antitrust laws are regulations that encourage competition by limiting the market power of any particular firm. This often involves ensuring that mergers and acquisitions don't overly concentrate market power or form monopolies, as well as breaking up firms that have become monopolies. Antitrust laws also prevent multiple firms from colluding or forming a cartel to limit competition through practices such as price fixing. Due to the complexity of deciding what practices will limit competition, antitrust law has become a distinct legal specialization.",investopedia,1,33.75,13.6,14.9,15.78,16,10.43,14.5,15.03
Appellate Courts,"Appellate courts, also known as the court of appeals, are the part of the American judicial system that is responsible for hearing and reviewing appeals from legal cases that have already been heard in a trial-level or other lower court.",investopedia,1,30.88,18.9,0,11.44,21.9,9.96,26,20
Applicable Federal Rate (AFR),The applicable federal rate (AFR) is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the agency considers the minimum market rate for loans. Any interest rate that is less the AFR would have tax implications. The IRS publishes these rates in accordance with Section 1274(d) of the Internal Revenue Code.,investopedia,1,54.42,9.8,13.8,11.08,10.9,9.42,11.875,12.09
Application Programming Interface (API),"An application programming interface (API) is a set of programming code that queries data, parses responses, and sends instructions between one software platform and another. APIs are used extensively in providing data services across a range of fields and contexts.",investopedia,1,42.72,12.3,0,14.79,15.3,12.13,14.5,15
Application-Specific Integrated Circuit (ASIC),"An application-specific integrated circuit (ASIC) is a type of circuit that has been designed for a single specific purpose. An ASIC miner refers to a device that uses microprocessors for the sole purpose of ""mining"" digital currency. Generally, each ASIC miner is constructed to mine a specific digital currency. So, a bitcoin ASIC miner can mine only bitcoin. One way to think about bitcoin ASICs is as specialized bitcoin mining computers, or “bitcoin generators,"" that are optimized to solve the mining algorithm.",investopedia,1,46.37,10.9,13.3,12.18,11.8,9.26,11.4,12.9
Applied Economics,"Applied economics applies the conclusions drawn from economic theories and empirical studies to real-world situations with the desired aim of informing economic decisions and predicting possible outcomes. The purpose of applied economics is to improve the quality of practice in business, public policy, and daily life by thinking rigorously about costs and benefits, incentives, and human behavior. Applied economics can involve the use of case studies and econometrics, which is the application of real-world data to statistical models and comparing the results against the theories being tested.",investopedia,1,16.66,18.1,19.9,16.78,20.8,11.43,23.16666667,20.34
Appraisal,"An appraisal is a valuation of property, such as real estate, a business, collectible, or an antique, by the estimate of an authorized person. The authorized appraiser must have a designation from a regulatory body governing the jurisdiction of the appraiser. Appraisals are typically used for insurance and taxation purposes or to determine a possible selling price for an item or property.",investopedia,1,33.54,13.7,17.1,12.82,14,10.01,16.33333333,17.31
Appraisal Costs,Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections.,investopedia,1,39.63,11.4,13.6,15.77,13.5,10.83,10.66666667,14.06
Appraisal Management Company (AMC),"An Appraisal Management Company, or AMC, is an independent entity through which mortgage lenders order residential real estate valuation services for properties on which they are considering extending loans to homebuyers. AMCs fulfill an administrative function in the appraisal process, including selecting an appraiser and delivering the appraisal report to the lender. Individual appraisers who work for AMCs provide the actual property valuation services.",investopedia,1,16.02,16.3,17.9,18.16,18.4,12.34,17.33333333,19.77
Appropriation,"Appropriation is when money is set aside money for a specific and particular purpose or purposes. A company or a government appropriates funds in order to delegate cash for the necessities of its business operations. Appropriations for the U.S. federal government are decided by Congress through various committees. A company might appropriate money for short-term or long-term needs that include employee salaries, research and development, and dividends.",investopedia,1,29.04,13.4,16.2,15.31,14.4,10.6,13.625,16.87
Appropriation Account,"Appropriation is the act of setting aside money for a specific purpose. In accounting, it refers to a breakdown of how a firm’s profits are divided up, or for the government, an account that shows the funds a government department has been credited with. A company or a government appropriates funds in order to delegate cash for the necessities of its business operations.",investopedia,1,41.7,12.7,15.5,10.79,12.3,8.94,15.16666667,14.75
Aptitude Test,"An aptitude test is an exam used to determine an individual's skill or propensity to succeed in a given activity. Aptitude tests assume that individuals have inherent strengths and weaknesses, and have a natural inclination toward success or failure in specific areas based on their innate characteristics.",investopedia,1,22.24,16,0,14.63,16.4,12.53,18.25,19.61
Arab League,"The Arab League, officially the League of Arab States, is a union of Arabic-speaking African and Asian countries. It was formed in Cairo in 1945 to promote the independence, sovereignty, affairs, and interests of its member countries (originally, there were six) and observers.",investopedia,1,58.11,10.5,0,13.23,15.3,11.68,13.25,12.32
Arbitrage Pricing Theory (APT),"Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset's returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture systematic risk. It is a useful tool for analyzing portfolios from a value investing perspective, in order to identify securities that may be temporarily mispriced.",investopedia,1,14.12,19.1,0,14.81,20.4,12.72,23.25,21.49
Arbitration,"Arbitration is a mechanism for resolving disputes between investors and brokers, or between brokers. It is overseen by the Financial Industry Regulatory Authority (FINRA), and the decisions are final and binding. Arbitration is distinct from mediation, in which parties negotiate to reach a voluntary settlement, and decisions are not binding unless all parties agree to them.",investopedia,1,27.11,14.1,15.5,15.03,14.9,10.2,14,15.34
Arc Elasticity,Arc elasticity is the elasticity of one variable with respect to another between two given points. It is used when there is no general function to define the relationship between the two variables.,investopedia,1,54.73,9.7,0,11.08,10.4,8.76,10.75,9.02
Arithmetic Mean,"The arithmetic mean is the simplest and most widely used measure of a mean, or average. It simply involves taking the sum of a group of numbers, then dividing that sum by the count of the numbers used in the series. For example, take the numbers 34, 44, 56, and 78. The sum is 212. The arithmetic mean is 212 divided by four, or 53.",investopedia,1,83.66,4.8,8.2,4.74,4.6,8.17,6.3,7.66
Arm's Length Transaction,"An arm's length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other. These types of sales assert that both parties act in their own self-interest and are not subject to pressure from the other party; furthermore, it assures others that there is no collusion between the buyer and seller. In the interest of fairness, both parties usually have equal access to information related to the deal.",investopedia,1,45.8,13.2,13.6,12.19,15.4,9.88,16,14.86
Arms Index (TRIN),"The Arms Index, also called the Short-Term Trading Index (TRIN) is a technical analysis indicator that compares the number of advancing and declining stocks (AD Ratio) to advancing and declining volume (AD volume). It is used to gauge overall market sentiment. Richard W. Arms, Jr. invented it in 1967, and it measures the relationship between market supply and demand. It serves as a predictor of future price movements in the market, primarily on an intraday basis. It does this by generating overbought and oversold levels, which indicate when the index (and the majority of stocks in it) will change direction.",investopedia,1,51.18,11.1,13.7,11.37,12.8,10.94,13.4,13.6
Aroon Indicator,"The Aroon indicator is a technical indicator that is used to identify trend changes in the price of an asset, as well as the strength of that trend. In essence, the indicator measures the time between highs and the time between lows over a time period. The idea is that strong uptrends will regularly see new highs, and strong downtrends will regularly see new lows. The indicator signals when this is happening, and when it isn't.",investopedia,1,69.11,8.3,12.2,9.23,10.1,8.32,12,10.76
Aroon Oscillator,"The Aroon Oscillator is a trend-following indicator that uses aspects of the Aroon Indicator (Aroon Up and Aroon Down) to gauge the strength of a current trend and the likelihood that it will continue. Readings above zero indicate that an uptrend is present, while readings below zero indicate that a downtrend is present. Traders watch for zero line crossovers to signal potential trend changes. They also watch for big moves, above 50 or below -50 to signal strong price moves.",investopedia,1,59.64,9.9,11.7,11.02,12.1,9.17,12.25,11
Arrow's Impossibility Theorem,"Arrow's impossibility theorem is a social-choice paradox illustrating the flaws of ranked voting systems. It states that a clear order of preferences cannot be determined while adhering to mandatory principles of fair voting procedures. Arrow's impossibility theorem, named after economist Kenneth J. Arrow, is also known as the general impossibility theorem.",investopedia,1,16.18,14.2,14.6,16.05,13.6,10.46,10.375,12.96
Article 50,Article 50 is a clause in the European Union's (EU) Lisbon Treaty that outlines the steps to be taken by a country seeking to leave the bloc voluntarily. Invoking Article 50 kick-starts the formal exit process and allows countries to officially declare their intention to leave the EU. The United Kingdom was the first country to invoke Article 50 after a majority of British voters elected to leave the union in 2016.,investopedia,1,47.12,12.7,13,10.39,13.3,11.19,15,13.49
Articles of Association,"Articles of association form a document that specifies the regulations for a company's operations and defines the company's purpose. The document lays out how tasks are to be accomplished within the organization, including the process for appointing directors and the handling of financial records.",investopedia,1,23.77,15.4,0,15.66,16.9,12.26,18.5,20.62
Articles of Incorporation,"Articles of incorporation are a set of formal documents filed with a government body to legally document the creation of a corporation. Articles of incorporation generally contain pertinent information, such as the firm’s name, street address, agent for service of process, and the amount and type of stock to be issued.",investopedia,1,37.13,14.4,0,13.18,16.3,10.47,18.25,16.47
Artificial Intelligence (AI),Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The term may also be applied to any machine that exhibits traits associated with a human mind such as learning and problem-solving.,investopedia,1,40.18,13.2,0,13.41,15.1,11.07,14.25,12.56
Ascending Channel,"An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.",investopedia,1,54.93,9.6,11.2,13.57,12.4,10.57,10.16666667,10.6
Ascending Triangle,"An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming.",investopedia,1,64,8.2,11.9,10.15,9.2,8.78,10.16666667,10.11
Asia-Pacific Economic Cooperation (APEC),"The Asia-Pacific Economic Cooperation (APEC) is an economic group of 21 members, formed in 1989, with the primary goal of promoting free trade and sustainable development in the Pacific Rim economies.",investopedia,1,23.09,17.7,0,13.99,19.9,12.31,24.5,21.43
Asian Development Bank,"Founded in 1966, the Asian Development Bank's (ADB) headquarters are in Manila, Philippines. The Asian Development Bank's primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region. The ADB assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.",investopedia,1,27.66,16,0,17.06,20.6,14.19,13.16666667,18.9
Asian Financial Crisis,"The Asian financial crisis, also called the ""Asian Contagion,"" was a sequence of currency devaluations and other events that began in the summer of 1997 and spread through many Asian markets. The currency markets first failed in Thailand as the result of the government's decision to no longer peg the local currency to the U.S. dollar (USD). Currency declines spread rapidly throughout East Asia, in turn causing stock market declines, reduced import revenues, and government upheaval.",investopedia,1,45.8,13.2,13.6,13.29,16.8,10.92,16,13.28
Asian Infrastructure Investment Bank (AIIB),The Asian Infrastructure Investment Bank (AIIB) is a new international development bank that provides financing for infrastructure projects in Asia. It began operations in January 2016.,investopedia,1,41.36,10.7,0,17.5,14.8,11.57,10.5,14.43
Ask,"The ask is the price a seller is willing to accept for a security, which is often referred to as the offer price. Along with the price, the ask quote might also stipulate the amount of the security available to be sold at the stated price. The bid is the price a buyer is willing to pay for a security, and the ask will always be higher than the bid.",investopedia,1,73.21,8.8,9.7,5.87,9.2,6.82,13,10.46
Assemble to Order (ATO),"Assemble-to-order (ATO) is a business production strategy where products that are ordered by customers are produced quickly and are customizable to a certain extent. It typically requires that the basic parts of the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and the final product is sent to the customer.",investopedia,1,42.72,12.3,12.5,12.71,13.5,9.63,12.66666667,12.67
Assessed Value,An assessed value is the dollar value assigned to a property to measure applicable taxes. Assessed valuation determines the value of a residence for tax purposes and takes comparable home sales and inspections into consideration. It is the price placed on a home by the corresponding government municipality to calculate property taxes.,investopedia,1,28.54,13.6,15.5,13.86,13,9.96,13.33333333,16.15
Asset Allocation,"Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon. The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.",investopedia,1,27.66,16,0,15.09,18.9,11.51,20.75,18.9
Asset-Backed Commercial Paper (ABCP),An asset-backed commercial paper (ABCP) is a short-term investment vehicle with a maturity date that is typically between 90 and 270 days. A bank or other financial institution typically issues the security itself. The notes are backed by the company's physical assets such as trade receivables. Companies will use an asset-backed commercial paper to fund short-term financing needs.,investopedia,1,39.84,11.3,14.9,13.62,12.3,10.89,11.5,14.77
Asset-Backed Security (ABS),"An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity. For income-oriented investors, asset-backed securities can be an alternative to other debt instruments, like corporate bonds or bond funds.",investopedia,1,31.89,18.5,0,12.08,22.4,12.05,18.33333333,22.78
Asset-Based Approach,An asset-based approach is a type of business valuation that focuses on a company's net asset value. The net asset value is identified by subtracting total liabilities from total assets. There is some room for interpretation in terms of deciding which of the company's assets and liabilities to include in the valuation and how to measure the worth of each.,investopedia,1,42.72,12.3,14.6,11.02,12,8.84,14,13.33
Asset-Based Lending,"Asset-based lending is the business of loaning money in an agreement that is secured by collateral. An asset-based loan or line of credit may be secured by inventory, accounts receivable, equipment, or other property owned by the borrower.",investopedia,1,43.73,11.9,0,12.65,13.2,10.81,13,12.86
Asset Class,An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are made up of instruments which often behave similarly to one another in the marketplace.,investopedia,1,35.27,13.1,0,12.65,12.6,9.57,14,16.02
Asset Coverage Ratio,"The asset coverage ratio is a financial metric that measures how well a company can repay its debts by selling or liquidating its assets. The asset coverage ratio is important because it helps lenders, investors, and analysts measure the financial solvency of a company. Banks and creditors often look for a minimum asset coverage ratio before lending money.",investopedia,1,34.97,13.2,15,12.3,12.7,9.77,14,12.55
Asset Financing,"Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan. The company borrowing the funds must provide the lender with a security interest in the assets.",investopedia,1,41.7,12.7,0,12.94,14.3,11.07,15.5,16.97
Asset-Liability Committee (ALCO),"An asset-liability committee (ALCO), also known as surplus management, is a supervisory group that coordinates the management of assets and liabilities with a goal of earning adequate returns. By managing a company's assets and liabilities, executives are able to influence net earnings, which may translate into increased stock prices.",investopedia,1,12.77,17.6,0,15.9,18.5,11.62,18.75,18.78
Asset/Liability Management,Asset/liability management is the process of managing the use of assets and cash flows to reduce the firm’s risk of loss from not paying a liability on time. Well-managed assets and liabilities increase business profits. The asset/liability management process is typically applied to bank loan portfolios and pension plans. It also involves the economic value of equity.,investopedia,1,40.04,11.2,13,13.39,11.6,10.72,10.125,11.33
Asset Management,"Asset management is the direction of all or part of a client's portfolio by a financial services institution, usually an investment bank, or an individual. Institutions offer investment services along with a wide range of traditional and alternative product offerings that might not be available to the average investor.",investopedia,1,29.69,15.2,0,14.63,17,10.97,19.25,19.6
Asset Management Company (AMC),"An asset management company (AMC) is a firm that invests pooled funds from clients, putting the capital to work through different investments including stocks, bonds, real estate, master limited partnerships, and more. Along with high-net-worth individual portfolios, AMCs manage hedge funds and pension plans, and—to better serve smaller investors—create pooled structures such as mutual funds, index funds, or exchange-traded funds, which they can manage in a single centralized portfolio.",investopedia,1,28,17.9,0,17.42,24.7,12.44,25.25,19.6
Asset Protection,Asset protection is the adoption of strategies to guard one's wealth. Asset protection is a component of financial planning intended to protect one's assets from creditor claims. Individuals and business entities use asset protection techniques to limit creditors' access to certain valuable assets while operating within the bounds of debtor-creditor law.,investopedia,1,28.84,13.5,14.6,16.41,15.3,11.29,12.5,13.86
Asset Swapped Convertible Option Transaction (ASCOT),"An asset swapped convertible option transaction (ASCOT) is a structured investment strategy in which an option on a convertible bond is used to separate a convertible bond into its two components: a fixed income piece and an equity piece. More specifically, the components being separated are the corporate bond with its regular coupon payments and the equity option that functions as a call option.",investopedia,1,30.54,17,0,13.3,19.4,10.16,23.5,19.05
Asset Turnover Ratio,The asset turnover ratio measures the value of a company's sales or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a company is using its assets to generate revenue.,investopedia,1,49.15,11.9,0,9.23,11.4,9.75,14,13.35
Asset Valuation,"Asset valuation is the process of determining the fair market or present value of assets, using book values, absolute valuation models like discounted cash flow analysis, option pricing models or comparables. Such assets include investments in marketable securities such as stocks, bonds and options; tangible assets like buildings and equipment; or intangible assets such as brands, patents and trademarks.",investopedia,1,24.61,17.2,0,16.72,21.2,12.59,20.25,18.58
Assets Under Management (AUM),Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.,investopedia,1,38.82,11.7,0,12.76,11.5,10.52,11.25,12.65
Assignment,Assignment most often refers to one of two definitions in the financial world:,investopedia,1,58.28,8.4,0,10.83,9,9.14,8.5,14.43
Assortment Strategies,"An assortment strategy in retailing involves the number and type of products that stores display for purchase by consumers. Also called a ""product assortment strategy,"" it is a strategic tool that retailers use to manage and increase sales. The strategy is comprised of two major components:",investopedia,1,55.95,9.3,12.5,12.4,11.4,10.92,10.33333333,10.47
Assumable Mortgage,"An assumable mortgage is a type of financing arrangement whereby an outstanding mortgage and its terms are transferred from the current owner to a buyer. By assuming the previous owner's remaining debt, the buyer can avoid obtaining their own mortgage.",investopedia,1,42.72,12.3,0,13.05,13.7,11.73,14,16
Assurance,"Assurance refers to financial coverage that provides remuneration for an event that is certain to happen. Assurance is similar to insurance, with the terms often used interchangeably. However, insurance refers to coverage over a limited time, whereas assurance applies to persistent coverage for extended periods or until death. Assurance may also apply to validation services provided by accountants and other professionals.",investopedia,1,22.11,14,16.5,16.17,14.4,10.35,13.125,15.96
Assurance Services,"Assurance services are a type of independent professional service usually provided by certified or chartered accountants such as certified public accountants (CPAs). Assurance services can include a review of any financial document or transaction, such as a loan, contract, or financial website. This review certifies the correctness and validity of the item being reviewed by the CPA.",investopedia,1,26.81,14.2,16.7,15.37,15.2,10.95,15.16666667,16.72
Asymmetric Information,"Asymmetric information, also known as ""information failure,"" occurs when one party to an economic transaction possesses greater material knowledge than the other party. This typically manifests when the seller of a good or service possesses greater knowledge than the buyer; however, the reverse dynamic is also possible. Almost all economic transactions involve information asymmetries.",investopedia,1,19.37,15,16.7,17.34,16.7,10.09,14.66666667,15.35
At The Money,"At the money (ATM) is a situation where an option's strike price is identical to the current market price of the underlying security. An ATM option has a delta of ±0.50, positive if it is a call, negative for a put.",investopedia,1,59.13,10.1,0,6.33,8.9,10.05,13.25,14.05
Attorney-in-Fact,"An attorney-in-fact is a person who is authorized to act on behalf of another person, usually to perform business or other official transactions. The person represented usually designates someone as their attorney-in-fact by assigning power of attorney.",investopedia,1,18.86,15.2,0,15.66,15.4,8.82,15.25,16.05
What Is Attribution Analysis?,"Attribution analysis is a sophisticated method for evaluating the performance of a portfolio or fund manager. Also known as “return attribution” or “performance attribution,” it attempts to quantitatively analyze aspects of an active fund manager’s investment selections and decisions—and to identify sources of excess returns, especially as compared to an index or other benchmark.",investopedia,1,10.23,18.5,0,17.93,20.8,12.29,22,20.43
Attrition,"The term attrition refers to a gradual but deliberate reduction in staff numbers that occurs as employees retire or resign and are not replaced. It is commonly used to describe downsizing in a firm's employee pool by human resources (HR) professionals. In this case, downsizing is voluntary, where employees either resign or retire and aren't replaced by the company.",investopedia,1,43.02,12.2,15,12.18,13.1,10.23,14.16666667,14.66
Auction Market,"In an auction market, buyers enter competitive bids and sellers submit competitive offers at the same time. The price at which a stock trades represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. Matching bids and offers are then paired together, and the orders are executed. The New York Stock Exchange (NYSE) is an example of an auction market.",investopedia,1,61.67,9.1,10.1,9.1,9.8,8.92,10.5,9.42
Audit,The term audit usually refers to a financial statement audit. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent. The audit can be conducted internally by employees of the organization or externally by an outside Certified Public Accountant (CPA) firm.,investopedia,1,23.46,15.5,17.9,14.28,15.5,10.4,17.83333333,18.47
Audit Committee,An audit committee is one of the major operating committees of a company's board of directors that is in charge of overseeing financial reporting and disclosure.,investopedia,1,28.17,15.8,0,12.89,16.2,11,22,24.25
Audit Risk,"Audit risk is the risk that financial statements are materially incorrect, even though the audit opinion states that the financial reports are free of any material misstatements.",investopedia,1,35.61,15,0,15.26,18.6,10.82,19.5,18.21
Auditor,"An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries.",investopedia,1,26.1,14.5,17.5,15.43,15.5,12.37,16.16666667,20.08
Auditor's Opinion,An auditor's opinion is a certification that accompanies financial statements. It is based on an audit of the procedures and records used to produce the statements and delivers an opinion as to whether material misstatements exist in the financial statements. An auditor's opinion may also be called an accountant's opinion.,investopedia,1,46.06,11,14.1,13.63,12.8,10.15,12,13.88
Auditor's Report,An auditor's report is a written letter from the auditor containing their opinion on whether a company's financial statements comply with generally accepted accounting principles (GAAP) and are free from material misstatement.,investopedia,1,13.62,19.3,0,17.76,23.3,13.12,27,26.55
Augmented Product,An augmented product has been enhanced by its seller with added features or services to distinguish it from the same product offered by its competitors. Augmenting a product involves including intangible benefits or add-ons that go beyond the product itself.,investopedia,1,42.72,12.3,0,14.04,14.4,11.34,13.5,15
Austerity,The term austerity refers to a set of economic policies that a government implements in order to control public sector debt. Governments put austerity measures in place when their public debt is so large that the risk of default or the inability to service the required payments on its obligations becomes a real possibility.,investopedia,1,44.07,13.8,0,12.13,15.9,10.24,18,15.99
Australian Securities Exchange (ASX),"The Australian Securities Exchange is headquartered in Sydney, Australia. The Exchange in its current form was created through the merger of the Australian Stock Exchange and Sydney Futures Exchange in 1999. The ASX acts as a market operator, clearing house, and payments facilitator. It also provides educational materials to retail investors.",investopedia,1,41.56,10.6,10.7,14.49,12.1,10.46,7.125,10.61
Autarky,"Autarky refers to a nation that operates in a state of self-reliance. Nations that follow a policy of autarky are characterized by self-sufficiency and limited trade with global partners. The definition of autarky comes from the Greek—autos, meaning ""self"" and arkein, meaning ""to ward off"" and ""to be strong enough, to suffice."" A fully autarkic nation would be a closed economy and lacking any sources of external support, trade or aid. In practice, however, no modern nation has achieved this level of autarky, even when subjected to punishing sanctions. This is because the global supply chain has made true economic isolation difficult, so any policy of autarky is a matter of degrees rather than a complete isolation.",investopedia,1,51.68,10.9,13,11.78,12.8,9.87,10.66666667,12.59
Authorized Stock,"Authorized stock, or authorized shares, refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation in the U.S., or in the company's charter in other parts of the world. It is also usually listed in the capital accounts section of the balance sheet. Authorized shares should not be confused with outstanding shares, which are the number of shares the corporation has actually issued that are held by the public.",investopedia,1,44.07,13.8,15.9,11.32,15.7,9.85,18.5,16.23
Autocorrelation,"Autocorrelation is a mathematical representation of the degree of similarity between a given time series and a lagged version of itself over successive time intervals. It's conceptually similar to the correlation between two different time series, but autocorrelation uses the same time series twice: once in its original form and once lagged one or more time periods.",investopedia,1,17.17,17.9,0,14.28,18.6,9.48,20.75,19.12
Automated Clearing House (ACH),"The Automated Clearing House (ACH) Network is an electronic funds-transfer system run by NACHA, formerly called the National Automated Clearing House Association, since 1974. This payment system provides ACH transactions for use with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the U.S.",investopedia,1,37.64,14.2,0,15.73,18.9,12.46,16.5,14.8
Automated Customer Account Transfer Service (ACATS),"The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The National Securities Clearing Corporation (NSCC) developed the ACATS system, replacing the previous manual asset transfer system with this fully automated and standardized one.",investopedia,1,19.2,17.2,0,16.6,19.7,10.61,20.75,18.9
Automated Teller Machine (ATM),An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access cash at most ATMs.,investopedia,1,51.18,11.1,0,11.55,12.5,10.94,12,12
Automatic Bill Payment,"An automatic bill payment is a money transfer scheduled on a predetermined date to pay a recurring bill. Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to vendors.",investopedia,1,45.25,11.3,0,11.95,11.8,9.92,11.75,12.71
Automatic Premium Loan,An automatic premium loan is an insurance policy provision that allows the insurer to deduct the amount of an outstanding premium from the value of the policy when the premium is due. Automatic premium loan provisions are most commonly associated with cash value life insurance policies and allow a policy to continue to be in force rather than lapsing due to nonpayment of the premium.,investopedia,1,30.03,17.1,0,12.14,18.4,9.38,26.25,20.38
Automatic Stabilizer,"Automatic stabilizers are a type of fiscal policy designed to offset fluctuations in a nation's economic activity through their normal operation without additional, timely authorization by the government or policymakers.",investopedia,1,-18.2,23.3,0,19.68,23.6,14.07,26,25.33
Autonomous Consumption,"Autonomous consumption is defined as the expenditures that consumers must make even when they have no disposable income. Certain goods need to be purchased, regardless of how much income or money a consumer has in their possession at any given time. When a consumer is low on resources, paying for these necessities can force them to borrow or access money that they had previously been saving.",investopedia,1,57.61,10.7,12.5,11.37,13.2,8.79,13.66666667,13.65
Autonomous Expenditure,"An autonomous expenditure describes the components of an economy's aggregate expenditure that are not impacted by that same economy's real level of income. This type of spending is considered automatic and necessary, whether occurring at the government level or the individual level. The classical economic theory states that any rise in autonomous expenditures will create at least an equivalent rise in aggregate output, such as GDP, if not a greater increase.",investopedia,1,30.5,14.9,18.2,14.45,16.5,10.37,18.83333333,18.49
Autoregressive,"A statistical model is autoregressive if it predicts future values based on past values. For example, an autoregressive model might seek to predict a stock's future prices based on its past performance.",investopedia,1,46.78,10.7,0,12.7,11.7,10.35,10.5,11.4
Autoregressive Integrated Moving Average (ARIMA),"An autoregressive integrated moving average, or ARIMA, is a statistical analysis model that uses time series data to either better understand the data set or to predict future trends.",investopedia,1,16.66,18.1,0,14.28,18.7,12.15,20.5,18.5
Available Balance,"The available balance is the balance in checking or on-demand accounts that is free for use by the customer or account holder. These are funds that are available for immediate use, and includes deposits, withdrawals, transfers, and any other activity that has already cleared to or from the account. A credit card account's available balance is normally referred to as available credit.",investopedia,1,58.92,10.2,9.7,12.36,13.7,8.99,11.66666667,10.22
Available-for-Sale Security,"An available-for-sale security (AFS) is a debt or equity security purchased with the intent of selling before it reaches maturity or holding it for a long period should it not have a maturity date. Accounting standards necessitate that companies classify any investments in debt or equity securities when they are purchased as held-to-maturity, held-for-trading, or available-for-sale. Available-for-sale securities are reported at fair value; changes in value between accounting periods are included in accumulated other comprehensive income in the equity section of the balance sheet.",investopedia,1,9.22,18.9,19.9,16.6,20.8,10.29,22.66666667,18.34
Average Age Of Inventory,The average age of inventory is the average number of days it takes for a firm to sell off inventory. It is a metric that analysts use to determine the efficiency of sales. The average age of inventory is also referred to as days' sales in inventory (DSI).,investopedia,1,55.24,9.5,13.6,6.96,7.1,8.71,11.33333333,10.57
Average Annual Growth Rate (AAGR),"The average annual growth rate (AAGR) is the average increase in the value of an individual investment, portfolio, asset, or cash stream over the period of a year.",investopedia,1,34.6,15.4,0,9.93,15.5,10.66,21,19.77
Average Annual Return (AAR),"The average annual return (AAR) is a percentage used when reporting the historical return, such as the three-, five-, and 10-year average returns of a mutual fund. The average annual return is stated net of a fund's operating expense ratio. Additionally, it does not include sales charges, if applicable, or portfolio transaction brokerage commissions.",investopedia,1,36.28,12.7,16.3,12.93,13.7,11.55,14.33333333,16.83
Average Inventory,"Average inventory is a calculation that estimates the value or number of a particular good or set of goods during two or more specified time periods. Average inventory is the mean value of inventory within a certain time period, which may vary from the median value of the same data set, and is computed by averaging the starting and ending inventory values over a specified period.",investopedia,1,21.06,18.5,0,10.8,17.7,9.1,25,19.87
Average Collection Period,The average collection period is the amount of time it takes for a business to receive payments owed by its clients in terms of accounts receivable (AR). Companies calculate the average collection period to make sure they have enough cash on hand to meet their financial obligations.,investopedia,1,47.62,12.5,0,11.78,14.1,9.84,17.25,16.21
Average Cost Basis,The average cost basis method is a system of calculating the value of mutual fund positions held in a taxable account to determine the profit or loss for tax reporting. Cost basis represents the initial value of a security or mutual fund that an investor owns.,investopedia,1,39.67,13.4,0,9.99,12.2,10.61,16,16.16
Average Cost Method,The average cost method assigns a cost to inventory items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced. The average cost method is also known as the weighted-average method.,investopedia,1,57.61,10.7,0,10.15,12.2,9.03,14,12.44
Average Daily Balance Method,"The average daily balance is a common accounting method that calculates interest charges by considering the balance invested or owed at the end of each day of the billing period, rather than the balance invested or owed at the end of the week, month, or year.",investopedia,1,33.25,20.1,0,10.35,23.7,10.38,31,24.49
Average Daily Rate (ADR),The average daily rate (ADR) is a metric widely used in the hospitality industry to indicate the average revenue earned for an occupied room on a given day. The average daily rate is one of the key performance indicators (KPI) of the industry.,investopedia,1,41.19,12.9,0,8.99,11.3,9.48,15.75,15.11
Average Daily Trading Volume (ADTV),"Average daily trading volume (ADTV) is the average number of shares traded within a day in a given stock. Daily volume is how many shares are traded each day, but this can be averaged over a number of days to find the average daily volume. Average daily trading volume is an important metric because high or low trading volume attracts different types of traders and investors. Many traders and investors prefer higher average daily trading volume compared to low trading volume, because with high volume it is easier to get into and out positions. Low volume assets have fewer buyers and sellers, and therefore it may be harder to enter or exit at a desired price.",investopedia,1,47.93,12.3,11.2,10.04,12.5,8.33,12,10.66
Average Directional Index (ADX),The average directional index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend.,investopedia,1,41.7,12.7,0,11.72,13.3,12.95,16.5,19.83
Average Life,"The average life is the length of time the principal of a debt issue is expected to be outstanding. Average life does not take into account interest payments, but only principal payments made on the loan or security. In loans, mortgages, and bonds, the average life is the average period of time before the debt is repaid through amortization or sinking fund payments.",investopedia,1,50.16,11.5,14.6,10.27,12,8.94,14.5,13.48
Average Outstanding Balance,"An average outstanding balance is the unpaid, interest-bearing balance of a loan or loan portfolio averaged over a period of time, usually one month. The average outstanding balance can refer to any term, installment, revolving, or credit card debt on which interest is charged. It may also be an average measure of a borrower’s total outstanding balances over a period of time.",investopedia,1,42,12.5,16.3,11.72,13.2,9.5,15.66666667,14.73
Average Propensity to Consume,The average propensity to consume (APC) measures the percentage of income that is spent rather than saved. This may be calculated by a single individual who wants to know where the money is going or by an economist who wants to track the spending and saving habits of an entire nation.,investopedia,1,54.05,12.1,0,9.29,13,9.86,15.75,14.91
Average Return,"The average return is the simple mathematical average of a series of returns generated over a specified period of time. An average return is calculated the same way that a simple average is calculated for any set of numbers. The numbers are added together into a single sum, then the sum is divided by the count of the numbers in the set.",investopedia,1,50.46,11.4,14.6,8.24,10,7.46,14.33333333,12.8
Average Selling Price (ASP),"The term average selling price (ASP) refers to the price at which a certain class of good or service is typically sold. The average selling price is affected by the type of product and the product life cycle. The ASP is the average selling price of the product across multiple distribution channels, across a product category within a company, or even across the market as a whole.",investopedia,1,57.3,10.8,13,9.7,11.9,8.04,14.16666667,12.5
Average True Range (ATR),"The average true range (ATR) is a technical analysis indicator, introduced by market technician J. Welles Wilder Jr. in his book New Concepts in Technical Trading Systems, that measures market volatility by decomposing the entire range of an asset price for that period.",investopedia,1,41.19,12.9,0,13.23,14.8,12.41,15.75,16.97
Axe,"An axe (or ""axe to grind"") is the interest that a trader shows in buying or selling a security that is typically already on the books. If a trader holds a long position but has short-term concerns, that trader’s axe toward short-term put options may be significant. Likewise, if a trader has risk exposure to an increase in interest rates, they may have an axe to hedge against that risk.",investopedia,1,64.75,10,11.9,8.48,11.7,9.3,14,12.75
Baby Bond,"A baby bond is a fixed income security that is issued in small-dollar denominations, with a par value of less than $1,000. The small denominations enhance the attraction of baby bonds to average retail investors.",investopedia,1,45.25,11.3,0,10.9,11.3,11.27,11.75,11.57
Baby Boomer,"Baby boomer is a term used to describe a person who was born between 1946 and 1964. The baby boomer generation makes up a substantial portion of the world's population, especially in developed nations. It represents 21.19% of the population of the United States of America, as of 2019 figures.",investopedia,1,54.52,9.8,12.5,9.8,9.9,10.15,11,11.48
Back-End Ratio,"The back-end ratio, also known as the debt-to-income ratio, is a ratio that indicates what portion of a person's monthly income goes toward paying debts. Total monthly debt includes expenses, such as mortgage payments (principal, interest, taxes, and insurance), credit card payments, child support, and other loan payments.",investopedia,1,38.66,13.8,0,14.45,17.7,11.08,15,13.77
Back Office,"The back office is the portion of a company made up of administration and support personnel who are not client-facing. Back-office functions include settlements, clearances, record maintenance, regulatory compliance, accounting, and IT services. For example, a financial services firm is segmented into three parts: the front office (e.g., sales, marketing, and customer support), the middle office (risk management), and the back office (administrative and support services).",investopedia,1,32.22,14.2,16.3,16.65,18.9,10.95,16.33333333,16.68
Back Stop,"A back stop is the act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. When a company is trying to raise capital through an issuance —and wants to guarantee the amount received through the issue—it may get a back stop from an underwriter or a major shareholder, such as an investment bank, to buy any of its unsubscribed shares.",investopedia,1,45.93,15.2,0,10.92,18.1,9.54,23.25,18.77
Back-to-Back Letters of Credit,"Back-to-back letters of credit consist of two letters of credit (LoCs) used together to finance a transaction. A back-to-back letter of credit is usually used in a transaction involving an intermediary between the buyer and seller, such as a broker, or when a seller must purchase the goods it will sell from a supplier as part of the sale to his buyer.",investopedia,1,40.01,15.4,0,9.7,16.3,8.74,20,15.63
Backdoor Roth IRA,"A backdoor Roth IRA is not an official type of retirement account. Instead, it is an informal name for a complicated but IRS-sanctioned method for high-income taxpayers to fund a Roth, even if their incomes exceed the limits that the IRS allows for regular Roth contributions. Brokerages that offer both traditional IRAs and Roth IRAs provide assistance in pulling off this strategy, which basically involves converting a traditional IRA into the Roth variety.",investopedia,1,38.35,13.9,16.7,13.29,15.8,11.33,17.83333333,17.39
Backflush Costing,"Backflush costing is a product costing system generally used in a just-in-time (JIT) inventory system. In short, it is an accounting method that records the costs associated with producing a good or service only after they are produced, completed, or sold. Backflush costing is also commonly referred to as backflush accounting.",investopedia,1,45.76,11.1,12.5,12.99,12.8,9.74,11.16666667,12.29
Backlog,"A backlog is a buildup of work that needs to be completed. The term ""backlog"" has a number of uses in accounting and finance. It may, for example, refer to a company's sales orders waiting to be filled or a stack of financial paperwork, such as loan applications, that needs to be processed.",investopedia,1,61.97,9,11.9,7.6,8.7,9.88,11.16666667,12.36
Backorder,"A backorder is an order for a good or service that cannot be filled at the current time due to a lack of available supply. The item may not be held in the company's available inventory but could still be in production, or the company may need to still manufacture more of the product.",investopedia,1,60.99,11.5,0,7.38,12.2,8.48,16.5,14.5
Backtesting,"Backtesting is the general method for seeing how well a strategy or model would have done ex-post. Backtesting assesses the viability of a trading strategy by discovering how it would play out using historical data. If backtesting works, traders and analysts may have the confidence to employ it going forward.",investopedia,1,46.06,11,14.6,12.12,11.5,9.83,12.33333333,13.08
Backup Withholding,"Backup withholding is a tax that is levied on investment income, at an established tax rate, as the investor withdraws it. For payments not subject to withholding, payers are required to withhold the tax. Backup withholding helps to ensure that government tax-collecting agencies, such as the Internal Revenue Service (IRS) or Canada Revenue Agency, will be able to receive income taxes owed to them from investors’ earnings.",investopedia,1,48.84,12,12.5,13.23,15,10.4,13.83333333,11.91
Backward Integration,"Backward integration is a form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that supplies the products or services needed for production. For example, a company might buy their supplier of inventory or raw materials. Companies often complete backward integration by acquiring or merging with these other businesses, but they can also establish their own subsidiary to accomplish the task. Complete vertical integration occurs when a company owns every stage of the production process, from raw materials to finished goods/services.",investopedia,1,33.24,13.8,16.6,14.68,15.5,9.49,15.4,13.73
Backwardation,"Backwardation is when the current price, or spot price, of an underlying asset is higher than prices trading in the futures market.",investopedia,1,57.61,10.7,0,10.91,13.1,10.47,13,12.44
Bad Credit,"Bad credit refers to a person's history of failing to pay bills on time, and the likelihood that they will fail to make timely payments in the future. It is often reflected in a low credit score. Companies can also have bad credit based on their payment history and current financial situation.",investopedia,1,62.38,8.9,11.9,8.99,9.2,9.05,11,10.77
Bad Debt,"Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses that extend credit to customers, as there is always a risk that payment will not be received.",investopedia,1,44.07,13.8,0,9.99,14.2,9.65,17.5,16.73
Bad Debt Expense,"A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. Companies that extend credit to their customers report bad debts as an allowance for doubtful accounts on the balance sheet, which is also known as a provision for credit losses.",investopedia,1,47.46,14.6,0,12.2,18.3,11.14,20,17.8
Bag Holder,"A bag holder is an informal term used to describe an investor who holds a position in a security that decreases in value until it descends into worthlessness. In most cases, the bag holder stubbornly retains their holding for an extended period, during which time the value of the investment goes to zero.",investopedia,1,44.58,13.6,0,10.39,14.4,9.72,17.75,17.39
Bail Bond,"A bail bond is an agreement by a criminal defendant to appear for trial or pay a sum of money set by the court. The bail bond is cosigned by a bail bondsman, who charges the defendant a fee in return for guaranteeing the payment.",investopedia,1,65.56,9.7,0,6.45,9.2,8.61,13.25,11.67
Bail-In,"A bail-in provides relief to a financial institution on the brink of failure by requiring the cancellation of debts owed to creditors and depositors. A bail-in is the opposite of a bailout, which involves the rescue of a financial institution by external parties, typically governments, using taxpayers’ money for funding.",investopedia,1,29.18,15.4,0,14.1,17,12.46,19,18.8
Bailout,"A bailout is when a business, an individual, or a government provides money and/or resources (also known as a capital injection) to a failing company. These actions help to prevent the consequences of that business's potential downfall which may include bankruptcy and default on its financial obligations.",investopedia,1,39.16,13.6,0,14.1,16.4,10.51,16.75,15.36
Bait and Switch,"Bait and switch is a morally suspect sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar, pricier item. It is considered a form of retail sales fraud, though it takes place in other contexts. While many countries have laws against using bait and switch tactics, not all occurrences constitute fraud.",investopedia,1,64.04,10.3,11.9,10.22,13.1,10.97,14.33333333,13.49
Balance of Trade (BOT),Balance of trade (BOT) is the difference between the value of a country's exports and the value of a country's imports for a given period. Balance of trade is the largest component of a country's balance of payments (BOP). Sometimes the balance of trade between a country's goods and the balance of trade between its services are distinguished as two separate figures.,investopedia,1,58.92,10.2,10.5,10.5,12.3,7.97,12,10.22
Balance Sheet,"A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders.",investopedia,1,32.57,16.2,0,11.91,17.4,10.65,21.5,18.67
Balanced Budget,A balanced budget is a situation in financial planning or the budgeting process where total expected revenues are equal to total planned spending. This term is most frequently applied to public sector (government) budgeting. A budget can also be considered balanced in hindsight after a full year's worth of revenues and expenses have been incurred and recorded.,investopedia,1,52.19,10.7,13,13.23,13.4,10.4,12.5,12.51
Balanced Fund,"A balanced fund is a mutual fund that typically contains a component of stocks and bonds. A mutual fund is a basket of securities in which investors can purchase. Typically, balanced funds stick to a fixed asset allocation of stocks and bonds, such as 70% stocks and 30% bonds. Bonds are debt instruments that usually pay a stable, fixed rate of return.",investopedia,1,64.2,8.2,11.7,8.87,8.5,9.5,9,10.72
Balanced Investment Strategy,"A balanced investment strategy combines asset classes in a portfolio in an attempt to balance risk and return. Typically, balanced portfolios are divided between stocks and bonds, either equally or with a slight tilt, such as 60% in stocks and 40% in bonds. Balanced portfolios may also maintain a small cash or money market component for liquidity purposes.",investopedia,1,43.43,12,13.6,12.01,12.7,11.13,13,13.93
Balanced Scorecard,"The term balanced scorecard (BSC) refers to a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Used to measure and provide feedback to organizations, balanced scorecards are common among companies in the United States, the United Kingdom, Japan, and Europe. Data collection is crucial to providing quantitative results as managers and executives gather and interpret the information. Company personnel can use this information to make better decisions for the future of their organizations.",investopedia,1,24.98,14.9,15.9,17.17,17.5,11.52,15.375,16.51
Balloon Loan,"A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan. Balloon loans can be attractive to short-term borrowers because they typically carry lower interest rates than loans with longer terms. However, the borrower must be aware of refinancing risks as there's a risk the loan may reset at a higher interest rate.",investopedia,1,58.62,10.3,12.2,9.17,11,9.19,13,12.21
Balloon Payment,"A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, a commercial loan, or another type of amortized loan. It is considered similar to a bullet repayment.",investopedia,1,61.67,9.1,0,6.9,8.1,7.6,11.5,11.64
Ballpark Figure,"A ballpark figure is a rough numerical estimate or approximation of the value of something that is otherwise unknown. Ballpark figures are commonly used by accountants, salespersons, and other professionals to estimate current or future results. A stockbroker could use a ballpark figure to estimate how much money a client might have at some point in the future, given a certain rate of growth. A salesperson could use a ballpark figure to estimate how long a product a customer was thinking about buying might be viable.",investopedia,1,49.65,11.7,13.4,11.72,13.2,8.37,14,12.79
Baltic Dry Index,"The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange. It measures changes in the cost of transporting various raw materials, such as coal and steel.",investopedia,1,63.19,8.5,0,10.21,10.2,10.2,10.75,11.45
Bancassurance,"Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank's client base. This partnership arrangement can be profitable for both companies. Banks earn additional revenue by selling insurance products, and insurance companies expand their customer bases without increasing their sales force or paying agent and broker commissions.",investopedia,1,34.56,13.3,16.3,16.53,16.3,10.77,15.16666667,13.98
Bandwagon Effect,"The bandwagon effect is a psychological phenomenon in which people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override. This tendency of people to align their beliefs and behaviors with those of a group is also called a herd mentality. The term ""bandwagon effect"" originates from politics but has wide implications commonly seen in consumer behavior and investment activities. This phenomenon can be seen during bull markets and the growth of asset bubbles.",investopedia,1,41.7,12.7,14.9,13.05,14.1,9.75,14.75,15.54
Bank,"A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks. In most countries, banks are regulated by the national government or central bank.",investopedia,1,47.99,10.2,13.8,14.2,12.7,9.72,10.875,12.7
Bank Bill Swap Rate (BBSW),"The Bank Bill Swap Rate (BBSW), or Bank Bill Swap Reference Rate, is a short-term interest rate used as a benchmark for the pricing of Australian dollar derivatives and securities—most notably, floating rate bonds.",investopedia,1,45.43,15.4,0,13.18,20.8,10.9,21,18.31
Bank Capital,"Bank capital is the difference between a bank's assets and its liabilities, and it represents the net worth of the bank or its equity value to investors. The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). The liabilities section of a bank's capital includes loan-loss reserves and any debt it owes. A bank's capital can be thought of as the margin to which creditors are covered if the bank would liquidate its assets.",investopedia,1,49.65,11.7,14.2,11.37,13.8,9.66,14.5,11.86
Bank Confirmation Letter (BCL),"A bank confirmation letter (BCL) is a letter from a bank or financial institution confirming the existence of a loan or a line of credit that has been extended to a borrower. The letter officially vouches for the fact that the borrower—typically an individual, company, or organization—is eligible to borrow a specified amount of funds for a specified purpose.",investopedia,1,24.61,17.2,0,12.49,17.5,9.92,22.25,20.61
Bank Credit,"The term bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit, therefore, is the total amount of money a person or business can borrow from a bank or other financial institution. A borrower's bank credit depends on their ability to repay any loans and the total amount of credit available to lend by the banking institution. Types of bank credit include car loans, personal loans, and mortgages.",investopedia,1,58.82,10.2,11.2,10.15,11.7,7.9,12.375,11.21
Bank Deposits,"Bank deposits consist of money placed into banking institutions for safekeeping. These deposits are made to deposit accounts such as savings accounts, checking accounts, and money market accounts. The account holder has the right to withdraw deposited funds, as set forth in the terms and conditions governing the account agreement.",investopedia,1,54.52,9.8,10.5,14.56,13.6,9.2,9,10.68
Bank Identification Number,"The term bank identification number (BIN) refers to the initial set of four to six numbers that appear on a payment card. This set of numbers identifies the institution that issues the card and is key in the process of matching transactions to the issuer of the charge card. The numbering system applies to credit cards, charge cards, prepaid cards, gift cards, debit cards, prepaid cards, and electronic benefit cards.",investopedia,1,56.29,11.2,11.9,11.09,13.8,9.3,14,13.32
What Is a Bank Rating?,"The term bank rating refers to a letter grade or numerical ranking assigned to certain financial institutions by the Federal Deposit Insurance Corporation (FDIC) and credit rating agencies. Bank ratings are given to banks and other thrift institutions. Grades are assigned in order to provide the public with information about an organization's safety and soundness. They also help bank leaders identify problems within their institution, if any, that need to be addressed. Many agencies and companies use a proprietary formula to determine ratings while others use the CAMELS system to assess these financial institutions.",investopedia,1,35.47,13,13.7,14.79,14.5,10.45,12.8,13.48
Bank Reserve,Bank reserves are the cash minimums that financial institutions must have on hand in order to meet central bank requirements. This is real paper money that must be kept by the bank in a vault on-site or held in its account at the central bank. Cash reserves requirements are intended to ensure that every bank can meet any large and unexpected demand for withdrawals.,investopedia,1,58.32,10.4,11.9,9.92,11.6,7.9,13,12.27
Bank Statement,"A bank statement is a document (also known as an account statement) that is typically sent by the bank to the account holder every month, summarizing all the transactions of an account during the month. Bank statements contain bank account information, such as account numbers and a detailed list of deposits and withdrawals.",investopedia,1,44.58,13.6,0,12.25,16.1,8.53,15.75,14.37
Bank Stress Test,"A bank stress test is an analysis conducted under hypothetical scenarios designed to determine whether a bank has enough capital to withstand a negative economic shock. These scenarios include unfavorable situations, such as a deep recession or a financial market crash. In the United States, banks with $50 billion or more in assets are required to undergo internal stress tests conducted by their own risk management teams and the Federal Reserve.",investopedia,1,38.96,13.7,17.1,13.47,15.6,11.26,17.83333333,17.93
Bank Draft,"The term bank draft refers to a negotiable instrument that can be used as payment just like a check. Unlike a check, though, a bank draft is guaranteed by the issuing bank. The total amount of the draft is drawn from the requesting payer's account—their bank account balance decreases by the money withdrawn from the account—and is usually held in a general ledger account until the draft is cashed by the payee. Bank drafts provide the payee with a secure form of payment.",investopedia,1,67.28,9,12.2,9.69,11.2,8.66,12.875,11.69
Bank-Owned Life Insurance (BOLI),Bank-owned life insurance (BOLI) is a form of life insurance purchased by banks where the bank is the beneficiary and also usually the owner of the policy.,investopedia,1,44.07,13.8,0,9.87,14.6,9.65,18.5,16.73
Banker's Acceptance,"Banker's acceptance (BA) is a negotiable piece of paper that functions like a post-dated check. A bank, rather than an account holder, guarantees the payment. Banker's acceptances (also known as bills of exchange) are used by companies as a relatively safe form of payment for large transactions. BAs can also be short-term debt instruments, similar to U.S. Treasury bills, that trade at a discount to face value in the money markets.",investopedia,1,65.52,7.6,11.2,10.37,9.8,9.01,8.1,10.75
Bank Guarantee,"A bank guarantee is a type of financial backstop offered by a lending institution. The bank guarantee means that the lender will ensure that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down a loan.",investopedia,1,71.65,7.4,10.1,7.71,8,8.52,8.75,9.02
Bank Reconciliation,"A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records. The statement outlines the deposits, withdrawals, and other activities affecting a bank account for a specific period. A bank reconciliation statement is a useful financial internal control tool used to thwart fraud.",investopedia,1,27.83,13.9,15,15.19,14.6,10.38,13.33333333,15.35
Bank Run,A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency.,investopedia,1,35.61,15,0,13.12,16.8,10.82,17.5,16.73
Bankruptcy,"Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.",investopedia,1,47.46,14.6,0,10.69,17.4,10.4,13.66666667,17.18
Banner Advertising,"Banner advertising refers to the use of a rectangular graphic display that stretches across the top, bottom, or sides of a website or online media property. The horizontal type of banner advertisement is called a leaderboard, while the vertical banners are called a skyscraper and are positioned on a web page's sidebars. Banner ads are image-based rather than text-based and are a popular form of online advertising.",investopedia,1,48.84,12,13.6,12.71,14.5,11.34,14.5,13.7
Baptism by Fire,Baptism by fire is a phrase commonly used to describe a person or employee who is learning something the hard way through a challenge or difficulty.,investopedia,1,53.55,12.3,0,10.22,13.8,9.18,16,15.02
Barbell,"The barbell is an investment strategy applicable primarily to a fixed income portfolio. Following a barbell method, half the portfolio contains long-term bonds and the other half holds short-term bonds. The “barbell” gets its name because the investment strategy looks like a barbell with bonds heavily weighted at both ends of the maturity timeline. The graph will show a large number of short-term holdings and long-term maturities, but little or nothing in intermediate holdings.",investopedia,1,44.24,11.7,13.8,13.98,13.9,9.25,12.75,12.26
Bar Chart,"Bar charts consist of multiple price bars, with each bar illustrating how the price of an asset or security moved over a specified time period. Each bar typically shows open, high, low, and closing (OHLC) prices, although this may be adjusted to show only the high, low, and close (HLC).",investopedia,1,63.02,10.7,0,9.12,13.5,10.56,16,15.6
Bare Trust,"A bare trust is a basic trust in which the beneficiary has the absolute right to the capital and assets within the trust, as well as the income generated from these assets.",investopedia,1,47.46,14.6,0,8.48,15.3,8.18,20,16.55
Barrel Of Oil Equivalent (BOE),"A barrel of oil equivalent (BOE) is a term used to summarize the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil. By encompassing different types of energy resources into one figure, analysts, investors, and management can assess the total amount of energy the firm can access. This is also known as crude oil equivalent (COE).",investopedia,1,57.91,10.6,14.6,9.11,11.6,8.6,14.83333333,12.37
Barrels Of Oil Equivalent Per Day (BOE/D),"Barrels of oil equivalent per day (BOE/D) is a term that is used often in conjunction with the production or distribution of crude oil and natural gas. Many oil companies produce both of these commodities, but the unit of measure for each is different. Oil is measured in barrels and natural gas is measured in cubic feet. To help facilitate like-for-like comparisons, the industry standardized natural gas production into ""equivalent barrels"" of oil. One barrel of oil is generally deemed to have the same amount of energy content as 6,000 cubic feet of natural gas. So this quantity of natural gas is ""equivalent"" to one barrel of oil.",investopedia,1,53.21,10.3,14.3,9.92,10.7,8.48,12,12.39
Base Effect,"The base effect is the effect that choosing a different reference point for a comparison between two data points can have on the result of the comparison. This often involves the use of some kind of ratio or index value between two points in a time-series data set, but can also apply to cross-sectional or other types of data.",investopedia,1,49.99,13.6,0,9.24,14.8,8.85,17.25,13.83
Base Pay,"Base pay is the initial salary paid to an employee, not including any benefits, bonuses, or raises. It is the rate of compensation an employee receives in exchange for services. An employee's base pay can be expressed as an hourly rate, or as a weekly, monthly, or annual salary.",investopedia,1,63.39,8.5,11.9,8.58,8.9,9.6,10.5,11.42
Base Year,"A base year is the first of a series of years in an economic or financial index. It is typically set to an arbitrary level of 100. New, up-to-date base years are periodically introduced to keep data current in a particular index. Any year can serve as a base year, but analysts typically choose recent years.",investopedia,1,57.27,8.8,12.2,7.53,6.9,8.56,8.5,11.31
Basel I,"Basel I is a set of international banking regulations put forth by the Basel Committee on Bank Supervision (BCBS) that sets out the minimum capital requirements of financial institutions with the goal of minimizing credit risk. Banks that operate internationally are required to maintain a minimum amount (8%) of capital based on a percent of risk-weighted assets. Basel I is the first of three sets of regulations known individually as Basel I, II, and III, and together as the Basel Accords.",investopedia,1,35.61,15,16.7,11.73,16.1,10.63,19.16666667,16.73
Basel II,"Basel II is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which leveled the international regulation field with uniform rules and guidelines. Basel II expanded rules for minimum capital requirements established under Basel I, the first international regulatory accord, and provided the framework for regulatory review, as well as set disclosure requirements for assessment of capital adequacy of banks. The main difference between Basel II and Basel I is that Basel II incorporates credit risk of assets held by financial institutions to determine regulatory capital ratios.",investopedia,1,14.63,18.9,20.3,16.14,21.1,10.61,24.5,20.14
Basel III,"Basel III is a 2009 international regulatory accord that introduced a set of reforms designed to mitigate risk within the international banking sector, by requiring banks to maintain proper leverage ratios and keep certain levels of reserve capital on hand.",investopedia,1,13.96,21.3,0,14.63,24.2,13.91,27,21
Baseline,"A baseline is a fixed point of reference that is used for comparison purposes. In business, the success of a project or product is often measured against a baseline number for costs, sales, or any number of other variables. A project may exceed a baseline number or fail to meet it.",investopedia,1,71.14,7.6,8.8,8.12,8.5,8.5,8.5,9.15
Basic Earnings Per Share (EPS),Basic earnings per share (EPS) tells investors how much of a firm's net income was allotted to each share of common stock. It is reported in a company's income statement and is especially informative for businesses with only common stock in their capital structures.,investopedia,1,49.15,11.9,0,11.31,13.4,10.47,14.5,14.25
Basic Materials,"The basic materials sector is an industry category made up of businesses engaged in the discovery, development, and processing of raw materials. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products.",investopedia,1,18.86,15.2,0,16.13,15.7,11.81,14.75,18.21
Basis Point (BPS),"Basis points (BPS) refers to a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument. The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points and 0.01% = 1 basis point. Basis points are typically expressed in the abbreviations ""bp,"" ""bps,"" or ""bips.""",investopedia,1,60.14,9.7,12.2,9.69,11.9,10.68,12.5,12.42
Basket of Goods,"A basket of goods refers to a fixed set of consumer products and services whose price is evaluated on a regular basis, often monthly or annually. This basket is used to track inflation in a specific market or country, so that if the price of the basket of goods increases by 2% in a year, inflation can thus be said to be 2%. The goods in the basket are meant to be representative of the broader economy and are adjusted periodically to account for changes in consumer habits.",investopedia,1,50.2,13.5,14.1,8.43,14.1,9.04,18.33333333,16.27
Basket Trade,"A basket trade is an order to buy or sell a group of securities simultaneously. Basket trading is essential for institutional investors and investment funds that wish to hold a large number of securities in certain proportions. As cash moves in and out of the fund, large baskets of securities must be bought or sold simultaneously, so that price movements for each security do not alter the portfolio allocation.",investopedia,1,28,17.9,0,11.96,19.4,9.24,15.5,19.02
BAT Stocks,"BAT is an acronym referring to Baidu Inc. (BIDU), Alibaba Group Holding Ltd. (BABA) and Tencent Holdings Ltd. (0700.Hong Kong, TCEHY), three large Chinese internet stocks often likened to Alphabet Inc. (GOOG) subsidiary Google, Amazon.com Inc. (AMZN) and Facebook Inc. (FB). The BATs are often compared to the FANGs—or variations—which comprise Facebook, Amazon, Netflix Inc. (NFLX) and Alphabet.",investopedia,1,50.5,13.4,0,14.28,20.8,14.6,18,15.05
Batch Processing,"Batch processing is the processing of transactions in a group or batch. No user interaction is required once batch processing is underway. This differentiates batch processing from transaction processing, which involves processing transactions one at a time and requires user interaction.",investopedia,1,32.19,12.2,15,16.81,14,8.17,11.16666667,11.33
Baye's Theorem,"Bayes' theorem, named after 18th-century British mathematician Thomas Bayes, is a mathematical formula for determining conditional probability. Conditional probability is the likelihood of an outcome occurring, based on a previous outcome occurring. Bayes' theorem provides a way to revise existing predictions or theories (update probabilities) given new or additional evidence. In finance, Bayes' theorem can be used to rate the risk of lending money to potential borrowers.",investopedia,1,6.54,17.9,19.3,17.47,18.7,12.52,14.375,20.26
BCG Growth-Share Matrix,"The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.",investopedia,1,32.91,18.1,0,12.02,21.6,11.34,24,19.41
Benefit-Cost Ratio,"A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall relationship between the relative costs and benefits of a proposed project. BCR can be expressed in monetary or qualitative terms. If a project has a BCR greater than 1.0, the project is expected to deliver a positive net present value to a firm and its investors.",investopedia,1,50.46,11.4,14.6,9.75,11.6,10.78,14.33333333,15.38
Beacon (Pinnacle) Score,"The Beacon Score, which has since transitioned to the Pinnacle Score, is a credit score generated by the Equifax Credit Bureau to provide lenders with insight on an individual's creditworthiness. Beacon Scores are credit scores, which are determined through a complex algorithm. These numbers give the lender insight on a borrower’s credit history and potential ability to be able to repay the debt for which they are applying.",investopedia,1,48.43,12.1,14.6,13.12,14.8,10.1,15.33333333,15.55
Bear Call Spread,"A bear call spread, or a bear call credit spread, is a type of options strategy used when an options trader expects a decline in the price of the underlying asset. A bear call spread is achieved by purchasing call options at a specific strike price while also selling the same number of calls with the same expiration date, but at a lower strike price. The maximum profit to be gained using this strategy is equal to the credit received when initiating the trade.",investopedia,1,59.98,11.8,12.5,8.83,13.9,9.35,16.66666667,14.53
Bear Hug,"In business, a bear hug is an offer made by one company to buy the shares of another for a much higher per-share price than what that company is worth in the market. It's an acquisition strategy that companies sometimes use when there's doubt that the target company's management or shareholders are willing to sell.",investopedia,1,52.02,12.8,0,9.93,14.7,8.45,18.25,15.36
Bear Market,A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.,investopedia,1,45.76,11.1,0,14.5,13.5,12.37,11.5,13.86
Bear Put Spread,"A bear put spread is a type of options strategy where an investor or trader expects a moderate-to-large decline in the price of a security or asset and wants to reduce the cost of holding the option trade. A bear put spread is achieved by purchasing put options while also selling the same number of puts on the same asset with the same expiration date at a lower strike price. The maximum profit using this strategy is equal to the difference between the two strike prices, minus the net cost of the options.",investopedia,1,56.93,13,12.5,8.95,15.2,9.59,18.16666667,14.98
Bearer Share,"A bearer share is equity security wholly owned by the person or entity that holds the physical stock certificate, thus the name ""bearer"" share. The issuing firm neither registers the owner of the stock nor tracks transfers of ownership; the company disperses dividends to bearer shares when a physical coupon is presented to the firm. Because the share is not registered to any authority, transferring the ownership of the stock involves only delivering the physical document.",investopedia,1,24.45,19.3,0,13.36,22.5,11.13,19.33333333,23.62
Bear Stearns,Bear Stearns was a global investment bank located in New York City that collapsed during the 2008 financial crisis. The bank was heavily exposed to mortgage-backed securities that turned into toxic assets when the underlying loans began to default. Bear Stears was ultimately sold to JPMorgan Chase at a fraction of its pre-crisis value.,investopedia,1,53.21,10.3,13.6,12.41,12.3,11.84,12.33333333,13.13
Bear Trap,"Investing is a tricky endeavor, and there are many tricks and traps that the uninitiated can fall into. The bear trap is one of them. A bear trap is a technical pattern that occurs when the performance of a stock, index, or other financial instrument incorrectly signals a reversal of a rising price trend.",investopedia,1,61.67,9.1,13,9.16,9.8,9.5,12,13.87
Bearer Bond,"A bearer bond is a fixed-income security that is owned by the holder, or bearer, rather than by a registered owner. The coupons for interest payments are physically attached to the security. The bondholder is required to submit the coupons to a bank for payment and then redeem the physical certificate when the bond reaches the maturity date.",investopedia,1,51.89,10.8,13.6,10.73,11.5,9.77,13,13.24
Bearish Engulfing Pattern,"A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or ""engulfs"" the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle).",investopedia,1,54.26,12,11.9,10.62,14.5,8.63,15,12.23
Behavioral Economics,Behavioral Economics is the study of psychology as it relates to the economic decision-making processes of individuals and institutions. The two most important questions in this field are:,investopedia,1,31.89,12.3,0,14.84,12.7,9.97,11.5,17.03
Behavioral Finance,"Behavioral finance, a subfield of behavioral economics, proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. Moreover, influences and biases can be the source for explanation of all types of market anomalies and specifically market anomalies in the stock market, such as severe rises or falls in stock price.",investopedia,1,18.18,17.6,0,16.54,20.1,11.32,21.25,19
Bell Curve,"A bell curve is a common type of distribution for a variable, also known as the normal distribution. The term ""bell curve"" originates from the fact that the graph used to depict a normal distribution consists of a symmetrical bell-shaped curve.",investopedia,1,59.13,10.1,0,10.73,12.3,8.89,12.75,11.13
Below-the-Line Advertising,"Below-the-line advertising is an advertising strategy where products are promoted in media other than mainstream radio, television, billboards, print, and film formats. The main types of below-the-line advertising systems include direct mail campaigns, social media marketing, trade shows, catalogs, and targeted search engine marketing. Below-the-line advertising methods tend to be less expensive and more focused versus above-the-line strategies.",investopedia,1,26.51,14.4,15.9,20.25,20.2,11.4,14.66666667,13.24
Ben Bernanke Biography,"Ben Bernanke was the chair of the board of governors of the U.S. Federal Reserve from 2006 to 2014. Bernanke took over the helm from Alan Greenspan on February 1, 2006, ending Greenspan's 18-year leadership at the Fed. A former Fed governor, Bernanke was chair of the U.S. President's Council of Economic Advisors prior to being nominated as Greenspan's successor in late 2005.",investopedia,1,75.61,5.8,11.2,9.56,8.4,10.78,7.3,10.75
Benchmark,"A benchmark is a standard against which the performance of a security, mutual fund, or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose. It's an element of a Sigma Six black belt.",investopedia,1,56.96,8.9,13,10.72,9.9,9.85,10.16666667,12.23
Beneficial Owner,A beneficial owner is a person who enjoys the benefits of ownership even though the title to some form of property is in another name.,investopedia,1,46.1,13,0,8.3,11.8,8.03,17.5,16.4
Beneficiary,"A beneficiary is any person who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will, or life insurance policy. Beneficiaries are either named specifically in these documents or have met the stipulations that make them eligible for whatever distribution is specified.",investopedia,1,26.81,14.2,16.7,15.26,15.1,9.84,15.16666667,18.13
Benjamin Graham,"Benjamin Graham was an influential investor whose research in securities laid the groundwork for in-depth fundamental valuation used in stock analysis today by all market participants. His famous book, The Intelligent Investor, has gained recognition as the foundational work in value investing.",investopedia,1,24.78,15,0,17.23,17.7,11.45,15.5,17.92
Berhad (BHD),"BHD is a suffix for Berhad, which is used in Malaysia to identify a public limited company. Berhad, BHD, or Bhd after a company’s name indicates that it is a Malaysian public limited company (PLC) while the extended suffix Sendirian Berhad (SDN BHD) denotes that it is a private limited company.",investopedia,1,54.05,12.1,0,10.33,14.3,9.55,17.75,14.12
Berkshire Hathaway,"Berkshire Hathaway is a holding company for a multitude of businesses, including GEICO and Fruit of the Loom. It's run by chair and CEO Warren Buffett. Berkshire Hathaway is headquartered in Omaha, Neb., and was originally a company comprised of a group of textile milling plants.",investopedia,1,55.95,9.3,12.5,10.72,10.3,10.92,10.33333333,11.34
Bermuda Option,A Bermuda option is a type of exotic options contract that can only be exercised on predetermined dates—often on one day each month.,investopedia,1,56.59,11.1,0,11.03,13,10.96,14.5,14.42
Bernie Madoff,"Bernard Lawrence ""Bernie"" Madoff was an American financier who executed the largest Ponzi scheme in history, defrauding thousands of investors out of tens of billions of dollars over the course of at least 17 years, and possibly longer. He was also a pioneer in electronic trading and chair of the Nasdaq in the early 1990s. He died in prison on April 14, 2021 while serving a 150-year sentence for money laundering, securities fraud and several other felonies.",investopedia,1,53.85,12.1,13.6,11.26,15,11.47,16.16666667,13.92
Bespoke CDO,"A bespoke CDO is a structured financial product—specifically, a collateralized debt obligation (CDO)—that a dealer creates for a specific group of investors and tailors to their needs. The investor group typically buys a single tranche of the bespoke CDO, and the remaining tranches are then held by the dealer, who will usually attempt to hedge against potential losses using other financial products like credit derivatives.",investopedia,1,30.03,17.1,0,14.98,21.1,12.54,21.75,19.15
Best Alternative to a Negotiated Agreement (BATNA),"The best alternative to a negotiated agreement (BATNA) is the course of action that a party engaged in negotiations will take if talks fail, and no agreement can be reached. Negotiation researchers Roger Fisher and William Ury coined the term BATNA in their 1981 bestseller ""Getting to Yes: Negotiating Agreement Without Giving In."" A party's BATNA refers to what a party can fall back on if a negotiation proves unsuccessful.",investopedia,1,47.83,12.4,11.9,11.78,14.3,9.98,14,12.75
Best Endeavors,"Best endeavors is a phrase commonly found in commercial contracts that places an obligation on the identified party to use all efforts necessary to fulfill the terms set out. A best endeavors policy places a party under a stricter obligation compared to a reasonable endeavors obligation. It is equivalent to best efforts, a term widely used in securities markets and preferred in most commercial contracts signed in the United States.",investopedia,1,47.83,12.4,15.9,13.12,14.9,9.75,16.66666667,15.03
Best Practices,"Best practices are a set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action in a given business situation. Best practices may be established by authorities, such as regulators or governing bodies, or they may be internally decreed by a company's management team.",investopedia,1,38.15,14,0,12.6,15.5,10.33,17.25,17.96
Bicameral System,"A bicameral system describes a government that has a two-house legislative system, such as the House of Representatives and the Senate that make up the U.S. Congress. The word bicameral is derived from the Latin: ""bi"" (meaning two) and ""camera"" (meaning chamber). The British Parliament, a bicameral system, has been the model for most parliamentary systems around the world. The first instance of British bicameralism occurred in 1341. When the Commons met separately from the nobility and clergy for the first time, an Upper Chamber and a Lower Chamber was effectively created. The U.S. adopted a bicameral system after its founding.",investopedia,1,54.42,9.8,11.9,12.24,12.3,9.63,10.66666667,10.68
Bid,"The term bid refers to an offer made by an individual or corporation to purchase an asset. Buyers commonly make bids at auctions and in various markets, such as the stock market. Bids may also be made by companies that compete for project contracts. When a buyer makes a bid, they stipulate how much they're willing to pay for the asset along with how much they are willing to purchase.",investopedia,1,70.63,7.8,10.1,8.12,8.7,8.56,10.25,10.43
Bid and Ask,The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs when a buyer in the market is willing to pay the best offer available—or is willing to sell at the highest bid.,investopedia,1,61.7,11.2,12.6,7.38,11.8,7.05,15.25,13.57
Bid Bond,A bid bond guarantees compensation to the bond owner if the bidder fails to begin a project. Bid bonds are often used for construction jobs or other projects with similar bid-based selection processes.,investopedia,1,54.73,9.7,0,11.6,10.9,11.15,11.25,13.87
Bid Size,"The bid size represents the quantity of a security that investors are willing to purchase at a specified bid price. For most investors, who view level 1 quotes on their trading screens, the bid size represents the amount of shares that investors are willing to purchase at the best available bid price.",investopedia,1,62.01,11.1,0,10.57,14.3,8.57,15.5,13.48
Big Data,"Big data refers to the large, diverse sets of information that grow at ever-increasing rates. It encompasses the volume of information, the velocity or speed at which it is created and collected, and the variety or scope of the data points being covered (known as the ""three v's"" of big data). Big data often comes from data mining and arrives in multiple formats.",investopedia,1,50.16,11.5,13,9.52,11.7,10.19,13.5,13.48
Bilateral Contract,"A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Typically, bilateral contracts involve an equal obligation or consideration from the offeror and the offeree, although this need not always be the case.",investopedia,1,40.69,13.1,0,12.53,14.2,10.11,14.5,14.25
Bilateral Trade,"Bilateral trade is the exchange of goods between two nations promoting trade and investment. The two countries will reduce or eliminate tariffs, import quotas, export restraints, and other trade barriers to encourage trade and investment.",investopedia,1,45.25,11.3,0,15.54,14.9,10.82,12.25,13.86
Bill Auction,"A bill auction is a public auction, held weekly by the U.S. Treasury, of federal debt obligations—specifically, Treasury bills (T-bills), whose maturies range from one month to one year. As of May 2021, there are 24 authorized primary dealers who are required to participate in the auction, and bid directly upon each issue. A bill auction is the official manner in which all U.S. Treasury bills are issued.",investopedia,1,66.13,7.4,9.9,9.74,8.9,10.12,7.2,10.15
Bills of Materials (BOM),"A bill of materials (BOM) is an extensive list of raw materials, components, and instructions required to construct, manufacture, or repair a product or service. A bill of materials usually appears in a hierarchical format, with the highest level displaying the finished product and the bottom level showing individual components and materials.",investopedia,1,19.71,17,0,14.8,18.2,10.39,19.5,17.32
Billing Cycle,"A billing cycle is the interval of time from the end of one billing statement date to the next billing statement date for goods or services a company provides to another company or consumer on a recurring basis. Although billing cycles are most often set on a monthly basis, they can vary in length depending on the type of product or service rendered.",investopedia,1,56.42,13.2,0,9.76,16,9.46,18.75,14.5
Bill of Exchange,A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. Bills of exchange are similar to checks and promissory notes—they can be drawn by individuals or banks and are generally transferable by endorsements.,investopedia,1,42.55,14.4,0,10.68,15.5,9.76,19.25,17.72
Bill of Lading,"A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination. This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.",investopedia,1,45.39,13.3,15.9,11.2,14.8,10.24,17.83333333,15.99
Binance Coin (BNB),Binance Coin is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. Binance coin initially ran on the Ethereum blockchain with ERC 20 standard but has since become the native coin of the Binance chain.,investopedia,1,69.11,8.3,0,11.55,11.8,9.98,10.5,9.71
Binomial Distribution,"The binomial distribution is a probability distribution that summarizes the likelihood that a value will take one of two independent values under a given set of parameters or assumptions. The underlying assumptions of the binomial distribution are that there is only one outcome for each trial, that each trial has the same probability of success, and that each trial is mutually exclusive, or independent of each other.",investopedia,1,12.09,19.9,0,13.53,20.2,8.83,25.25,19.97
Binomial Option Pricing,"The binomial option pricing model is an options valuation method developed in 1979. The binomial option pricing model uses an iterative procedure, allowing for the specification of nodes, or points in time, during the time span between the valuation date and the option's expiration date.",investopedia,1,23.26,15.6,0,13.7,15.3,11.42,16.25,16.11
Bioremediation,"Bioremediation is a branch of biotechnology that employs the use of living organisms, like microbes and bacteria, in the removal of contaminants, pollutants, and toxins from soil, water, and other environments. Bioremediation may be used to clean up contaminated groundwater or environmental problems, such as oil spills.",investopedia,1,22.24,16,0,15.84,17.9,10.18,17.25,17.91
Bird In Hand,"The bird in hand is a theory that says investors prefer dividends from stock investing to potential capital gains because of the inherent uncertainty associated with capital gains. Based on the adage, ""a bird in the hand is worth two in the bush,"" the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains.",investopedia,1,30.54,17,0,13.12,19.4,10.16,23.5,19.68
Bitcoin,"Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.",investopedia,1,29.86,13.1,14.6,14.15,12.9,11.58,12,14.53
Bitcoin Cash,"Bitcoin cash is a cryptocurrency created in August 2017, from a fork of Bitcoin. Bitcoin Cash increased the size of blocks, allowing more transactions to be processed and improving scalability.",investopedia,1,32.57,16.2,0,14.63,19.6,10.91,21,20
Bitcoin Mining,"Chances are you hear the phrase “bitcoin mining” and your mind begins to wander to the Western fantasy of pickaxes, dirt and striking it rich. As it turns out, that analogy isn’t too far off.",investopedia,1,70.63,7.8,0,7.77,8.5,9.92,10.25,10.43
Bitcoin Misery Index,"The Bitcoin Misery Index (BMI) is a heuristic measure of the momentum of bitcoin. The BMI was created in 2018 by Tom Lee. The BMI ranges from 0 to 100 and uses contrarian economic indicators, incorporating several different market factors, such as price, winning trades percent, and volatility.",investopedia,1,46.78,10.7,13,11.42,11,12,11,12.23
Bitcoin Wallet,"A Bitcoin wallet is a software program in which Bitcoins are stored. Technically, Bitcoins are not stored anywhere. For every individual who has a balance in a Bitcoin wallet, there is a private key (secret number) corresponding to the Bitcoin address of that wallet. Bitcoin wallets facilitate the sending and receiving of Bitcoins and give ownership of the Bitcoin balance to the user. The Bitcoin wallet comes in many forms. The four main types are desktop, mobile, web, and hardware.",investopedia,1,55.24,9.5,9.4,11.13,10.6,8.97,6.666666667,9.4
Black Money,"Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Black money proceeds are usually received in cash from underground economic activity and, as such, are not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through money laundering.",investopedia,1,41.4,12.8,15.5,12.71,14.1,9.63,15.33333333,15.4
Black Box Model,"A black box model, or more specifically a black box financial model, is a catch-all term used to describe a computer program designed to transform various data into useful investment strategies.",investopedia,1,31.55,16.6,0,13.24,19,10.78,20.5,18.85
Black Friday,"Black Friday refers to the day after the U.S. Thanksgiving holiday, which has also traditionally been a holiday itself for many employees. It is typically a day full of special shopping deals and heavy discounts and is considered the beginning of the holiday shopping season. In history, Black Friday was a stock market catastrophe that took place on September 24, 1869. On that day, after a period of rampant speculation, the price of gold plummeted, and the markets crashed.",investopedia,1,55.44,9.5,13,10.9,10.3,8.22,10.9,10.37
Black Market,"A black market is an economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur “under the table” to let participants avoid government price controls or taxes. The goods and services offered in a black market can be illegal, meaning their purchase and sale are prohibited by law, or they can be legal but transacted to avoid taxes.",investopedia,1,50.87,11.2,13.6,13.23,14,9.82,13.5,13.37
Black Monday,"Black Monday occurred on Oct. 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. The event marked the beginning of a global stock market decline, and Black Monday became one of the most notorious days in financial history. By the end of the month, most of the major exchanges had dropped more than 20%.",investopedia,1,67.79,8.8,11.2,8.41,10.5,9.82,12.16666667,10.74
Black Scholes Model,"The Black-Scholes model, also known as the Black-Scholes-Merton (BSM) model, is a mathematical model for pricing an options contract. In particular, the model estimates the variation over time of financial instruments.",investopedia,1,38.82,11.7,0,15.72,14.9,11.03,11.25,13.94
Black Swan,"A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight.",investopedia,1,41.7,12.7,0,14.21,15.1,11.45,15.5,17.92
Black Tuesday,"Black Tuesday was Oct. 29, 1929, and it was marked by a sharp fall in the stock market, with the Dow Jones Industrial Average (DJIA) especially hard hit in high trading volume. The DJIA fell 12%, one of the largest one-day drops in stock market history. More than 16 million shares were traded in the panic sell-off, which effectively ended the Roaring Twenties and led the global economy into the Great Depression.",investopedia,1,64.04,10.3,11.9,9.7,13.1,10.53,14.33333333,12.93
Blended Rate,"A blended rate is an interest rate charged on a loan that represents the combination of a previous rate and a new rate. Blended rates are usually offered through the refinancing of existing loans that are charged a rate of interest that is higher than the old loan's rate, but lower than the rate on a brand-new loan.",investopedia,1,58.96,12.2,0,8.83,14.2,9.43,18.5,16.43
Blind Trust,"A blind trust is a trust established by the owner (or trustor) giving another party (the trustee) full control of the trust. The trustee has full discretion over the assets and investments while being charged with managing the assets and any income generated in the trust. The trustor can terminate the trust, but otherwise exercises no control over the actions taken within the trust and receives no reports from the trustees while the blind trust is in force. Blind trusts are often established in situations when individuals want to avoid conflicts of interest between their employment and investments.",investopedia,1,55.07,11.7,14.2,12.6,15.3,8.88,16,14.29
Block Trade,"A block trade is the sale or purchase of a large number of securities. A block trade involves a significantly large number of equities or bonds being traded at an arranged price between two parties. Block trades are sometimes done outside of the open markets to lessen the impact on the security's price. In general, a block trade involves at least 10,000 shares of stock, not including penny stocks, or $200,000 worth of bonds. In practice, block trades are much larger than 10,000 shares.",investopedia,1,71.34,7.5,9.4,9.57,9.8,8.61,8.6,9.1
Blockchain-as-a-Service (BaaS),"Blockchain-as-a-service (BaaS) is the third-party creation and management of cloud-based networks for companies in the business of building blockchain applications. These third-party services are a relatively new development in the growing field of blockchain technology. The application of blockchain technology has moved well beyond its best-known use in cryptocurrency transactions and has broadened to address secure transactions of all kinds. As a result, there is a demand for hosting services.",investopedia,1,45.25,11.3,13.4,16.99,16.3,9.92,12,12.14
Bloomberg,"Bloomberg is a major global provider of 24-hour financial news and information, including real-time and historic price data, financials data, trading news, and analyst coverage, as well as general news and sports. Its services, which span its own platform, television, radio, and magazines, offer professional analysis tools for financial professionals. One of Bloomberg's key revenue earners is the Bloomberg Terminal, which is an integrated platform that streams together price data, financials, news, and trading data to more than 300,000 customers worldwide.",investopedia,1,35.61,15,17.1,16.25,20.3,11.21,19.5,17.22
Bloomberg Terminal,"A Bloomberg terminal is a computer system that allows investors to access the Bloomberg data service, which provides real-time global financial data, news feeds, and messages. Investors can also use the Bloomberg terminal's trading system to facilitate the placement of financial transactions, such as stock and options trades. Bloomberg charges an annual subscription fee, with the price for the proprietary electronic trading system ranging from $20,000 to $24,000 per user per year.",investopedia,1,47.12,12.7,14.6,15.26,17.7,11.84,16,15.16
Blotter,"A blotter (or trade blotter) is a physical or digital record of all trades made over a period of time (usually one trading day) along with their relevant details. The details of a trade will include such things as the time, price, order size, and a specification of whether it was a buy or sell order. This serves as an audit trail of transactions and is helpful to review if a particular trading strategy utilized was successful.",investopedia,1,62.31,11,13.6,9.06,13.2,9.22,16.16666667,15.47
Blue Book,"The Blue Book or Kelley Blue Book is a guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models, and types. First published in 1926 by Los Angeles car dealer Les Kelley, the Blue Book was originally only available to those in the automotive industry, but both a consumer edition and an online edition was made available in the 1990s for the general public. The Blue Book provides a fair market range reflecting an estimated range of prices car buyers will pay for a specific car based on make, model, style, and year.",investopedia,1,54.19,14.1,13.6,9.76,17.4,10.47,20,17.04
Blue Chip,"A blue chip is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue-chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.",investopedia,1,37,12.4,15,16.12,15.5,11.17,13,16.92
Blue-Chip Stock,"A blue-chip stock is a huge company with an excellent reputation. These are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name. For all of these reasons, blue-chip stocks are among the most popular to buy among investors. Some examples of blue-chip stocks are IBM Corp., Coca-Cola Co. and Boeing Co.",investopedia,1,51.38,11,13.3,11.95,13.1,9.08,13.1,13.17
Blue Ocean,"Blue ocean is an entrepreneurship industry term created in 2005 to describe a new market with little competition or barriers standing in the way of innovators. The term refers to the vast ""empty ocean"" of market options and opportunities that occur when a new or unknown industry or innovation appears.",investopedia,1,37.64,14.2,0,11.9,14.9,9.61,17,16.4
Blue Sky Laws,"Blue sky laws are state regulations established as safeguards for investors against securities fraud. The laws, which may vary by state, typically require sellers of new issues to register their offerings and provide financial details of the deal and the entities involved. As a result, investors have a wealth of verifiable information on which to base their judgment and investment decisions.",investopedia,1,50.87,11.2,14.6,14.21,14.7,11.11,14.16666667,15.99
Board of Directors (B of D),A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors. This also applies to German GMBH companies.,investopedia,1,50.23,9.4,13.3,11.47,9.5,10.03,8.5,13.29
Board of Governors,"A board of governors is a group of people that oversees or manages the running of an institution. The US Postal Service, the BBC, the World Bank, numerous colleges and universities, as well as professional organizations—such as CFA Institute—and regulatory bodies, such as Financial Industry Regulatory Authority (FINRA), all have boards of governors.",investopedia,1,19.2,17.2,0,14.63,18.4,10.61,19.75,18.9
Board of Trustees,A board of trustees is an appointed or elected group of individuals that has overall responsibility for the management of an organization. The board of trustees is typically the governing body of an organization and seeks to ensure the best interest of stakeholders in all types of management decisions.,investopedia,1,29.69,15.2,0,12.94,15.3,10.01,18.25,17.96
Boil the Ocean,Boil the ocean is an idiomatic phrase that means to undertake an impossible task or project or to make a job or project unnecessarily difficult. The phrase appears in business as well as in other group settings and is considered to be a negative phrase in relation to how one approaches a task.,investopedia,1,53.04,12.4,0,9.29,13.3,8.53,17.75,16.64
What Is Boilerplate?,"The term boilerplate refers to standardized text, copy, documents, methods, or procedures that may be used over again without making major changes to the original. A boilerplate is commonly used for efficiency and to increase standardization in the structure and language of written or digital documents. This includes contracts, investment prospectuses, and bond indentures. In the field of contract law, documents contain boilerplate language, which is a language that is considered generic or standard in contracts.",investopedia,1,43.73,11.9,14.9,15.61,15.5,9.98,13.75,14.44
Boiler Room,"A boiler room is a place or operation—usually a call center—where high-pressure salespeople call lists of potential investors (""sucker lists"") to peddle speculative, sometimes fraudulent, securities. Sucker lists identify victims of previous scams.",investopedia,1,29.35,13.3,0,18.79,17.7,12.11,12.75,17.51
Bollinger Band®,"A Bollinger Band® is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences.",investopedia,1,22.42,20.1,0,12.49,23.1,11.94,29,25
Bombay Stock Exchange (BSE),"The Bombay Stock Exchange (BSE) is the first and largest securities market in India and was established in 1875 as the Native Share and Stock Brokers' Association. Based in Mumbai, India, the BSE lists close to 6,000 companies and is one of the largest exchanges in the world, along with the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange Group, Japan Exchange Group, and Shanghai Stock Exchange.",investopedia,1,53.89,14.2,0,11.38,19.4,10.66,19,15.95
Bond Covenant,A bond covenant is a legally binding term of agreement between a bond issuer and a bondholder. Bond covenants are designed to protect the interests of both parties. Negative or restrictive covenants forbid the issuer from undertaking certain activities; positive or affirmative covenants require the issuer to meet specific requirements.,investopedia,1,46.06,11,13.6,15.37,14,11.1,11.66666667,14.68
Bond Discount,"Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000.",investopedia,1,81.12,5.8,0,6.96,7.1,8.99,7.75,8.78
Bond Equivalent Yield (BEY),"In financial terms, the bond equivalent yield (BEY) is a metric that lets investors calculate the annual percentage yield for fixed-come securities, even if they are discounted short-term plays that only pay out on a monthly, quarterly, or semi-annual basis.",investopedia,1,22.42,20.1,0,13.65,24.4,13.52,29,24
Bond ETF,Bond exchange-traded funds (ETFs) are a type of exchange-traded fund (ETF) that exclusively invests in bonds. These are similar to bond mutual funds because they hold a portfolio of bonds with different particular strategies—from U.S. Treasuries to high yields—and holding period—between long-term and short-term.,investopedia,1,56.55,9,13,17.04,15.6,11.9,10.33333333,11.33
Bond Fund,"A bond fund, also referred to as a debt fund, is a pooled investment vehicle that invests primarily in bonds (government, municipal, corporate, convertible) and other debt instruments, like mortgage-backed securities (MBS). The primary goal of a bond fund is often that of generating monthly income for investors.",investopedia,1,30.2,15,0,13.58,16.7,12.06,18,17.93
Bond Futures,Bond futures are financial derivatives that obligate the contract holder to purchase or sell a bond on a specified date at a predetermined price. A bond futures contract trades on a futures exchange market and is bought or sold through a brokerage firm that offers futures trading. The terms (price and the expiration date) of the contract are decided at the time the future is purchased or sold.,investopedia,1,56.89,11,12.5,10.62,12.7,9.17,14,13.79
Bond Ladder,A bond ladder is a portfolio of fixed-income securities in which each security has a significantly different maturity date.,investopedia,1,9.89,16.6,0,14.16,14.1,10.4,16.5,18.13
Bond Market,"The bond market—often called the debt market, fixed-income market, or credit market—is the collective name given to all trades and issues of debt securities. Governments typically issue bonds in order to raise capital to pay down debts or fund infrastructural improvements.",investopedia,1,42.21,12.5,0,14.97,15.6,11.2,14.25,14.05
Bond Quote,"A bond quote is the last price at which a bond traded, expressed as a percentage of par value and converted to a point scale. Par value is generally set at 100, representing 100% of a bond's face value of $1,000. For example, if a corporate bond is quoted at 99, that means it is trading at 99% of face value. In this case, the cost to buy each bond is $990.",investopedia,1,78.59,6.8,10.1,4.35,6.4,8.92,10.5,10.53
Bond Rating,"A bond rating is a way to measure the creditworthiness of a bond, which corresponds to the cost of borrowing for an issuer. These ratings typically assign a letter grade to bonds that indicates their credit quality. Private independent rating services such as Standard & Poor's, Moody’s Investors Service, and Fitch Ratings Inc. evaluate a bond issuer's financial strength, or its ability to pay a bond's principal and interest, in a timely fashion.",investopedia,1,47.12,12.7,14.6,12.36,15.3,11.63,16.16666667,16.27
Bond Rating Agencies,Bond rating agencies are companies that assess the creditworthiness of both debt securities and their issuers. These agencies publish the ratings used by investment professionals to determine the likelihood that the debt will be repaid.,investopedia,1,45.25,11.3,0,15.54,14.5,11.72,12.25,15
Bond Valuation,"Bond valuation is a technique for determining the theoretical fair value of a particular bond. Bond valuation includes calculating the present value of a bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also known as its face value or par value.",investopedia,1,38.15,14,0,11.32,14.5,9.36,16.25,15.51
Bondholder,"A bondholder is an investor or the owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. In return, bond investors receive their principal—initial investment—back when the bonds mature. For most bonds, the bondholder also receives periodic interest payments.",investopedia,1,33.41,11.7,13,16.17,13.3,11.52,8.25,13.8
Bonus,"A bonus is a financial compensation that is above and beyond the normal payment expectations of its recipient. Companies may award bonuses to both entry-level employees and to senior-level executives. While bonuses are traditionally given to exceptional workers, employers sometimes dole out bonuses company-wide to stave off jealousy among staffers.",investopedia,1,29.14,13.3,15,16.53,15.3,11.41,12.66666667,14.68
Bonus Depreciation,"Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as machinery, rather than write them off over the ""useful life"" of that asset. Bonus depreciation is also known as the additional first year depreciation deduction.",investopedia,1,37.64,14.2,0,12.94,15.9,8.98,17.5,15.6
Bonus Issue,"A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. For example, a company may give one bonus share for every five shares held.",investopedia,1,45.05,11.4,14.1,10.21,10.5,8.69,12.5,13.87
Book Building,"Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered. An underwriter, normally an investment bank, builds a book by inviting institutional investors (such as fund managers and others) to submit bids for the number of shares and the price(s) they would be willing to pay for them.",investopedia,1,48.47,14.2,0,11.21,17.5,10.52,19,16.27
Book Runners,"The term book runner or a bookrunner refers to the primary underwriter or lead coordinator in the issuance of new equity, debt, or securities instruments. The book runner is the lead underwriting firm that runs or is in charge of the books in investment banking. Book runners may also coordinate with others in order to mitigate their risk such as those that represent companies in large, leveraged buyouts (LBOs).",investopedia,1,48.13,12.3,14.6,11.49,13.8,10.73,15.5,16.16
Book-to-Bill,"A book-to-bill ratio is the ratio of orders received to units shipped and billed for a specified period, generally a month or quarter. It is a widely used metric in the technology industry, specifically in the semiconductor equipment sector.",investopedia,1,43.22,12.1,0,12.01,12.9,11.49,13.75,14.98
Book-to-Market Ratio,"The book-to-market ratio is one indicator of a company's value. The ratio compares a firm's book value to its market value. A company's book value is calculated by looking at the company's historical cost, or accounting value. A firm's market value is determined by its share price in the stock market and the number of shares it has outstanding, which is its market capitalization.",investopedia,1,46.78,10.7,12.6,10.15,10,7.64,10.75,11.4
Book Value,"Book value is equal to the cost of carrying an asset on a company's balance sheet, and firms calculate it netting the asset against its accumulated depreciation. As a result, book value can also be thought of as the net asset value (NAV) of a company, calculated as its total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges, and so on.",investopedia,1,42.75,14.3,14.1,9.81,15.4,10.43,17.83333333,16.03
Book Value of Equity Per Share (BVPS),Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company's equity and measures the book value of a firm on a per-share basis.,investopedia,1,49.65,11.7,0,10.1,12.2,10.58,14.75,15.11
Book Value Per Common Share,"Book value per common share (or, simply book value per share - BVPS) is a method to calculate the per-share book value of a company based on common shareholders' equity in the company. The book value of a company is the difference between that company's total assets and total liabilities, and not its share price in the market.",investopedia,1,13.62,25.5,0,10.29,29.5,10.06,19,26.31
Bookie,"The term bookie is short or slang for ""bookmaker."" A bookie is someone who facilitates gambling, most commonly on sporting events. A bookie sets odds, accepts, and places bets, and pays out winnings on behalf of other people.",investopedia,1,75.5,5.9,8.8,9.44,8.5,10.91,6.333333333,8.24
Boom And Bust Cycle,The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle.,investopedia,1,44.75,11.5,0,12.41,12.2,9.79,12.5,14.98
Bootstrap,"Bootstrapping is building a company from the ground up with nothing but personal savings, and with luck, the cash coming in from the first sales. The term is also used as a noun: A bootstrap is a business an entrepreneur with little or no outside cash or other support launches.",investopedia,1,63.02,10.7,0,9,12.6,7.4,14.5,12.4
Borrowing Base,"A borrowing base is the amount of money that a lender is willing to loan a company, based on the value of the collateral the company pledges. The borrowing base is typically determined by a method known as ""margining,"" in which the lender determines a discount factor, which is then multiplied by the value of the collateral in question. The resulting numerical figure represents the amount of money a lender will loan out to the company.",investopedia,1,45.8,13.2,15.5,10.1,13.7,8.22,17.33333333,14.86
Both-to-Blame Collision Clause,"A both-to-blame collision clause is part of the ocean marine insurance policy that states that if a ship (vessel) collides with another ship due to the negligence of both, owners and shippers of both vessels must share in the losses in proportion with the monetary values of their cargo and interests before the collision. The owners of the cargo and company responsible for shipment are both required to pay for losses.",investopedia,1,43.9,16,0,11.44,19.6,9.62,23.75,18.71
Bottleneck,"A bottleneck is a point of congestion in a production system (such as an assembly line or a computer network) that occurs when workloads arrive too quickly for the production process to handle. The inefficiencies brought about by the bottleneck often creates delays and higher production costs. The term ""bottleneck"" refers to the typical shape of a bottle and the fact that the bottle's neck is the narrowest point, which is the most likely place for congestion to occur, slowing down the flow of liquid from the bottle.",investopedia,1,50.2,13.5,15,11.27,16.5,9.04,19,15.36
Bottom Line,"The bottom line refers to a company's earnings, profit, net income, or earnings per share (EPS). The reference to the bottom line describes the relative location of the net income figure on a company's income statement.",investopedia,1,53.21,10.3,0,10.61,11.6,9.35,11.5,11.64
Bottom-Up Investing,"Bottom-up investing is an investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles and market cycles. In bottom-up investing, the investor focuses his attention on a specific company and its fundamentals, rather than on the industry in which that company operates or on the greater economy as a whole. This approach assumes individual companies can do well even in an industry that is not performing, at least on a relative basis.",investopedia,1,27.86,15.9,18.9,13.47,17,9.74,20.83333333,18.62
Bounced Check,"A bounced check is slang for a check that cannot be processed because the account holder has nonsufficient funds (NSF) available for use. Banks return, or ""bounce"", these checks, also known as rubber checks, rather than honoring them, and banks charge the check writers NSF fees.",investopedia,1,73.51,8.7,0,11.15,14,8.9,12.5,10.94
Boundary Conditions,"Boundary conditions are the maximum and minimum values used to indicate where the price of an option must lie. Boundary conditions are used to estimate what an option may be priced at, but the actual price of the option may be higher or lower than what is set as the boundary condition.",investopedia,1,53.55,12.3,0,8.88,12.9,8.87,17,15.78
Brain Drain,"Brain drain is a slang term indicating substantial emigration or migration of individuals. A brain drain can result from turmoil within a nation, the existence of favorable professional opportunities in other countries, or from a desire to seek a higher standard of living. In addition to occurring geographically, brain drain may occur at the organizational or industrial levels when workers perceive better pay, benefits, or upward mobility within another company or industry.",investopedia,1,21.74,16.2,17.5,15.55,17.5,11.19,18.33333333,19.04
Branch Accounting,"Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization. Typically found in geographically dispersed corporations, multinationals, and chain operators, it allows for greater transparency in the transactions, cash flows, and overall financial position and performance of each branch.",investopedia,1,12.26,17.8,0,19.09,21,12.14,20.5,22
Branch Banking,Branch banking is the operation of storefront locations away from the institution's home office for the convenience of customers.,investopedia,1,43.73,11.9,0,16.01,15.6,10.4,13.5,16.02
Branch Manager,"A branch manager is an executive who is in charge of a particular location, or branch office, of a bank or other financial services company. Branch managers are typically responsible for all of the functions of that branch office, including hiring employees, overseeing the approval of loans and lines of credit (LOC), marketing, building a rapport with the community to attract business, assisting with customer relations, and ensuring that the branch meets its goals and objectives in a timely manner.",investopedia,1,22.42,20.1,0,13.18,23.5,11.54,28.5,23.5
Brand,"The term brand refers to a business and marketing concept that helps people identify a particular company, product, or individual. Brands are intangible, which means you can't actually touch or see them. As such, they help shape people's perceptions of companies, their products, or individuals. Brands often use identifying markers to help create brand identities within the marketplace. They provide enormous value to the company or individual, giving them a competitive edge over others in the same industry. As such, many entities often seek legal protection for their brands by obtaining trademarks.",investopedia,1,39.03,11.6,13.6,13.45,12.5,10.06,11,13.51
Brand Awareness,"Brand awareness is a marketing term that describes the degree of consumer recognition of a product by its name. Creating brand awareness is a key step in promoting a new product or reviving an older brand. Ideally, awareness of the brand may include the qualities that distinguish the product from its competition.",investopedia,1,53.92,10,13,11.31,11.1,9.66,11.66666667,13.84
Brand Equity,"Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.",investopedia,1,28.13,13.7,16.3,13.74,13.3,10.77,14.16666667,16.14
Brand Extension,"A brand extension is when a company uses one of its established brand names on a new product or new product category. It's sometimes known as brand stretching. The strategy behind a brand extension is to use the company's already established brand equity to help it launch its newest product. The company relies on the brand loyalty of its current customers, which it hopes will make them more receptive to new offerings from the same brand. If successful, a brand extension can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.",investopedia,1,59.84,9.8,13.7,11.08,12.1,9.24,13.3,12.36
Brand Identity,"Brand identity is the visible elements of a brand, such as color, design, and logo, that identify and distinguish the brand in consumers' minds. Brand identity is distinct from brand image. The former corresponds to the intent behind the branding and the way a company does the following—all to cultivate a certain image in consumers' minds:",investopedia,1,51.52,13,0,12.25,17.1,9.82,12.66666667,16.2
Brand Loyalty,"Brand loyalty is the positive association consumers attach to a particular product or brand. Customers who exhibit brand loyalty are devoted to a product or service, which is demonstrated by their repeat purchases despite competitors' efforts to lure them away. Corporations invest significant amounts of money in customer service and marketing to create and maintain brand loyalty for an established product. Coca-Cola Company is an example of an iconic brand that has resulted in customers demonstrating brand loyalty over the years despite Pepsi's products and marketing efforts.",investopedia,1,32.43,14.2,16.5,15.26,16.3,10.89,16.375,16.08
Brand Management,Brand management is a function of marketing that uses techniques to increase the perceived value of a product line or brand over time. Effective brand management enables the price of products to go up and builds loyal customers through positive brand associations and images or a strong awareness of the brand.,investopedia,1,54.05,12.1,0,12.36,15.3,10.78,15.75,14.12
Brand Personality,Brand personality is a set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that a specific consumer segment enjoys. This personality is a qualitative value-add that a brand gains in addition to its functional benefits.,investopedia,1,42,12.5,15.5,12.36,13.3,9.76,15,16.02
Brand Recognition,"The term brand recognition refers to the ability of consumers to identify a specific brand by its attributes over another one. Brand recognition is a concept used in advertising and marketing. It is considered successful when people are able to recognize a brand through visual or auditory cues such as logos, slogans, packaging, colors, or jingles rather than being explicitly exposed to a company's name. Companies often conduct market research to determine the success of their brand recognition strategies.",investopedia,1,42.92,12.2,15.2,13.75,14.2,10.81,14.375,15.51
"Brazil, Russia, India and China (BRIC)","BRIC is an acronym for the developing nations of Brazil, Russia, India, and China - countries believed to be the future dominant suppliers of manufactured goods, services, and raw materials by 2050. China and India will become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials. As of 2010, South Africa joined the group, which is now referred to as BRICS.",investopedia,1,37.94,14.1,15,13.06,16.2,9.98,16.83333333,13.66
"Brazil, Russia, India, China and South Africa (BRICS)","BRICS is an acronym for Brazil, Russia, India, China, and South Africa. Goldman Sachs economist Jim O'Neill coined the term BRIC (without South Africa) in 2001, claiming that by 2050 the four BRIC economies would come to dominate the global economy by 2050. South Africa was added to the list in 2010.",investopedia,1,79.3,6.5,8.8,9.1,9.9,11.17,8.666666667,9.23
Breadth Indicator,"Breadth indicators are mathematical formulas that measure the number of advancing and declining stocks, and/or their volume, to calculate the participation in a stock index's price movements. By evaluating how many stocks are increasing or decreasing in price, and how much volume these stocks are trading, breadth indicators help in confirming stock index price trends, or can warn of impending price reversals.",investopedia,1,31.55,16.6,0,15.33,20.7,10.52,22.5,20.79
Break-Even Price,"A break-even price is the amount of money, or change in value, for which an asset must be sold to cover the costs of acquiring and owning it. It can also refer to the amount of money for which a product or service must be sold to cover the costs of manufacturing or providing it.",investopedia,1,68.94,10.5,0,6.22,11.6,7.3,15.25,13.18
Break-Even Analysis,"Break-even analysis entails calculating and examining the margin of safety for an entity based on the revenues collected and associated costs. In other words, the analysis shows how many sales it takes to pay for the cost of doing business. Analyzing different price levels relating to various levels of demand, the break-even analysis determines what level of sales are necessary to cover the company's total fixed costs. A demand-side analysis would give a seller significant insight into selling capabilities.",investopedia,1,34.46,13.4,15.6,13.87,14.3,10.81,14.625,15.01
Breakeven Point (BEP),"In accounting, the breakeven point formula is determined by dividing the total fixed costs associated with production by the revenue per individual unit minus the variable costs per unit. In this case, fixed costs refer to those which do not change depending upon the number of units sold. Put differently, the breakeven point is the production level at which total revenues for a product equal total expenses.",investopedia,1,48.84,12,14.1,12.25,13.9,10.16,14.83333333,14.89
Breakout,"A breakout refers to when the price of an asset moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher. Breakouts that occur on high volume (relative to normal volume) show greater conviction which means the price is more likely to trend in that direction.",investopedia,1,59.84,9.8,11.7,10.62,11.6,8.82,12.125,10.96
Bretton Woods Agreement and System,"The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire. Thus, the name “Bretton Woods Agreement.",investopedia,1,45.76,11.1,0,14.15,13.4,10.52,11.5,12.68
Brexit,"Brexit is a portmanteau of the words ""British"" and ""exit"" coined to refer to the U.K.'s decision in a June 23, 2016 referendum to leave the European Union (EU). Brexit took place at 11 p.m. Greenwich Mean Time, Jan. 31, 2020.",investopedia,1,82.95,5.1,9.7,6.02,6.8,13.17,7.166666667,9.38
Brick and Mortar,"The term ""brick-and-mortar"" refers to a traditional street-side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents. The local grocery store and the corner bank are examples of brick-and-mortar companies. Brick-and-mortar businesses have found it difficult to compete with mostly web-based businesses like Amazon.com Inc. (AMZN) because the latter usually have lower operating costs and greater flexibility.",investopedia,1,39.67,13.4,15,16.31,18.4,10.96,15.83333333,13.84
Bridge Financing,"Bridge financing, often in the form of a bridge loan, is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged. Bridge financing normally comes from an investment bank or venture capital firm in the form of a loan or equity investment.",investopedia,1,35.1,15.2,0,12.02,16.4,9.02,20.75,17.55
Bridge Loan,"A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates, and are usually backed by some form of collateral, such as real estate or inventory.",investopedia,1,50.16,11.5,15,10.91,12.5,9.94,14.83333333,16.02
Broad Money,"Broad money is a category for measuring the amount of money circulating in an economy. It is defined as the most inclusive method of calculating a given country's money supply, and includes narrow money along with other assets that can be easily converted into cash to buy goods and services.",investopedia,1,46.1,13,0,11.09,14.2,9.61,16.5,16.4
Broker,"A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.",investopedia,1,31.92,14.3,13,14.45,15.7,9.69,14.16666667,13.1
Broker-Dealer,A broker-dealer (B-D) is a person or firm in the business of buying and selling securities for its own account or on behalf of its customers. The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages because most of them act as both agents and principals.,investopedia,1,54.56,11.9,0,10.62,14.3,10.25,16,13.2
Brokerage Account,"A brokerage account is an arrangement in which an investor deposits money with a licensed brokerage firm, which places trades on behalf of the customer. Although the brokerage executes the orders, the assets belong to the investors, who typically must claim as taxable income any capital gains incurred from the account.",investopedia,1,45.59,13.2,0,13.18,16.2,10.78,16.25,13.34
Brokerage Company,"A brokerage company’s main duty is to act as a middleman that connects buyers and sellers to facilitate a transaction. Brokerage companies typically receive compensation by means of commissions or fees that are charged once the transaction has successfully completed. Nowadays these might be paid by the exchange or by the customer, or in some cases both.",investopedia,1,43.73,11.9,15,12.76,12.8,9.84,13.83333333,15.32
Brokerage Fee,"A brokerage fee is a fee charged by a broker to execute transactions or provide specialized services. Brokers charge brokerage fees for services such as purchases, sales, consultations, negotiations, and delivery. There are many types of brokerage fees charged in various industries such as financial services, insurance, real estate, and delivery services.",investopedia,1,37,12.4,15.9,15.43,14.9,11.17,13.66666667,16.15
Brown Bag Meeting,"A brown bag meeting is an informal meeting or training that generally occurs in the workplace around lunchtime. This type of meeting is referred to as a brown bag meeting or a brown bag seminar because participants typically bring their lunches, which are associated with being packed in brown paper bags.",investopedia,1,45.59,13.2,0,11.67,14.9,9.55,15.75,14.91
Brownfield Investment,"A brownfield (also known as ""brown-field"") investment is when a company or government entity purchases or leases existing production facilities to launch a new production activity. This is one strategy used in foreign direct investment.",investopedia,1,28.33,13.7,0,14.73,14.5,9.92,14.75,16.14
Bubble,"A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a ""crash"" or a ""bubble burst.""",investopedia,1,47.12,12.7,0,9.23,12.8,8.77,15,14.6
Budget Deficit,A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country. The government generally uses the term budget deficit when referring to spending rather than businesses or individuals. Accrued deficits form national debt.,investopedia,1,41.66,10.6,13,15.59,12.6,11.75,8.333333333,13.5
Budget Surplus,"A budget surplus occurs when income exceeds expenditures. The term often refers to a government's financial state, as individuals have ""savings"" rather than a ""budget surplus."" A surplus is an indication that a government's finances are being effectively managed.",investopedia,1,41.36,10.7,11.9,13.79,12.2,9.54,7.833333333,11.35
Budget Variance,"A budget variance is a periodic measure used by governments, corporations, or individuals to quantify the difference between budgeted and actual figures for a particular accounting category. A favorable budget variance refers to positive variances or gains; an unfavorable budget variance describes negative variance, indicating losses or shortfalls. Budget variances occur because forecasters are unable to predict future costs and revenue with complete accuracy.",investopedia,1,7.56,17.5,17.1,18.45,18.8,12.83,16.66666667,19.15
Build America Bonds (BABs),Build America Bonds (BABs) were taxable municipal bonds that featured federal tax credits or subsidies for bondholders or state and local government bond issuers. Build America Bonds (BABs) were introduced in 2009 as part of President Obama's American Recovery and Reinvestment Act (ARRA) to create jobs and stimulate the economy. The Build America Bonds program expired in 2010.,investopedia,1,43.43,12,15.9,13.92,14.4,11.67,14.66666667,14.62
Build-Operate-Transfer Contract,"A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships.",investopedia,1,9.89,16.6,0,25.18,24.2,14.55,15.5,18.13
Bull,"A bull is an investor who thinks the market, a specific security, or an industry is poised to rise. Investors who adopt a bull approach purchase securities under the assumption that they can sell them later at a higher price.",investopedia,1,59.64,9.9,0,9.57,10.8,10.16,12.5,13
Bull Call Spread,"A bull call spread is an options trading strategy designed to benefit from a stock's limited increase in price. The strategy uses two call options to create a range consisting of a lower strike price and an upper strike price. The bullish call spread helps to limit losses of owning stock, but it also caps the gains.",investopedia,1,59.47,12,0,9.17,14.5,10.87,11.16666667,14.21
Bull Market,"A bull market is the condition of a financial market in which prices are rising or are expected to rise. The term ""bull market"" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.",investopedia,1,62.51,10.9,0,8.13,12.5,8.31,15.25,14.12
Bull Put Spread,"A bull put spread is an options strategy that an investor uses when they expect a moderate rise in the price of the underlying asset. The strategy employs two put options to form a range, consisting of a high strike price and a low strike price. The investor receives a net credit from the difference between the two premiums from the options.",investopedia,1,67.38,9,11.9,8.7,10.3,8.23,12.66666667,11.51
Bull Trap,"A bull trap is a false signal, referring to a declining trend in a stock, index, or other security that reverses after a convincing rally and breaks a prior support level. The move ""traps"" traders or investors that acted on the buy signal and generates losses on resulting long positions. A bull trap may also refer to a whipsaw pattern.",investopedia,1,49.49,13.8,0,9.53,15.5,11.18,12.66666667,17.33
Bullet Bond,"A bullet bond is a debt instrument whose entire principal value is paid in one lump sum on the maturity date, as opposed to amortizing the bond over its lifetime. Bullet bonds cannot be redeemed early by an issuer, which means they are non-callable. Because of this, bullet bonds typically pay a relatively low rate of interest due to the issuer's high-interest rate exposure.",investopedia,1,49.86,11.6,13,10.27,12.3,9.38,13.66666667,13.52
Bullet Repayment,"A bullet repayment is a lump sum payment made for the entirety of an outstanding loan amount, usually at maturity. It can also be a single payment of principal on a bond.",investopedia,1,55.24,9.5,0,7.07,7,7.88,11,13.9
Bullish Abandoned Baby,"The bullish abandoned baby is a type of candlestick pattern that is used by traders to signal a reversal of a downtrend. It forms in a downtrend and is composed of three price bars. The first is a large down candle, followed by a doji candle that gaps below the first candle. The next candle opens higher than the doji and moves aggressively to the upside.",investopedia,1,71.65,7.4,8.1,7.54,7.6,9,8,7.81
Bullish Engulfing Pattern,"A bullish engulfing pattern is a white candlestick that closes higher than the previous day's opening after opening lower than the previous day's close. It can be identified when a small black candlestick, showing a bearish trend, is followed the next day by a large white candlestick, showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.",investopedia,1,46.44,15,0,12.31,19.2,9.58,21.5,15.62
Bullish Harami,A bullish harami is a basic candlestick chart pattern indicating that a bearish trend in an asset or market may be reversing.,investopedia,1,49.15,11.9,0,9.86,11.8,11.19,14,12.44
Bundle of Rights,A bundle of rights is a term for the set of legal privileges that is generally afforded to a real estate buyer with the transfer of the title. The bundle includes the following:,investopedia,1,63.19,8.5,0,7.54,7.5,8.76,10.25,10.24
Bungalow,"A bungalow is a one-story house, cottage, or cabin. Bungalows are generally small in terms of square footage, but it is not uncommon to see very large bungalows. Bungalows were originally designed to provide affordable, modern housing for the working class.",investopedia,1,49.11,9.8,13,11.71,10.3,9.32,8.833333333,11.33
Bureau of Labor Statistics (BLS),"The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market. Its reports include the Consumer Price Index (CPI) and the Producer Price Index (PPI), both of which are considered to be important measures of inflation.",investopedia,1,47.12,12.7,0,11.9,15.1,12.39,16.5,16.27
Bureaucracy,"A bureaucracy typically refers to an organization that is complex with multilayered systems and processes. These systems and procedures are designed to maintain uniformity and control within an organization. A bureaucracy describes the established methods in large organizations or governments. For example, an oil company may establish a bureaucracy to compel its employees to complete safety checks when operating on an oil rig.",investopedia,1,21.6,14.2,15.2,15.95,14,11.19,12.375,15.21
Burn Rate,The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations. It is a measure of negative cash flow.,investopedia,1,52.19,10.7,0,10.33,10.8,7.9,13,12.86
Business,"A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or they can be non-profit organizations that operate to fulfill a charitable mission or further a social cause.",investopedia,1,8.88,17,0,16.24,16.5,12.13,17,20
Business Activities,"Business activities include any activity a business engages in for the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business. Business activities, including operating, investing and financing activities, are ongoing and focused on creating value for shareholders.",investopedia,1,19.06,15.1,16.7,15.2,14.6,9.71,14.83333333,16.05
Business Asset,"A business asset is an item of value owned by a company. Business assets span many categories. They can be physical, tangible goods, such as vehicles, real estate, computers, office furniture, and other fixtures, or intangible items, such as intellectual property.",investopedia,1,40.65,11,13.6,12.29,11.1,10.48,10.16666667,13.28
Business Banking,"Business banking is a company's financial dealings with an institution that provides business loans, credit, savings accounts, and checking accounts, specifically designed for companies rather than for individuals.",investopedia,1,9.22,18.9,0,20.48,24,12.92,20,19.77
Business Continuity Planning (BCP),Business continuity planning (BCP) is the process involved in creating a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.,investopedia,1,49.65,11.7,0,11.72,13.3,11.31,15.25,16.04
Business Cycle,"Business cycles are a type of fluctuation found in the aggregate economic activity of nations…a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions…this sequence of changes is recurrent but not periodic. That description, from the 1946 magnum opus by Arthur F. Burns and Wesley C. Mitchell, Measuring Business Cycles, remains definitive today.",investopedia,1,38.52,11.8,14.9,15.08,13.6,12.44,12.125,15.21
Business Development Company (BDC),"A business development company (BDC) is an organization that invests in small- and medium-sized companies as well as distressed companies. A BDC helps the small- and medium-sized firms grow in the initial stages of their development. With distressed businesses, the BDC helps the companies regain sound financial footing.",investopedia,1,46.78,10.7,14.1,14.32,13.5,9.69,11.66666667,10.57
Business Economics,"Business economics is a field of applied economics that studies the financial, organizational, market-related, and environmental issues faced by corporations.",investopedia,1,0.42,18.2,0,22.74,22.2,12.52,17,20
Business Ecosystems,"A business ecosystem is the network of organizations—including suppliers, distributors, customers, competitors, government agencies, and so on—involved in the delivery of a specific product or service through both competition and cooperation. The idea is that each entity in the ecosystem affects and is affected by the others, creating a constantly evolving relationship in which each entity must be flexible and adaptable in order to survive as in a biological ecosystem.",investopedia,1,10.57,20.5,0,16.2,23.3,11.46,26,23.14
Business Ethics,"Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval.",investopedia,1,10.23,18.5,0,21.7,24.1,12.58,20.5,20.43
Business Exit Strategy,"A business exit strategy is an entrepreneur's strategic plan to sell his or her ownership in a company to investors or another company. An exit strategy gives a business owner a way to reduce or liquidate his stake in a business and, if the business is successful, make a substantial profit. If the business is not successful, an exit strategy (or ""exit plan"") enables the entrepreneur to limit losses. An exit strategy may also be used by an investor such as a venture capitalist in order to plan for a cash-out of an investment.",investopedia,1,47.62,12.5,14.2,9.29,12.3,8.16,15.5,12.8
Business Expenses,"Business expenses are costs incurred in the ordinary course of business. They can apply to small entities or large corporations. Business expenses are part of the income statement. On the income statement, business expenses are subtracted from revenue to arrive at a company’s taxable net income.",investopedia,1,51.34,9,11.2,12.57,10,8.33,6.75,9.82
Business Insurance,"Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks.",investopedia,1,27.32,14,0,17.23,16.3,11.38,14.25,16.05
Business Intelligence (BI),"Business intelligence (BI) refers to the procedural and technical infrastructure that collects, stores, and analyzes the data produced by a company’s activities.",investopedia,1,15.31,16.6,0,18.33,19.5,14.06,18,21.53
Business Models,"The term business model refers to a company's plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses. Business models are important for both new and established businesses. They help new, developing companies attract investment, recruit talent, and motivate management and staff. Established businesses should regularly update their business plans or they'll fail to anticipate trends and challenges ahead. Business plans help investors evaluate companies that interest them.",investopedia,1,40.65,11,13.6,15.94,13.6,10.48,10.16666667,13.28
Business Plan,"A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.",investopedia,1,57.1,10.9,0,12.54,14.2,10.37,14.75,14.33
Business Process Outsourcing,"Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well.",investopedia,1,22.75,15.8,0,18.69,20,12.33,17,17.03
Business Risk,Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company's ability to achieve its financial goals is considered a business risk. There are many factors that can converge to create business risk. Sometimes it is a company's top leadership or management that creates situations where a business may be exposed to a greater degree of risk.,investopedia,1,52.9,10.4,12.6,10.85,11.1,9.74,11.875,12.25
Business to Business (B2B),"Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer. Business-to-business stands in contrast to business-to-consumer (B2C) and business-to-government (B2G) transactions.",investopedia,1,27.83,13.9,15.9,19.78,20.2,10.09,14,13.87
Business to Consumer (B2C),The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.,investopedia,1,58.62,10.3,0,12.94,14.4,9.19,13,10.3
Business to Government (B2G),"Business to government (B2G) is the sale and marketing of goods and services to federal, state, or local agencies. In modern lingo, there are three basic business models: business to consumer (B2C), business to business (B2B), and business to government (B2G).",investopedia,1,59.13,10.1,0,11.6,14.1,9.66,12.25,10.15
Business Valuations,"A business valuation is a general process of determining the economic value of a whole business or company unit. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, taxation, and even divorce proceedings. Owners will often turn to professional business evaluators for an objective estimate of the value of the business.",investopedia,1,32.22,14.2,16.7,13.4,15,9.27,16.66666667,17.28
Buy and Hold,Buy and hold is a passive investment strategy in which an investor buys stocks (or other types of securities such as ETFs) and holds them for a long period regardless of fluctuations in the market. An investor who uses a buy-and-hold strategy actively selects investments but has no concern for short-term price movements and technical indicators. Many legendary investors such as Warren Buffett and Jack Bogle praise the buy-and-hold approach as ideal for individuals seeking healthy long-term returns.,investopedia,1,45.09,13.4,14.6,14.16,17.5,11.2,17,16.04
Buy and Sell Agreement,"A buy and sell agreement is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement stipulates that the available share be sold to the remaining partners or to the partnership.",investopedia,1,53.04,12.4,0,10.91,14.9,8.53,16.25,13.62
Buy-In,A buy-in in the financial markets is an occurrence in which an investor is forced to repurchase shares of security because the seller of the original shares did not deliver the securities in a timely fashion or did not deliver them at all.,investopedia,1,27.83,20.1,0,9.88,21.6,10.54,29.5,23.71
Buy-In Management Buyout (BIMBO),A Buy-In Management BuyOut (BIMBO) is a form of a leveraged buyout (LBO) that incorporates characteristics of both a management buyout (MBO) along with a management buy-in (MBI).,investopedia,1,43.06,14.2,0,12.02,18,10.1,19,15.49
Buy Limit Order,"A buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a limit order to make a purchase, the investor is guaranteed to pay that price or less.",investopedia,1,66.07,9.5,0,6.21,9.1,8.32,12.5,11.53
Buy-Side,"The financial institutions of a free-market economy include a segment called the buy-side: firms that purchase investment securities. These include insurance firms, mutual funds, hedge funds, and pension funds, that buy securities for their own accounts or for investors with the goal of generating a return.",investopedia,1,39.67,13.4,0,15.03,17,10.96,16,16.16
Buy Stop Order,"A buy stop order instructs a broker to purchase a security when it reaches a pre-specified price. Once the price hits that level, the buy stop becomes either a limit or a market order, fillable at the next available price.",investopedia,1,59.64,9.9,0,8.53,10.1,9.37,11.5,11
Buy the Dips,"Buy the dips means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the ""dip"" is only a short-term blip and the asset, with time, is likely to bounce back and increase in value.",investopedia,1,73,8.9,0,6.97,10.5,8.16,12.75,11.1
Buy to Cover,"Buy to cover refers to a buy order made on a stock or other listed security to close out an existing short position. A short sale involves selling shares of a company that an investor does not own, as the shares are borrowed from a broker but need to be repaid at some point.",investopedia,1,69.45,10.3,0,7.09,11.9,8.48,15.5,13.02
Buy to Open,"Buy to open is a term used by brokerages to represent the establishment of a new (opening) long call or put position in options. If a new options investor wants to buy a call or put, that investor should buy to open. A buy-to-open order indicates to market participants that the trader is establishing a new position rather than closing out an existing position. The sell to close order is used to exit a position taken with a buy-to-open order.",investopedia,1,59.64,9.9,12.6,8.47,10.1,7.39,12.75,12
Buyback,"A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake.",investopedia,1,57.44,12.8,0,11.73,17.3,9.55,19.25,16.79
Buyer's Market,A buyer's market refers to a situation in which changes to the underlying economic conditions that shape supply and demand mean that purchasers have an advantage over sellers in price negotiations.,investopedia,1,31.55,16.6,0,14.17,19.5,11.8,21.5,20.14
Buying on Margin,"Buying on margin occurs when an investor buys an asset by borrowing the balance from a bank or broker. Buying on margin refers to the initial payment made to the broker for the asset—for example, 10% down and 90% financed. The investor uses the marginable securities in their broker account as collateral.",investopedia,1,53.92,10,10.5,10.09,10.2,10.26,10.33333333,10
Buying Power,"Buying power, also referred to as excess equity, is the money an investor has available to buy securities in a trading context. Buying power equals the total cash held in the brokerage account plus all available margin.",investopedia,1,52.7,10.5,0,10.79,11.1,10.53,10.75,10.64
Buyout,"A buyout is the acquisition of a controlling interest in a company and is used synonymously with the term acquisition. If the stake is bought by the firm’s management, it is known as a management buyout and if high levels of debt are used to fund the buyout, it is called a leveraged buyout. Buyouts often occur when a company is going private.",investopedia,1,58.62,10.3,13,8.24,10.2,8.69,13.5,11.57
C Corporation,"A C corporation (or C-corp) is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. C corporations, the most prevalent of corporations, are also subject to corporate income taxation. The taxing of profits from the business is at both corporate and personal levels, creating a double taxation situation.",investopedia,1,35.27,13.1,15.5,12.65,13.3,10.12,14.16666667,14.62
C-Suite,"C-suite, or C-level, is widely-used vernacular describing a cluster of a corporation's most important senior executives. C-suite gets its name from the titles of top senior executives, which tend to start with the letter C, for ""chief,"" as in chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO).",investopedia,1,26.14,16.6,0,13.23,19.2,10.38,21,16.91
Call,"A call, in finance, will usually mean one of two things.",investopedia,1,85.69,4,0,4.21,3.8,8.49,5.5,8.04
Canceled Check,"A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. The check is ""canceled"" after it's been used or paid so that the check cannot be used again.",investopedia,1,82.99,7.2,0,4.99,8.2,6.52,11.5,9.71
Candlestick,"A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States. The wide part of the candlestick is called the ""real body"" and tells investors whether the closing price was higher or lower than the opening price (black/red if the stock closed lower, white/green if the stock closed higher).",investopedia,1,49.18,13.9,14.6,11.67,17.4,9.48,19.16666667,16.08
Cap and Trade,"Cap and trade is a common term for a government regulatory program designed to limit, or cap, the total level of emissions of certain chemicals, particularly carbon dioxide, as a result of industrial activity.",investopedia,1,11.59,20.1,0,12.49,20,11.82,23,19.48
Capacity Utilization Rate,Capacity utilization rate measures the percentage of an organization's potential output that is actually being realized. The capacity utilization rate of a company or a national economy may be measured in order to provide insight into how well it is reaching its potential.,investopedia,1,24.27,15.2,0,13.46,14.6,10.21,17.25,16.97
CAPE Ratio,"The CAPE ratio is a valuation measure that uses real earnings per share (EPS) over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle. The CAPE ratio, using the acronym for cyclically adjusted price-to-earnings ratio, was popularized by Yale University professor Robert Shiller. It is also known as the Shiller P/E ratio. The P/E ratio is a valuation metric that measures a stock's price relative to the company's earnings per share. EPS is a company's profit divided by the outstanding equity shares.",investopedia,1,44.34,11.6,14.3,11.78,12.3,10.73,13,13.88
Capital Account,"The capital account, in international macroeconomics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports of goods, services, capital, and as transfer payments such as foreign aid and remittances. The balance of payments is composed of a capital account and a current account—though a narrower definition breaks down the capital account into a financial account and a capital account. The capital account measures the changes in national ownership of assets, whereas the current account measures the country's net income.",investopedia,1,36.83,14.5,15.6,14.16,17.3,9.06,17.25,14.2
Capital Adequacy Ratio (CAR),"The capital adequacy ratio (CAR) is a measurement of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. The capital adequacy ratio, also known as capital-to-risk weighted assets ratio (CRAR), is used to protect depositors and promote the stability and efficiency of financial systems around the world. Two types of capital are measured: tier-1 capital, which can absorb losses without a bank being required to cease trading, and tier-2 capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.",investopedia,1,30.84,16.8,17.1,13.18,19.7,11.03,21.83333333,16.47
Capital Asset Pricing Model (CAPM),"The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. CAPM is widely used throughout finance for pricing risky securities and generating expected returns for assets given the risk of those assets and cost of capital.",investopedia,1,23.26,15.6,0,16.02,17.1,11.42,15.75,14.33
Capital Budgeting,Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected.,investopedia,1,41.19,12.9,0,14.16,15.1,9.84,16.75,16.97
Capital Employed,"Capital employed, also known as funds employed, is the total amount of capital used for the acquisition of profits by a firm or project. Capital employed can also refer to the value of all the assets used by a company to generate earnings.",investopedia,1,27.83,20.1,0,9.77,21.7,9.81,13.75,19.06
Capital Expenditure,"Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company. Making capital expenditures on fixed assets can include repairing a roof, purchasing a piece of equipment, or building a new factory. This type of financial outlay is made by companies to increase the scope of their operations or add some economic benefit to the operation.",investopedia,1,35.31,15.1,17.9,13,17.4,10.77,15.25,17.75
Capital Gain,Capital gain is an increase in a capital asset's value and is considered to be realized when the asset is sold.,investopedia,1,50.16,11.5,0,7.31,9.5,8.44,14.5,12.21
Capital Gains Tax,"A capital gains tax is a tax on the growth in value of investments incurred when individuals and corporations sell those investments. When the assets are sold, the capital gains are referred to as having been ""realized."" The tax doesn't apply to unsold investments or ""unrealized capital gains,"" so stock shares that appreciate every year will not incur capital gains taxes until they are sold, no matter how long you happen to hold them.",investopedia,1,46.4,12.9,14.6,10.74,14.1,8.28,16.33333333,13.12
Capital Goods,"Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods include buildings, machinery, equipment, vehicles, and tools. Capital goods are not finished goods, instead, they are used to make finished goods.",investopedia,1,47.49,10.4,13,14.14,13.2,9.89,10.66666667,9.6
Capital Improvement,"A capital improvement is the addition of a permanent structural change or the restoration of some aspect of a property that will either enhance the property's overall value, prolongs its useful life, or adapt it to new uses. Individuals, businesses, and cities can make capital improvements to the property they own. Often capital improvements are given favorable tax treatment and may be exempted from sales tax in certain jurisdictions.",investopedia,1,39.67,13.4,16.3,13.64,15.5,9.81,16.83333333,15.58
Capital Investment,"Capital investment is the procurement of money by a company in order to further its business goals and objectives. The term can also refer to a company's acquisition of long-term assets such as real estate, manufacturing plants and machinery.",investopedia,1,34.76,13.3,0,12.3,13,9.06,14.25,13.95
Capital IQ,"S&P Capital IQ is the research division of S&P Global, one of the world's largest providers of ratings, data, research, and the S&P Dow Jones Indices. S&P Capital IQ provides detailed research and analysis of the stock market to a variety of investing stakeholders.",investopedia,1,57.61,10.7,0,10.79,13.5,11.9,14.5,13.35
Capital Leases,"A capital lease is a contract entitling a renter to the temporary use of an asset, and such a lease has the economic characteristics of asset ownership for accounting purposes. The capital lease requires a renter to book assets and liabilities associated with the lease if the rental contract meets specific requirements. In essence, a capital lease is considered a purchase of an asset, while an operating lease is handled as a true lease under generally accepted accounting principles (GAAP).",investopedia,1,35.91,14.9,17.9,12.6,16.4,10.49,20,18.68
Capital Loss Carryover,"Capital loss carryover is the net amount of capital losses eligible to be carried forward into future tax years. Net capital losses (the amount that total capital losses exceed total capital gains) can only be deducted up to a maximum of $3,000 in a tax year. Net capital losses exceeding the $3,000 threshold may be carried forward to future tax years until exhausted. There is no limit to the number of years there might be a capital loss carryover.",investopedia,1,51.38,11,13.8,9.69,10.9,8.02,13.375,10.96
Capital Market Line (CML),"The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios. It is a theoretical concept that represents all the portfolios that optimally combine the risk-free rate of return and the market portfolio of risky assets. Under CAPM, all investors will choose a position on the capital market line, in equilibrium, by borrowing or lending at the risk-free rate, since this maximizes return for a given level of risk.",investopedia,1,41.19,12.9,14.9,13.05,14.8,8.93,15,13.25
Capital Markets,"Capital markets are venues where savings and investments are channeled between the suppliers who have capital and those who are in need of capital. The entities that have capital include retail and institutional investors while those who seek capital are businesses, governments, and people.",investopedia,1,40.69,13.1,0,14.91,16.1,9.03,16.5,14.25
Capital Project,"A capital project is a long-term, capital-intensive investment project with a purpose to build upon, add to, or improve a capital asset. Capital projects are defined by their large scale and large cost relative to other investments that involve less planning and resources.",investopedia,1,49.65,11.7,0,12.94,14.6,9.48,14.25,12.32
Capital Stock,"Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Capital stock can only be issued by the company and is the maximum number of shares that can ever be outstanding. The amount is listed on the balance sheet in the company's shareholders' equity section.",investopedia,1,52.19,10.7,14.6,10.62,11.2,9.29,13.5,13.21
Capital Structure,The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth.,investopedia,1,32.22,14.2,0,12.24,13.8,11.19,17,16.07
Capitalization,"Capitalization is an accounting method in which a cost is included in the value of an asset and expensed over the useful life of that asset, rather than being expensed in the period the cost was originally incurred.",investopedia,1,32.91,18.1,0,10.17,19.6,9.26,24,20.46
Capitalization Rate,The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of return that is expected to be generated on a real estate investment property. This measure is computed based on the net income which the property is expected to generate and is calculated by dividing net operating income by property asset value and is expressed as a percentage. It is used to estimate the investor's potential return on their investment in the real estate market.,investopedia,1,42.34,14.5,17.5,11.38,16,8.73,20.66666667,18.46
Capitalization Table,"A capitalization table, also known as a cap table, is a spreadsheet or table that shows the equity capitalization for a company. A capitalization table is most commonly utilized for startups and early-stage businesses but all types of companies may use it as well. In general, the capitalization table is an intricate breakdown of a company’s shareholders’ equity.",investopedia,1,34.97,13.2,15.5,12.71,13.2,8.41,14.33333333,13.24
Capitalize,"To capitalize is to record a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense. In general, capitalizing expenses is beneficial as companies acquiring new assets with long-term lifespans can amortize or depreciate the costs. This process is known as capitalization.",investopedia,1,38.15,14,0,13.93,16.4,10.65,12.16666667,18.78
Capitalized Cost,A capitalized cost is an expense that is added to the cost basis of a fixed asset on a company's balance sheet. Capitalized costs are incurred when building or purchasing fixed assets. Capitalized costs are not expensed in the period they were incurred but recognized over a period of time via depreciation or amortization.,investopedia,1,53.21,10.3,13.6,11.02,11.1,9.79,12.33333333,12.39
Capitalized Interest,"Capitalized interest is the cost of borrowing to acquire or construct a long-term asset. Unlike an interest expense incurred for any other purpose, capitalized interest is not expensed immediately on the income statement of a company's financial statements. Instead, firms capitalize it, meaning the interest paid increases the cost basis of the related long-term asset on the balance sheet. Capitalized interest shows up in installments on a company's income statement through periodic depreciation expense recorded on the associated long-term asset over its useful life.",investopedia,1,24.78,15,15.9,15.66,16.5,10.13,15.5,14.59
Capitulation,"Capitulation is when investors give up any previous gains in any security or market by selling their positions during periods of declines. Capitulation can happen at any time, but typically happens during high volume trading and extended declines for securities. A market correction or bear market often leads investors to capitulate or panic sell. The term is a derived from a military term which refers to surrender.",investopedia,1,20.55,18.7,0,13.59,20.3,10.72,11.625,20.56
Carbon Credit,A carbon credit is a permit that allows the company that holds it to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of a mass equal to one ton of carbon dioxide.,investopedia,1,68.1,8.7,0,7.95,9.3,9.37,10.5,8
Carding,"Carding is a form of credit card fraud in which a stolen credit card is used to charge prepaid cards. Carding typically involves the holder of the stolen card purchasing store-branded gift cards, which can then be sold to others or used to purchase other goods that can be sold for cash. Credit card thieves who are involved in this type of fraud are called “carders.”",investopedia,1,74.53,8.3,8.8,8.94,11.2,8.79,12,10.01
Carriage and Insurance Paid To (CIP),"Carriage and Insurance Paid To (CIP) is when a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being transported transfers from the seller to the buyer as soon as the goods are delivered to the carrier or appointed person. It is comparable, but different to Cost, Insurance, and Freight (CIF).",investopedia,1,57.3,10.8,14.6,10.57,13,8.51,15.16666667,13.7
Carried Interest,"Carried interest is a share of any profits that the general partners of private equity and hedge funds receive as compensation regardless of whether they contribute any initial funds. Because carried interest acts as a type of performance fee, it acts to motivate the the fund's overall performance. However, carried interest is often only paid if the fund’s returns meet a certain threshold.",investopedia,1,50.16,11.5,14.6,12.53,13.8,10.19,14.5,12.84
Carve-Out,"A carve-out is the partial divestiture of a business unit in which a parent company sells a minority interest of a subsidiary to outside investors. A company undertaking a carve-out is not selling a business unit outright but, instead, is selling an equity stake in that business or relinquishing control of the business from its own while retaining an equity stake. A carve-out allows a company to capitalize on a business segment that may not be part of its core operations.",investopedia,1,44.07,13.8,15,10.8,15.1,9.07,17.83333333,15.24
Cash Accounting,"Cash accounting is an accounting method where payment receipts are recorded during the period in which they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.",investopedia,1,47.62,12.5,0,12.65,14.9,8.5,15.75,13.66
Cash Advance,"A cash advance is a short-term loan from a bank or an alternative lender. The term also refers to a service provided by many credit card issuers allowing cardholders to withdraw a certain amount of cash. Cash advances generally feature steep interest rates and fees, but they are attractive to borrowers because they also feature fast approval and quick funding.",investopedia,1,51.18,11.1,12.5,11.55,12.4,9.89,12.66666667,13.33
Cash-and-Carry-Arbitrage,"Cash-and-carry-arbitrage is a market-neutral strategy combining the purchase of a long position in an asset such as a stock or commodity, and the sale (short) of a position in a futures contract on that same underlying asset. It seeks to exploit pricing inefficiencies for the asset in the cash (or spot) market and futures market, in order to make riskless profits. The futures contract must be theoretically expensive relative to the underlying asset or the arbitrage will not be profitable.",investopedia,1,35.91,14.9,15.5,12.31,16.4,9.11,18,15.68
Cash and Cash Equivalents (CCE),"Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days. However, oftentimes cash equivalents do not include equity or stock holdings because they can fluctuate in value.",investopedia,1,37.47,16.4,0,13.24,20,10.25,23.25,18.77
Cash Back,"Cash back often refers to two types of financial transactions related to credit and debit cards that have grown increasingly popular in the last two decades. Most commonly, it's a credit card benefit that refunds the cardholder a small percentage of the amount spent on each purchase above a certain dollar threshold.",investopedia,1,53.55,12.3,0,12.36,15.7,10.7,17.5,17.32
Cash Balance Pension Plan,"A cash balance pension plan is a pension plan with the option of a lifetime annuity. For a cash balance plan, the employer credits a participant's account with a set percentage of their yearly compensation plus interest charges.",investopedia,1,52.19,10.7,0,11.72,12.1,10.4,12.5,13.92
Cash Budget,"A cash budget is an estimation of the cash flows of a business over a specific period of time. This could be for a weekly, monthly, quarterly, or annual budget. This budget is used to assess whether the entity has sufficient cash to continue operating over the given time frame. The cash budget provides a company insight into its cash needs (and any surplus) and helps to determine an efficient allocation of cash.",investopedia,1,46.81,12.8,15,9.64,12.9,9.82,12.375,16.3
Cash Conversion Cycle (CCC),"The cash conversion cycle (CCC) is a metric that expresses the time (measured in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Also called the Net Operating Cycle or simply Cash Cycle, CCC attempts to measure how long each net input dollar is tied up in the production and sales process before it gets converted into cash received.",investopedia,1,44.41,15.8,0,10.34,18.5,11.01,21.5,18
Cash Cow,"A cash cow is one of the four categories (quadrants) in the growth-share, BCG matrix that represents a product, product line, or company with a large market share within a mature industry.",investopedia,1,47.46,14.6,0,10.51,17.7,10.16,20,16.55
Cash Dividend,"A cash dividend is the distribution of funds or money paid to stockholders generally as part of the corporation's current earnings or accumulated profits. Cash dividends are paid directly in money, as opposed to being paid as a stock dividend or other form of value.",investopedia,1,40.18,13.2,0,11.26,13.2,9.31,15.75,16.11
Cash Equivalents,Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid.,investopedia,1,34.26,13.5,0,16.07,16.4,10.94,15,18
Cash Flow,"Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business. Cash received represents inflows, while money spent represents outflows.",investopedia,1,65.73,7.6,0,12.17,10.5,7.71,7.5,8.46
Cash Flow from Financing Activities (CFF),"Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.",investopedia,1,43.73,11.9,0,12.65,13.2,10.81,14.5,14.97
Cash Flow from Investing Activities,"Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.",investopedia,1,20.72,16.6,0,14.8,17.4,10.25,20,19.6
Cash Flow from Operating Activities (CFO),"Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.",investopedia,1,31.72,14.4,0,13.06,14.9,10.02,16.75,17
Cash Flow Statement,A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.,investopedia,1,32.22,14.2,0,15.14,16.1,11.19,16.5,17.89
Cash Management,"Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company's financial stability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth portfolio.",investopedia,1,32.6,12,15.2,12.69,10.9,9.06,11.125,15.13
Cash-on-Cash Return,"A cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property. Put simply, cash-on-cash return measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year. It is considered relatively easy to understand and one of the most important real estate ROI calculations.",investopedia,1,47.83,12.4,14.6,11.44,13.8,8.4,15.66666667,14.46
Cash on Delivery (COD),"Cash on delivery (COD) is a type of transaction where the recipient pays for a good at the time of delivery rather than using credit. The terms and accepted forms of payment vary according to the payment provisions of the purchase agreement. Cash on delivery is also referred to as collect on delivery since delivery may allow for cash, check, or electronic payment.",investopedia,1,58.62,10.3,14.1,10.04,11.8,9.19,14.16666667,12.84
Cash-Out Refinance,"A cash-out refinance is a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash.",investopedia,1,39.34,17.7,0,10.28,20.8,9.96,25,21
Cash Ratio,"The cash ratio is a measurement of a company's liquidity, specifically the ratio of a company's total cash and cash equivalents to its current liabilities. The metric calculates a company's ability to repay its short-term debt with cash or near-cash resources, such as easily marketable securities. This information is useful to creditors when they decide how much money, if any, they would be willing to loan a company.",investopedia,1,39.97,13.3,15.9,12.07,14.3,9.17,16.33333333,16.14
Cash Surrender Value,"The cash surrender value is the sum of money an insurance company pays to a policyholder or an annuity contract owner in the event that their policy is voluntarily terminated before its maturity or an insured event occurs. This cash value is the savings component of most permanent life insurance policies, particularly whole life insurance policies. It is also known as ""cash value,"" ""surrender value,"" and ""policyholder's equity.""",investopedia,1,31.51,14.5,16.7,13.23,15.3,9.17,17,16.73
Cash Value Life Insurance,"Cash value life insurance is a form of permanent life insurance that features a cash value savings component. The policyholder can use the cash value for many purposes, such as a source of loans or cash or to pay policy premiums.",investopedia,1,50.67,11.3,0,9.46,10.9,8.5,14.25,15.03
Catalog of Federal Domestic Assistance (CFDA),The Catalog of Federal Domestic Assistance (CFDA) is a compendium of assistance programs offered by various U.S. government agencies to the American public.,investopedia,1,14.29,17,0,15.79,17.7,13.02,20.5,19.63
Caveat Emptor,"Caveat emptor is a Latin phrase that can be roughly translated in English to ""let the buyer beware."" While the phrase is sometimes used as a proverb in English, it is also sometimes used in legal contracts as a type of disclaimer. In many jurisdictions, it is the contract law principle that places the onus on the buyer to perform due diligence before making a purchase.",investopedia,1,66.07,9.5,8.8,8.99,11.4,9.75,12,10.62
Central Counterparty Clearing House (CCP),"A central counterparty clearing house (CCP) is an entity that helps facilitate trading in various European derivatives and equities markets. Typically operated by the major banks in each country, CCPs strive to introduce efficiency and stability into various financial markets. It reduces counterparty, operational, settlement, market, legal, and default risk for traders.",investopedia,1,11.62,15.9,16.7,16.99,16.3,13,14.33333333,17.69
Central Limit Theorem (CLT),"In the study of probability theory, the central limit theorem (CLT) states that the distribution of sample approximates a normal distribution (also known as a “bell curve”) as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population distribution shape.",investopedia,1,5.84,24.4,0,14.29,28.3,11.61,35,26.7
Centrally Planned Economy,"A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products. Centrally planned economies are different from market economies, in which such decisions are traditionally made by businesses and consumers.",investopedia,1,27.66,16,0,16.31,19.5,10.31,21.25,18.15
Certainty Equivalent,"The certainty equivalent is a guaranteed return that someone would accept now, rather than taking a chance on a higher, but uncertain, return in the future. Put another way, the certainty equivalent is the guaranteed amount of cash that a person would consider as having the same amount of desirability as a risky asset.",investopedia,1,44.07,13.8,0,11.03,15.3,7.9,18.5,15.24
Certificate of Deposit (CD),"A certificate of deposit (CD) is a product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time. Almost all consumer financial institutions offer them, although it’s up to each bank which CD terms it wants to offer, how much higher the rate will be compared to the bank’s savings and money market products, and what penalties it applies for early withdrawal.",investopedia,1,38.32,18.1,0,11.97,22.6,11.06,24.5,20.3
Certificate of Insurance (COI),"A certificate of insurance (COI) is issued by an insurance company or broker. The COI verifies the existence of an insurance policy and summarizes the key aspects and conditions of the policy. For example, a standard COI lists the policyholder's name, policy effective date, the type of coverage, policy limits, and other important details of the policy.",investopedia,1,35.27,13.1,17.5,11.95,12.7,10.12,15.83333333,15.32
Certificate of Origin (CO),"A certificate of origin (CO) is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export. For example, a good may be marked ""Made in the USA"" or ""Made in China"".",investopedia,1,54.93,9.6,13,10.03,10.3,9.6,11.16666667,13.05
Certified Financial Planner (CFP),"Certified Financial Planner (CFP) is a formal recognition of expertise in the areas of financial planning, taxes, insurance, estate planning, and retirement (such as with 401(k)s).",investopedia,1,28.17,15.8,0,15.15,19.6,14.64,20,19.63
Certified Information Systems Auditor (CISA),"Certified Information Systems Auditor (CISA) refers to a designation issued by the Information Systems Audit and Control Association (ISACA). The designation is the global standard for professionals who have a career in information systems, in particular, auditing, control, and security. CISA holders demonstrate to employers that they have the knowledge, technical skills, and proficiency to meet the dynamic challenges facing modern organizations.",investopedia,1,16.62,16.1,16.7,17.87,18.4,12.3,16,17.31
Certified Management Accountant (CMA),Certified management accountant (CMA) is an accounting designation that signifies expertise in financial accounting and strategic management. The professionals who obtain this designation are colloquially known as CMAs and are qualified for a variety of roles ranging from financial controller to chief financial officer (CFO).,investopedia,1,14.8,16.8,0,18.74,19.4,11.77,20.25,19.67
Certified Public Accountant (CPA),"A certified public accountant (CPA) is a designation given by the American Institute of Certified Public Accountants (AICPA) to individuals that pass the Uniform CPA Examination and meet the education and experience requirements. The CPA designation helps enforce professional standards in the accounting industry. Other countries have certifications equivalent to the CPA designation, notably, the chartered accountant (CA) designation.",investopedia,1,9.18,16.9,18.2,18.91,18.6,11.04,16.83333333,18.05
Ceteris Paribus,"Ceteris paribus, literally ""holding other things constant,"" is a Latin phrase that is commonly translated into English as ""all else being equal."" A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same.",investopedia,1,37.13,14.4,0,13.81,17.3,11.4,17.75,16.47
Chairman,"A chair is an executive elected by a company's board of directors who is responsible for presiding over board or committee meetings. A chair often sets the agenda and has significant sway as to how the board votes. The chair ensures that meetings run smoothly and remain orderly, and they work at achieving a consensus in board decisions.",investopedia,1,51.89,10.8,13.6,10.33,11,9.77,13,14.62
Channel Stuffing,"Channel stuffing is a deceptive business practice used by a company to inflate its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they are able to sell to the public. Channel stuffing typically would take place just before quarter-end or year-end so that management, fearful of bad consequences to their compensation, can ""make their numbers.""",investopedia,1,40.01,15.4,0,15.1,20.5,10.01,20,17.56
Chapter 11 Definition,"Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets, and for that reason is known as ""reorganization"" bankruptcy.",investopedia,1,34.6,15.4,0,12.83,17.8,10.1,18,14.06
Chart of Accounts (COA),"A chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.",investopedia,1,37.64,14.2,0,12.6,15.7,9.61,18.5,16.4
Chartered Accountant (CA),"A chartered accountant (CA) is an international accounting designation granted to accounting professionals in many countries around the world, aside from the United States. In the United States, the equivalent to the CA designation is a certified public accountant (CPA).",investopedia,1,34.26,13.5,0,15.2,15.9,9.37,15,15
Chartered Financial Analyst (CFA),"A chartered financial analyst (CFA) is a globally-recognized professional designation given by the CFA Institute, (formerly the AIMR (Association for Investment Management and Research)), that measures and certifies the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas, such as accounting, economics, ethics, money management, and security analysis.",investopedia,1,0.76,20.1,0,18.86,23,13.77,25,26.2
Chartered Retirement Planning Counselor (CRPC),"A Chartered Retirement Planning Counselor (CRPC) is someone with a professional financial planning designation awarded by the College for Financial Planning. Individuals may earn the CRPC designation by completing a study program and passing a final multiple-choice examination. Successful applicants earn the right to use the CRPC designation with their names for two years, which can improve job opportunities, professional reputation, and pay. Every two years, CRPC professionals must complete 16 hours of continuing education and pay a small fee to continue using the designation.",investopedia,1,24.48,15.1,16.2,16.24,17,10.45,15.875,16.05
Chattel Mortgage,"A chattel mortgage is a loan arrangement in which an item of the movable personal property acts as security for a loan. The movable property, or chattel, guarantees the loan, and the lender holds an interest in it. A chattel mortgage differs from a conventional mortgage in which the loan is secured by a lien on the real stationary property.",investopedia,1,59.64,9.9,13.6,9.69,10.9,9.1,13.33333333,13.33
Cheapest to Deliver (CTD),"The term cheapest to deliver (CTD) refers to the cheapest security delivered in a futures contract to a long position to satisfy the contract specifications. It is relevant only for contracts that allow a variety of slightly different securities to be delivered. This is common in Treasury bond futures contracts, which typically specify that any treasury bond can be delivered so long as it is within a certain maturity range and has a certain coupon rate. The coupon rate is the rate of interest a bond issuer pays for the entire term of the security.",investopedia,1,47.32,12.6,14.9,10.62,13.2,9.64,16.125,14.99
Check,"A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The drawee, on the other hand, is the bank on which the check is drawn.",investopedia,1,75.24,8.1,8.8,5.28,8.2,7.41,11.66666667,10.4
Checking Account,"A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both.",investopedia,1,31.21,14.6,11.9,16.54,17.9,10.5,13.83333333,13.26
Checks and Balances,"Checks and balances are various procedures set in place to reduce mistakes, prevent improper behavior, or decrease the risk of centralization of power. Checks and balances usually ensure that no one person or department has absolute control over decisions, clearly define the assigned duties, and force cooperation in completing tasks. The term is most commonly used in the context of government.",investopedia,1,42.41,12.4,15,14.21,14.8,11.89,14.5,15.99
Chi Square Statistic,"A chi-square (χ2) statistic is a test that measures how a model compares to actual observed data. The data used in calculating a chi-square statistic must be random, raw, mutually exclusive, drawn from independent variables, and drawn from a large enough sample. For example, the results of tossing a fair coin meet these criteria.",investopedia,1,53.21,10.3,11.9,11.02,11.8,10.67,11.33333333,12.39
Chief Executive Officer (CEO),"A chief executive officer (CEO) is the highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors (the board) and corporate operations and being the public face of the company. A CEO is elected by the board and its shareholders.",investopedia,1,13.62,19.3,0,14.28,20.5,9.91,25,19.05
Chief Financial Officer (CFO),A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. The CFO's duties include tracking cash flow and financial planning as well as analyzing the company's financial strengths and weaknesses and proposing corrective actions.,investopedia,1,24.78,15,0,15.84,16.7,11.45,17,16.02
Chief Operating Officer (COO),The chief operating officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. The COO typically reports directly to the chief executive officer (CEO) and is considered to be second in the chain of command.,investopedia,1,24.27,15.2,0,13.34,15.1,9.84,16.75,16.04
Chief Technology Officer (CTO),"A chief technology officer (CTO) is the executive in charge of an organization's technological needs as well as its research and development (R&D). Also known as a chief technical officer, this individual examines the short- and long-term needs of an organization and utilizes capital to make investments designed to help the organization reach its objectives. The CTO usually reports directly to a company's chief information officer (CIO), but may also report to the chief executive officer (CEO) of the firm.",investopedia,1,27.45,16.1,18.6,13.12,17.4,10.09,20.66666667,18.18
Child Tax Credit,"The child tax credit is a tax benefit granted to American taxpayers for each qualifying dependent child. Designed to help taxpayers support their families, this credit has been greatly expanded by the American Rescue Plan Act of 2021. It is estimated that the new rules will reduce by 45% the number of American children living in poverty.",investopedia,1,42.55,14.4,0,11.38,16.3,10.04,13.16666667,16.31
Chinese Wall,"The term Chinese wall, as it is used in the business world, describes a virtual barrier intended to block the exchange of information between departments if it might result in business activities that are ethically or legally questionable. In the United States, corporations, brokerage firms, investment banks, and retail banks have used Chinese walls to describe situations where there is a need to maintain confidentiality in order to prevent conflicts of interest.",investopedia,1,26.48,18.5,0,14.63,22.5,10.9,25,22.18
Churn Rate,"The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions within a given time period. It is also the rate at which employees leave their jobs within a certain period. For a company to expand its clientele, its growth rate (measured by the number of new customers) must exceed its churn rate.",investopedia,1,59.13,10.1,12.2,10.15,11.6,8.31,12.75,12.1
Churning,Churning is the illegal and unethical practice by a broker of excessively trading assets in a client's account in order to generate commissions.,investopedia,1,31.21,14.6,0,13.52,15.3,12.33,16.5,17.9
Circular Flow Of Income,"The circular flow model demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products. In short, an economy is an endless circular flow of money.",investopedia,1,58.58,8.2,11.2,10.37,8.6,9.25,7.333333333,9.29
Classical Economics,"Classical economics is a broad term that refers to the dominant school of thought for economics in the 18th and 19th centuries. Most consider Scottish economist Adam Smith the progenitor of classical economic theory. However, Spanish scholastics and French physiocrats made earlier contributions. Other notable contributors to classical economics include David Ricardo, Thomas Malthus, Anne Robert Jacques Turgot, John Stuart Mill, Jean-Baptiste Say, and Eugen Böhm von Bawerk.",investopedia,1,45.76,11.1,15.2,16.82,15.8,13.54,13,13.86
Clawback,"A clawback is a contractual provision whereby money already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty.",investopedia,1,37.64,14.2,0,12.48,15.4,10.56,17.5,18
Clayton Antitrust Act,"The Clayton Antitrust Act is a piece of legislation passed by the U.S. Congress in 1914. The act defines unethical business practices, such as price-fixing and monopolies, and upholds various rights of labor. The Federal Trade Commission (FTC) and the Antitrust Division of the U.S. Department of Justice (DOJ) enforce the provisions of the Clayton Antitrust Act, which continue to affect American business practices today.",investopedia,1,49.82,9.5,12,12.51,11.1,11.08,7.9,11.35
Clearing,"Clearing is the procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer. Often with clearing, a specialized organization acts as the intermediary and assumes the role of tacit buyer and seller to reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and sell orders in the market. It provides smoother and more efficient markets as parties can make transfers to the clearing corporation rather than to each individual party with whom they transact.",investopedia,1,48.13,12.3,13,12.89,14.7,9.93,14.5,14.42
Close Position,"Closing a position refers to executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. Closing a long position in a security would entail selling it, while closing a short position in a security would involve buying it back. Taking offsetting positions in swaps is also very common to eliminate exposure prior to maturity.",investopedia,1,24.07,15.3,17.1,12.71,14.1,10.3,16.83333333,16.06
Closed-End Fund,"A closed-end fund is a portfolio of pooled assets that raises a fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange. Other names for a closed-end fund include the ""closed-end investment"" and ""closed-end mutual fund.""",investopedia,1,65.05,9.9,0,11.26,14.2,10.27,14,12.68
Closed Economy,"A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country. The goal of a closed economy is to provide domestic consumers with everything they need from within the country's borders.",investopedia,1,61.67,9.1,12.5,12.82,12.8,9.21,11.66666667,10.9
Cloud Computing,"Cloud computing is the delivery of different services through the Internet. These resources include tools and applications like data storage, servers, databases, networking, and software.",investopedia,1,41.87,10.5,0,18.26,15.5,13.1,8.25,13
Chicago Board Options Exchange (CBOE),"Founded in 1973, the Cboe Options Exchange is the world's largest options exchange with contracts focusing on individual equities, indexes, and interest rates. Originally known as the Chicago Board Options Exchange (CBOE), the exchange changed its name in 2017 as part of a rebranding effort by its holding company, Cboe Global Markets. Traders refer to the exchange as the Cboe (""see-bo""). Cboe is also the originator of the Cboe Volatility Index (VIX) which is the most widely used and recognized proxy for market volatility.",investopedia,1,43.06,14.2,15,12.65,17.7,11.04,18.33333333,15.96
Chicago Mercantile Exchange (CME),"The Chicago Mercantile Exchange (CME), colloquially known as the Chicago Merc, is an organized exchange for the trading of futures and options. The CME trades futures, and in most cases options, in the sectors of agriculture, energy, stock indices, foreign exchange, interest rates, metals, real estate, and even weather.",investopedia,1,46.61,12.8,0,13.7,17.1,11.3,15.25,14.7
Coase Theorem,"The Coase Theorem is a legal and economic theory developed by economist Ronald Coase regarding property rights, which states that where there are complete competitive markets with no transaction costs and an efficient set of inputs and outputs, an optimal decision will be selected.",investopedia,1,18.36,21.6,0,14.7,26.1,13.71,35,29.42
Code of Ethics,"A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values, and the standards to which the professional is held.",investopedia,1,32.57,16.2,0,13.94,18.9,10.65,20.5,18
Coefficient of Determination,"The coefficient of determination is a statistical measurement that examines how differences in one variable can be explained by the difference in a second variable, when predicting the outcome of a given event. In other words, this coefficient, which is more commonly known as R-squared (or R2), assesses how strong the linear relationship is between two variables, and is heavily relied on by researchers when conducting trend analysis. To cite an example of its application, this coefficient may contemplate the following question: if a woman becomes pregnant on a certain day, what is the likelihood that she would deliver her baby on a particular date in the future? In this scenario, this metric aims to calculate the correlation between two related events: conception and birth.",investopedia,1,31.25,16.7,18,13.12,19.1,10.87,24,19.88
Coefficient of Variation (CV),"The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean. The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from one another.",investopedia,1,30.54,17,0,11.15,17.6,9.17,23,17.8
CoInsurance,"Coinsurance is the amount, generally expressed as a fixed percentage, an insured must pay against a claim after the deductible is satisfied. In health insurance, a coinsurance provision is similar to a copayment provision, except copays require the insured to pay a set dollar amount at the time of the service. Some property insurance policies contain coinsurance provisions.",investopedia,1,33.58,15.8,0,14.63,19.1,10.25,14.33333333,18.5
Collateral,"The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.",investopedia,1,69.62,8.1,11.2,7.43,8.3,8.39,11.25,10.1
Collateralized Debt Obligation (CDO),"A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset. These assets become the collateral if the loan defaults.",investopedia,1,52.19,10.7,12.5,11.72,12.2,10.67,12.16666667,12.51
Collateralized Loan Obligation (CLO),"A collateralized loan obligation (CLO) is a single security backed by a pool of debt. The process of pooling assets into a marketable security is called securitization. Collateralized loan obligations (CLO) are often backed by corporate loans with low credit ratings or loans taken out by private equity firms to conduct leveraged buyouts. A collateralized loan obligation is similar to a collateralized mortgage obligation (CMO), except that the underlying debt is of a different type and character—a company loan instead of a mortgage.",investopedia,1,26.44,16.5,17.1,14.16,18.4,10.53,14.875,15.9
Collection Agency,"A collection agency is a company used by lenders or creditors to recover funds that are past due, or from accounts that are in default. Often, a creditor will hire a collection agency after it has made multiple failed attempts to collect its receivables. A lender may outsource the debt-collection activity to a third party (the collection agency), or it may have an internal department or a debt-collection subsidiary that would handle the job.",investopedia,1,46.4,12.9,15.5,11.38,14.6,9.34,17,14.74
Combined Loan-To-Value Ratio (CLTV Ratio),The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property. Lenders use the CLTV ratio to determine a prospective home buyer's risk of default when more than one loan is used.,investopedia,1,45.77,17.3,0,9.01,21,10.23,12.5,18.7
Combined Ratio,"The combined ratio, also called ""the combined ratio after policyholder dividends ratio,"" is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by the earned premium.",investopedia,1,7.19,25.9,0,13.36,30.8,11.25,19.25,29.27
Command Economy,"A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale. It also determines investments and incomes.",investopedia,1,67.08,9.1,0,10.73,12.5,7.69,13,11.26
Commerce,"Commerce is the conduct of trade among economic agents. Generally, commerce refers to the exchange of goods, services, or something of value, between businesses or entities. From a broad perspective, nations are concerned with managing commerce in a way that enhances the well-being of citizens, by providing jobs and producing beneficial goods and services.",investopedia,1,44.75,11.5,14.1,14.09,14.2,10.09,12.66666667,14.61
Commercial,"Commercial relates to commerce or general business activity. In the investment field, the term commercial is used to refer to commercial trading or an entity engaged in business activities that are hedged by positions in the futures or options markets. Charities and non-profits, as well as government agencies usually operate on a non-commercial basis.",investopedia,1,36.28,12.7,15.9,14.09,13.9,10.96,14,13.87
Commercial Bank,"The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking.",investopedia,1,39.16,13.6,0,16.19,18,11.52,16.25,15.36
Commercial Loan,"A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank. It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford. Expensive upfront costs and regulatory hurdles often prevent small businesses from having direct access to bond and equity markets for financing. This means that, not unlike individual consumers, smaller businesses must rely on other lending products, such as lines of credit, unsecured loans or term loans.",investopedia,1,32.43,14.2,15.2,13.87,15.3,11.25,15.375,15.16
Commercial Mortgage-Backed Security (CMBS),Commercial mortgage-backed securities (CMBS) are fixed-income investment products that are backed by mortgages on commercial properties rather than residential real estate. CMBS can provide liquidity to real estate investors and commercial lenders alike.,investopedia,1,29.35,13.3,0,20.41,18.5,12.11,13.25,13.87
Commercial Paper,"Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities. Maturities on commercial paper typically last several days, and rarely range longer than 270 days. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates.",investopedia,1,14.12,19.1,0,17.13,22.5,11.97,24.25,20.85
Commercial Real Estate,"Commercial real estate (CRE) is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from from a single storefront to a huge shopping center.",investopedia,1,33.24,13.8,14.6,14.97,15.9,9.44,14.5,14.75
Commercialization,"Commercialization is the process of bringing new products or services to market. The broader act of commercialization entails production, distribution, marketing, sales, customer support, and other key functions critical to achieving the commercial success of the new product or service.",investopedia,1,34.26,13.5,0,17.69,17.8,11.73,13.5,14
Commingled Fund,A commingled fund is a portfolio consisting of assets from several accounts that are blended together. Commingled funds exist to reduce the costs of managing the constituent accounts separately.,investopedia,1,39.84,11.3,0,14.96,12.8,11.98,11.25,12.7
Commission,A commission is a service charge assessed by a broker or investment advisor for providing investment advice or handling purchases and sales of securities for a client.,investopedia,1,35.61,15,0,13.12,16.7,11.99,20.5,19.69
Commodity,"A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers.",investopedia,1,54.52,9.8,12.5,10.26,9.9,8.89,11,12.28
Commodity Futures Contract,A commodity futures contract is an agreement to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future. Commodity futures can be used to hedge or protect an investment position or to bet on the directional move of the underlying asset.,investopedia,1,45.59,13.2,0,9.29,12.8,8.93,17.75,15.69
Commodity Trading Advisor (CTA),"A commodity trading advisor (CTA) is an individual or firm that provides individualized advice regarding the buying and selling of futures contracts, options on futures, or certain foreign exchange contracts. Commodity trading advisors require a commodity trading advisor (CTA) registration as mandated by the National Futures Association, the self-regulatory organization for the industry.",investopedia,1,-6.19,20.7,0,18.92,21.9,12.4,21.25,20.41
Common Equity Tier 1 (CET1),Common Equity Tier 1 (CET1) is a component of Tier 1 capital that is mostly common stock held by a bank or other financial institution. It is a capital measure introduced in 2014 as a precautionary means to protect the economy from a financial crisis. It is expected that all banks should meet the minimum required CET1 ratio of 4.5% by 2019.,investopedia,1,58.92,10.2,14.6,8.65,10.5,10.01,14.33333333,14.09
Common Law,"Common law is a body of unwritten laws based on legal precedents established by the courts. Common law influences the decision-making process in unusual cases where the outcome cannot be determined based on existing statutes or written rules of law. The U.S. common-law system evolved from a British tradition that spread to North America during the 17th- and 18th-century colonial period. Common law is also practiced in Australia, Canada, Hong Kong, India, New Zealand, and the United Kingdom.",investopedia,1,45.09,13.4,14.6,13.23,17,12.21,12.75,15.53
Common Size Financial Statement,"A common size financial statement displays items as a percentage of a common base figure, total sales revenue, for example. This type of financial statement allows for easy analysis between companies, or between periods, for the same company. However, if the companies use different accounting methods, any comparison may not be accurate.",investopedia,1,37,12.4,15.5,13.45,13.2,10.26,13.33333333,13.84
Common Size Income Statement,"A common size income statement is an income statement in which each line item is expressed as a percentage of the value of revenue or sales. It is used for vertical analysis, in which each line item in a financial statement is represented as a percentage of a base figure within the statement.",investopedia,1,53.04,12.4,0,9.06,13.3,8.53,16.25,14.37
Common Stock,"Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. This form of equity ownership typically yields higher rates of return long term. However, in the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders, and other debtholders are paid in full. Common stock is reported in the stockholder's equity section of a company's balance sheet.",investopedia,1,47.18,10.6,14.3,13.51,12.3,10.08,11.6,13.42
Community Reinvestment Act (CRA),"The Community Reinvestment Act (CRA) is a federal law enacted in 1977 to encourage depository institutions to meet the credit needs of low- and moderate-income neighborhoods. The CRA requires federal regulators to assess how well each bank fulfills its obligations to these communities. This score is used to evaluate applications for future approval of bank mergers, charters, acquisitions, branch openings, and deposit facilities.",investopedia,1,33.24,13.8,16.7,15.84,16.8,11.7,16.16666667,18.56
Comparable Company Analysis (CCA),"A comparable company analysis (CCA) is a process used to evaluate the value of a company using the metrics of other businesses of similar size in the same industry. Comparable company analysis operates under the assumption that similar companies will have similar valuation multiples, such as EV/EBITDA. Analysts compile a list of available statistics for the companies being reviewed and calculate the valuation multiples in order to compare them.",investopedia,1,22.75,15.8,19.3,14.39,16,10.04,19.5,17.32
Comparative Advantage,Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.,investopedia,1,30.7,14.8,0,13.12,15.1,10.51,17.75,16.21
Comparative Market Analysis,"A comparative market analysis (CMA) is an estimate of a home's value based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and, less commonly, to help buyers make competitive offers. Individuals can perform their own comparative market analysis by researching comparable properties (known as ""comps"") on real estate listing sites, such as realtor.com.",investopedia,1,30.5,14.9,16.3,13.99,16.5,11.93,17.16666667,16.8
Compensatory Damages,"Compensatory damages are money awarded to a plaintiff to compensate for damages, injury, or another incurred loss. Compensatory damages are awarded in civil court cases where loss has occurred as a result of the negligence or unlawful conduct of another party.",investopedia,1,33.75,13.6,0,13.29,14.1,10.05,13.75,12.1
Competitive Intelligence,"Competitive intelligence, sometimes referred to as corporate intelligence, refers to the ability to gather, analyze, and use information collected on competitors, customers, and other market factors that contribute to a business's competitive advantage. Competitive intelligence is important because it helps businesses understand their competitive environment and the opportunities and challenges it presents. Businesses analyze the information to create effective and efficient business practices.",investopedia,1,-0.61,18.6,19.6,22.04,21.8,10.94,18.83333333,17.92
Competitive Advantage,Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.,investopedia,1,43.22,12.1,0,13.23,13.3,10.68,13.25,13.95
Complement,"A complementary good or service is an item used in conjunction with another good or service. Usually, the complementary good has little to no value when consumed alone, but when combined with another good or service, it adds to the overall value of the offering. A product can be considered a complement when it shares a beneficial relationship with another product offering, for example, an iPhone and the apps used with it.",investopedia,1,47.12,12.7,15.5,10.91,13.7,8.77,16.66666667,14.6
Compliance Officer,A compliance officer is an employee of a company that ensures the firm is in compliance with its outside regulatory and legal requirements as well as internal policies and bylaws. The chief compliance officer is usually the head of a firm's compliance department.,investopedia,1,32.73,14,0,12.13,13.5,9.48,17.25,15.11
Compound Annual Growth Rate (CAGR),"Compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s life span.",investopedia,1,36.29,18.9,0,10.69,22.5,10.18,27.5,21.85
Compound Interest,"Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th-century Italy, compound interest can be thought of as ""interest on interest,"" and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.",investopedia,1,30.03,17.1,0,12.95,19.6,8.89,25.25,18.54
Compounding,"Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth, where only the principal earns interest each period.",investopedia,1,25.08,14.9,17.1,18.27,18.6,11.28,16.33333333,16.67
Comprehensive Income,"Comprehensive income is the variation in a company's net assets from non-owner sources during a specific period. Comprehensive income includes net income and unrealized income, such as unrealized gains or losses on hedge/derivative financial instruments and foreign currency transaction gains or losses. Comprehensive income provides a holistic view of a company's income not fully captured on the income statement.",investopedia,1,26.1,14.5,15.9,17.06,16.9,10.77,14.83333333,15.34
Comps,"The term comps, short for comparables, carries different meanings depending on the industry and context, but generally entails a comparison of financial metrics and other factors to quantify performance or determine valuation.",investopedia,1,5.16,20.5,0,17.94,23.3,13.61,27,25.3
Conditional Probability,"Conditional probability is defined as the likelihood of an event or outcome occurring, based on the occurrence of a previous event or outcome. Conditional probability is calculated by multiplying the probability of the preceding event by the updated probability of the succeeding, or conditional, event.",investopedia,1,6.34,18,0,15.73,16.9,10.02,19.25,18.78
Conditional Value at Risk (CVaR),"Conditional Value at Risk (CVaR), also known as the expected shortfall, is a risk assessment measure that quantifies the amount of tail risk an investment portfolio has. CVaR is derived by taking a weighted average of the “extreme” losses in the tail of the distribution of possible returns, beyond the value at risk (VaR) cutoff point. Conditional value at risk is used in portfolio optimization for effective risk management.",investopedia,1,39.67,13.4,15.5,12.36,14.6,9.81,16.16666667,15.58
Confidence Interval,"A confidence interval, in statistics, refers to the probability that a population parameter will fall between a set of values for a certain proportion of times.",investopedia,1,28.17,15.8,0,12.48,16,11,20,21.17
Conflict of Interest,"A conflict of interest occurs when an entity or individual becomes unreliable because of a clash between personal (or self-serving) interests and professional duties or responsibilities. Such a conflict occurs when a company or person has a vested interest—such as money, status, knowledge, relationships, or reputation—which puts into question whether their actions, judgment, and/or decision-making can be unbiased. When such a situation arises, the party is usually asked to remove themselves, and it is often legally required of them.",investopedia,1,19.4,17.1,16.7,15.61,19.1,11.34,18.83333333,17.61
Conflict Theory,"Conflict theory, first purported by Karl Marx, is a theory that society is in a state of perpetual conflict because of competition for limited resources. Conflict theory holds that social order is maintained by domination and power, rather than by consensus and conformity. According to conflict theory, those with wealth and power try to hold on to it by any means possible, chiefly by suppressing the poor and powerless. A basic premise of conflict theory is that individuals and groups within society will work to try to maximize their own wealth and power.",investopedia,1,47.83,12.4,15.9,11.84,14,9.21,16.625,15.34
Conglomerate,"A conglomerate is a corporation that is made up of a number of different, sometimes unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies all of whom conduct business separately and independently.",investopedia,1,25.8,14.6,0,13.17,13.8,9.37,15.5,16
Consignment,"Consignment is an arrangement in which goods are left in the possession of an authorized third party to sell. Typically, the consignor receives a percentage of the revenue from the sale (sometimes a very large percentage) in the form of commission.",investopedia,1,59.13,10.1,0,11.43,12.7,8.5,14.25,15.03
Consolidate,"To consolidate (consolidation) is to combine assets, liabilities, and other financial items of two or more entities into one. In the context of financial accounting, the term consolidate often refers to the consolidation of financial statements wherein all subsidiaries report under the umbrella of a parent company. Consolidation also refers to the union of smaller companies into larger companies through mergers and acquisitions (M&A).",investopedia,1,24.48,15.1,16.3,15.72,16.8,9.87,16,13.52
Consolidated Omnibus Budget Reconciliation Act (COBRA),"The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a landmark federal law, passed in 1985, that provides for continuing group health insurance coverage for some employees and their families after a job loss or other qualifying event.",investopedia,1,8.54,21.3,0,15.15,23.5,12.73,27.5,24.53
Consolidation,"Consolidation in technical analysis refers to an asset oscillating between a well-defined pattern of trading levels. Consolidation is generally interpreted as market indecisiveness, which ends when the asset's price moves above or below the trading pattern. A consolidation pattern could be broken for several reasons, such as the release of materially important news or the triggering of a succession of limit orders.",investopedia,1,25.08,14.9,15.5,15.49,16,10.52,15,14.73
Construction Loan,"A construction loan (also known as a “self-build loan"") is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered relatively risky, construction loans usually have higher interest rates than traditional mortgage loans.",investopedia,1,58.32,10.4,13.6,13,14.6,9.63,14,12.9
Consumer Credit,Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.,investopedia,1,69.28,6.2,0,8.04,6,8.67,4.75,6.1
Consumer Discretionary,"Consumer discretionary is a term for classifying goods and services that are considered non-essential by consumers, but desirable if their available income is sufficient to purchase them. Examples of consumer discretionary products can include durable goods, high-end apparel, entertainment, leisure activities, and automobiles.",investopedia,1,24.27,15.2,0,20.07,20.6,12.41,16.25,18.83
Consumer Goods,"Consumer goods are products bought for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see stocked on the store shelf. Clothing, food, and jewelry are all examples of consumer goods. Basic or raw materials, such as copper, are not considered consumer goods because they must be transformed into usable products.",investopedia,1,54.42,9.8,11.7,13.05,12.5,8.71,10.625,12.09
Consumer Packaged Goods (CPG),"Consumer packaged goods (CPG) are items used daily by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products.",investopedia,1,35.61,15,0,17.82,21.9,13.16,18.5,16.73
Consumer Surplus,Consumer surplus is an economic measurement of consumer benefits. A consumer surplus happens when the price that consumers pay for a product or service is less than the price they're willing to pay. It's a measure of the additional benefit that consumers receive because they're paying less for something than what they were willing to pay.,investopedia,1,60.95,9.4,10.5,11.6,11.9,7.67,11,11.05
Consumer Staples,"The term consumer staples refers to a set of essential products used by consumers. This category includes things like foods and beverages, household goods, and hygiene products as well as alcohol and tobacco. These goods are those products that people are unable—or unwilling—to cut out of their budgets regardless of their financial situation.",investopedia,1,53.51,10.2,13,13.86,13.4,10.17,11.83333333,12.36
Consumerism,"Consumerism is the idea that increasing the consumption of goods and services purchased in the market is always a desirable goal and that a person's wellbeing and happiness depend fundamentally on obtaining consumer goods and material possessions. In an economic sense, it is related to the predominantly Keynesian idea that consumer spending is the key driver of the economy and that encouraging consumers to spend is a major policy goal. From this point of view, consumerism is a positive phenomenon that fuels economic growth.",investopedia,1,34.6,15.4,17.5,13.41,17.6,9.91,20.33333333,19.3
Consumption Function,"The consumption function, or Keynesian consumption function, is an economic formula that represents the functional relationship between total consumption and gross national income. It was introduced by British economist John Maynard Keynes, who argued the function could be used to track and predict total aggregate consumption expenditures.",investopedia,1,22.24,16,0,18.92,20,11.86,19.25,19.61
Contingency,"A contingency is a potential occurrence of a negative event in the future, such as an economic recession, natural disaster, fraudulent activity, terrorist attack, or a pandemic. In 2020, businesses were hit with the coronavirus pandemic forcing many employees to have to work remotely. As a result, companies needed to implement a remote work strategy. However, for some businesses, working remotely wasn't an option, which led to the implementation of enhanced safety measures for employees and customers to prevent the spread of the virus.",investopedia,1,33.24,13.8,17.4,13.4,14.8,11.07,16.75,17.92
Contingent Asset,"A contingent asset is a potential economic benefit that is dependent on future events out of a company’s control. Not knowing for certain whether these gains will materialize, or being able to determine their precise economic value, means these assets cannot be recorded on the balance sheet. However, they can be reported in the accompanying notes of financial statements, provided that certain conditions are met. A contingent asset is also known as a potential asset.",investopedia,1,43.93,11.8,14.9,12.88,13,10.04,13.625,14.45
Contingent Beneficiary,"A contingent beneficiary is specified by an insurance contract holder or retirement account owner as the person or entity receiving proceeds if the primary beneficiary is deceased, unable to be located, or refuses the inheritance at the time the proceeds are to be paid. A contingent beneficiary is entitled to insurance proceeds or retirement assets only if certain predetermined conditions are met at the time of the insured's death, such as information found in a will.",investopedia,1,15.99,20.5,0,13.12,22.2,9.88,29,23.09
Contingent Convertible,"Contingent convertibles (CoCos) are a debt instrument issued by European financial institutions. Contingent convertibles work in a fashion similar to traditional convertible bonds. They have a specific strike price that once breached, can convert the bond into equity or stock. The primary investors for CoCos are individual investors in Europe and Asia and private banks.",investopedia,1,40.55,11,14.2,14.9,12.7,11.79,10.625,14.97
Contingent Liability,A contingent liability is a liability that may occur depending on the outcome of an uncertain future event. A contingent liability is recorded if the contingency is likely and the amount of the liability can be reasonably estimated. The liability may be disclosed in a footnote on the financial statements unless both conditions are not met.,investopedia,1,27.11,14.1,15.5,12.01,12,9.36,14,13.91
Contingent Value Rights (CVR),"The term contingent value right (CVR) refers to a right often granted to shareholders of a company facing restructuring or a buyout. These rights ensure that the shareholders get certain benefits if a specific event occurs, usually within a specified time frame. These rights are similar to options because they frequently have an expiration date, beyond which the rights to the additional benefits will not apply. CVRs are usually related to the performance of a company's stock.",investopedia,1,51.89,10.8,15.2,12.76,13.2,10.13,14.125,14.99
Contra Account,"A contra account is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account's natural balance is the opposite of the associated account. If a debit is the natural balance recorded in the related account, the contra account records a credit. For example, the contra account for a fixed asset is accumulated depreciation.",investopedia,1,46.47,10.8,12.6,9.97,9.6,9.06,10.875,10.83
Contract For Differences (CFD),A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled. There is no delivery of physical goods or securities with CFDs.,investopedia,1,43.22,12.1,0,13.81,14.2,10.27,14.75,14.98
Contractionary Policy,Contractionary policy is a monetary measure referring either to a reduction in government spending—particularly deficit spending—or a reduction in the rate of monetary expansion by a central bank. It is a type of macroeconomic tool designed to combat rising inflation or other economic distortions created by central banks or government interventions. Contractionary policy is the polar opposite of expansionary policy.,investopedia,1,17.34,15.8,18.6,17.23,16.8,10.68,17.33333333,18
Contrarian,"Contrarian investing is an investment style in which investors purposefully go against prevailing market trends by selling when others are buying, and buying when most investors are selling.",investopedia,1,34.6,15.4,0,16.6,20.2,11.23,19,18.34
Contributed Capital,"Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock. Investors make capital contributions when a company issues equity shares based on a price that shareholders are willing to pay for them. The total amount of contributed capital or paid-in-capital represents their stake or ownership in the company.",investopedia,1,42.41,12.4,16.3,13.34,14.2,8.01,15.5,12.05
Contribution Margin,The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.,investopedia,1,38.82,11.7,0,12.93,11.8,12.55,10.75,12.65
Controller,"A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities, within a company. A financial controller typically reports to a firm's chief financial officer (CFO), although these two positions may be combined in smaller businesses. The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll.",investopedia,1,5.83,18.2,19.9,19.73,20.9,12.1,20.16666667,20.21
Conventional Mortgage,"A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity. Instead, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies. However, some conventional mortgages can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).",investopedia,1,32.22,14.2,16.3,17.23,18.6,10.95,16.33333333,14.25
Convertible Preferred Stock,"Convertible preferred stocks are preferred shares that include an option for the holder to convert the shares into a fixed number of common shares after a predetermined date. Most convertible preferred stock is exchanged at the request of the shareholder, but sometimes there is a provision that allows the company, or issuer, to force the conversion. The value of a convertible preferred stock is ultimately based on the performance of the common stock.",investopedia,1,46.81,12.8,13.6,12.89,15.4,9.38,15.5,13.56
Cook the Books,"Cook the books is a slang term for using accounting tricks to make a company's financial results look better than they really are. Typically, cooking the books involves manipulating financial data to inflate a company's revenue and deflate its expenses in order to pump up its earnings or profit.",investopedia,1,38.15,14,0,11.78,14.7,10.65,16.75,14.7
Copyright,"Copyright refers to the legal right of the owner of intellectual property. In simpler terms, copyright is the right to copy. This means that the original creators of products and anyone they give authorization to are the only ones with the exclusive right to reproduce the work.",investopedia,1,64,8.2,11.2,10.55,9.7,9.12,8.833333333,11.39
Core Competencies,"Core competencies are the resources and capabilities that comprise the strategic advantages of a business. A modern management theory argues that a business must define, cultivate, and exploit its core competencies in order to succeed against the competition.",investopedia,1,35.27,13.1,0,16.01,15.6,11.23,13.5,14.97
Corporate Bond,"A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate. When the bond expires, or ""reaches maturity,"" the payments cease and the original investment is returned.",investopedia,1,58.62,10.3,13,9.52,11.4,10.69,13.5,12.84
Corporate Charter,"A corporate charter, also known as a ""charter"" or ""articles of incorporation,"" is a written document filed with the Secretary of State (or registrar in Canada) by the founders of a corporation. It details the major components of a company, such as its objectives, structure, and planned operations. If approved by the state, the company becomes a legal corporation.",investopedia,1,43.02,12.2,15,11.55,13,9.97,14.16666667,14.66
Corporate Citizenship,"Corporate citizenship involves the social responsibility of businesses and the extent to which they meet legal, ethical, and economic responsibilities, as established by shareholders.",investopedia,1,-3.65,19.7,0,20.72,22,13.38,21,24.6
Corporate Culture,"Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires. A company's culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction, and every other aspect of operations.",investopedia,1,20.72,16.6,18.2,17.06,19.7,12.03,19.5,19.6
Corporate Finance,"Corporate finance is the division of finance that deals with how corporations deal with funding sources, capital structuring, and investment decisions. Corporate finance is primarily concerned with maximizing shareholder value through long and short-term financial planning and the implementation of various strategies. Corporate finance activities range from capital investment decisions to investment banking.",investopedia,1,11.21,16.1,17.9,21.05,19.3,11.07,15.5,16.89
Corporate Governance,"Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.",investopedia,1,15.31,16.6,0,19.49,20.7,12.98,19.5,21.53
Corporate Hierarchy,"The term corporate hierarchy refers to the arrangement and organization of individuals within a corporation according to power, status, and job function. In general, a hierarchy is any system or organization in which people or groups are ranked one above the other according to status or authority. While most corporations and businesses have hierarchies, they can also be part of any organization, including governments and any organized religion.",investopedia,1,23.05,15.7,17.9,14.92,16.4,9.87,18,17.9
Corporate Social Responsibility (CSR),"Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.",investopedia,1,-24.63,29.9,0,18.76,34.6,12.52,21.75,31.01
Corporate Tax,"A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company's taxable income, which includes revenue minus cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs.",investopedia,1,31.21,14.6,0,13.41,16.2,11.64,16.5,17.03
Correction,"In investing, a correction is a decline of 10% or more in the price of a security from its most recent peak. Corrections can happen to individual assets, like an individual stock or bond, or to an index measuring a group of assets.",investopedia,1,49.65,11.7,0,7.43,10,9.11,14.25,14.18
Correlation Coefficient,"The correlation coefficient is a statistical measure of the strength of the relationship between the relative movements of two variables. The values range between -1.0 and 1.0. A calculated number greater than 1.0 or less than -1.0 means that there was an error in the correlation measurement. A correlation of -1.0 shows a perfect negative correlation, while a correlation of 1.0 shows a perfect positive correlation. A correlation of 0.0 shows no linear relationship between the movement of the two variables.",investopedia,1,46.57,10.8,13.3,12.12,11.7,8.73,11.3,10.92
Correspondent Bank,"The term correspondent bank refers to a financial institution that provides services to another one—usually in another country. It acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank. Correspondent banks are most likely to be used by domestic banks to service transactions that either originate or are completed in foreign countries. Domestic banks generally use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.",investopedia,1,23.77,15.4,17.1,17.06,17.9,10.29,17,16.07
Cost Accounting,"Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense.",investopedia,1,41.37,16.9,0,10.17,19.8,10.92,26,20.46
Cost and Freight (CFR),"Cost and freight (CFR) is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier. With a cost and freight sale, the seller is not responsible for procuring marine insurance against the risk of loss or damage to the cargo during transit. Cost and freight is a term used strictly for cargo transported by sea or inland waterways.",investopedia,1,63.22,10.6,11.7,9.17,12.6,9.17,14.625,13.56
Cost Basis,"Cost basis is the original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value. The term can also be used to describe the difference between the cash price and the futures price of a given commodity.",investopedia,1,46.81,12.8,14.6,10.68,13.8,8.09,16.16666667,14.1
Cost-Benefit Analysis,"A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. Some consultants or analysts also build models to assign a dollar value on intangible items, such as the benefits and costs associated with living in a certain town.",investopedia,1,29.89,15.1,16.7,12.6,15,10.47,17.83333333,17.94
Cost of Capital,"Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. When analysts and investors discuss the cost of capital, they typically mean the weighted average of a firm's cost of debt and cost of equity blended together.",investopedia,1,47.12,12.7,0,11.55,14.3,9.76,17.5,14.6
Cost Control,"Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares the company's actual financial results with the budgeted expectations, and if actual costs are higher than planned, management has the information it needs to take action.",investopedia,1,37.13,14.4,0,14.74,17.6,12.33,18.75,18.83
Cost of Debt,"The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to the before-tax cost of debt, which is the company's cost of debt before taking taxes into account. However, the difference in the cost of debt before and after taxes lies in the fact that interest expenses are deductible.",investopedia,1,70.13,8,11.7,7.54,8.6,7.82,11.25,9.42
Cost of Equity,The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership. The traditional formula for the cost of equity is the dividend capitalization model and the capital asset pricing model (CAPM).,investopedia,1,43.43,12,14.9,11.49,12,9.72,13.875,13.43
Cost of Goods Sold (COGS),"Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.",investopedia,1,64.41,8.1,11.9,9.21,8.8,9.54,9,11.34
"Cost, Insurance and Freight (CIF)","Cost, insurance, and freight (CIF) is an expense paid by a seller to cover the costs, insurance, and freight of a buyer's order while it is in transit. The goods are exported to a port named in the sales contract. Until the goods are fully loaded onto a transport ship, the seller bears the costs of any loss or damage to the product. Further, if the product requires additional customs duties, export paperwork, or inspections or rerouting, the seller must cover these expenses. Once the freight loads, the buyer becomes responsible for all other costs. CIF is similar but not the same as carriage and insurance paid to (CIP).",investopedia,1,61.46,9.2,10.5,8.93,10.1,9.17,8.833333333,10.22
Cost of Labor,"The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect (overhead) costs. Direct costs include wages for the employees that produce a product, including workers on an assembly line, while indirect costs are associated with support labor, such as employees who maintain factory equipment.",investopedia,1,47.12,12.7,14.6,10.8,13.7,9.21,16,14.04
Cost of Living,"The cost of living is the amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time period. The cost of living is often used to compare how expensive it is to live in one city versus another. The cost of living is tied to wages. If expenses are higher in a city, such as New York, for example, salary levels must be higher so that people can afford to live in that city.",investopedia,1,67.08,9.1,10.1,6.15,8.6,7.87,12,10.3
Cost-of-Living Adjustment (COLA),"A cost-of-living adjustment (COLA) is an increase made to Social Security and Supplemental Security Income to counteract the effects of inflation. Cost-of-living adjustments are typically equal to the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W) for a specific period. So if someone received $10,000 in Social Security benefits last year and the COLA for this year is 4.1%, their benefits for this year would be $10,410. The COLA for 2021 is 1.3%, so that payment would rise to $10,130.",investopedia,1,42.04,14.6,15.9,12.2,17.8,11.06,19.5,17.12
Cost of Revenue,The term cost of revenue refers to the total cost of manufacturing and delivering a product or service to consumers. Cost of revenue information is found in a company's income statement. It is designed to represent the direct costs associated with the goods and services the company provides. The service industry often favors using the cost of revenue metric because it is a more comprehensive account of the various costs associated with selling a good or service.,investopedia,1,43.43,12,12.6,11.72,12,9.31,12.375,12.4
Cost Per Click (CPC),Cost per click (CPC) is an online advertising revenue model that websites use to bill advertisers based on the number of times visitors click on a display ad attached to their sites.,investopedia,1,47.46,14.6,0,10.17,16.8,12.63,19,16.55
Cost Per Thousand (CPM),"Cost per thousand (CPM), also called cost per mille, is a marketing term used to denote the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The ""M"" in CPM represents the word ""mille,"" which is Latin for ""thousands.""",investopedia,1,68.1,8.7,11.9,8.53,11.2,10.16,12.33333333,12
Cost-Plus Contract,"A cost-plus contract is an agreement to reimburse a company for expenses incurred plus a specific amount of profit, usually stated as a percentage of the contract’s full price. These type of contracts are primarily used in construction where the buyer assumes some of the risk but also provides a degree of flexibility to the contractor. In such a case, the party drawing up the contract anticipates that the contractor will make good on his or her promises to deliver, and agrees to pay extra so that the contractor can make additional profit upon completion.",investopedia,1,39.3,15.7,16.7,11.33,17.5,10.03,21.5,18.57
Cost-Push,"Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Higher costs of production can decrease the aggregate supply (the amount of total production) in the economy. Since the demand for goods hasn't changed, the price increases from production are passed onto consumers creating cost-push inflation.",investopedia,1,44.44,11.6,14.6,14.91,14.8,10.86,13.16666667,12.41
Cost-Volume-Profit (CVP),Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit.,investopedia,1,54.56,11.9,0,12.94,16.3,12.46,16.5,14.8
Cottage Industry,"A cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility. Cottage industries are defined by the amount of investment required to start, as well as the number of people employed. They often focus on the production of labor-intensive goods but face a significant disadvantage when competing with factory-based manufacturers that mass-produce goods.",investopedia,1,25.08,14.9,15.9,16.19,16.9,10.52,15.33333333,16.67
Counteroffer,"A counteroffer is a response given to an initial offer. A counteroffer means the original offer was rejected and replaced with another one. The counteroffer gives the original offerer three options: accept the counteroffer, reject it, or make another offer.",investopedia,1,41.06,10.8,13.6,12.57,10.9,8.24,9,9.32
Counterparty Risk,"Counterparty risk is the likelihood or probability that one of those involved in a transaction might default on its contractual obligation. Counterparty risk can exist in credit, investment, and trading transactions.",investopedia,1,30.36,12.9,0,16.47,14.6,11.54,12.25,16.52
Countertrade,"Countertrade is a reciprocal form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency. This type of international trade is more common in developing countries with limited foreign exchange or credit facilities. Countertrade can be classified into three broad categories: barter, counterpurchase, and offset.",investopedia,1,44.44,11.6,14.6,16.36,15.6,10,13.16666667,14.59
Coupon Rate,A coupon rate is the nominal yield paid by a fixed-income security. It is the annual coupon payments paid by the issuer relative to the bond's face or par value.,investopedia,1,64.71,8,0,6.89,6.8,10.17,9,11.33
Covenant,"In legal and financial terminology, a covenant is a promise in an indenture, or any other formal debt agreement, that certain activities will or will not be carried out or that certain thresholds will be met. Covenants in finance most often relate to terms in a financial contract, such as a loan document or bond issue stating the limits at which the borrower can further lend.",investopedia,1,46.44,15,0,10.28,17.4,10.54,20,16.84
Cover Letter,"A cover letter is a written document commonly submitted with a job application outlining the applicant's credentials and interest in the open position. Since a cover letter is often one of only two documents sent to a potential employer, a well- or poorly-written letter can impact whether the applicant is called for an interview.",investopedia,1,27.15,16.2,0,12.25,16.3,10.24,21,21.17
Coverage Ratio,"A coverage ratio, broadly, is a metric intended to measure a company's ability to service its debt and meet its financial obligations, such as interest payments or dividends. The higher the coverage ratio, the easier it should be to make interest payments on its debt or pay dividends. The trend of coverage ratios over time is also studied by analysts and investors to ascertain the change in a company's financial position.",investopedia,1,38.96,13.7,17.1,11.26,14,9.7,17.83333333,16.24
Covered Interest Rate Parity,"Covered interest rate parity refers to a theoretical condition in which the relationship between interest rates and the spot and forward currency values of two countries are in equilibrium. The covered interest rate parity situation means there is no opportunity for arbitrage using forward contracts, which often exists between countries with different interest rates.",investopedia,1,18.69,17.4,0,16.95,19.9,10.24,21,18.21
Creative Destruction,Creative destruction is the dismantling of long-standing practices in order to make way for innovation and is seen as a driving force of capitalism.,investopedia,1,38.66,13.8,0,12.77,15.1,10.75,17,16.27
Credit Analyst,"A credit analyst is a financial professional who assesses the creditworthiness of securities, individuals, or companies. Credit analysts determine the likelihood that a borrower can repay their financial obligations by reviewing the borrower's financial and credit history and determining whether the state of the subject's financial health and the economic conditions are favorable to repayment.",investopedia,1,1.26,19.9,0,18.57,21.7,11.6,25.75,25.55
Credit Bureau,"A credit bureau, also known in the U.S. as a credit reporting company or credit reporting agency, is an organization that collects and researches individual credit information and sells it to creditors for a fee, so they can make decisions about granting loans.",investopedia,1,19.37,21.2,0,12.32,24,12.01,30.5,23.71
Credit Card,"A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services company, that allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment. Credit cards impose the condition that cardholders pay back the borrowed money, plus any applicable interest, as well as any additional agreed-upon charges, either in full by the billing date or over time. An example of a credit card is the Chase Sapphire Reserve. (You can read our Chase Sapphire Reserve credit card review to get a good sense of all the various attributes of a credit card).",investopedia,1,43.09,16.3,14.1,10.51,19.3,9.2,20,17.82
Credit Card Balance,A credit card balance is the total amount of money that you owe to your credit card company. The balance changes based on when and how the card is used.,investopedia,1,74.87,10.3,0,6.92,13,7.76,7,12
Credit Card Dump,"A credit card dump is a type of crime in which the criminal makes an unauthorized digital copy of a credit card. This type of crime has existed for decades, but it has seen wider public awareness in recent years due to the rising prevalence of credit card forgeries, identity theft, and other types of cybercrime.",investopedia,1,59.98,11.8,0,9.23,14.3,10.38,17,15.49
Credit Default Swap (CDS),"A credit default swap (CDS) is a financial derivative or contract that allows an investor to ""swap"" or offset his or her credit risk with that of another investor. For example, if a lender is worried that a borrower is going to default on a loan, the lender could use a CDS to offset or swap that risk.",investopedia,1,58.96,12.2,0,7.03,12.9,9.16,17,14.36
Credit Facility,"A credit facility is a type of loan made in a business or corporate finance context. It allows the borrowing business to take out money over an extended period of time rather than reapplying for a loan each time it needs money. In effect, a credit facility lets a company take out an umbrella loan for generating capital over an extended period of time.",investopedia,1,49.86,11.6,15,8.65,10.6,8.39,15,12.9
Credit Limit,The term credit limit refers to the maximum amount of credit a financial institution extends to a client. A lending institution extends a credit limit on a credit card or a line of credit. Lenders usually set credit limits based on the information given by the credit-seeking applicant. A credit limit is a factor that affects consumers' credit scores and can impact their ability to obtain credit in the future.,investopedia,1,53.71,10.1,11.7,10.32,10.4,9.92,11,11
Credit Linked Note (CLN),"A credit-linked note (CLN) is a security with an embedded credit default swap permitting the issuer to shift specific credit risk to credit investors. Credit-linked notes are created through a special purpose vehicle (SPV), or trust, which is collateralized with AAA-rated securities. Investors buy credit-linked notes from a trust that pays a fixed or floating coupon during the life of the note. In return for accepting exposure to specified credit risks, investors who buy credit-linked notes typically earn a higher rate of return compared to other bonds.",investopedia,1,49.35,11.8,13,13.17,15.1,11.07,13.875,14.24
Credit Report,"A credit report is a detailed breakdown of an individual's credit history prepared by a credit bureau. Credit bureaus collect financial information about individuals and create credit reports based on that information, and lenders use the reports along with other details to determine loan applicants' creditworthiness.",investopedia,1,22.75,15.8,0,16.95,18.1,11.3,16,15.29
Credit Score,"A credit score is a number between 300–850 that depicts a consumer's creditworthiness. The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. ",investopedia,1,46.27,10.9,11.7,11.42,11.1,10.44,10.5,10.84
Credit Spread,"A credit spread is the difference in yield between a U.S. Treasury bond and another debt security of the same maturity but different credit quality. Credit spreads between U.S. Treasuries and other bond issuances are measured in basis points, with a 1% difference in yield equal to a spread of 100 basis points. As an example, a 10-year Treasury note with a yield of 5% and a 10-year corporate bond with a yield of 7% are said to have a credit spread of 200 basis points. Credit spreads are also referred to as ""bond spreads"" or ""default spreads."" Credit spread allows a comparison between a corporate bond and a risk-free alternative.",investopedia,1,63.8,8.3,10.6,8.81,8.8,8.69,8.833333333,8.88
Credit Union,"A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size from small, volunteer-only operations to large entities with thousands of participants spanning the country, credit unions can be formed by large corporations, organizations, and other entities for their employees and members.",investopedia,1,21.74,16.2,0,17.24,19,12.06,17.5,17.93
Creditor,"A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future. A business that provides supplies or services to a company or individual and does not demand payment immediately is also considered a creditor, based on the fact that the client owes the business money for services already rendered.",investopedia,1,22.08,18.1,0,12.43,18.5,10.16,22,17.8
Creditworthiness,"Creditworthiness is how a lender determines that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you.",investopedia,1,52.19,10.7,0,11.26,11.6,8.73,12,11.81
Cross Culture,"Cross culture in the business world refers to a company's efforts to ensure that its people interact effectively with professionals from backgrounds different from their own. Like the adjective cross-cultural, it implies a recognition of national, regional, and ethnic differences in manners and methods and a desire to bridge them.",investopedia,1,37.64,14.2,0,15.03,17.7,10.88,18,18
Cross Elasticity of Demand,"The cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demanded of one good when the price for another good changes. Also called cross-price elasticity of demand, this measurement is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.",investopedia,1,39.5,15.6,0,12.49,18.3,8.71,22.75,18.31
Cross-Sell,"To cross-sell is to sell related or complementary products to a customer. Cross-selling is one of the most effective methods of marketing. In the financial services industry, examples of cross-selling include selling different types of investments or products to investors or tax preparation services to retirement planning clients. For instance, if a bank client has a mortgage, its sales team may try to cross-sell that client a personal line of credit or a savings product like a CD.",investopedia,1,51.68,10.9,13,12.3,13,10.07,12.75,13.44
Crowdfunding,"Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.",investopedia,1,29.01,17.5,0,16.2,22.4,10.72,23.25,18.77
Crowding Out Effect,The crowding out effect is an economic theory arguing that rising public sector spending drives down or even eliminates private sector spending.,investopedia,1,32.22,14.2,0,14.91,15.9,11.9,15,16.07
Crude Oil,"Crude oil is a naturally occurring petroleum product composed of hydrocarbon deposits and other organic materials. A type of fossil fuel, crude oil is refined to produce usable products including gasoline, diesel, and various other forms of petrochemicals. It is a nonrenewable resource, which means that it can't be replaced naturally at the rate we consume it and is, therefore, a limited resource.",investopedia,1,33.24,13.8,14.6,13,14.4,11.45,14.5,15.38
Crypto Token,"The term crypto token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains. Crypto tokens are often used to fundraise for crowd sales, but they can also be used as a substitute for other things. These tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process, which involves a crowdfunding exercise to fund project development.",investopedia,1,42.92,12.2,14.6,14.45,14.9,11.61,13.875,16.02
Cryptocurrency,"A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.",investopedia,1,15.61,16.5,18.2,19.03,19.3,12.24,17.83333333,19.14
Cum Dividend,"A stock is cum dividend, which means ""with dividend,"" when a company has declared that there will be a dividend in the future but has not yet paid it out. A stock will trade cum dividend until the ex-dividend date. After that, the stock trades without its dividend rights. When the buyer receives the next dividend scheduled for distribution, the share is cum dividend.",investopedia,1,63.7,8.4,12.2,9.16,9.1,7.14,10.5,7.65
Cum Laude,"Cum laude is Latin for ""with praise"" or ""with honor"" and represents an academic level of achievement. Educational institutions use the phrase to signify an academic degree that was awarded with honor.",investopedia,1,46.78,10.7,0,11.95,11.4,10.35,11,12.65
Cup and Handle,"A cup and handle price pattern on a security's price chart is a technical indicator that resembles a cup with a handle, where the cup is in the shape of a ""u"" and the handle has a slight downward drift. The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern's formation may be as short as seven weeks or as long as 65 weeks.",investopedia,1,62.31,11,12.5,8.01,12.3,9.01,15.5,14.44
Currency Carry Trade,"A currency carry trade is a strategy whereby a high-yielding currency funds the trade with a low-yielding currency. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.",investopedia,1,27.83,20.1,0,13.94,25.4,10.54,15.25,20.92
Currency Exchange,"A currency exchange is a licensed business that allows customers to exchange one currency for another. Currency exchange of physical money (coins and paper bills) is usually done over a counter at a teller station, which can be found in various places such as airports, banks, hotels, and resorts. Currency exchanges make money by charging a nominal fee and through the bid-ask spread in a currency.",investopedia,1,57.61,10.7,13.6,11.26,13.5,9.27,14.33333333,11.83
Currency Peg,"A currency peg is a policy in which a national government sets a specific fixed exchange rate for its currency with a foreign currency or a basket of currencies. Pegging a currency stabilizes the exchange rate between countries. Doing so provides long-term predictability of exchange rates for business planning. However, a currency peg can be challenging to maintain and distort markets if it is too far removed from the natural market price.",investopedia,1,44.75,11.5,14.2,11.89,11.9,9.35,12.75,12.2
Current Account,"The current account records a nation's transactions with the rest of the world—specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments—over a defined period of time, such as a year or a quarter. According to Trading Economics, the quarter two 2019 current account of the United States was $-128.2 billion.",investopedia,1,49.49,13.8,0,13.07,18.6,10.39,18.5,16
Current Account Deficit,"The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports. The current account includes net income, such as interest and dividends, and transfers, such as foreign aid, although these components make up only a small percentage of the total current account. The current account represents a country’s foreign transactions and, like the capital account, is a component of a country’s balance of payments (BOP).",investopedia,1,51.82,12.9,13,12.6,17,9.58,16.83333333,14.94
Current Assets,"Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, used, or exhausted through standard business operations with one year. Current assets appear on a company's balance sheet, one of the required financial statements that must be completed each year.",investopedia,1,39.16,13.6,0,13.87,16.1,9.84,16.25,16.21
Current Liabilities,"Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales. An example of a current liability is money owed to suppliers in the form of accounts payable.",investopedia,1,30.03,17.1,0,11.15,17.9,10.59,14.83333333,19.15
Current Ratio,The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.,investopedia,1,47.62,12.5,0,11.26,13.7,10.51,15.75,15.36
Current Yield,"Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value. Current yield represents the return an investor would expect to earn, if the owner purchased the bond and held it for a year. However, current yield is not the actual return an investor receives if he holds a bond until maturity.",investopedia,1,52.39,10.6,12.6,9.92,10.7,8.36,12.125,12.85
CUSIP Number,"CUSIP refers to the Committee on Uniform Securities Identification Procedures which oversees the entire CUSIP system. The CUSIP number is a unique identification number assigned to all stocks and registered bonds in the United States and Canada, and it is used to create a concrete distinction between securities that are traded on public markets. These numbers are used to help facilitate trades and settlements by providing a constant identifier to help distinguish the securities within a trade. Each trade and the corresponding CUSIP number are recorded to facilitate the tracking of actions and activities.",investopedia,1,39.16,13.6,14.9,14.86,16.4,10.51,16,14.93
Custodial Account,"The term custodial account generally refers to a savings account at a financial institution, mutual fund company, or brokerage firm that an adult controls for a minor (a person under the age of 18 or 21 years, depending on the laws of the state of residence). Approval from the custodian is mandatory for the account to conduct transactions, such as buying or selling securities.",investopedia,1,30.54,17,0,11.21,17.8,11.64,22.5,20.3
Custodian,A custodian or custodian bank is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks or other assets in electronic or physical form.,investopedia,1,36.28,12.7,0,12.7,12.6,10.23,13.5,14.98
Customer,"A customer is an individual or business that purchases another company's goods or services. Customers are important because they drive revenues; without them, businesses cannot continue to exist. All businesses compete with other companies to attract customers, either by aggressively advertising their products, by lowering prices to expand their customer bases or developing unique products and experiences that customers love, think Apple, Tesla, Google or TikTok.",investopedia,1,32.22,14.2,15.5,17.17,18.3,10.71,15.66666667,15.47
Customer Relationship Management (CRM),"Customer relationship management (CRM) refers to the principles, practices, and guidelines that an organization follows when interacting with its customers. From the organization's point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, forecasting, and the analysis of customer trends and behaviors. Ultimately, CRM serves to enhance the customer's overall experience.",investopedia,1,18.05,15.5,16.3,20.13,19.8,12.22,15,18.06
Customer Service,Customer service is the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it. Most retailers see this direct interaction as a critical factor in ensuring buyer satisfaction and encouraging repeat business.,investopedia,1,4.48,22.8,0,16.26,26.1,10.29,14.75,23.23
Customer to Customer (C2C),"Customer to customer (C2C) is a business model whereby customers can trade with each other, typically in an online environment. Two implementations of C2C markets are auctions and classified advertisements. C2C marketing has soared in popularity with the arrival of the Internet and companies such as eBay, Etsy, and Craigslist.",investopedia,1,37.64,14.2,0,14.8,17.6,11.51,11.33333333,17.2
Cyclical Industry,"A cyclical industry is a type of industry that is sensitive to the business cycle, such that revenues generally are higher in periods of economic prosperity and expansion and are lower in periods of economic downturn and contraction. Companies in cyclical industries can deal with this type of volatility by implementing employee layoffs and cuts to compensate during bad times and paying bonuses and hiring en masse in good times.",investopedia,1,27.49,18.1,0,13.12,20.5,11.91,26,22
Cyclical Stocks,"A cyclical stock is a stock that's price is affected by macroeconomic or systematic changes in the overall economy. Cyclical stocks are known for following the cycles of an economy through expansion, peak, recession, and recovery. Most cyclical stocks involve companies that sell consumer discretionary items that consumers buy more during a booming economy but spend less on during a recession.",investopedia,1,50.87,11.2,15,13.92,14.6,9.56,14.5,14.02
Cyclical Unemployment,Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn. Unemployment typically rises during recessions and declines during economic expansions. Moderating cyclical unemployment during recessions is a major motivation behind the study of economics and the goal of the various policy tools that governments employ to stimulate the economy.,investopedia,1,9.89,16.6,17.9,18.56,17.4,11.5,16.16666667,18.13
DAGMAR,DAGMAR (defining advertising goals for measured advertising results) is a marketing model used to establish clear objectives for an advertising campaign and measure its success. The DAGMAR model was introduced by Russell Colley in a 1961 report to the Association of National Advertisers and was expanded upon in 1995 by Solomon Dutka.,investopedia,1,28.17,15.8,0,14.34,17.4,11.91,18.5,17.32
Dark Cloud Cover,"Dark Cloud Cover is a bearish reversal candlestick pattern where a down candle (typically black or red) opens above the close of the prior up candle (typically white or green), and then closes below the midpoint of the up candle.",investopedia,1,39.34,17.7,0,9.99,20.9,8.78,24,18
Dark Pool,A dark pool is a privately organized financial forum or exchange for trading securities. Dark pools allow institutional investors to trade without exposure until after the trade has been executed and reported. Dark pools are a type of alternative trading system (ATS) that give certain investors the opportunity to place large orders and make trades without publicly revealing their intentions during the search for a buyer or seller.,investopedia,1,39.97,13.3,14.6,14.22,15.6,10.34,15.33333333,16.14
Dark Web,"The dark web refers to encrypted online content that is not indexed by conventional search engines. Sometimes, the dark web is also called the dark net. The dark web is a part of the deep web, which just refers to websites that do not appear on search engines. Most deep web content consists of private files hosted on Dropbox and its competitors or subscriber-only databases rather than anything illegal.",investopedia,1,70.84,7.7,9.5,10.15,10.2,8.61,8.875,9.24
Darvas Box Theory,Darvas box theory is a trading strategy developed by Nicolas Darvas that targets stocks using highs and volume as key indicators.,investopedia,1,33.24,13.8,0,12.53,13.5,13.7,14.5,16.02
Data Analytics,Data analytics is the science of analyzing raw data in order to make conclusions about that information. Many of the techniques and processes of data analytics have been automated into mechanical processes and algorithms that work over raw data for human consumption.,investopedia,1,24.78,15,0,13.63,14.4,9.57,16,16.97
Data Mining,"Data mining is a process used by companies to turn raw data into useful information. By using software to look for patterns in large batches of data, businesses can learn more about their customers to develop more effective marketing strategies, increase sales and decrease costs. Data mining depends on effective data collection, warehousing, and computer processing.",investopedia,1,44.03,11.8,14.1,14.5,14.3,11.33,13,14.62
Data Smoothing,Data smoothing is done by using an algorithm to remove noise from a data set. This allows important patterns to more clearly stand out.,investopedia,1,67.76,6.8,0,8.4,6.6,8.84,6,6.47
Data Warehousing,Data warehousing is the secure electronic storage of information by a business or other organization. The goal of data warehousing is to create a trove of historical data that can be retrieved and analyzed to provide useful insight into the organization's operations.,investopedia,1,24.78,15,0,13.52,14.4,10.69,15,16.02
Data Universal Numbering System (DUNS) Number,"A data universal numbering system or DUNS number is a unique, nine-digit series of numerals that identifies a business. Dun & Bradstreet (D&B) creates the number, which generates a business profile in its database and provides a company's name, phone number, address, number of workers and line of business, along with other relevant corporate information.",investopedia,1,35.61,15,0,13.93,18.4,11.99,18.25,17.47
David Ricardo,"David Ricardo (1772–1823) was a classical economist best known for his theory on wages and profit, the labor theory of value, the theory of comparative advantage, and the theory of rents. David Ricardo and several other economists also simultaneously and independently discovered the law of diminishing marginal returns. His most well-known work is Principles of Political Economy and Taxation (1817).",investopedia,1,17.34,15.8,18.2,14.74,15.4,11.21,17,18.67
David Tepper,"David Tepper is a legendary investor who specializes in distressed debt and manages one of the most successful hedge fund firms of all time. David Tepper’s worth is approximately $13 billion, according to Forbes 2020 The World’s Billionaires List.",investopedia,1,60.14,9.7,0,13.63,13.9,13.11,12.25,12.93
DAX Stock Index,"The DAX—also known as the Deutscher Aktien Index—is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange. The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume.",investopedia,1,58.92,10.2,11.9,12.3,13.3,10.01,12.66666667,12.15
Day-Count Convention,"A day-count convention is the system used on debt securities, such as bonds or swaps, to calculate the amount of accrued interest or the present value when the next coupon payment is less than a full coupon period away.",investopedia,1,48.81,16.1,0,9.64,19.9,10.02,24.5,20.73
Day Order,"A day order is a stipulation placed on an order to a broker to execute a trade at a specific price that expires at the end of the trading day if it is not completed. A day order can be a limit order to buy or sell a security, but its duration is limited to the remainder of that trading day.",investopedia,1,57.44,12.8,0,5,11.7,8.51,19.25,17.45
Day Trader,"A day trader is a type of trader who executes a relatively large volume of short and long trades to capitalize on intraday market price action. The goal is to profit from very short-term price movements. Day traders can also use leverage to amplify returns, which can also amplify losses.",investopedia,1,62.98,8.6,11.2,10.03,9.8,9.52,10.33333333,10.68
Days Payable Outstanding,"Days payable outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its trade creditors, which may include suppliers, vendors, or financiers. The ratio is typically calculated on a quarterly or annual basis, and indicates how well the company’s cash outflows are being managed.",investopedia,1,33.58,15.8,0,12.31,17.4,11.61,21.5,19.88
Days Sales of Inventory (DSI),"The days sales of inventory (DSI) is a financial ratio that indicates the average time in days that a company takes to turn its inventory, including goods that are a work in progress, into sales.",investopedia,1,44.41,15.8,0,9.18,17.7,10.34,24.5,19.71
Days Sales Outstanding,"Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis.",investopedia,1,62.17,8.9,0,7.6,8.6,9.92,11.75,12.71
Days Working Capital,"Days working capital describes how many days it takes for a company to convert its working capital into revenue. The more days a company has of working capital, the more time it takes to convert that working capital into sales. The higher the days working capital number the less efficient a company is.",investopedia,1,53.51,10.2,13,9.45,9.7,7.2,11.83333333,7.83
What Is the De Minimis Tax Rule?,"The de minimis tax rule sets the threshold at which a discount bond should be taxed as a capital gain rather than as ordinary income. The rule states that a discount that is less than a quarter-point per full year between its time of acquisition and its maturity is too small to be considered a market discount for tax purposes. Instead, the accretion from the purchase price to the par value should be treated as a capital gain, if it is held for more than one year.",investopedia,1,58.96,12.2,13,8.31,13.7,8.16,17.5,14.36
Dead Cat Bounce,"A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend. Frequently, downtrends are interrupted by brief periods of recovery—or small rallies—during which prices temporarily rise.",investopedia,1,40.69,13.1,0,14.62,16,10.83,15.5,15.16
What Is Deadweight Loss Of Taxation?,"The term deadweight loss of taxation refers to the measurement of loss caused by the imposition of a new tax. This results from a new tax that is more than what is normally paid to the government's taxing authority. This theory suggests that imposing a new tax or raising an old one can backfire, resulting in insufficient or no gains in government revenues due to the decline in demand for the goods or services being taxed. A deadweight loss, therefore, disrupts the balance between supply and demand. English economist Alfred Marshall is widely credited as the originator of deadweight loss analysis.",investopedia,1,50.97,11.2,13,11.08,12.1,10.11,12.8,13.62
Deadweight Loss,"A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium. Mainly used in economics, deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources.",investopedia,1,33.75,13.6,0,12.59,13.5,10.82,14.25,16
Dealer,"Dealers are people or firms who buy and sell securities for their own account, whether through a broker or otherwise. A dealer acts as a principal in trading for its own account, as opposed to a broker who acts as an agent who executes orders on behalf of its clients.",investopedia,1,63.02,10.7,0,7.96,11.7,9.3,14.5,12.4
Dealer Market,"A dealer market is a financial market mechanism wherein multiple dealers post prices at which they will buy or sell a specific security or instrument. In a dealer market, a dealer – who is designated as a “market maker” – provides liquidity and transparency by electronically displaying the prices at which it is willing to make a market in a security, indicating both the price at which it will buy the security (the “bid” price) and the price at which it will sell the security (the “offer” price). Bonds and foreign exchanges trade primarily in dealer markets, while stock trading on the Nasdaq is a prime example of an equity dealer market.",investopedia,1,33.62,17.8,17.1,10.46,19.7,9.43,22,20.28
Death Benefit,"A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment.",investopedia,1,30.7,14.8,0,12.25,14.7,9.51,17.25,17.06
Death Cross,"The death cross is a technical chart pattern indicating the potential for a major sell-off. The death cross appears on a chart when a stock’s short-term moving average crosses below its long-term moving average. Typically, the most common moving averages used in this pattern are the 50-day and 200-day moving averages.",investopedia,1,45.76,11.1,12.5,12.12,12,8.5,11.16666667,11.51
Death Taxes,Death taxes are taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the beneficiary who receives the property in the deceased's will or the estate which pays the tax before transferring the inherited property.,investopedia,1,40.69,13.1,0,12.76,14.5,9.39,14.5,13.35
Debenture,"A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.",investopedia,1,47.08,10.6,13.6,13.51,12.1,10.8,11.16666667,13.09
Debit Balance,The debit balance in a margin account is the total amount of money owed by the customer to a broker or other lender for funds borrowed to purchase securities. The debit balance is the amount of cash the customer must have in the account following the execution of a security purchase order so that the transaction can be settled properly.,investopedia,1,41.03,15,0,10.11,15.5,9.34,18,15.33
Debit Card,"A debit card is a payment card that deducts money directly from a consumer’s checking account when it is used. Also called “check cards” or ""bank cards,"" they can be used to buy goods or services; or to get cash from an automated teller machine or a merchant who'll let you add an extra amount onto a purchase.",investopedia,1,67.42,11.1,0,7.9,13.6,8.61,15.5,12.98
Debit Note,"A debit note is a document used by a vendor to inform the buyer of current debt obligations, or a document created by a buyer when returning goods received on credit. The debit note can provide information regarding an upcoming invoice or serve as a reminder for funds currently due. For returned items, the note will include the total anticipated credit, an inventory of the returned items, and the reason for their return.",investopedia,1,46.81,12.8,14.1,10.45,13.4,10.47,15.83333333,15.2
Debt,"Debt is something, usually money, borrowed by one party from another. Debt is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.",investopedia,1,43.02,12.2,14.6,11.55,12.3,8.9,13.83333333,14.66
Debt Collector,"A debt collector is a company or agency that is in the business of recovering money owed on delinquent accounts. Many debt collectors are hired by companies to which money is owed by debtors, operating for a fee or for a percentage of the total amount collected. Some debt collectors are debt buyers; these companies purchase debt at a fraction of its face value and then attempt to recover the full amount of the debt.",investopedia,1,54.56,11.9,14.1,9.29,12.7,9.3,16.16666667,14.27
Debt Consolidation,"Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts. Multiple debts are combined into a single, larger debt, such as a loan, usually with more favorable payoff terms—a lower interest rate, lower monthly payment, or both. Debt consolidation can be used as a tool to deal with student loan debt, credit card debt, and other liabilities.",investopedia,1,48.84,12,12.5,10.39,12.7,8.98,13.83333333,12.5
Debt/EBITDA Ratio,"Debt/EBITDA—earnings before interest, taxes, depreciation, and amortization—is a ratio measuring the amount of income generated and available to pay down debt before covering interest, taxes, depreciation, and amortization expenses. Debt/EBITDA measures a company's ability to pay off its incurred debt. A high ratio result could indicate a company has a too-heavy debt load.",investopedia,1,28.13,13.7,15.9,16.35,16.1,10.17,13.83333333,14.63
Debt/Equity Swap,"A debt/equity swap is a transaction in which the obligations or debts of a company or individual are exchanged for something of value, namely, equity. In the case of a publicly-traded company, this generally entails an exchange of bonds for stock. The value of the stocks and bonds being exchanged is typically determined by the market at the time of the swap.",investopedia,1,50.46,11.4,13.6,9.92,11.6,8.99,13.66666667,12.8
Debt Financing,"Debt financing occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid. The other way to raise capital in debt markets is to issue shares of stock in a public offering; this is called equity financing.",investopedia,1,29.48,15.3,16.3,12.83,15.5,9.98,17.66666667,15.83
Debt Fund,"A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt. On average, the fee ratios on debt funds are lower than those attached to equity funds because the overall management costs are lower.",investopedia,1,57.61,10.7,13,12.24,14.3,10.95,14,13.65
Debt Instrument,"A debt instrument is a tool an entity can utilize to raise capital. It is a documented, binding obligation that provides funds to an entity in return for a promise from the entity to repay a lender or investor in accordance with terms of a contract. Debt instrument contracts include detailed provisions on the deal such as collateral involved, the rate of interest, the schedule for interest payments, and the timeframe to maturity if applicable.",investopedia,1,37.64,14.2,15.9,11.32,14.5,10.35,17.5,15.33
Debt Issue,"A debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract. A debt issue is a fixed corporate or government obligation such as a bond or debenture. Debt issues also include notes, certificates, mortgages, leases, or other agreements between the issuer or borrower, and the lender.",investopedia,1,55.58,11.5,12.5,10.51,13.4,10.53,14.66666667,12.93
Debt Overhang,"Debt overhang refers to a debt burden so large that an entity cannot take on additional debt to finance future projects. This includes entities that are profitable enough to be able to reduce indebtedness over time. A debt overhang serves to dissuade current investment, since all earnings from new projects would only go to existing debt holders, leaving little incentive and ability for the entity to attempt to dig itself out of the hole.",investopedia,1,54.86,11.7,13,11.49,14.3,9.98,15.33333333,14.2
Debt Ratio,"The debt ratio is a financial ratio that measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a company’s assets that are financed by debt.",investopedia,1,54.22,9.9,11.9,8.35,8.5,9.43,10.83333333,11.51
Debt Restructuring,"Debt restructuring is a process used by companies, individuals, and even countries to avoid the risk of defaulting on their existing debts, such as by negotiating lower interest rates. Debt restructuring provides a less expensive alternative to bankruptcy when a debtor is in financial turmoil, and it can work to the benefit of both borrower and lender.",investopedia,1,34.09,15.6,0,12.71,17.5,11.98,21.25,20.52
Debt Security,"A debt security is a debt instrument that can be bought or sold between two parties and has basic terms defined, such as the notional amount (the amount borrowed), interest rate, and maturity and renewal date.",investopedia,1,43.4,16.2,0,10.4,19.3,10.69,24,21.07
Debt Service,"Debt service is the cash that is required to cover the repayment of interest and principal on a debt for a particular period. If an individual is taking out a mortgage or a student loan, the borrower needs to calculate the annual or monthly debt service required on each loan. In the same way, companies must meet debt service requirements for loans and bonds issued to the public. The ability to service debt is a factor when a company needs to raise additional capital to operate the business.",investopedia,1,49.15,11.9,14.6,9.23,11.4,9.03,15,15.16
Debt-Service Coverage Ratio (DSCR),"The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm's available cash flow to pay current debt obligations. The DSCR shows investors whether a company has enough income to pay its debts.",investopedia,1,54.52,9.8,14.1,13.05,12.8,10.15,12,10.68
Debt-to-Capital Ratio,"The debt-to-capital ratio is a measurement of a company's financial leverage. The debt-to-capital ratio is calculated by taking the company's interest-bearing debt, both short- and long-term liabilities and dividing it by the total capital. Total capital is all interest-bearing debt plus shareholders' equity, which may include items such as common stock, preferred stock, and minority interest.",investopedia,1,18.65,15.3,16.7,16.19,16.6,10.2,15,14.62
Debt-to-Equity Ratio (D/E),The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity.,investopedia,1,12.26,17.8,0,14.8,18.2,14.35,22.5,24.4
Debt-to-GDP Ratio,"The debt-to-GDP ratio is the metric comparing a country's public debt to its gross domestic product (GDP). By comparing what a country owes with what it produces, the debt-to-GDP ratio reliably indicates that particular country’s ability to pay back its debts. Often expressed as a percentage, this ratio can also be interpreted as the number of years needed to pay back debt, if GDP is dedicated entirely to debt repayment.",investopedia,1,47.83,12.4,14.6,11.44,14.2,10.43,15.66666667,15.61
Debt-to-Income Ratio (DTI),The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk.,investopedia,1,49.49,13.8,0,11.73,17.4,11.44,19,16
Debtor,"A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer. Legally, someone who files a voluntary petition to declare bankruptcy is also considered a debtor.",investopedia,1,57.61,10.7,13.6,7.83,10.4,9.03,14.33333333,14.25
Debtor in Possession (DIP),"A debtor in possession (DIP) is a person or corporation that has filed for Chapter 11 bankruptcy protection but still holds property to which creditors have a legal claim under a lien or other security interest. A DIP may continue to do business using those assets. However, it is required to seek court approval for any actions that fall outside the scope of regular business activities. The DIP must also keep precise financial records, insure any property, and file appropriate tax returns.",investopedia,1,50.67,11.3,14.2,11.2,12.5,10.62,14,14.54
Debtor-in-Possession Financing (DIP Financing),"Debtor-in-possession (DIP) financing is a special kind of financing meant for companies that are in bankruptcy. Only companies that have filed for bankruptcy protection under Chapter 11 are allowed to access DIP financing, which usually happens at the start of a filing. DIP financing is used to facilitate the reorganization of a debtor-in-possession (the status of a company that has filed for bankruptcy) by allowing it to raise capital to fund its operations as its bankruptcy case runs its course. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity, and other claims.",investopedia,1,28.81,17.6,19.9,13.12,20.3,9.84,19,18.63
Decentralized Applications (dApps),"Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer, and are outside the purview and control of a single authority.",investopedia,1,26.48,18.5,0,13.76,21.8,11.56,25,21.07
Decision Analysis (DA),"Decision analysis (DA) is a systematic, quantitative, and visual approach to addressing and evaluating the important choices that businesses sometimes face. Ronald A. Howard, a professor of Management Science and Engineering at Stanford University, is credited with originating the term in 1964. The idea is used by large and small corporations alike when making various types of decisions, including management, operations, marketing, capital investments, or strategic choices.",investopedia,1,23.46,15.5,18.9,17.41,18.7,12.05,18.83333333,20.86
Decision Support Systems (DSS),"A decision support system (DSS) is a computerized program used to support determinations, judgments, and courses of action in an organization or a business. A DSS sifts through and analyzes massive amounts of data, compiling comprehensive information that can be used to solve problems and in decision-making.",investopedia,1,30.7,14.8,0,14.51,16.7,11.86,16.25,16.21
Decision Theory,Decision theory is an interdisciplinary approach to arrive at the decisions that are the most advantageous given an uncertain environment.,investopedia,1,8.88,17,0,16.94,16.6,10.94,17,22
Decision Tree,"A decision tree is a diagram or chart that helps determine a course of action or show a statistical probability. The chart is called a decision tree due to its resemblance to the namesake plant, usually outlined as an upright or a horizontal diagram that branches out. Starting from the decision itself (called a ""node""), each ""branch"" of the decision tree represents a possible decision, outcome, or reaction. The furthest branches on the tree represent the end results of a certain decision pathway and are called the ""leaves"".",investopedia,1,49.15,11.9,15.2,10.79,13.2,9.21,15.5,13.8
Declaration Of Trust,A declaration of trust under U.S. law is a document or an oral statement appointing a trustee to oversee assets being held for the benefit of one or more other individuals. These assets are held in a trust.,investopedia,1,60.65,9.5,0,7.89,9,9.57,12,12.86
Declining Balance Method,The declining balance method is an accelerated depreciation system of recording larger depreciation expenses during the earlier years of an asset’s useful life and recording smaller depreciation expenses during the asset's later years.,investopedia,1,-4.33,22.1,0,18.63,24,12.45,24.5,19.26
Decoupling,"Decoupling is what it's called when the returns of one asset class diverges from their expected or normal pattern of correlation with others. Decoupling takes place when different asset classes that typically rise and fall together start to move in opposite directions, such as one increasing and the other decreasing.",investopedia,1,37.64,14.2,0,13.76,16.4,10.25,18,16.4
Decreasing Term Insurance,"Decreasing term insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually. Terms range between 1 year and 30 years but it depends on the insurance company and the plan they offer.",investopedia,1,43.73,11.9,16.3,13.46,13.4,10.67,14.83333333,15.32
Deductible,"For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. The deductible expense reduces reported income and therefore the amount of income taxes owed.",investopedia,1,51.18,11.1,0,12.88,13.4,10.16,13,14
Deduction,A deduction is an expense that can be subtracted from a taxpayer's gross income in order to reduce the amount of income that is subject to taxation.,investopedia,1,52.53,12.6,0,8.77,13.4,9.07,17.5,16.73
Deed,A deed is a signed legal document that grants its holder specific rights to an asset—provided they meet a number of conditions. Deeds are most commonly used to transfer the ownership of automobiles or land between two parties.,investopedia,1,52.19,10.7,0,11.26,11.5,10.81,13,14.97
Deed Of Reconveyance,"A mortgage holder issues a deed of reconveyance to indicate that the borrower has been released from the mortgage debt. The deed transfers the property title from the lender, also called the beneficiary, to the borrower.",investopedia,1,53.21,10.3,0,11.6,11.8,9.79,12,12.76
Deed of Release,A deed of release is a legal document that removes a previous claim on an asset. It provides documentation of release from a binding agreement. A deed of release might be included when a lender transfers the title of real estate to the homeowner upon satisfaction of the mortgage. A deed of release literally releases the parties from previous obligations.,investopedia,1,47.79,10.3,12.2,10.43,9.4,10.17,9,12
Deep Learning,Deep learning is an artificial intelligence (AI) function that imitates the workings of the human brain in processing data and creating patterns for use in decision making. Deep learning is a subset of machine learning in artificial intelligence that has networks capable of learning unsupervised from data that is unstructured or unlabeled. Also known as deep neural learning or deep neural network.,investopedia,1,33.54,13.7,14.6,13.98,14.7,10.01,14.33333333,14.73
Deep In The Money,Deep in the money is an option that has an exercise or strike price significantly below (for a call option) or above (for a put option) the market price of the underlying asset. The value of such an option is nearly all intrinsic value and minimal extrinsic or time value. Deep in the money options have deltas at or close to 100.,investopedia,1,58.92,10.2,11.2,7.25,9.3,7.72,12.33333333,12.15
Default Rate,The default rate is the percentage of all outstanding loans that a lender has written off as unpaid after a prolonged period of missed payments. The term default rate–also called penalty rate–may also refer to the higher interest rate imposed on a borrower who has missed regular payments on a loan.,investopedia,1,54.05,12.1,0,11.09,14.3,10.47,15.75,14.91
Default Risk,"Default risk is the risk that a lender takes on in the chance that a borrower will be unable to make the required payments on their debt obligation. Lenders and investors are exposed to default risk in virtually all forms of credit extensions. A higher level of default risk leads to a higher required return, and in turn, a higher interest rate.",investopedia,1,67.38,9,10.5,8.94,10.6,9.76,12,11.51
Defeasance,"Defeasance is a provision in a contract that voids a bond or loan on a balance sheet when the borrower sets aside cash or bonds sufficient enough to service the debt. The borrower sets aside cash to pay off the bonds; therefore, the outstanding debt and cash offset each other on the balance sheet and do not need to be recorded.",investopedia,1,65.9,11.6,0,8.48,14.6,9.03,18.25,15.48
Defensive Interval Ratio,"The defensive interval ratio (DIR), also called the defensive interval period (DIP) or basic defense interval (BDI), is a financial metric that indicates the number of days that a company can operate without needing to access noncurrent assets, long-term assets whose full value cannot be obtained within the current accounting year, or additional outside financial resources.",investopedia,1,-2.29,27.5,0,15.62,33.6,12.9,42,28.83
Defensive Stock,"A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market. There is a constant demand for their products, so defensive stocks tend to be more stable during the various phases of the business cycle. Defensive stocks should not be confused with defense stocks, which are the stocks of companies that manufacture things like weapons, ammunition, and fighter jets.",investopedia,1,56.29,11.2,13.6,13,15.1,9.98,15,13.89
Deferment Period,The deferment period is a time during which a borrower does not have to pay interest or repay the principal on a loan. The deferment period also refers to the period after the issue of a callable security during which the issuer can not call the security.,investopedia,1,47.62,12.5,0,8.54,11.3,8.16,16.75,14.51
Deferred Acquisition Costs (DAC),Deferred acquisition costs (DAC) is an accounting method that is applicable in the insurance industry. Using the DAC method allows a company to defer the sales costs that are associated with acquiring a new customer over the term of the insurance contract.,investopedia,1,50.16,11.5,0,12.01,13.3,10.69,15,15.07
Deferred Annuity,"A deferred annuity is a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date. Investors often use deferred annuities to supplement their other retirement income, such as Social Security. Deferred annuities differ from immediate annuities, which begin making payments right away.",investopedia,1,36.28,12.7,14.1,12.93,13,9.21,12.66666667,13.13
Deferred Compensation,"Deferred compensation is a portion of an employee's compensation that is set aside to be paid at a later date. In most cases, taxes on this income are deferred until it is paid out. Forms of deferred compensation include retirement plans, pension plans, and stock-option plans.",investopedia,1,64.41,8.1,11.2,10.49,10.1,8.86,8.666666667,8.73
Deferred Income Tax,"A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company's accounting methods. For this reason, the company's payable income tax may not equate to the total tax expense reported.",investopedia,1,49.15,11.9,0,12.01,13.9,10.11,15,14.25
Deferred Interest,"Deferred interest is when interest payments are deferred on a loan during a specific period of time. You will not pay any interest as long as your entire balance on the loan is paid off before this period ends. If you do not pay off the loan balance before this period ends, then interest charges start accruing.",investopedia,1,60.65,9.5,13,8.36,9.2,7.35,12.5,10.41
Deferred Profit Sharing Plan (DPSP),"A deferred profit sharing plan (DPSP) is an employer-sponsored Canadian profit sharing plan that is registered with the Canadian Revenue Agency, which is basically the Canadian version of the Internal Revenue Service (IRS) in the United States.",investopedia,1,17,20.1,0,15.15,23.8,11.45,25.5,20.21
Deferred Revenue,"Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to be delivered or performed in the future. The company that receives the prepayment records the amount as deferred revenue, a liability, on its balance sheet.",investopedia,1,48.13,12.3,0,13.41,15.4,10.27,14,11.81
Deferred Tax Asset,"Items on a company's balance sheet that may be used to reduce taxable income in the future are called deferred tax assets. The situation can happen when a business overpaid taxes or paid taxes in advance on its balance sheet. These taxes are eventually returned to the business in the form of tax relief. Therefore, overpayment is considered an asset to the company. A deferred tax asset is the opposite of a deferred tax liability, which can increase the amount of income tax owed by a company.",investopedia,1,62.27,8.9,10.8,9.28,9.5,8.86,10.5,10.18
Deferred Tax Liability,"A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid—meaning that it will eventually come due. The deferral comes from the difference in timing between when the tax is accrued and when the tax is paid. A deferred tax liability records the fact the company will, in the future, pay more income tax because of a transaction that took place during the current period, such as an installment sale receivable.",investopedia,1,-4.32,34.5,0,10.12,41.7,10.8,17.5,36.57
Deficit,"In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, company, or person spends more than it receives in a given period, usually a year.",investopedia,1,52.9,10.4,13,10.44,11,10.29,12.16666667,12.41
Deficit Spending,"In the simplest terms, deficit spending is when a government's expenditures exceed its revenues during a fiscal period, causing it to run a budget deficit. The phrase ""deficit spending"" often implies a Keynesian approach to economic stimulus, in which the government takes on debt while using its spending power to create demand and stimulate the economy.",investopedia,1,43.06,14.2,0,13.23,17.8,12.07,18.5,16.91
Deficit Spending Unit,"A deficit spending unit is an economic term used to describe how an economy, or an economic group within that economy, has spent more than it has earned over a specified measurement period. Both companies and governments may experience a deficit spending unit.",investopedia,1,49.65,11.7,0,11.6,13.2,9.48,15.75,16.04
Defined-Benefit Plan,"A defined-benefit plan is an employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors, such as length of employment and salary history. The company is responsible for managing the plan's investments and risk and will usually hire an outside investment manager to do this. Typically an employee cannot just withdraw funds as with a 401(k) plan. Rather they become eligible to take their benefit as a lifetime annuity or in some cases as a lump-sum at an age defined by the plan's rules.",investopedia,1,32.87,16.1,18.9,12.66,17.8,10.61,22.5,19.52
Defined-Contribution Plan,"A defined-contribution (DC) plan is a retirement plan that's typically tax-deferred, like a 401(k) or a 403(b), in which employees contribute a fixed amount or a percentage of their paychecks to an account that is intended to fund their retirements. The sponsor company will, at times, match a portion of employee contributions as an added benefit. These plans place restrictions that control when and how each employee can withdraw from these accounts without penalties.",investopedia,1,54.86,11.7,15.5,13.52,16.7,11.48,17,16.37
Degree of Combined Leverage,"A degree of combined leverage (DCL) is a leverage ratio that summarizes the combined effect that the degree of operating leverage (DOL) and the degree of financial leverage has on earnings per share (EPS), given a particular change in sales. This ratio can be used to help determine the most optimal level of financial and operating leverage to use in any firm.",investopedia,1,40.01,15.4,0,10.51,16.9,9.76,19.5,16.27
Degree of Financial Leverage,"A degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. The degree of financial leverage (DFL) measures the percentage change in EPS for a unit change in operating income, also known as earnings before interest and taxes (EBIT).",investopedia,1,30.54,17,0,11.79,18.5,10.4,21,17.18
Degree of Operating Leverage,The degree of operating leverage (DOL) is a multiple that measures how much the operating income of a company will change in response to a change in sales. Companies with a large proportion of fixed costs (or costs that don't change with production) to variable costs (costs that change with production volume) have higher levels of operating leverage.,investopedia,1,50.5,13.4,0,11.91,17,9.7,19,15.05
Degrees of Freedom,"Degrees of Freedom refers to the maximum number of logically independent values, which are values that have the freedom to vary, in the data sample.",investopedia,1,46.1,13,0,11.09,14.4,10.56,15.5,14.8
Delaware Corporations,"A Delaware corporation is a company that is legally registered in the state of Delaware but may conduct business in any state. Delaware first began to adapt its laws in the late 19th century, making changes that would attract businesses away from other states such as New York. Over time, Delaware became a respected state in which to incorporate, even if the majority of a company's business was conducted outside the state.",investopedia,1,55.58,11.5,15.5,11.03,13.8,8.77,16.66666667,15.16
Delayed Draw Term Loan,"A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance. A DDTL is included as a provision of the borrower's agreement, which lenders may offer to businesses with high credit standings. A DDTL is often included in contractual loan deals for businesses who use the loan proceeds as financing for future acquisitions or expansion.",investopedia,1,49.86,11.6,14.2,11.78,13.4,10.64,14.375,14.64
Deleveraging,"Deleveraging is when a company or individual attempts to decrease its total financial leverage. In other words, deleveraging is the reduction of debt and the opposite of leveraging. The most direct way for an entity to deleverage is to immediately pay off any existing debts and obligations on its balance sheet. If unable to do this, the company or individual may be in a position of an increased risk of default.",investopedia,1,44.95,11.4,14.2,10.03,10.3,9.86,12.625,13.32
Delinquency Rate,"Delinquency rate refers to the percentage of loans within a financial institution's loan portfolio whose payments are delinquent. When analyzing and investing in loans, the delinquency rate is an important metric to follow; it is easy to find comprehensive statistics on the delinquencies of all types of loans.",investopedia,1,38.66,13.8,0,14.34,16.5,10.42,18,17.93
Delinquent,"Delinquent describes something or someone who fails to accomplish that which is required by law, duty, or contractual agreement, such as the failure to make a required payment or perform a particular action.",investopedia,1,37.98,16.2,0,13.36,20,10.54,19.5,16.84
Delinquent Account Credit Card,"From the perspective of a credit card company, a particular credit card is said to be delinquent if the customer in question has failed to make their minimum monthly payment for 30 days from their original due date.",investopedia,1,41.37,16.9,0,10.17,19.6,9.68,24,19.41
Delisting,"Delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.",investopedia,1,19.37,21.2,0,14.35,25.7,12.01,15.25,23.71
Deliverables,"The term ""deliverables"" is a project management term that's traditionally used to describe the quantifiable goods or services that must be provided upon the completion of a project. Deliverables can be tangible or intangible in nature. For example, in a project focusing on upgrading a firm's technology, a deliverable may refer to the acquisition of a dozen new computers.",investopedia,1,34.56,13.3,16.3,12.82,13.6,9.97,15.16666667,18.05
Delivered at Frontier (DAF),Delivered at frontier (DAF) is a term used in international shipping contracts that requires a seller to deliver goods to a border location. The seller is usually responsible for all costs of transporting the goods to the drop-off point for the buyer. The party picking up the goods will usually be importing them and traveling across customs.,investopedia,1,52.19,10.7,13.6,11.31,11.8,10.12,12.83333333,13.92
Delivered-at-Place (DAP),"Delivered-at-place (DAP) is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In delivered-at-place agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once the shipment has arrived at the specified destination.",investopedia,1,31.04,16.8,0,14.23,20.3,11.21,21.25,18.95
Delivered Duty Paid (DDP),"Delivered duty paid (DDP) is a delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port. This agreement includes paying for shipping costs, export and import duties, insurance, and any other expenses incurred during shipping to an agreed-upon location in the buyer's country.",investopedia,1,32.06,16.4,0,15.91,21.1,12.66,19.75,18.1
Delivered Duty Unpaid (DDU),"Delivered Duty Unpaid (DDU) is an old international trade term indicating that the seller is responsible for the safe delivery of goods to a named destination, paying all transportation expenses, and assuming all risks during transport.",investopedia,1,18.02,19.7,0,15.21,23.1,12.44,27,24.4
Delivered Ex Ship (DES),"Delivered ex-ship (DES) was a trade term that required a seller to deliver goods to a buyer at an agreed port of arrival. The seller met its obligation upon delivery of uncleared goods in a designated port. It assumed the full cost and risk involved in getting the goods to that point, at which time it was available to the buyer and the buyer assumed all ensuing costs and risks.",investopedia,1,64.75,10,11.2,8.3,11.2,9.53,13.66666667,12.75
Delivery Versus Payment (DVP),Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.,investopedia,1,38.66,13.8,0,12.02,14.6,9.1,17,14.6
Delphi Method,The Delphi method is a forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts.,investopedia,1,56.59,11.1,0,12.02,13.8,13.02,14.5,14.42
Delta Neutral,Delta neutral is a portfolio strategy utilizing multiple positions with balancing positive and negative deltas so that the overall delta of the assets in question totals zero.,investopedia,1,27.15,16.2,0,15.26,18.4,13.75,21.5,22.65
Demand,"Demand is an economic principle referring to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease the quantity demanded, and vice versa. Market demand is the total quantity demanded across all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy. Multiple stocking strategies are often required to handle demand.",investopedia,1,53.21,10.3,12,10.61,10.8,8.92,11.4,11.64
Demand Curve,"The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis.",investopedia,1,30.2,15,0,11.03,13.7,8.45,18,17.1
Demand Deposit,"A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice. DDA accounts can pay interest on the deposited funds but aren’t required to. Checking accounts and savings accounts are common types of DDAs.",investopedia,1,64.71,8,8.8,10.61,9.8,9.29,7.5,7.78
Demand Draft,"A demand draft is a method used by an individual to make a transfer payment from one bank account to another. Demand drafts differ from regular normal checks in that they do not require signatures to be cashed. In 2005, due to the increasing fraudulent use of demand drafts, the Federal Reserve proposed new regulations increasing a victim's right to claim a refund and holding banks more accountable for cashing fraudulent checks.",investopedia,1,47.12,12.7,14.1,11.67,14.3,10.75,15.66666667,14.04
Demand Elasticity,"Price elasticity of demand is a measurement of the change in consumption of a product in relation to a change in its price. Expressed mathematically, it is:",investopedia,1,57.77,8.6,0,9.39,8,8.98,8.25,12.81
Demand for Labor,"When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm's output. That is, if demand for a firm's output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm's output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.",investopedia,1,58.82,10.2,11.2,9.75,11.7,8.66,12.375,11.69
Demand-Pull Inflation,"Demand-pull inflation is the upward pressure on prices that follows a shortage in supply, a condition that economists describe as ""too many dollars chasing too few goods.""",investopedia,1,44.07,13.8,0,13.12,17.4,11.41,17.5,15.24
Demand Schedules,"In economics, a demand schedule is a table that shows the quantity demanded of a good or service at different price levels. A demand schedule can be graphed as a continuous demand curve on a chart where the Y-axis represents price and the X-axis represents quantity.",investopedia,1,48.13,12.3,0,10.28,12.7,9.24,15.5,13.55
Demand Shock,"A demand shock is a sudden unexpected event that dramatically increases or decreases demand for a product or service, usually temporarily. A positive demand shock is a sudden increase in demand, while a negative demand shock is a decrease in demand. Either shock will have an effect on the prices of the product or service.",investopedia,1,44.44,11.6,12.5,10.56,10.8,8.85,11.83333333,13.14
Demand Theory,"Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market. Demand theory forms the basis for the demand curve, which relates consumer desire to the amount of goods available. As more of a good or service is available, demand drops and so does the equilibrium price.",investopedia,1,59.94,9.8,11.9,11.26,12,8.63,12.16666667,11.95
Dematerialization (DEMAT),Dematerialization (DEMAT) is the move from physical certificates to electronic bookkeeping. Actual stock certificates are then removed and retired from circulation in exchange for electronic recording.,investopedia,1,15.98,14.3,0,20.23,17,10.96,11,15.97
Demographic Dividend,Demographic dividend refers to the growth in an economy that is the result of a change in the age structure of a country’s population. The change in age structure is typically brought on by a decline in fertility and mortality rates.,investopedia,1,50.67,11.3,0,9.75,11,10.05,13.75,15.03
Demographics,"Demographic analysis is the study of a population based on factors such as age, race, and sex. Demographic data refers to socioeconomic information expressed statistically including employment, education, income, marriage rates, birth and death rates, and more.",investopedia,1,27.32,14,0,16.71,16.6,11.38,14.25,17.13
Demonetization,"Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency.",investopedia,1,56.76,8.9,11.7,10.03,8.9,9.53,8.5,9.25
Demutualization,"Demutualization is a process by which a private, member-owned company, such as a co-op, or a mutual life insurance company, legally changes its structure, in order to become a public-traded company owned by shareholders.",investopedia,1,20.05,18.9,0,13.7,21.5,11.36,25,18.31
Denomination,"A denomination refers to the units classification for the stated or face value of financial instruments such as currency notes or coins, as well as for securities, bonds, and other investments.",investopedia,1,31.55,16.6,0,13.41,19.1,11.8,22.5,21.43
Dependency Ratio,"The dependency ratio is a measure of the number of dependents aged zero to 14 and over the age of 65, compared with the total population aged 15 to 64. This demographic indicator gives insight into the number of people of non-working age, compared with the number of those of working age. It is also used to understand the relative economic burden of the workforce and has ramifications for taxation. The dependency ratio is also referred to as the total or youth dependency ratio.",investopedia,1,41.7,12.7,13.4,9.69,11.4,9.19,13.75,12.69
Dependent Care Benefits,"Dependent care benefits are provided by an employer to an employee for use in caring for dependents, such as young children or disabled family members. Dependent care benefits may include flexible spending accounts (FSAs), paid leave, and certain tax credits and can be worth thousands of dollars to eligible participants.",investopedia,1,37.64,14.2,0,13.87,16.8,10.88,18.5,17.2
Dependent,A dependent is a qualifying person other than the taxpayer or their spouse who entitles a taxpayer to claim a dependency exemption on their tax return. A taxpayer who can demonstrate that they have a dependent also may be able to use this filing status to qualify for certain tax credits.,investopedia,1,19.71,23.2,0,10.58,26.2,10.19,17.75,25.89
Depletion,"Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals, and oil from the earth.",investopedia,1,47.12,12.7,0,13.93,16.3,11.41,19,21.27
Deposit,"A deposit is a financial term that means money held at a bank. A deposit is a transaction involving a transfer of money to another party for safekeeping. However, a deposit can refer to a portion of money used as security or collateral for the delivery of a good.",investopedia,1,54.93,9.6,13,7.42,7.4,7.67,11.16666667,12.23
Deposit at Custodian (DWAC),"Deposit/withdrawal at custodian (DWAC) is a method of electronically transferring new shares or paper share certificates to and from the Depository Trust Company (DTC) using a Fast Automated Securities Transfer (FAST) service transfer agent as the distribution point. The DWAC is one of two ways of transferring between broker/dealers and the DTC, the other being the Direct Registry System (DRS) method. Both enable investors to hold securities in registered form on the books of the transfer agent, rather than in physical form. DRS is different from DWAC in that shares in DRS have already been issued and are held electronically on the books of the transfer agent.",investopedia,1,44.27,13.7,14.9,12.77,16.8,9.1,16.75,14.83
Deposit Multiplier,The deposit multiplier is the maximum amount of money a bank can create for each unit of reserves. The deposit multiplier is normally a percentage of the amount on deposit at the bank. The deposit multiplier requirement is key to maintaining an economy's basic money supply. Reliance on a deposit multiplier is called a fractional reserve banking system and is now common to banks in most nations around the world.,investopedia,1,53.71,10.1,12.6,10.79,10.7,9.24,11.5,11.57
Deposit Slip,"A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip, by definition, contains the date, the name of the depositor, the depositor's account number, and the amounts being deposited.",investopedia,1,50.16,11.5,0,10.62,12.6,8.06,13,13.16
Deposition,"A deposition, an integral part of the discovery process, is testimony made under oath and taken down in writing by an authorized officer of the court, typically in an out-of-court setting and before trial.",investopedia,1,28.51,17.7,0,11.62,19.4,9.5,25,20.66
Depository,"The term depository refers to a facility in which something is deposited for storage or safeguarding or an institution that accepts currency deposits from customers such as a bank or a savings association. A depository can be an organization, bank, or institution that holds securities and assists in the trading of securities. A depository provides security and liquidity in the market, uses money deposited for safekeeping to lend to others, invests in other securities, and offers a funds transfer system. A depository must return the deposit in the same condition upon request.",investopedia,1,22.75,15.8,15.9,13.35,15.2,9.93,16.5,14.85
Depositary Receipt,A depositary receipt (DR) is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. The depositary receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market.,investopedia,1,37.13,14.4,0,13.18,16.1,10.78,17.75,16.47
Depository Transfer Check,"A depository transfer check (DTC) is used by a designated collection bank to deposit the daily receipts of a corporation from multiple locations. Depository transfer checks are a way to ensure better cash management for companies, which collect cash at multiple locations.",investopedia,1,24.78,15,0,14.04,15.1,9.94,16,16.02
Depository Trust and Clearing Corporation (DTCC),"The Depository Trust and Clearing Corporation (DTCC) is an American financial services company founded in 1999 that provides clearing and settlement services for the financial markets. When the DTCC was established in 1999, it combined the functions of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). The NSCC is currently a subsidiary of the DTCC.",investopedia,1,24.61,17.2,0,15.56,20.3,10.18,21.75,16.55
Depository Trust Company (DTC),"The Depository Trust Company (DTC) is one of the world's largest securities depositories. Founded in 1973 and based in New York City, the DTC is organized as a limited purpose trust company and provides safekeeping through electronic record-keeping of securities balances. It also acts as a clearinghouse to process and settle trades in corporate and municipal securities.",investopedia,1,35.27,13.1,15.9,14.04,14.2,10.95,14.5,14.62
Depreciated Cost,"Depreciated cost is the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it. In a broader economic sense, the depreciated cost is the aggregate amount of capital that is ""used up"" in a given period, such as a fiscal year. The depreciated cost can be examined for trends in a company's capital spending and how aggressive their accounting methods are, seen through how accurately they calculate depreciation. Depreciated cost is also known as the ""salvage value,"" ""net book value,"" or ""adjusted cost basis.""",investopedia,1,39.87,13.4,15.6,11.44,14,8.93,16.125,14.83
"Depreciation, Depletion, and Amortization (DD&A)","Depreciation, depletion, and amortization (DD&A) is an accounting technique that enables companies to gradually expense various different resources of economic value over time in order to match costs to revenues.",investopedia,1,7.19,19.7,0,17.53,22.3,13.02,24,22.67
Depreciation Recapture,"Depreciation recapture is the gain realized by the sale of depreciable capital property that must be reported as ordinary income for tax purposes. Depreciation recapture is assessed when the sale price of an asset exceeds the tax basis or adjusted cost basis. The difference between these figures is thus ""recaptured"" by reporting it as ordinary income.",investopedia,1,35.57,12.9,16.3,13.05,13,9.36,14.66666667,15.34
Depth of Market (DOM),"Depth of market (DOM) is a measure of the supply and demand for liquid, tradeable assets. It is based on the number of open buy and sell orders for a given asset such as a stock or futures contract. The greater the quantity of those orders, the deeper or more liquid, the market is considered to be.",investopedia,1,69.11,8.3,7.8,6.62,8.1,9.01,10.16666667,9
Deregulation,"Deregulation is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Over the years, the struggle between proponents of regulation and proponents of no government intervention has shifted market conditions. Finance has historically been one of the most heavily scrutinized industries in the United States.",investopedia,1,18.65,15.3,17.9,17,16.2,10.77,16,18.91
Derived Demand,"Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. Derived demand can have a significant impact on the derived product's market price.",investopedia,1,51.89,10.8,11.9,11.02,11.7,7.86,12,11.17
Descending Triangle,"A descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line because it suggests that the downward momentum is building and a breakdown is imminent. Once the breakdown occurs, traders enter into short positions and aggressively help push the price of the asset even lower.",investopedia,1,51.21,13.1,14.1,11.73,16.3,9.87,17.83333333,16.5
Descriptive Statistics,"Descriptive statistics are brief descriptive coefficients that summarize a given data set, which can be either a representation of the entire or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median, and mode, while measures of variability include standard deviation, variance, minimum and maximum variables, kurtosis, and skewness.",investopedia,1,23.46,15.5,17.1,16.77,18,10.63,17.16666667,16.68
Developed Economy,"A developed economy is typically characteristic of a developed country with a relatively high level of economic growth and security. Standard criteria for evaluating a country's level of development are income per capita or per capita gross domestic product, the level of industrialization, the general standard of living, and the amount of technological infrastructure.",investopedia,1,1.77,19.7,0,16.66,19.9,11.12,21.5,21.17
Development Economics,"Development economics is a branch of economics that focuses on improving fiscal, economic, and social conditions in developing countries. Development economics considers factors such as health, education, working conditions, domestic and international policies, and market conditions with a focus on improving conditions in the world's poorest countries.",investopedia,1,13.78,17.2,0,20.14,21.4,11.52,20.75,18.76
Diamonds,Diamonds is an informal term for an index-based exchange-traded fund (ETF) known as the SPDR Dow Jones Industrial Average ETF. The Diamonds ETF trades on the NYSE Arca exchange under the ticker symbol DIA. The ETF's objective is to provide returns that mirror the price and yield performance of the Dow Jones Industrial Average (DJIA).,investopedia,1,52.9,10.4,13.6,11.31,11.8,11.72,12.5,11.68
Digital Currency,"Digital currency is a form of currency that is available only in digital or electronic form, and not in physical form. It is also called digital money, electronic money, electronic currency, or cyber cash.",investopedia,1,37.3,12.3,0,10.73,10.9,7.73,13.5,11.51
Digital Marketing,"Digital marketing is the use of the Internet, mobile devices, social media, search engines, and other channels to reach consumers. Some marketing experts consider digital marketing to be an entirely new endeavor that requires a new way of approaching customers and new ways of understanding how customers behave compared to traditional marketing.",investopedia,1,28.17,15.8,0,15.26,18.3,11.3,19.5,17.32
Digital Money,"Digital money, or digital currency, refers to any means of payment that exists purely in electronic form. Digital money is not tangible like a dollar bill or a coin. It is accounted for and transferred using computers. One well-known form of digital money is the cryptocurrency Bitcoin.",investopedia,1,51.04,9.1,12.2,10.42,8.6,8.59,7.375,10.68
Digital Option,"A binary option is a financial product where the parties involved in the transaction are assigned one of two outcomes based on whether the option expires in the money. Binary options depend on the outcome of a ""yes or no"" proposition, hence the name ""binary."" Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.",investopedia,1,56.89,11,11.9,8.71,11.3,9.17,13.66666667,11.43
Diluted Earnings per Share (Diluted EPS),"Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred shares, convertible debentures, stock options, and warrants. The diluted EPS will usually be lower than the simple or basic EPS but in the rare case that there are anti-dilutive securities it may be higher. In this case only the basic EPS is reported in the financial statements.",investopedia,1,43.43,12,15.2,12.71,13.2,10.13,14.125,13.95
Dilution,"Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company. Stock dilution can also occur when holders of stock options, such as company employees, or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company, making each share less valuable.",investopedia,1,31.51,14.5,17.9,15.26,16.8,10.1,18,16.73
Dim Sum Bond,"Dim sum bond' is a slang term for bonds denominated in Chinese renminbi and issued in Hong Kong. Dim sum bonds are attractive to foreign investors who desire exposure to renminbi-denominated assets, but are restricted by China's capital controls from investing in domestic Chinese debt.	investopedia	1	40.18	13.2	0	13.41	15.3	11.77	14	15.75	15.22	15th and 16th grade	81.9	76.35	36.45	4.2	48.33333333	40.39
Direct Cost	A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct and indirect costs are the two major types of expenses or costs that companies can incur. Direct costs are often variable costs, meaning they fluctuate with production levels such as inventory. However, some costs, such as indirect costs are more difficult to assign to a specific product. Examples of indirect costs include depreciation and administrative expenses.	investopedia	1	55.54	9.4	13.3	11.08	10.2	8.78	22	11	11.81	10th and 11th grade	94.8	89.1	41.84	3.3	57.5106383	57.3
Direct Deposit	The term direct deposit refers to the deposit of funds electronically into a bank account rather than through a physical, paper check. Direct deposit requires the use of an electronic network that allows deposits to take place between banks. This network is called the automated clearing house (ACH). Because the funds are transferred electronically, recipients' accounts are credited automatically, so there is no need to wait for the money to clear. Common uses for direct deposit include paychecks, tax refunds, and other benefits.	investopedia	1	46.17	10.9	10.8	13.11	12.5	9.22	20	10.1	10.5	10th and 11th grade	87.9	87.4	38.09	3.4	52.61445783	45.56
Direct Investment	Direct investment is more commonly referred to as foreign direct investment (FDI). FDI refers to an investment in a foreign business enterprise designed to acquire a controlling interest in the enterprise. The direct investment provides capital funding in exchange for an equity interest without the purchase of regular shares of a company's stock.	investopedia	1	36.59	12.6	15.5	14.15	13.7	9.88	15	13.5	13.12	13th and 14th grade	80.8	77.5	35.94	4.2	50.13207547	36.4
Direct Market Access (DMA)	Direct market access (DMA) refers to access to the electronic facilities and order books of financial market exchanges that facilitate daily securities transactions. Direct market access requires a sophisticated technology infrastructure and is often owned by sell-side firms. Rather than relying on market-making firms and broker-dealers to execute trades, some buy-side firms use direct market access to place trades themselves.	investopedia	1	25.8	14.6	15	17.64	17.7	10.68	17	14.33333333	15.33	14th and 15th grade	72.4	69.5	29.84	4.8	42.16666667	20.09
Direct Marketing	Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media. Mail, email, social media, and texting campaigns are among the delivery systems used. It is called direct marketing because it generally eliminates the middleman, such as advertising media.	investopedia	1	27.15	16.2	0	15.55	19.2	10.82	17	12.66666667	17.47	15th and 16th grade	71.3	67.93	31.32	4.6	42.51851852	27.85
Direct Method	The direct method is one of two accounting treatments used to generate a cash flow statement. The statement of cash flows direct method uses actual cash inflows and outflows from the company's operations, instead of modifying the operating section from accrual accounting to a cash basis. Accrual accounting recognizes revenue when it is earned versus when the payment is received from a customer.	investopedia	1	41.7	12.7	14.6	13.11	14.1	10.19	19	14.5	14.11	14th and 15th grade	83.4	81.01	37.04	3.9	50.11111111	42.07
Direct Participation Program (DPP)	A direct participation program (DPP) is a pooled entity that offers investors access to a business venture's cash flow and tax benefits. Also known as a direct participation plan,"" DPPs are non-traded pooled investments in real estate or energy-related ventures over an extended time frame.",investopedia,1,53.07,14.5,16.6,14.11,22.2,11.3,21,18.15
Direct Public Offering (DPO),"A direct public offering (DPO) is a type of offering in which a company offers its securities directly to the public to raise capital. An issuing company using a DPO eliminates the intermediaries—investment banks, broker-dealers, and underwriters—that are typical in initial public offerings (IPO), and self-underwrites its securities.",investopedia,1,13.28,17.4,0,16.48,18.8,11.41,20,18.77
Direct Quote,"A direct quote is a foreign exchange rate quoted in fixed units of foreign currency in variable amounts of the domestic currency. In other words, a direct currency quote asks what amount of domestic currency is needed to buy one unit of the foreign currency—most commonly the U.S. dollar (USD) in forex markets. In a direct quote, the foreign currency is the base currency, while the domestic currency is the counter currency or quote currency.",investopedia,1,54.56,11.9,15.5,11.09,14.5,8.88,17.16666667,11.6
Direct Stock Purchase Plan (DSPP),"A direct stock purchase plan (DSPP) is a program that enables individual investors to purchase a company's stock directly from that company without the intervention of a broker. Some companies that offer DSPPs make the plans directly available to retail investors, while others use transfer agents or other third-party administrators to handle these transactions. Such plans offer low fees and sometimes the ability to purchase shares at a discount.",investopedia,1,39.67,13.4,14.1,14.45,16.2,10.27,15.16666667,13.84
Direct Tax,"A direct tax is a tax that a person or organization pays directly to the entity that imposed it. An individual taxpayer, for example, pays direct taxes to the government for various purposes, including income tax, real property tax, personal property tax, or taxes on assets.",investopedia,1,31.21,14.6,0,11.03,13.6,9.93,18,18.77
Directional Movement Index (DMI),"The directional movement index (DMI) is an indicator developed by J. Welles Wilder in 1978 that identifies in which direction the price of an asset is moving. The indicator does this by comparing prior highs and lows and drawing two lines: a positive directional movement line (+DI) and a negative directional movement line (-DI). An optional third line, called the average directional index (ADX), can also be used to gauge the strength of the uptrend or downtrend.",investopedia,1,51.89,10.8,13.8,10.91,12.1,10.34,13.125,12.4
Dirty Price,"A dirty price is a bond pricing quote, which refers to the cost of a bond that includes accrued interest based on the coupon rate. Bond price quotes between coupon payment dates reflect the accrued interest up to the day of the quote.",investopedia,1,75.03,8.1,0,8.24,10.4,9.11,11.75,9.53
Disability Insurance,"As its name suggests, disability insurance is a type of insurance product that provides income in the event that a policyholder is prevented from working and earning an income due to a disability.",investopedia,1,29.52,17.3,0,11.79,18.5,10.54,22.5,18.05
What Is Disbursement?,"Disbursement means paying out money. The term disbursement may be used to describe money paid into a business' operating budget, the delivery of a loan amount to a borrower, or the payment of a dividend to shareholders. Money paid by an intermediary, such as a lawyer's payment to a third party on behalf of a client, may also be called a disbursement.",investopedia,1,58.92,10.2,13,9.11,11,8.23,13.33333333,12.8
Disclosure,"In the financial world, disclosure refers to the timely release of all information about a company that may influence an investor's decision. It reveals both positive and negative news, data, and operational details that impact its business.",investopedia,1,44.24,11.7,0,14.1,14.1,11.38,13.75,16.05
Discontinued Operations,"In financial accounting, discontinued operations refer to parts of a company’s core business or product line that have been divested or shut down and that are reported separately from continuing operations on the income statement.",investopedia,1,10.57,20.5,0,15.44,22.4,11.69,27.5,24.29
Discount,"A discount, broadly, refers to some reduction in the going price of an item or asset. In finance and investing, a discount refers to a situation when a security is trading for lower than its fundamental or intrinsic value.",investopedia,1,51.68,10.9,0,9.34,10.6,10.27,12.75,13.95
Discount Broker,"A discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full-service broker. However, a discount broker does not provide investment advice or perform analysis on a client's behalf, unlike a full-service broker. Before the emergence of better communications technology, only the wealthy could afford a broker and access to the stock market.",investopedia,1,42,12.5,11.9,13.52,14.6,10.52,12.66666667,12.15
Discount Margin (DM),"A discount margin (DM) is the average expected return of a floating-rate security (typically a bond) that's earned in addition to the index underlying, or reference rate of, the security. The size of the discount margin depends on the price of the floating- or variable-rate security. The return of floating-rate securities changes over time, so the discount margin is an estimate based on the security's expected pattern between issue and maturity.",investopedia,1,30.5,14.9,16.7,12.65,15.6,10.15,17.5,15.68
Discount Rate,"Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal Reserve Bank through the discount window loan process. Second, the discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.",investopedia,1,55.58,11.5,14.6,13.41,15.8,9.65,16,15.16
Discount Yield,"The discount yield is a way of calculating a bond's return when it is sold at a discount to its face value, expressed as a percentage. Discount yield is commonly used to calculate the yield on municipal notes, commercial paper and treasury bills sold at a discount.",investopedia,1,56.08,11.3,0,9.41,12.3,9.17,14.75,14.51
Discounted Cash Flow (DCF),"Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.",investopedia,1,47.12,12.7,0,10.1,13,9.43,16.5,16.27
Discounted Payback Periods,"The discounted payback period is a capital budgeting procedure used to determine the profitability of a project. A discounted payback period gives the number of years it takes to break even from undertaking the initial expenditure, by discounting future cash flows and recognizing the time value of money. The metric is used to evaluate the feasibility and profitability of a given project.",investopedia,1,33.54,13.7,16.3,13.11,13.9,10.01,15.66666667,16.02
Discounts For Lack Of Marketability (DLOM),"Discounts for lack of marketability (DLOM) refer to the method used to help calculate the value of closely held and restricted shares. The theory behind DLOM is that a valuation discount exists between a stock that is publicly traded and thus has a market, and the market for privately held stock, which often has little if any marketplace.",investopedia,1,50.5,13.4,0,11.04,16.1,10.25,18,16.43
Discouraged Worker,"A discouraged worker is a person who is eligible for employment and can work, but who is currently unemployed and has not attempted to find employment in the last four weeks. Discouraged workers usually have given up on searching for a job because they found no suitable employment options or failed to secure a job when they applied.",investopedia,1,50.5,13.4,0,10.69,15.6,9.16,19.5,16.43
Discrete Distribution,"A discrete distribution is a probability distribution that depicts the occurrence of discrete (individually countable) outcomes, such as 1, 2, 3... or zero vs. one. The binomial distribution, for example, is a discrete distribution that evaluates the probability of a ""yes"" or ""no"" outcome occurring over a given number of trials, given the event's probability in each trial—such as flipping a coin one hundred times and having the outcome be ""heads"".",investopedia,1,18.52,19.5,0,12.72,21.6,10.73,24.75,18.71
Discretionary Account,A discretionary account is an investment account that allows an authorized broker to buy and sell securities without the client's consent for each trade. The client must sign a discretionary disclosure with the broker as documentation of the client's consent.,investopedia,1,51.18,11.1,0,14.04,14.5,8.97,13.5,14
Discretionary Expense,"A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.",investopedia,1,56.96,8.9,10.5,14.09,12.1,8.75,7.833333333,8.51
Discretionary Income,"Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing.",investopedia,1,31.55,16.6,0,13.99,20.1,10.27,20.5,18.85
Discretionary Investment Management,"Discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager or investment counselor for the client's account. The term ""discretionary"" refers to the fact that investment decisions are made at the portfolio manager's discretion. This means that the client must have the utmost trust in the investment manager's capabilities.",investopedia,1,42.72,12.3,16.3,14.74,15.2,8.05,15.33333333,12.67
Diseconomies of Scale,"Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm. With this principle, rather than experiencing continued decreasing costs and increasing output, a firm sees an increase in costs when output is increased.",investopedia,1,70.13,8,11.9,11.66,11.7,10.38,11.33333333,11.64
Disguised Unemployment,Disguised unemployment exists when part of the labor force is either left without work or is working in a redundant manner such that worker productivity is essentially zero. It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs.,investopedia,1,44.44,11.6,13,13.63,13.1,10,12.16666667,11.68
Disintermediation,"Disintermediation is the process of cutting out the middleman. It may allow a consumer to buy directly from a wholesaler rather than through an intermediary such as a retailer. Or, it can enable a business to order directly from a manufacturer rather than from a distributor. In the financial industry, it is seen when an investor is able to buy stock directly rather than through a broker or a financial institution.",investopedia,1,53.41,10.2,13.4,10.26,10.5,8.08,12.125,12.75
Dispersion,"Dispersion is a statistical term that describes the size of the distribution of values expected for a particular variable and can be measured by several different statistics, such as range, variance, and standard deviation. In finance and investing, dispersion usually refers to the range of possible returns on an investment. It can also be used to measure the risk inherent in a particular security or investment portfolio.",investopedia,1,31.92,14.3,17.5,13.47,15,10.4,17.5,16.68
Disposable Income,"Disposable income, also known as disposable personal income (DPI), is the amount of money that an individual or household has to spend or save after income taxes have been deducted.",investopedia,1,32.57,16.2,0,11.73,17.4,8.81,20,17.33
Disposition,"A disposition is the act of selling or otherwise ""disposing"" of an asset or security. The most common form of a disposition would be selling a stock investment on the open market, such as a stock exchange.",investopedia,1,52.7,10.5,0,8.41,9.3,7.54,12.25,11.72
Disruptive Innovation,"Disruptive innovation refers to the innovation that transforms expensive or highly sophisticated products or services—previously accessible to a high-end or more-skilled segment of consumers—to those that are more affordable and accessible to a broader population. This transformation disrupts the market by displacing long-standing, established competitors.",investopedia,1,6.34,18,0,22.69,22.7,12.82,19.25,19.67
Disruptive Technology,"Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate. A disruptive technology sweeps away the systems or habits it replaces because it has attributes that are recognizably superior.",investopedia,1,19.87,14.8,0,17.75,16.5,11.72,14.25,17.29
Dissenters' Rights,"Under various forms of state legislation, dissenting shareholders of a corporation are entitled to receive a cash payment for the fair value of their shares, in the event of a share-for-share merger or acquisition (M&A) to which the shareholders do not consent. Dissenters' rights allow dissenting shareholders an easy way out of the company if they do not want to be a part of the merger.",investopedia,1,46.44,15,0,10.92,18.2,8.86,22.5,17.44
Distressed Sales,"A distress sale—also called a distressed sale—occurs when a property, stock, or other asset must be sold quickly. Distress sales often result in a financial loss for the seller who, for reasons of economic duress, must accept a lower price. The proceeds from these assets are most often used to pay debts or medical expenses or for other emergencies.",investopedia,1,59.94,9.8,11.2,10.73,11.7,9.97,11.83333333,11.95
Distressed Securities,"Distressed securities are financial instruments issued by a company that is near to—or currently going through—bankruptcy. Distressed securities can include common and preferred shares, bank debt, trade claims, and corporate bonds.",investopedia,1,47.28,10.5,0,19.66,17.3,12.05,11.25,13.94
Distributable Net Income (DNI),"The term distributable net income (DNI) refers to income allocated from a trust to its beneficiaries. Distributable net income is the maximum amount received by a unitholder or a beneficiary that is taxable. This figure is capped to ensure there is no instance of double taxation. Any amount above the DNI is, therefore, tax-free.",investopedia,1,66.23,7.4,9.5,10.9,9.5,8.69,7,9.1
Distributed Ledger Technology,"Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows simultaneous access, validation, and record updating in an immutable manner across a network that's spread across multiple entities or locations.",investopedia,1,4.14,20.9,0,20.72,26.3,14.36,27.5,26.53
Distributed Ledgers,"A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public ""witnesses"". The participant at each node of the network can access the recordings shared across that network and can own an identical copy of it. Any changes or additions made to the ledger are reflected and copied to all participants in a matter of seconds or minutes.",investopedia,1,46.1,13,15.9,13.18,16.1,10.56,13.125,17.47
Distribution Channel,"A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.",investopedia,1,35.27,13.1,0,14.91,14.8,10.81,13,13.92
Distribution In Kind,"A distribution-in-kind, also referred to as a distribution-in-specie, is a payment made in the form of securities or other property rather than in cash. A distribution-in-kind may be made in several different situations, including the payment of a stock dividend or inheritance, or taking securities out of a tax-deferred account. It can also refer to the transfer of an asset to a beneficiary over the option of liquidating the position and transferring the cash.",investopedia,1,29.48,15.3,16.3,12.54,15.8,8.7,17.66666667,15.83
Distribution Management,"Distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics.",investopedia,1,33.75,13.6,0,15.37,16,11.2,16.75,20.88
Distribution Network,"In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network. A fast and reliable distribution network is essential in today's instant gratification society of consumers.",investopedia,1,32.53,14.1,15.5,14.68,15.8,10.06,15.5,16.68
Distribution Waterfall,"A distribution waterfall a way to allocate investment returns or capital gains among participants of a group or pooled investment. Commonly associated with private equity funds, the distribution waterfall defines the pecking order in which distributions are allocated to limited and general partners.",investopedia,1,15.81,16.4,0,17.11,17.6,11.68,18.75,18.83
Distribution Yield,"A distribution yield is the measurement of cash flow paid by an exchange-traded fund (ETF), real estate investment trust, or another type of income-paying vehicle. Rather than calculating the yield based on an aggregate of distributions, the most recent distribution is annualized and divided by the net asset value (NAV) of the security at the time of the payment.",investopedia,1,33.07,16,0,12.43,17.8,10.72,21.75,18.58
Divergence,"Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.",investopedia,1,46.1,13,0,9.93,13.4,9.3,17,14.8
Diversified Company,A diversified company is a type of company that has multiple unrelated businesses or products. Unrelated businesses are those that:,investopedia,1,27.49,11.9,0,13.14,9.9,8.87,8,12
Divestiture,"A divestiture is the partial or full disposal of a business unit through sale, exchange, closure, or bankruptcy. A divestiture most commonly results from a management decision to cease operating a business unit because it is not part of a core competency.",investopedia,1,50.16,11.5,0,11.6,13.1,9.94,15,16.02
Divestment,"Divestment is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Also known as divestiture, divestment is effectively the opposite of an investment and is usually done when that subsidiary asset or division is not performing up to expectations.",investopedia,1,28.17,15.8,0,13.35,16.7,10.09,20.5,19.63
Dividend Aristocrat,A dividend aristocrat is a company in the S&P 500 index that not only consistently pays a dividend to shareholders but annually increases the size of its payout.,investopedia,1,26.14,16.6,0,10.33,15.1,11.79,22,19.77
Dividend Discount Model (DDM),"The dividend discount model (DDM) is a quantitative method used for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value. It attempts to calculate the fair value of a stock irrespective of the prevailing market conditions and takes into consideration the dividend payout factors and the market expected returns. If the value obtained from the DDM is higher than the current trading price of shares, then the stock is undervalued and qualifies for a buy, and vice versa.",investopedia,1,45.43,15.4,16.3,11.5,18.9,10.43,22,19.09
Dividend Growth Rate,The dividend growth rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time. Many mature companies seek to increase the dividends paid to their investors on a regular basis. Knowing the dividend growth rate is a key input for stock valuation models known as dividend discount models.,investopedia,1,44.03,11.8,15,12.13,12.1,10.2,13.66666667,14.62
Dividend Irrelevance Theory,Dividend irrelevance theory holds the belief that dividends don't have any effect on a company's stock price. A dividend is typically a cash payment made from a company's profits to its shareholders as a reward for investing in the company. The dividend irrelevance theory goes on to state that dividends can hurt a company's ability to be competitive in the long term since the money would be better off reinvested in the company to generate earnings.,investopedia,1,37.34,14.3,18.2,11.26,14.6,8.42,19.66666667,16.44
Dividend Payout Ratio,The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends. The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations. It is sometimes simply referred to as the 'payout ratio.',investopedia,1,62.38,8.9,12.6,8.76,9,8.61,11.375,10.4
Dividend Per Share (DPS),"Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time, usually a year, by the number of outstanding ordinary shares issued. A company's DPS is often derived using the dividend paid in the most recent quarter, which is also used to calculate the dividend yield.",investopedia,1,37.34,14.3,17.5,11.2,14.8,9.46,19,16.44
Dividend Policy,"A dividend policy is the policy a company uses to structure its dividend payout to shareholders. Some researchers suggest the dividend policy is irrelevant, in theory, because investors can sell a portion of their shares or portfolio if they need funds. This is the dividend irrelevance theory, which infers that dividend payouts minimally affect a stock's price.",investopedia,1,35.27,13.1,16.3,13.63,13.8,10.4,14.83333333,13.21
Dividend Rate,"The dividend rate is the total expected dividend payments from an investment, fund or portfolio expressed on an annualized basis plus any additional non-recurring dividends that an investor may receive during that period. Depending on the company's preferences and strategy, the dividend rate can be fixed or adjustable.",investopedia,1,30.2,15,0,15.5,17.6,12.39,19.5,20.43
Dividend Recapitalization,"A dividend recapitalization (also known as a dividend recap) happens when a company takes on new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to the company declaring regular dividends, based on earnings.",investopedia,1,25.12,17,0,14.23,18.6,11.06,22.5,17.81
Dividends Received Deduction (DRD),"The dividends received deduction (DRD) is a federal tax deduction in the United States that is given to certain corporations that get dividends from related entities. The amount of the dividend that a company can deduct from its income tax is tied to how much ownership the company has in the dividend-paying company. However, there are criteria that corporations must meet in order to qualify for the dividends received deduction (DRD).",investopedia,1,38.96,13.7,17.9,12.25,14.8,8.15,18.5,15.11
Dividend Reinvestment Plan (DRIP),"A dividend reinvestment plan (DRIP) is a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date. Although the term can apply to any automatic reinvestment arrangement set up through a brokerage or investment company, it generally refers to a formal program offered by a publicly traded corporation to existing shareholders. Around 650 companies and 500 closed-end funds currently do so.",investopedia,1,37.64,14.2,17.5,14.8,17.3,11.61,18.83333333,18.53
Documentary Collection,"Documentary collection is a form of trade finance in which an exporter is paid for its goods by an importer after the two parties' banks exchange the required documents. The exporter's bank collects funds from the importer's bank in exchange for documents releasing title to the shipped merchandise, usually after the goods arrive at the importer's location.",investopedia,1,42.55,14.4,0,13.06,17.8,10.04,18.25,16.31
Dodd-Frank Wall Street Reform and Consumer Protection Act,"The Dodd-Frank Wall Street Reform and Consumer Protection Act was created as a response to the financial crisis of 2008. Named after sponsors Senator Christopher J. Dodd (D-Conn.) and Representative Barney Frank (D-Mass.), the act contains numerous provisions, spelled out over roughly 2,300 pages, that were to be implemented over a period of several years.",investopedia,1,52.9,10.4,13.6,13.11,13.8,13.44,12.5,13.87
Dogs of the Dow,"Dogs of the Dow is an investment strategy that attempts to beat the Dow Jones Industrial Average (DJIA) each year by leaning portfolios toward high-yield investments. The general concept is to allocate money to the 10 highest dividend-yielding, blue-chip stocks among the 30 components of the DJIA.",investopedia,1,47.62,12.5,0,13.12,15.6,12.19,16.75,17.06
Doji,"A doji—or more accurately, ""dо̄ji""—is a name for a session in which the candlestick for a security has an open and close that are virtually equal and are often components in patterns. Doji candlesticks look like a cross, inverted cross or plus sign. Alone, doji are neutral patterns that are also featured in a number of important patterns.",investopedia,1,60.35,9.6,12.5,10.21,11.2,8.41,12.33333333,11.86
Dollar-Cost Averaging (DCA),"Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals. In effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices. Dollar-cost averaging is also known as the constant dollar plan.",investopedia,1,40.69,13.1,15.2,11.14,13.2,10.11,15.5,14.25
Dollarization,"Dollarization is the term for when the U.S. dollar is used in addition to or instead of the domestic currency of another country. It is an example of currency substitution. Dollarization usually happens when a country’s own currency loses its usefulness as a medium of exchange, due to hyperinflation or instability.",investopedia,1,37.3,12.3,15.5,12,11.7,9.43,13.16666667,14.64
Domestic Corporation,"A domestic corporation is a company that conducts its affairs in its home country. A domestic business is often taxed differently than a non-domestic business and may be required to pay duties or fees on the products it imports. Typically, a domestic corporation can easily conduct business in other states or parts of the country where it has filed its articles of incorporation.",investopedia,1,41.7,12.7,14.6,11.6,12.9,9.44,14.5,12.84
Domestic Relations Order (DRO),"A domestic relations order (DRO) is a court order that gives a spouse or dependent the right to receive all or a portion of the benefits of an employee’s qualified retirement plan in the event of divorce. A DRO is usually sent to a plan administrator or employer for review, and if it meets certain laws, it will result in the plan benefits distributed between the parties involved. The parties involved are normally the employee and their spouse.",investopedia,1,53.55,12.3,15.5,10.1,14,9.78,17.66666667,17.07
Domicile,Your domicile is the place where you maintain a permanent home. Your country of domicile means the country you permanently reside in.,investopedia,1,68.77,6.4,0,10.54,8,7.77,5.5,8.04
Donchian Channels,"Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a midrange or median band. The upper band marks the highest price of a security over N periods while the lower band marks the lowest price of a security over N periods. The area between the upper and lower bands represents the Donchian Channel. Career futures trader Richard Donchian developed the indicator in the mid-20th century to help him identify trends. He would later be nicknamed ""The Father of Trend Following.""",investopedia,1,52.8,10.5,13,11.89,11.9,10.56,12.2,12.14
Dormant Account,"A dormant account is an account that has had no financial activity for a long period of time, except for the posting of interest. Financial institutions are required by state laws to transfer resources held in dormant accounts to the state's treasury after the accounts have been dormant for a certain period of time. The amount of time varies depending on the state.",investopedia,1,58.62,10.3,12.5,10.33,11.9,8.69,13.16666667,12.21
Dotcom,"A dotcom, or dot-com, is a company that conducts business primarily through a website. A dotcom company embraces the Internet as the key component in its business.",investopedia,1,49.31,9.7,0,10.49,9.2,8.98,8.25,9.84
Dotcom Bubble,"The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s. The value of equity markets grew exponentially during this period, with the technology-dominated Nasdaq index rising from under 1,000 to more than 5,000 between the years 1995 and 2000. Things started to change in 2000, and the bubble burst between 2001 and 2002 with equities entering a bear market.",investopedia,1,37.34,14.3,14.6,12.31,15.7,11.33,16.66666667,15.91
Double Bottom,"A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter ""W"". The twice-touched low is considered a support level.",investopedia,1,54.22,9.9,12.2,9.92,10.1,9.12,11,10.92
Double Declining Balance Depreciation Method (DDB),"The double declining balance depreciation (DDB) method, also known as the reducing balance method, is one of two common methods a business uses to account for the expense of a long-lived asset. The double declining balance depreciation method is an accelerated depreciation method that counts as an expense more rapidly (when compared to straight-line depreciation that uses the same amount of depreciation each year over an asset's useful life). Similarly, compared to the standard declining balance method, the double declining method depreciates assets twice as quickly.",investopedia,1,25.42,16.8,15,15.27,19.6,8.73,18.66666667,14.27
Double Entry,"Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation:",investopedia,1,28.84,13.5,0,16.88,15.8,10.52,13.5,16.21
Double Exponential Moving Average (DEMA),"The double exponential moving average (DEMA) is a technical indicator introduced by Patrick Mulloy in his January 1994 article ""Smoothing Data With Faster Moving Averages"" in Technical Analysis of Stocks & Commodities magazine. The purpose is to reduce the amount of noise present in price charts used by technical traders.",investopedia,1,29.69,15.2,0,14.63,17.1,11.62,19,17.15
Double Irish With A Dutch Sandwich,"The double Irish with a Dutch sandwich is a tax avoidance technique employed by certain large corporations, involving the use of a combination of Irish and Dutch subsidiary companies to shift profits to low or no-tax jurisdictions. The technique has made it possible for certain corporations to reduce their overall corporate tax rates dramatically.",investopedia,1,35.61,15,0,14.39,17.9,10.24,18,15.99
Double-Spending,Double-spending is the risk that a digital currency can be spent twice. It is a potential problem unique to digital currencies because digital information can be reproduced relatively easily by savvy individuals who understand the blockchain network and the computing power necessary to manipulate it.,investopedia,1,23.26,15.6,0,15.73,16.7,11.42,19.25,19.67
Double Taxation,Double taxation is a tax principle referring to income taxes paid twice on the same source of income. It can occur when income is taxed at both the corporate level and personal level. Double taxation also occurs in international trade or investment when the same income is taxed in two different countries. It can happen with 401k loans.,investopedia,1,56.76,8.9,11.7,9.74,8.6,8.44,8.5,10.63
Double Top,A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.,investopedia,1,54.05,12.1,0,10.22,13.7,10.47,15.25,14.12
Dove,"A dove is an economic policy advisor who promotes monetary policies that usually involve low-interest rates. Doves tend to support low-interest rates and an expansionary monetary policy because they value indicators like low unemployment over keeping inflation low. If an economist suggests that inflation has few negative effects or calls for quantitative easing, then they are called a dove or labeled as dovish.",investopedia,1,33.24,13.8,16.7,14.68,15.4,11.7,16.16666667,16.65
Dow 30,"The Dow 30, commonly referred to as the ""Dow,"" or the ""Dow Jones Industrial Average,"" was created by Wall Street Journal editor Charles Dow and got its name from Dow and his business partner, Edward Jones.",investopedia,1,51.86,15,0,9.76,19.2,10.69,23,19.96
Dow Jones CDX,"The credit default swap index (CDX), formerly the Dow Jones CDX, is a benchmark financial instrument made up of credit default swaps (CDS) that have been issued by North American or emerging market companies. The CDX was the first CDS index, which was created in the early 2000s and was based on a basket of single issuer CDSs.",investopedia,1,29.53,23.6,0,10.11,29.8,12.23,17.5,26.65
Dow Jones Industrial Average (DJIA),"The Dow Jones Industrial Average (DJIA), also known as the Dow 30, is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange and the NASDAQ. The Dow Jones is named after Charles Dow, who created the index in 1896 along with his business partner Edward Jones.",investopedia,1,60.48,11.7,0,9.99,15.1,10.46,15.75,13.91
Dow Theory,"The Dow theory is a financial theory that says the market is in an upward trend if one of its averages (i.e. industrials or transportation) advances above a previous important high and is accompanied or followed by a similar advance in the other average. For example, if the Dow Jones Industrial Average (DJIA) climbs to an intermediate high, the Dow Jones Transportation Average (DJTA) is expected to follow suit within a reasonable period of time.",investopedia,1,24.95,19.1,0,11.38,20.9,11.18,28.75,23
Down Payment,"A down payment is a type of payment, often in cash, made in the early stages of a purchase of an expensive good or service. The payment represents a percentage of the full purchase price. In some cases, the down payment is not refundable if the deal falls through because of the purchaser. In most cases, the purchaser makes financing arrangements to cover the remaining amount owed to the seller.",investopedia,1,62.17,8.9,11.7,8.93,9.4,8.11,11,11.57
Down Round,A down round refers to a private company offering additional shares for sale at a lower price than had been sold for in the previous financing round.,investopedia,1,52.53,12.6,0,9.23,13.5,9.65,18.5,16.73
Downside Risk,"Downside risk is an estimation of a security's potential loss in value if market conditions precipitate a decline in that security's price. Depending on the measure used, downside risk explains a worst-case scenario for an investment and indicates how much the investor stands to lose. Downside risk measures are considered one-sided tests since the potential for profit is not considered.",investopedia,1,42.72,12.3,14.6,13.87,14.5,9.89,14,14
What Are Downstream Operations?,"Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids, diesel, and a variety of other energy sources. The closer an oil and gas company is to the process of providing consumers with petroleum products, the further downstream the company is said to be.",investopedia,1,43.02,12.2,14.1,12.42,13.1,10.5,13.5,13.98
Downtrend,"A downtrend refers to the price action of a security that moves lower in price as it fluctuates over time. While the price may move intermittently higher or lower, downtrends are characterized by lower peaks and lower troughs over time. Technical analysts pay attention to downtrends because they represent something more than a random losing streak. Securities in a downtrend seem to be more likely to continue trending lower until some market condition changes, implying that a downtrend marks a fundamentally deteriorating condition.",investopedia,1,41.9,12.6,14.2,14.04,14.7,9.99,14.125,14.59
Drag-Along Rights,"A drag-along right is a provision or clause in an agreement that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority shareholder the same price, terms, and conditions as any other seller.",investopedia,1,37.64,14.2,0,10.74,14.1,8.98,18,14
Dragonfly Doji Candlestick,"A Dragonfly Doji is a type of candlestick pattern that can signal a potential reversal in price to the downside or upside, depending on past price action. It's formed when the asset's high, open, and close prices are the same. The long lower shadow suggests that there was aggressive selling during the period of the candle, but since the price closed near the open it shows that buyers were able to absorb the selling and push the price back up.",investopedia,1,61.29,11.3,11.9,8.94,13.5,9.3,15.66666667,13.68
Drawdown,"A drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund. A drawdown is usually quoted as the percentage between the peak and the subsequent trough. If a trading account has $10,000 in it, and the funds drop to $9,000 before moving back above $10,000, then the trading account witnessed a 10% drawdown.",investopedia,1,59.94,9.8,11.2,10.15,12,9.16,11.83333333,11.95
Drawee,"Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.",investopedia,1,65.76,9.6,11.2,6.97,9.6,8.04,13.16666667,12.5
Drawing Account,A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships. Owner withdrawals from businesses that are taxed as separate entities must generally be accounted for as either compensation or dividends.,investopedia,1,44.75,11.5,14.6,14.44,13.8,8.92,13,14.61
Dry Powder,"Dry powder is a slang term referring to marketable securities that are highly liquid and considered cash-like. Dry powder can also refer to cash reserves kept on hand by a company, venture capital firm or individual to cover future obligations, purchase assets or make acquisitions. Securities considered to be dry powder could be Treasuries or other short-term fixed income investment that can be liquidated on short notice in order to provide emergency funding or allow an investor to purchase assets.",investopedia,1,35.91,14.9,15,13.23,16.9,9.9,17.66666667,15.18
Dual Class Stock,"A dual class stock is when a company issues two share classes. A dual class stock structure can consist of Class A and Class B shares, for example. These shares can differ in terms of voting rights and dividend payments.",investopedia,1,74.9,6.1,8.8,7.53,6.6,9.82,6.666666667,7.32
"Dual Income, No Kids (DINK)","Dual income, no kids (DINK) is a slang phrase for a household in which there are two incomes and no children. Couples living in a DINK household frequently have more disposable income because they do not have the added expenses that come with children. They also often spend less per person on housing than singles because of their ability to share kitchens, bathrooms, and living rooms.",investopedia,1,66.07,9.5,9.7,10.33,12.6,9.27,12.33333333,11.22
Dual Listing,"Dual listing refers to a listing of any security on two or more different exchanges. Companies use dual listing because of its benefits such as additional liquidity, increased access to capital, and the ability for its shares to trade for longer periods if the exchanges on which its shares are listed are in different time zones outweigh the costs of a second listing. Some exchanges have a number of listing categories for companies that seek a dual listing, each with different requirements and benefits.",investopedia,1,43.06,14.2,15.9,11.96,16.4,8.97,19,15.49
Due from Account,A due from account is an asset account in the general ledger used to track money owed to a company that is currently being held at another firm. It is typically used in conjunction with a due to account and is sometimes referred to as intercompany receivables.,investopedia,1,47.62,12.5,0,9.17,11.8,8.16,15.75,13.66
Due to Account,A due to account is a liability account typically found inside the general ledger that indicates the amount of funds payable to another party. The funds can be currently due or due at a point in the future. This due to account is usually generated and put on the books as the result of a transaction.,investopedia,1,60.95,9.4,13,7.78,8.5,8.23,12.33333333,12.48
Due Diligence,"Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.",investopedia,1,25.8,14.6,0,15.37,15.7,10.55,14,14
Dumping,"Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. Because dumping typically involves substantial export volumes of a product, it often endangers the financial viability of the product's manufacturer or producer in the importing nation.",investopedia,1,40.99,12.9,14.6,13,14.5,10.06,14.83333333,14.83
Dun & Bradstreet (D&B),"Dun & Bradstreet is a corporation that offers information on commercial credit as well as reports on businesses. Most notably, Dun & Bradstreet is recognizable for its Data Universal Numbering System (DUNS numbers); these generate business information reports for more than 100 million companies around the globe. Dun & Bradstreet was established as the result of a merger in the 1930s between R.G. Dun & Co. and the Bradstreet Cos.",investopedia,1,46.27,10.9,12.6,13.16,12.8,11.39,11.5,12.66
DuPont Analysis,The DuPont analysis (also known as the DuPont identity or DuPont model) is a framework for analyzing fundamental performance popularized by the DuPont Corporation. DuPont analysis is a useful technique used to decompose the different drivers of return on equity (ROE). The decomposition of ROE allows investors to focus on the key metrics of financial performance individually to identify strengths and weaknesses.,investopedia,1,25.08,14.9,16.7,15.08,15.7,11.03,16,17.31
Durable Goods Orders,Durable goods orders is a broad-based monthly survey conducted by the U.S. Census Bureau that measures current industrial activity and is used as an economic indicator by investors.,investopedia,1,40.35,11.1,0,13.22,11.5,13.92,8.5,12.74
Durbin Watson Statistic,The Durbin Watson (DW) statistic is a test for autocorrelation in the residuals from a statistical regression analysis. The Durbin-Watson statistic will always have a value between 0 and 4. A value of 2.0 means that there is no autocorrelation detected in the sample. Values from 0 to less than 2 indicate positive autocorrelation and values from from 2 to 4 indicate negative autocorrelation.,investopedia,1,38.32,11.9,13.8,11.6,10.9,8.87,11.5,12.03
Dutch Auction,"A Dutch auction is a market structure in which the price of something offered is determined after taking in all bids to arrive at the highest price at which the total offering can be sold. In this type of auction, investors place a bid for the amount they are willing to buy in terms of quantity and price.",investopedia,1,67.42,11.1,0,7.9,13.3,8.61,16,13.67
Dutch Disease,Dutch disease is an economic term for the negative consequences that can arise from a spike in the value of a nation’s currency. It is primarily associated with the new discovery or exploitation of a valuable natural resource and the unexpected repercussions that such a discovery can have on the overall economy of a nation.,investopedia,1,43.56,14,0,11.49,15.6,10.17,20.25,19.73
Dutch Tulip Bulb Market Bubble,"The Dutch tulip bulb market bubble, also known as 'tulipmania' was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid 1600s when speculation drove the value of tulip bulbs to extremes. At the height of the market, the rarest tulip bulbs traded for as much as six times the average person's annual salary.",investopedia,1,74.83,8.2,9.7,9.11,11.4,9.33,12.16666667,11.14
Dynasty Trust,"A dynasty trust is a long-term trust created to pass wealth from generation to generation without incurring transfer taxes—such as the gift tax, estate tax, or generation-skipping transfer tax (GSTT)—for as long as assets remain in the trust.",investopedia,1,32.91,18.1,0,13.7,23.1,9.68,26,18.36
E-Mini,"An E-mini is an electronically traded futures contract that is a fraction of the value of a corresponding standard futures contract. E-minis are predominantly traded on the Chicago Mercantile Exchange (CME) and are available on a wide range of indexes, such as the NASDAQ 100, S&P 500, S&P MidCap 400, and Russell 2000, commodities, and currencies.",investopedia,1,34.6,15.4,0,11.9,17.2,12.92,18.5,16.2
EAFE Index,"The EAFE Index is a stock index offered by MSCI that covers non-U.S. and Canadian equity markets. It serves as a performance benchmark for the major international equity markets as represented by 21 major MSCI indices from Europe, Australasia, and the Middle East.",investopedia,1,41.19,12.9,0,11.72,13.6,12.05,14.25,14.18
Early Adopter,"The term ""early adopter"" refers to an individual or business who uses a new product, innovation, or technology before others. An early adopter is likely to pay more for the product than later adopters but accepts this premium if using the product improves efficiency, reduces cost, increases market penetration, or raises the early adopter's social status.",investopedia,1,34.6,15.4,0,13.23,18,11.23,17.5,16.2
Earmarking,"Earmarking is the practice of setting particular money aside for a specific purpose. The term can be used in several contexts, such as in congressional appropriations of taxpayer funds to individual practices like mental accounting.",investopedia,1,28.33,13.7,0,14.73,14,10.82,13.25,16.14
Earned Income,"Earned income includes money made from employment including wages, salaries, bonuses, commissions, tips, and net earnings from self-employment, according to the Internal Revenue Service (IRS) definition. It can also include long-term disability and union strike benefits and, in some cases, payments from certain deferred retirement compensation arrangements.",investopedia,1,22.24,16,0,19.9,21.7,13.54,17.75,18.76
Earned Income Credit (EIC),"The earned-income credit (EIC) is a refundable tax credit that helps certain U.S. taxpayers with low earnings by reducing the amount of tax owed on a dollar-for-dollar basis. Taxpayers may be eligible for refunds if their tax credit exceeds their tax liability for the year. Legislation enacted in 2020 recognized that many taxpayers’ incomes that year were lower than their incomes in 2019 due to the COVID pandemic; this law allows taxpayers to base the EIC claimed on their 2020 tax returns on either their 2019 or 2020 earnings. For 2021 tax returns, the law liberalizes some EIC rules and makes an increased EIC available to more childless taxpayers.",investopedia,1,52.23,12.8,14.6,11.44,15.8,10.21,16.25,14.96
Earned Premium,"The term earned premium refers to the premium collected by an insurance company for the portion of a policy that has expired. It is what the insured party has paid for a portion of time in which the insurance policy was in effect, but has since expired. Since the insurance company covers the risk during that time, it considers the associated premium payments it takes from the insured party as unearned. Once the time has expired, it can then record it as earned or as a profit.",investopedia,1,57.81,10.6,13.4,8.76,11,7.98,14.125,11.48
Earnest Money,"Earnest money is a deposit made to a seller that represents a buyer's good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In many ways, earnest money can be considered a deposit on a home, an escrow deposit, or good faith money.",investopedia,1,59.64,9.9,10.5,8.82,10.5,8.58,11.66666667,11.33
Earnings,A company's earnings are its after-tax net income. This is the company's bottom line or its profits.,investopedia,1,62.85,6.6,0,7.62,6.1,6.84,4.75,5.75
Earnings Announcement,"An earnings announcement is an official public statement of a company's profitability for a specific period, typically a quarter or a year. An earnings announcement occurs on a specific date during earnings season and is preceded by earnings estimates issued by equity analysts. If a company has been profitable leading up to the announcement, its share price will usually increase up to and slightly after the information is released. Because earnings announcements can have such a prominent effect on the market, they are often considered when predicting the next day's open.",investopedia,1,39.87,13.4,16.2,13.47,15.1,9.63,16.625,16.59
Earnings Before Interest After Taxes (EBIAT),Earnings before interest after taxes (EBIAT) is one of a number of financial measures that are used to evaluate a company's operating performance for a quarter or a year.,investopedia,1,33.58,15.8,0,10.92,16.1,10.52,20.5,19.88
Earnings Before Interest and Taxes (EBIT),"Earnings before interest and taxes (EBIT) is an indicator of a company's profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. EBIT is also referred to as operating earnings, operating profit, and profit before interest and taxes.",investopedia,1,23.73,13.4,14.1,13.27,11.6,10.09,10.5,13.28
"Earnings Before Interest, Depreciation and Amortization (EBIDA)","Earnings before interest, depreciation and amortization (EBIDA) is a measure of the earnings of a company that adds the interest expense, depreciation, and amortization back to the net income number. However, it does include tax expenses. This measure is not as well known or used as often as its counterpart—earnings before interest, taxes, depreciation and amortization (EBITDA).",investopedia,1,26.81,14.2,15,14.45,14.9,7.9,13.83333333,11.11
"Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)","EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. EBITDA, however, can be misleading because it strips out the cost of capital investments like property, plant, and equipment.",investopedia,1,29.69,15.2,0,14.51,17.5,10.33,18.75,18.78
Earnings Call,"An earnings call is a conference call between the management of a public company, analysts, investors, and the media to discuss the company’s financial results during a given reporting period, such as a quarter or a fiscal year. An earnings call is usually preceded by an earnings report, which contains summary information on financial performance for the period.",investopedia,1,25.12,17,0,13.3,18,10.25,22,19.88
Earnings Credit Rate (ECR),The earnings credit rate (ECR) is a daily calculation of interest that a bank pays on customer deposits. The earnings credit rate is often correlated with the U.S. Treasury bill (T-bill) rate.,investopedia,1,69.07,6.3,8.8,9.26,7.7,10.09,5.333333333,8.03
Earnings Estimate,"An earnings estimate is an analyst's estimate for a company's future quarterly or annual earnings per share (EPS). Future earnings estimates are arguably the most important input when attempting to value a firm. By placing estimates on the earnings of a firm for certain periods (quarterly, annually, etc.), analysts can then use cash flow analysis to approximate fair value for a company, which in turn will give a target share price.",investopedia,1,38.96,13.7,16.7,11.78,14.7,9.7,17.5,16.24
Earnings Management,"Earnings management is the use of accounting techniques to produce financial statements that present an overly positive view of a company's business activities and financial position. Many accounting rules and principles require that a company's management make judgments in following these principles. Earnings management takes advantage of how accounting rules are applied and creates financial statements that inflate or ""smooth"" earnings.",investopedia,1,33.95,13.6,17.1,18.39,18.2,10.08,16.16666667,14.02
Earnings Multiplier,"The earnings multiplier is a financial metric that frames a company's current stock price in terms of the company's earnings per share (EPS) of stock, that's simply computed as price per share/earnings per share. Also known as the price-to-earnings (P/E) ratio, the earnings multiplier can be used as a simplified valuation tool with which to compare the relative costliness of the stocks of similar companies. It can likewise help investors judge current stock prices against their historical prices on an earnings-relative basis.",investopedia,1,43.77,13.9,16.3,13.76,18.2,10.19,19,16.29
Earnings Per Share (EPS),Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution.,investopedia,1,38.01,12,15,11.54,11,10.57,12.5,15.5
Earnings Power Value,Earnings power value (EPV) is a technique for valuing stocks by making assumptions about the sustainability of current earnings and the cost of capital but not future growth. Earnings power value (EPV) is derived by dividing a company's adjusted earnings by its weighted average cost of capital (WACC).,investopedia,1,38.66,13.8,0,12.77,15.6,10.42,16,14.6
Earnings Report,"A quarterly earnings report is a quarterly filing made by public companies to report their performance. Earnings reports include items such as net income, earnings per share, earnings from continuing operations, and net sales. By analyzing quarterly earnings reports, investors can begin to gauge the financial health of the company and determine whether it deserves their investment.",investopedia,1,35.27,13.1,14.6,15.37,15.2,10.12,13.5,13.92
Earnings Yield,The earnings yield refers to the earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield (which is the inverse of the P/E ratio) shows the percentage of a company's earnings per share. This metric is used by many investment managers to determine optimal asset allocations and is used by investors to determine which assets seem underpriced or overpriced.,investopedia,1,56.59,11.1,13.6,11.84,14,10.96,14.83333333,14.42
Earnout,"An earnout is a contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves certain financial goals, which are usually stated as a percentage of gross sales or earnings.",investopedia,1,22.42,20.1,0,12.89,22.8,12.73,27,23
Easement In Gross,"An easement in gross is an easement that attaches a particular right to an individual or entity rather than to the property itself. The easement in gross is often considered irrevocable for the life of the individual, but it can be rendered void if the individual sells the property upon which the easement request was based.",investopedia,1,34.6,15.4,0,10.68,15.3,8.97,19,16.2
Eavesdropping Attack,"An eavesdropping attack, also known as a sniffing or snooping attack, is a theft of information as it is transmitted over a network by a computer, smartphone, or another connected device.",investopedia,1,31.55,16.6,0,11.96,18.1,10.78,21.5,18.85
EBIT/EV Multiple Definition,"The EBIT/EV multiple, shorthand for earnings before interest and taxes (EBIT) divided by enterprise value (EV), is a financial ratio used to measure a company's ""earnings yield.""",investopedia,1,35.61,15,0,13.29,18.6,12.58,19.5,19.69
EBITA,"Earnings before interest, taxes, and amortization (EBITA) is a measure of company profitability used by investors. It is helpful for comparison of one company to another in the same line of business. In some cases, it also can provide a more accurate view of the company's real performance over time.",investopedia,1,46.06,11,13.6,10.5,10.5,8.57,11.66666667,12.28
EBITDA Margin,"The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. The acronym EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Knowing the EBITDA margin allows for a comparison of one company's real performance to others in its industry.",investopedia,1,30.16,13,13.6,12.76,11.8,11.13,11.16666667,13.94
EBITDA/EV Multiple,"The EBITDA/EV multiple is a financial valuation ratio that measures a company's return on investment (ROI). The EBITDA/EV ratio may be preferred over other measures of return because it is normalized for differences between companies. Using EBITDA normalizes for differences in capital structure, taxation, and fixed asset accounting. The enterprise value (EV) also normalizes for differences in a company's capital structure.",investopedia,1,30.57,12.8,15.2,15.59,14.5,10.09,12.125,13.99
EBITDA-to-Interest Coverage Ratio,"The EBITDA-to-interest coverage ratio is a financial ratio that is used to assess a company's financial durability by examining whether it is at least profitable enough to pay off its interest expenses using its pre-tax income. Specifically it looks to see what proportion of earnings before interest, taxes, depreciation, and amortization (EBITDA), can be used for this purpose.",investopedia,1,25.12,17,0,14.28,19.2,11.06,21.5,19.19
EBITDA-to-Sales Ratio,"The EBITDA-to-sales ratio, also known as EBITDA margin, is a financial metric used to assess a company's profitability by comparing its gross revenue with its earnings. More specifically, since EBITDA itself is derived in part from revenue, this metric indicates the percentage of a company's earnings remaining after operating expenses. A higher value indicates the company is able to produce earnings more efficiently by keeping costs low.",investopedia,1,31.92,14.3,15.5,14.51,16.1,10.63,15.83333333,15.49
EBITDAR,"Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) is a non-GAAP tool used to measure a company's financial performance. Although EBITDAR does not appear on a company's income statement, it can be calculated using information from the income statement.",investopedia,1,24.27,15.2,0,16.59,18.1,11.31,15.75,16.97
eCash,"eCash was a digital-based system that facilitated the transfer of funds anonymously. A pioneer in cryptocurrency, its goal was to secure the privacy of individuals that use the Internet for micropayments. eCash was created by Dr. David Chaum under his company, DigiCash, in 1990. Though there was interest in the platform from large banks, eCash never took off and DigiCash filed for bankruptcy in 1998. DigiCash, along with its eCash patents, was eventually sold off. In 2018, Chaum launched a new startup focused on cryptography.",investopedia,1,57.06,8.8,13,11.65,10.5,10.47,10.08333333,12.74
Eclectic Paradigms,"An eclectic paradigm, also known as the ownership, location, internalization (OLI) model or OLI framework, is a three-tiered evaluation framework that companies can follow when attempting to determine if it is beneficial to pursue foreign direct investment (FDI). This paradigm assumes that institutions will avoid transactions in the open market if the cost of completing the same actions internally, or in-house, carries a lower price. It is based on internalization theory and was first expounded upon in 1979 by the scholar John H. Dunning.",investopedia,1,26.14,16.6,17.1,13.81,18.5,11.6,20,18.82
ECN Broker,"An ECN broker is a financial intermediary that uses electronic communications networks (ECNs) to give clients direct access to other participants in equity and currency markets. Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available to them.",investopedia,1,19.2,17.2,0,16.71,19.7,11.21,19.75,18.15
Economic Calendar,"The economic calendar refers to the scheduled dates of significant releases or events that may affect movement of individual security prices or markets as a whole. Investors and traders use the economic calendar to plan trades and portfolio reallocations, as well as to be alert to chart patterns and indicators that may be caused or affected by these events. The economic calendar for various countries is available for free on multiple financial and market websites.",investopedia,1,37.64,14.2,16.7,13.18,15.8,10.98,18.16666667,16.4
Economic Capital,"Economic capital is a measure of risk in terms of capital. More specifically, it's the amount of capital that a company (usually in financial services) needs to ensure that it stays solvent given its risk profile.",investopedia,1,53.21,10.3,0,10.15,10.8,9.79,13,11.64
Economic Collapse,"An economic collapse is a breakdown of a national, regional, or territorial economy that typically follows a time of crisis. An economic collapse occurs at the onset of a severe version of an economic contraction, depression, or recession and can last any number of years depending on the severity of the circumstances. An economic collapse can happen rapidly due to an unexpected event, or it may be preceded by several events or signs pointing to fragility in the economy.",investopedia,1,36.32,14.7,17.5,11.49,15.3,10.54,19.5,17.61
Economic Conditions,"Economic conditions refer to the present state of the economy in a country or region. These conditions change over time along with the economic and business cycles, as an economy goes through periods of expansion and contraction. Economic conditions are considered to be sound or positive when an economy is expanding and are seen as adverse or negative when an economy is contracting.",investopedia,1,41.7,12.7,17.1,12.3,13.4,8.44,16.5,15.38
Economic Cycle,"The economic cycle is the fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, total employment, and consumer spending, can help to determine the current stage of the economic cycle.",investopedia,1,33.24,13.8,0,14.74,16.4,12.95,16.5,18.88
Economic Depreciation,"Economic depreciation is a measure of the decrease in the market value of an asset over time from influential economic factors. This form of depreciation usually pertains to real estate, which can lose value for several reasons such as the addition of unfavorable construction in close proximity to a property, road closures, a decline in the quality of a neighborhood, or other negative influences.",investopedia,1,30.54,17,0,13.88,19.8,10.16,24,20.3
Economic Efficiency,Economic efficiency is when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.,investopedia,1,26.14,16.6,0,12.83,17,10.66,22,22.63
Economic Equilibrium,"Economic equilibrium is a condition or state in which economic forces are balanced. In effect, economic variables remain unchanged from their equilibrium values in the absence of external influences. Economic equilibrium is also referred to as market equilibrium.",investopedia,1,33.2,11.8,14.1,15.7,12.9,9.67,9,10.34
Economic Exposure,"Economic exposure is a type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company’s future cash flows, foreign investments, and earnings. Economic exposure, also known as operating exposure, can have a substantial impact on a company’s market value since it has far-reaching effects and is long-term in nature. Companies can hedge against unexpected currency fluctuations by investing in foreign exchange (FX) trading.",investopedia,1,23.05,15.7,17.9,15.84,17.3,10.57,18,15.55
Economic Forecasting,Economic forecasting is the process of attempting to predict the future condition of the economy using a combination of important and widely followed indicators.,investopedia,1,13.28,17.4,0,16.13,17.7,13.38,20,21.27
Economic Growth,"Economic growth is an increase in the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms. Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP), although alternative metrics are sometimes used.",investopedia,1,43.73,11.9,15.5,13.63,14.2,10.95,14.16666667,15.32
Economic Growth Rate,"An economic growth rate is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period. The economic growth rate is used to measure the comparative health of an economy over time. The numbers are usually compiled and reported quarterly and annually.",investopedia,1,51.18,11.1,15,9.98,11,9.37,14.33333333,15.33
Economic Indicator,"An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities. These indicators also help to judge the overall health of an economy.",investopedia,1,27.32,14,0,13.11,13,10.96,14.75,18.21
Economic Integration,Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement.,investopedia,1,30.7,14.8,0,17.29,18.4,12.19,17.75,17.91
Economic Justice,"Economic justice is a component of social justice and welfare economics. It is a set of moral and ethical principles for building economic institutions, where the ultimate goal is to create an opportunity for each person to establish a sufficient material foundation upon which to have a dignified, productive, and creative life.",investopedia,1,28.17,15.8,0,13.58,16.9,11,20.5,21.17
Economic Life,"Economic life is the expected period of time during which an asset remains useful to the average owner. When an asset is no longer useful to its owner, then it is said to be past its economic life. The economic life of an asset could be different than its actual physical life. Thus, an asset can be in optimal physical condition but may not be economically useful. For example, technology products often become obsolete when their technology becomes obsolete. The obsolescence of flip phones occurred due to the advent of smartphones and not because they ran out of utility.",investopedia,1,54.73,9.7,13.6,9.92,9.6,8.28,11.58333333,12.26
Economic Moat,"Conceptualized and named by Warren Buffett, an economic moat is a distinct advantage a company has over its competitors which allows it to protect its market share and profitability. It is often an advantage that is difficult to mimic or duplicate (brand identity, patents) and thus creates an effective barrier against competition from other firms.",investopedia,1,35.1,15.2,0,13.47,17.6,11.6,20.25,19
Economic Order Quantity (EOQ),"Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has been refined over time. The formula assumes that demand, ordering, and holding costs all remain constant.",investopedia,1,49.01,9.9,12.2,12.58,11.1,10.92,8.375,12.07
Economic Profit (or Loss),"An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs. In calculating economic profit, opportunity costs and explicit costs are deducted from revenues earned.",investopedia,1,25.8,20.8,0,12.72,25.1,10.43,15.25,22.44
Economic Recovery,"Economic recovery is the business cycle stage following a recession that is characterized by a sustained period of improving business activity. Normally, during an economic recovery, gross domestic product (GDP) grows, incomes rise, and unemployment falls and as the economy rebounds.",investopedia,1,16.83,16,0,16.13,16.8,12.36,17.25,18.93
Economic Recovery Tax Act of 1981 (ERTA),"The Economic Recovery Tax Act of 1981 (ERTA) was the largest tax cut in U.S. history. Signed by President Ronald Reagan about six months after he took office, ERTA slashed the top income tax rate and allowed for faster expensing of depreciable assets. It included incentives for small business and retirement savings, and established inflation indexing of tax brackets.",investopedia,1,51.48,11,14.6,12.42,13.2,11.3,13.83333333,15.34
Economic Rent,"Economic rent is an amount of money earned that exceeds that which is economically or socially necessary. This can occur, for example, when a buyer working to attain a good or service that is considered exclusive makes an offer prior to hearing what a seller considers an acceptable price. Market imperfections thus lead to the rise of economic rents; it would not exist if markets were perfect since competitive pressures would drive down prices.",investopedia,1,46.4,12.9,14.6,11.84,14.7,10.62,16.33333333,15.83
Economic Shock,"An economic shock refers to any change to fundamental macroeconomic variables or relationships that has a substantial effect on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation. Shocks are often unpredictable and are usually the result of events thought to be beyond the scope of normal economic transactions.",investopedia,1,27.66,16,0,17.29,20.1,11.8,20.75,19.66
Economic Stimulus,"Economic stimulus is action by the government to encourage private sector economic activity by engaging in targeted, expansionary monetary or fiscal policy based on the ideas of Keynesian economics. The term economic stimulus is based on an analogy to the biological process of stimulus and response, with the intention of using government policy as a stimulus to elicit a response from the private sector economy.",investopedia,1,13.11,19.5,0,14.17,20.2,11.32,27.75,22.23
Economic Value,"Economic value is the value that person places on an economic good based on the benefit that they derive from the good. It is often estimated based on the person’s willingness to pay for the good, typically measured in units of currency. The economic value should not be confused with market value, which is the market price for a good or service which can be higher or lower than the economic value that any particular person puts on a good.",investopedia,1,52.83,12.5,14.1,8.94,13.3,8.32,17,14.68
Economic Value Added (EVA),"Economic value added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. EVA can also be referred to as economic profit, as it attempts to capture the true economic profit of a company. This measure was devised by management consulting firm Stern Value Management, originally incorporated as Stern Stewart & Co.",investopedia,1,29.89,15.1,17.1,12.42,15.3,10.68,18.33333333,16.84
Economic Value of Equity (EVE),"The economic value of equity (EVE) is a cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. Unlike earnings at risk and value at risk (VAR), a bank uses the economic value of equity to manage its assets and liabilities. This is a long-term economic measure used to assess the degree of interest rate risk exposure—as opposed to net-interest income (NII), which reflects short-term interest rate risk.",investopedia,1,44.07,13.8,14.6,11.15,15.7,9.46,17.5,14.26
Economies of Scale,Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.,investopedia,1,68.77,6.4,11.2,13.03,10.1,9.92,6.5,9.85
Economies of Scope,"An economy of scope means that the production of one good reduces the cost of producing another related good. Economies of scope occur when producing a wider variety of goods or services in tandem is more cost effective for a firm than producing less of a variety, or producing each good independently. In such a case, the long-run average and marginal cost of a company, organization, or economy decreases due to the production of complementary goods and services.",investopedia,1,36.63,14.6,17.9,11.26,15,8.97,19.66666667,16.55
Economist,"An economist is an expert who studies the relationship between a society's resources and its production or output. Economists study societies ranging from small, local communities to entire nations and even the global economy.",investopedia,1,37.3,12.3,0,14.67,13.8,12.37,12.5,16.21
Economy,"An economy is the large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated. The production, consumption, and distribution of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic system.",investopedia,1,27.15,16.2,0,14.05,18,10.53,20,18.21
EdTech,"EdTech (a combination of ""education"" and ""technology"") refers to hardware and software designed to enhance teacher-led learning in classrooms and improve students' education outcomes.",investopedia,1,21.74,16.2,0,19.5,22,12.72,16,14.6
Education Loan,"An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Payments are often deferred while students are in college and, depending on the lender, sometimes they are deferred for an additional six-month period after earning a degree. This period is sometimes referred to as a ""grace period.""",investopedia,1,42.41,12.4,14.2,12.53,13.7,9.71,13.875,12.56
Education IRA,"An education IRA is a tax-advantaged investment account for higher education, now more formally known as a Coverdell Education Savings Account (ESA). Under this educational savings vehicle, parents and guardians are allowed to make nondeductible contributions to an education individual retirement account (IRA) for a child under the age of 18.",investopedia,1,20.21,16.8,0,15.44,18.4,10.47,19.25,18.04
Effective Annual Interest Rate,"The effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reveals the real percentage rate owed in interest on a loan, a credit card, or any other debt.",investopedia,1,47.12,12.7,0,10.33,13.2,8.77,16,14.6
Effective Dates,"In contract law, the effective date is the date that an agreement or transaction between or among signatories becomes binding. For an initial public offering (IPO), it is the date when shares can first be traded on an exchange.",investopedia,1,60.14,9.7,0,9.92,11.2,9.46,11.75,11.9
Effective Duration,"Effective duration is a duration calculation for bonds that have embedded options. This measure of duration takes into account the fact that expected cash flows will fluctuate as interest rates change and is, therefore, a measure of risk. Effective duration can be estimated using modified duration if a bond with embedded options behaves like an option-free bond.",investopedia,1,35.27,13.1,16.3,13.46,13.5,10.12,14.83333333,13.92
Effective Gross Income (EGI),Effective gross income (EGI) is the Potential Gross Rental Income plus other income minus vacancy and credit costs of a rental property.,investopedia,1,49.15,11.9,0,12.53,14.4,12.62,15,16.07
Effective Interest Method Definition,"The effective interest method is an accounting standard used to amortize, or discount a bond. This method is used for bonds sold at a discount, where the amount of the bond discount is amortized to interest expense over the bond's life.",investopedia,1,76.05,7.7,0,10.33,11.8,9.27,12.25,11.13
Effective Tax Rate,"The effective tax rate is the percent of their income that an individual or a corporation pays in taxes. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed, while the statutory tax rate is the legal percentage established by law.",investopedia,1,54.26,12,15,10.1,13.8,8.84,17,14.86
Effective Yield,"The effective yield is the return on a bond that has its interest payments (or coupons) reinvested at the same rate by the bondholder. Effective yield is the total yield an investor receives, in contrast to the nominal yield—which is the stated interest rate of the bond's coupon. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.",investopedia,1,57.91,10.6,14.1,11.37,13.2,9.57,14.5,12.99
Efficiency Ratio,"The efficiency ratio is typically used to analyze how well a company uses its assets and liabilities internally. An efficiency ratio can calculate the turnover of receivables, the repayment of liabilities, the quantity and usage of equity, and the general use of inventory and machinery. This ratio can also be used to track and analyze the performance of commercial and investment banks.",investopedia,1,25.08,14.9,17.9,12.76,13.7,9.76,17,17.31
Efficient Frontier,The efficient frontier is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. Portfolios that lie below the efficient frontier are sub-optimal because they do not provide enough return for the level of risk. Portfolios that cluster to the right of the efficient frontier are sub-optimal because they have a higher level of risk for the defined rate of return.,investopedia,1,44.78,13.5,14.1,10.74,14.6,7.54,16.83333333,12.55
Efficient Market Hypothesis (EMH),"The efficient market hypothesis (EMH), alternatively known as the efficient market theory, is a hypothesis that states that share prices reflect all information and consistent alpha generation is impossible.",investopedia,1,-0.27,20.5,0,18.11,22.1,11.06,24.5,21.26
What Is Egalitarianism?,"Egalitarianism is a philosophical perspective that emphasizes equality and equal treatment across gender, religion, economic status, and political beliefs. Egalitarianism may focus on income inequality and distribution, which are ideas that influenced the development of various economic and political systems. Egalitarianism also looks at how individuals are treated under the law. Karl Marx used egalitarianism as the starting point in the creation of his Marxist philosophy, and John Locke considered egalitarianism when he proposed that individuals had natural rights.",investopedia,1,9.08,16.9,17.1,18.62,18.1,11.61,15.875,16.53
Elastic,"Elastic is a term used in economics to describe a change in the behavior of buyers and sellers in response to a change in price for a good or service. In other words, demand elasticity or inelasticity for a product or good is determined by how much demand for the product changes as the price increases or decreases. An inelastic product is one that consumers continue to purchase even after a change in price. The elasticity of a good or service can vary according to the number of close substitutes available, its relative cost, and the amount of time that has elapsed since the price change occurred.",investopedia,1,61.19,11.4,13.4,9.87,14,8.8,15.75,15.21
Elective-Deferral Contribution,An elective-deferral contribution is made directly from an employee's salary to his or her employer-sponsored retirement plan such as a 401(k) or 403(b) plan. The employee must authorize the transaction before the contribution can be deducted.,investopedia,1,26.48,18.5,0,16.2,24.5,12.88,14.5,25.51
Electronic Bill Payment and Presentment (EBPP),"Electronic bill payment and presentment (EBPP) is a process that companies use to collect payments electronically through systems like the Internet, direct-dial access, and Automated Teller Machines (ATMs). It has become a core component of online banking at many financial institutions today. Other industries—including insurance providers, telecommunications companies, and utilities—depend on EBPP services as well.",investopedia,1,19.06,15.1,15.9,19.84,18.9,12.87,14.16666667,17.5
Electronic Check,"An electronic check, or e-check, is a form of payment made via the Internet, or another data network, designed to perform the same function as a conventional paper check. Since the check is in an electronic format, it can be processed in fewer steps.",investopedia,1,57.61,10.7,0,8.94,11.7,9.75,13.5,11.53
Electronic Commerce (e-commerce),Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals buy and sell things over the internet. E-commerce operates in all four of the following major market segments:,investopedia,1,45.25,11.3,0,13.92,13.7,9.92,11.25,11.57
Electronic Communication Network,An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market. ECN trading is especially helpful when investors in different geographic areas wish to complete a secure transaction without the use of a third party.,investopedia,1,23.26,15.6,0,14.74,16,11.07,15.75,16.11
"Electronic Data Gathering, Analysis and Retrieval (EDGAR)","EDGAR — Electronic Data Gathering, Analysis and Retrieval — is the electronic filing system created by the Securities and Exchange Commission to increase the efficiency and accessibility of corporate filings. The system is used by all publicly traded companies when submitting required documents to the SEC. Corporate documents are time-sensitive, and the creation of EDGAR has greatly decreased the time it takes for corporate documents to become publicly available.",investopedia,1,31.21,14.6,17.1,16.48,17.7,11.41,17.5,16.74
Electronic Federal Tax Payment System (EFTPS),"The Electronic Federal Tax Payment System (EFTPS) is a service provided by the U.S. Department of the Treasury. The service allows taxpayers to make tax payments either by telephone or online. This system is accessible every day of the week, 24 hours a day.",investopedia,1,60.31,7.6,10.1,8.97,7.2,9.92,6,9.85
Electronic Filing (E-File),"Electronic filing is the process of submitting tax returns over the internet using tax preparation software that has been preapproved by the relevant tax authority, such as the Internal Revenue Service (IRS) in the U.S. and the Canada Revenue Agency.",investopedia,1,30.88,18.9,0,13.07,23.4,13.12,27,23
Electronic Fund Transfer Act,"The Electronic Fund Transfer Act (EFTA) is a federal law that protects consumers when they transfer funds electronically, including through the use of debit cards, automated teller machines (ATMs), and automatic withdrawals from a bank account. Among other protections, the EFTA provides a way to correct transaction errors and limits the liability resulting from a lost or stolen card.",investopedia,1,33.07,16,0,14.75,19.6,12.06,19.75,18.58
Electronic Money,"Electronic money refers to money that exists in banking computer systems that may be used to facilitate electronic transactions. Although its value is backed by fiat currency and may, therefore, be exchanged into a physical, tangible form, electronic money is primarily used for electronic transactions due to the sheer convenience of this methodology.",investopedia,1,27.66,16,0,15.21,18.5,10.91,20.25,18.15
Electronic Payments Network (EPN),"The term Electronic Payments Network (EPN) refers to a financial clearinghouse that handles a variety of electronic funds transfers for the private sector. It is one of the automated clearinghouses (ACHs) in the United States, along with the Reserve Banks. Funds are transferred using the EPN between accounts at the same or different financial institutions. Examples of transfers under the EPN include deposits for payroll, Social Security benefits, and tax refunds, as well as debit transfers like loan payments and insurance premiums.",investopedia,1,42.21,12.5,14.2,14.21,15.1,11.01,14,14.05
Electronic Retailing (E-tailing),Electronic retailing (E-tailing) is the sale of goods and services through the Internet. E-tailing can include business-to-business (B2B) and business-to-consumer (B2C) sales of products and services.,investopedia,1,49.82,9.5,0,17.73,16.8,11.57,8,9.82
Elevator Pitch,"Elevator pitch is a slang term used to describe a brief speech that outlines an idea for a product, service, or project. The name comes from the notion that the speech should be delivered in the short time period of an elevator ride. A good rule of thumb is that an elevator pitch should be approximately 30 seconds long, with a maximum of 60 seconds.",investopedia,1,66.37,9.4,11.9,7.89,10.3,8.36,13.16666667,11.76
Elliott Wave Theory,"The term Elliott Wave Theory refers to a theory in technical analysis used to describe price movements in the financial market. The theory was developed by Ralph Nelson Elliott after he observed and identified recurring, fractal wave patterns. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as riding a wave. A large, strong movement by homeowners to replace their existing mortgages with new ones that have better terms is called a refinancing wave.",investopedia,1,49.15,11.9,13.8,12.47,14.1,10.47,11.6,13.8
Email Money Transfer (EMT),"An email money transfer (EMT) is a retail banking service that allows users to transfer funds between personal accounts, using email and their online banking service. Mostly used in Canada, email money transfers are often called Interac e-Transfers.",investopedia,1,52.19,10.7,0,13.98,14.4,11.64,10.5,9.71
Embargo,"An embargo is a government order that restricts commerce with a specified country or the exchange of specific goods. An embargo is usually created as a result of unfavorable political or economic circumstances between nations. It is designed to isolate a country and create difficulties for its governing body, forcing it to act on the issue that led to the embargo.",investopedia,1,42.41,12.4,15.5,11.72,12.6,9.82,14.83333333,15.33
Embezzlement,"Embezzlement refers to a form of white-collar crime in which a person or entity misappropriates the assets entrusted to them. In this type of fraud, the embezzler attains the assets lawfully and has the right to possess them, but the assets are then used for unintended purposes.",investopedia,1,47.62,12.5,0,11.26,13.8,9.84,15.75,16.21
Emergency Banking Act of 1933,The Emergency Banking Act of 1933 was a bill passed in the midst of the Great Depression that took steps to stabilize and restore confidence in the U.S. banking system. It came in the wake of a series of bank runs following the stock market crash of 1929.,investopedia,1,72.5,9.1,0,7.78,11.1,10.09,14.5,12.93
Emergency Fund,"The term “emergency fund” refers to money stashed away that people can use in times of financial distress. The purpose of an emergency fund is to improve financial security by creating a safety net that can be used to meet unanticipated expenses, such as an illness or major home repairs. Assets in an emergency fund tend to be cash or other highly liquid assets. This reduces the need to either draw from high-interest debt options, such as credit cards or unsecured loans, or undermine your future security by tapping into retirement funds.",investopedia,1,48.13,12.3,13.8,11.09,13.2,10.1,15,13.55
Emerging Industry,An emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development. An emerging industry typically consists of just a few companies and is often centered around new technology. Emerging industries frequently come into existence when one technology begins to eclipse and replace an older technology.,investopedia,1,42,12.5,14.6,12.01,12.9,9.25,14.33333333,13.44
Emerging Market Economy,"An emerging market economy is the economy of a developing nation that is becoming more engaged with global markets as it grows. Countries classified as emerging market economies are those with some, but not all, of the characteristics of a developed market. As an emerging market economy progresses it typically becomes more integrated with the global economy, as shown by increased liquidity in local debt and equity markets, increased trade volume and foreign direct investment, and the domestic development of modern financial and regulatory institutions. Currently, some notable emerging market economies include India, Mexico, Russia, Pakistan, Saudi Arabia, China, and Brazil.",investopedia,1,20.42,16.7,16.5,15.5,18.3,11.46,18,17.25
Emerging Markets Bond Index (EMBI),"The emerging markets bond index (EMBI) is a benchmark index for measuring the total return performance of international government and corporate bonds issued by emerging market countries that meet specific liquidity and structural requirements. Despite their increased riskiness relative to developed markets, emerging market bonds offer several potential benefits such as portfolio diversity as their returns are not closely correlated to traditional asset classes.",investopedia,1,5.16,20.5,0,19.56,24.4,13.37,25,22.8
Emerging Markets Index (MSCI),"The MSCI Emerging Markets Index is a selection of stocks that is designed to track the financial performance of key companies in fast-growing nations. It is one of a number of indexes created by MSCI Inc., formerly Morgan Stanley Capital International.",investopedia,1,42.21,12.5,0,12.01,13.2,11.97,15.25,16
Emigration,"Emigration is the relocation or process of people leaving one country to reside in another. People emigrate for many reasons, include increasing one's chance of employment or improving quality of life. Emigration affects the economies of the countries involved in both positive and negative ways, depending on the current state of the countries' economies.",investopedia,1,44.75,11.5,14.6,14.21,14,10.96,13,14.61
Eminent Domain,"Eminent domain is the power of the United States government, states, and municipalities to take private property for public use, following the payment of just compensation.",investopedia,1,28.17,15.8,0,14.92,18.2,8.57,19,16.55
Empire Building,"Empire building is the act of attempting to increase the size and scope of an individual or organization's power and influence. In the corporate world, this is seen at the intra-company level when managers or executives are more concerned with expanding their business units, their staffing levels and the dollar value of assets under their control than they are with developing and implementing ways to benefit shareholders.",investopedia,1,29.01,17.5,0,13.88,20.6,10.72,22.75,19.97
Empirical Rule,"The empirical rule, also referred to as the three-sigma rule or 68-95-99.7 rule, is a statistical rule which states that for a normal distribution, almost all observed data will fall within three standard deviations (denoted by σ) of the mean or average (denoted by µ).",investopedia,1,25.8,20.8,0,11.04,24.6,12.54,30.5,23.33
Employee Buyout (EBO),An employee buyout (EBO) is when an employer offers select employees a voluntary severance package. The package usually includes benefits and pay for a specified period of time. An EBO is often used to reduce costs or avoid or delay layoffs.,investopedia,1,49.11,9.8,13,9.85,8.5,11.25,8.833333333,14.26
Employee Retirement Income Security Act (ERISA),"The Employee Retirement Income Security Act (ERISA) of 1974 protects the retirement assets of workers in the U.S. by implementing rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets. ERISA also covers some non-retirement accounts, such as employee health plans.",investopedia,1,39.16,13.6,0,14.51,16.7,11.52,16.25,14.51
Employee Stock Option (ESO),"Employee stock options (ESOs) are a type of equity compensation granted by companies to their employees and executives. Rather than granting shares of stock directly, the company gives derivative options on the stock instead. These options come in the form of regular call options and give the employee the right to buy the company's stock at a specified price for a finite period of time. Terms of ESOs will be fully spelled out for an employee in an employee stock options agreement.",investopedia,1,50.67,11.3,14.6,10.73,12,9.08,14.25,14.05
Employee Stock Ownership Plan (ESOP),"An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company. ESOPs give the sponsoring company, the selling shareholder, and participants receive various tax benefits, making them qualified plans. Companies often use ESOPs as a corporate-finance strategy to align the interests of their employees with those of their shareholders.",investopedia,1,35.27,13.1,17.9,16.07,15.9,11.23,16.16666667,18.83
Employee Stock Purchase Plan (ESPP),"An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price. Employees contribute to the plan through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the company uses the employee's accumulated funds to purchase stock in the company on behalf of the participating employees.",investopedia,1,32.94,14,16.3,14.1,15.3,8.64,16,14.15
Employer Identification Number (EIN),An Employer Identification Number (EIN) is a unique identification number that is assigned to a business entity so that it can easily be identified by the Internal Revenue Service (IRS). It is commonly used by employers for the purpose of reporting taxes.,investopedia,1,33.24,13.8,0,11.43,13.1,10.69,15.5,16.97
Employers' Liability Insurance,"Employers' liability insurance is an insurance policy that handles claims from workers who have suffered a job-related injury or illness not covered by workers' compensation. A type of liability insurance, it can be packaged with workers' compensation to further protect companies against the costs associated with workplace injuries, illnesses, and deaths.",investopedia,1,20.21,16.8,0,16.89,19.7,12.02,19.25,17.26
Employment Agency Fees,"The term employment agency fee refers to a fee paid by a company to an employment agency when it successfully places a suitable employee with that employer. Fees tend to vary widely from one agency to another, as they are at the discretion of the agency. There are two types of employment agency fees—employer-paid fees and applicant-paid fees.",investopedia,1,51.89,10.8,14.1,10.79,11.5,8.95,13.33333333,11.86
Employment Insurance (EI),"Employment Insurance (EI) is an unemployment insurance program in Canada that allows individuals who have recently lost a job to receive temporary financial assistance. Employment insurance can also be extended to individuals who are unable to work because of illness or who are caring for a young child or a seriously ill family member. In addition to financial assistance, the program assists the unemployed with job search services.",investopedia,1,31.51,14.5,17.5,13.87,15.4,9.64,17.66666667,16.14
Employment-to-Population Ratio,"The employment-to-population ratio, also known as the “employment-population ratio,” is a macroeconomic statistic that measures the civilian labor force currently employed against the total working-age population of a region, municipality, or country. It is calculated by dividing the number of people employed by the total number of people of working age, and it is used as a metric of labor and unemployment.",investopedia,1,14.63,18.9,0,14.92,20.6,10.01,20,17.56
Encroachment,"The term encroachment refers to a situation in real estate where a property owner violates the property rights of his neighbor by building on or extending a structure to the neighbor's land or property intentionally or otherwise. Encroachment is often a problem along disputed property lines where a person intentionally chooses to violate his neighbor's boundaries, or when a property owner is not aware of his boundaries.",investopedia,1,29.01,17.5,0,13.76,20.4,9.54,24.25,18.18
Encumbrance,"An encumbrance is a claim against a property by a party that is not the owner. An encumbrance can impact the transferability of the property and restrict its free use until the encumbrance is lifted. The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens. Not all forms of encumbrance are financial, easements being an example of non-financial encumbrances. An encumbrance can also apply to personal – as opposed to real – property.",investopedia,1,55.03,9.6,13.3,11.54,10.9,8.73,11.3,9.94
End-to-End,"End-to-end describes a process that takes a system or service from beginning to end and delivers a complete functional solution, usually without needing to obtain anything from a third party. It often refers to vendors that can see a project through from beginning to end, and supply everything needed to create a workable solution—be it hardware, software, labor, written materials, and procedures. End-to-end solutions also adhere to a philosophy that eliminates as many middle layers or steps as possible, which helps to optimize the performance and efficiency of a business. It is most commonly used in the information technology (IT) sector.",investopedia,1,37.34,14.3,15.9,13.41,16.7,10.52,17.5,16.06
Endogenous Growth Theory,"Endogenous growth theory is an economic theory which argues that economic growth is generated from within a system as a direct result of internal processes. More specifically, the theory notes that the enhancement of a nation's human capital will lead to economic growth by means of the development of new forms of technology and efficient and effective means of production.",investopedia,1,24.11,17.4,0,13.76,18.6,10.91,24,20.67
Endogenous Variable,"An endogenous variable is a variable in a statistical model that's changed or determined by its relationship with other variables within the model. In other words, an endogenous variable is synonymous with a dependent variable, meaning it correlates with other factors within the system being studied. Therefore, its values may be determined by other variables.",investopedia,1,44.44,11.6,13,14.33,14,10,12.16666667,12.41
Endorsement,"Depending on the context of its use, an endorsement can have different meanings. An endorsement may be a signature authorizing the legal transfer of a negotiable instrument between parties.",investopedia,1,39.84,11.3,0,13.74,12,10.35,11.25,14.08
Endowment,"An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution's investable assets, also known as its principal or corpus, which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment income for charitable efforts.",investopedia,1,35.61,15,17.1,12.42,16.5,10.63,19.5,17.71
Endowment Effect,"The endowment effect refers to an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value.",investopedia,1,31.21,14.6,0,14.05,15.9,12.33,15.5,16.16
Endowment Fund,"An endowment fund is an investment fund established by a foundation that makes consistent withdrawals from invested capital. The capital or money in endowment funds is often used by universities, nonprofit organizations, churches, and hospitals. Endowment funds are typically funded by donations that are deductible for the donors and are used for specific purposes.",investopedia,1,27.83,13.9,17.1,15.43,14.9,10.96,15,17.57
Energy Return on Investment (EROI),"Energy Return on Investment (EROI) is the ratio of the amount of usable energy obtained from a resource to the amount of energy expended to produce that net amount of energy. For instance it takes energy to locate, extract, deliver, and refine crude oil before it can be used for energy.",investopedia,1,45.59,13.2,0,9.17,13.2,9.86,17.25,13.34
Energy Risk Professional (ERP),"Energy Risk Professional (ERP) is a professional designation awarded by the Global Association of Risk Professionals (GARP) to individuals who work in the oil, coal, natural gas, and alternative energy industries. As of 2021, the designation will no longer be offered.",investopedia,1,25.29,14.8,0,13.58,15,11.2,16.25,16.98
Energy Sector,"The energy sector is a category of stocks that relate to producing or supplying energy. The energy sector or industry includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, and refining. The energy industry also includes integrated power utility companies such as renewable energy and coal.",investopedia,1,27.83,13.9,17.1,13.16,13,10.09,15,16.09
Engagement Letter,"An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.",investopedia,1,54.56,11.9,0,10.51,13.9,8.98,9,12.4
Engel's Law,"Engel's Law is an economic theory introduced in 1857 by Ernst Engel, a German statistician, stating that the percentage of income allocated for food purchases decreases as income rises. As a household's income increases, the percentage of income spent on food decreases while the proportion spent on other goods (such as luxury goods) increases.",investopedia,1,35.61,15,0,13.41,17.6,10.53,20.5,18.95
Enhanced Oil Recovery (EOR),"Enhanced oil recovery (EOR), also known as “tertiary recovery,” is a process for extracting oil that has not already been retrieved through the primary or secondary oil recovery techniques.",investopedia,1,42.04,14.6,0,14.52,19.2,10.52,19.5,15.74
Enrolled Agent (EA),An enrolled agent (EA) is a tax professional authorized by the United States government to represent taxpayers in matters regarding the Internal Revenue Service (IRS). EAs must pass an examination or have sufficient experience as an IRS employee and pass a background check.  Enrolled agents first appeared in 1884 due to issues arising with Civil War loss claims.,investopedia,1,33.07,16,0,13.47,18.4,11.52,20.25,18.58
Enron,"Enron was an energy-trading and utilities company based in Houston, Texas, that perpetrated one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues and, for a time, made it the seventh-largest corporation in the United States. Once the fraud came to light, the company quickly unraveled, and it filed for Chapter 11 bankruptcy on Dec. 2, 2001.",investopedia,1,40.69,13.1,15.9,13.46,15.6,11.9,16,14.86
Enterprise Multiple,"Enterprise multiple, also known as the EV multiple, is a ratio used to determine the value of a company. The enterprise multiple, which is enterprise value divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), looks at a company the way a potential acquirer would by considering the company's debt. What's considered a ""good"" or ""bad"" enterprise multiple will depend on the industry.",investopedia,1,24.48,15.1,18.2,12.88,15,9.63,17.66666667,16.65
Enterprise Resource Planning (ERP),"Enterprise resource planning (ERP) is a process used by companies to manage and integrate the important parts of their businesses. Many ERP software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. An ERP software system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.",investopedia,1,31.92,14.3,16.3,15.73,17.1,10.4,16.5,15.49
Enterprise Risk Management (ERM),"Enterprise risk management (ERM) is a methodology that looks at risk management strategically from the perspective of the entire firm or organization. It is a top-down strategy that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other potentials for harm that may interfere with an organization's operations and objectives and/or lead to losses.",investopedia,1,25.63,16.8,0,14.74,19.6,11.7,21.75,21.22
Enterprise Value (EV),"Enterprise value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet. Enterprise value is a popular metric used to value a company for a potential takeover.",investopedia,1,32.94,14,15.5,11.55,13.4,8.64,15.33333333,14.15
Enterprise-Value-to-Revenue Multiple (EV/R),The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It’s also called the enterprise value-to-sales multiple.,investopedia,1,37.5,12.2,15.2,12.12,12.1,9.18,12.875,12.09
Enterprise Value-to-Sales (EV/Sales),"Enterprise value-to-sales (EV/sales) is a financial valuation measure that compares the enterprise value (EV) of a company to its annual sales. The EV/sales multiple gives investors a quantifiable metric of how to value a company based on its sales, while taking account of both the company's equity and debt.",investopedia,1,38.15,14,0,12.48,15.9,10.01,18.25,16.33
Entity Theory,"The entity theory is a basic theoretical assumption that all of the economic activity conducted by a business is separate from that of its owners. Entity theory is based on the idea that all of a company's activities can and will be accounted for independently of the owners' activities under the premise of limited liability, or the separation of ownership from control.",investopedia,1,14.63,18.9,0,11.85,17.6,10.52,25,22.08
Entrepreneur,"An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.",investopedia,1,54.52,9.8,13,11.19,11.1,9.2,11.33333333,12.28
Envelope,"Envelopes are technical indicators that are typically plotted over a price chart with upper and lower bounds. The most common example of an envelope is a moving average envelope, which is created using two moving averages that define upper and lower price range levels.",investopedia,1,40.69,13.1,0,12.13,13.8,10.47,15.5,15.16
Environmental Economics,Environmental economics is an area of economics that studies the financial impact of environmental policies. Environmental economists perform studies to determine the theoretical or empirical effects of environmental policies on the economy. This field of economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies.,investopedia,1,2.75,17.3,16.7,18.85,17.3,11.07,14.5,15.38
Environmental Protection Agency (EPA),"The Environmental Protection Agency (EPA) was established in December 1970 by the executive order of President Richard Nixon. It is an agency of the United States federal government whose mission is to protect human and environmental health. Headquartered in Washington, D.C., the EPA is responsible for creating standards and laws promoting the health of individuals and the environment.",investopedia,1,34.97,13.2,16.3,14.91,15.1,11.13,15,16.69
"Environmental, Social, and Governance (ESG) Criteria","Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.",investopedia,1,20.58,14.6,17.4,18.44,17.2,12.25,14.625,18.06
EOS,"EOS is a blockchain-based decentralized operating system that is designed to create, host, and support secure, decentralized autonomous applications (dApps) and smart contracts. In addition, EOS nodes subscribe to a ""constitution"" that binds them, via the blockchain, to the rules and regulations set forth by the EOS community.",investopedia,1,38.66,13.8,0,15.38,18.1,12.39,16.5,16.27
Equal Credit Opportunity Act (ECOA),The Equal Credit Opportunity Act (ECOA) is a law created by the U.S. government with the aim of giving all individuals an equal opportunity to obtain loans and other types of credit from financial institutions and other lenders.,investopedia,1,24.45,19.3,0,11.67,21.3,10.92,26,20.46
Equal Employment Opportunity Commission (EEOC),"The U.S. Equal Employment Opportunity Commission (EEOC) is the agency responsible for enforcing federal laws regarding discrimination or harassment against a job applicant or an employee in the United States. The EEOC was formed by Congress to enforce Title VII of the Civil Rights Act of 1964, opening its door for business on July 2, 1965. It is headquartered in Washington, D.C., and as of 2021, it maintains 37 other field offices throughout the United States in 15 districts.",investopedia,1,44.78,13.5,15,11.49,15.7,12.34,17.5,17.1
Equal Weight,"Equal weight is a type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund, and the smallest companies are given equal weight to the largest companies in an equal-weight index fund or portfolio. Equal weighting differs from the weighting method more commonly used by funds and portfolios in which stocks are weighted based on their market capitalizations. Equal-weighted index funds tend to have higher stock turnover than market-cap weighted index funds, and as a result, they usually have higher trading costs.",investopedia,1,49.49,13.8,14.1,12.89,18.2,9.86,18.66666667,15.11
Equated Monthly Installment (EMI),"An equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full. In the most common types of loans—such as real estate mortgages, auto loans, and student loans—the borrower makes fixed periodic payments to the lender over the course of several years with the goal of retiring the loan.",investopedia,1,50.2,13.5,15,10.69,15.9,9.22,19,15.36
Equation of Exchange,"The equation of exchange is an economic identity that shows the relationship between money supply, the velocity of money, the price level, and an index of expenditures. English classical economist John Stuart Mill derived the equation of exchange, based on earlier ideas of David Hume. It says that the total amount of money that changes hands in the economy will always equal the total money value of the goods and services that change hands in the economy.",investopedia,1,45.39,13.3,13.6,11.26,14.8,10.04,16.16666667,14.96
Equilibrium Quantity,"Equilibrium quantity is when there is no shortage or surplus of a product in the market. Supply and demand intersect, meaning the amount of an item that consumers want to buy is equal to the amount being supplied by its producers. In other words, the market has reached a perfect state of balance as prices stabilize to suit all parties.",investopedia,1,68.1,8.7,10.5,9.11,10.4,9.89,11.66666667,11.33
Equitable Relief,Equitable relief is a court-granted remedy that requires a party to act or refrain from performing a particular act in cases where legal remedies are not considered to provide sufficient restitution.,investopedia,1,23.09,17.7,0,14.57,19.7,12.81,23.5,21.43
Equity,"Equity, typically referred to as shareholders' equity (or owners' equity for privately held companies), represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation. In the case of acquisition, it is the value of company sale minus any liabilities owed by the company not transferred with the sale.",investopedia,1,34.94,17.3,0,11.27,19.9,10.03,26.5,21.62
Equity Accounting,"Equity accounting is an accounting process for recording investments in associated companies or entities. Companies sometimes have ownership interests in other companies. Typically, equity accounting–also called the equity method–is applied when an investor or holding entity owns 20–50% of the voting stock of the associate company. The equity method of accounting is used only when an investor or investing company can exert a significant influence over the investee or owned company.",investopedia,1,28.03,13.8,17.4,15.89,15,10.75,15.125,15.01
Equity Capital Market (ECM),"The equity capital market (ECM) refers to the arena where financial institutions help companies raise equity capital and where stocks are traded. It consists of the primary market for private placements, initial public offerings (IPOs), and warrants; and the secondary market, where existing shares are sold, as well as futures, options, and other listed securities are traded.",investopedia,1,34.09,15.6,0,14.34,19.3,11.7,19.75,17.01
Equity Co-Investment,An equity co-investment is a minority investment in a company made by investors alongside a private equity fund manager or venture capital (VC) firm. Equity co-investment enables other investors to participate in potentially highly profitable investments without paying the usual high fees charged by a private equity fund.,investopedia,1,21.74,16.2,0,16.02,17.9,11.74,19,14.6
Equity Compensation,"Equity compensation is non-cash pay that is offered to employees. Equity compensation may include options, restricted stock, and performance shares; all of these investment vehicles represent ownership in the firm for a company's employees.",investopedia,1,28.84,13.5,0,16.53,15.8,11.91,15,18.56
Equity Derivative,"An equity derivative is a financial instrument whose value is based on equity movements of the underlying asset. For example, a stock option is an equity derivative, because its value is based on the price movements of the underlying stock. Investors can use equity derivatives to hedge the risk associated with taking long or short positions in stocks, or they can use them to speculate on the price movements of the underlying asset.",investopedia,1,46.81,12.8,16.3,11.84,14.5,8.74,17.5,15.2
Equity-Efficiency Tradeoff,"An equity-efficiency tradeoff is when there is some kind of conflict between maximizing economic efficiency and maximizing the equity (or fairness) of society in some way. When and if such a trade-off exists, economists or public policymakers may decide to sacrifice some amount of economic efficiency for the sake of achieving a more just or equitable society.",investopedia,1,25.63,16.8,0,13.35,18,9.21,21.25,17.72
Equity Financing,"Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills, or they might have a long-term goal and require funds to invest in their growth. By selling shares, a company is effectively selling ownership in their company in return for cash.",investopedia,1,60.65,9.5,12.5,10.5,11.2,8.46,12.16666667,11.11
Equity Fund,An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.,investopedia,1,61.63,7.1,11.2,7.63,5.6,10.11,5.833333333,10.78
Equity-Linked Note (ELN),"An equity-linked note (ELN) is an investment product that combines a fixed-income investment with additional potential returns that are tied to the performance of equities. Equity-linked notes are usually structured to return the initial investment with a variable interest portion that depends on the performance of the linked equity. ELNs can be structured in many different ways, but the vanilla version works like a strip bond combined with a call option on a specific security, a basket of securities or an index like the S&P 500 or DJIA. In the case of a note linked to an equity index, the security would typically be called an equity index-linked note.",investopedia,1,43.77,13.9,16.5,11.73,16.1,10.64,17.25,15.32
Equity-Linked Security (ELKS),"The term equity-linked security refers to a debt instrument with variable payments linked to an equity market benchmark. These securities are an alternative type of fixed-income investment—structured products most often created as bonds. Equity-linked securities are usually used in private market corporate capital financings, and are offered to investors to raise corporate capital. As such, they are not traded on financial market exchanges.",investopedia,1,24.78,15,17.1,17.23,17.8,11.45,12.375,15.38
Equity Market,"An equity market is a market in which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy. It gives companies access to capital to grow their business, and investors a piece of ownership in a company with the potential to realize gains in their investment based on the company's future performance.",investopedia,1,46.81,12.8,15,10.68,13.8,9.6,16.5,14.65
Equity Method,"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.",investopedia,1,33.58,15.8,0,12.89,17.4,8.61,22,15.05
Equity Multiplier,The equity multiplier is a risk indicator that measures the portion of a company’s assets that is financed by stockholder's equity rather than by debt. It is calculated by dividing a company's total asset value by its total shareholders' equity.,investopedia,1,34.26,13.5,0,11.89,12.8,11.34,15.5,17
Equity Premium Puzzle (EPP),"The equity premium puzzle (EPP) refers to the excessively high historical outperformance of stocks over Treasury bills, which is difficult to explain. The equity risk premium, which is usually defined as equity returns minus the return of Treasury bills, is estimated to be between 5% and 8% in the United States. The premium is supposed to reflect the relative risk of stocks compared to ""risk-free"" government securities. However, the puzzle arises because this unexpectedly large percentage implies an unreasonably high level of risk aversion among investors.",investopedia,1,32.73,14,15.6,13.87,15.5,10.39,15.5,14.65
Equity Risk Premium,The term equity risk premium refers to an excess return that investing in the stock market provides over a risk-free rate. This excess return compensates investors for taking on the relatively higher risk of equity investing. The size of the premium varies and depends on the level of risk in a particular portfolio. It also changes over time as market risk fluctuates.,investopedia,1,55.74,9.3,12.6,10.84,9.8,8.73,10.5,11.36
Equivalent Annual Annuity Approach (EAA),"The equivalent annual annuity approach is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. The EAA approach calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity. When used to compare projects with unequal lives, an investor should choose the one with the higher EAA.",investopedia,1,59.33,10,14.1,12.18,13,9.3,13.83333333,13.37
Equivalent Annual Cost (EAC),"Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. Firms often use EAC for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets with unequal lifespans.",investopedia,1,33.24,13.8,0,12.94,14.5,11.07,16,16.02
Erosion,"Erosion can include any negative impact on a company’s associated assets or funds. Erosion can be experienced with regard to profits, sales, or tangible assets, such as manufacturing equipment. Erosion is often considered a general risk factor within an organization’s cash management system, as the losses may be slow and occurring over time.",investopedia,1,36.59,12.6,14.1,13.63,13.4,11.66,12.5,14.63
Error Term,"An error term is a residual variable produced by a statistical or mathematical model, which is created when the model does not fully represent the actual relationship between the independent variables and the dependent variables. As a result of this incomplete relationship, the error term is the amount at which the equation may differ during empirical analysis.",investopedia,1,25.63,16.8,0,13.87,18.2,10.59,20.75,19.82
Errors and Omissions Insurance (E&O),"Errors and omissions insurance (E&O) is a type of professional liability insurance that protects companies, their workers, and other professionals against claims of inadequate work or negligent actions.",investopedia,1,9.22,18.9,0,18.05,22,14.05,22,21.2
Escheat,Escheat refers to the right of a government to take ownership of estate assets or unclaimed property. It most commonly occurs when an individual dies with no will and no heirs. Escheat rights can also be granted when assets are unclaimed for a prolonged period of time. These situations can also be referred to as bona vacantia or simply just unclaimed property.,investopedia,1,55.74,9.3,11.7,10.38,9.4,9.5,9,10.72
Escrow,"Escrow is a legal concept describing a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction. Escrow accounts might include escrow fees managed by agents who hold the funds or assets until receiving appropriate instructions or until the fulfillment of predetermined contractual obligations. Money, securities, funds, and other assets can all be held in escrow. It is often suggested as a replacement for a certified or cashier's check.",investopedia,1,40.69,13.1,14.6,12.24,14,10.47,15,16.07
Escrow Agent,An escrow agent is a person or entity that holds property in trust for third parties while a transaction is finalized or a disagreement is resolved. The role of escrow agent is often played by an attorney (or notary in civil law jurisdictions). The escrow agent has a fiduciary responsibility to both parties of the escrow agreement.,investopedia,1,52.19,10.7,13,10.39,11,9.84,12.5,13.92
Escrow Agreement,"An escrow agreement is a contract that outlines the terms and conditions between parties involved, and the responsibility of each. Escrow agreements generally involve an independent third party, called an escrow agent, who holds an asset of value until the specified conditions of the contract are met. However, they should fully outline the conditions for all parties involved.",investopedia,1,43.43,12,12.5,14.1,14.3,9.49,12.33333333,11.17
Escrowed Shares,"Escrowed shares are shares held in an escrow account, secured by a third party, pending the completion of a corporate action or an elapse of time leading up to an event. Shares are escrowed in three common cases: merger and acquisition transactions; bankruptcy or reorganization of a company; and granting of restricted shares to an employee of a firm.",investopedia,1,41.53,14.8,0,11.62,16.9,10.99,19.25,17.22
Esoteric Debt,"Esoteric debt refers to debt instruments as well as other investments (called esoteric assets) that are structured in a way that few people fully understand. Esoteric debt is complex and can be a product of securitization, or simply arise through a complex financing arrangement. As such, the pricing of these securities can be contested or seem to be known to relatively few market participants. Moreover, the structure of these instruments may lead to deceptively attractive risk/return profiles over other investments when the instruments function properly, but can also lead to illiquidity and pricing problems when markets are disrupted.",investopedia,1,38.15,14,16.2,14.8,17.1,9.85,17.5,15.92
Estate,"An estate is everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash, and other assets that the individual owns or has a controlling interest in.",investopedia,1,11.59,20.1,0,14.17,21.5,10.43,27,23.01
Estate Planning,Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.,investopedia,1,53.21,10.3,11.2,9.8,10.2,9.5,11,10.9
Estate Tax,"An estate tax is a levy on estates whose value exceeds an exclusion limit set by law. Only the amount that exceeds that minimum threshold is subject to tax. Assessed by the federal government and about a dozen state governments, these levies are calculated based on the estate's fair market value (FMV) rather than what the deceased originally paid for its assets. The tax is levied by the state in which the deceased person was living at the time of their death.",investopedia,1,67.59,8.9,10.7,9.23,10.8,8.5,12,11.13
Estimated Ultimate Recovery (EUR),Estimated ultimate recovery (EUR) is a production term commonly used in the oil and gas industry. Estimated ultimate recovery is an approximation of the quantity of oil or gas that is potentially recoverable or has already been recovered from a reserve or well.,investopedia,1,32.73,14,0,11.84,13.4,9.48,17.75,18.83
Understanding Estoppel,Estoppel is a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously said or agreed to by law. It is meant to prevent people from being unjustly wronged by the inconsistencies of another person's words or actions.,investopedia,1,48.64,12.1,0,12.77,14.3,10.37,15.25,15.22
Ether (ETH),Ether is the transactional token that facilitates operations on the Ethereum network. All of the programs and services linked with the Ethereum network require computing power (and that computing power is not free). Ether is a form of payment for network participants to execute their requested operations on the network.,investopedia,1,46.06,11,13,13.51,12.6,9.2,11.33333333,12.28
Ethereum Classic,"Ethereum Classic is an open-source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts. Ethereum Classic was formed—as a result of a hack of the network—in 2016. The original Ethereum blockchain was split in two with Ethereum Classic being the original and Ethereum being the newer blockchain.",investopedia,1,64,8.2,10.5,17.34,15.5,10.46,8.5,9.68
What Is Ethereum?,"Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum, and its own programming language, called Solidity.",investopedia,1,58.62,10.3,0,15.61,17.1,10.69,13.5,14.11
Ethical Investing,"Ethical investing refers to the practice of using one's ethical principles as the primary filter for the selection of securities investing. Ethical investing depends on the investor's views. Ethical investing is sometimes used interchangeably with socially conscious investing; however, socially conscious funds typically have one overarching set of guidelines that are used to select the portfolio, whereas ethical investing brings about a more personalized result.",investopedia,1,4.65,20.7,0,18.58,24,11.56,18.5,20.38
EUR,"The European Economic and Monetary Union (EMU), or EU, is comprised of 27 member nations, 19 of whom have adopted the euro as their official currency.",investopedia,1,45.09,13.4,0,9.58,14.2,13.43,18,18.09
Euro,"The European Economic and Monetary Union (EMU), or EU, is comprised of 27 member nations, 19 of whom have adopted the euro as their official currency.",investopedia,1,45.09,13.4,0,9.58,14.2,13.43,18,18.09
Euro Interbank Offer Rate (Euribor),"Euribor, or the Euro Interbank Offer Rate, is a reference rate that is constructed from the average interest rate at which eurozone banks offer unsecured short-term lending on the inter-bank market. The maturities on loans used to calculate Euribor often range from one week to one year.",investopedia,1,39.16,13.6,0,12.02,14.5,10.18,17.75,17.91
Euro Medium Term Notes (EMTN),"A euro medium-term note is a medium-term, flexible debt instrument that is traded and issued outside of the United States and Canada. These instruments require fixed payments and are directly issued to the market with maturities that are less than five years. EMTNs allow an issuer to enter the foreign markets more easily to obtain capital. Firms also offer EMTNs continuously, whereas a bond issue, for example, occurs all at once.",investopedia,1,53.41,10.2,11.7,11.6,11.8,10.75,11.125,11.63
Euro Overnight Index Average (Eonia),"The Euro Overnight Index Average (Eonia) is the average overnight reference rate for which European banks lend to one another in euros. The Eonia is the interest rate for one-day loans between European banks and is considered an interbank rate. However, European regulatory reforms have resulted in a push to replace Eonia by January 2022.",investopedia,1,44.44,11.6,15.5,12.24,12.3,9.42,13.83333333,13.14
Eurobond,"A Eurobond is a debt instrument that's denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or Euro-yen bonds. Since Eurobonds are issued in an external currency, they're often called external bonds. Eurobonds are important because they help organizations raise capital while having the flexibility to issue them in another currency.",investopedia,1,34.97,13.2,15.2,13.29,13.6,8.28,14.125,11.88
Euroclear,Euroclear is one of two principal securities clearing houses in the Eurozone. Euroclear specializes in verifying information supplied by brokers involved in a securities transaction and the settlement of securities transacted on European exchanges.,investopedia,1,11.92,15.8,0,18.73,16.8,11.91,15.5,18.56
Eurocurrency Market,"The eurocurrency market is the money market for currency outside of the country where it is legal tender. The eurocurrency market is utilized by banks, multinational corporations, mutual funds, and hedge funds. They wish to circumvent regulatory requirements, tax laws, and interest rate caps often present in domestic banking, particularly in the United States.",investopedia,1,36.28,12.7,14.6,14.67,14.5,10.38,13,15.35
Euromarket,The term euromarket has two distinct meanings:,investopedia,1,55.91,7.2,0,12.36,9,10.75,3.5,8.51
"Europe, Middle East, and Africa (EMEA)","Europe, Middle East, and Africa (EMEA) countries are a geographical division used by many multinational corporations. The acronym is an easy shorthand method of referring to all three continents at once and is especially popular among North American companies.",investopedia,1,34.76,13.3,0,14.85,15.1,11.08,14.75,17.03
European Banking Authority (EBA),"The European Banking Authority (EBA) is a regulatory body that strives to maintain financial stability throughout the European Union’s (EU) banking industry. It was established in 2010 by the European Parliament, replacing the Committee of European Banking Supervisors (CEBS).",investopedia,1,17.84,15.6,0,16.94,17.2,12.7,16.75,19.08
European Central Bank (ECB),"The European Central Bank (ECB) is the central bank responsible for monetary policy of those European Union (EU) member countries which have adopted the euro currency. This region is known as the eurozone and currently comprises 19 members. The principal goal of the ECB is to maintain price stability in the euro area, thus helping preserve the purchasing power of the euro.",investopedia,1,50.46,11.4,14.6,11.37,12.7,11.28,14.33333333,15.38
European Community (EC),"The European Community (EC) was an economic association formed by six European member countries in 1957, consisting of three communities that eventually were replaced by the European Union (EU) in 1993. The European Community dealt with policies and governing, in a communal fashion, across all member states.",investopedia,1,30.7,14.8,0,14.34,16.7,11.19,18.25,17.06
European Currency Unit (ECU),"The European Currency Unit (ECU) was the official monetary unit of the European Monetary System (EMS) before it was replaced by the euro. The value of the ECU was used to determine the exchange rates and reserves among the members of the EMS, but it was always an accounting unit rather than a real currency.",investopedia,1,52.02,12.8,0,9.06,14.1,9.31,18.25,15.36
European Economic and Monetary Union (EMU),The European Economic and Monetary Union (EMU) combined the European Union (EU) member states into a cohesive economic system. It is the successor to the European Monetary System (EMS).,investopedia,1,39.84,11.3,0,12.11,11.5,10.35,11.75,12.7
European Monetary System (EMS),"The European Monetary System (EMS) was an adjustable exchange rate arrangement set up in 1979 to foster closer monetary policy cooperation between members of the European Community (EC). The European Monetary System (EMS) was later succeeded by the European Economic and Monetary Union (EMU), which established a common currency, the euro.",investopedia,1,28.67,15.6,0,15.21,18.5,12.02,20.75,18.04
European Sovereign Debt Crisis,"The European sovereign debt crisis was a period when several European countries experienced the collapse of financial institutions, high government debt, and rapidly rising bond yield spreads in government securities.",investopedia,1,15.65,18.5,0,19.45,23.4,12.49,26,21.33
European Union (EU),The European Union (EU) is a group of 27 countries that operates as a cohesive economic and political block. Nineteen of the countries use the euro as their official currency.,investopedia,1,56.25,9.1,0,9.97,9.3,10.7,11,15.33
Eurozone,"The eurozone, officially known as the euro area, is a geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency. As of Aug. 2020, the eurozone consists of 19 countries in the European Union (EU): Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain. Approximately 340 million people live in the eurozone area.",investopedia,1,24.45,19.3,0,15.73,25.6,13.62,26.5,21.52
EV/2P Ratio,"The EV/2P ratio is a ratio used to value oil and gas companies. It consists of the enterprise value (EV) divided by the proven and probable (2P) reserves. The enterprise value reflects the company's total value. Proven and probable (2P) refers to energy reserves, such as oil, that are likely to be recovered.",investopedia,1,57.98,8.5,11.7,8.4,8,9.06,7.875,10.6
Evening Star,"An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle.",investopedia,1,58.62,10.3,0,10.62,12.5,8.44,13.5,11.26
Event Study,"An event study is an empirical analysis that examines the impact of a significant catalyst occurrence or contingent event on the value of a security, such as company stock.",investopedia,1,25.12,17,0,11.73,16.5,10.52,23.5,22.63
Evergreen Contract,An evergreen contract automatically renews on or after the expiry date. The parties involved in the contract agree that it rolls over automatically until one gives the notice to terminate it.,investopedia,1,31.55,16.6,0,13.24,18.7,10.27,8.75,16.27
Evergreen Funding,"Evergreen funding (or evergreen finance) is the gradual infusion of capital into a new or recapitalized enterprise. This type of funding differs from the traditional funding situation in which all the capital required for a business venture is supplied up-front by venture capitalists or other investors as part of a private funding round. When the money is provided upfront, the company then invests in short-term, low-risk securities until it is ready to use the money for business operations.",investopedia,1,28.17,15.8,15.9,13.35,16.8,9.58,18,16.04
Evergreen Loan,"An evergreen loan is a loan that does not require the repayment of principal during the life of the loan, or during a specified period of time. In an evergreen loan, the borrower is required to make only interest payments during the life of the loan. Evergreen loans are usually in the form of a line of credit that is continuously paid down, leaving the borrower with available funds for credit purchases. Evergreen loans may also be known as “standing” or “revolving” loans.",investopedia,1,51.82,12.9,16.3,10.22,14.9,8.62,14.375,16.38
Ex-Ante,"Ex-ante refers to future events, such as the potential returns of a particular security, or the returns of a company. Transcribed from Latin, it means “before the event.”",investopedia,1,57.27,8.8,0,10.49,9.6,11.1,8,9.89
Ex-Date,"The ex-dividend date, or ex-date for short, is one of four stages that companies go through when they pay dividends to their shareholders. The ex-dividend date is important because it determines whether the buyer of a stock will be entitled to receive its upcoming dividend.",investopedia,1,48.64,12.1,0,11.78,13.9,8.61,16.25,15.22
Ex-Dividend,"Ex-dividend describes a stock that is trading without the value of the next dividend payment. The ex-dividend date or ""ex-date"" is the day the stock starts trading without the value of its next dividend payment.",investopedia,1,53.71,10.1,0,10.61,11.2,6.76,10.75,8.14
Ex Gratia Payment,"An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment.",investopedia,1,28.51,17.7,0,11.09,18.7,9.97,23,19.48
Ex-Post,"Ex-post is another word for actual returns and is Latin for ""after the fact."" The use of historical returns has customarily been the most well-known approach to forecast the probability of incurring a loss on investment on any given day. Ex-post is the opposite of ex-ante, which means ""before the event.""",investopedia,1,54.22,9.9,12.5,10.03,10.6,8.81,11.16666667,12.29
Ex Works (EXW),"Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs. Ex works (EXW) is one of the 11 current Incoterms (International Commercial Terms), a set of standardized international trade terms that are published by the International Chamber of Commerce.",investopedia,1,40.52,15.2,0,13.24,18.9,11.1,19.25,15.48
Excess Capacity,"Excess capacity is a condition that occurs when demand for a product is less than the amount of product that a business could potentially supply to the market. When a firm is producing at a lower scale of output than it has been designed for, it creates excess capacity.",investopedia,1,55.07,11.7,0,9.06,12.3,9.69,14.75,13.07
Excess Cash Flow,Excess cash flow is a term used in loan agreements or bond indentures and refers to the portion of cash flows of a company that are required to be repaid to a lender. Excess cash flow is typically cash received or generated by a company in the form of revenues or investments that triggers a payment to the lender as stipulated in their credit agreement.,investopedia,1,55.41,13.6,0,9.01,15.8,9.86,19.75,16.08
Excess of Loss Reinsurance,Excess of loss reinsurance is a type of reinsurance in which the reinsurer indemnifies–or compensates–the ceding company for losses that exceed a specified limit. A reinsurer is a company that provides financial protection to insurance companies; a ceding company is an insurance company that transfers the insurance portfolio to a reinsurer.,investopedia,1,20.21,16.8,0,16.13,18.4,10.47,22.25,18.04
Excess Reserves,"Excess reserves are capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls. For commercial banks, excess reserves are measured against standard reserve requirement amounts set by central banking authorities. These required reserve ratios set the minimum liquid deposits (such as cash) that must be in reserve at a bank; more is considered excess.",investopedia,1,40.99,12.9,14.1,14.16,15.5,10.54,14.5,14.83
Excess Return,Excess returns are returns achieved above and beyond the return of a proxy. Excess returns will depend on a designated investment return comparison for analysis. Some of the most basic return comparisons include a riskless rate and benchmarks with similar levels of risk to the investment being analyzed.,investopedia,1,46.78,10.7,12.5,13.11,11.8,10.35,10.66666667,12.23
Exchange,"An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.",investopedia,1,34.26,13.5,15.9,15.61,15.8,9.89,15,16.67
Exchange Control,"Exchange controls are government-imposed limitations on the purchase and/or sale of currencies. These controls allow countries to better stabilize their economies by limiting in-flows and out-flows of currency, which can create exchange rate volatility. Not every nation may employ the measures, at least legitimately; the 14th article of the International Monetary Fund's Articles of Agreement allows only countries with so-called transitional economies to employ exchange controls.",investopedia,1,21.06,18.5,0,19.1,25,11.73,15.33333333,20.47
Exchange of Futures for Physical (EFP),"An exchange of futures for physical (EFP) is a private agreement between two parties to trade a futures position for the basket of underlying actuals. An exchange of futures for physicals can be used to open a futures position, close a futures position, or switch a futures position for the underlying asset.",investopedia,1,36.63,14.6,0,11.03,14.8,8.27,17.5,14.25
Exchange Rate,"An exchange rate is the value of one nation's currency versus the currency of another nation or economic zone. For example, how many U.S. dollars does it take to buy one euro? As of July 31, 2020, the exchange rate is 1.18, meaning it takes $1.18 to buy €1.",investopedia,1,71.85,7.3,10.5,5.86,7,9.92,8.833333333,8.97
Exchange Rate Mechanism (ERM),An exchange rate mechanism (ERM) is a set of procedures used to manage a country's currency exchange rate relative to other currencies. It is part of an economy's monetary policy and is put to use by central banks.,investopedia,1,52.19,10.7,0,8.99,10.1,9.98,13.5,16.02
Exchange Ratio,"The exchange ratio is the relative number of new shares that will be given to existing shareholders of a company that has been acquired or that has merged with another. After the old company shares have been delivered, the exchange ratio is used to give shareholders the same relative value in new shares of the merged entity.",investopedia,1,51.01,13.2,0,10.16,15.1,7.54,19.25,14.91
Exchange Traded Derivative,"An exchange traded derivative is a financial contract that is listed and trades on a regulated exchange. Simply put, these are derivatives that are traded in a regulated fashion. Exchange traded derivatives have become increasingly popular because of the advantages they have over over-the-counter (OTC) derivatives, such as standardization, liquidity, and elimination of default risk. Futures and options are two of the most popular exchange traded derivatives. Exchange traded derivatives can be used to hedge exposure or speculate on a wide range of financial assets like commodities, equities, currencies, and even interest rates.",investopedia,1,27.22,14.1,15.6,15.55,15.3,9.65,14.1,14.32
Exchange-Traded Fund (ETF),"An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.",investopedia,1,56.59,11.1,13,9.75,12.4,9.58,14.5,13.84
Exchange-Traded Note (ETN),"Exchange-traded notes (ETNs) are types of unsecured debt securities that track an underlying index of securities and trade on a major exchange like a stock. ETNs are similar to bonds but do not have interest payments. Instead, the prices of ETNs fluctuate like stocks.",investopedia,1,56.55,9,12.5,10.84,10,10.11,9,11.33
Exchange Traded Product (ETP),"Exchange traded products (ETPs) are types of securities that track underlying securities, an index, or other financial instruments. ETPs trade on exchanges similar to stocks meaning their prices can fluctuate from day-to-day and intraday. However, the prices of ETPs are derived from the underlying investments that they track.",investopedia,1,38.32,11.9,14.6,15.08,14,10.35,12,13.07
Excise Tax,"An excise tax is a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol. Excise taxes are intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders. A federal excise tax is usually collected from motor fuel sales, airline tickets, tobacco, and other goods and services.",investopedia,1,17.17,17.9,0,15.15,19.6,10.31,13.5,17.72
Exculpatory Clause,"An exculpatory clause is a contract provision that relieves one party of liability if damages are caused during the execution of the contract. The party that issues the exculpatory clause is typically the one seeking to be relieved of the potential liability. For example, a venue may print an exculpatory clause on tickets it sells for a concert, indicating that it is not responsible for personal injury caused by employees or others during the show.",investopedia,1,29.18,15.4,15.5,11.84,14.8,10.14,17.16666667,15.87
Execution,"Execution is the completion of a buy or sell order for a security. The execution of an order occurs when it gets filled, not when the investor places it. When the investor submits the trade, it is sent to a broker, who then determines the best way for it to be executed.",investopedia,1,70.84,7.7,11.2,6.2,7.1,8.14,10.66666667,10.77
Executive MBA,"Executive master of business administration is a degree program similar to a master of business administration (MBA) program but specifically designed for corporate executives and senior managers already in the workforce. An executive MBA program referred to as an EMBA enables executives to earn the degree while continuing to hold their existing jobs. Typically, EMBA students are relatively senior in their fields and possess considerable work experience before entering the program.",investopedia,1,13.58,17.3,16.3,16.48,18,10.82,17.16666667,16.8
Executor,"An executor of an estate is an individual appointed to administer the last will and testament of a deceased person. The executor's main duty is to carry out the instructions to manage the affairs and wishes of the deceased. The executor is appointed either by the testator of the will (the individual who makes the will) or by a court, in cases wherein there was no prior appointment.",investopedia,1,48.43,12.1,14.6,9.46,11.9,9.17,15.33333333,14.37
Exempt Employee,"The term “exempt employee” refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. When an employee is exempt, it primarily means that they are exempt from receiving overtime pay. Exempt employees stand in contrast to nonexempt employees.",investopedia,1,56.96,8.9,12.6,11.01,9.8,8.78,8.875,10.63
Exempt Income,"Exempt income refers to certain types or amounts of income that are not subject to income tax. Some types of income are exempt from federal or state income tax, or both.",investopedia,1,72.66,7,0,7.89,7.4,6.95,7.25,7.49
Exempt-Interest Dividend,"An exempt-interest dividend is a distribution from a mutual fund that is not subject to federal income tax. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. While exempt-interest dividends are not subject to federal income tax, they may still be subject to state income tax or the alternative minimum tax (AMT). The dividend income must be reported on the income tax return and it is reported by mutual funds on Form 1099-INT.",investopedia,1,34.97,13.2,15.6,11.89,12.5,8.49,14.375,13.43
Exempt Transaction,"An exempt transaction is a type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer's operations and that no new securities are being issued. Exempt securities are the instruments used that the government backs, which have tax-exempt status.",investopedia,1,23.6,17.5,0,14.57,19.7,9.81,22.25,17.45
Exemption,"An exemption is a deduction allowed by law that reduces the amount of income that is subject to income tax. The Internal Revenue Service (IRS) previously offered two types of exemptions: personal and dependent exemptions. But with the changes brought about by the 2017 Tax Cuts and Jobs Act, the personal exemption is disappearing until 2025. At the same time, the standard amount that can be deducted when filing nearly doubled.",investopedia,1,61.87,9.1,13,11.08,11.3,9.63,11.875,12.19
Exercise,"Exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract. In options trading, the holder of an option has the right, but not the obligation, to buy or sell the option's underlying security at a specified price on or before a specified date in the future.",investopedia,1,42.55,14.4,0,9.75,15.1,8.93,19.25,16.31
Exercise Price Definition,"The exercise price is the price at which an underlying security can be purchased or sold when trading a call or put option, respectively. It is also referred to as the strike price and is known when an investor initiates the trade.",investopedia,1,67.08,9.1,0,8.82,10.6,8.81,13,13.16
Exit Strategy,"An exit strategy is a contingency plan that is executed by an investor, trader, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria for either has been met or exceeded.",investopedia,1,10.91,22.4,0,13.54,24.8,12.01,32.5,27.43
Exogenous Growth,"Exogenous growth, a key tenet of neoclassical economic theory, states that economic growth is fueled by technological progress independent of economic forces.",investopedia,1,15.31,16.6,0,18.04,18.9,12.62,19,19.71
Expanded Accounting Equation,The expanded accounting equation is derived from the common accounting equation and illustrates in greater detail the different components of stockholders' equity in a company.,investopedia,1,20.72,16.6,0,17.82,19.7,11.82,21.5,19.6
Expansion,"Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.",investopedia,1,37.13,14.4,0,11.9,15.4,11.4,18.25,18.04
Expansionary Policy,"Expansionary, or loose policy is a form of macroeconomic policy that seeks to encourage economic growth. Expansionary policy can consist of either monetary policy or fiscal policy (or a combination of the two). It is part of the general policy prescription of Keynesian economics, to be used during economic slowdowns and recessions in order to moderate the downside of economic cycles.",investopedia,1,25.49,14.7,18.2,13.05,13.9,9.56,17.16666667,15.99
Expatriate,"An expatriate, or ex-pat, is an individual living and/or working in a country other than his or her country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.",investopedia,1,21.74,16.2,0,11.55,14.4,7.46,17,13.77
Expected Loss Ratio (ELR Method),"Expected loss ratio (ELR) method is a technique used to determine the projected amount of claims, relative to earned premiums. The expected loss ratio (ELR) method is used when an insurer lacks the appropriate past claims occurrence data to provide because of changes to its product offerings and when it lacks a large enough sample of data for long-tail product lines.",investopedia,1,48.98,14,0,11.91,17.7,10.84,20.25,18.1
Expected Value (EV),"The expected value (EV) is an anticipated value for an investment at some point in the future. In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values. By calculating expected values, investors can choose the scenario most likely to give the desired outcome.",investopedia,1,32.94,14,15,12.53,14,9.63,15,14.77
Expected Return,The expected return is the profit or loss that an investor anticipates on an investment that has known historical rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these results.,investopedia,1,42.21,12.5,0,12.3,13.3,10.82,14.75,16.98
Expected Utility,"Expected utility is an economic term summarizing the utility that an entity or aggregate economy is expected to reach under any number of circumstances. The expected utility is calculated by taking the weighted average of all possible outcomes under certain circumstances. With the weights being assigned by the likelihood or probability, any particular event will occur.",investopedia,1,27.11,14.1,17.5,15.03,14.5,9.92,15.66666667,16.77
Expedited Funds Availability Act (EFAA),"The Expedited Funds Availability Act (EFAA) was implemented to regulate the hold periods on deposits made to commercial banks. Enacted by the U.S. Congress in 1987, the EFAA also standardized financial institutions' use of the deposit holds. The EFAA specifies the types of holds that banks can utilize on a check deposit, depending on the type of account and the amount of the deposit.",investopedia,1,55.24,9.5,13,10.79,10.4,10.35,11,13.9
Expenditure Method,"The expenditure method is a system for calculating gross domestic product (GDP) that combines consumption, investment, government spending, and net exports. It is the most common way to estimate GDP. It says everything that the private sector, including consumers and private firms, and government spend within the borders of a particular country, must add up to the total value of all finished goods and services produced over a certain period of time. This method produces nominal GDP, which must then be adjusted for inflation to result in the real GDP.",investopedia,1,48.64,12.1,14.2,12.25,14.3,10.72,15,14.33
Expense,"An expense is the cost of operations that a company incurs to generate revenue. As the popular saying goes, “it costs money to make money.”",investopedia,1,58.79,8.2,0,8.05,6.7,9.31,7.25,9.8
Expense Ratio,"An expense ratio (ER), also sometimes known as the management expense ratio (MER), measures how much of a fund's assets are used for administrative and other operating expenses. An expense ratio is determined by dividing a fund's operating expenses by the average dollar value of its assets under management (AUM). Operating expenses reduce the fund's assets, thereby reducing the return to investors.",investopedia,1,33.54,13.7,15,13.11,14.7,9.5,14.66666667,13.44
Experience Rating (Insurance) Definition,An experience rating is the amount of loss that an insured party experiences compared to the amount of loss that similar insured parties have. Experience rating is most commonly associated with workers’ compensation insurance. It is used to calculate the experience modification factor.,investopedia,1,23.12,13.6,14.6,14.61,12.4,9.85,11.16666667,15.02
Expiration Time,"The expiration time of an options contract or other derivative is the exact date and time when it is rendered null and void. Derivatives contracts that finish out of the money (OTM) at the time of expiration will become worthless, while in the money (ITM) contracts will be evaluated based upon the settlement price upon expiry.",investopedia,1,43.06,14.2,0,10.57,15.6,9.25,17,14.06
Expiration Date (Derivatives),"An expiration date in derivatives is the last day that derivative contracts, such as options or futures, are valid. On or before this day, investors will have already decided what to do with their expiring position.",investopedia,1,53.21,10.3,0,10.96,11.4,9.35,12,13.87
Explicit Cost,"Explicit costs are normal business costs that appear in the general ledger and directly affect a company's profitability. Explicit costs have clearly defined dollar amounts, which flow through to the income statement. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other direct costs.",investopedia,1,47.08,10.6,13.6,15.72,14.4,10.8,11.16666667,12.24
Exploration & Production (E&P),"An exploration & production (E&P) company is in a specific sector within the oil and gas industry. Exploration and production is the early stage of energy production, which includes searching and extracting oil and gas. An E&P company finds and extracts the raw materials used in the energy business. However, E&P companies typically do not refine or produce energy but merely find and extract raw materials to be shipped to other oil companies within the production process.",investopedia,1,35.27,13.1,15.9,12.24,12.8,9.36,14.625,12.34
Exponential Growth,"Exponential growth is a pattern of data that shows greater increases with passing time, creating the curve of an exponential function. For example, suppose a population of mice rises exponentially every year starting with two in the first year, then four in the second year, 16 in the third year, 256 in the fourth year, and so on. The population is growing to the power of 2 each year in this case.",investopedia,1,55.58,11.5,12.5,8.71,12,8.99,14.66666667,12.93
Exponential Moving Average (EMA),"An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period.",investopedia,1,31.51,14.5,15.5,13.52,15.4,9.87,16,13.2
Export Credit Agency,"An export credit agency offers trade finance and other services to facilitate domestic companies' international exports. Most countries have ECAs that provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries.",investopedia,1,27.32,14,0,17.52,16.6,13.09,13.75,17.13
Export Trading Company (ETC),"An export trading company is an independent company that provides support services for firms engaged in exporting. This may include warehousing, shipping, insuring, and billing on behalf of the client.",investopedia,1,47.79,10.3,0,14.43,13.1,12.8,10.5,11.33
Export,"Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade.",investopedia,1,67.25,7,0,10.6,8.9,8.05,6.25,6.6
Exposure at Default (EAD),"Exposure at default (EAD) is the total value a bank is exposed to when a loan defaults. Using the internal ratings-based (IRB) approach, financial institutions calculate their risk. Banks often use internal risk management default models to estimate respective EAD systems. Outside of the banking industry, EAD is known as credit exposure.",investopedia,1,49.82,9.5,13,12.98,11.4,11.87,8.5,12.12
Express Warranty,"An express warranty is an agreement by a seller to provide repairs or a replacement for a faulty product, component, or service within a specified time period after it was purchased. Buyers rely on these promises or guarantees and sometimes purchase items because of them.",investopedia,1,48.64,12.1,0,11.9,13.7,11.77,14.25,14.33
Expropriation,"Expropriation is the act of a government claiming privately owned property against the wishes of the owners, ostensibly to be used for the benefit of the overall public. In the United States, properties are most often expropriated in order to build highways, railroads, airports, or other infrastructure projects. The property owner must be paid for the seizure since the Fifth Amendment to the Constitution states that private property cannot be expropriated ""for public use without just compensation.""",investopedia,1,36.93,14.5,15.5,14.45,17.5,9.42,17.5,15.47
Extended Trading,Extended trading is trading conducted by electronic networks either before or after the regular trading hours of the listing exchange. Such trading tends to be limited in volume compared to regular trading hours when the exchange is open.,investopedia,1,43.73,11.9,0,13.11,13,9.57,12.5,12.86
External Debt,"External debt is the portion of a country's debt that is borrowed from foreign lenders, including commercial banks, governments, or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. To earn the needed currency, the borrowing country may sell and export goods to the lending country.",investopedia,1,43.73,11.9,15,13.46,13.8,10.67,13.83333333,15.32
External Economies of Scale,"External economies of scale occur outside of an individual company but within the same industry. Remember that in economics, economies of scale mean that the more units a business produces, the less it costs to produce each unit.",investopedia,1,60.65,9.5,0,11.43,11.9,9.98,12.5,11.81
Externality,"An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer. An externality can be both positive or negative and can stem from either the production or consumption of a good or service. The costs and benefits can be both private—to an individual or an organization—or social, meaning it can affect society as a whole.",investopedia,1,40.99,12.9,15.9,10.21,12,9.57,15.83333333,16.06
Externality of Production,"Production externality refers to a side effect from an industrial operation, such as a paper mill producing waste that is dumped into a river. Production externalities are usually unintended, and their impacts are typically unrelated to and unsolicited by anyone. They can have economic, social, or environmental side effects.",investopedia,1,21.09,14.4,15.5,14.61,13.5,10.57,12.83333333,17.13
Extraordinary General Meetings (EGM),An extraordinary general meeting (EGM) is a shareholder meeting called other than a company’s scheduled annual general meeting (AGM). An EGM is also called a special general meeting or emergency general meeting.,investopedia,1,29.86,13.1,0,14.15,13.2,9.36,12.5,12.65
Extraordinary Item,"Extraordinary items consisted of gains or losses from events that were unusual and infrequent in nature that were separately classified, presented and disclosed on companies' financial statements. Extraordinary items were usually explained further in the notes to the financial statements. Companies showed an extraordinary item separately from their operating earnings because it was typically a one-time gain or loss and was not expected to recur in the future.",investopedia,1,23.05,15.7,17.1,16.31,17.3,11.26,17.33333333,17.32
Extrinsic Value,"Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset's price. The opposite of extrinsic value is intrinsic value, which is the inherent worth of an option.",investopedia,1,51.48,11,13.6,11.43,12.3,8.09,13.16666667,11.95
1913 Federal Reserve Act,The 1913 Federal Reserve Act is legislation in the United States that created the Federal Reserve System. Congress passed the Federal Reserve Act to establish economic stability in the U.S. by introducing a central bank to oversee monetary policy.,investopedia,1,6.51,22,0,15.15,24.4,12.86,30.5,24.83
FAANG Stocks,"In finance, “FAANG” is an acronym that refers to the stocks of five prominent American technology companies: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Alphabet (GOOG) (formerly known as Google).",investopedia,1,39,15.8,0,13.41,21.8,14.6,22,19.05
Face Value,"Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, typically in $1,000 denominations. The face value for bonds is often referred to as ""par value"" or simply ""par.""",investopedia,1,62.17,8.9,11.2,6.96,8.2,8.56,10.75,11.57
Facility,"A facility is a formal financial assistance program offered by a lending institution to help a company that requires operating capital. Types of facilities include overdraft services, deferred payment plans, lines of credit (LOC), revolving credit, term loans, letters of credit, and swingline loans. A facility is essentially another name for a loan taken out by a company.",investopedia,1,34.97,13.2,15,13.34,14,11.4,14,13.24
Factor Investing,"Factor investing is a strategy that chooses securities on attributes that are associated with higher returns. There are two main types of factors that have driven returns of stocks, bonds, and other factors: macroeconomic factors and style factors. The former captures broad risks across asset classes while the latter aims to explain returns and risks within asset classes.",investopedia,1,51.89,10.8,10.5,14.1,14.2,11.13,11.33333333,11.17
Factor Market,"Factor market is a term economists use for all of the resources that businesses use to purchase, rent, or hire what they need in order to produce goods or services. Those needs are the factors of production, which include raw materials, land, labor, and capital.",investopedia,1,57.1,10.9,0,10.1,12.6,9.31,13.75,12.56
Factors of Production,"Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital.",investopedia,1,58.79,8.2,0,12.22,10.4,9.31,7.25,8.2
FactSet,"FactSet Research Systems provides computer-based financial data and analysis for financial professionals, including investment managers, hedge funds, and investment bankers. It consolidates data on global markets, public and private companies, and equity and fixed-income portfolios.",investopedia,1,11.41,16,0,22.21,20.8,15.33,15.25,18.43
Facultative Reinsurance,"Facultative reinsurance is coverage purchased by a primary insurer to cover a single risk—or a block of risks—held in the primary insurer's book of business. Facultative reinsurance is one of two types of reinsurance (the other type of reinsurance is called treaty reinsurance). Facultative reinsurance is considered to be more of a one-time transactional deal, while treaty reinsurance is typically part of a long-term arrangement of coverage between two parties.",investopedia,1,27.49,18.1,0,15.56,22.9,9.43,18.33333333,19.71
Fail,"In trading terms, a fail, or failure to deliver (FTD), occurs if a seller does not deliver securities or a buyer does not pay owed funds by the settlement date. Through a stock exchange, this occurs if a stockbroker does not deliver or receive securities within a specified time after a security sale or a security purchase. When a seller cannot deliver the contracted securities, this is called a short fail. If a buyer is unable to pay for the securities, this is called a long fail.",investopedia,1,49.35,11.8,13.8,8.53,11.1,8.17,14.375,11.48
Fair Credit Billing Act (FCBA),The Fair Credit Billing Act is a 1974 federal law designed to protect consumers from unfair credit billing practices.,investopedia,1,60.65,9.5,0,12.65,12.6,10.4,10.5,9.71
Fair Credit Reporting Act (FCRA),"The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection of consumers' credit information and access to their credit reports. It was passed in 1970 to address the fairness, accuracy, and privacy of the personal information contained in the files of the credit reporting agencies.",investopedia,1,38.15,14,0,12.71,15.6,10.97,17.25,16.33
Fair Debt Collection Practices Act (FDCPA),"The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity. The law restricts the ways that collectors can contact debtors, as well as the time of day and number of times that contact can be made. If the FDCPA is violated, the debtor can sue the debt collection company as well as the individual debt collector for damages and attorney fees.",investopedia,1,43.36,14.1,16.3,9.93,14.7,9.96,19.16666667,15.9
Fair Labor Standards Act,"The Fair Labor Standards Act (FLSA) is a U.S. law that is intended to protect workers against certain unfair pay practices. As such, the FLSA sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay, and limitations on child labor. The FLSA—which was passed in 1938 and has seen numerous changes over the years—is one of the most important laws for employers to understand, as it sets out a wide array of regulations for dealing with employees, whether salaried or paid by the hour.",investopedia,1,49.49,13.8,16.3,12.66,18.1,10.91,20.33333333,17.78
Fair Market Value (FMV),"In its simplest sense, fair market value (FMV) is the price that an asset would sell for on the open market. Fair market value has come to represent the price of an asset under the following usual set of conditions: prospective buyers and sellers are reasonably knowledgeable about the asset, behaving in their own best interest, free of undue pressure to trade, and given a reasonable time period for completing the transaction. Given these conditions, an asset's fair market value should represent an accurate valuation or assessment of its worth. The term is commonly used in tax law and the real estate market.",investopedia,1,45.29,13.4,14.9,11.26,15,8.75,16.75,15.76
Fair Value,"Fair value is a term with several meanings in the financial world. In investing, it refers to an asset's sale price agreed upon by a willing buyer and seller, assuming both parties are knowledgeable and enter the transaction freely. For example, securities have a fair value that's determined by a market where they are traded. In accounting, fair value represents the estimated worth of various assets and liabilities that must be listed on a company's books.",investopedia,1,52.19,10.7,14.2,11.26,11.9,9.98,13.25,14.97
Fallen Angel,"A fallen angel, in the investing world, is a bond that was initially given an investment-grade rating but has since been reduced to junk bond status. The downgrade is caused by a deterioration in the financial condition of the issuer.",investopedia,1,51.18,11.1,0,10.27,11.6,10.16,13,14
Falling Knife,"A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like, ""don't try to catch a falling knife,"" which can be translated to mean, ""wait for the price to bottom out before buying it."" A falling knife can quickly rebound - in what's known as a whipsaw—or the security may lose all of its value, as in the case of a bankruptcy.",investopedia,1,57.78,14.8,0,6.8,17.7,7.8,15,18
Fama and French Three Factor Model,"The Fama and French Three-Factor Model (or the Fama French Model for short) is an asset pricing model developed in 1992 that expands on the capital asset pricing model (CAPM) by adding size risk and value risk factors to the market risk factor in CAPM. This model considers the fact that value and small-cap stocks outperform markets on a regular basis. By including these two additional factors, the model adjusts for this outperforming tendency, which is thought to make it a better tool for evaluating manager performance.",investopedia,1,42.04,14.6,15,11.85,16.9,9.61,18.83333333,16.2
Family and Medical Leave Act (FMLA),"The Family and Medical Leave Act (FMLA) is a labor law requiring employers of a certain size to provide employees unpaid time off for serious family health issues or situations. Qualified reasons may include adoption, pregnancy, foster care placement, family or personal illness, or military leave. It also provides for the continuation of health insurance coverage and job protection while the employee is on leave. The FMLA is intended to provide families with the time and resources to deal with family emergencies, while also guiding employers.",investopedia,1,32.73,14,16.8,13.23,14.7,10.58,16.5,16.97
Family Limited Partnership (FLP),"A Family Limited Partnership (FLP) is a type of arrangement in which family members pool money to run a business project. Each family member buys units or shares of the business and can profit in proportion to the number of shares they own, as outlined in the partnership operating agreement.",investopedia,1,46.1,13,0,10.62,14,9.61,17,14
Family Offices,"Family offices are private wealth management advisory firms that serve ultra-high-net-worth (UHNW) investors. They are different from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family. For example, many family offices offer budgeting, insurance, charitable giving, family-owned business, wealth transfer, and tax services.",investopedia,1,17.64,15.7,17.9,18.51,18.6,11.3,16.5,16.69
FANG Stocks,"In finance, the acronym ""FANG"" refers to the stocks of four prominent American technology companies: Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG). In 2017, the company Apple (AAPL) was also added, causing the acronym to be rewritten as ""FAANG.""",investopedia,1,50.67,11.3,0,11.31,14.7,13.13,13.25,12.1
Farmers Home Administration (FmHA),"The Farmers Home Administration (FmHA) is a former U.S. Department of Agriculture agency, created to finance and insure loans for rural families and farmers. The FmHA provided credit and technical assistance through housing, utility, business, and community development programs. During the height of its activity, the agency operated at least 1,900 county and district loan offices nationwide.",investopedia,1,31.58,12.4,13.8,15.3,13.7,12.93,10.625,15.54
Fast Fashion,Fast fashion is the term used to describe clothing designs that move quickly from the catwalk to stores to take advantage of trends. The collections are often based on styles presented at Fashion Week runway shows or worn by celebrities. Fast fashion allows mainstream consumers to purchase the hot new look or the next big thing at an affordable price.,investopedia,1,68.1,8.7,9.7,10.85,11.6,9.1,11.33333333,10.67
Fast-Moving Consumer Goods (FMCG),Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods.,investopedia,1,61.33,7.2,0,14.3,11.1,8.08,5,6
FDIC Insured Account,"An FDIC insured account is a bank or thrift account covered by the Federal Deposit Insurance Corporation (FDIC), an independent federal agency responsible for safeguarding customer deposits in the event of bank failures. The maximum insurable amount in a qualified account is $250,000 per depositor, per FDIC-insured bank and per ownership category.",investopedia,1,28.17,15.8,0,15.61,18.8,11.91,19.5,19.63
Fear and Greed Index,"The fear and greed index was developed by CNNMoney to measure two of the primary emotions that influence how much investors are willing to pay for stocks. The fear and greed index is measured on a daily, weekly, monthly, and yearly basis. In theory, the index can be used to gauge whether the stock market is fairly priced. This is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.",investopedia,1,67.28,9,10.7,8.53,10.4,9.61,12.125,11.69
Fed Balance Sheet,"The Fed balance sheet is a financial statement published once a week that breaks down the assets and liabilities held by the Federal Reserve (Fed). The report, formally known as the ""Factors Affecting Reserve Balances,"" essentially outlines the factors that affect both the supply and the absorption of Federal Reserve funds, and helps to shed light on the means the central bank uses to inject cash into the economy.",investopedia,1,36.46,16.7,0,12.14,19.8,10.84,21.75,18.44
Federal Agencies,"Federal agencies are special government organizations set up for a specific purpose such as, the management of resources, financial oversight of industries, or national security issues. These organizations are typically created by legislative action, but may initially be set up by presidential order as well. The directors of these agencies are typically selected by presidential appointment.",investopedia,1,18.65,15.3,17.9,17,16.4,11.05,16,18.91
Federal Communications Commission (FCC),"The term Federal Communications Commission (FCC) refers to an independent U.S. government agency that oversees all interstate and international communications. The FCC maintains standards and consistency among types of media and methods of communication while protecting the interests of consumers and businesses. It allocates cellular and wireless access, regulates media company mergers and acquisitions (M&A), protects intellectual property rights, and regulates standards of content and distribution for all media companies operating in the United States. The agency is accountable to U.S. Congress and its actions are monitored closely by investors.",investopedia,1,19.37,15,16.2,17.8,17.1,12.42,14.2,16.98
Federal Deposit Insurance Corporation (FDIC),"The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. As of 2020, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm. It is critical for consumers to confirm if their institution is FDIC insured.",investopedia,1,50.67,11.3,14.6,11.78,13.1,11.78,14.25,15.03
Federal Direct Loan Program,The Federal Direct Loan Program provides low-interest student loans to postsecondary students (undergraduates and graduate students) and to their parents. The William D. Ford Federal Direct Loan Program is issued and managed by the U.S. Department of Education and is the only government-backed student loan program in the United States.,investopedia,1,41.87,10.5,11.7,14.2,11.9,10.89,7.5,10.6
Federal Discount Rate,"The federal discount rate is the interest rate set by the Federal Reserve (Fed) on loans extended by the central bank to commercial banks or other depository institutions. Adjusting the discount rate allows central banks such as the Fed to reduce liquidity problems and the pressures of reserve requirements, control the supply of money in the economy and basically assure stability in the financial markets.",investopedia,1,21.57,18.3,0,13.65,19.8,11.56,23.25,21
Federal Funds,"Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market participants with insufficient cash on hand to meet their lending and reserve needs. The loans are unsecured and are made at a relatively low interest rate, called the federal funds rate or overnight rate, as that is the period for which most such loans are made.",investopedia,1,39.84,17.5,0,11.79,22,9.99,26.25,21.37
Federal Home Loan Bank System (FHLB),The Federal Home Loan Bank (FHLB) System is a consortium of 11 regional banks across the U.S. that was created by the federal government to keep a reliable stream of cash available to other banks for lending to individuals.,investopedia,1,31.89,18.5,0,10.11,20.4,11.24,27.5,21.75
Federal Housing Administration (FHA),"The Federal Housing Administration (FHA) is a U.S. agency offering mortgage insurance to FHA-approved lenders that meet specific qualifications. Mortgage insurance protects lenders against losses from mortgage defaults. If a borrower defaults on a loan, the FHA pays the lender a specified claim amount.",investopedia,1,48.09,10.2,13,15.48,13.9,12.26,10.33333333,13.15
Federal Housing Administration Loan,A Federal Housing Administration (FHA) loan is a mortgage that is insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans.,investopedia,1,31.21,14.6,0,15.32,17.4,11.3,15.5,14.42
Federal Income,"The federal income tax is the tax levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer's taxable income, such as employment earnings or capital gains.",investopedia,1,37.64,14.2,0,12.6,15.9,10.88,17.5,16.4
Federal Insurance Contributions Act (FICA),"The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates a payroll tax on the paychecks of employees, as well as contributions from employers, to fund the Social Security and Medicare programs. For self-employed persons, there is an equivalent law called the Self-Employed Contributions Act (SECA).",investopedia,1,38.66,13.8,0,14.34,17.3,11.74,17.5,15.43
Federal Open Market Committee (FOMC),The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy specifically by directing open market operations (OMO). The committee is made up of twelve members: the seven members of the Board of Governors; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents on a rotating basis.,investopedia,1,28.51,17.7,0,12.37,20,10.2,25.5,21.25
Federal Open Market Committee Meeting (FOMC Meeting),The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy specifically by directing open market operations (OMO). The committee is made up of twelve members: the seven members of the Board of Governors; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents on a rotating basis.,investopedia,1,28.51,17.7,0,12.37,20,10.2,25.5,21.25
Federal Poverty Level (FPL),"The federal poverty level (FPL), or the ""poverty line"", is an economic measure used to decide whether the income level of an individual or family qualifies them for certain federal benefits and programs. The Department of Health and Human Services (HHS) updates its poverty guidelines, illustrating the set minimum amount of income that a family needs for food, clothing, transportation, shelter, and other necessities, once a year, adjusted for inflation.",investopedia,1,27.49,18.1,0,13.99,22.1,10.56,25,20.86
Federal Reserve Bank,"The Federal Reserve System (FRS), often called simply ""the Fed,"" is the central bank of the United States and arguably the most powerful financial institution in the world. It was founded to provide the country with a safe, flexible, and stable monetary and financial system.",investopedia,1,48.64,12.1,0,11.49,14,9.66,14.75,13.44
Federal Reserve Board (FRB),"The Board of Governors of the Federal Reserve System, also known as the Federal Reserve Board (FRB), is the governing body of the Federal Reserve System. The FRB was established by the Banking Act of 1935. The members are statutorily tasked with giving a “fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.”",investopedia,1,34.26,13.5,15.9,13.75,14.6,9.89,15,16.67
Federal Reserve System (FRS),"The Federal Reserve System (FRS) is the central bank of the U.S. The Fed, as it is commonly known, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C., the Board of Governors, and 12 regional Federal Reserve Banks in major cities throughout the U.S.",investopedia,1,52.49,10.6,14.1,10.56,11.9,11.05,13,13.91
Federal Trade Commission (FTC),"The Federal Trade Commission (FTC) is an independent agency of the U.S. government that aims to protect consumers and ensure a strong competitive market by enforcing consumer protection and antitrust laws. Its principal purpose is to enforce non-criminal antitrust laws in the United States, by preventing and eliminating anticompetitive business practices, including coercive monopoly.",investopedia,1,18.69,17.4,0,17.82,21.1,13.16,21,21.17
Federal Unemployment Tax Act (FUTA),The Federal Unemployment Tax Act (FUTA) is a piece of legislation that imposes a payroll tax on any business with employees. The revenue it generates is allocated to state unemployment insurance agencies and used to fund unemployment benefits for people who are out of work.,investopedia,1,40.18,13.2,0,12.13,13.9,9.66,16.75,17
Feasibility Study,"A feasibility study is an analysis that takes all of a project's relevant factors into account—including economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing the project successfully. Project managers use feasibility studies to discern the pros and cons of undertaking a project before they invest a lot of time and money into it.",investopedia,1,17.68,17.8,0,15.73,19.7,11.79,21,20.49
Fee,"A fee is a fixed price charged for a specific service. Fees are applied in a variety of ways such as costs, charges, commissions, and penalties. Fees are most commonly found in heavily transactional services and are paid in lieu of a wage or salary.",investopedia,1,73.17,6.8,11.2,7.88,7.6,11.05,8.5,11.33
Feed-In Tariff (FIT),A feed-in tariff is a policy tool designed to promote investment in renewable energy sources. This usually means promising small-scale producers of the energy—such as solar or wind energy—an above-market price for what they deliver to the grid.,investopedia,1,43.73,11.9,0,13.58,13.7,10.81,14.5,14.97
Feeder Fund,"A feeder fund is one of several sub-funds that put all of their investment capital into an overarching umbrella fund, known as a master fund, for which a single investment advisor handles all portfolio investments and trading. This two-tiered investment structure of a feeder fund and a master fund is commonly used by hedge funds as a means of assembling a larger portfolio account by pooling investment capital.",investopedia,1,36.97,16.6,0,12.31,19.5,9.5,24.5,17.72
FHA 203(k) Loan,"An FHA 203(k) loan is a type of government-insured mortgage that allows the borrower to take out one loan for two purposes – in particular, for home purchase and home renovation. An FHA 203(k) loan is wrapped around rehabilitation or repairs to a home that will become the mortgagor’s primary residence. An FHA 203(k) is effectively an FHA construction loan.",investopedia,1,41.03,15,0,11.33,17.2,10.12,20,18
Fiat Money,"Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.",investopedia,1,35.61,15,15.9,11.44,15.9,8.87,18.5,14.75
Fibonacci Extensions,Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a retracement/pullback is finished. Extension levels are also possible areas where the price may reverse.,investopedia,1,44.24,11.7,0,12.82,12.6,10.96,12.75,13.89
Fibonacci Numbers and Lines,"Fibonacci numbers are used to create technical indicators using a mathematical sequence developed by the Italian mathematician, commonly referred to as ""Fibonacci,"" in the 13th century. The sequence of numbers, starting with zero and one, is created by adding the previous two numbers. For example, the early part of the sequence is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,144, 233, 377, and so on.",investopedia,1,48.13,12.3,14.6,8.88,12.8,12.79,15.5,15.58
Fibonacci Retracement,"Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.",investopedia,1,52.56,8.5,11.5,10.07,8.6,10.51,6.333333333,9.28
FICO Score,"A FICO score is a credit score created by the Fair Isaac Corporation (FICO). Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. FICO scores take into account data in five areas to determine creditworthiness: payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts.",investopedia,1,29.01,17.5,0,14.11,21,10.48,21.75,16.98
Fidelity Bond,A fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees' fraudulent or dishonest actions. This form of insurance can protect against monetary or physical losses.,investopedia,1,44.24,11.7,0,13.58,13.3,10.53,14.25,17.13
Fiduciary,"A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests.",investopedia,1,54.05,12.1,0,10.33,14,9.24,16.25,14.12
Filing Status,Filing status is a category that defines the type of tax return form a taxpayer must use when filing his or her taxes. Filing status is closely tied to marital status.,investopedia,1,64.2,8.2,0,7.65,7.1,9.5,8.25,10.07
Fill Or Kill (FOK),Fill or kill (FOK) is a conditional type of time-in-force order used in securities trading that instructs a brokerage to execute a transaction immediately and completely or not at all. This type of order is most often used by active traders and is usually for a large quantity of stock. The order must be filled in its entirety or else canceled (killed).,investopedia,1,58.92,10.2,14.1,9.4,11.2,9.5,14,14.73
Financial Account,"In macroeconomics, a financial account is a component of a country’s balance of payments that covers claims on or liabilities to nonresidents, specifically with regard to financial assets. Financial account components include direct investment, portfolio investment and reserve assets broken down by sector.",investopedia,1,15.81,16.4,0,17.93,18.5,11.68,16.75,16.97
Financial Accounting,"Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement, that record the company's operating performance over a specified period.",investopedia,1,16.15,18.3,0,18.4,22.5,11.26,25.75,24
Financial Accounting Standards Board (FASB),"The Financial Accounting Standards Board (FASB) is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP). The FASB was formed in 1973 to succeed the Accounting Principles Board and carry on its mission. It is based in Norwalk, Conn.",investopedia,1,18.35,15.4,17.9,18.04,17.5,10.95,16.16666667,16.72
Financial Advisor,"A financial advisor provides financial advice or guidance to customers for compensation. Financial advisors (sometimes spelled as advisers) can provide many different services, such as investment management, tax planning, and estate planning. Increasingly, financial advisors are acting as a ""one-stop-shop"" by providing everything from portfolio management to insurance products.",investopedia,1,12.63,15.5,17.5,20.18,18.7,11.53,14.5,15.5
Financial Analysis,"Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.",investopedia,1,16.32,16.2,0,19.2,19.8,13.33,18.5,21.73
Financial Asset,"A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form. Rather, their value reflects factors of supply and demand in the marketplace in which they trade, as well as the degree of risk they carry.",investopedia,1,50.87,11.2,14.6,11.49,12.9,10.1,14.125,14.05
Finance Charge,"A finance charge is a fee charged for the use of credit or the extension of existing credit. It may be a flat fee or a percentage of borrowings, with percentage-based finance charges being the most common. A finance charge is often an aggregated cost, including the cost of carrying the debt along with any related transaction fees, account maintenance fees, or late fees charged by the lender.",investopedia,1,56.89,11,14.1,10.22,12.6,9.41,15,14.96
Financial Crisis,"In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages. A financial crisis is often associated with a panic or a bank run during which investors sell off assets or withdraw money from savings accounts because they fear that the value of those assets will drop if they remain in a financial institution.",investopedia,1,35.95,16.9,0,12.95,20.5,9.88,22.5,18
Financial Distress,"Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns. For individuals, financial distress can arise from poor budgeting, overspending, too high of a debt load, lawsuit, or loss of employment.",investopedia,1,39.97,13.3,16.3,13.29,15.2,10.34,16.66666667,16.73
Financial Economics,"Financial economics is a branch of economics that analyzes the use and distribution of resources in markets. Financial decisions must often take into account future events, whether those be related to individual stocks, portfolios, or the market as a whole.",investopedia,1,34.26,13.5,0,14.33,14.9,10.16,15,16
Financial Engineering,"Financial engineering is the use of mathematical techniques to solve financial problems. Financial engineering uses tools and knowledge from the fields of computer science, statistics, economics, and applied mathematics to address current financial issues as well as to devise new and innovative financial products.",investopedia,1,15.31,16.6,0,17.93,18.7,12.26,17.5,16.07
Financial Exposure,"Financial exposure is the amount an investor stands to lose in investment should the investment fail. For example, the financial exposure involved in purchasing a car would be the initial investment amount minus the insured portion. Knowing and understanding financial exposure, which is an alternative name for risk, is a crucial part of the investment process.",investopedia,1,44.03,11.8,15.5,14.1,13.9,9.64,14,12.48
Financial Guarantee,The term financial guarantee refers to an agreement that guarantees a debt will be repaid to a lender by another party in case the borrower defaults. It can take the form of a contract wherein a third party agrees to back a second party's debt for its payments to a debt holder.,investopedia,1,62.01,11.1,0,8.01,12.2,9.48,15.5,13.48
Financial Health,"Financial health is a term used to describe the state of one's personal monetary affairs. There are many dimensions to financial health, including the amount of savings you have, how much you’re putting away for retirement, and how much of your income you are spending on fixed or non-discretionary expenses.",investopedia,1,54.56,11.9,0,12.25,15.5,9.3,17,16.4
Financial Inclusion,"Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size. Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. It is also called inclusive finance.",investopedia,1,34.97,13.2,16.3,16.01,15.6,10.31,15,15.31
"Financial Independence, Retire Early (FIRE)","Financial Independence, Retire Early (FIRE) is a movement dedicated to a program of extreme savings and investment that allows proponents to retire far earlier than traditional budgets and retirement plans would allow.",investopedia,1,13.62,19.3,0,16.49,22.1,12.63,24,22.8
Financial Industry Regulatory Authority (FINRA),"The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States. Its stated mission is ""to safeguard the investing public against fraud and bad practices."" It is considered a self-regulatory organization.",investopedia,1,13.24,15.3,15.5,18.56,16.8,12.48,12.5,15.64
Financial Information Exchange (FIX),"The Financial Information eXchange (FIX) is a vendor-neutral electronic communications protocol for the international real-time exchange of securities transaction information. The protocol is used by the FIX community, which includes nearly 300 member firms including all major investment banks.",investopedia,1,9.38,16.8,0,19.9,19.4,11.49,17.25,19.08
Financial Institution (FI),"A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Virtually everyone living in a developed economy has an ongoing or at least periodic need for the services of financial institutions.",investopedia,1,13.28,17.4,20.3,17.87,19.7,11.63,21,20.16
Financial Instrument,"Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world's investors. These assets can be cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one's ownership of an entity.",investopedia,1,49.15,11.9,15.9,11.43,13.5,9.51,16,14.25
Financial Literacy,"Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be, because education is the key to success when it comes to money.",investopedia,1,25.8,14.6,17.5,13.58,14.3,9.63,16.33333333,17.33
Financial Market,"Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies.",investopedia,1,27.32,14,0,16.71,16.3,11.81,13.25,14.97
Financial Modeling,Financial modeling is the process of creating a summary of a company's expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision.,investopedia,1,35.95,16.9,0,9.35,17.5,11.69,25.5,23.14
Financial Performance,Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm's overall financial health over a given period.,investopedia,1,50.16,11.5,0,9.4,11.1,9.19,14.5,14.11
Financial Plan,"A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan may be created independently or with the help of a certified financial planner.",investopedia,1,42.72,12.3,0,12.47,13.3,10.16,15,16
Financial Planner,"A financial planner is a qualified investment professional who helps individuals and corporations meet their long-term financial objectives. Financial planners do their work by consulting with clients to analyze their goals, risk tolerance, and life or corporate stages, then identify a suitable class of investments for them. From there they may set up a program to help the client meet those goals by distributing their available savings into a diversified collection of investments designed to grow or provide income, as desired.",investopedia,1,35.61,15,17.5,14.8,18.4,10.82,19.83333333,18.7
Financial Risk,"Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk.",investopedia,1,39.84,11.3,0,14.14,12.5,11.43,10.25,12.7
Financial Risk Manager (FRM),Financial Risk Manager (FRM) is a professional designation issued by the Global Association of Risk Professionals (GARP).,investopedia,1,11.92,15.8,0,16.53,16.2,13.77,14.5,18.56
Financial Sector,"The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. This sector comprises a broad range of industries including banks, investment companies, insurance companies, and real estate firms.",investopedia,1,33.24,13.8,0,15.84,16.5,12.2,16.5,17.92
Financial Statement Analysis,Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization as well as to evaluate financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances.,investopedia,1,21.09,14.4,16.7,16.64,15,10.89,13.83333333,17.95
Financial Statements,"Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:",investopedia,1,23.73,13.4,15.5,18.2,15.7,10.86,11.5,14.26
Financial Structure,Financial structure refers to the mix of debt and equity that a company uses to finance its operations. This composition directly affects the risk and value of the associated business. The financial managers of the business have the responsibility of deciding the best mixture of debt and equity for optimizing the financial structure.,investopedia,1,36.59,12.6,15,13.28,12.7,9.88,13.16666667,13.87
Financial System,"A financial system is a set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds. Financial systems exist on firm, regional, and global levels. Borrowers, lenders, and investors exchange current funds to finance projects, either for consumption or productive investments, and to pursue a return on their financial assets. The financial system also includes sets of rules and practices that borrowers and lenders use to decide which projects get financed, who finances projects, and terms of financial deals.",investopedia,1,49.86,11.6,13.8,14.27,15.7,11.01,14.125,12.76
Financial Technology (Fintech),"Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of ""financial technology"".",investopedia,1,21.06,18.5,0,16.6,23.2,11.02,25,21.08
Financial Times Stock Exchange Group (FTSE),"The Financial Times Stock Exchange (FTSE), now known as FTSE Russell Group, is a British financial organization that specializes in providing index offerings for the global financial markets. The London Stock Exchange Group (LSEG) owns the FTSE Russell Group. In addition to the FTSE Russell Group, the LSEG also owns the Borsa Italiana, Millennium IT, and other financial brands.",investopedia,1,51.48,11,13.6,13.58,14.5,9.97,13.16666667,12.63
Financing,"Financing is the process of providing funds for business activities, making purchases, or investing. Financial institutions, such as banks, are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals. The use of financing is vital in any economic system, as it allows companies to purchase products out of their immediate reach.",investopedia,1,43.02,12.2,15.5,13.81,14.5,10.77,14.5,15.34
Finder's Fee,"A finder's fee (also known as ""referral income"" or ""referral fee"") is a commission paid to an intermediary or the facilitator of a transaction. The finder's fee is rewarded because the intermediary discovered the deal and brought it to the attention of interested parties. The presumption is that without the intermediary, the parties never would have found the deal, and the facilitator thus warrants compensation.",investopedia,1,32.53,14.1,15.9,12.88,14.8,8.11,15.83333333,14.22
FINRA BrokerCheck,"FINRA BrokerCheck is a free, online tool that helps individuals research brokers, brokerage firms, investment adviser firms and advisers. By visiting BrokerCheck, investors can see a variety of information that may be helpful in the selection and vetting of an individual financial advice provider or broker/brokerage firm, such as descriptions, services offered, credentials, sanctions, registrations and more. BrokerCheck is offered and administered by the Financial Industry Regulatory Authority (FINRA), the largest non-governmental securities firm regulator in the United States. The data and information available in BrokerCheck comes mainly from two sources: the Central Registration Depository (CRD), the securities industry online registration and licensing database, provides the broker and brokerage information, while information about investment adviser firms and representatives comes from the Securities and Exchange Commission's Investment Adviser Registration Depository (IARD) database.",investopedia,1,-4.13,22,21.6,21.01,26.5,11.77,19.5,21.06
Fire Insurance,"The term fire insurance refers to a form of property insurance that covers damage and losses caused by fire. Most policies come with some form of fire protection, but homeowners may be able to purchase additional coverage in case their property is lost or damaged because of fire. Purchasing additional fire coverage helps to cover the cost of replacement, repair, or reconstruction of property above the limit set by the property insurance policy. Fire insurance policies typically contain general exclusions such as war, nuclear risks, and similar perils.",investopedia,1,33.28,15.9,18.9,13.88,18.6,9.76,16.75,18.08
"First In, First Out (FIFO)","First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest costs are included in the income statement's cost of goods sold (COGS). The remaining inventory assets are matched to the assets that are most recently purchased or produced.",investopedia,1,57.61,10.7,12.5,11.43,13.8,9.99,13.66666667,13.65
First Mortgage,"A first mortgage is a primary lien on a property. As a primary loan that pays for the property, the loan has priority over all other liens or claims on a property in the event of default. A first mortgage is not the mortgage on a borrower’s first home; it is the original mortgage taken on any one property. It is also called First Lien. If the home is refinanced, the refinanced mortgage assumes the first mortgage position.",investopedia,1,64.1,8.2,12,7.71,7.4,7.65,10.2,9.83
First Mover,A first mover is a service or product that gains a competitive advantage by being the first to market with a product or service. Being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the arena. Other advantages include additional time to perfect its product or service and setting the market price for the new item.,investopedia,1,41.7,12.7,13.6,12.18,13.2,9.19,13.83333333,14.11
First Notice of Loss (FNOL),"The first notice of loss (FONL) is the initial report made to an insurance provider following loss, theft, or damage of an insured asset.",investopedia,1,64.04,10.3,0,9.58,13.1,9.43,14,11.27
First World,"As defined during the Cold War, the term ""first world"" referred to a country that was aligned with the United States and other western nations in opposition to the former-Soviet Union and its allies. Since the collapse of the Soviet Union in 1991, this use of the term has largely evolved.",investopedia,1,62.51,10.9,0,9.75,13.7,8.93,14.25,11.77
Fiscal Deficit,A fiscal deficit is a shortfall in a government's income compared with its spending. The government that has a fiscal deficit is spending beyond its means.,investopedia,1,66.74,7.2,0,10.14,8.6,8.53,6.5,6.74
Fiscal Multiplier,"The fiscal multiplier measures the effect that increases in fiscal spending will have on a nation's economic output, or gross domestic product (GDP). In general, economists define fiscal multipliers as the ratio of a change in output to a change in tax revenue or government spending. Fiscal multipliers are important because they can help guide a government's policies during an economic crisis and help set the stage for economic recovery.",investopedia,1,39.37,13.6,15.5,13.12,15.2,9.75,16.33333333,13.89
Fiscal Year (FY),"A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting. A fiscal year is most commonly used for accounting purposes to prepare financial statements. Although a fiscal year can start on January 1st and end on December 31st, not all fiscal years correspond with the calendar year. For example, universities often begin and end their fiscal years according to the school year.",investopedia,1,45.46,11.2,14.9,12.12,11.8,8.84,12.875,14.46
Fiscal Year-End,"The term ""fiscal year-end"" refers to the completion of any one-year or 12-month accounting period other than a typical calendar year. A fiscal year is often the period used for calculating annual financial statements. A company's fiscal year may differ from the calendar year, and may not close on December 31 due to the nature of a company's needs.",investopedia,1,51.48,11,15,10.27,11.6,8.9,14.16666667,13.3
Fisher Effect,"The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation.",investopedia,1,33.54,13.7,17.1,14.74,15.3,9.5,16.33333333,14.73
Fisher Transform Indicator,"The Fisher Transform is a technical indicator created by John F. Ehlers that converts prices into a Gaussian normal distribution. The indicator highlights when prices have moved to an extreme, based on recent prices. This may help in spotting turning points in the price of an asset. It also helps show the trend and isolate the price waves within a trend.",investopedia,1,67.55,6.9,8.8,9.38,7.5,11.23,6.1,7.5
Fitch Ratings,"Fitch Ratings is an international credit rating agency based out of New York City and London. Investors use the company's ratings as a guide as to which investments will not default and subsequently yield a solid return. Fitch bases the ratings on factors, such as what kind of debt a company holds and how sensitive it is to systemic changes like interest rates.",investopedia,1,58.62,10.3,11.9,9.98,11.6,10.94,12.83333333,12.21
Five Cs of Credit,"The five Cs of credit is a system used by lenders to gauge the creditworthiness of potential borrowers. The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender.",investopedia,1,46.61,12.8,0,11.9,14.7,10.97,17.25,17.96
Five-Year Rule,"Generally speaking, the 5-year rule concerns the withdrawal of funds from an Individual Retirement Account (IRA). However, several different types of 5-year rules actually exist. Two apply specifically to Roth IRAs: a waiting period before funds can be withdrawn. Another relates to the distribution schedule of funds from inherited IRAs, either Roth or traditional ones.",investopedia,1,32.09,12.2,13.8,14.32,12.6,11.79,10.375,12.79
Fixed Annuity,"A fixed annuity is a type of insurance contract that promises to pay the buyer a specific, guaranteed interest rate on their contributions to the account. By contrast, a variable annuity pays interest that can fluctuate based on the performance of an investment portfolio chosen by the account's owner. Fixed annuities are often used in retirement planning.",investopedia,1,43.73,11.9,15.5,12.76,12.9,10.95,14.16666667,16.02
Fixed Asset,"A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E). They are also referred to as capital assets.",investopedia,1,64.2,8.2,11.7,9.16,8.8,9.5,9,10.72
Fixed Asset Turnover Ratio,"The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating performance. This efficiency ratio compares net sales (income statement) to fixed assets (balance sheet) and measures a company's ability to generate net sales from its fixed-asset investments, namely property, plant, and equipment (PP&E).",investopedia,1,38.66,13.8,0,15.15,18.5,12.39,17,17.1
Fixed Capital,"Fixed capital includes the assets and capital investments, such as property, plant, and equipment (PP&E), that are needed to start up and conduct business, even at a minimal stage. These assets are considered fixed in that they are not consumed or destroyed during the actual production of a good or service but have a reusable value. Fixed-capital investments are typically depreciated on the company's accounting statements over a long period of time—up to 20 years or more.",investopedia,1,45.39,13.3,16.3,12.19,15.8,10.04,18.16666667,16.51
Fixed-Charge Coverage Ratio,"The fixed-charge coverage ratio (FCCR) measures a firm's ability to cover its fixed charges, such as debt payments, interest expense, and equipment lease expense. It shows how well a company's earnings can cover its fixed expenses. Banks will often look at this ratio when evaluating whether to lend money to a business.",investopedia,1,62.38,8.9,11.2,11.31,11.7,10.87,10.66666667,11.54
Fixed Cost,"A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.",investopedia,1,66.57,9.3,0,8.36,10.5,8.37,13.25,12.32
Fixed Exchange Rate,A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.,investopedia,1,63.53,10.5,0,9.87,13.1,8.72,15.25,12.25
Fixed Income,"Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until its maturity date. At maturity, investors are repaid the principal amount they had invested. Government and corporate bonds are the most common types of fixed-income products. Unlike equities that may pay no cash flows to investors, or variable-income securities, where can payments change based on some underlying measure—such as short-term interest rates—the payments of a fixed-income security are known in advance.",investopedia,1,42.72,12.3,15.6,15.72,16,9.96,14.75,13.5
Fixed Income Clearing Corporation (FICC),"The Fixed Income Clearing Corporation (FICC) is a regulatory agency that deals with the confirmation, settlement, and delivery of fixed-income assets in the U.S. The FICC ensures the systematic and efficient settlement and clearing of U.S. government securities and mortgage-backed security (MBS) transactions in the market.",investopedia,1,22.75,15.8,0,16.54,18.7,11.99,18.5,17.03
Fixed-Income Security,"A fixed-income security is an investment that provides a return in the form of fixed periodic interest payments and the eventual return of principal at maturity. Unlike variable-income securities, where payments change based on some underlying measure—such as short-term interest rates—the payments of a fixed-income security are known in advance.",investopedia,1,20.72,16.6,0,16.77,19.1,10.25,20,17.2
Fixed Interest Rate,"A fixed interest rate is an unchanging rate charged on a liability, such as a loan or mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period. Mortgages can have multiple interest-rate options, including one that combines a fixed rate for some portion of the term and an adjustable rate for the balance. These are referred to as “hybrids.”",investopedia,1,69.11,8.3,11.2,8.53,9.5,8.94,11.5,10.76
Fixed-Rate Mortgage,"The term ""fixed-rate mortgage"" refers to a home loan that has a fixed interest rate for the entire term of the loan. This means the mortgage carries a constant interest rate from beginning to end. Terms can range anywhere between 10 and 30 years for fixed-rate mortgages, which are popular products for consumers who want to know how much they'll pay every month.",investopedia,1,75.54,7.9,9.7,9.57,11.6,8.69,11.83333333,9.67
Fixed-Rate Payment,"A fixed-rate payment is an installment loan with an interest rate that cannot be changed during the life of the loan. The payment amount also will remain the same, though the proportions that go toward paying off the interest and paying off the principal will vary. A fixed-rate payment is sometimes referred to as a “vanilla wafer” payment, presumably because it is very predictable and contains no surprises.",investopedia,1,45.43,15.4,0,12.14,19.4,8.81,20.5,17.13
Flat,"Flat, in the securities market, is a price that is neither rising nor declining. Under fixed income terminology, a bond that is trading without accrued interest is said to be flat. In forex, flat refers to the condition of being neither long nor short in a particular currency, and is also referred to as ""being square.""",investopedia,1,52.49,10.6,11.9,9.11,10.2,8.51,11.66666667,12.48
Flat Tax,"A flat tax system applies the same tax rate to every taxpayer regardless of income bracket. Typically, a flat tax applies the same tax rate to all taxpayers with no deductions or exemptions allowed, but some politicians such as Ted Cruz and Rand Paul have proposed flat tax systems that keep certain deductions in place. ",investopedia,1,59.98,11.8,0,10.68,15.4,9.82,17.5,15.49
Flat Yield Curve,The flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve flattening is often seen during transitions between normal and inverted curves. The difference between a flat yield curve and a normal yield curve is that a normal yield curve slopes upward.,investopedia,1,67.38,9,11.2,10.79,12.1,7.72,12.33333333,10.86
Flexible Manufacturing Systems (FMS),A flexible manufacturing system (FMS) is a production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured. Machines and computerized systems can be configured to manufacture a variety of parts and handle changing levels of production.,investopedia,1,31.21,14.6,0,13.93,15.6,12.67,17,17.9
Flexible Spending Account (FSA),"A flexible spending account (FSA) is a type of savings account that provides the account holder with specific tax advantages. An FSA, sometimes called a “flexible spending arrangement,” can be set up by an employer for employees. The account allows you to contribute a portion of your regular earnings; employers also can contribute to employees’ accounts. Distributions from the account must be used to reimburse the employee for qualified expenses related to medical and dental services.",investopedia,1,35.27,13.1,15.6,13.81,13.8,10.4,14.25,16.55
Flip,"A flip generally refers to a dramatic directional change in the positioning of investments, for instance from long to short.",investopedia,1,42.72,12.3,0,12.59,13.3,10.16,15,18
Float,"In financial terms, the float is money within the banking system that is briefly counted twice due to time gaps in registering a deposit or withdrawal. These time gaps are usually due to the delay in processing paper checks. A bank credits a customer’s account as soon as a check is deposited. However, it takes some time to receive a check from the payer’s bank and record it. Until the check clears the account it is drawn on, the amount it is written for ""exists"" in two different places, appearing in the accounts of both the recipient’s and payer’s banks.",investopedia,1,68.1,8.7,11.2,8.82,10.3,8.89,12,11.2
Floating Charge,"A floating charge, also known as a floating lien, is a security interest or lien over a group of non-constant assets that may change in quantity and value.",investopedia,1,51.52,13,0,8.71,14.1,9.54,18,15.49
Floating Exchange Rate,"A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies. This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.",investopedia,1,55.58,11.5,0,10.1,12.8,9.76,15.5,14.6
Floating Interest Rate,"A floating interest rate is an interest rate that moves up and down with the market or an index. It can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the loan's term.",investopedia,1,66.07,9.5,13,7.83,10.3,8.32,14,10.62
Floating Rate Fund,"A floating rate fund is a fund that invests in financial instruments that pays a variable or floating interest rate. A floating rate fund, which can be a mutual fund or an exchange-traded fund (ETF), invests in bonds and debt instruments whose interest payments fluctuate with an underlying interest rate level. Typically, a fixed-rate investment will have a stable, predictable income. However, as interest rates rise, fixed-rate investments lag behind the market since their returns remain fixed.",investopedia,1,51.89,10.8,14.2,13.4,14,9.52,13.375,12.4
Floating Rate Note (FRN),"A floating-rate note (FRN) is a debt instrument with a variable interest rate. The interest rate for an FRN is tied to a benchmark rate. Benchmarks include the U.S. Treasury note rate, the Federal Reserve funds rate—known as the Fed funds rate—the London Interbank Offered Rate (LIBOR), or the prime rate.",investopedia,1,75.4,5.9,10.1,9.44,8.5,10.77,6.875,8.26
Floating Stock,Floating stock is the number of shares available for trading of a particular stock. Low float stocks are those with a low number of shares. Floating stock is calculated by subtracting closely-held shares and restricted stock from a firm’s total outstanding shares.,investopedia,1,65.73,7.6,11.2,12.35,10.6,9.22,8,10.36
Floor Area Ratio (FAR),"The floor area ratio is the relationship between the total amount of usable floor area that a building has, or has been permitted to have, and the total area of the lot on which the building stands. A higher ratio likely would indicate a dense or urban construction. Local governments use the floor area ratio for zoning codes.",investopedia,1,68.81,8.5,10.5,9.23,10.2,8.95,11.33333333,11.17
Floor Trader (FT),"A floor trader is an exchange member who executes transactions from the floor of the exchange, exclusively for their own account. Floor traders used to use the open outcry method in the pit of a commodity or stock exchange, but now most of them use electronic trading systems and do not appear in the pit.",investopedia,1,68.94,10.5,0,9.41,14.1,8.16,16.25,14.64
Flotation,"Flotation is the process of converting a private company into a public company by issuing shares available for the public to purchase. It allows companies to obtain financing externally instead of using retained earnings to fund new projects or expansion. The term ""flotation"" is commonly used in the United Kingdom, whereas the term ""going public"" is more widely used in the United States.",investopedia,1,50.16,11.5,13,12.18,13.6,10.19,13.5,12.84
Flotation Cost,"Flotation costs are incurred by a publicly-traded company when it issues new securities and incurs expenses, such as underwriting fees, legal fees, and registration fees. Companies must consider the impact these fees will have on how much capital they can raise from a new issue. Flotation costs, expected return on equity, dividend payments, and the percentage of earnings the business expects to retain are all part of the equation to calculate a company's cost of new equity.",investopedia,1,45.39,13.3,16.3,12.48,16,10.65,18.16666667,16.51
Flow of Funds (FOF),"Flow of funds (FOF) are financial accounts that are used to track the net inflows and outflows of money to and from various sectors of a national economy. Macroeconomic data from flow of funds accounts are collected and analyzed by a country's central bank. In the United States, this data is released by the Federal Reserve Bank approximately 10 weeks after the end of each quarter.",investopedia,1,46.44,15,0,10.8,17.9,10.54,14,18.65
Flow-Through Entity,"A flow-through entity is a legal business entity that passes any income it makes straight to its owners, shareholders, or investors. As a result, only these individuals—and not the entity itself—are taxed on the revenues. Flow-through entities are a common device used to avoid double taxation, which happens with income from regular corporations.",investopedia,1,45.05,11.4,13,13.74,13.6,10.17,11.83333333,12.36
Folio Number,"In mutual funds, a folio number is a unique number identifying your account with the fund. Like a bank account number, the folio number can be used as a way to uniquely identify fund investors. A folio number also records items such as how much money each investor has placed with the fund, their transaction history, and contact details.",investopedia,1,59.94,9.8,10.5,9.57,10.8,8.9,11.5,10.59
Follow-On Offering,"A follow-on offering (FPO) is an issuance of stock shares following a company's initial public offering (IPO). There are two types of follow-on offerings: diluted and non-diluted. A diluted follow-on offering results in the company issuing new shares after the IPO, which causes the lowering of a company's earnings per share (EPS).",investopedia,1,18.7,23.6,0,13.36,30.3,11.68,13,25.42
Follow On Public Offer (FPO),A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Follow-on offerings are also known as secondary offerings.,investopedia,1,47.08,10.6,12.5,10.9,10.6,8.11,10.5,8.83
Food And Drug Administration (FDA),"The Food and Drug Administration (FDA) is a government agency established in 1906 with the passage of the Federal Food and Drugs Act. The agency is separated into divisions that oversee a majority of the organization's obligations involving food, drugs, cosmetics, animal food, dietary supplements, medical devices, biological goods, and blood products.",investopedia,1,19.71,17,0,15.38,18.9,11.91,20.5,20.4
For Sale By Owner (FSBO),"For sale by owner (FSBO) is a term that refers to a method of listing a property for sale. When a house has an FSBO listing, it means the owner is selling the property without the help of a listing agent or broker. One reason sellers choose this option is to avoid paying the real estate agent a commission on the sale.",investopedia,1,67.38,9,8.8,6.27,8.5,8.23,11.33333333,9.57
Forbearance,Forbearance is a temporary postponement of mortgage payments. It is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure. Loan owners and loan insurers may be willing to negotiate forbearance options because the losses generated by property foreclosure typically fall on them.,investopedia,1,37,12.4,15.5,13.34,12.6,10.87,13.33333333,15.38
Force Majeure,Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations.,investopedia,1,22.08,18.1,0,17.76,22.7,13.61,26,25.3
Forecasting,Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends. Businesses utilize forecasting to determine how to allocate their budgets or plan for anticipated expenses for an upcoming period of time. This is typically based on the projected demand for the goods and services offered.,investopedia,1,34.56,13.3,16.3,13.98,14,11.84,15.16666667,17.37
Foreclosure,"Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.",investopedia,1,41.53,14.8,0,11.85,16.8,11.52,19.75,17.9
Foregone Earnings,"Foregone earnings represents the difference between earnings actually achieved and the earnings that could have been achieved with the absence of fees, expenses, or lost time. Foregone earnings represents the investment capital that the investor spent on investment fees. The assumption is that if the investor had been exposed to lower fees, there would have been a better return. The concept of foregone earnings is typically used when referring to sales charges, management fees, or total expenses paid to funds.",investopedia,1,51.18,11.1,13.4,13.92,14.4,8.77,13.25,12
Foreign Account Tax Compliance Act (FATCA),The Foreign Account Tax Compliance Act (FATCA) is a tax law that compels U.S. citizens at home and abroad to file annual reports on any foreign account holdings. The FATCA was endorsed in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act to promote transparency in the global financial services sector.,investopedia,1,44.07,13.8,0,11.15,15.6,11.7,17,15.99
Foreign Aid,"The term foreign aid refers to any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan. Most people tend to think of foreign aid as capital, but it can also be food, supplies, and services such as humanitarian aid and military assistance.",investopedia,1,52.53,12.6,0,9.35,14.2,8.48,17,13.76
Foreign Corrupt Practices Act,"The Foreign Corrupt Practices Act (FCPA, the Act) is a United States law that prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals. The FCPA contains two main articles:",investopedia,1,62.17,8.9,0,12.06,12.3,11.72,10.25,10.43
Foreign Currency Convertible Bond (FCCB),"A foreign currency convertible bond (FCCB) is a type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.",investopedia,1,51.38,11,14.6,9.86,11.1,9.22,13.875,12.48
Foreign Currency Swap,"A foreign currency swap, also known as an FX swap, is an agreement to exchange currency between two foreign parties. The agreement consists of swapping principal and interest payments on a loan made in one currency for principal and interest payments of a loan of equal value in another currency. One party borrows currency from a second party as it simultaneously lends another currency to that party.",investopedia,1,40.38,13.2,15,11.67,13.3,8.04,15.5,11.31
Foreign Direct Investment (FDI),"A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company. However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies.",investopedia,1,25.49,14.7,17.1,16.36,16.7,10.6,16.16666667,16.64
Foreign Earned Income Exclusion,"The foreign earned income exclusion is intended to prevent double taxation by excluding income taxed in another country from U.S. taxation. The U.S. Internal Revenue System (IRS) will tax your income earned worldwide. However, if you are an American ex-pat, this means you are taxed twice on this income. The income you receive overseas, sees the foreign country tax and can be taxed again by the IRS.",investopedia,1,62.88,8.7,11.7,10.5,10.7,8.71,10.625,9.71
Foreign Exchange Reserves,"Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies. These reserves are used to back liabilities and influence monetary policy. It includes any foreign money held by a central bank, such as the U.S. Federal Reserve Bank.",investopedia,1,60.51,7.5,10.1,10.25,7.9,9.31,5.875,9.9
Foreign Exchange Risk,"Foreign exchange risk refers to the losses that an international financial transaction may incur due to currency fluctuations. Also known as currency risk, FX risk and exchange-rate risk, it describes the possibility that an investment’s value may decrease due to changes in the relative value of the involved currencies. Investors may experience jurisdiction risk in the form of foreign exchange risk.",investopedia,1,33.95,13.6,15,14.74,15.2,10.34,14.5,15.33
Foreign Institutional Investor (FII),"A foreign institutional investor (FII) is an investor or investment fund investing in a country outside of the one in which it is registered or headquartered. The term foreign institutional investor is probably most commonly used in India, where it refers to outside entities investing in the nation's financial markets. The term is also used officially in China.",investopedia,1,33.58,15.8,0,13.59,18.2,9.98,21,18.5
Foreign Investment,"Foreign investment involves capital flows from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets. Foreign investment denotes that foreigners have an active role in management as a part of their investment or an equity stake large enough to enable the foreign investor to influence business strategy. A modern trend leans toward globalization, where multinational firms have investments in a variety of countries.",investopedia,1,30.91,14.7,17.1,16.42,17.7,12.01,17.66666667,17.32
Foreign Portfolio Investment (FPI),"Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company's assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies.",investopedia,1,53.21,10.3,13.4,11.77,12,10.23,12.25,12.76
Foreign Tax Credit,The foreign tax credit is a non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either works in a foreign country or has investment income from a foreign source.,investopedia,1,47.12,12.7,0,10.68,13.3,8.45,14,12.1
Forensic Accounting,"Forensic accounting utilizes accounting, auditing, and investigative skills to conduct an examination into the finances of an individual or business. Forensic accounting provides an accounting analysis suitable to be used in legal proceedings. Forensic accountants are trained to look beyond the numbers and deal with the business reality of a situation. Forensic accounting is frequently used in fraud and embezzlement cases to explain the nature of a financial crime in court.",investopedia,1,36.49,12.6,14.9,15.25,14.5,10.75,13.125,14.44
Forensic Audit,"A forensic audit examines and evaluates a firm's or individual's financial records to derive evidence used in a court of law or legal proceeding. Forensic auditing is a specialization within accounting, and most large accounting firms have a forensic auditing department. Forensic audits require accounting and auditing procedures and expert knowledge about the legal framework of such an audit.",investopedia,1,34.56,13.3,15.9,15.26,15.3,11.04,14.83333333,15.34
Forex (FX),"Forex (FX) refers to the global electronic marketplace for trading international currencies and currency derivatives. It has no central physical location, yet the forex market is the largest, most liquid market in the world by trading volume, with trillions of dollars changing hands every day. Most of the trading is done through banks, brokers, and financial institutions.",investopedia,1,43.73,11.9,13.6,14.04,14.4,11.5,12.83333333,14.62
Forfaiting,Forfaiting is a means of financing that enables exporters to receive immediate cash by selling their medium and long-term receivables—the amount an importer owes the exporter—at a discount through an intermediary. The exporter eliminates risk by making the sale without recourse. It has no liability regarding the importer's possible default on the receivables.,investopedia,1,45.05,11.4,13.6,16.01,15.1,10.47,12.16666667,13.12
Forfeited Share,"A forfeited share is a share in a publicly-traded company that the owner loses (or forfeits) by neglecting to live up to any number of purchase requirements. For example, a forfeiture may occur if a shareholder fails to pay an owed allotment (call money), or if he sells or transfers his shares during a restricted period.",investopedia,1,43.06,14.2,0,9.87,15.1,10.66,19.5,17.63
Form 3,SEC Form 3: Initial Statement of Beneficial Ownership of Securities is a document filed by a company insider or major shareholder with the Securities and Exchange Commission (SEC).,investopedia,1,17.68,17.8,0,13.87,18.3,11.79,23,21.2
Form 4,"SEC Form 4: Statement of Changes in Beneficial Ownership is a document that must be filed with the Securities and Exchange Commission (SEC) whenever there is a material change in the holdings of company insiders. Insiders consist of directors and officers of the company, as well as any shareholders, owning 10% or more of the company's outstanding stock. The forms ask about the reporting person's relationship to the company and about purchases and sales of such equity shares.",investopedia,1,36.63,14.6,18.2,12.07,15.8,10.8,20,18.61
Form 144,"Form 144: Notice of Proposed Sale of Securities is a document issued by the Securities and Exchange Commission (SEC). It must be filed with the SEC by an executive officer, director, or the affiliate of a company when placing an order to sell that company's stock during any three-month period in which the sale exceeds 5,000 shares or units or has an aggregate sales price greater than $50,000. This is also known as Rule 144 of the Securities Act of 1933.",investopedia,1,52.53,12.6,15,9.06,14,9.65,17.83333333,15.24
Form 1040X,Form 1040-X is issued by the Internal Revenue Service (IRS) to taxpayers who need to amend their prior-year tax returns for any reason.,investopedia,1,56.59,11.1,0,10.28,13.2,11.64,14.5,12.68
Form 1045,"Form 1045: Application for Tentative Refund is an Internal Revenue Service (IRS) form used by individuals, estates, and trusts to apply for a quick tax refund.",investopedia,1,36.63,14.6,0,12.02,16.2,11.61,17,16.55
Form 1065,"Form 1065: U.S. Return of Partnership Income is a tax document issued by the Internal Revenue Service (IRS) used to declare the profits, losses, deductions, and credits of a business partnership. In addition to Form 1065, partnerships must also submit Schedule K-1, a document prepared for each partner.",investopedia,1,47.12,12.7,0,12.89,16.1,11.74,16,14.6
Form 1095-A,Form 1095-A is a form that is sent to Americans who obtain health insurance coverage through a Health Insurance Marketplace carrier.,investopedia,1,50.16,11.5,0,13.11,14.2,9.94,16.5,17.92
Form 1095-B,Form 1095-B is an Internal Revenue Service (IRS) form that may be sent to taxpayers who receive minimum essential health insurance coverage as defined by the Affordable Care Act (ACA).,investopedia,1,41.03,15,0,12.14,17.9,11.97,22,21.33
Form 1095-C,Form 1095-C: Employer-Provided Health Insurance Offer and Coverage is an Internal Revenue Service (IRS) tax form reporting information about an employee's health coverage offered by an Applicable Large Employer (ALE). ALEs typically have 50 or more full-time employees.,investopedia,1,26.81,14.2,0,16.48,16.8,12.47,15.5,19.18
Form 1098,Form 1098: Mortgage Interest Statement is an Internal Revenue Service (IRS) form that is used by taxpayers to report the amount of interest and related expenses paid on a mortgage during the tax year when the amount totals $600 or more. Related expenses include points paid on the purchase of the property. Points refer to prepaid interest made on a home loan to improve the rate on the mortgage offered by the lending institution.,investopedia,1,54.86,11.7,14.1,10.51,13.7,9.34,16,13.66
Form 1099-B,Form 1099-B: Proceeds from Broker and Barter Exchange is a federal tax form used by brokerages and barter exchanges to record customers' gains and losses during a tax year. Individual taxpayers will receive the form from their brokers or barter exchange already filled out.,investopedia,1,57.61,10.7,0,12.36,14.2,10.11,13,12.44
Form 1099-DIV,Form 1099-DIV: Dividends and Distributions is an Internal Revenue Service (IRS) form sent by banks and other financial institutions to investors who receive dividends and distributions from any type of investment during a calendar year. Investors can receive multiple 1099-DIVs. Each 1099-DIV form should be reported on an investor’s tax filing.,investopedia,1,37.3,12.3,14.6,15.19,14.5,10.05,12.5,13.07
Form 1099-INT,Form 1099-INT is the IRS tax form used to report interest income. The form is issued by all payers of interest income to investors at year-end. It includes a breakdown of all types of interest income and related expenses. Payers must issue a 1099-INT for any party to whom they paid at least $10 of interest during the year.,investopedia,1,73.37,6.7,10.1,7.71,7.3,8.12,7.875,7.95
Form 1099-MISC,"Form 1099-MISC: Miscellaneous Income (or Miscellaneous Information, as it's called starting in 2021) is an Internal Revenue Service (IRS) form used to report certain types of miscellaneous compensation, such as rents, prizes and awards, healthcare payments, and payments to an attorney. Before the 2020 tax year, Form 1099-MISC was also used to report non-employee compensation for independent contractors, freelancers, sole proprietors, and self-employed individuals. Starting with 2020, this non-employee pay is reported on Form 1099-NEC: Nonemployee Compensation.These forms generally report business payments—not personal ones.",investopedia,1,26.14,16.6,17.9,18.98,23.3,11.42,20.66666667,17.87
Form 1099-R,"Form 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans is an Internal Revenue System (IRS) tax form that is used for reporting distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts, or pensions. It deals specifically with passive income and retirement plans.",investopedia,1,1.44,24,0,20.26,31.9,13,36,23.96
Form 1099-Q,"Form 1099-Q: Payments From Qualified Education Programs is an Internal Revenue Service (IRS) tax form sent to individuals who receive distributions from a Coverdell education savings account (ESA) or a 529 plan. These distributions—including rollovers—may be taxable, and you must determine the tax liability of any distribution using other IRS information. The form is then used by taxpayers to fill out both federal and state tax returns if the distributions received are subject to tax.",investopedia,1,29.18,15.4,15.9,14.51,17.3,10.35,17.5,16.4
Form 1120S,"Form 1120-S: U.S. Income Tax Return for an S Corporation is a tax document that is used to report the income, losses, and dividends of S corporation shareholders. Essentially, Form 1120-S is an S corporation's tax return.",investopedia,1,58.99,8.1,11.9,9.09,8.3,8.51,7.5,11.41
Form 1310,Form 1310 is an Internal Revenue Service (IRS) form that should be used to claim a federal tax refund due to a recently deceased taxpayer.,investopedia,1,54.56,11.9,0,8.77,12.5,11.19,16.5,16.4
Form 13F (SEC),"The Securities and Exchange Commission's (SEC) Form 13F is a quarterly report that is required to be filed by all institutional investment managers with at least $100 million in assets under management. It discloses their equity holdings and can provide some insights into what the smart money is doing in the market. However, studies have found that 13F filings also have serious flaws and can't be taken at face value.",investopedia,1,47.83,12.4,13.6,11.38,13.8,9.98,15,14.46
Form 2106: Employee Business Expenses,"Form 2106: Employee Business Expenses is a tax form distributed by the Internal Revenue Service (IRS) used by employees to deduct ordinary and necessary expenses related to their jobs. Ordinary expenses are generally considered common and accepted in a particular line of business, while necessary expenses are those that are helpful in conducting business.",investopedia,1,27.15,16.2,0,15.03,18.6,10.53,22.5,20.43
Form 2106-EZ: Unreimbursed Employee Business Expenses,Form 2106-EZ: Unreimbursed Employee Business Expenses was a tax form issued by the Internal Revenue Service (IRS) for use by employees who wished to deduct ordinary and necessary expenses related to their jobs.,investopedia,1,29.52,17.3,0,13.7,20.5,12.93,25.5,22.9
Form 2439,"Form 2439 is an Internal Revenue Service (IRS) form that Regulated Investment Companies(RICs)–mutuals funds and exchange-traded funds–and Real Estate Investment Trusts (REITs) are required to distribute to shareholders in order to report undistributed long-term capital gains. Mutual funds are required to distribute most capital gains to shareholders, and the shareholders report these gains on Form 1099-DIV. However, if the fund company decides to retain these gains, it must pay taxes on behalf of shareholders and report these transactions on Form 2439.",investopedia,1,27.15,16.2,17.5,16.19,19.9,10.43,19.83333333,15.74
Form 2848,"Form 2848: Power of Attorney and Declaration of Representative is an Internal Revenue Service (IRS) document that authorizes an individual or organization to represent a taxpayer by appearing before the IRS—at an audit, for example.",investopedia,1,2.11,21.7,0,15.62,23,12.59,29.5,27.71
Form 4506: Request for Copy of Tax Return,"Form 4506: Request for Copy of Tax Return is filed by taxpayers to request exact copies of one or more previously filed tax returns and tax information from the Internal Revenue Service (IRS). Copies may be needed to complete a current-year tax return, amend a prior-year tax return, file a claim for refund or abatement, apply for government benefits, apply for federal student aid, verify income, or defend an IRS audit.",investopedia,1,35.44,17.1,0,10.98,19.7,10.96,22.75,18.14
Form 4562,Form 4562: Depreciation and Amortization is an Internal Revenue Service (IRS) form used to claim deductions for the depreciation or amortization of an asset or piece of property for tax filing purposes.,investopedia,1,22.08,18.1,0,13.59,19.7,11.14,24,20.3
Form 4684,"Form 4684 is an Internal Revenue Service (IRS) form for reporting gains or losses from casualties and thefts which may be deductible for taxpayers who itemize deductions. Casualty losses can be the result of fires, floods, and other disasters. In most cases, taxpayers can deduct losses in the tax year in which they happened. In the case of theft, the tax year is the year of loss discovery.",investopedia,1,65.35,9.8,13,10.16,12.6,10.1,10.75,13.79
Form 4797,"Form 4797 (Sales of Business Property) is a tax form distributed by the Internal Revenue Service (IRS). It is used to report gains made from the sale or exchange of business property, including (but not limited to) property used to generate rental income, and property used for industrial, agricultural, or extractive resources.",investopedia,1,36.63,14.6,0,12.6,16.7,9.78,19,17.32
Form 4952,"Form 4952: Investment Interest Expense Deduction is a tax form distributed by the Internal Revenue Service (IRS) used to determine the amount of investment interest expense that can be deducted, as well as any interest expense that can be carried forward to a future tax year.",investopedia,1,24.79,21.2,0,12.38,25.4,10.38,33,24.49
Form 5405,"Form 5405: First-Time Homebuyer Credit and Repayment of the Credit is a tax form distributed by the Internal Revenue Service (IRS) and used by first-time homeowners or long-time residents of a home to claim a tax credit that is no longer available to taxpayers. However, people who purchased homes before 2010 can still benefit from the tax credit initiative. The Obama administration enacted the federal first-time homebuyer tax credit in 2008. The tax credit was only available for approximately two years and five months—from April 9, 2008 through September 2010.  ",investopedia,1,40.31,15.3,16.3,13.01,18.7,9.96,15.5,17.93
Form 6251,"Form 6251: Alternative Minimum Tax-Individuals is an Internal Revenue Service (IRS) tax form used to determine the amount of alternative minimum tax (AMT) that a taxpayer may owe. Some taxpayers with higher incomes can claim certain deductions that allow them to reduce their regular tax obligation. The AMT sets an upper limit on how much that deduction can be as a way of ensuring that wealthier individuals pay an adequate amount of taxes. If you are among those to whom it applies, you'll pay the AMT instead of standard income taxes.",investopedia,1,48.33,12.2,14.9,10.97,13.3,9.45,15.625,15.27
Form 6252,Form 6252: Installment Sale Income is an Internal Revenue Service (IRS) form used to report income from the sale of real or personal property coming from an installment sale with the installment method.,investopedia,1,37.98,16.2,0,12.49,19.3,9.1,22.5,18.05
Form 6781,Form 6781: Gains and Losses From Section 1256 Contracts and Straddles is used to report gains and losses from straddles or financial contracts that are labeled as Section 1256 contracts.,investopedia,1,57.95,12.6,0,13.3,18.2,9.86,16,13.33
Form 706,"Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return is an Internal Revenue Service (IRS) form used by an executor of a decedent’s estate to calculate the estate tax owed, according to Chapter 11 of the Internal Revenue Code (IRC). The tax is levied on the entire taxable estate, not just on the share a specific beneficiary receives. Executors also use Form 706 to calculate the generation-skipping transfer tax (GSTT) imposed by Chapter 13 of the IRC.",investopedia,1,45.09,13.4,14.6,11.96,16,10.39,17,15.02
Form 8283,"Form 8283: Noncash Charitable Contributions is a tax form distributed by the Internal Revenue Service (IRS) and used by filers who wish to deduct noncash contributions made to a qualifying charitable organization. Deductions for noncash contributions are reported as itemized deductions. Noncash contributions can include securities, property, vehicles, collectibles, or art.",investopedia,1,11.75,18,0,19.27,21.7,11.09,20.75,18.83
Form 8379,"The ""injured"" spouse on a jointly-filed tax return can file Form 8379 to regain their share of a joint refund that was seized to pay a past-due obligation of the other spouse. These obligations might include past-due federal tax, state tax, child support, or federal non-tax debt (such as a student loan). The term ""injured"" refers to the negatively impacted spouse, who does not owe the debt.",investopedia,1,65.76,9.6,11.9,9.87,12.7,9.46,13.5,11.91
Form 8396,Form 8396 is an Internal Revenue Service (IRS) form used by homeowners to claim the mortgage interest credit. The aim of the mortgage interest credit is to help lower-income taxpayers afford homeownership. You can only claim the credit if you receive a mortgage credit certificate (MCC) from a state or local government agency.,investopedia,1,53.51,10.2,13,11.89,12,9.58,11.83333333,11.61
Form 843,Form 843 is a multipurpose tax document issued by the Internal Revenue Service (IRS) used by taxpayers to make a claim for a refund of certain assessed taxes or to request abatement of interest or penalties applied in error.,investopedia,1,31.89,18.5,0,10.51,20.5,12.86,24.5,20.73
Form 8606,"Internal Revenue Service (IRS) Form 8606, ""Nondeductible IRAs,"" is used by filers who make nondeductible contributions to an individual retirement account (IRA). A separate form should be filed for each tax year that nondeductible contributions are made.",investopedia,1,44.24,11.7,0,15.32,15.6,9.68,13.75,12.81
Form 8949,"Form 8949: ""Sales and Other Dispositions of Capital Assets"" is an Internal Revenue Service (IRS) form used by individuals, partnerships, corporations, trusts, and estates to report capital gains and losses from investment. Taxpayers must use the form to report short- and long-term capital gains and losses from sales or investment exchanges.",investopedia,1,11.25,24.4,0,15.57,31.2,11.43,36.5,25.89
Form ADV,"Form ADV is a required submission to the Securities and Exchange Commission (SEC), by a professional investment advisor, which specifies the investment style, assets under management (AUM), and key officers of an advisory firm. Form ADV must be updated annually and made available as public record for companies managing in excess of $25 million.",investopedia,1,27.15,16.2,0,13.29,17.6,11.99,21,21.17
Fortune 100,"The Fortune 100 is a list of the top 100 companies in the United States. It is a subset of the Fortune 500, a list of the 500 largest U.S. public and privately held companies published by Fortune magazine. Fortune creates the list by ranking public and private companies that report annual revenue figures to a government agency. The ranking is based on total revenues for the company's corresponding fiscal year.",investopedia,1,61.87,9.1,11.7,9.8,10.2,9.41,11.125,9.94
Fortune 500,The term Fortune 500 refers to a list of 500 of the largest companies in the United States compiled by Fortune magazine every year. Companies are ranked by their annual revenues for their respective fiscal years. This list includes both public and private companies using publicly available revenue data. To be a Fortune 500 company is widely considered to be a mark of prestige.,investopedia,1,63.7,8.4,11.2,10.73,9.8,9.61,9,8.9
Forward Dividend Yield,A forward dividend yield is an estimation of a year's dividend expressed as a percentage of the current stock price. The year's projected dividend is measured by taking a stock's most recent actual dividend payment and annualizing it. The forward dividend yield is calculated by dividing a year's worth of future dividend payments by a stock's current share price.,investopedia,1,43.02,12.2,15,12.01,12.8,9.16,14.16666667,13.3
Forward Exchange Contract,"A forward exchange contract (FEC) is a special type of over-the-counter (OTC) foreign currency (forex) transaction entered into in order to exchange currencies that are not often traded in forex markets. These may include minor currencies as well as blocked or otherwise inconvertible currencies. A FEC involving such a blocked currency is known as a non-deliverable forward, or NDF.",investopedia,1,43.02,12.2,14.1,13.4,14.4,10.23,13.5,11.95
Forward Integration,"Forward integration is a business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are ahead in the value chain of its industry, this might include among others direct distribution or supply of the company's products. This type of vertical integration is conducted by a company advancing along the supply chain.",investopedia,1,24.11,17.4,0,14.92,19.6,10.12,22,18
Forward Market,"A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, but the term is primarily used with reference to the foreign exchange market. It can also apply to markets for securities and interest rates as well as commodities.",investopedia,1,51.89,10.8,14.1,11.72,12.3,9.77,13.33333333,14.62
Forward Points,"In currency trading, forward points are the number of basis points added to or subtracted from the current spot rate of a currency pair to determine the forward rate for delivery on a specific value date. When points are added to the spot rate this is called a forward premium; when points are subtracted from the spot rate it is a forward discount. The forward rate is based on the difference between the interest rates of the two currencies (currency deals always involve two currencies) and the time until the maturity of the deal.",investopedia,1,56.63,13.1,15.5,10.34,16.5,8.55,20.33333333,16.35
Forward Premium,A forward premium is a situation in which the forward or expected future price for a currency is greater than the spot price. It is an indication by the market that the current domestic exchange rate is going to increase against the other currency.,investopedia,1,49.15,11.9,0,9.46,11.5,8.32,14.5,14.25
Forward Price-To-Earnings (Forward P/E),"Forward price-to-earnings (forward P/E) is a version of the ratio of price-to-earnings (P/E) that uses forecasted earnings for the P/E calculation. While the earnings used in this formula are just an estimate and not as reliable as current or historical earnings data, there are still benefits to estimated P/E analysis.",investopedia,1,37.64,14.2,0,12.71,16.6,10.25,18,17.2
Four Asian Tigers,"The Four Asian Tigers are the high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan. Fueled by exports and rapid industrialization, the Four Asian Tigers have consistently maintained high levels of economic growth since the 1960s, and have collectively joined the ranks of the world's wealthiest nations.",investopedia,1,55.58,11.5,0,15.26,17.7,12.72,15,14.6
Four Percent Rule,"The Four Percent Rule is a rule of thumb used to determine how much a retiree should withdraw from a retirement account each year. This rule seeks to provide a steady income stream to the retiree while also maintaining an account balance that keeps income flowing through retirement. Experts are divided on whether the 4% withdrawal rate is safe, as the withdrawals will consist primarily of interest and dividends.",investopedia,1,56.59,11.1,13,12.02,13.9,9.81,14.5,13.84
Four Ps,"The four Ps of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service. Often referred to as the marketing mix, the four Ps are constrained by internal and external factors in the overall business environment, and they interact significantly with one another.",investopedia,1,58.92,10.2,13.6,10.04,11.7,8.23,13.66666667,12.8
Fourth World,"The Fourth World is an outdated term used to describe the most underdeveloped, poverty-stricken, and marginalized regions of the world.",investopedia,1,51.18,11.1,0,15.49,16.1,9.37,13,12
Fractal Indicator,"The fractal indicator is based on a simple price pattern that is frequently seen in financial markets. Outside of trading, a fractal is a recurring geometric pattern that is repeated on all time frames. From this concept, the fractal indicator was devised. The indicator isolates potential turning points on a price chart. It then draws arrows to indicate the existence of a pattern. The bullish fractal pattern signals the price could move higher. A bearish fractal signals the price could move lower. Bullish fractals are marked by a down arrow, and bearish fractals are marked by an up arrow.",investopedia,1,67.35,6.9,9.8,10.31,8.4,8.88,6.5625,8.6
Fractional Reserve Banking,Fractional reserve banking is a system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal. This is done to theoretically expand the economy by freeing capital for lending.,investopedia,1,43.73,11.9,0,11.08,11.4,10.81,12.5,12.86
Fractional Share,"Less than one full share of equity is called a fractional share. Such shares may be the result of stock splits, dividend reinvestment plans (DRIPs), or similar corporate actions. Typically, fractional shares aren't available from the stock market, and while they have value to investors, they are also difficult to sell.",investopedia,1,62.68,8.7,13,12.12,12.2,9.74,11.5,13.07
Franchise,"A franchise is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees.",investopedia,1,43.06,14.2,0,14.68,19,11.51,17.5,16.2
Franchise Tax,"The term franchise tax refers to a tax paid by certain enterprises that want to do business in some states. Also called a privilege tax, it gives the business the right to be chartered and/or to operate within that state. Companies in some states may also be liable for the tax even if they are chartered in another state. Despite the name, a franchise tax is not a tax on franchises and is separate from federal and state income taxes that must be filed annually.",investopedia,1,66.78,9.2,11.7,8.18,10.2,7.85,12.875,11.81
Franchisee,"A franchisee is a small business owner who operates a franchise. The franchisee has purchased the right to use an existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business. Franchisees become owners and independent operators of third-party retail outlets called franchises.",investopedia,1,43.73,11.9,12.5,15.37,15.2,10.67,12.16666667,12.51
Franked Dividend,A franked dividend is an arrangement in Australia that eliminates the double taxation of dividends. The shareholder can reduce the tax paid on the dividend by an amount equal to the tax imputation credits. An individual’s marginal tax rate and the tax rate for the company issuing the dividend affect how much tax an individual owes on a dividend.,investopedia,1,33.07,16,0,11.62,16.5,9.65,22.75,19.26
Fraud,"Fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. Types of fraud include tax fraud, credit card fraud, wire fraud, securities fraud, and bankruptcy fraud. Fraudulent activity can be carried out by one individual, multiple individuals or a business firm as a whole.",investopedia,1,43.73,11.9,14.1,11.72,12.3,10.67,13.16666667,15.32
Freddie Mac,"The Federal Home Loan Mortgage Corp. (FHLMC) is a stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle-income Americans. The FHLMC, familiarly known as Freddie Mac, purchases, guarantees, and securitizes mortgages to form mortgage-backed securities.",investopedia,1,28.67,15.6,0,19.38,22.4,13.57,18.75,18.04
Free Carrier (FCA),"The free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer. When used in trade, the word ""free"" means the seller has an obligation to deliver goods to a named place for transfer to a carrier. The destination is typically an airport, shipping terminal, warehouse, or other location where the carrier operates. It might even be the seller's business location.",investopedia,1,51.89,10.8,14.6,10.27,11.3,8.49,13.625,13.95
Free Cash Flow (FCF),"Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as changes in working capital from the balance sheet.",investopedia,1,39.5,15.6,0,13.41,19.2,10.71,20.25,16.41
Free Cash Flow to Equity (FCFE),"Free cash flow to equity is a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt are paid. FCFE is a measure of equity capital usage.",investopedia,1,52.7,10.5,0,8.3,9.1,7.97,13.25,11.72
Free Cash Flow to the Firm (FCFF),"Free cash flow to the firm (FCFF) represents the amount of cash flow from operations available for distribution after accounting for depreciation expenses, taxes, working capital, and investments. FCFF is a measurement of a company's profitability after all expenses and reinvestments. It is one of the many benchmarks used to compare and analyze a firm's financial health.",investopedia,1,43.73,11.9,15.9,13.98,14.3,10.12,14.5,16.72
Free Cash Flow Yield,"Free cash flow yield is a financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by taking the free cash flow per share divided by the current share price. Free cash flow yield is similar in nature to the earnings yield metric, which is usually meant to measure GAAP (generally accepted accounting principles) earnings per share divided by share price.",investopedia,1,53.55,12.3,15,10.68,14.4,8.97,17.33333333,16.04
Free Enterprise,"Free enterprise, or the free market, refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control. Alternatively, free enterprise could refer to an ideological or legal system whereby commercial activities are primarily regulated through private measures.",investopedia,1,29.14,13.3,15,17.34,16,11.1,12.66666667,14.68
Free-Float Methodology,"The free-float methodology is a method of calculating the market capitalization of a stock market index's underlying companies. With the free-float methodology, market capitalization is calculated by taking the equity's price and multiplying it by the number of shares readily available in the market.",investopedia,1,23.77,15.4,0,15.78,17.2,9.39,16.5,16.98
Free Look Period,"The free look period is a required period of time in which a new life insurance policy owner can terminate the policy without penalties, such as surrender charges. A free look period often lasts 10 or more days (depending on the insurer), allowing the contract holder to decide whether or not to keep the insurance policy; if they are not satisfied and wish to cancel, the policy purchaser can receive a full refund.",investopedia,1,34.43,17.5,0,10.34,19.3,9.77,26.25,20.08
Free Market,"The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country's free market economy may range between very large or entirely black market.",investopedia,1,44.24,11.7,14.9,13.52,13.2,9.89,13.5,14.97
Free On Board (FOB),"Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. ""FOB shipping point"" or ""FOB origin"" means the buyer is at risk and takes ownership of goods once the seller ships the product. Historically, FOB was used only to refer to goods transported by ship; in the United States, the term has since been expanded to include all types of transportation.",investopedia,1,48.3,16.3,0,9.59,20.4,10.19,22.75,18.84
Free Rider Problem,The free rider problem is the burden on a shared resource that is created by its use or overuse by people who aren't paying their fair share for it or aren't paying anything at all.,investopedia,1,61.33,13.4,0,7.15,15.9,8.53,18.5,15.14
Free Trade,"A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.",investopedia,1,45.59,13.2,0,12.13,15.5,9.86,16.25,14.91
Free Trade Area,"A free trade area is a region in which a group of countries has signed a free trade agreement and maintain little or no barriers to trade in the form of tariffs or quotas between each other. Free trade areas facilitate international trade and the associated gains from trade along with the international division of labor and specialization. However, free trade areas have been criticized both for costs that are associated with increasing economic integration and for artificially restraining free trade.",investopedia,1,35.61,15,15.9,13.18,16.8,9.65,18.5,16.73
Freemium,"A combination of the words ""free"" and ""premium,"" the term freemium is a type of business model that offers basic features to users at no cost and charges a premium for supplemental or advanced features. A company using a freemium model provides basic services for free often in a ""free trial"" or limited version for the user, while also offering more advanced services or additional features at a premium.",investopedia,1,36.46,16.7,0,10.8,18.8,10.38,21.75,17.28
Freudian Motivation Theory,"Freudian motivation theory posits that unconscious psychological forces, such as hidden desires and motives, shape an individual's behavior, like their purchasing patterns. This theory was developed by Sigmund Freud who, in addition to being a medical doctor, is synonymous with the field of psychoanalysis.",investopedia,1,23.77,15.4,0,16.48,17.8,11.9,17.5,19.71
Frictional Unemployment,"Frictional unemployment is the result of voluntary employment transitions within an economy. Frictional unemployment naturally occurs, even in a growing, stable economy. Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time constitute frictional unemployment. It does not include workers who remain in their current job until finding a new one, as, obviously, they are never unemployed.",investopedia,1,37.5,12.2,14.6,14.44,13.6,9.89,12.375,13.29
Friedrich Engels,"Friedrich Engels was a German philosopher, social scientist, journalist, and businessman who lived from 1820 to 1895. His collection of work done with Karl Marx laid the groundwork for modern communism. Engels and Marx wrote and published many articles and books together that attempted to expose the uneven distribution of wealth gained during the Industrial Revolution. Their writings see capitalism as an exploitative system that benefits the owners of land, capital, and means of production more than the workforce. Specifically, Engels and Marx claimed that the surplus value created by workers in excess of wages produced significant profits for owners of capital—a central theme in Engel's contributions to modern communism.",investopedia,1,40.69,13.1,15.1,15.37,16.6,11.76,13.8,15.35
Friedrich Hayek,"Friedrich Hayek is a famous economist born in Vienna, Austria, in 1899. He is well-known for his numerous contributions to the field of economics and political philosophy. Hayek's approach mostly stems from the Austrian school of economics and emphasizes the limited nature of knowledge. He is particularly famous for his defense of free-market capitalism and is remembered as one of the greatest critics of the socialist consensus.",investopedia,1,45.96,11,14.6,13.51,12.8,10.83,12.375,15.68
Fringe Benefits,Fringe benefits are additions to compensation that companies give their employees. Some fringe benefits are given universally to all employees of a company while others may be offered only to those at executive levels. Some benefits are awarded to compensate employees for costs related to their work while others are geared to general job satisfaction.,investopedia,1,35.98,12.8,16.3,14.04,13.4,9.42,14.5,14.59
Front-End Debt-to-Income Ratio (DTI),"The front-end debt-to-income ratio (DTI) is a variation of the DTI that calculates how much of a person's gross income is going toward housing costs. If a homeowner has a mortgage, the front-end DTI is typically calculated as housing expenses (such as mortgage payments, mortgage insurance, etc.) divided by gross income. In contrast, a back-end DTI calculates the percentage of gross income going toward other debt types, such as credit cards or car loans. You may also hear these ratios referred to as ""Housing 1"" and ""Housing 2,"" or ""Basic"" and ""Broad,"" respectively.",investopedia,1,47.83,12.4,13,11.15,14.5,9.89,14.625,13.62
Front-End Load,"A front-end load is a commission or sales charge applied at the time of the initial purchase of an investment. The term most often applies to mutual fund investments, but may also apply to insurance policies or annuities. The front-end load is deducted from the initial deposit, or purchase funds and, as a result, lowers the amount of money actually going into the investment product.",investopedia,1,49.45,11.8,13,10.56,12.7,9.57,13.83333333,13.6
Front Office,"The front office represents the customer-facing division of a firm. For example, customer service, sales, and industry experts who provide advisory services are considered part of a firm's front office operations.",investopedia,1,38.82,11.7,0,15.37,14.1,11.03,11.75,15.23
Full Costing,"Full costing is an accounting method used to determine the complete end-to-end cost of producing products or services. Also known as ""full costs"" or ""absorption costing,” it is required in most common accounting methodologies, including generally accepted accounting principles (GAAP), International Financial Reporting Standards (IFRS), and reporting standards for income tax purposes.",investopedia,1,19.71,17,0,19.15,22.3,12.21,21,20.4
Full Disclosure,"Full disclosure is the U.S. Securities and Exchange Commission's (SEC) requirement that publicly traded companies release and provide for the free exchange of all material facts that are relevant to their ongoing business operations. Full disclosure also refers to the general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction. For example, in real estate transactions, there is typically a disclosure form signed by the seller that may result in legal penalties if it is later discovered that the seller knowingly lied about or concealed significant facts.",investopedia,1,29.82,17.2,18.6,14.57,20.8,11.22,23.66666667,20.02
Full Employment,Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.,investopedia,1,49.65,11.7,0,12.24,13.5,9.84,14.75,14.18
Full Ratchet,"A full ratchet is a contractual provision designed to protect the interests of early investors. Specifically, it is an anti-dilution provision that applies, for any shares of common stock sold by a company after the issuing of an option (or convertible security), the lowest sale price as the adjusted option price or conversion ratio for existing shareholders.",investopedia,1,25.63,16.8,0,13.23,18,11.14,21.25,19.82
Fully Amortizing Payment,"A fully amortizing payment refers to a type of periodic repayment on a debt. If the borrower makes payments according to the loan's amortization schedule, the debt is fully paid off by the end of its set term. If the loan is a fixed-rate loan, each fully amortizing payment is an equal dollar amount. If the loan is an adjustable-rate loan, the fully amortizing payment changes as the interest rate on the loan changes.",investopedia,1,69.62,8.1,12.2,9.11,9.9,8.18,11.75,11.18
Fully Diluted Shares,"Fully diluted shares are the total number of common shares of a company that will be outstanding and available to trade on the open market after all possible sources of conversion, such as convertible bonds and employee stock options, are exercised. Fully diluted shares include not only those which are currently issued but also those that could be claimed through conversion. This number of shares is needed for a company’s earnings per share (EPS) calculations because applying fully diluted shares increases the share basis in the calculation while reducing the dollars earned per share of common stock.",investopedia,1,38.69,15.9,17.1,13.47,19.6,10.12,22.16666667,18.28
Fully Vested,"Being fully vested means a person has rights to the full amount of some benefit, most commonly employee benefits such as stock options, profit sharing, or retirement benefits. Benefits that must be fully vested benefits often accrue to employees each year, but they only become the employee's property according to a vesting schedule.",investopedia,1,36.12,14.8,0,13.12,16.9,10.02,19.25,17.39
Functional Currency,"Popular with multinationals, functional currency represents the primary economic environment in which an entity generates and expends cash. It is the main currency used by a business in its business dealings.",investopedia,1,30.36,12.9,0,15.37,13.5,11.03,13.25,19.1
Functional Obsolescence,Functional obsolescence is the reduction of an object's usefulness or desirability because of an outdated design feature that cannot be easily changed or updated. The application of the term varies based on industry.,investopedia,1,29.35,13.3,0,14.21,13.1,12.11,13.25,18.72
Fund,"A fund is a pool of money that is allocated for a specific purpose. A fund can be established for many different purposes: a city government setting aside money to build a new civic center, a college setting aside money to award a scholarship, or an insurance company that setts aside money to pay its customers’ claims.",investopedia,1,51.01,13.2,0,9.58,14.8,8.65,19.25,16.31
Fund Flow,"Fund flow is the net of all cash inflows and outflows in and out of various financial assets. Fund flow is usually measured on a monthly or quarterly basis. The performance of an asset or fund is not taken into account, only share redemptions, or outflows, and share purchases, or inflows. Net inflows create excess cash for managers to invest, which theoretically creates demand for securities such as stocks and bonds.",investopedia,1,53.41,10.2,11.7,10.26,10.7,10.08,11.125,12.19
Fund Manager,"A fund manager is responsible for implementing a fund's investing strategy and managing its portfolio trading activities. The fund can be managed by one person, by two people as co-managers, or by a team of three or more people.",investopedia,1,43.22,12.1,0,10.1,11.3,9.87,14.25,14.98
Fund of Funds (FOF),"A fund of funds (FOF)—also known as a multi-manager investment—is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing directly in bonds, stocks, and other types of securities.",investopedia,1,47.08,10.6,13.6,13.92,12.9,11.13,11.16666667,12.24
Fundamental Analysis,"Fundamental analysis (FA) is a method of measuring a security's intrinsic value by examining related economic and financial factors. Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management.",investopedia,1,2.79,19.3,0,17.35,20.2,11.61,23,24.25
Fundamentals,"Fundamentals include the basic qualitative and quantitative information that contributes to the financial or economic well-being of a company, security, or currency, and their subsequent financial valuation. Where qualitative information includes elements that cannot be directly measured, such as management experience, quantitative analysis (QA) uses mathematics and statistics to understand the asset and predict its movements.",investopedia,1,-7.71,21.3,0,20.95,24.2,12.64,26.5,24.06
Funded Debt,Funded debt is a company's debt that matures in more than one year or one business cycle. This type of debt is classified as such because it is funded by interest payments made by the borrowing firm over the term of the loan.,investopedia,1,75.03,8.1,0,7.02,9.4,8.74,12.75,12.32
Funds From Operations (FFO),Funds from operations (FFO) refers to the figure used by real estate investment trusts (REITs) to define the cash flow from their operations. Real estate companies use FFO as a measurement of operating performance.,investopedia,1,45.76,11.1,0,12.47,12.3,10.52,12,13.86
Funds Transfer Pricing (FTP),"Funds transfer pricing (FTP) is a system used to estimate how funding is adding to the overall profitability of a company. FTP sees its most significant use in the banking industry where financial institutions use FTP as a way to analyze the strengths and failings of the firm within the institution. Funds transfer pricing may also help with determining the profitability of various product lines the bank offers, the performance of branch outlets, and judge the effectiveness of processes.",investopedia,1,44.78,13.5,15.9,12.83,16.4,11.14,18.16666667,17.1
Fungibility,"Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.",investopedia,1,35.27,13.1,0,12.36,12.5,9.15,13.5,14.97
"Furniture, Fixtures, and Equipment (FF&E)","Furniture, fixtures, and equipment (abbreviated as FF&E or FFE) refers to movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building. These items, which include desks, chairs, computers, electronic equipment, tables, bookcases, and partitions, typically depreciate substantially over their long-term use but are nevertheless important costs to consider when valuing a company, especially during liquidation events.",investopedia,1,14.12,19.1,0,18.92,24.7,12.72,24.75,21.49
Future Value (FV),"Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value is important to investors and financial planners, as they use it to estimate how much an investment made today will be worth in the future. Knowing the future value enables investors to make sound investment decisions based on their anticipated needs. However, external economic factors, such as inflation, can adversely affect the future value of the asset by eroding its value.",investopedia,1,49.86,11.6,13,10.33,12.2,9.15,13.625,12.76
Future Value of an Annuity,"The future value of an annuity is the value of a group of recurring payments at a certain date in the future, assuming a particular rate of return, or discount rate. The higher the discount rate, the greater the annuity's future value.",investopedia,1,58.62,10.3,0,8.7,10.8,8.44,13,13.16
Futures,"Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.",investopedia,1,39.67,13.4,0,12.42,14.2,10.61,15,15.29
Futures Commission Merchant (FCM),A futures commission merchant (FCM) plays an essential role in enabling customers to participate in the futures markets. An FCM is an individual or organization involved in the solicitation or acceptance of buy or sell orders for futures or options on futures in exchange for payment of money (commission) or other assets from customers. An FCM also has the responsibility of collecting margin from customers. The FCM is also responsible for ensuring asset delivery after the futures contract has expired.,investopedia,1,34.26,13.5,13.4,13.17,13.8,10.16,13.25,14
Futures Market,A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. Futures are exchange-traded derivatives contracts that lock in future delivery of a commodity or security at a price set today.,investopedia,1,32.22,14.2,0,12.65,14.2,8.68,15.5,14.25
Gadfly,"Gadfly is a colloquial term for an investor who attends the annual shareholders meeting to criticize the corporation's executives. A gadfly addresses many issues for the shareholders, often raising questions to management about specific company policies or corporate governance.",investopedia,1,17.84,15.6,0,17.81,17.3,11.89,16.25,19.08
GAFAM Stocks,"GAFAM is an acronym for five popular U.S. tech stocks: Google (Alphabet), Apple, Facebook, Amazon, and Microsoft.",investopedia,1,45.76,11.1,0,12.82,14.5,15.63,11.5,13.86
Gain,"A gain is a general increase in the value of an asset or property. A gain arises if the current price of something is higher than the original purchase price. For accounting and tax purposes, gains may be classified in several ways, for example as gross vs. net gains or realized vs. unrealized (paper) gains. Capital gains may additionally be classified as short-term vs. long-term in nature.",investopedia,1,54.42,9.8,13.4,9.68,10,9.18,11.625,12.09
Gambler's Fallacy,"The gambler's fallacy, also known as the Monte Carlo fallacy, occurs when an individual erroneously believes that a certain random event is less likely or more likely to happen based on the outcome of a previous event or series of events. This line of thinking is incorrect, since past events do not change the probability that certain events will occur in the future.",investopedia,1,47.96,14.4,0,11.04,17.3,10.21,19.25,16.41
Game Changer,"The term game-changer refers to an individual or company that significantly alters the way things are done as a whole. Individual game-changers find a way to stand out by way of their personality. Game-changing companies are able to switch things up and form new business plans and strategies that place them above their competition. By mere virtue of their actions, game-changers can make changes that transform the landscape as a whole.",investopedia,1,61.87,9.1,10.7,11.77,11.8,8.74,10.625,9.94
Game Theory,"Game theory is a theoretical framework for conceiving social situations among competing players. In some respects, game theory is the science of strategy, or at least the optimal decision-making of independent and competing actors in a strategic setting.",investopedia,1,18.35,15.4,0,15.26,15.1,11.23,15,17.07
Gamification,"Gamification describes the incentivisation of people's engagement in non-game contexts and activities by using game-style mechanics. Gamification leverages people's natural tendencies for competition, achievement, collaboration, and charity. Tools employed in game design, such as rewarding users for achievements, ""leveling-up,"" and earning badges, are carried into the real world to help motivate individuals to achieve their goals or boost performance. There are many examples of gamification, the most well-known perhaps being frequent flyer rewards programs offered by airlines. The important measurable metrics of success from gamification include the level of engagement, influence, brand loyalty, time spent on an activity, and the game's ability to go viral.",investopedia,1,24.78,15,16.2,17.93,18.8,12.5,15,16.4
Gamma Hedging,"Gamma hedging is a trading strategy that tries to maintain a constant delta in an options position, often one that is delta-neutral, as the underlying asset changes price. It is used to reduce the risk created when the underlying security makes strong up or down moves, particularly during the last days before expiration.",investopedia,1,36.12,14.8,0,11.9,15.8,11.8,17.75,15.88
Gamma Neutral,A gamma neutral options position is one that has been immunized to large moves in an underlying security. Achieving a gamma neutral position is a method of managing risk in options trading by establishing an asset portfolio whose delta's rate of change is close to zero even as the underlying rises or falls. This is known as gamma hedging. A gamma-neutral portfolio is thus hedged against second-order time price sensitivity.,investopedia,1,45.25,11.3,13.4,11.42,11.3,9.92,12,11.57
Gann Angles,"Gann angles are named after their creator W.D. Gann. Gann believed the angles could predict future price movements based on geometric angles of time versus price. Gann was a 20th-century market theorist. The validity and usefulness of his theories, however, are subject to debate.",investopedia,1,51.85,8.8,10.7,11.58,9.5,11.36,6.25,9.85
Gann Fans,Gann fans are a form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of lines called Gann angles. These angles are superimposed over a price chart to show potential support and resistance levels. The resulting image is supposed to help technical analysts predict price changes.,investopedia,1,64.71,8,11.7,10.26,9.2,10.7,8.75,11.33
Gantt Chart,"A Gantt chart is a graphical depiction of a project schedule. It's is a type of bar chart that shows the start and finish dates of several elements of a project that include resources, milestones, tasks, and dependencies. Henry Gantt, an American mechanical engineer, designed the Gantt chart.",investopedia,1,63.7,8.4,12.5,11.08,10.7,10.02,10.66666667,10.57
Gap,"A gap is an area discontinuity in a security's chart where its price either rises or falls from the previous day’s close with no trading occurring in between. Gaps are common when news causes market fundamentals to change during hours when markets are typically closed, for instance an earnings call after-hours.",investopedia,1,45.59,13.2,0,12.25,15.5,11.09,16.25,14.91
Gap Analysis,"A gap analysis is the process companies use to compare their current performance with their desired, expected performance. This analysis is used to determine whether a company is meeting expectations and using its resources effectively.",investopedia,1,36.79,12.5,0,15.43,14.5,10.82,13.75,15
Gapping,"Gapping occurs when the price of a stock, or another asset, opens above or below the previous day’s close with no trading activity in between. A gap is the area discontinuity in a security's price chart. Gaps may materialize when headlines cause market fundamentals to change rapidly during hours when markets are typically closed; for instance, the result of an earnings call after-hours.",investopedia,1,39.5,15.6,0,12.66,18.9,10.96,13.5,17.04
Garage Liability Insurance,"Garage liability insurance is specialty insurance targeted to the automotive industry. Automobile dealerships, parking lots or parking garages operators, tow-truck operators, service stations, and customization and repair shops will add garage liability insurance to their business liability coverage. The policy protects property damage and bodily injury resulting from operations.",investopedia,1,-4.16,19.9,0,22.05,23.3,11.94,15.16666667,22.04
GARCH Process,"The generalized autoregressive conditional heteroskedasticity (GARCH) process is an econometric term developed in 1982 by Robert F. Engle, an economist and 2003 winner of the Nobel Memorial Prize for Economics. GARCH describes an approach to estimate volatility in financial markets.",investopedia,1,32.6,12,14.6,16.34,14,13.38,10.66666667,17.32
Gardening Leave,"A gardening leave refers to the period of time during which an employee stays away from the workplace, or works remotely during the notice period. The employee remains on the payroll and is in the process of terminating their employment, but is neither permitted to go to work nor to commence any other employment during the gardening leave.",investopedia,1,42.04,14.6,0,11.33,16.1,9.16,20,16.43
Garn-St. Germain Depository Institutions Act,"The Garn-St. Germain Depository Institutions Act was enacted by Congress in 1982 to ease pressures on banks and savings and loans which increased after the Federal Reserve raised rates in an effort to combat inflation. The act followed the establishment of the Depository Institutions Deregulation Committee by the Monetary Control Act, which had the primary purpose of phasing out interest rate ceilings on bank deposit accounts by 1986.",investopedia,1,28.51,17.7,0,14.81,21.5,12.99,23.5,20.07
Garnishment,"Garnishment, or wage garnishment, is when money is legally withheld from your paycheck and sent to another party. It refers to a legal process that instructs a third party to deduct payments directly from a debtor’s wage or bank account.",investopedia,1,59.64,9.9,0,10.85,11.9,9.76,12,10
Gartley Pattern,"The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows. In his book Profits in the Stock Market, H.M. Gartley laid down the foundation for harmonic chart patterns in 1935. The Gartley pattern is the most commonly used harmonic chart pattern. Larry Pesavento later applied Fibonacci ratios to the pattern in his book Fibonacci Ratios with Pattern Recognition.",investopedia,1,65.73,7.6,12,13.04,11.3,9.97,8.4,10.17
Gas (Ethereum),"Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion.",investopedia,1,35.44,17.1,0,14.69,22.5,11.85,23.25,19.27
Gas Guzzler Tax,"The gas guzzler tax is a surcharge added to the sales or lease price of cars in the U.S. that have poor fuel economy ratings. The tax, which is paid by the manufacturer or importer of the vehicle, varies depending on the miles-per-gallon efficiency of the vehicle and ranges from $1,000 to $7,700.",investopedia,1,61.5,11.3,0,8.71,13.8,11.8,16.75,14.37
Gate Provision,"A gate provision refers to a statement in a fund's offering documents that establishes the fund manager’s right to limit or halt redemptions. The prospectus or offering documents may provide more detail on a gate provision, such as scenarios where redemptions would be restricted or halted entirely. Gate provisions are intended to stop a run on a fund, particularly when the assets a fund holds are illiquid and difficult to turn to cash for redemption in a timely manner. Even with scenarios and guidelines, the decision to exercise the gate provision is the fund managers.",investopedia,1,47.32,12.6,16.2,12.07,14.4,10.14,17.125,15.84
Gatekeeper,A gatekeeper refers to requirements that must be met before an individual can qualify for a long-term care plan or to an individual who oversees a patient treatment through a health maintenance organization (HMO).,investopedia,1,28.51,17.7,0,13.36,20.5,10.43,24,20.66
Gazelle Company,"According to the original technical definition, a gazelle company is a high-growth company that has been increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $100,000.",investopedia,1,32.91,18.1,0,11.38,21.3,11.75,27,21.52
GBP,"GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories of South Georgia, the South Sandwich Islands, and British Antarctic Territory and the U.K. crown dependencies the Isle of Man and the Channel Islands. The African country of Zimbabwe also uses the pound. Many other currencies are pegged to the British pound, including the Falkland Islands pound, Gibraltar pound, Saint Helenian pound, Jersey pound (JEP), Guernsey pound (GGP), Manx pounds, Scotland notes. and Northern Ireland notes.",investopedia,1,50.8,13.3,13.6,14.46,19.4,11.49,17.66666667,16.13
GDAX,"Coinbase, the first licensed U.S. bitcoin exchange and one of the most popular, was founded in 2012 and has helped to bring digital currencies to investors both in the U.S. and abroad. Faced with massive growth in its user base and trading volume in 2015, Coinbase decided to expand its bitcoin offerings to include other digital currencies like ethereum. The company set up separate exchanges catered to individual or ""casual"" investors and highly active traders. The latter of these was eventually rebranded as GDAX, standing for Global Digital Asset Exchange.",investopedia,1,48.64,12.1,13.8,12.6,14.6,11.59,14.75,13
GDP Gap,"A GDP gap is the difference between the actual gross domestic product (GDP) and the potential GDP of an economy as represented by the long-term trend. A negative GDP gap represents the forfeited output of a country's economy resulting from the failure to create sufficient jobs for all those willing to work. A large positive GDP gap, on the other hand, generally signifies that an economy is overheated and at risk of high inflation.",investopedia,1,46.4,12.9,17.1,10.62,13.9,10.41,18.33333333,17.99
GDP Price Deflator,"The GDP price deflator, also known as the GDP deflator or the implicit price deflator, measures the changes in prices for all of the goods and services produced in an economy.",investopedia,1,48.47,14.2,0,9.88,16.1,9.76,20.5,16.27
Gearing,"Gearing refers to the relationship, or ratio, of a company's debt-to-equity (D/E). Gearing shows the extent to which a firm's operations are funded by lenders versus shareholders—in other words, it measures a company’s financial leverage. When the proportion of debt-to-equity is great, then a business may be thought of as being highly geared, or highly leveraged.",investopedia,1,52.49,10.6,13,13.17,14,11.9,12.33333333,13.19
Gearing Ratio,"Gearing ratios are financial ratios that compare some form of owner's equity (or capital) to debt, or funds borrowed by the company. Gearing is a measurement of the entity’s financial leverage, which demonstrates the degree to which a firm's activities are funded by shareholders' funds versus creditors' funds.",investopedia,1,38.66,13.8,0,13.7,16.5,11.08,17,15.43
Gemini Exchange,"Founded in 2014, the Gemini Exchange, also known as the Gemini Trust Company, is the brainchild of Cameron and Tyler Winklevoss, the famous investors, twins, and Harvard classmates of Mark Zuckerberg.",investopedia,1,48.47,14.2,0,13.82,19.9,11.8,18.5,13.69
Gemology,"Gemology is the science of studying, cutting, and valuing precious stones, but the essence of gemology is in identifying the gemstones. One who works in the field of gemology is called a gemologist, and jewelers and goldsmiths also may be gemologists.",investopedia,1,50.67,11.3,0,11.72,13.1,10.43,13.75,13.08
General Account,The general account is where an insurer deposits premiums from policies it underwrites and from which it funds day-to-day operations of the business. The general account does not dedicate collateral to a specific policy and instead treats all funds in aggregate.,investopedia,1,21.4,20.5,0,14.75,24.8,10.68,16.25,25.18
General Agreement on Tariffs and Trade (GATT),"The General Agreement on Tariffs and Trade (GATT), signed on October 30, 1947, by 23 countries, was a legal agreement minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations. The GATT was intended to boost economic recovery after World War II through reconstructing and liberalizing global trade.",investopedia,1,-9.74,28.3,0,17.54,34.5,14.12,43.5,32.18
General Agreements to Borrow (GAB),"General Agreements to Borrow (GAB) was a lending medium for members of the Group of Ten (G-10). Under GAB, G-10 countries deposited funds into the International Monetary Fund (IMF) for a nation in economic distress to access. Usually, the loans made through GAB were temporary and designed to help address potential crisis situations.",investopedia,1,53.51,10.2,13,12.18,12.7,11.96,11.83333333,13.12
General and Administrative Expense (G&A),"General and administrative (G&A) expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department within the company. General expenses pertain to operational overhead expenses that impact the entire business. Administrative expenses are expenses that cannot be directly tied to a specific function within the company such as manufacturing, production, or sales. G&A expenses include rent, utilities, insurance, legal fees, and certain salaries.",investopedia,1,18.86,15.2,17.1,15.72,15.7,9.68,15.25,13.35
General Business Tax Credit,The general business tax credit is the total value of all the individual credits to be applied against income on a tax return. This credit can be carried forward for a number of years in most cases and can also be carried back in some cases.,investopedia,1,56.59,11.1,0,7.72,10.3,7.52,12.5,10.07
General Collateral Financing Trades (GCF),"General collateral financing (GCF) trades are a type of repurchase agreement (repo) that is executed without the designation of specific securities as collateral until the end of the trading day. GCF trades utilize several inter-dealer brokers, who act as intermediaries for the GCF trades. GCF trades allow both borrowers and lenders in the repo market to reduce their costs and decrease the complexity of handling securities and fund transfers for repo agreements.",investopedia,1,30.2,15,15.9,14.1,16.4,10.97,17,15.16
General Data Protection Regulation (GDPR),"The General Data Protection Regulation (GDPR) is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in the European Union (EU). Since the Regulation applies regardless of where websites are based, it must be heeded by all sites that attract European visitors, even if they don't specifically market goods or services to EU residents.",investopedia,1,31.04,16.8,0,14.05,19.9,11.97,23.25,20.22
General Equilibrium Theory,"General equilibrium theory, or Walrasian general equilibrium, attempts to explain the functioning of the macroeconomy as a whole, rather than as collections of individual market phenomena.",investopedia,1,-5.68,20.5,0,18.51,21.1,10.39,23,21.17
General Depreciation System (GDS),The general depreciation system is the most commonly used modified accelerated cost recovery system (MACRS) for calculating depreciation. A general depreciation system uses the declining balance method to depreciate personal property.,investopedia,1,-11.95,18.8,0,19.83,17.3,12.05,14.75,19.1
General Ledger,"A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance. It provides a record of each financial transaction that takes place during the life of an operating company and holds account information that is needed to prepare the company’s financial statements. Transaction data is segregated, by type, into accounts for assets, liabilities, owners’ equity, revenues, and expenses.",investopedia,1,22.45,15.9,17.5,15.55,17.4,11.56,18,16.18
General Manager (GM),"A general manager (GM) is responsible for all or part of a department's operations or the company's operations, including generating revenue and controlling costs. In small companies, the general manager may be one of the top executives. In hierarchical organizations, GMs rank above most employees but below corporate-level executives. The responsibility and importance associated with the position may vary among companies and often depend on the organization's structure.",investopedia,1,11.92,15.8,17.4,16.01,15.3,10.28,14.75,17.39
General Obligation Bond (GO),A general obligation bond (GO bond) is a municipal bond backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral.,investopedia,1,50.87,11.2,14.1,11.26,12.3,9.82,13.83333333,12.71
General Order (GO),"A general order (GO) is a status given to imported goods that are missing the proper documentation or cannot be quickly cleared through customs for other reasons. Merchandise may be held under general order if the proper duties, fees, or interest are not paid, if the owner fails to complete the required customs paperwork, or if it is not correctly or legally invoiced. Goods will be held under general order if they remain uncleared for more than 15 days.",investopedia,1,44.78,13.5,13,10.16,14.3,9.14,16.16666667,13.56
General Partner,A general partner is one of two or more investors who jointly own a business and assume a day-to-day role in managing it.,investopedia,1,56.59,11.1,0,7.2,10.3,8.21,14.5,10.94
General Partnership,"A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a jointly-owned business. In a general partnership, partners agree to unlimited liability, meaning liabilities are not capped and can be paid through the seizure of an owner's assets. Furthermore, any partner may be sued for the business's debts.",investopedia,1,41.4,12.8,15,12.82,14.5,9.87,15,13.52
General Provisions,"General provisions are balance sheet items representing funds set aside by a company as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord. General provisions on the balance sheets of financial firms are considered to be a higher risk asset because it is implicitly assumed that the underlying funds will be in default in the future.",investopedia,1,39.37,13.6,16.3,12.83,14.7,10.43,17,14.46
General Public Distribution Definition,"In finance, the term general public distribution refers to the process by which a private company becomes a publicly traded company by selling its shares to the public at large. This is in contrast to a conventional public distribution, in which the shares are sold largely to institutional investors.",investopedia,1,46.61,12.8,0,12.48,15.1,9.69,15.75,12.25
Generally Accepted Accounting Principles (GAAP),"Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the United States must follow GAAP when their accountants compile their financial statements. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information.",investopedia,1,18.05,15.5,17.7,18.1,17.8,10.75,16.125,17.07
Generally Accepted Auditing Standards (GAAS),"Generally accepted auditing standards (GAAS) are a set of systematic guidelines used by auditors when conducting audits on companies' financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of auditors' actions and reports. The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) created GAAS.",investopedia,1,20.38,14.6,17.1,17.11,16.5,12.84,14.5,19.35
Generally Accepted Principles And Practices (GAPP),"The generally accepted principles and practices (GAPP), which are also known as the Santiago principles, are standardized business procedures related to the operation of sovereign wealth funds (SWFs), which have agreed to pursue financial rather than political agendas and maintain a stable global financial system.",investopedia,1,0.42,24.4,0,17.48,29.4,13.24,35.5,27.78
Generation Gap,"A generation gap refers to the chasm that separates the thoughts expressed by members of two different generations. More specifically, a generation gap can be used to describe the differences in actions, beliefs, and tastes exhibited by members of younger generations versus older ones.",investopedia,1,40.69,13.1,0,14.1,15.6,11.55,15.5,14.25
Generation-Skipping Transfer Tax (GSTT),"The generation-skipping transfer tax is a federal tax that results when there is a transfer of property by gift or inheritance to a beneficiary who is at least 37½ years younger than the donor. Generation-skipping transfer taxes serve the purpose of ensuring that taxes are paid when assets are placed in a trust, and the beneficiary receives amounts in excess of the generation-skipping estate tax credit.",investopedia,1,37.98,16.2,0,12.78,19.4,10.54,21,16.84
Generation-Skipping Trust,"A generation-skipping trust (GST) is a type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, thus ""skipping"" the next generation, the grantor's children. By passing over the grantor's children, the assets avoid the estate taxes—taxes on an individual's property upon his or her death—that would apply if the children directly inherited them.",investopedia,1,40.52,15.2,0,14.98,20.6,10.59,19.75,16.13
Generation X (Gen X),"Generation X, which is sometimes shortened to Gen X, is the name given to the generation of Americans born between the mid-1960s and the early-1980s. The exact years that comprise Gen X vary. Some researchers—demographers William Straus and Neil Howe, for example—place the exact birth years from 1961 to 1981, whereas Gallup places the birth years between 1965 and 1979. But all agree that Gen X follows the baby boom generation and precedes Generation Y or the millennial generation. ",investopedia,1,59.64,9.9,11.7,12.18,13.1,10.55,12.25,10.5
Generic Brand,"The term generic brand refers to a type of consumer product on the market that lacks a widely recognized name or logo because it typically isn't advertised. Generic brands are usually less expensive than their brand name counterparts due to their lack of promotion, which can inflate the cost of a good or service. These brands, which are designed as substitutes for more expensive brand name goods, are especially common in the food and pharmaceutical industry and tend to be more popular during a recession.",investopedia,1,51.21,13.1,15.5,11.55,16.3,10.24,18.83333333,17.44
Genesis Block,"A Genesis Block is the name given to the first block a cryptocurrency, such as Bitcoin, ever mined. A blockchain consists of a series of so-called blocks that are used to store information related to transactions that occur on a blockchain network. Each of the blocks contains a unique header, and each such block is identified by its block header hash individually. These blocks get layered—one on top of the other, with the Genesis Block being the foundation—and they grow in height until the end of the blockchain is reached and the sequence is complete. The layers and deep history of each sequence is one of the things that makes a blockchain-based cryptocurrency so secure.",investopedia,1,59.16,12.2,12.6,11.44,16.3,9.18,12,14.3
Genetic Engineering,"Genetic engineering is the artificial modification of an organism’s genetic composition. Genetic engineering typically involves transferring genes from one organism into another organism of a different species to give the latter specific traits of the former. The resulting organism is called a transgenic or genetically modified organism, or GMO. Examples of such organisms include plants that are resistant to certain insects and plants that can withstand herbicides.",investopedia,1,20.58,14.6,17.4,16.88,15.3,11.54,14.625,16.87
Gentlemen's Agreements,"A gentlemen's agreement is an informal, often unwritten agreement or transaction backed only by the integrity of the counterparty to actually abide by its terms. An agreement such as this is generally informal, made orally, and is not legally binding.",investopedia,1,42.72,12.3,0,12.59,13.5,10.55,14.5,16
Gentrification,"Gentrification is the transformation of a city neighborhood from low value to high value. Gentrification is also viewed as a process of urban development in which a neighborhood or portion of a city develops rapidly in a short period of time, often as a result of urban-renewal programs. This process is often marked by inflated home prices and displacement of a neighborhood's previous residents.",investopedia,1,41.4,12.8,15.5,12.65,14,9.38,15.33333333,15.4
Genuine Progress Indicator (GPI),"A genuine progress indicator (GPI) is a metric used to measure the economic growth of a country. It is often considered an alternative metric to the more well-known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account but adds other figures that represent the cost of the negative effects related to economic activity, such as the cost of crime, cost of ozone depletion, and cost of resource depletion, among others.",investopedia,1,36.93,14.5,16.3,12.25,15.8,10.45,18.16666667,15.47
Geographical Diversification,"Diversification, generally speaking, is the practice of allocating money to a wide variety of investments so as to minimize risk. It's the financial equivalent of not putting all your eggs in one basket.",investopedia,1,37.81,12.1,0,11.6,11.2,10.2,12.25,16.3
Geographical Labor Mobility,Geographical labor mobility refers to the level of flexibility and freedom laborers have to move in order to find gainful employment in their field.,investopedia,1,30.2,15,0,13,15.1,10.09,17,17.93
Geographical Pricing,"Geographical pricing is the practice of adjusting an item's sale price based on the location of the buyer. Sometimes the difference in the sale price is based on the cost to ship the item to that location. But the difference may also be based on what amount the people in that location are willing to pay. Companies will try to maximize revenue in the markets in which they operate, and geographical pricing contributes to that goal.",investopedia,1,60.65,9.5,13,9.57,10.3,7.7,12.5,11.28
Geolocation,"Geolocation is the ability to track a device’s whereabouts using GPS, cell phone towers, WiFi access points or a combination of these. Since devices are used by individuals, geolocation uses positioning systems to track an individual’s whereabouts down to latitude and longitude coordinates, or more practically, a physical address. Both mobile and desktop devices can use geolocation.",investopedia,1,17.17,17.9,0,16.19,20.4,11.7,13.83333333,19.12
Geometric Mean,"The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio. It is technically defined as ""the nth root product of n numbers."" The geometric mean must be used when working with percentages, which are derived from values, while the standard arithmetic mean works with the values themselves.",investopedia,1,49.45,11.8,14.1,11.43,13.3,10.3,14.5,14.83
George Soros,"George Soros is a legendary hedge fund manager who is widely considered to be one of the most successful investors of all time. Soros managed the Quantum Fund, a fund that achieved an average annual return of 30% from 1970 to 2000. He remains the chair of Soros Fund Management LLC.",investopedia,1,71.14,7.6,11.2,8.35,8.6,10.67,10.5,10.72
Gharar,"Gharar is an Arabic word that is associated with uncertainty, deception, and risk. It has been described as ""the sale of what is not yet present,"" such as crops not yet harvested or fish not yet netted.",investopedia,1,69.62,8.1,0,7.78,9.1,8.82,11.25,11.72
Ghetto,"The term ghetto refers to an urban area with low property values and relatively little public or private investment. The word is slang and is generally considered an offensive stereotype because ghettos have historically been inhabited by racial minorities. Ghettos are also characterized by high unemployment, high rates of crime, inadequate municipal services, and high drop-out rates from schools. Urban neighborhoods classified as ghettos may be severely underpopulated with abandoned homes, or they may be densely populated with large families living in small spaces.",investopedia,1,33.24,13.8,15.6,15.95,16.5,11.63,15.25,17.45
G.I. Bill,"The GI Bill, also known as the Serviceman's Readjustment Act of 1944, was enacted by Congress and signed into law by former President Franklin D. Roosevelt to provide various benefits to World War II veterans. Today, the GI Bill refers to any U.S. Department of Veterans Affairs education benefit, such as education grants and stipends, earned by active-duty service members, veterans, and their families.",investopedia,1,46.78,10.7,14.2,12.18,11.7,11.83,11.75,13.28
Giffen Good,"A Giffen good is a low income, non-luxury product that defies standard economic and consumer demand theory. Demand for Giffen goods rises when the price rises and falls when the price falls. In econometrics, this results in an upward-sloping demand curve, contrary to the fundamental laws of demand which create a downward sloping demand curve.",investopedia,1,52.9,10.4,12.5,12.76,12.8,10.29,11.83333333,11.68
Gift Card,A gift card is a prepaid debit card that contains a specific amount of money available for use for a variety of purchases.,investopedia,1,56.59,11.1,0,7.96,10.6,9.58,14.5,14.42
Gift Causa Mortis,Gift causa mortis is a gift of personal property made with the expectation that the person giving the gift will soon die.,investopedia,1,57.61,10.7,0,8.82,11,8.32,14,14.25
Gift Letter,"A gift letter is a piece of legal, written correspondence explicitly stating that money received from a friend or relative is a gift. Gift letters for tax purposes often come into play when a borrower has received assistance in making a down payment on a new home or other real estate property. Such letters state that the money received is not expected to be paid back in any way, shape, or form.",investopedia,1,55.58,11.5,12.5,8.77,11.9,7.68,14.66666667,14.04
Gift in Trust,A gift in trust is a special legal and fiduciary arrangement that allows for an indirect bequest of assets to a beneficiary. The purpose of a gift in trust is to avoid the tax on gifts that exceed the annual gift tax exclusion limit. This type of trust is commonly used to transfer wealth to the next generation.,investopedia,1,60.35,9.6,12.5,7.89,9,10.04,12.33333333,13.24
Gift Inter Vivos,"A gift inter vivos, which means a gift between the living in Latin, is a legal term that refers to a transfer or gift made during the life of the grantor. Inter vivos gifts, which includes property related to an estate, are not subject to probate taxes since they are not part of the donor's estate at death. An inter vivos transfer is one made during the grantor's lifetime.",investopedia,1,73.51,8.7,7.8,8.07,11,8.67,12.16666667,10.36
Gift of Equity,"A gift of equity involves the sale of a residence to a family member, or someone with whom the seller has a close relationship, at a price below the current market value. The difference between the actual sales price and the market value of the home is the actual gift of equity. Most lenders allow the equity to be used toward a down payment.",investopedia,1,58.32,10.4,13,7.66,9.9,6.91,13.66666667,11.02
Gift Splitting,Gift splitting allows married couples to split the value of a gift between them to double their allowed annual gift tax exclusion amount. This is usually something done when helping someone out with a financial gift and the involved parties want to avoid the gift tax levied by the IRS.,investopedia,1,63.02,10.7,0,10.28,13.4,9.61,14.5,13.2
Gift Tax,"The gift tax is a federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, though they may pay an amount less than its full value.",investopedia,1,55.58,11.5,0,8.13,11.4,6.8,14.5,12.93
Gift Tax Return,A gift tax return is a federal tax return that must be filed under certain conditions by the giver of a gift. (It is not a tax on returning gifts.) The return is known as Form 709. ,investopedia,1,77.57,7.2,0,4.41,6.3,7.49,11,10.76
Gig Economy,"In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who often focus on their career development.",investopedia,1,26.3,14.4,0,16.65,16.6,11.89,16.25,19.08
Gilt-Edged Bond,"Gilt-edged securities are high-grade bonds issued by certain national governments and private organizations. In the past, these instruments referred to the certificates issued by the Bank of England (BOE) on behalf of the Majesty's Treasury, so named because the paper they were printed on customarily featured gilded edges.",investopedia,1,38.66,13.8,0,15.5,17.8,12.39,15.5,15.43
Gilt-Edged Securities,"Gilt-edged securities are high-grade bonds issued by certain national governments and private organizations. In the past, these instruments referred to the certificates issued by the Bank of England (BOE) on behalf of the Majesty's Treasury, so named because the paper they were printed on customarily featured gilded edges.",investopedia,1,38.66,13.8,0,15.5,17.8,12.39,15.5,15.43
Gilts,"Government bonds in the U.K., India, and several other Commonwealth countries are known as gilts. Gilts are the equivalent of U.S. Treasury securities in their respective countries. The term gilt is often used informally to describe any bond that has a very low risk of default and a correspondingly low rate of return. They are called gilts because the original certificates issued by the British government had gilded edges.",investopedia,1,57.47,8.7,11.6,11.36,9.9,10.04,8.1,10.16
Gini Index,"The Gini index, or Gini coefficient, is a measure of the distribution of income across a population developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. The coefficient ranges from 0 (or 0%) to 1 (or 100%), with 0 representing perfect equality and 1 representing perfect inequality. Values over 1 are theoretically possible due to negative income or wealth.",investopedia,1,25.8,14.6,16.2,12.59,13.8,9.56,15.25,15
GIP (Gibraltar Pound),"GIP is the abbreviation for the Gibraltar pound, the official currency for the country of Gibraltar. The Gibraltar pound is pegged at par value with the British pound sterling. The government of Gibraltar issues the GIP, and mints coins in £1, £2, £5, 1 pence, 2 pence, 5 pence, 10 pence, 20 pence and 50 pence, and it prints banknotes in £5, £10, £20, £50, and £100.",investopedia,1,74.22,8.4,9.7,7.84,11.1,9.93,12.5,10.71
Give Up,"Give up is a procedure in securities or commodities trading where an executing broker places a trade on behalf of another broker. It is called a ""give up"" because the broker executing the trade gives up credit for the transaction on the record books. A give up usually occurs because a broker cannot place a trade for a client based on other workplace obligations. A give up may also happen because the original broker is working on behalf of an interdealer broker or prime broker.",investopedia,1,49.86,11.6,12.6,9.4,11.2,8.97,13.375,12.76
Glass Ceiling,The glass ceiling is a metaphor referring to an invisible barrier that prevents women and minorities from being promoted to managerial- and executive-level positions within an organization. The phrase “glass ceiling” is used to describe the difficulties faced by women when trying to move to higher roles in a male-dominated hierarchy.,investopedia,1,20.21,16.8,0,14.86,17.6,11.09,18.75,19.61
Glass Cliff,"Glass cliff refers to a phenomenon wherein women tend to be promoted to positions of power during times of crisis or downturn when the chance of failure is more likely. The British researchers Michelle K. Ryan, Alexander Haslam, and Julie S. Ashby of the University of Exeter, United Kingdom, have been credited with coining this term based on their research on the 100 companies included in the Financial Times Stock Exchange (FTSE) 100 Index.",investopedia,1,69.62,8.1,11.2,11.49,11.8,11.38,11.25,11.72
Glide Path,"Glide path refers to a formula that defines the asset allocation mix of a target-date fund, based on the number of years to the target date. The glide path creates an asset allocation that typically becomes more conservative (i.e., includes more fixed-income assets and fewer equities) as a fund gets closer to the target date.",investopedia,1,43.56,14,0,10.74,15.7,11.03,17.75,14.64
Global Bond,"A global bond is a type of bond that can be traded in a domestic or European market. It is a bond issued and traded outside the country where the currency of the bond is denominated. This type of bond is issued by a non-European company but sells in a European country or any other foreign market. For example, a U.S. corporation can issue a bond in Europe. These bonds are sold in various maturities and credit qualities.",investopedia,1,55.64,9.4,12,7.42,7.2,9.07,10.2,10.86
Global Depositary Receipt (GDR),"A global depositary receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company. GDRs list shares in two or more markets, most frequently the U.S. market and the Euromarkets, with one fungible security.",investopedia,1,29.86,19.3,0,11.22,22.4,11.83,13.75,22.25
Global Financial Stability Report (GFSR),"The Global Financial Stability Report (GFSR) is a semiannual report by the International Monetary Fund (IMF) that assesses the stability of global financial markets and emerging-market financing. It is released twice per year, in April and October. The GFSR focuses on current conditions, especially financial and structural imbalances, that could risk an upset in global financial stability and access to financing by emerging-market countries. It emphasizes the ramifications of financial and economic imbalances that are highlighted in one of the IMF's other publications, the World Economic Outlook. Topics covered in the GFSR usually include systemic risk assessments in worldwide financial markets, worldwide debt management, emerging economic markets and current economic crises that could affect finances worldwide.",investopedia,1,22.55,15.9,18,17.53,18.9,10.64,16.2,15.83
Global Fund,A global fund is a fund that invests in companies located anywhere in the world including the investor’s own country. A global fund seeks to identify the best investments from a global universe of securities. Global funds may also be passively managed. A global fund can be focused on a single asset class or allocated to multiple asset classes.,investopedia,1,56.45,9.1,11.7,10.03,8.9,9.72,8.625,12.02
Global Industry Classification Standard (GICS),"The Global Industry Classification Standard (GICS) is a method for assigning companies to a specific economic sector and industry group that best defines its business operations. It is one of two rival systems that are used by investors, analysts, and economists to compare and contrast competing companies.",investopedia,1,30.7,14.8,0,14.51,16.5,11.52,17.75,17.91
Global Investment Performance Standards (GIPS),Global Investment Performance Standards (GIPS) are a set of voluntary standards used by investment managers throughout the world to ensure the full disclosure and fair representation of their investment performance. The goal of the standards is to make it possible for investors to compare one firm’s performance against that of another firm.,investopedia,1,36.63,14.6,0,15.03,17.9,9.18,18.5,14.25
Global Macro,"A global macro strategy is a hedge fund or mutual fund strategy that bases its holdings primarily on the overall economic and political views of various countries or their macroeconomic principles. Holdings may include long and short positions in various equity, fixed income, currency, commodities, and futures markets.",investopedia,1,30.2,15,0,15.38,17.5,13.05,19,19.6
Global Macro Hedge Fund,"Global macro hedge funds are actively managed funds that attempt to profit from broad market swings caused by political or economic events. Global macro hedge funds are market bets around economic events. Investors use financial instruments to create short or long positions based on the outcomes they predict as a result of their research. A market bet on an event can cover a wide variety of assets and instruments including options, futures, currencies, index funds, bonds, and commodities. The goal is to find the right mix of assets to maximize returns if the predicted outcome occurs.",investopedia,1,60.45,9.6,12.7,12.18,12.6,11,12.4,12.68
Global Recession,"A global recession is an extended period of economic decline around the world. A global recession involves more or less synchronized recessions across many national economies, as trade relations and international financial systems transmit economic shocks and the impact of recession from one country to another.",investopedia,1,31.21,14.6,0,16.31,17.4,10.96,18.5,17.9
Global Registered Share (GRS),"A global registered share (GRS), or a global share, is a security that is issued in the United States, but it is registered in multiple markets around the world and trades in multiple currencies. With global shares, identical shares may trade on different stock exchanges and in various currencies across country borders without needing to be converted into local currencies. All holders of global shares, as with any other shareholder, have equal rights—such as voting, percentage of dividends, and so forth—in the issuing corporation.",investopedia,1,43.06,14.2,17.1,13.81,18.3,9.72,20,16.91
Globalization,"Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.",investopedia,1,47.28,10.5,0,16.88,15.2,12.05,10.75,13.94
Globex,"Globex is an electronic trading platform—the first of its kind when it launched in 1992—used for derivatives like futures, options, and commodity contracts across a wide range of asset classes. Developed for the Chicago Mercantile Exchange (CME), CME Globex (as it is officially known) operates continuously, unrestricted by geographic borders or time zones.",investopedia,1,36.12,14.8,0,15.38,19,12.1,18.75,18.15
Glocalization,"Glocalization is a combination of the words ""globalization"" and ""localization."" The term is used to describe a product or service that is developed and distributed globally but is also adjusted to accommodate the user or consumer in a local market.",investopedia,1,34.26,13.5,0,12.3,13.3,10.16,14.5,17
GmbH,"GmbH is an abbreviation of the German phrase “Gesellschaft mit beschränkter Haftung,” which means ""company with limited liability."" It's a suffix used after a private limited company's name in Germany (versus AG, which is used to indicate a public limited company). GmbH is the equivalent of ""Ltd."" (limited) used in the U.K. and is the most common form of incorporation in Germany.",investopedia,1,42,12.5,14.6,11.14,13.3,10.52,14.33333333,12.8
Go-Go Fund,"Go-go fund is a slang name for a mutual fund that has an investment strategy focused on high-risk securities in an attempt to capture above average returns. A go-go fund's aggressive approach usually involves holding large positions in growth stocks. Growth stocks offer higher risks, but also higher potential returns.",investopedia,1,54.52,9.8,13,13.05,12.5,12.04,11.33333333,13.88
Go-Shop Period,A go-shop period is a provision that allows a public company to seek out competing offers even after it has already received a firm purchase offer. The original offer then functions as a floor for possible better offers. The duration of a go-shop period is usually about one to two months.,investopedia,1,54.22,9.9,13,9.05,9.2,8.5,11.5,11.51
Goal-Based Investing,"Goal-based investing is a relatively new approach to wealth management that emphasizes investing with the objective of attaining specific life goals. Goal-based investing (GBI) involves a wealth manager or investment firm’s clients measuring their progress towards specific life goals, such as saving for children’s education or building a retirement nest-egg, rather than focusing on generating the highest possible portfolio return or beating the market.",investopedia,1,22.08,18.1,0,18.46,23.8,11.39,25.5,21.55
Goal Seeking,Goal seeking is the process of finding the correct input value when only the output is known. The function of goal seeking can be built into different kinds of computer software programs like Microsoft Excel.,investopedia,1,62.17,8.9,0,10.9,10.7,9.92,10.25,9.29
Godfather Offer,"A Godfather offer is an irrefutable takeover bid made to a target company by an acquirer. Typically, the offer is priced at an extremely generous premium compared with the target's prevailing share price, making it difficult for management to reject the bid without angering shareholders and being accused of breaching their fiduciary duty.",investopedia,1,27.66,16,0,13.99,17.4,11.21,19.75,19.66
Going Concern,"Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy. If a business is not a going concern, it means it's gone bankrupt and its assets were liquidated. As an example, many dot-coms are no longer going concern companies after the tech bust in the late 1990s.",investopedia,1,59.33,10,13,9.92,11.3,9.71,13.125,13.55
Going-Concern Value,"Going concern value is a value that assumes the company will remain in business indefinitely and continue to be profitable. Going concern value is also known as total value. This differs from the value that would be realized if its assets were liquidated—the liquidation value—because an ongoing operation has the ability to continue to earn a profit, which contributes to its value. A company should always be considered a going concern unless there is a good reason to believe that it will be going out of business.",investopedia,1,40.89,13,13.8,11.14,12.8,7.8,14.375,13.32
Going Private,"The term going private refers to a transaction or series of transactions that convert a publicly traded company into a private entity. Once a company goes private, its shareholders are no longer able to trade their shares in the open market.",investopedia,1,59.13,10.1,0,10.73,11.9,9.27,13.25,12.1
Going Public,"Going public is the process of selling shares that were formerly held privately and are now available to new investors for the first time, otherwise known as an initial public offering (IPO).",investopedia,1,47.46,14.6,0,11.62,18.1,10.16,20,16.55
Gold Bug,"In economics, the term “gold bug” is a colloquial expression used to refer to people that are particularly bullish on gold.",investopedia,1,50.16,11.5,0,10.62,12.1,9.19,14.5,16.02
Gold Certificate,"A gold certificate is a paper document that represents a claim on a specified amount or value of gold. When the U.S. dollar was tied to the gold standard, gold certificates were worth their face value in U.S. dollars and could be used as legal tender. Gold certificates are still issued to investors as proof of ownership of gold stored by a bank.",investopedia,1,67.08,9.1,11.9,8.24,10.4,9.19,12.83333333,12.21
Gold Option,A gold option is an options contract that utilizes either physical gold or gold futures as its underlying asset.,investopedia,1,52.19,10.7,0,11.08,11.4,11.23,11.5,11.81
Gold Standard,"The gold standard is a fixed monetary regime under which the government's currency is fixed and may be freely converted into gold. It can also refer to a freely competitive monetary system in which gold or bank receipts for gold act as the principal medium of exchange; or to a standard of international trade, wherein some or all countries fix their exchange rate based on the relative gold parity values between individual currencies.",investopedia,1,34.43,17.5,0,11.85,20.3,10.42,24.25,20.63
Golden Cross,"The golden cross is a chart pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average. The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as the 50-day moving average) or resistance level. As long-term indicators carry more weight, the golden cross indicates a bull market on the horizon and is reinforced by high trading volumes.",investopedia,1,42.04,14.6,15,13.12,18.1,9.07,18.83333333,15.28
Golden Handcuffs,Golden handcuffs are a collection of financial incentives that are intended to encourage employees to remain with a company for a stipulated period of time. Golden handcuffs are offered by employers to existing key employees as a means of holding onto them as well as to increase employee retention rates. Golden handcuffs are common in industries where highly-compensated employees are likely to move from one company to another.,investopedia,1,31.51,14.5,17.5,13.64,15.1,9.87,17.66666667,17.32
Golden Handshake,"A golden handshake is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. It is usually provided to top executives in the event that they lose employment because of retirement, layoffs, or for negligence. However, payment can be made in several ways, such as cash or stock options.",investopedia,1,42,12.5,15.5,11.84,13.1,9.5,15,15.38
Golden Parachute,"A golden parachute consists of substantial benefits given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the merger or takeover. Golden parachutes are contracts with key executives and can be used as a type of anti-takeover measure, often collectively referred to as poison pills, taken by a firm to discourage an unwanted takeover attempt. Benefits may include stock options, cash bonuses, and generous severance pay.",investopedia,1,36.63,14.6,15.9,12.6,16.2,9.99,18,15.02
Golden Rule,"The golden rule, as it pertains to fiscal policy, stipulates that a government must only borrow in order to invest, and not to finance existing spending. In other words, the government should borrow money only to fund investments that will benefit future generations, while current spending must be covered and funded by existing or new taxes.",investopedia,1,34.6,15.4,0,12.13,16.8,10.1,18.5,15.49
Golden Share,"A golden share is a type of share that gives its shareholder veto power over changes to the company's charter. It holds special voting rights, giving its holder the ability to block another shareholder from taking more than a ratio of ordinary shares.",investopedia,1,58.11,10.5,0,10.39,12.2,10.21,13.75,12.32
Goldilocks Economy,"A Goldilocks economy is not too hot or too cold but just right—to steal a line from the popular children's story Goldilocks and the Three Bears. The term describes an ideal state for an economic system. In this perfect state, there is full employment, economic stability, and stable growth. The economy is not expanding or contracting by a large margin.",investopedia,1,64.71,8,11.7,9.79,9.1,8.33,8.75,10.67
Good Credit,"Good credit is a classification for an individual's credit history, indicating the borrower has a relatively high credit score and is a safe credit risk. Credit scores are provided through credit reporting agencies. Lenders check credit scores for the purpose of providing credit underwriting decisions and background check details.",investopedia,1,38.01,12,14.1,15.43,14.1,9.92,11.83333333,14.68
Good Delivery,"Good delivery refers to the unhindered transfer of ownership of a security from a seller to a buyer, with all necessary requirements having been met.",investopedia,1,37.64,14.2,0,11.55,14.6,11.19,18.5,19.6
Good Faith Estimate (GFE),"A good faith estimate (GFE) is a document that outlines the estimated costs and terms of a reverse mortgage loan offer, enabling borrowers to comparison shop among different lenders and choose the deal that best fits their needs.",investopedia,1,41.37,16.9,0,12.02,21.4,11.34,25,20.46
Good Faith Money,Good faith money is a deposit of money into an account by a buyer to show that they have the intention of completing a deal. Good faith money is often later applied to the purchase but may be non-refundable if the deal does not go through.,investopedia,1,65.05,9.9,0,7.2,10,7.52,13,11.81
Good This Week (GTW),"Good This Week (GTW) is a type of market order in which the order remains active until the end of the week in which it is issued. If the order is not executed prior to the end of the week, it will be cancelled.",investopedia,1,74.53,8.3,0,4.06,7.5,7.6,11.5,9.71
Good 'Til Canceled (GTC),Good ’til canceled (GTC) describes a type of order that an investor may place to buy or sell a security that remains active until either the order is filled or the investor cancels it. Brokerages will typically limit the maximum time you can keep a GTC order open (active) to 90 days.,investopedia,1,62.01,11.1,0,8.42,12.8,10.09,15,13.48
Goodness-of-Fit,"The goodness-of-fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. Put differently, this test shows if your sample data represents the data you would expect to find in the actual population or if it is somehow skewed. Goodness-of-fit establishes the discrepancy between the observed values and those that would be expected of the model in a normal distribution case.",investopedia,1,29.89,15.1,15.9,12.42,15.1,8.74,17.16666667,15.2
Goods and Services Tax (GST),"The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.",investopedia,1,67.59,8.9,0,9.46,11.2,8.5,12.75,12.1
Goodwill,"Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists.",investopedia,1,36.93,14.5,15.5,12.83,16.1,9.83,17.5,15.99
Goodwill Impairment,"Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on financial statements exceeds its fair value. In accounting, goodwill is recorded after a company acquires assets and liabilities, and pays a price in excess of their identifiable net value.",investopedia,1,32.73,14,0,15.37,16.4,10.58,15.25,15.11
Google Blogger,"Google Blogger is a free, blog-publishing service hosted by Google. It was developed by Pyra Labs and purchased by Google in 2003. The blogs are generally accessed from the subdomain of ""blogspot.com.""",investopedia,1,69.07,6.3,9.7,10.88,8.9,12.06,5.666666667,9.28
Google Tax,"A Google tax, also known as a diverted profits tax, refers to anti-avoidance tax provisions that have been introduced in several jurisdictions to deal with the practice of profits or royalties being diverted to other jurisdictions that have lower or zero tax rates. For example, internet giant Alphabet Inc.'s (GOOGL) Google paid a negligible amount as tax in the United Kingdom by completing its transactions in the low tax capital city of Dublin, Ireland, even though the revenue of $6.5 billion was earned in the UK.",investopedia,1,27.83,20.1,0,12.14,24,11.46,29.5,22.32
Gordon Gekko,"Gordon Gekko is a fictional character who appears as the villain in the popular 1987 Oliver Stone movie ""Wall Street"" and its 2010 sequel ""Wall Street: Money Never Sleeps."" The character, a ruthless and wildly wealthy investor and corporate raider, has become a cultural symbol for greed, as epitomized by the famous ""Wall Street"" quote ""Greed is good.""",investopedia,1,50.5,13.4,0,11.62,17.2,11.61,18,15.74
Gordon Growth Model,"The Gordon Growth Model (GGM) is used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. It is a popular and straightforward variant of the dividend discount model (DDM). The GGM assumes that dividends grow at a constant rate in perpetuity and solves for the present value of the infinite series of future dividends. Because the model assumes a constant growth rate, it is generally only used for companies with stable growth rates in dividends per share.",investopedia,1,49.79,13.7,15,10.69,16.1,9.55,14.375,16.37
"Governance, Risk Management, and Compliance (GRC)","Governance, risk management, and compliance (GRC) is a relatively new corporate management system that integrates these three crucial functions into the processes of every department within an organization.",investopedia,1,9.22,18.9,0,19.03,22.7,13.48,24,24.06
Government Accountability Office (GAO),"The Government Accountability Office (GAO) is an independent and non-partisan U.S. legislative agency that monitors and audits government spending and operations. Often called the ""congressional watchdog,"" GAO examines how taxpayer dollars are spent and provides recommendations on how to save the government money or operate more fiscally responsibly.",investopedia,1,13.28,17.4,0,18.69,20.5,12.72,20,20.43
Government Accounting Standards Board (GASB),"The Government Accounting Standards Board (GASB) is a private non-governmental organization that creates accounting reporting standards, or generally accepted accounting principles (GAAP), for state and local governments in the United States.",investopedia,1,6.17,20.1,0,21.48,26.3,12.81,26.5,22.72
Government Bond,A government bond is a debt security issued by a government to support government spending and obligations. Government bonds can pay periodic interest payments called coupon payments. Government bonds issued by national governments are often considered low-risk investments since the issuing government backs them.,investopedia,1,31.17,12.6,15.9,17.33,14.9,11.54,12.33333333,14.06
Government Grant,"A government grant is a financial award given by a federal, state, or local government authority for a beneficial project. It is effectively a transfer payment. A grant does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money but is expected to use the funds from the grant for their stated purpose, which typically serves some larger good.",investopedia,1,42.21,12.5,14.9,11.66,12.9,9.85,14.5,14.05
Government National Mortgage Association (Ginnie Mae),The term Government National Mortgage Association refers to a federal government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBSs) issued by approved lenders. The association is commonly known as Ginnie Mae and is abbreviated to GNMA. Ginnie Mae's assurance allows mortgage lenders to obtain a better price for MBSs in the capital markets.,investopedia,1,26.1,14.5,16.3,15.66,15.7,11.57,15.16666667,15.34
Government of Singapore Investment Corporation (GIC),"The Government of Singapore Investment Corporation (GIC) is a government-owned company assigned to manage Singapore's sovereign wealth fund. The fund is now officially named: GIC Private Limited. The GIC was formed in 1981 with the aim to invest the sovereign wealth fund more aggressively in higher yielding asset classes and over a longer investment horizon. According to the Sovereign Wealth Fund Institute, the GICS controls the eighth largest sovereign wealth fund in the world, with $390 billion in assets under management as of mid-2018.[cite]",investopedia,1,50.16,11.5,15.2,13.92,15.3,11.45,15,13.64
Government Pension Fund of Norway,"The Government Pension Fund of Norway is made up of two separate Norwegian investment funds with different mandates. The first is the Government Pension Fund Global (GPFG), also known as the Oil Fund. Established in 1990 to invest surplus revenues of the Norwegian petroleum sector, the GPFG is the world’s largest sovereign wealth fund. It also holds real estate and fixed-income investments.",investopedia,1,50.46,11.4,14.6,13.58,14.7,10.52,14.33333333,12.15
Government Purchase,"Government purchases are expenditures on goods and services by federal, state, and local governments. The combined total of this spending, excluding transfer payments and interest on the debt, is a key factor in determining a nation's gross domestic product (GDP). Transfer payments are expenditures that do not involve purchases, such as Social Security payments and farm subsidies.",investopedia,1,35.27,13.1,15,14.85,15.1,11.5,13.83333333,14.62
Government Securities Clearing Corporation (GSCC),The Government Securities Clearing Corporation (GSCC) was a non-profit organization that cleared and netted U.S. government securities and agency debt securities. The GSCC was first established in 1986 by the National Securities Clearing Corporation (NSCC) to provide clearing and settlement of U.S. government securities. The GSCC handles both new issues and the reselling of government securities.,investopedia,1,27.11,14.1,16.7,17.11,16.8,10.49,15,11.05
Government Security,"In the investing world, government security applies to a range of investment products offered by a governmental body. For most readers, the most common type of government security are those items issued by the U.S. Treasury in the form of Treasury bond, bills, and notes. However, the governments of many nations will issue these debt instruments to fund ongoing, necessary, operations.",investopedia,1,47.49,10.4,13.4,12,11.3,11.64,10.875,12.02
Government Shutdown,A government shutdown happens when nonessential U.S. government offices can no longer remain open due to a lack of funding. The lack of funding usually occurs when there is a delay in the approval of the federal budget that will finance the government for the upcoming fiscal year. The shutdown remains in effect until funding legislation is passed.,investopedia,1,42.04,14.6,0,12.14,16.9,11.06,12,14.36
Government-Sponsored Enterprise,"A government-sponsored enterprise (GSE) is a quasi-governmental entity established to enhance the flow of credit to specific sectors of the American economy. Created by acts of Congress, these agencies–although they are privately-held–provide public financial services. GSEs help to facilitate borrowing for a variety of individuals, including students, farmers, and homeowners.",investopedia,1,20.68,14.5,16.7,19.2,17.9,13.62,14,18.68
Government-Sponsored Retirement Arrangement (GSRA),"A Government-Sponsored Retirement Arrangement (GSRA) is a Canadian retirement plan for individuals who are not employees of a local, provincial or federal government body, but who are paid for their services from public funds. This type of retirement plan is not registered with the Canadian Revenue Agency and does not thus qualify for tax-deferred status.",investopedia,1,35.1,15.2,0,14.1,18.3,10.74,20.75,17.55
Government-Wide Acquisition Contract,"A government-wide acquisition contract (GWAC) is a contract in which multiple government agencies align their needs and purchase a contract for goods or services. Government-wide acquisition contracts (GWACs) allow for economies of scale, which usually reduce per-unit costs.",investopedia,1,43.73,11.9,0,17.52,17.6,12.06,13,10.76
Grace Period,"A grace period is a set length of time after the due date during which payment may be made without penalty. A grace period, typically of 15 days, is commonly included in mortgage loan and insurance contracts.",investopedia,1,61.16,9.3,0,9.05,9.7,9.25,12.25,12.81
Graded Vesting,"Graded vesting is the process by which employees gain, over time, ownership of employer contributions made to the employee's retirement plan account, traditional pension benefits, or stock options. Graded vesting differs from cliff vesting, in which employees become fully vested following an initial period of service; and immediate vesting, in which contributions are owned by the employee as soon as they start the job.",investopedia,1,30.54,17,0,15.04,21.1,10.16,23,19.68
Graduate Management Admission Test (GMAT),"The GMAT, which stands for the graduate management admission test, is a standardized test intended to measure a test taker's aptitude in mathematics, verbal skills, and analytical writing. The GMAT is most commonly used as the primary exam reviewed by business schools to gain entrance into an MBA program. The exam is generally offered by computer only; in areas of the world where computer networks are limited, the exam may be given as a paper-based test.",investopedia,1,37.34,14.3,15.9,11.38,15,10.71,17.66666667,16.96
Graduated Lease,"A graduated lease is an agreement under which a tenant and landlord agree to a periodic adjustment of monthly payments. For example, the agreement may reflect an increase in the tenant’s payments due to market conditions or an increase in the value of the leased property.",investopedia,1,48.13,12.3,0,11.26,13.3,10.27,15,15.29
Graduated Payment Mortgage (GPM),"A graduated payment mortgage (GPM) is a type of fixed-rate mortgage in which the payments increase gradually from an initial low base level to a higher final level. Typically, the payments will grow between 7-12 percent annually from their initial base payment amount until the full monthly payment amount is reached.",investopedia,1,45.59,13.2,0,13.18,16.4,10.47,14.75,13.34
Graham Number,The Graham number (or Benjamin Graham's number) measures a stock's fundamental value by taking into account the company's earnings per share (EPS) and book value per share (BVPS).,investopedia,1,43.06,14.2,0,12.42,18.1,11.23,16,14.06
Gramm-Leach-Bliley Act of 1999 (GLBA),"The Gramm-Leach-Bliley Act of 1999 (GLBA) was a bi-partisan regulation under President Bill Clinton, passed by Congress on November 12, 1999. The GLBA was an attempt to update and modernize the financial industry. The GLBA is most well-known as the repeal of the Glass-Steagall Act of 1933, which stated that commercial banks were not allowed to offer financial services—like investments and insurance-related services—as part of normal operations.",investopedia,1,40.38,13.2,15.5,15.03,16.7,12.05,15.83333333,15.49
Grandfather Clause,"A grandfather clause is an exemption that allows persons or entities to continue with activities or operations that were approved before the implementation of new rules, regulations, or laws. Such allowances can be permanent, temporary, or instituted with limits.",investopedia,1,26.3,14.4,0,15.32,15.5,11.89,15.25,18.06
Grant,"A grant is an award, usually financial, given by one entity (typically a company, foundation, or government) to an individual or a company to facilitate a goal or incentivize performance. Grants are essentially gifts that do not have to be paid back, under most conditions. These can include education loans, research money, and stock options. Some grants have waiting periods—called lock-up or vesting periods—before the grantee can take full ownership of the financial reward.",investopedia,1,35.78,12.9,15.6,13.75,13.9,10.1,14,14.97
Grant Deed,"A grant deed is a legal document used to transfer ownership of real property. The grantor is the person transferring the property, and each grantor must sign the deed. The grant deed is an official record that indicates a title has not already been granted to another person.",investopedia,1,63.7,8.4,12.5,9.51,8.9,8.05,10.66666667,11.4
Grant-in-Aid,"A federal grant is financial aid awarded to fund a specific project or program. Recipients include state, local, and municipal governments, as well as individuals. Federal grants in aid are funded with money from income tax revenues. These grants are not loans; therefore, no repayment is required, but funds must be spent according to the federal government's guidelines for that particular grant.",investopedia,1,47.28,10.5,13.4,12.93,11.9,11.03,11,13.3
Grantee,"A grantee is the recipient of a grant, scholarship, or some other asset such as real estate property. In contrast, a grantor is a person or entity that conveys ownership of an asset to another person or entity: the grantee. Identifying the grantee and grantor is especially important in legal documents as specific duties, responsibilities, benefits, and limitations are assigned to each.",investopedia,1,33.54,13.7,15.9,12.36,13.7,10.27,15.33333333,16.02
Grantor,"A grantor is an individual or other entity that creates a trust (i.e., the individual whose assets are put into the trust) regardless of whether the grantor also functions as the trustee. The grantor may also be referred to as the settlor, trustmaker, or trustor.",investopedia,1,57.1,10.9,0,10.22,12.9,9.66,14.25,13.44
Grantor Trust Rules,"Grantor trust rules are guidelines within the Internal Revenue Code (IRC) that outline certain tax implications of a grantor trust. Under these rules, the individual who creates a grantor trust is recognized as the owner of the assets and property held within the trust for income and estate tax purposes.",investopedia,1,29.19,21.6,0,12.84,27.8,11.17,15.5,24.8
Granular Portfolio,"A granular portfolio is an investment portfolio that is well diversified across a wide variety of assets, typically with a significant number of holdings. Because this type of portfolio contains a large number of positions in different asset classes and/or sectors, it is considered to have a lower overall risk profile. Conversely, portfolios that have ""low granularity"" have fewer positions or contain highly correlated assets. They are less diversified and have a higher overall risk profile.",investopedia,1,35.27,13.1,15.2,14.33,14.4,10.4,14,14.44
Graphics Processing Unit (GPU),A Graphics Processing Unit (GPU) is a chip or electronic circuit capable of rendering graphics for display on an electronic device. The GPU was introduced to the wider market in 1999 and is best known for its use in providing the smooth graphics that consumers expect in modern videos and games.,investopedia,1,54.05,12.1,0,10.57,14,10.47,16.25,14.91
Grantor Retained Annuity Trust (GRAT),"A grantor retained annuity trust (GRAT) is a financial instrument used in estate planning to minimize taxes on large financial gifts to family members. Under these plans, an irrevocable trust is created for a certain term or period of time. The individual establishing the trust pays a tax when the trust is established. Assets are placed under the trust and then an annuity is paid out every year. When the trust expires the beneficiary receives the assets tax-free.",investopedia,1,55.64,9.4,12.7,10.73,9.9,9.47,10.6,11.88
Gravestone Doji,"A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance in the beginning of the session was overcome by bears by the end of the session, which often comes just before a longer term bearish downtrend.",investopedia,1,55.92,13.4,0,10.05,16.7,9.42,17.5,13.43
Gray Box,Gray box refers to the testing of software where there is some limited knowledge of its internal workings. Gray box testing is an ethical hacking technique where the hacker has to use limited information to identify the strengths and weaknesses of a target's security network.,investopedia,1,48.64,12.1,0,12.54,14.1,11.07,15.25,15.22
Gray List,"A gray list is a list of stocks that are ineligible for trade by an investment bank's risk arbitrage division. Securities on the gray list aren’t necessarily exceptionally risky or otherwise inherently flawed, but are nonetheless restricted. In such cases, the gray list can include those firms working with the investment bank, often in matters of mergers and acquisitions. Once the firms in question have completed this business, the stocks may be taken off the gray list, allowing the bank to trade them once again.",investopedia,1,49.86,11.6,14.2,11.66,13.3,9.34,14.375,14.64
Gray Market,"A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. The gray market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market (i.e., it trades securities that will be offered in the very near future). The gray market is an unofficial one but is not illegal.",investopedia,1,49.35,11.8,13,10.21,12.4,8.71,13.875,12.86
Graduate Record Examination (GRE),"The graduate record examination (GRE) is a standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics, and vocabulary. The GRE is commonly used by many graduate schools in the U.S. and Canada to determine an applicant's eligibility for the program.",investopedia,1,21.74,16.2,0,13.35,16.2,12.06,18,18.77
Great Leap Forward,"The Great Leap Forward was a five-year plan of forced agricultural collectivization and rural industrialization that was instituted by the Chinese Communist Party in 1958, which resulted in a sharp contraction in the Chinese economy and between 30 to 55 million deaths by starvation, execution, torture, forced labor, and suicide out of desperation. It was the largest single, non-wartime campaign of mass killing in human history. The initiative was led by Mao Zedong, also known as Mao Tse-tung and Chair Mao. Mao’s official goal was to rapidly evolve China from an agrarian economy into a modern industrial society with greater ability to compete with Western industrialized nations.",investopedia,1,35.81,14.9,15.9,13.7,17.5,11.61,17,17.45
Great Moderation,"The Great Moderation is the name given to the period of decreased macroeconomic volatility experienced in the United States starting in the 1980s. During this period, the standard deviation of quarterly real gross domestic product (GDP) declined by half and the standard deviation of inflation declined by two-thirds according to figures reported by U.S. Federal Reserve Chair Ben Bernanke. The Great Moderation can be summed up as a multi-decade period of low inflation and positive economic growth.",investopedia,1,34.97,13.2,15.9,13.92,14.1,11.36,14.625,14.99
Great Recession,"The Great Recession was the sharp decline in economic activity during the late 2000s. It is considered the most significant downturn since the Great Depression. The term Great Recession applies to both the U.S. recession, officially lasting from December 2007 to June 2009, and the ensuing global recession in 2009. The economic slump began when the U.S. housing market went from boom to bust, and large amounts of mortgage-backed securities (MBS's) and derivatives lost significant value.",investopedia,1,43.73,11.9,14.9,13.23,13.8,10.19,13.75,12.86
Great Society,"The Great Society was a set of domestic policy initiatives, programs, and legislation that were introduced in the 1960s in the U.S. These policies were intended to reduce poverty levels, reduce racial injustice, reduce crime, and improve the environment. Great Society policies were launched by then-President Lyndon B. Johnson between 1964 and 1965.",investopedia,1,57.98,8.5,12.6,13.79,12.1,12.04,8.375,12.87
Greater Fool Theory,"The greater fool theory argues that prices go up because people are able to sell overpriced securities to a ""greater fool,"" whether or not they are overvalued. That is, of course, until there are no greater fools left.",investopedia,1,77.57,7.2,0,9.28,10.5,8.32,11,10.76
Greek Drachma,"The Greek drachma is the former basic unit of currency in Greece. The Greek drachma was also an ancient currency unit used in many Greek city-states. The drachma was reintroduced in 1832, following the creation of the modern country of Greece, where it replaced the phoenix, the first currency of modern Greece introduced in 1828. In 2002, the drachma was subsequently replaced by the Euro and ceased to be legal tender.",investopedia,1,61.87,9.1,10.7,10.38,10.7,9.41,10.625,9.37
Green Bond,"A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.​",investopedia,1,38.66,13.8,0,14.34,16.6,12.39,17,17.1
Green Card,"A green card is a colloquial name for the identification card issued by U.S. Citizenship and Immigration Services to permanent residents, who are legally allowed to live and work in the U.S. indefinitely. Green cards got their nickname because they were green in color from 1946 to 1964. In 2010 they became green again, but the nickname persisted during the intervening decades of blue, pink and yellow ""green cards.""",investopedia,1,62.38,8.9,11.7,10.84,11.1,9.3,10.875,12.14
Green Chip Stocks,"Green chip stocks are shares of environmentally-friendly companies. Green chip stocks are likely to be concentrated in areas such as alternative energy, pollution control, carbon abatement, and recycling.",investopedia,1,31.89,12.3,0,17.57,15.3,11.66,10.5,15.6
Green-Field Investment,"A green-field (also ""greenfield"") investment is a type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its operations from the ground up. In addition to the construction of new production facilities, these projects can also include the building of new distribution hubs, offices, and living quarters.",investopedia,1,34.6,15.4,0,14.1,18.9,10.1,19,16.2
Green Fund,"A green fund is a mutual fund or another investment vehicle that will only invest in companies that are deemed socially conscious in their business dealings or directly promote environmental responsibility. A green fund can come in the form of a focused investment vehicle for companies engaged in environmentally supportive businesses, such as alternative energy, green transport, water and waste management, and sustainable living.",investopedia,1,13.62,19.3,0,16.37,21.9,11.14,25.5,22.18
Green Investing,"Often conflated with socially responsible investing (SRI), green investments are investment activities that focus on companies or projects committed to the conservation of natural resources, the production and discovery of alternative energy sources, the implementation of clean air and water projects, or other environmentally conscious business practices. Green investments may fit under the umbrella of SRI, but they are fundamentally much more specific.",investopedia,1,5.66,20.3,0,18.92,23.9,11.72,26.25,24.66
Green Marketing,Green marketing refers to the practice of developing and advertising products based on their real or perceived environmental sustainability.,investopedia,1,9.89,16.6,0,19.67,18.3,12.89,14.5,18.13
Green Monday,"Green Monday refers to one of the retail industry's most profitable days, occurring on the second Monday in December. Green Monday has gained notoriety because it represents the day many online shoppers rush to purchase last-minute gifts and take advantage of deals.",investopedia,1,50.16,11.5,0,13.11,14.3,10.32,13.5,13.16
Green Tech,"Green tech refers to a type of technology that is considered environmentally friendly based on its production process or its supply chain. Green tech–which is an abbreviation of ""green technology""–can also refer to clean energy production; clean energy production is the use of alternative fuels and technologies that are less harmful to the environment than fossil fuels.",investopedia,1,25.63,16.8,0,14.74,19,10.31,20.75,17.72
Greenback,"A greenback is a slang term for U.S. paper dollars that originated from the backs of the bills being printed in green ink. In the mid-1800s, the Continental Congress did not have taxing authority. The ""greenback"" was a negative term because they did not have secure financial backing authority and banks were reluctant to give customers the full value of the dollar.",investopedia,1,58.92,10.2,11.9,10.5,12.2,10.27,12.66666667,12.15
Greenmail,"Greenmail is the practice of buying enough shares in a company to threaten a hostile takeover so that the target company will instead repurchase its shares at a premium. Regarding mergers and acquisitions, the company makes a greenmail payment as a defensive measure to stop the takeover bid. The target company must repurchase the stock at a substantial premium to thwart the takeover, which results in a considerable profit for the greenmailer.",investopedia,1,47.12,12.7,15.5,12.83,15.1,9.43,16.66666667,14.04
Greensheet,"A greensheet is a document prepared by an underwriter to summarize the main components of a new issue or initial public offering (IPO). Such documents are for internal use only, functioning as a marketing tool to help drum up interest from prospective institutional investors and brokers.",investopedia,1,39.67,13.4,0,13.29,15.2,11.64,17,18.77
Greenshoe Option,"A greenshoe option is an over-allotment option. In the context of an initial public offering (IPO), it is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.",investopedia,1,45.09,13.4,0,11.9,15.6,11.91,17,16.55
Greenspan Put,"Greenspan put was the moniker given to the policies implemented by Alan Greenspan during his tenure as Federal Reserve (Fed) Chair. The Greenspan-led Fed was extremely proactive in halting excessive stock market declines, acting as a form of insurance against losses, similar to a regular put option.",investopedia,1,47.62,12.5,0,13.52,15.8,11.19,15.25,15.36
Greenwashing,Greenwashing is the process of conveying a false impression or providing misleading information about how a company's products are more environmentally sound. Greenwashing is considered an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally friendly.,investopedia,1,8.88,17,0,20.3,19.6,10.94,17,19
Gresham's Law,"Gresham's law is a monetary principle stating that ""bad money drives out good."" It is primarily used for consideration and application in currency markets. Gresham’s law was originally based on the composition of minted coins and the value of the precious metals used in them. However, since the abandonment of metallic currency standards, the theory has been applied to the relative stability of different currencies' value in global markets.",investopedia,1,37,12.4,14.6,13.11,12.8,10.67,12.625,14.46
Grexit,"Grexit, an abbreviation for ""Greek exit,"" refers to Greece's potential withdrawal from the Euro-zone, and a return to the Drachma as its official currency instead of the Euro.",investopedia,1,34.6,15.4,0,12.02,17.5,11.79,20,18.34
Grey Market,"A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. The gray market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market (i.e., it trades securities that will be offered in the very near future). The gray market is an unofficial one but is not illegal.",investopedia,1,49.35,11.8,13,10.21,12.4,8.71,13.875,12.86
Grid Trading,"Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. Grid trading is most commonly associated with the foreign exchange market. Overall the technique seeks to capitalize on normal price volatility in an asset by placing buy and sell orders at certain regular intervals above and below a predefined base price.",investopedia,1,40.99,12.9,14.1,12.42,13.8,10.3,14.5,15.45
Grinder,"A grinder is a slang term for a person who works in the investment industry and makes only small amounts of money at a time on small investments, over and over again. Grinders typically are hard working and highly respected investors who value every cent they make off their investments. Grinders who are investment advisors tend to keep in regular contact with their clients.",investopedia,1,66.78,9.2,13,10.73,12.3,9.38,13.66666667,12.9
Gross Debt Service Ratio (GDS),The gross debt service (GDS) ratio is a debt service measure that financial lenders use to assess the proportion of housing debt that a borrower is paying in comparison to their income. The gross debt service ratio is one of several metrics used to qualify borrowers for a mortgage loan and determine the amount of principal offered.,investopedia,1,42.55,14.4,0,10.8,15.7,10.31,18.75,17.01
Gross Dividends,"Similar in concept to gross income, gross dividends are the sum total of all dividends received by an investor for tax purposes. Gross dividends include all ordinary dividends that are paid, plus capital-gains distributions and nontaxable distributions received by the taxpayer during the year before taxes, fees, and expenses are deducted.",investopedia,1,28.67,15.6,0,15.44,18.3,10.78,19.75,17.26
Gross Domestic Income (GDI),"Gross domestic income (GDI) is a measure of economic activity based on all the income earned while engaged in producing all the goods, services, and anything else that constitutes that economic activity.",investopedia,1,30.54,17,0,13.59,19.9,10.65,23,19.05
Gross Earnings,"Gross earnings is the total amount of income earned over a period of time by an individual/household or a company. For individuals and households, gross earnings are the income earned before the deduction of taxes or adjustments. In the corporate world, it's an accounting convention that refers to a public company's gross profit or the amount left from total revenues over a specified time period once the cost of goods sold (COGS) is deducted.",investopedia,1,46.4,12.9,15,11.49,14.6,9.56,16.66666667,15.83
Gross Estate,"The term ""gross estate"" refers to the total dollar value of an individual’s property and assets at the time of his or her death. This figure does not factor in any liabilities, such as debts owed and taxable events triggered by one's death. When those charges are deducted, the sum figure represents the net value of an individual’s estate.",investopedia,1,59.94,9.8,11.2,9.63,10.9,9.43,11.83333333,11.27
Gross Expense Ratio (GER),"The gross expense ratio (GER) is the total percentage of a mutual fund's assets that are devoted to running the fund. The gross expense ratio includes any fee waiver or expense reimbursement agreements that may be in effect. However, it does not include any sales or brokerage commissions that are not charged to the fund directly but which would be included in the net expense ratio.",investopedia,1,57.61,10.7,13,10.15,12.3,10.47,14,13.65
Gross Exposure,"Gross exposure refers to the absolute level of a fund's investments. It takes into account the value of both a fund’s long positions and short positions and can be expressed either in dollar or percentage terms. Gross exposure is a measure that indicates total exposure to financial markets, thus providing an insight into the amount at risk that investors are taking on. The higher the gross exposure, the bigger the potential loss (or gain).",investopedia,1,54.86,11.7,15,11.73,14.8,9.77,12.5,14.74
Gross Income,Gross income for an individual—also known as gross pay when it's on a paycheck—is the individual’s total pay from his or her employer before taxes or other deductions. This includes income from all sources and is not limited to income received in cash; it also includes property or services received. Gross annual income is the amount of money a person earns in one year before taxes and includes income from all sources.,investopedia,1,34.94,17.3,0,11.44,19.7,8.93,14.66666667,18.29
Gross Income Multiplier,A gross income multiplier (GIM) is a rough measure of the value of an investment property. It is calculated by dividing the property's sale price by its gross annual rental income. Investors can use the GIM—along with other methods like the capitalization rate (cap rate) and discounted cash flow method—to value commercial real estate properties like shopping centers and apartment complexes.,investopedia,1,42.41,12.4,15,13.63,14.5,9.82,14.5,15.99
Gross Income Test,The gross-income test is one of the five necessary tests that dependents must pass before they can be claimed as such in the United States.,investopedia,1,71.48,9.5,0,9.23,12.7,8.03,15.5,13.2
Gross Interest,"Gross interest is the annual rate of interest to be paid on an investment, security, or deposit account before taxes or other charges are deducted. Gross interest is often the headline interest rate attached to a fixed-income security (e.g., a bond or CD), a loan, or a deposit account.",investopedia,1,38.15,14,0,9.75,13.7,9.69,17.25,13.88
Gross Lease,The term gross lease refers to an agreement that requires the tenant to pay the property owner a flat rental fee. The fee includes all of the costs associated with property ownership. Gross leases can be modified to meet the needs of the tenants. The landlord gives exclusive use of the property to the tenant in exchange for a flat rental fee. Gross leases are commonly used in the commercial property rental market.,investopedia,1,65.12,7.8,11.2,9.16,8.1,9.12,8.3,9.68
Gross Leverage Ratio,"The gross leverage ratio is the sum of an insurance company’s net premiums written ratio, net liability ratio, and ceded reinsurance ratio. The gross leverage ratio is used to determine how exposed an insurer is to pricing and estimation errors, as well as its exposure to reinsurance companies.",investopedia,1,30.2,15,0,12.36,14.9,10.42,17.5,17.93
Gross Margin,"Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides. The higher the gross margin, the more capital a company retains on each dollar of sales, which it can then use to pay other costs or satisfy debt obligations. The net sales figure is simply gross revenue, less the returns, allowances, and discounts.",investopedia,1,58.11,10.5,11.7,9.69,12,9.11,13,11.39
Gross Margin Return on Investment (GMROI),The gross margin return on investment (GMROI) is an inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash above the cost of the inventory. It is calculated by dividing the gross margin by the average inventory cost and is used often in the retail industry. GMROI is also known as the gross margin return on inventory investment (GMROII).,investopedia,1,33.24,13.8,15.9,11.55,13.1,8.94,15.5,14.75
Gross Merchandise Value,Gross merchandise value (GMV) is the total value of merchandise sold over a given period of time through a customer-to-customer (C2C) exchange site. It is a measure of the growth of the business or use of the site to sell merchandise owned by others.,investopedia,1,57.61,10.7,0,8.94,11.7,8.32,13.5,10.62
Gross National Happiness (GNH),"Gross national happiness (GNH) is a measure of economic and moral progress that the king of the Himalayan country of Bhutan introduced in the 1970s as an alternative to gross domestic product. Rather than focusing strictly on quantitative economic measures, gross national happiness takes into account an evolving mix of quality-of-life factors.",investopedia,1,36.63,14.6,0,15.03,18.2,11.3,19,16.55
Gross National Income (GNI),GNI is the total amount of money earned by a nation's people and businesses. It is used to measure and track a nation's wealth from year to year. The number includes the nation's gross domestic product plus the income it receives from overseas sources.,investopedia,1,73.47,6.7,7.8,8.87,8.3,9.03,7,7.7
Gross National Product (GNP) Deflator,The gross national product deflator is an economic metric that accounts for the effects of inflation in the current year's gross national product (GNP) by converting its output to a level relative to a base period.,investopedia,1,26.48,18.5,0,11.5,20,12.44,26,22.18
Gross Net Written Premium Income,"Gross net written premium income (GNWPI) is the dollar amount of an insurance company’s premiums that are used to determine what portion of premiums is owed to a reinsurer. Gross net written premium income is the base to which the reinsurance premium rate is applied, taking into account cancellations, refunds, and premiums paid for reinsurance coverage.",investopedia,1,34.6,15.4,0,13.87,18.2,9.25,21.5,18.34
Gross Processing Margin (GPM),"The gross processing margin (GPM) is the difference between the cost of a raw commodity and the income it generates once sold as a finished product. The gross processing margin is affected by supply and demand. The prices for raw commodities fluctuate, creating an ever-changing spread between the raw inputs and the processed products.",investopedia,1,53.21,10.3,13.6,12.06,12.3,10.09,12.33333333,12.39
Gross Profit,"Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). These figures can be found on a company's income statement. Gross profit may also be referred to as sales profit or gross income.",investopedia,1,52.7,10.5,11.7,11.08,11.6,8.61,11.5,10.64
Gross Profit Margin,"Gross profit margin is a metric analysts use to assess a company's financial health by calculating the amount of money left over from product sales after subtracting the cost of goods sold (COGS). Sometimes referred to as the gross margin ratio, gross profit margin is frequently expressed as a percentage of sales.",investopedia,1,45.09,13.4,0,11.78,15.5,10.39,16.5,15.78
Gross Rate of Return,"The gross rate of return is the total rate of return on an investment before the deduction of any fees, commissions, or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter, or year. This can be contrasted with the net rate of return, which deducts fees and costs to provide a more realistic measurement of return.",investopedia,1,66.07,9.5,13,8.12,10.9,8.56,14,14.25
Gross Sales,"Gross sales is a metric for the total sales of a company, unadjusted for the costs related to generating those sales. The gross sales formula is calculated by totaling all sale invoices or related revenue transactions. However, gross sales do not include the operating expenses, tax expenses, or other charges—all of these are deducted to calculate net sales.",investopedia,1,43.43,12,16.3,12.24,12.8,10.04,15,16
Gross Spread,"The gross spread is the compensation that the underwriters of an initial public offering (IPO) receive. An IPO is the process of taking a private corporation public by issuing shares of stock. Gross spread is the difference between the underwriting price received by the issuing company and the actual price offered to the investing public. In other words, the gross spread is the financial institution's cut or profit from the IPO listing. Gross spread is also called ""gross underwriting spread,"" ""spread,"" or ""production.""",investopedia,1,54.63,9.8,13,12.24,12.1,8.84,11.3,11.94
Gross Working Capital,"Gross working capital is the sum of a company's current assets (assets that are convertible to cash within a year or less). Gross working capital includes assets such as cash, accounts receivable, inventory, short-term investments, and marketable securities. Gross working capital less current liabilities is equal to net working capital, or simply ""working capital;"" a more useful measure for balance sheet analysis.",investopedia,1,33.54,13.7,15,14.62,15.9,9.25,14.66666667,13.44
Gross-Up,A gross-up is an additional amount of money added to a payment to cover the income taxes the recipient will owe on the payment.,investopedia,1,55.58,11.5,0,7.67,11,8.12,14,12.93
Gross Value Added,"Gross value added (GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, producer, sector, or region.",investopedia,1,10.23,18.5,0,15.67,20,13.75,21.5,21.17
Gross Yield,"The gross yield of an investment is its profit before taxes and expenses are deducted. Gross yield is expressed in percentage terms. It is calculated as the annual return on an investment prior to taxes and expenses, divided by the current price of the investment.",investopedia,1,56.25,9.1,13.6,9.97,9.1,9.64,10.83333333,12.22
Ground Lease,"A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.",investopedia,1,43.4,16.2,0,9.24,17.9,9.37,24,19.96
Group of 3 (G-3),"Group of 3 refers to a ten-year free trade agreement between Mexico, Colombia and Venezuela that began in 1995 and lasted until 2005. The pact covered numerous issues including intellectual property rights, public-sector investments and the easing of trade restrictions.",investopedia,1,42.72,12.3,0,15.49,15.9,12.92,14,15
Group of 7 (G-7),"The Group of Seven (G-7) is an intergovernmental organization made up of the world's largest developed economies: France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada. Government leaders of these countries meet periodically to address international economic and monetary issues, with each member taking over the presidency on a rotating basis.",investopedia,1,27.15,16.2,0,15.67,19.8,11.7,18.5,17.47
Group of 8 (G-8),"The Group of Eight (G-8) was an assembly of the world's largest developed economies that have established a position as pacesetters for the industrialized world. Leaders of member countries, the United States, the United Kingdom (U.K.), Canada, Germany, Japan, Italy, France, and until recently, Russia, meet periodically to address international economic and monetary issues.",investopedia,1,35.61,15,0,15.67,20.3,12.87,19,18.95
Group of 10 (G-10),"The Group of Ten (G10) is one of five ""group of"" groups, not to be confused with the Groups of 7, 8, 20, or 24. Each of these consists of a group with similar economic interests. The G10 consists of eleven industrialized nations that meet on an annual basis or more frequently, as necessary, to consult each other, debate and cooperate on international financial matters. The member countries are Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States, with Switzerland playing a minor role.",investopedia,1,48.77,14.1,13.6,11.73,18.3,11.34,14,16.63
Group of 11 (G-11),"The Group of 11 (G-11) is a group of developing countries created to ease members' debt burdens to direct their resources to economic development. The G-11 came into existence on September 20, 2006, and was initially conceived by King Abdullah of Jordan. The group is mainly made up of lower-middle-income countries.",investopedia,1,54.22,9.9,13,11.31,11.7,10.98,11.5,12.29
Group of 20 (G-20),"The Group of 20, also called the G-20, is a group of finance ministers and central bank governors from 19 of the world's largest economies, including those of many developing nations, along with the European Union. Formed in 1999, the G-20 has the mandate to promote global economic growth, international trade, and regulation of financial markets.",investopedia,1,43.06,14.2,0,12.31,17.4,12.64,18.5,17.63
Group of 30 (G-30),"The Group of 30, generally abbreviated to G-30, is a private, nonprofit international body composed of academic economists, company chiefs, and representatives of national, regional, and central banks. G-30 members meet twice a year to generate a greater understanding of financial and economic issues in the private and public sectors worldwide.",investopedia,1,20.21,16.8,0,15.55,18.7,12.64,19.75,20.4
Group Health Insurance,"Group Insurance health plans provide coverage to a group of members, usually comprised of company employees or members of an organization. Group health members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. There are plans such as these in both the US and Canada.",investopedia,1,53.21,10.3,13.6,11.77,11.7,8.62,12.33333333,12.39
Group Life Insurance,"Group life insurance is offered by an employer or another large-scale entity, such as an association or labor organization, to its workers or members. It is fairly inexpensive, may even be free, and is pretty common nationwide. It has a relatively low coverage amount and is typically offered as a piece of a larger employer or membership benefit package.",investopedia,1,34.56,13.3,15.5,11.14,12.1,9.97,14.5,16.02
Group Term Life Insurance,"Group term life insurance is a type of term insurance in which one contract is issued to cover multiple people. The most common group is a company, where the contract is issued to the employer who then offers coverage as a benefit to employees. Many employers provide, at no cost, a base amount of group coverage as well as the ability to purchase supplemental coverage and coverage for employees' spouses and children. Group term life insurance is relatively inexpensive compared to individual life insurance. As a result, participation is high.",investopedia,1,44.75,11.5,14.8,11.25,11.5,8.74,13.2,13.42
Group Universal Life Policy (GULP),The term group universal life policy refers to a form of universal life insurance offered to a group of people at a lower cost than what is typically offered to an individual. Group universal life insurance is commonly purchased by corporations that want to provide their employees with life insurance coverage. These policies provide each insured party with permanent insurance coverage with an option to grow their savings.,investopedia,1,28.51,17.7,0,13.82,20.6,9.5,16.66666667,19.48
Groupon,"Groupon is a website and mobile app that offers coupons, cashback on purchases and group deals to consumers. Restaurants, retailers, and manufacturers use Groupon deals in an effort to lure customers into their establishments or to purchase their products.",investopedia,1,60.14,9.7,0,14.68,14.9,12.3,11.75,11.9
Groupthink,Groupthink is a phenomenon that occurs when a group of individuals reaches a consensus without critical reasoning or evaluation of the consequences or alternatives. Groupthink is based on a common desire not to upset the balance of a group of people.,investopedia,1,42.21,12.5,0,12.3,13.1,10.05,14.25,16
Growing-Equity Mortgage,"A growing-equity mortgage (GEM) is a type of fixed-rate mortgage where monthly payments increase over time according to a set schedule, rather than remaining fixed and equal over the loan term. The interest rate on the loan does not change, and there is never any negative amortization. Instead, the first payment is a fully-amortizing payment and as the payment amount increases over time, the additional amount beyond what would be a fully amortizing payment is applied directly to the remaining mortgage principal, shortening the life of the loan and increasing overall interest savings.",investopedia,1,40.01,15.4,15.9,13.59,19.3,9.42,20.5,17.99
Growth and Income Fund,"A growth and income fund is class of mutual fund or exchange-traded fund (ETF) that has a dual strategy of both capital appreciation (growth) and current income generated through dividends or interest payments. A growth and income fund may invest only in equities or in a combination of stocks, bonds, real estate investment trusts (REIT) and other securities.",investopedia,1,33.58,15.8,0,12.6,17.8,11.34,20.5,18.5
Growth at a Reasonable Price (GARP),Growth at a reasonable price (GARP) is an equity investment strategy that seeks to combine tenets of both growth investing and value investing to select individual stocks. GARP investors look for companies that are showing consistent earnings growth above broad market levels while excluding companies that have very high valuations. The overarching goal is to avoid the extremes of either growth or value investing; this typically leads GARP investors to growth-oriented stocks with relatively low price/earnings (P/E) multiples in normal market conditions.,investopedia,1,35.31,15.1,17.5,15.96,19.6,11.15,20,18.72
Growth Company,"A growth company is any company whose business generates significant positive cash flows or earnings, which increase at significantly faster rates than the overall economy. A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Thus, it typically pays little to no dividends to stockholders, opting instead to put most or all of its profits back into its expanding business.",investopedia,1,40.99,12.9,15.5,14.39,15.5,10.79,15.5,15.45
Growth Curve,"A growth curve is a graphical representation of how a particular quantity increases over time. Growth curves are used in statistics to determine the type of growth pattern of the quantity—be it linear, exponential, or cubic. Once the type of growth is determined, a business can create a mathematical model to predict future sales. An example of a growth curve is a country's population over time.",investopedia,1,54.73,9.7,13.4,10.9,10.5,10.2,11.5,13.87
Growth Fund,"A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. The portfolio mainly consists of companies with above-average growth that reinvest their earnings into expansion, acquisitions, and/or research and development (R&D). Most growth funds offer higher potential capital appreciation but usually at above-average risk.",investopedia,1,26.81,14.2,16.7,16.71,16.7,11.78,15.16666667,16.02
Growth Industry,"A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. Growth industries are often new or pioneer industries that did not exist in the past. Their growth is a result of demand for new products or services offered by companies in the field. An example of a growth industry is the technology sector, whose products have become runaway hits with consumers and led to multibillion-dollar valuations for tech companies in the stock market.",investopedia,1,50.36,11.4,13.8,11.95,13.1,9.61,13.875,13.62
Growth Investing,"Growth investing is an investment style and strategy that is focused on increasing an investor's capital. Growth investors typically invest in growth stocks—that is, young or small companies whose earnings are expected to increase at an above-average rate compared to their industry sector or the overall market.",investopedia,1,39.16,13.6,0,15.21,17,11.86,16.75,17.06
Growth Rates,"Growth rates refer to the percentage change of a specific variable within a specific time period. For investors, growth rates typically represent the compounded annualized rate of growth of a company's revenues, earnings, dividends, or even macro concepts, such as gross domestic product (GDP) and retail sales. Expected forward-looking or trailing growth rates are two common kinds of growth rates used for analysis.",investopedia,1,41.7,12.7,15.5,14.27,15.6,12.45,15.16666667,16.02
Growth Stock,"A growth stock is any share in a company that is anticipated to grow at a rate significantly above the average growth for the market. These stocks generally do not pay dividends. This is because the issuers of growth stocks are usually companies that want to reinvest any earnings they accrue in order to accelerate growth in the short term. When investors invest in growth stocks, they anticipate that they will earn money through capital gains when they eventually sell their shares in the future.",investopedia,1,58.32,10.4,13,10.68,12.2,8.59,13.625,13.23
Grunt Work,"Grunt work is an expression used to describe thankless and menial work. Grunt work can also refer to jobs that either lack glamour and prestige or are boring and repetitive. In the context of the finance industry, grunt work could entail combing through a company's financial records, looking for positive and negative developments, or analyzing historical trading data in the hope of finding the perfect stop-limit order points.",investopedia,1,48.43,12.1,14.1,13.41,15.1,11.96,15,14.96
GSCI (S&P),"The S&P GSCI is a composite index of commodities that measures the performance of the commodity market. The index often serves as a benchmark for commodities investments. Investing in a GSCI fund provides a broadly diversified, unleveraged, long-only position in commodity futures.",investopedia,1,40.35,11.1,14.1,14.32,12.5,11.85,10.66666667,14.17
Guanxi,"Guanxi (pronounced gwan' CHē) is a Chinese term meaning relationships; in business, it is commonly referred to as networks or connections used to open doors for new business and facilitate deals. A person who has a lot of guanxi will be in a better position to generate business than someone who lacks it.",investopedia,1,53.04,12.4,0,9.93,14.3,10.02,16.25,15.13
Guarantee Company,"A guarantee company is a type of corporation designed to protect members from liability. Guarantee companies often form when non-profit organizations wish to attain corporate status. Clubs, sports associations, students' unions, and other membership organizations, workers' co-operatives, social enterprises, and non-governmental organizations (NGOs) may also form guarantee companies.",investopedia,1,-3.99,17.8,17.1,21.34,19.7,12.98,14,15.57
Guarantee Fees,"The term guarantee fee refers to the sum of money paid to the issuer of a mortgage-backed security (MBS) by the holder. This charge helps the issuer pay for administrative costs and expenses related to the security and also cuts down on any risk or loss that may arise if any of the mortgages that back the security default. Also called g-fees, guarantee fees also refer to charges paid by a mortgagor to a guarantor for services rendered.",investopedia,1,53.55,12.3,13.6,9.35,13.4,10.19,16.33333333,13.48
Guaranteed Bond,"A guaranteed bond is a debt security that offers a secondary guarantee that interest and principal payments will be made by a third party, should the issuer default due to reasons such as insolvency or bankruptcy. A guaranteed bond can be of either the municipal or corporate variety. It can be backed by a bond insurance company, a fund or group entity, a government authority, or the corporate parents of subsidiaries or joint ventures that are issuing bonds.",investopedia,1,36.63,14.6,17.1,11.03,14.7,10.8,19,17.58
Guaranteed Death Benefit,"A guaranteed death benefit is a benefit term that guarantees that the beneficiary, as named in the contract, will receive a death benefit if the annuitant dies before the annuity begins paying benefits.",investopedia,1,21.06,18.5,0,12.66,19.3,10.54,25.5,21.68
Guaranteed Investment (Interest) Certificate (GIC),"In Canada, a guaranteed investment certificate (GIC) is a deposit investment sold by Canadian banks and trust companies. People often purchase them for retirement plans because they provide a low-risk fixed rate of return and are insured, to a degree, by the Canadian government.",investopedia,1,49.15,11.9,0,12.76,14.8,10.47,15.5,14.25
Guaranteed Investment Contract (GIC),"A guaranteed investment contract (GIC) is an insurance company provision that guarantees a rate of return in exchange for keeping a deposit for a certain period. A GIC appeals to investors as a replacement for a savings account or U.S. Treasury securities, which are government bonds guaranteed by the U.S. government. GICs are also known as funding agreements.",investopedia,1,48.3,10.1,13,11.53,10.5,9.8,10.25,11.32
Guaranteed Investment Fund (GIF),"Guaranteed investment income is a type of investment product offered by insurance companies that allow clients to invest in equity, bond, and/or index fund while providing a promise of a predefined minimum value of the fund (usually, the initial investment amount) will be available at the fund's maturity or when the client dies.",investopedia,1,17.68,24,0,13.48,30,12.82,38.5,28.75
Guaranteed Issue Life Insurance,"Guaranteed issue life insurance, or guaranteed acceptance life insurance, is a type of whole life insurance policy that does not require you to answer health questions, undergo a medical exam, or allow an insurance company to review your medical and prescription records. You may also see it referred to as “no questions life insurance” or “no questions final expense insurance.”",investopedia,1,32.57,16.2,0,13.88,18.9,9.34,22.5,16.67
Guaranteed Lifetime Withdrawal Benefit (GLWB),"A Guaranteed Lifetime Withdrawal Benefit (GLWB) is a rider to a variable annuity contract that allows for withdrawals, either regular or occasional, to be made from an annuity during the accumulation phase without penalty. The annuitant pays for the GLWB rider with additional fees that are added to the total value of the annuity contract. The amount of money that is allowed to be withdrawn is a percentage of the total value of the annuity.",investopedia,1,37.64,14.2,15,11.03,14.2,9.93,16.83333333,15.33
Guaranteed Loan,"A guaranteed loan is a loan that a third party guarantees—or assumes the debt obligation for—in the event that the borrower defaults. Sometimes, a guaranteed loan is guaranteed by a government agency, which will purchase the debt from the lending financial institution and take on responsibility for the loan.",investopedia,1,46.61,12.8,0,13.93,16.3,9.36,17.25,15.51
Guaranteed Minimum Accumulation Benefit (GMAB),"The guaranteed minimum accumulation benefit (GMAB) is a variable annuity rider that guarantees a minimum value to the annuitant after the accumulation period or another set period, usually somewhere close to 10 years. The GMAB rider protects the value of the annuity from market fluctuations. This optional benefit is available for an additional cost, which varies per insurance provider.",investopedia,1,26.1,14.5,17.5,14.79,15,10.5,16.16666667,16.69
Guaranteed Minimum Income Benefit (GMIB),"A guaranteed minimum income benefit (GMIB) is an optional rider that annuitants can purchase for their retirement annuities. When the annuity has been annuitized, this specific option guarantees that the annuitant will receive a minimum value of payments on a regular basis, regardless of other circumstances.",investopedia,1,22.75,15.8,0,16.08,17.5,11.64,19.5,22.24
Guaranteed Minimum Withdrawal Benefit (GMWB),"A guaranteed minimum withdrawal benefit (GMWB) is a type of rider or contract attached to some annuity insurance policies. It guarantees the policyholder a steady stream of annual withdrawals via the return of all premiums paid into the contract, regardless of an investment's performance, through a series of annual withdrawals. A GMWB is unlike a guaranteed minimum income benefit (GMIB), where the latter offers a payout of specified minimum periodic income after a waiting period, regardless of the variable annuity's investment performance.",investopedia,1,18.39,17.5,19.6,15.03,19,11.54,22,19.7
Guaranteed Payments to Partners,"Guaranteed payments to partners are payments meant to compensate a partner for services rendered or use of capital. Essentially, they are the equivalent of a salary for partners or limited liability company (LLC) members. These kinds of payments eliminate the risk of a partner making personal contributions of time or property and then never getting compensated if the partnership does not prove to be successful.",investopedia,1,40.99,12.9,15.9,13.4,14.7,10.06,15.83333333,16.68
Guaranteed Renewable Policy,"A guaranteed renewable policy is an insurance policy feature that ensures that an insurer is obligated to continue coverage as long as premiums are paid on the policy. While re-insurability is guaranteed, premiums can rise based on the filing of a claim, injury, or other factors that could increase the risk of future claims.",investopedia,1,35.61,15,0,11.78,15.9,11.41,20.5,18.21
Guaranteed Stock,"Guaranteed stock has two meanings, one applied to dividends and one applied to inventory. The more common reference is to an infrequently used form of common or preferred stock, in which the dividends are guaranteed by one or more other companies. Guaranteed stock issues, like guaranteed bonds, have most often used by railroads and public utilities. The guaranteed dividend can increase the stock's price.",investopedia,1,55.24,9.5,13.4,12.76,11.9,8.62,11.25,11.4
Guarantor,"A guarantor is a financial term describing an individual who promises to pay a borrower's debt in the event that the borrower defaults on their loan obligation. Guarantors pledge their own assets as collateral against the loans. On rare occasions, individuals act as their own guarantors, by pledging their own assets against the loan. The term ""guarantor"" is often interchanged with the term ""surety.""",investopedia,1,55.24,9.5,13.8,12.18,11.5,9.86,11.5,13.9
Guerrilla Marketing,"Guerrilla marketing is a marketing tactic in which a company uses surprise and/or unconventional interactions in order to promote a product or service. Guerrilla marketing is different than traditional marketing in that it often relies on personal interaction, has a smaller budget, and focuses on smaller groups of promoters that are responsible for getting the word out in a particular location rather than through widespread media campaigns.",investopedia,1,12.09,19.9,0,15.62,21.9,10.72,25.75,20.56
Guidance,"Guidance is an informal report a public company issues to shareholders detailing the earnings it expects to achieve in the upcoming fiscal quarter or year ahead. Guidance, also referred to as forward earnings guidance or a forward-looking statement, typically includes internal projections for revenue, earnings, and capital spending and is subject to revision in the interim.",investopedia,1,26.14,16.6,0,15.55,19.6,10.95,20,17.63
Guideline Premium and Corridor Test (GPT),The guideline premium and corridor test (GPT) is used to determine whether an insurance product can be taxed as insurance rather than as an investment. GPT limits the amount of premiums that can be paid into an insurance policy relative to the policy’s death benefit.,investopedia,1,48.64,12.1,0,11.49,13.4,10.37,17.25,17.89
Guilder Share (New York Share),A Guilder share was an ownership stake in a Dutch company that could be traded in the United States because it represented shares that had been canceled in Dutch stock markets.,investopedia,1,56.93,13,0,10.46,16.3,9.76,18.5,14.98
Guinea Franc (GNF),"GNF is the currency abbreviation for the Guinea franc, the national currency of the Republic of Guinea, a country in West Africa.",investopedia,1,49.15,11.9,0,10.39,12.7,10.47,16,16.07
Gunnar Myrdal,"Gunnar Myrdal was a Swedish Keynesian economist and sociologist who won the 1974 Nobel Memorial Prize in Economics alongside conservative, Austrian economist Friedrich Hayek—despite both men being on opposite ends of the political spectrum. Myrdal was best known for his work in international development and trade economics, as well as for his activism promoting racial equality and opposing American foreign policy.",investopedia,1,23.6,17.5,0,17.07,21.6,12.66,24.25,22.04
Guns-and-Butter Curve,"The guns-and-butter curve is the classic economic example of the production possibility curve, which demonstrates the idea of opportunity cost. In a theoretical economy with only two goods, a choice must be made between how much of each good to produce. As an economy produces more guns (military spending) it must reduce its production of butter (food), and vice versa.",investopedia,1,42.72,12.3,14.1,11.6,13,9.1,13.66666667,13.33
Gunslinger,"Gunslinger is a slang term for an aggressive portfolio manager. A gunslinger often uses high-risk investment techniques to hopefully produce big returns. Rather than considering the long-term value of the company underlying a stock, gunslingers look at a stock's momentum and seek to benefit from short-term trades based on sharp movements in a stock's price.",investopedia,1,52.9,10.4,13.6,13.92,13.9,10.29,12.5,13.14
Guppy Multiple Moving Average (GMMA),"The Guppy Multiple Moving Average (GMMA) is a technical indicator that aims to anticipate a potential breakout in the price of an asset. The term gets its name from Daryl Guppy, an Australian financial columnist and book author who developed the concept in his book, ""Trading Tactics.""",investopedia,1,47.62,12.5,0,11.78,14.5,11.52,15.75,16.21
Gwei,"Gwei is a denomination of the cryptocurrency ether (ETH), which is used on the Ethereum network. Ethereum is a blockchain platform, like Bitcoin, where users transact with each other to buy and sell goods and services without a middle man or interference from a third party.",investopedia,1,65.05,9.9,0,11.15,13.6,9.24,13,11.81
H-Shares,"H-shares are shares of Chinese mainland companies that are listed on the Hong Kong Stock Exchange or other foreign exchange. Although H-shares are regulated by Chinese law, they are denominated in Hong Kong dollars and are traded in the same way as other equities on the Hong Kong exchange. H-shares are available for more than 230 Chinese companies giving investors access to most of the major economic sectors, such as financials, industrials, and utilities.",investopedia,1,54.86,11.7,13,12.89,15.8,9.98,15.33333333,14.2
Haas School of Business,"The Haas School of Business is the business school of the University of California at Berkeley. Founded in 1898 and located in Berkeley, California, the school offers both undergraduate and graduate programs.",investopedia,1,38.32,11.9,0,13.8,12.6,9.86,11,12.65
Habendum Clause,"A habendum clause is a section of a contract that deals with property rights, interests, and other aspects of ownership given to one of the parties to a deal. Consisting of basic legal language, it is usually included in property-related documents.",investopedia,1,42.21,12.5,0,11.31,12.7,11.59,14.25,16
Hacktivism,Hacktivism is a social or political activist act that is carried out by breaking into and wreaking havoc on a secure computer system. Hacktivism is usually directed at corporate or government targets. The people or groups that carry out hacktivism are referred to as hacktivists.,investopedia,1,47.79,10.3,11.2,12.17,10.8,10.7,8.5,10.44
Haggle,"To haggle is when two parties involved in a transaction such as the purchase of a good and service negotiate the price until both parties can mutually agree on a fair price. The process of haggling involves two parties making sequential offers and counteroffers to each other until a price is agreed upon. The individual trying to buy the good and service is trying to pay the least amount possible, while the seller's primary objective is to maximize the selling price. Haggling also may go by the names bargaining, quibbling, dickering, or informal negotiating.",investopedia,1,47.62,12.5,13.8,11.44,13.9,9.34,15.25,14.93
Half Stock,"A half stock is a security sold with a par value that is 50% of what is considered to be the standard price. The par value refers to the face value of a bond, or in some cases, a stock. Half stock can be either common stock or preferred stock and, other than the reduced par value, acts as a regular share of stock.",investopedia,1,75.24,8.1,8.8,4.82,7.8,7.65,11.66666667,10.4
Half-Year Convention For Depreciation,"The half-year convention for depreciation is the depreciation schedule that treats all property acquired during the year as being acquired exactly in the middle of the year. This means that only half of the full-year depreciation is allowed in the first year, while the remaining balance is deducted in the final year of the depreciation schedule, or the year that the property is sold. The half-year convention for depreciation applies to both modified accelerated cost recovery systems and straight-line depreciation schedules.",investopedia,1,27.15,16.2,16.3,14.51,18.2,8.48,18.83333333,15.24
Halloween Massacre,"The Halloween Massacre refers to the Canadian Government's 2006 decision to tax all income trusts domiciled in Canada. On Halloween, Oct. 31, 2006, Canada’s minister of finance, Jim Flaherty, announced that all income trusts would be taxed in a similar manner as corporations at a rate of over 30% on taxable income, causing unitholders’ values to decrease dramatically virtually overnight.",investopedia,1,32.57,16.2,0,14.52,19.8,13.02,20,18.67
Halloween Strategy,"The Halloween strategy, Halloween effect, or Halloween indicator, is a market-timing strategy based on the hypothesis that stocks perform better between Oct. 31 (Halloween) and May 1 than they do between the beginning of May through the end of October. The strategy posits that it is prudent to buy stocks in November, hold them through the winter months, then sell in April, while investing in other asset classes from May through October. Some who subscribe to this tactic say not to invest at all during the summer months.",investopedia,1,50.2,13.5,14.1,11.44,16.8,8.86,18.33333333,13.54
Halo Effect,"The halo effect is a term for a consumer's favoritism toward a line of products due to positive experiences with other products by this maker. The halo effect is correlated to brand strength, brand loyalty, and contributes to brand equity.",investopedia,1,51.18,11.1,0,11.02,12.1,10.16,13,14
Hamada Equation,"The Hamada equation is a fundamental analysis method of analyzing a firm's cost of capital as it uses additional financial leverage, and how that relates to the overall riskiness of the firm. The measure is used to summarize the effects this type of leverage has on a firm's cost of capital—over and above the cost of capital as if the firm had no debt.",investopedia,1,47.46,14.6,0,9.12,15.9,9.91,21,17.18
Hammer Candlestick,"A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.",investopedia,1,53.85,12.1,13.6,11.09,14.7,8.4,16.16666667,12.36
Hammer Clause,"A hammer clause is an insurance policy clause that allows an insurer to compel the insured to settle a claim. A hammer clause is also known as a blackmail clause, settlement cap provision, or consent to settlement provision. This clause gets its name from the power given to the insurer to force the insured to settle, much as how a hammer is used against a nail.",investopedia,1,66.07,9.5,12.5,8.53,11,7.84,13.66666667,11.22
Hammering,Hammering is rapid and concentrated selling of stock shares in the wake of an unexpected event that is perceived as extremely damaging to the company's short-term performance. The effect of hammering is a steep drop in the price of the stock.,investopedia,1,59.13,10.1,0,10.73,12,9.66,14.25,15.03
Hamptons Effect,"The Hamptons Effect refers to a dip in trading that occurs just before the Labor Day weekend that is followed by increased trading volume as traders and investors return from the long weekend. The term references the idea that many of the large-scale traders on Wall Street spend the last days of summer in the Hamptons, a traditional summer destination for the New York City elite.",investopedia,1,54.9,13.8,0,10.92,17.8,9.82,18,15.02
Handelsgesetzbuch (HGB),"Handelsgesetzbuch (HGB) is a law that governs the primary commercial code for companies in Germany. The law includes a regulation related to the preparation of financial statements and establishes accounting guidelines and best practices. HGB is similar to generally accepted accounting principles (GAAP), which is followed in the United States.",investopedia,1,37.6,12.2,15.9,16.06,15,12.04,13.33333333,17.88
Handle,"A handle is the whole number part of a price quote, that is, the portion of the quote to the left of the decimal point. For example, if the price quote for the stock is $56.25, the handle is $56, eliminating the value of cents in the quote. Handles are often used in futures and equities markets, where they are also known as the big figure, or ""big fig"".",investopedia,1,73.51,8.7,9.7,5.87,9.7,7.52,12.83333333,11.52
Hands-Off Investor,"A hands-off investor prefers to set an investment portfolio and make only minor changes for a long period of time. Many hands-off investors use index funds or target-date funds, which make only small and slow changes to their holdings and therefore do not require much monitoring.",investopedia,1,56.59,11.1,0,11.9,14.1,10.27,14,12.68
Hang Seng Index (HSI),The Hang Seng Index or HSI is a market capitalization-weighted index of the largest companies that trade on the Hong Kong Exchange.,investopedia,1,57.61,10.7,0,11.2,13.1,11.19,13,12.44
Hanging Man Candlestick,"A hanging man candlestick occurs during an uptrend and warns that prices may start falling. The candle is composed of a small real body, a long lower shadow, and little or no upper shadow. The hanging man shows that selling interest is starting to increase. In order for the pattern to be valid, the candle following the hanging man must see the price of the asset decline.",investopedia,1,71.34,7.5,8.1,8.41,8.5,8.48,8.125,7.32
Happiness Economics,Happiness economics is the formal academic study of the relationship between individual satisfaction and economic issues such as employment and wealth. Happiness economics attempts to use econometric analysis to discover what factors increase and decrease human well-being and quality of life.,investopedia,1,16.83,16,0,18.51,18.2,11.2,17.75,17.96
Hara-Kiri Swap,A hara-kiri swap is an interest rate or cross-currency swap devoid of profit potential for the originator. The term became popular in the 1980s when Japanese banks and brokers were offerings very attractive rates in order to obtain business from mostly foreign companies.,investopedia,1,49.65,11.7,0,13.63,14.8,12.05,15.25,16.97
Harami Cross,"A harami cross is a Japanese candlestick pattern that consists of a large candlestick that moves in the direction of the trend, followed by a small doji candlestick. The doji is completely contained within the prior candlestick’s body. The harami cross pattern suggests that the previous trend may be about to reverse. The pattern can be either bullish or bearish. The bullish pattern signals a possible price reversal to the upside, while the bearish pattern signals a possible price reversal to the downside.",investopedia,1,54.63,9.8,12,11.83,11.2,8.45,10.7,9.05
Hard Asset,"A hard asset refers to a tangible asset or resource with fundamental value. Examples of hard assets include a fleet of trucks for the delivery of consumer goods, land, real estate, and commodities. Businesses purchase hard assets to help improve production, increase revenues, and act as a buffer against soft asset losses. However, sometimes the value of hard assets decreases in tandem with the value of soft assets.",investopedia,1,54.22,9.9,11.7,11.48,11.4,9.82,10.75,11.51
Hard Call Protection,"Hard call protection, or absolute call protection, is a provision in a callable bond whereby the issuer cannot exercise the call and redeem the bond before the specified date, usually three to five years from the date of issuance.",investopedia,1,40.35,17.3,0,11.27,21.2,10.83,26.5,21.75
Hard Currency,Hard currency refers to money that is issued by a nation that is seen as politically and economically stable. Hard currencies are widely accepted around the world as a form of payment for goods and services and may be preferred over the domestic currency.,investopedia,1,49.15,11.9,0,10.39,12.3,9.03,14.5,14.25
Hard Dollars,Hard dollars are cash fees or payments made by an investor or customer to a brokerage firm in return for their services. Hard dollar payments are usually set amounts that are known before a customer begins dealing with a broker.,investopedia,1,68.1,8.7,0,9.86,10.8,9.37,11,10
Hard Fork (Blockchain),"A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.",investopedia,1,64.54,10.1,0,11.9,14.7,12.19,15.25,13.66
Hard Inquiry,"A hard inquiry is a type of credit information request that includes your full credit report and deducts points from your credit score. These types of inquiries are used by lenders and creditors in deciding whether to grant you credit or a loan, and they will usually cause a short-lived decrease in your credit score. A “hard pull” is another name for a hard inquiry.",investopedia,1,55.41,13.6,0,10.17,17,9.62,18.75,15.46
Hard Landing,"A hard landing refers to a marked economic slowdown or downturn following a period of rapid growth. The term ""hard landing"" comes from aviation, where it refers to the kind of high-speed landing that – while not an actual crash – is a source of stress as well as potential damage and injury. The metaphor is used for high-flying economies that run into a sudden, sharp check on their growth, such as a monetary policy intervention meant to curb inflation. Economies that experience a hard landing often slip into a stagnant period or even recession.",investopedia,1,55.78,11.4,13.8,10.1,13,9.3,15.375,14.15
Hard Loan,"A hard loan is a foreign loan that must be paid in hard currency, which is the currency of a nation that has political stability and a reputation for economic strength. For example, a country classified as a developing country may borrow via a hard loan denominated in U.S. dollars.",investopedia,1,46.1,13,0,9.35,13,9.93,17.5,17.2
Hard Money,"Hard money originally referred to the physical properties of metallic money, which, unlike paper currency, is made of hard substances. This is the origin of the colloquial English expression, ""cold, hard cash.""",investopedia,1,46.78,10.7,0,13.22,12.9,9.86,11,13.9
Hard Money Loan,"A hard money loan is a type of loan that is secured by real property. Hard money loans are considered loans of ""last resort"" or short-term bridge loans. These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks.",investopedia,1,55.24,9.5,11.9,10.21,9.8,9.04,10.33333333,12.23
Hard Sell,"A hard sell refers to an advertising or sales approach that features especially direct and insistent language. A hard sell is designed to get a consumer to purchase a good or service in the short-term, rather than evaluate his or her options and potentially decide to wait on the purchase. It is considered a high-pressure, aggressive technique that has fallen out of favor according to some sales experts.",investopedia,1,56.89,11,13,11.32,13.4,9.41,14.33333333,13.79
Hard Skills,"Hard skills are learned abilities acquired and enhanced through practice, repetition, and education. Hard skills are important because they increase employee productivity and efficiency and subsequently improve employee satisfaction. However, hard skills alone don't translate into business success as employees also need to employ other skills, such as soft skills, that contribute to customer satisfaction.",investopedia,1,18.18,17.6,0,19.5,22.7,10.17,13.83333333,18.27
Hard Stop,"A hard stop is more of a concept than an actual order type. A hard stop presumes a price level that, if reached, will decisively trigger an order to sell an underlying security.",investopedia,1,63.19,8.5,0,7.19,7.5,8.76,10.25,11.45
Hard-To-Borrow List,A hard-to-borrow list is an inventory record used by brokerages to indicate what stocks are difficult to borrow for short sale transactions. A brokerage firm's hard-to-borrow list provides an up-to-date catalog of stocks that cannot easily be borrowed for use as a short sale.,investopedia,1,40.69,13.1,0,12.24,14.5,9.03,16.5,16.07
Hardening,Hardening describes conditions of rising prices and falling volatility in a particular market. Hardening is most commonly applied when referring to the commodities futures market.,investopedia,1,24.95,12.9,0,17.33,14,11.84,10.25,16.2
Hardship Exemption,"The term hardship exemption referred to an exemption granted to individuals who weren't able to afford health insurance due to personal and/or financial circumstances. These exemptions were part of a provision in the Patient Protection and Affordable Care Act (ACA), which was signed into law in 2010. Individuals were required to have acceptable health care coverage or else pay a fee. Individuals who weren't able to afford coverage could apply for an exemption where no penalty was assessed. The fee for uninsured individuals was eliminated in 2019 with the passing of the Tax Cuts and Jobs Act (TCJA).",investopedia,1,43.12,12.1,14.3,12.01,12.8,9.76,13.6,13.15
Hardship Withdrawal,"A hardship withdrawal is an emergency removal of funds from a retirement plan, sought in response to what the IRS terms ""an immediate and heavy financial need."" This type of special distribution may be allowed without penalty from such plans as a traditional IRA or a 401k, provided the withdrawal meets certain criteria regarding the need for the funds and their amount.",investopedia,1,48.47,14.2,0,11.73,17.6,11.29,21,18.85
Harmless Warrant,"A harmless warrant, also known as a wedding warrant, is a provision that requires the holder to surrender the bond back to the issuer if they buy another bond with similar terms from that issuer.",investopedia,1,52.87,14.6,0,9.99,18.2,9.43,21.5,17.43
Harmonic Mean,"The harmonic mean is a type of numerical average. It is calculated by dividing the number of observations by the reciprocal of each number in the series. Thus, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals.",investopedia,1,49.11,9.8,13.6,9.56,8.2,8.55,10.16666667,13.28
Harmonized Index of Consumer Prices (HICP),The Harmonized Index of Consumer Prices (HICP) is a list of the final costs paid by consumers for items in a basket of common goods. It is a composite measure of inflation in the European Union.,investopedia,1,70.13,8,0,7.71,8.6,10.67,11,11.64
Harmonized Sales Tax (HST),"Canada's harmonized sales tax (HST) is a consumption tax paid by local consumers and businesses. As the name implies, it ""harmonizes"" (combines) the nation's federal goods and services tax and various provincial sales taxes. Five Canadian provinces use the HST.",investopedia,1,57.98,8.5,12.5,12.46,11.5,11.8,8.333333333,13.32
Harry Markowitz,"Harry Markowitz (1927– ) is a Nobel Prize winning economist who devised the modern portfolio theory (MPT). Markowitz introduced MPT to academic circles in his article, ""Portfolio Selection,"" which appeared in The Journal of Finance in 1952. Markowitz's theories emphasized the importance of portfolios, risk, the correlations between securities, and diversification. His work, in collaboration with Merton H. Miller and William F. Sharpe, changed the way that people invested. These three intellectuals shared the 1990 Nobel Prize in Economics.",investopedia,1,43.29,10,12.5,15.12,12.7,12.69,7.357142857,13.67
Hart-Scott-Rodino Antitrust Improvements Act of 1976,The Hart-Scott-Rodino Antitrust Improvements Act of 1976 requires large companies to file notifications with the Federal Trade Commission and the anti-trust division of Department of Justice prior to certain mergers and acquisitions or tender offers.,investopedia,1,10.57,20.5,0,18.75,25.4,14.4,27.5,23.14
Harvard Business School,"Harvard Business School is an internationally renowned business school located at Harvard University in Boston, Massachusetts. Founded in 1908, it admits roughly 930 students to its MBA program per year and regularly ranks among the top business schools in the world.",investopedia,1,42.21,12.5,0,14.27,14.9,11.97,12.75,13.08
Harvard MBA Indicator,"The Harvard MBA Indicator is a contrarian long-term stock market indicator that evaluates the percentage of Harvard Business School MBA graduates that accept ""market sensitive"" jobs. Market sensitive jobs exist in fields such as investment banking, securities sales and trading, private equity, venture capital, and leveraged buyouts.",investopedia,1,22.24,16,0,17.82,19.5,11.86,17.75,17.06
Harvest Strategy,"A harvest strategy is a marketing and business strategy that involves a reduction or a termination of investments in a product, product line, or line of business so that the entities involved can reap—or, harvest—the maximum profits. A harvest strategy is typically employed toward the end of a product's life cycle when it is determined that further investment will no longer boost product revenue.",investopedia,1,30.54,17,0,13.24,19.3,10.16,22,19.05
Hash,"A hash is a mathematical function that converts an input of arbitrary length into an encrypted output of a fixed length. Thus regardless of the original amount of data or file size involved, its unique hash will always be the same size. Moreover, hashes cannot be used to ""reverse-engineer"" the input from the hashed output, since hash functions are ""one-way"" (like a meat grinder; you can't put the ground beef back into a steak). Still, if you use such a function on the same data, its hash will be identical, so you can validate that the data is the same (i.e., unaltered) if you already know its hash.",investopedia,1,60.99,11.5,11.7,8.42,13.8,8.63,14.5,13.76
Hashed Timelock Contract,"A Hashed Timelock Contract (HTLC) is a type of smart contract used in blockchain applications to eliminate counterparty risk by enabling the implementation of time-bound transactions. In practical terms, this means that recipients of a transaction have to acknowledge payment by generating cryptographic proof within a certain timeframe. Otherwise, the transaction does not take place.",investopedia,1,35.98,12.8,15,16.77,16.1,11.43,13.5,15.32
Hashgraph Consensus Mechanism,"Hashgraph is ab decentralized consensus mechanism using the blockchain concepts of ""gossip,"" ""gossip about gossip"" and virtual voting. It purports to solve problems with the standard consensus-building algorithms, like proof of work (PoW), in terms of better speed and higher efficiency as it does not send any votes or details over the network, which often leads to congestion and delays.",investopedia,1,41.03,15,0,14.17,19.6,12.23,19,16.67
Hawala,"Hawala is an informal method of transferring money without any physical money actually moving. It is described as a ""money transfer without money movement."" Another definition is simply ""trust.""",investopedia,1,36.25,10.6,11.2,13.02,10.3,10.11,5.833333333,10.78
Hawk,"An inflation hawk, also known in monetary jargon as a hawk, is a policymaker or advisor who is predominantly concerned with the potential impact of interest rates as they relate to fiscal policy. Hawks are seen as willing to allow interest rates to rise in order to keep inflation under control.",investopedia,1,37.13,14.4,0,10.45,13.9,9.86,17.75,16.47
Hawthorne Effect,The Hawthorne Effect is the inclination of people who are the subjects of an experimental study to change or improve the behavior being evaluated only because it is being studied and not because of changes in the experiment parameters or stimulus.,investopedia,1,21.4,20.5,0,12.9,22.9,10.29,27.5,23.23
Hazard Insurance,"Hazard insurance is coverage that protects a property owner against damage caused by fires, severe storms, hail/sleet, or other natural events. As long as the specific weather event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. Typically, the property owner will be required to pay for a year's worth of premiums at the time of purchasing the policy, but this practice will depend on the exact details of the policy.",investopedia,1,44.07,13.8,15.5,11.44,15.8,10.04,18.16666667,15.74
Hazardous Activity,"Hazardous activity refers to a recreational pursuit that life or disability insurance policy considers high-risk. The activities are not typically covered by insurance as they carry an increased potential for injury or loss. Hazardous activities include scuba diving, BASE jumping, hang gliding, race car driving, flying a plane, horseback riding, bungee jumping, parasailing, and off-roading. Further, some employment falls into this category such as some construction work, logging, aircraft pilots, offshore oil rig worker, offshore fisherman, structural steelworkers, and underground mining.",investopedia,1,25.49,14.7,15.6,18.16,18.7,12.25,14.875,15.53
Head and Shoulders Pattern,"A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.",investopedia,1,55.58,11.5,0,12.48,15.1,10.09,15.5,13.77
Head-Fake Trade,"A head-fake trade is when a security's price makes a move in one direction, but then reverses course and moves in the opposite direction. The head-fake trade gets its name from a tactic commonly used by a basketball or football player to throw the opposition off, by leading with their head to pretend that they are moving in one direction but then move in the opposite direction. The head-fake trade occurs most frequently at key breakout points, such as major support or resistance levels, or closely watched moving averages like the 50-day or 200-day simple moving average (SMA).",investopedia,1,46.74,14.9,15.9,11.15,18.2,9.45,21.33333333,17.16
Head of Household,Taxpayers may file tax returns as heads of household (HOH) if they pay more than half the cost of supporting and housing a qualifying person. Taxpayers eligible to classify themselves as an HOH get higher standard deductions and lower tax rates than taxpayers who file as single or married filing separately.,investopedia,1,45.59,13.2,0,12.71,15.8,10.47,17.25,15.69
Head Trader,"A head trader is the manager of a trading business, responsible for the positions, risk, and ultimately, the profitability of that business. In a registered securities firm, the head trader supervises all traders and other personnel within their purview and may also trade themselves. Most notably, the head trader is charged with ensuring regulatory and internal compliance for every employee who is part of the trading operation (i.e. not just traders). A head trader may also be referred to as a ""head of trading.""",investopedia,1,41.7,12.7,14.2,11.6,13.4,9.57,14.25,15.07
Headhunter,A headhunter is a company or individual that provides employment recruiting services on behalf of the employer. Headhunters are hired by firms to find talent and to locate individuals who meet specific job requirements. Headhunters may also be referred to as executive recruiters and the function they perform is often called executive search. Headhunters may have a pool of candidates for specific positions or may act aggressively to find talent by looking at competitors' employees. Employers tend to enlist headhunters when there is a sense of urgency and they are unable to find the right person to fill a role on their own.,investopedia,1,50.57,11.3,14,12.18,13.1,9.87,13.6,14.07
Headline Earnings,"Headline earnings refer to a method of reporting corporate earnings based entirely on operational, trading, and capital investment activities achieved during the previous period. Excluded from the headline earnings figure are profits or losses associated with the sale or termination of discontinued operations, fixed assets or related businesses, or from any permanent devaluation or write-off of their values.",investopedia,1,8.2,19.3,0,18.23,22,12.97,23.5,23.32
Headline Effect,The headline effect refers to the effect that negative news in the popular press has on a corporation or an economy. Many economists believe that negative news headlines make consumers more reluctant to spend money.,investopedia,1,53.71,10.1,0,12.06,11.7,9.92,12.25,13.86
Headline Inflation,"Headline inflation is the raw inflation figure reported through the Consumer Price Index (CPI) that is released monthly by the Bureau of Labor Statistics. The CPI calculates the cost to purchase a fixed basket of goods, as a way of determining how much inflation is occurring in the broad economy. The CPI uses a base year and indexes the current year's prices according to the base year's values.",investopedia,1,56.89,11,14.1,10.51,12.7,10.34,15,14.37
Headline Risk,"Headline risk is the possibility that a news story will adversely affect the price of an investment, such as a stock or commodity. Headline risk can also impact the performance of a specific sector or the entire stock market.",investopedia,1,51.68,10.9,0,10.1,10.9,9.46,12.75,13.95
Heads of Agreement,"A ""heads of"" agreement is a non-binding document that outlines the basic terms of a tentative partnership agreement or transaction. Also known as a ""heads of terms,"" or ""letter of intent,"" a heads of agreement marks the first step on the path to a full legally binding agreement or contract and a guideline for the roles and responsibilities of the parties involved in a potential partnership before any binding documents are drawn up. Such a document is commonly used in commercial transactions, such as the purchase of a business.",investopedia,1,49.79,13.7,15,11.38,16.9,9.9,19.16666667,16.37
Health Insurance,"Health insurance is a type of insurance coverage that typically pays for medical, surgical, prescription drug and sometimes dental expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees, with premiums partially covered by the employer but often also deducted from employee paychecks. The cost of health insurance premiums is deductible to the payer, and the benefits received are tax-free, with certain exceptions for S Corporation Employees.",investopedia,1,30.2,15,18.5,15.15,17.2,11.08,19.25,18.77
Health Insurance Marketplace,"The Health Insurance Marketplace is a platform that offers insurance plans to individuals, families, and small businesses. The Affordable Care Act (ACA) established the Marketplace as a means to extend health insurance coverage to millions of uninsured Americans. Many states offer their own marketplaces, while the federal government manages an exchange open to residents of other states.",investopedia,1,35.27,13.1,16.3,15.78,15.6,9.84,14.83333333,16.02
Health Insurance Portability and Accountability Act (HIPAA),The Health Insurance Portability and Accountability Act (HIPAA) is an act created by the U.S. Congress in 1996 that amends both the Employee Retirement Income Security Act (ERISA) and the Public Health Service Act (PHSA). HIPAA was enacted in an effort to protect individuals covered by health insurance and to set standards for the storage and privacy of personal medical data.,investopedia,1,42.41,12.4,15,12.01,13.3,11.11,14.5,15.99
Health Maintenance Organizations (HMOs),"An individual who needs to secure health insurance may find a variety of health insurance providers with unique features. One type of insurance provider that is popular in the health insurance marketplace is a health maintenance organization (HMO), an insurance structure that provides coverage through a network of physicians.",investopedia,1,38.15,14,0,15.44,17.6,11.3,18.25,16.33
Health Plan Categories,"Health plan categories refer to the four types of health insurance plans that are differentiated based on the average percentage of healthcare expenses that will be paid by the plan. In the United States, health insurance plans are offered in four actuarial levels: Bronze, Silver, Gold and Platinum. The level defines the amount of expenses each type of plan covers.",investopedia,1,51.18,11.1,13.6,12.13,13,9.63,13.33333333,12.67
Health Reimbursement Arrangement (HRA),"A health reimbursement arrangement (HRA) is an employer-funded plan that reimburses employees for qualified medical expenses and, in some cases, insurance premiums. Employers are allowed to claim a tax deduction for the reimbursements they make through these plans, and reimbursement dollars received by employees are generally tax-free.",investopedia,1,22.24,16,0,17.82,19.5,12.19,19.75,21.31
Health Savings Account (HSA),"A Health Savings Account (HSA) is a tax-advantaged account created for or by individuals covered under high-deductible health plans (HDHPs) to save for qualified medical expenses. Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year. The contributions are invested over time and can be used to pay for qualified medical expenses, such as medical, dental, and vision care, as well as prescription drugs.",investopedia,1,24.95,19.1,0,13.47,22.6,9.92,28.25,21.93
Healthcare Power of Attorney (HCPA),A healthcare power of attorney (HCPA) is a legal document that allows an individual to empower another person to make decisions about their medical care. A healthcare power of attorney refers to both a legal document and a specific person with legal authority.,investopedia,1,32.73,14,0,11.6,13.2,9.48,16.25,16.04
Healthcare Sector,"The healthcare sector consists of businesses that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare to patients.",investopedia,1,1.77,19.7,0,21.06,23.6,13.16,22.5,19.69
Heating Degree Day (HDD),"A heating degree day (HDD) is a measurement designed to quantify the demand for energy needed to heat a building. It is the number of degrees that a day's average temperature is below 65o Fahrenheit (18o Celsius), which is the temperature below which buildings need to be heated. The price of weather derivatives traded in the winter is based on an index made up of monthly HDD values. The settlement price for a weather futures contract is calculated by summing HDD values for a month and multiplying that sum by $20.",investopedia,1,56.79,11,12.2,9.58,12.1,10.15,13.875,12.64
Heath-Jarrow-Morton Model,The Heath-Jarrow-Morton Model (HJM Model) is used to model forward interest rates. These rates are then modeled to an existing term structure of interest rates to determine appropriate prices for interest rate sensitive securities.,investopedia,1,37.3,12.3,0,15.19,14.5,11.45,13,13.86
Heatmap,"A heatmap is a two-dimensional visual representation of data using colors, where the colors all represent different values.",investopedia,1,27.83,13.9,0,15.6,15.3,12.42,13,13.87
Heavy Industry,"Heavy industry relates to a type of business that typically carries a high capital cost (capital-intensive), high barriers to entry, and low transportability. The term ""heavy"" refers to the fact that the items produced by ""heavy industry"" used to be products such as iron, coal, oil, ships, etc. Today, the reference also refers to industries that disrupt the environment in the form of pollution, deforestation, etc.",investopedia,1,49.15,11.9,14.6,12.01,14.7,9.75,15,14.86
Heckscher-Ohlin Model,"The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce. Also referred to as the H-O model or 2x2x2 model, it's used to evaluate trade and, more specifically, the equilibrium of trade between two countries that have varying specialties and natural resources.",investopedia,1,36.63,14.6,0,14.45,17.9,11.61,18,18.09
Hedge Accounting,"Hedge accounting is a method of accounting where entries to adjust the fair value of a security and its opposing hedge are treated as one. Hedge accounting attempts to reduce the volatility created by the repeated adjustment to a financial instrument's value, known as fair value accounting or mark to market. This reduced volatility is done by combining the instrument and the hedge as one entry, which offsets the opposing's movements.",investopedia,1,47.42,12.5,16.3,12.42,14.8,9.93,17.16666667,16.24
Hedge Clause,"A hedge clause is a clause in a research report that attempts to absolve the writer of any responsibility for the accuracy of information included in the report or publication. The hedge clause attempts to indemnify the author, or authors, against any responsibility for any errors, omissions or oversights contained within the document. Hedge clauses can be found in analyst reports, company press releases and on most investing websites.",investopedia,1,39.67,13.4,14.6,13.64,15.4,10.73,15.5,15
Hedge Fund,"Hedge funds are alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors. Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark).",investopedia,1,50.5,13.4,0,16.14,20.2,11.34,19.5,17.81
Hedge Fund Manager,"A hedge fund manager is firm or an individual who manages, makes investment decisions, and oversees the operations of a hedge fund. Managing a hedge fund can be an attractive career option because of its potential to be extremely lucrative. To be successful, a hedge fund manager must consider how to have a competitive advantage, a clearly defined investment strategy, adequate capitalization, a marketing and sales plan, and a risk management strategy.",investopedia,1,30.2,15,18.6,13.23,15.8,11.41,19.33333333,19.6
Hedged Tender,"A hedged tender is an investment strategy where an investor sells short a portion of shares they own in anticipation that not all shares tendered will be accepted. This strategy is used to protect against the risk of loss, in case the tender offer does not go through. The offer locks in the shareholder's profit no matter the outcome of the tender offer.",investopedia,1,67.08,9.1,11.2,9.23,11,8.69,12.5,11.57
Hedging Transaction,"A hedging transaction is a tactical action that an investor takes with the intent of reducing the risk of losing money (or experiencing a shortfall) while executing their investment strategy. The transaction usually involves derivatives, such as options or futures contracts, but it can be done with inversely correlated assets as well. Hedging transactions can take many different forms. While they are generally used to limit the losses that a position faces if the initial investing thesis is incorrect, they can also be used to lock in a specific amount of profit. Hedging transactions are a common tool for businesses as well as portfolio managers looking to lower their overall portfolio risk.",investopedia,1,40.28,13.2,15.4,13.18,14.7,10.95,14.2,15.75
Hedonic Pricing,Hedonic pricing is a model that identifies price factors according to the premise that price is determined both by internal characteristics of the good being sold and external factors affecting it.,investopedia,1,31.55,16.6,0,14.34,19.5,11.29,23.5,22.72
Hedonic Regression Method,"Hedonic regression is the use of a regression model to estimate the influence that various factors have on the price of a good, or sometimes the demand for a good. In a hedonic regression model, the dependent variable is the price (or demand) of the good, and the independent variables are the attributes of the good believed to influence utility for the buyer or consumer of the good. The resulting estimated coefficients on the independent variables can be interpreted as the weights that buyers place on the various qualities of the good.",investopedia,1,40.31,15.3,17.5,11.15,16.9,9.28,21.66666667,17.93
Hedonic Treadmill,A hedonic treadmill is the tendency of a person to remain at a relatively stable level of happiness despite a change in fortune or the achievement of major goals. The hedonic treadmill is also referred to as the hedonistic treadmill or hedonic adaptation.,investopedia,1,41.19,12.9,0,11.43,12.9,8.37,14.75,13.25
Heikin-Ashi Technique,The Heikin-Ashi technique averages price data to create a Japanese candlestick chart that filters out market noise.,investopedia,1,37.3,12.3,0,15.54,14.5,11.91,12.5,11.51
Heir,"An heir is defined as an individual who is legally entitled to inherit some or all of the estate of another person who dies intestate, which means the deceased person failed to establish a legal last will and testament during their living years. In such a scenario, the heir receives property according to the laws of the state in which the property is probated.",investopedia,1,47.46,14.6,0,10.05,16.6,10.16,21.5,18.43
Held by Production Clause,"Held by production is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas. The held-by-production provision thereby extends the lessee's right to operate the property beyond the initial lease term. This provision is also a feature of mineral property leases.",investopedia,1,30.91,14.7,17.9,12.25,14.5,10.21,18.33333333,16.75
Held-For-Trading Security,"A held-for-trading security is a debt or equity investment that investors purchase with the intent of selling within a short period of time, usually less than one year. Within that time frame, the investor hopes to see appreciation in the value of the security and sell it for a profit.",investopedia,1,20.73,22.8,0,10.75,26.2,11.17,16.5,24.8
Held Order,"A held order is a market order that requires prompt execution for an immediate fill. In most cases, the trader is expected to hit the best offer for buy orders or accept the best bid for sell orders. The opposite order type, a not-held order, provides traders with both time and price discretion to try and get a better fill.",investopedia,1,57.95,12.6,0,8.54,14.6,8.55,11.66666667,15.33
Held-to-Maturity (HTM),"Held-to-maturity (HTM) securities are purchased to be owned until maturity. For example, a company's management might invest in a bond that they plan to hold to maturity. There are different accounting treatments for HTM securities compared to securities that are liquidated in the short term.",investopedia,1,39.33,11.5,14.6,13.33,12.4,9.29,11.5,12.22
Helicopter Drop (Helicopter Money),A helicopter drop refers to a term first coined by Milton Friedman as a rhetorical device intended to abstract away the effects of any monetary policy transmission mechanisms in a thought experiment regarding the addition of cash to the bank accounts of all citizens—as if dropped from a helicopter overnight.,investopedia,1,20.73,22.8,0,13.88,28.3,12.43,37,28.8
Hell or High Water Contract,"A hell or high water contract (also known as a promise-to-pay contract) is a non-cancelable contract whereby the purchaser must make the specified payments to the seller, regardless of any difficulties they may encounter. Hell or high water clauses bind the purchaser or lessee to the terms of the contract until the contract's expiration.",investopedia,1,16.67,24.4,0,13.59,30.7,10.99,17.5,26.04
Help-Wanted Index (HWI),The Conference Board's Help-Wanted Index (HWI) measures how efficiently employers are matching jobs to the available workforce (the unemployed) and is an important gauge on the economy.,investopedia,1,35.61,15,0,15.67,19.8,13.75,20.5,18.21
Henry B. Tippie College Of Business,"The University of Iowa Tippie College of Business is the business school at the University of Iowa in Iowa City, Iowa. Founded in 1921, it offers both undergraduate and graduate programs.",investopedia,1,55.74,9.3,0,11.08,10.2,8.99,8.75,10.07
Henry Hub,"Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States. The hub connects to four intrastate and nine interstate pipelines, including the Transcontinental, Acadian and Sabine pipelines.",investopedia,1,56.89,11,14.1,12.19,14.2,11.26,15,15.55
Herbert A. Simon,"Herbert A. Simon (1916–2001) is an American economist and political scientist who won the Nobel Memorial Prize in Economic Sciences in 1978 for his contributions to modern business economics and administrative research. He is widely associated with the theory of bounded rationality, which states that individuals do not make perfectly rational decisions because of the difficulty in obtaining and processing all the information needed to do so.",investopedia,1,12.09,19.9,0,15.62,22,12.6,26.75,24.74
Herd Instinct,"The term herd instinct refers to a phenomenon where people join groups and follow the actions of others under the assumption that other individuals have already done their research. Herd instincts are common in all aspects of society, even within the financial sector, where investors follow what they perceive other investors are doing, rather than relying on their own analysis.",investopedia,1,41.03,15,0,13.88,18.8,10.65,18.5,16.67
Herfindahl-Hirschman Index (HHI),"The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration and is used to determine market competitiveness, often pre- and post-M&A transactions.",investopedia,1,31.21,14.6,0,17.58,19.7,12.33,15.5,16.16
Heritage and Stabilization Fund (HSF),"The Heritage and Stabilization Fund is a sovereign wealth fund that was established in March 2007 by the government of the Republic of Trinidad and Tobago. It was previously known as the Interim Revenue Stabilization Fund, which was set up in 2000. The primary objectives of the fund are to save and invest surplus petroleum production revenues to support and sustain public expenditures during periods of revenue downturn and to provide a heritage for future generations of the nation.",investopedia,1,36.32,14.7,16.3,12.77,16.1,10.74,18.5,17.61
Heroes Earned Retirement Opportunities Act (HERO),"The Heroes Earned Retirement Opportunities Act (HERO) is a 2006 law that allows military personnel to fund their individual retirement accounts (IRAs) with combat pay. It is a tax break designed for those who have served in combat zones. Under the law, combat-related compensation paid since January 2004, which is tax-free, can be used to fund IRAs.",investopedia,1,52.19,10.7,13,11.6,12.5,9.84,12.5,12.51
Herrick Payoff Index,"The Herrick Payoff Index is a technical analysis tool that tracks price, volume, and open interest to identify potential trends and reversals in futures and options markets. Traders often use the indicator as a measure of crowd psychology and to follow money flows in order to make forward-looking decisions.",investopedia,1,38.15,14,0,13.18,15.8,11.62,17.25,17.15
Hersey-Blanchard Model,"The Hersey-Blanchard Model suggests no single leadership style is better than another. Instead of focusing on workplace factors, the model suggests leaders adjust their styles to those they lead and their abilities.",investopedia,1,46.78,10.7,0,15.08,13.7,10.84,10.5,10.15
Heston Model,"The Heston Model, named after Steve Heston, is a type of stochastic volatility model used to price European options.",investopedia,1,43.73,11.9,0,11.72,12.4,12.06,14.5,16.02
Heterodox Economics,"Heterodox economics is the analysis and study of economic principles considered outside of mainstream or orthodox schools of economic thought. Schools of heterodox economics vary widely and have few common characteristics other than propounding theories, assumptions, or methodologies that fall outside of or contradict the mainstream Keynesian and neoclassical movements.",investopedia,1,20.72,16.6,0,20.14,21.6,11.51,21.5,22
Heteroskedastic,"Heteroskedastic refers to a condition in which the variance of the residual term, or error term, in a regression model varies widely. If this is true, it may vary in a systematic way, and there may be some factor that can explain this. If so, then the model may be poorly defined and should be modified so that this systematic variance is explained by one or more additional predictor variables.",investopedia,1,56.29,11.2,13,9.35,12.2,9.3,14.66666667,13.89
Heteroskedasticity,"In statistics, heteroskedasticity (or heteroscedasticity) happens when the standard deviations of a predicted variable, monitored over different values of an independent variable or as related to prior time periods, are non-constant. With heteroskedasticity, the tell-tale sign upon visual inspection of the residual errors is that they will tend to fan out over time, as depicted in the image below.",investopedia,1,16.15,18.3,0,15.97,20.7,11.26,22.25,19.94
Heuristics,"A heuristic, or a heuristic technique, is any approach to problem-solving that uses a practical method or various shortcuts in order to produce solutions that may not be optimal but are sufficient given a limited timeframe or deadline. Heuristics methods are intended to be flexible and are used for quick decisions, especially when finding an optimal solution is either impossible or impractical and when working with complex data.",investopedia,1,20.05,18.9,0,13.99,20.9,12.06,24.5,20.66
Hiccup,"Hiccup is a slang term for a short-term disruption within a longer-term plan, goal, or trend. A hiccup can be used to describe the near-term business outlook of a particular company, a stock price downturn, or a blip in the stock market as a whole.",investopedia,1,65.56,9.7,0,8.13,11.2,8.26,12.75,10.78
Hidden Taxes,"Hidden taxes are taxes indirectly assessed on consumer goods without the explicitly knowledge of consumers who purchase the product. At the heart of the concept of a hidden tax is the notion that if you cannot see it, your purchasing behavior will be largely unchanged. With the advent of modern transactional systems, visibility into a variety of hidden taxes ranging from highway tolls paid using automatic transponders to music downloads is becoming more obscured.",investopedia,1,25.46,18.9,0,13.94,22.3,11.45,15.33333333,19.12
Hidden Values,Hidden values are assets that are undervalued on a company's balance sheet and therefore may not be incorporated into or reflected in the company's share price.,investopedia,1,36.63,14.6,0,12.48,16,9.78,18,16.55
Hierarchical Deterministic Wallet (HD Wallet),"An HD Wallet, or Hierarchical Deterministic wallet, is a new-age digital wallet that automatically generates a hierarchical tree-like structure of private/public addresses (or keys), thereby addressing the problem of the user having to generate them on their own.",investopedia,1,7.53,21.7,0,16.89,26,12.17,29,23.62
Hierarchy of GAAP,"The hierarchy of generally accepted accounting principles (GAAP) refers to a four-level framework that classifies the Financial Accounting Standards Board (FASB), the U.S. Securities and Exchange Commission (SEC), and the American Institute of Certified Public Accountants (AICPA) guidance on accounting practices and standards by their level of authority. Top-level guidance typically addresses broad accounting issues while those at a lower level deal with more technical issues.",investopedia,1,23.77,15.4,17.9,17.87,19.2,11.67,17.66666667,18.5
High Beta Index,A high beta index is a basket of stocks that exhibits greater volatility than a broad market index such as the S&P 500 Index. The S&P 500 High Beta Index is the most well-known of these indexes. It tracks the performance of 100 companies in the S&P 500 that are the most sensitive to changes in market returns.,investopedia,1,68.81,8.5,11.2,7.6,9,9.22,11.66666667,11.17
High Close,A high close is a trading strategy that stock manipulators use that entails making small trades at high prices during the final minutes of trading so as to give the impression that the stock performed really well.,investopedia,1,42.38,16.5,0,10.92,19.6,9.74,22.5,18.04
"High Earners, Not Rich Yet (HENRYs)","High earners, not rich yet (HENRYs) are individuals who currently have significant discretionary income and a strong chance of being wealthy in the future. The term HENRYs was coined in a 2003 Fortune Magazine article to refer to a segment of families earning between $250,000 and $500,000, but not having much left after taxes, schooling, housing, and family costs—not to mention saving for an affluent retirement.",investopedia,1,37.98,16.2,0,13.01,20.1,11.49,21.5,18.05
High-Deductible Health Plan (HDHP),"A high-deductible health plan (HDHP) is a health insurance plan with a high minimum deductible for medical expenses. A deductible is the portion of an insurance claim that the insured pays out of pocket. Once an individual has paid that portion of a claim, the insurance company will cover the other portion, as specified in the contract. An HDHP usually has a higher annual deductible than a typical health plan, and its minimum deductible varies by year. For 2019 it is $1,350 for individuals and $2,700 for families, and it will rise to $1,400 and $2,800 in 2020.",investopedia,1,60.04,9.8,13.3,9.34,11,9.12,13,12.33
High-Frequency Trading (HFT),"High-frequency trading, also known as HFT, is a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with the fastest execution speeds are more profitable than traders with slower execution speeds.",investopedia,1,42.72,12.3,14.1,13.75,14.3,11.21,13.66666667,14
High-Low Index,"The high-low index compares stocks that are reaching their 52-week highs with stocks that are hitting their 52-week lows. The high-low index is used by investors and traders to confirm the prevailing market trend of a broad market index, such as the Standard and Poor’s 500 index (S&P 500).",investopedia,1,71.99,9.3,0,10.45,14.1,10.65,12.75,10.62
High-Low Method,"In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.",investopedia,1,47.12,12.7,0,10.45,13.3,9.43,15.5,13.77
High Minus Low (HML),"High Minus Low (HML), also referred to as the value premium, is one of three factors used in the Fama-French three-factor model. The Fama-French three-factor model is a system for evaluating stock returns that the economists Eugene Fama and Kenneth French developed. HML accounts for the spread in returns between value stocks and growth stocks. This system argues that companies with high book-to-market ratios, also known as value stocks, outperform those with lower book-to-market values, known as growth stocks.",investopedia,1,59.84,9.8,12.2,13.4,14.5,9.42,12.375,10.96
High-Net-Worth Individuals (HNWI),High-net-worth individual is a financial industry classification to denote an individual with liquid assets above a certain figure.,investopedia,1,-6.02,18.6,0,18.21,17.4,10.67,15,16.09
High-Ratio Loan,A high ratio loan is a loan whereby the loan value is high relative to the property value being used as collateral. Mortgage loans that have high loan ratios have a loan value that approaches 100% of the value of the property. A high ratio loan might be approved for a borrower who is unable to put down a large down payment.,investopedia,1,67.38,9,11.2,7.02,9,7.97,12.33333333,11.51
High-Speed Data Feed,"High-speed data feeds, which transmit data such as price quotes and yields in real-time and without delays, are used in high-frequency trading for real-time data analysis.",investopedia,1,36.63,14.6,0,14.05,18,10.39,17,13.48
High Street Bank,"The term high street bank refers to a large retail bank that has many branch locations. High street banks are major, widespread institutions such as those found in the main commercial sector of a town or city. They offer everyday banking services such as deposit accounts and credit facilities to consumers and businesses. People generally refer to high street banks as such in order to differentiate them from other institutions such as investment banks. The term originated in the United Kingdom, where high street is commonly used as the British equivalent of Main Street.",investopedia,1,60.85,9.4,12.3,12.07,12.2,8.6,12,12.2
High-Water Mark,"A high-water mark is the highest peak in value that an investment fund or account has reached. This term is often used in the context of fund manager compensation, which is performance-based. The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses money over a period, he must get the fund above the high-water mark before receiving a performance bonus from the assets under management (AUM).",investopedia,1,60.85,9.4,13.8,10.73,11.4,8.15,12.875,10.72
High-Yield Bond,"High-yield bonds (also called junk bonds) are bonds that pay higher interest rates because they have lower credit ratings than investment-grade bonds. High-yield bonds are more likely to default, so they must pay a higher yield than investment-grade bonds to compensate investors.",investopedia,1,58.62,10.3,0,14.5,15.9,9.57,12.5,11.26
High-Yield Bond Spread,"A high-yield bond spread is the percentage difference in current yields of various classes of high-yield bonds compared against investment-grade corporate bonds, Treasury bonds, or another benchmark bond measure. Spreads are often expressed as a difference in percentage points or basis points. The high-yield bond spread is also referred to as credit spread.",investopedia,1,53.51,10.2,12.5,15.02,14.7,10.17,11.5,10.1
High-Yield Investment Program (HYIP),A high-yield investment program (HYIP) is a fraudulent investment scheme that purports to deliver extraordinarily high returns on investment. High-yield investment programs often advertise yields of more than 100% per year in order to lure in victims.,investopedia,1,35.78,12.9,0,15.32,15.2,11.81,13.25,12.81
Higher Education Act of 1965 (HEA),The Higher Education Act of 1965 (HEA) is a law designed to strengthen the educational resources of the colleges and universities of the United States and to provide financial assistance to post-secondary students.,investopedia,1,29.52,17.3,0,14.57,21.1,12.45,22.5,19.26
"Highest In, First Out (HIFO)","Highest in, first out (HIFO) is an inventory distribution and accounting method in which the inventory with the highest cost of purchase is the first to be used or taken out of stock. This will impact the company's books such that for any given period of time, the inventory expense will be the highest possible for the cost of goods sold (COGS), and the ending inventory will be the lowest possible.",investopedia,1,43.9,16,0,9.47,18.2,8.51,22.75,17.02
Highly Compensated Employee,"A highly compensated employee (HCE) is, according to the Internal Revenue Service, anyone who has done one of the following:",investopedia,1,34.26,13.5,0,11.72,13.3,10.16,15,16
Highly Leveraged Transaction (HLT),"A highly leveraged transaction (HLT) is a bank loan to a company which has a large amount of debt. Highly leveraged transactions were popularized in the 1980s as a way to finance buyouts, acquisitions or recapitalizations. Highly leveraged transactions are risky in that they add to a company's debt load and often result in an unattractive debt-to-equity ratio, but the interest income generated from these transactions is significant enough to make them attractive to investors and financial institutions.",investopedia,1,36.63,14.6,16.3,14.22,17.5,9.99,18.33333333,17.07
Hikkake Pattern,"The hikkake pattern is a price pattern used by technical analysts and traders hoping to identify a short-term move in the market's direction. The pattern has two different setups, one implying a short-term downward movement in price action, and a second setup implying a short-term upward trend in price.",investopedia,1,46.61,12.8,0,12.36,15.4,9.69,15.75,13.07
Hindenburg Omen,The Hindenburg Omen is a technical indicator that was designed to signal the increased probability of a stock market crash. It compares the percentage of new 52-week highs and new 52-week lows in stock prices to a predetermined reference percentage that is supposed to predict the increasing likelihood of a market crash.,investopedia,1,45.09,13.4,0,12.71,16,11,18,17.32
Hindsight Bias,Hindsight bias is a psychological phenomenon that allows people to convince themselves after an event that they accurately predicted it before it happened. This can lead people to conclude that they can accurately predict other events. Hindsight bias is studied in behavioral economics because it is a common failing of individual investors.,investopedia,1,37,12.4,12.5,14.44,13.5,10.87,11.33333333,12.3
HIPAA Waiver of Authorization,A legal document that allows an individual’s health information to be used or disclosed to a third party. The waiver is part of a series of patient-privacy measures set forth in the Health Insurance Portability and Accountability Act (HIPAA) of 1996.,investopedia,1,42.21,12.5,0,11.84,13.1,10.82,13.75,15.03
Hire Purchase Agreement,"Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. The term hire purchase is commonly used in the United Kingdom and it's more commonly known as an installment plan in the United States. However, there can be a difference between the two: With some installment plans, the buyer gets the ownership rights as soon as the contract is signed with the seller. With hire purchase agreements, the ownership of the merchandise is not officially transferred to the buyer until all the payments have been made.",investopedia,1,54.05,12.1,13.8,11.73,15.1,9.08,16,13.73
Hiring Freeze,"A hiring freeze is when an employer temporarily halts non-essential hiring of personnel to reduce costs, usually when an organization is under financial duress. Such a cost-cutting effort may also be undertaken by management due to a recession or other economic or market dislocation or crisis, such as one that causes production overcapacity or redundancy.",investopedia,1,18.18,17.6,0,14.34,18.3,11.89,21.25,21.91
Histogram,"A histogram is a graphical representation that organizes a group of data points into user-specified ranges. Similar in appearance to a bar graph, the histogram condenses a data series into an easily interpreted visual by taking many data points and grouping them into logical ranges or bins.",investopedia,1,30.7,14.8,0,12.77,14.9,11.52,16.75,17.91
Historic Pricing,Historic pricing is a unit pricing method used to calculate the value of an asset using the last valuation point calculated. Historic pricing is used when the value of an asset does not update in real time.,investopedia,1,61.16,9.3,0,9.23,9.6,8.82,10.75,10.64
Historic Structure,"A historic structure is a sub-category of a historic property as designated by the National Register of Historic Places, referred to as the National Register. In casual conversation, a historic structure refers to a building or other structure, such as a bridge, mine, canal, ship, highway, or locomotive, that is significant because of its link to an important period in the past, but the official designation distinguishes a structure as being distinct from a human shelter.",investopedia,1,24.45,19.3,0,13.01,22.5,10.09,27,21.52
Historical Cost,A historical cost is a measure of value used in accounting in which the value of an asset on the balance sheet is recorded at its original cost when acquired by the company. The historical cost method is used for fixed assets in the United States under generally accepted accounting principles (GAAP).,investopedia,1,45.09,13.4,0,10.45,14.2,9.18,17.5,15.02
Historical Returns,"Historical returns are often associated with the past performance of a security or index, such as the S&P 500. Analysts review historical return data when trying to predict future returns or to estimate how a security might react to a particular situation, such as a drop in consumer spending. Historical returns can also be useful when estimating where future points of data may fall in terms of standard deviations.",investopedia,1,31.21,14.6,15,11.84,13.9,10.5,15.83333333,15
Historical Volatility (HV),"Historical volatility (HV) is a statistical measure of the dispersion of returns for a given security or market index over a given period of time. Generally, this measure is calculated by determining the average deviation from the average price of a financial instrument in the given time period. Using standard deviation is the most common, but not the only, way to calculate historical volatility. The higher the historical volatility value, the riskier the security. However, that is not necessarily a bad result as risk works both ways—bullish and bearish.",investopedia,1,28.03,13.8,15.6,12.41,12.4,9.66,13.7,13.86
Hit the Bid,"‘Hit the bid’ is a trading term used for when a trader agrees to sell at the market bid or bid price quoted by another trader. The bid price is the highest price a buyer is willing to pay for a security or asset. The ""bid-ask"" spread is the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. An individual looking to sell will hit the bid if they wish to transact immediately at that price.",investopedia,1,64.75,10,9.5,6.68,9.7,7.51,12.875,10.61
HM Revenue and Customs (HMRC),"The term Her Majesty's Revenue and Customs (HMRC) refers to the tax authority of the U.K. government. The agency, also known as Her Majesty's Revenue Services, is responsible for collecting taxes, paying child benefits, enforcing tax and customs laws, and enforcing the payment of minimum wage by employers.",investopedia,1,47.12,12.7,0,12.89,16.1,11.41,16.5,15.43
Hoarding,"Hoarding is the purchase and warehousing of large quantities of a commodity by a speculator with the intent of benefiting from future price increases. The term hoarding is most frequently applied to buying commodities, especially gold. However, hoarding is sometimes used in other economic contexts. For example, political leaders might complain that speculators are hoarding dollars during a currency crisis.",investopedia,1,30.87,12.7,14.2,15.3,13.5,10.96,11.25,15.33
Hobby Loss,The term hobby loss refers to a loss that results from a business deemed to be a recreational activity or hobby by the Internal Revenue Service (IRS). Taxpayers cannot claim and recoup this money when the agency says it is spent while pursuing a hobby. That's because losses aren't allowed for expenses in excess of hobby income. This means these expenses aren't deductible as they are with a business.,investopedia,1,56.59,11.1,11.9,10.68,13.1,9.35,13.83333333,12.68
Hockey Stick Chart,A hockey stick chart is a price line chart in which a sharp increase occurs suddenly after a short period of quiescence or relative stability. The line connecting the data points thus resembles a hockey stick.,investopedia,1,53.21,10.3,0,10.15,10.3,10.23,12.5,14.98
Hodrick-Prescott (HP) Filter,The Hodrick-Prescott (HP) filter refers to a data-smoothing technique. The HP filter is commonly applied during analysis to remove short-term fluctuations associated with the business cycle. Removal of these short-term fluctuations reveals long-term trends. This can help with economic or other forecasting associated with the business cycle.,investopedia,1,34.12,11.4,12.2,16.97,14.3,10.6,7.375,9.83
Holacracy,"A holacracy is a system of corporate governance whereby members of a team or business form distinct, autonomous, yet symbiotic, teams to accomplish tasks and company goals. The concept of a corporate hierarchy is discarded in favor of a flat organizational structure where all workers have an equal voice while simultaneously answering to the direction of shared authority.",investopedia,1,25.12,17,0,14.4,18.7,11.34,22,19.88
Hold,"Hold is an analyst's recommendation to neither buy nor sell a security. A company with a hold recommendation generally is expected to perform with the market or at the same pace as comparable companies. This rating is better than sell but worse than buy, meaning that investors with existing long positions shouldn't sell but investors without a position shouldn't purchase either.",investopedia,1,42.41,12.4,14.6,12.59,13.5,8.53,14.16666667,14.68
Hold Harmless Claus,The hold harmless clause is a statement in a legal contract that absolves one or both parties in a contract of legal liability for any injuries or damage suffered by the party signing the contract.,investopedia,1,44.41,15.8,0,10.17,18,10.34,18.5,15.14
Holdco,"Holdco is an abbreviation for ""holding company,"" which is a firm that exercises control over one or more additional firm(s). The holdco accomplishes this through the acquisition of stock that is sufficient to control or influence the voting by shareholders. The holding company earns money by collecting the dividends from the shares of firms in which it owns a controlling interest.",investopedia,1,42.41,12.4,15.5,12.65,13.7,10.34,14.83333333,15.99
Holder of Record,"A holder of record is the name of the person who is the registered owner of a security and who has the rights, benefits and responsibilities of ownership. The holder of record for a stock typically has shareholder voting rights and receives dividend payouts, if there are any. The holder of record for a bond owns the bond and receives the principal and interest payments. When the owner sells the security, they cease to be the holder of record.",investopedia,1,59.84,9.8,12.6,9.23,10.4,8.42,12.625,12.98
Holding Company,"A holding company is a business entity—usually a corporation or limited liability company (LLC). Typically, a holding company doesn’t manufacture anything, sell any products or services, or conduct any other business operations. Rather, holding companies hold the controlling stock in other companies.",investopedia,1,14.97,14.7,15,16.81,14.7,10.35,11.33333333,15.12
Holding Company Depository Receipt (HOLDR),"A holding company depository receipt (HOLDR) was a security that allowed investors to buy and sell a basket of stocks in a single transaction. Like exchange-traded funds (ETFs), HOLDRs allowed investors to trade stocks in a specific industry, sector, or group. ETFs, however, provide a more efficient and flexible structure for investors and issuers.",investopedia,1,44.75,11.5,13.6,12.93,13.5,10.67,12.33333333,12.39
Holding Costs,"Holding costs are those associated with storing inventory that remains unsold. These costs are one component of total inventory costs, along with ordering and shortage costs.",investopedia,1,49.82,9.5,0,14.6,12.2,10.96,8,11.35
Holding Period,"A holding period is the amount of time the investment is held by an investor, or the period between the purchase and sale of a security. In a long position, the holding period refers to the time between an asset's purchase and its sale. In a short options position, the holding period is the time between when a short seller buys back the securities and when the security is delivered to the lender to close the short position.",investopedia,1,40.35,17.3,0,8.95,19.3,8.61,17,18.68
Holding Period Return (Yield),"Holding period return is the total return received from holding an asset or portfolio of assets over a period of time, known as the holding period, generally expressed as a percentage. Holding period return is calculated on the basis of total returns from the asset or portfolio (income plus changes in value). It is particularly useful for comparing returns between investments held for different periods of time.",investopedia,1,31.92,14.3,15.5,12.54,14.2,9.22,15.83333333,14.29
Holding the Market,"Holding the market is the deliberate practice of placing active or pending orders for a security into a market where the price is dropping rapidly in an attempt to artificially ""hold"" the price of the security steady, or create a floor in the security. This practice is outlawed in most instances, except when a broker or other party is mandated to keep the price of a security steady; this is only done in rare cases where there isn't enough market depth to hold the price.",investopedia,1,36.8,18.7,0,9.65,21.4,9.46,24.75,18.88
Holdings,"Holdings are the contents of an investment portfolio held by an individual or an entity, such as a mutual fund or a pension fund. Portfolio holdings may encompass a wide range of investment products, including stocks, bonds, mutual funds, options, futures, and exchange traded funds (ETFs).",investopedia,1,39.67,13.4,0,12.54,15.2,11.64,16.5,15.29
Holdover Tenant,"A holdover tenant is a renter who remains in a property after the expiration of the lease. If the landlord continues to accept rent payments, the holdover tenant can continue to legally occupy the property, and state laws and court rulings determine the length of the holdover tenant’s new rental term. If the landlord does not accept further rent payments, the tenant is considered to be trespassing, and if they do not promptly move out, an eviction may be necessary.",investopedia,1,52.83,12.5,14.1,10.74,14.9,9.5,17,15.68
Holdovers,"In finance, the term holdovers refers to transactions—usually checks—that have not yet been processed. In most cases, the period of time in which checks are held as holdovers typically does not exceed one business day.",investopedia,1,62.17,8.9,0,12.24,12.1,9.47,10.25,11.57
Hole-In-One Insurance,"Hole-in-one insurance is a type of price-indemnification coverage, originally named for insurance policies taken out by golf-tournament sponsors who offer the possibility of big-ticket prizes to contestants who score holes in one, on the course.",investopedia,1,19.03,19.3,0,16.95,24.5,11.24,25.5,22
Hollowing Out,"Hollowing out is the deterioration of a country’s manufacturing sector when producers opt for low-cost facilities overseas. Some economists argue that the economies of Japan, the United States, and other more developed nations are being hollowed out, posing a threat to full employment.",investopedia,1,32.73,14,0,15.49,16.6,11.68,14.75,16.04
Hollywood Stock Exchange (HSX),"The Hollywood Stock Exchange (HSX) is an online prediction market in which ""investors"" bet on the performance of various components of the entertainment industry. The bets are made using credits called Moviestocks, Starbonds, TVStocks, Movie Funds, Idol Warrants, and derivatives.",investopedia,1,42.72,12.3,0,16.07,17,12.92,14.5,17
Holographic Will,"A holographic will is a handwritten and testator-signed document and is an alternative to a will produced by a lawyer. Some states do not recognize holographic wills. States that do permit holographic wills require the document meet specific requirements to be valid. The minimal requirements for most states are proof that the testator wrote the will, evidence that the testator had the mental capacity to write the will, and the will must contain the testator's wish to disburse personal property to beneficiaries.",investopedia,1,50.67,11.3,16.2,12.94,13.8,9.47,15.5,15.52
Home,"A home is a physical domicile or structure in which a person or household resides. In a legal sense, a home is the place of permanent residency where one lives, or intends to return to live.",investopedia,1,70.13,8,0,6.73,7.9,8.48,10.5,10.53
Home Affordable Modification Program (HAMP),The Home Affordable Modification Program (HAMP) was a loan modification program introduced by the federal government in 2009 to help struggling homeowners avoid foreclosure. The program's focus was to help homeowners who paid more than 31% of their gross income toward mortgage payments. The program expired at the end of 2016.,investopedia,1,54.22,9.9,13,13.22,12.7,10.36,11.5,11.51
Home Affordable Refinance Program (HARP),The Home Affordable Refinance Program (HARP) was a program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the oan.,investopedia,1,47.46,14.6,0,12.49,18.7,11.64,21,19.05
Home Banking,"Home banking is the practice of conducting banking transactions from home rather than at branch locations. Home banking generally refers to mobile banking, web banking, banking over the telephone, or banking by mail. The first experiments with online banking started in the early 1980s. However, it did not become popular until the rise of the Internet in the mid-1990s. Many Internet banks maintain few, if any, physical branches.",investopedia,1,57.67,8.6,11.2,12.17,10.6,8.96,7.8,10.15
Home Bias,"Home bias is the tendency for investors to invest the majority of their portfolio in domestic equities, ignoring the benefits of diversifying into foreign equities. This bias was originally believed to have arisen as a result of the extra difficulties associated with investing in foreign equities, such as legal restrictions and additional transaction costs. Other investors may simply exhibit home bias due to a preference for investing in what they are already familiar with rather than moving into the unknown.",investopedia,1,13.96,21.3,0,14.69,24.4,11.15,20.33333333,25
Home Buyers' Plan (HBP),"The Home Buyers’ Plan (HBP) is a Canadian program that allows individuals with registered retirement savings plans (RRSPs) to use up to CAD $35,000 of retirement plan holdings as a loan for a home purchase.",investopedia,1,44.41,15.8,0,10.63,19.2,12.14,23.5,19.71
Home Country Bias,"Home country bias refers to investors' tendency to favor companies from their own country over those from other countries or regions. The tendency to invest in our own backyard is not unusual or surprising; it is a worldwide phenomenon, and certainly not unique to U.S. investors. This bias is also understandable because we are inclined to recognize and value domestic brands.",investopedia,1,50.87,11.2,13.6,12.13,13.2,10.34,13.5,13.37
Home Equity,"Home equity is the value of a homeowner’s interest in their home. In other words, it is the real property’s current market value (less any liens that are attached to that property). The amount of equity in a house—or its value—fluctuates over time as more payments are made on the mortgage and market forces impact the current value of the property.",investopedia,1,57.44,12.8,0,10.8,16.6,8.77,12.83333333,16.13
Home Equity Conversion Mortgage (HECM),A home equity conversion mortgage (HECM) is a type of reverse mortgage that is insured by the Federal Housing Administration (FHA) Home equity conversion mortgages allow seniors to convert the equity in their home into cash.,investopedia,1,26.48,18.5,0,12.95,21.3,11.56,25,18.84
Home-Equity Loan,"A home equity loan—also known as an equity loan, home equity installment loan, or second mortgage—is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their home. The loan amount is based on the difference between the home’s current market value and the homeowner’s mortgage balance due. Home equity loans tend to be fixed-rate, while the typical alternative, home equity lines of credit (HELOCs), generally have variable rates.",investopedia,1,46.1,13,15.5,12.89,16.1,9.72,12.875,13.73
Home Inspection,"A home inspection observes and reports on the condition of a real estate property, usually when it is on the market to be sold.",investopedia,1,55.58,11.5,0,7.67,11,9.43,16,16.27
Home Market Effect,"The home market effect was originally hypothesized by Staffan Linder in 1961 and formalized by Paul Krugman in 1980. The central tenet of the hypothesis is that countries with larger sales of some products at home will tend to have larger sales of those same products abroad. It is part of New Trade Theory, which is predicated on economies of scale and network effects, rather than more traditional trade models based on comparative advantage.",investopedia,1,54.86,11.7,13,11.73,14.5,11.26,15.33333333,14.74
Home Modification,"A home modification is any alteration made to a home to meet the needs of people who have different physical abilities, often to specifications outlined by the Americans With Disabilities Act (ADA). These alternations are made so that disabled or differently-abled people can live independently and safely.",investopedia,1,30.7,14.8,0,14.34,16.4,10.18,17.25,17.91
Home Mortgage,"A home mortgage is a loan given by a bank, mortgage company or other financial institution for the purchase of a residence—either a primary residence, a secondary residence, or an investment residence—in contrast to a piece of commercial or industrial property. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that the title will be transferred back to the owner once the final loan payment has been made and other terms of the mortgage have been met.",investopedia,1,26.82,20.5,0,11.27,23.5,9.23,29.5,22.15
Home Mortgage Disclosure Act (HMDA),"The Home Mortgage Disclosure Act (HMDA) is a federal law approved in 1975 that requires mortgage lenders to keep records of key pieces of information regarding their lending practices, which they must submit to regulatory authorities. It was implemented by the Federal Reserve through Regulation C. In 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB).",investopedia,1,33.24,13.8,15,14.56,15.7,11.95,14.83333333,15.38
Home Mortgage Interest Deduction,"The mortgage interest deduction is a common itemized deduction that allows homeowners to deduct the interest they pay on any loan used to build, purchase, or make improvements upon their residence, from taxable income. The mortgage interest deduction can also be taken on loans for second homes and vacation residences with certain limitations.",investopedia,1,36.12,14.8,0,14.45,17.8,10.02,19.25,16.64
Home Office,"A home office is a space designated in a person's residence for official business purposes. The term can also be used to describe the administrative corporate headquarters of a large enterprise, such as the home office of a large corporation located in a particular city.",investopedia,1,40.18,13.2,0,11.9,13.7,8.96,16.75,18.78
Home Office Expense,Home office expenses are expenses incurred from the operation of a business or the performance of employment-related activities within a primary residence.,investopedia,1,6.84,17.8,0,17.81,18.5,11.9,19,23.35
Home Warranty,A home warranty is a residential service contract that covers the cost of maintaining household systems or appliances for a set period. A home warranty is different from homeowners' insurance.,investopedia,1,24.11,17.4,0,14.46,19.3,10.91,12,21.33
Homemade Dividends,Homemade dividends are a form of investment income generated from the sale of a portion of an individual's investment portfolio. These assets differ from the traditional dividends that a company’s board of directors distributes to certain classes of shareholders.,investopedia,1,26.3,14.4,0,15.72,15.5,10.68,15.75,18.06
Homemade Leverage,"Homemade leverage is used by an individual investor to artificially adjust the leverage of a company. An individual investing in a company with no leverage can recreate the effect of leverage using homemade leverage, which includes taking out personal loans on the investment. However, differences in the tax rate between the corporation and the individual will likely disrupt the ability of the investor to construct the leveraging scenario accurately.",investopedia,1,22.75,15.8,15.9,14.97,16.4,9.81,16.5,15
Homeowners Association (HOA),"A homeowner's association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. Those who purchase property within an HOA's jurisdiction automatically become members and are required to pay dues, known as HOA fees. Some associations can be very restrictive about what members can do with their properties.",investopedia,1,23.6,17.5,0,15.33,20.6,11.62,14.83333333,20.72
Homeowners Association Fee (HOA Fee),"A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association. HOA fees are almost always levied on condominium owners, but they may also apply in some neighborhoods of single-family homes.",investopedia,1,33.07,16,0,13.01,18,10.45,20.25,17.22
Homeowners Insurance,"Homeowners insurance is a form of property insurance that covers losses and damages to an individual's residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.",investopedia,1,25.29,14.8,0,14.68,15.2,10.05,16.75,16.98
Homeowners Protection Act,"The Homeowners Protection Act of 1998 is a law designed to reduce the unnecessary payment of private mortgage insurance (PMI) by homeowners who may no longer be required to pay it. The Homeowners Protection Act covers all private, residential mortgages purchased after July 29, 1999. The act, also known as the PMI Cancellation Act, mandates that lenders disclose certain information about PMI.",investopedia,1,50.46,11.4,13.6,13.11,14.3,10.52,13.66666667,12.8
Homestead Exemption,"The homestead exemption is a legal provision that helps shield a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. The homestead tax exemption can also provide surviving spouses with ongoing property tax relief, which is done on a graduated scale so that homes with lower assessed values benefit the most.",investopedia,1,42.04,14.6,0,13.12,17.6,11.61,21,19.19
Homo Economicus,"Homo economicus is a theoretical abstraction that some economists use to describe a rational human being. In certain neoclassical economic theories, people are portrayed this way: as ideal decision-makers with complete rationality, perfect access to information, and consistent, self-interested goals.",investopedia,1,-19.89,26,0,20.14,29.6,13.52,16.5,28
Homogeneous Expectations,"Homogeneous expectations is an assumption, expressed in Harry Markowitz's Modern Portfolio Theory (MPT), that all investors have the same expectations and make the same choices in a given situation.",investopedia,1,16.66,18.1,0,16.14,20.7,12.15,21.5,19.88
Homoskedastic,"Homoskedastic (also spelled ""homoscedastic"") refers to a condition in which the variance of the residual, or error term, in a regression model is constant. That is, the error term does not vary much as the value of the predictor variable changes. Another way of saying this is that the variance of the data points are roughly the same for all data points. This suggests a level of consistency and makes it easier to model and work with the data through regression. However, the lack of homoskedasticity may suggest that the regression model may need to include additional predictor variables to explain the performance of the dependent variable.",investopedia,1,49.75,11.6,13.7,11.26,13,9.27,13,13.05
Hong Kong Exchanges and Clearing Limited (HKEx),"Hong Kong Exchanges and Clearing Limited (HKEx) is a publicly-traded holding company that is one of the largest market operators in the world. Its subsidiaries include the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. HKEx also manages four clearing houses in Hong Kong and the London Metal Exchange (LME), making it an important institution in the global financial markets.",investopedia,1,50.16,11.5,11.9,12.3,13.8,10.19,12.83333333,10.94
Hong Kong Interbank Offered Rate (HIBOR),"The Hong Kong Interbank Offered Rate, known by its abbreviation HIBOR, is the benchmark interest rate, stated in Hong Kong dollars, for lending between banks within the Hong Kong market. The HIBOR is a reference rate for lenders and borrowers that participate directly or indirectly in the Asian economy. As of December 2020, plans were in place to transition away from HIBOR to the Hong Kong Overnight Index Average (HONIA).",investopedia,1,47.83,12.4,15,11.84,14.3,10.88,16,15.61
Hong Kong Monetary Authority (HKMA),"Established in 1993, the Hong Kong Monetary Authority (HKMA) acts to control inflation and maintain the stability of the Hong Kong dollar (HKD) and of the banking sector through its monetary policy. The HKMA links the HKD to the U.S. dollar to help the HKD maintain a stable value.",investopedia,1,30.2,21.2,0,10.93,26.1,11.87,31.5,24.5
Hong Kong Monetary Authority Investment Portfolio (HKMA),The Hong Kong Monetary Authority Investment Portfolio is an investment portfolio run by the Hong Kong Monetary Authority. The authority is the sovereign wealth fund of the government of the Hong Kong Special Administrative Region.,investopedia,1,28.33,13.7,0,14.56,13.7,9.47,14.75,13.86
"Hong Kong SAR, China","Hong Kong is the premier financial and business center in China and a regional financial leader. Hong Kong is one of China's special administrative regions (SARs). An SAR is a relatively autonomous regions within the People's Republic of China that maintain separate legal, administrative, and judicial systems from the rest of the country.",investopedia,1,36.59,12.6,13.6,12.93,13,10.47,12.16666667,12.36
Hong Kong Stock Exchange (HKG) .HK,"The Hong Kong Stock Exchange (HKG) .HK is a member of the HKEX Group and the leading venue for capital raising activity for Hong Kong and Mainland Chinese issuers. One of the world's largest securities markets by market capitalization, the Hong Kong Stock Exchange traces its origins to the founding of China's first formal securities market, the Association of Stockbrokers in Hong Kong, in 1891. A second market opened in 1921, and in 1947 the two merged to form the Hong Kong Stock Exchange. The exchange introduced automated ordering in 1993 and stock option trading in 1995.  It merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company in 2000 to form Hong Kong Exchanges and Clearing Ltd., a publicly-traded company. Due to the dominance of electronic trading, the stock exchange closed down its physical trading floor in 2017.",investopedia,1,31.22,20.8,16.7,12.32,26.5,11.28,20,22.26
Honorarium,"An honorarium is a voluntary payment that is given to a person for services for which fees are not legally or traditionally required. Honoraria are typically used to help cover costs for volunteers or guest speakers and may be considered taxable income. For example, when a guest makes a speech at a conference, they might receive an honorarium to cover travel expenses.",investopedia,1,42,12.5,14.1,11.14,12.4,9.5,14,14.73
Hook Reversal,Hook reversals are short-term candlestick patterns that predict a reversal in the trend's direction. The pattern occurs when a candlestick has a higher low and a lower high than the previous session's candlestick. This pattern differs from engulfing patterns in that the size difference between the first and second bar's body can be relatively small.,investopedia,1,52.9,10.4,13.6,13.81,13.6,8.85,12.5,10.96
Hope Credit,"The Hope Credit, or the Hope Scholarship Tax Credit, is a nonrefundable education tax credit offered to eligible American taxpayers. In particular, qualifying students who have yet to complete four years of postsecondary education can claim this tax credit.",investopedia,1,34.76,13.3,0,14.56,14.8,10.27,14.75,16.01
Hope Now Alliance,"The term Hope Now Alliance refers to a public-private initiative that worked to combat home foreclosures that emerged from the subprime mortgage market meltdown. The initiative was launched in 2007 and was comprised of members from the U.S. government, the secondary mortgage market, lenders, mortgage-backed securities (MBS) investors, and homeownership counseling organizations. The group focused its efforts on reversing the foreclosure trend focused on contacting homeowners for loan modifications and workouts. The organization suspended operations in 2020 because of the global COVID-19 pandemic.",investopedia,1,33.44,13.8,15.6,17.98,18.5,12.85,15.125,15.55
Horizon Analysis,"Horizon analysis compares the projected discounted returns of a security or investment portfolio’s total returns over several time frames, often referred to as the investment horizon.",investopedia,1,11.25,18.2,0,17.82,20.2,12.21,21,19.63
Horizontal Acquisition,A horizontal acquisition is when one company acquires another company in the same industry and works at the same production stage. The new combined entity may be in a better competitive position due to increased market share or scalability than the standalone companies combined to form it.,investopedia,1,30.7,14.8,0,12.89,14.8,9.51,17.75,17.06
Horizontal Analysis,"Horizontal analysis is used in financial statement analysis to compare historical data, such as ratios, or line items, over a number of accounting periods. Horizontal analysis can either use absolute comparisons or percentage comparisons, where the numbers in each succeeding period are expressed as a percentage of the amount in the baseline year, with the baseline amount being listed as 100%. This is also known as base-year analysis.",investopedia,1,39.97,13.3,16.7,13.7,15.5,9.41,17,15.55
Horizontal Channel,Horizontal channels are trendlines that connect variable pivot highs and lows to show the price contained between the upper line of resistance and lower line of support. A horizontal channel is also known as a price range or sideways trend.,investopedia,1,59.64,9.9,0,12.3,12.8,10.16,11.5,10
Horizontal Equity,Horizontal equity is an economic theory that states that individuals with similar income and assets should pay the same amount in taxes. Horizontal equity should apply to individuals considered equal regardless of the tax system in place. The more neutral a tax system is the more horizontally equitable it is considered to be.,investopedia,1,36.59,12.6,15.5,12.18,11.8,8.98,13.5,14.63
Horizontal Integration,"Horizontal integration is the acquisition of a business operating at the same level of the value chain in the same industry. This is in contrast to vertical integration, where firms expand into upstream or downstream activities, which are at different stages of production.",investopedia,1,32.73,14,0,13.34,14.6,9.84,15.75,16.04
Horizontal Line,"In technical analysis, a horizontal line is often drawn on a price chart to highlight areas of support or resistance.",investopedia,1,42.72,12.3,0,10.56,11.6,10.94,14,16
Horizontal Market,"A horizontal market is diversified so that the products created are able to meet the needs of more than one industry. A horizontal market is one in which the output good or service is widely used and in wide demand, and so the producers bear little risk in demand for their output. Producers do, however, typically face a great amount of competition within the industry.",investopedia,1,49.45,11.8,14.1,9.52,11.6,8.11,14.5,12.99
Horizontal Merger,"A horizontal merger is a merger or business consolidation that occurs between firms that operate in the same industry. Competition tends to be higher among companies operating in the same space, meaning synergies and potential gains in market share are much greater for merging firms.",investopedia,1,40.18,13.2,0,13.7,15.1,11.07,15.75,17
Horizontal Spread,"A horizontal spread (more commonly known as a calendar spread) is an options or futures strategy created with simultaneous long and short positions in the derivative on the same underlying asset and the same strike price, but with different expiration months. The goal is usually to profit from changes in volatility over time or exploit fluctuation in pricing from short-term events. The spread can also be used as a method for creating significant leverage with limited risk.",investopedia,1,36.93,14.5,16.7,12.71,15.9,10.65,18.5,18.07
Horizontal Well,A horizontal well is a type of directional drilling technique where an oil or gas well is dug at an angle of at least eighty degrees to a vertical wellbore. This technique has become increasingly common and productive in recent years. Operators use it to retrieve oil and natural gas in situations in which the shape of the reservoir is abnormal or difficult to access.,investopedia,1,49.45,11.8,13.6,9.75,11.6,10.06,14.16666667,14.83
Hospital Insurance Trust Fund,"The Federal Hospital Insurance Trust Fund is also known as Part A of Medicare, the health insurance program for people aged 65 and older in the United States. The program is financed through payroll taxes derived from current workers and employers as well as taxes on Social Security benefits. This trust fund is overseen by a board of trustees that report yearly to Congress regarding its financial status. Due to changes in legislation and demographics in the United States, the fund is projected to be depleted in 2026.",investopedia,1,26.82,20.5,0,12.49,24.4,11.2,28.5,22.6
Hospital Revenue,A hospital revenue bond is a type of municipal bond that finances the construction of new facilities or upgrades for existing hospitals and is secured by the revenues that hospitals receive in the course of their normal operations.,investopedia,1,24.45,19.3,0,12.78,21.6,11.34,27,21.52
Hostile Bid,"A hostile bid is a specific type of takeover bid that bidders present directly to the target firm's shareholders because the management is not in favor of the deal. Bidders generally present their hostile bids through a tender offer. In this scenario, the acquiring company offers to purchase the common shares of the target at a substantial premium.",investopedia,1,51.89,10.8,13,11.55,12,10.31,12.66666667,13.24
Hostile Takeover,A hostile takeover is the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished by going directly to the company's shareholders or fighting to replace management to get the acquisition approved. A hostile takeover can be accomplished through either a tender offer or a proxy fight.,investopedia,1,36.12,14.8,0,13.35,17.1,9.72,19.25,15.88
Hostile Takeover Bid,"A hostile takeover bid is an attempt to buy a controlling interest in a publicly-traded company without the consent or cooperation of the target company's board of directors. If the board rejects an offer from a potential buyer, there are three possible courses of action for the would-be acquirer: make a tender offer, initiate a proxy fight, or buy up company stock in the open market.",investopedia,1,37.98,16.2,0,10.92,18.1,10.3,22.5,18.05
Hot Hand,"The ""hot hand"" is the notion that because one has had a string of successes, an individual or entity is more likely to have continued success. For example, if one flipped a (fair) coin and guessed correctly that it would land on heads three times in a row, it might be said that they have a ""hot hand."" Under such circumstances, a person believes that their odds of guessing which side the coin will land on next are greater than the 50% they actually are. When there is a series of failures, the same concept works as the ""cold hand.""",investopedia,1,71.48,9.5,11.2,7.26,11.6,8.51,14.5,13.2
Hot Issue,"In finance, the term “hot issue” is used to describe an upcoming initial public offering (IPO) that is particularly popular among the investing public.",investopedia,1,30.2,15,0,13,15.7,10.75,17,17.93
Hot IPO,"The term hot IPO refers to an initial public offering with significant demand. These IPOs are popular, drawing a tremendous amount of interest from investors and the media even before they hit the market. This hype and attention generally lead to a significant rise in share prices after the company goes public. Hot IPOs may be risky, especially when it comes to investing in companies that don't have a proven track record of success.",investopedia,1,61.16,9.3,12.6,10.62,10.9,9.25,12,11.72
Hot Money,"Hot money signifies currency that quickly and regularly moves between financial markets, that ensures investors lock in the highest available short-term interest rates. Hot money continuously shifts from countries with low-interest rates to those with higher rates.",investopedia,1,35.78,12.9,0,17.81,17,11.38,12.75,13.89
Hot Waitress Economic Index,The hot waitress economic index is an offensive and dubious economic indicator that counts the number of attractive people working as servers.,investopedia,1,32.22,14.2,0,14.33,15.5,11.9,17,17.89
Hot Wallet,"A hot wallet is a tool that allows a cryptocurrency owner to receive and send tokens. Unlike traditional currencies, there are no dedicated banks or physical wallets that can be used to keep cryptocurrency holdings secure. Cryptocurrency wallets are tools that are commonly used to store and protect these holdings, and they come in many different forms and varieties.",investopedia,1,51.48,11,13.6,12.71,13.1,9.16,13.16666667,12.63
Hotelling's Theory,"Hotelling's theory, or Hotelling's rule, posits that owners of nonrenewable resources will only produce basic commodities if doing so can yield more than could be earned from available financial instruments, such as U.S. Treasury or other similar interest-bearing securities. The theory assumes that markets are efficient and that the owners of the nonrenewable resources are motivated only by profit.",investopedia,1,34.56,13.3,14.6,15.43,15.8,11.84,13.83333333,14.66
House Call,A house call is a demand by a brokerage firm that an account holder deposit enough cash to cover a shortfall in the amount of money deposited in a margin account. This typically follows losses in the investments bought on margin.,investopedia,1,59.13,10.1,0,9.17,10.5,8.5,12.25,12.1
House Maintenance Requirement,A house maintenance requirement is the level of minimum margin account equity that is required by a brokerage firm. House maintenance requirement levels are based on the standards set out in Regulation T of the Federal Reserve.,investopedia,1,44.24,11.7,0,12.36,12.1,10.96,13.75,14.97
House Money Effect,"The house money effect is a theory used to explain the tendency of investors to take on greater risk when reinvesting profit earned through investing than they would when investing their savings or wages. People will often think about investment income as separate from money they earned in other ways, which distorts their mental accounting.",investopedia,1,52.02,12.8,0,13.06,17,9.59,17.75,15.36
House Poor,"House poor is a term used to describe a person who spends a large proportion of his or her total income on home ownership, including mortgage payments, property taxes, maintenance, and utilities. Individuals in this situation are short of cash for discretionary items and tend to have trouble meeting other financial obligations, such as vehicle payments.",investopedia,1,34.6,15.4,0,13.76,18.1,10.38,20,19.77
House Price Index (HPI),"The House Price Index (HPI) is a broad measure of the movement of single-family property prices in the United States. Aside from serving as an indicator of house price trends, it also functions as an analytical tool for estimating changes in the rates of mortgage defaults, prepayments, and housing affordability.",investopedia,1,46.1,13,0,12.71,15.9,10.56,16,14.8
Household Employee,"A household employee is an individual who is paid to provide a service within their employer's residence. Employers choose what kinds of work a household employee is responsible for and the manner in which that work is expected to be completed. Some examples of household employees (or household workers) include babysitters, nannies, and gardeners. Independent contractors such as repairmen, carpenters, and plumbers are not considered household employees.",investopedia,1,37.5,12.2,15.2,15.31,14.5,10.6,12.875,16.27
Household Expenses,"Household expenses represent a per-person breakdown of general living expenses. They include the amount paid for lodging, food consumed within the home, utilities paid, and other costs. The sum of all the expenses is then divided by the number of family members residing in the house in order to find each member's share of the total expense.",investopedia,1,52.19,10.7,13.6,11.02,11.7,9.29,12.83333333,11.11
Household Income,"Household income is generally defined as the combined gross income of all members of a household above a specified age. For some usages of the term, individuals do not have to be related in any way to be considered members of the same household. Household income is an important risk measure used by lenders for underwriting loans and is a useful economic indicator of an area's standard of living.",investopedia,1,48.13,12.3,13,10.33,12.6,9.13,14.5,13.84
Housing and Economic Recovery Act (HERA),"The Housing and Economic Recovery Act (HERA) was drafted to address the fallout from the subprime mortgage crisis of 2008. The Housing and Economic Recovery Act allowed the Federal Housing Administration (FHA) to guarantee up to $300 billion in new, 30-year fixed-rate mortgages for subprime borrowers. In order to participate, lenders were required to write down the balances on principal loans up to 90% of their current appraised value.",investopedia,1,48.13,12.3,13.6,13.35,15.6,11.64,14.83333333,13.84
Housing Authority Bond,"Housing authority bonds, or housing bonds, are issued by a state or local government agency to help finance the construction or rehabilitation of affordable rental housing. Under certain programs, the proceeds from such bonds also may be used to help low-income people purchase homes. The interest earned by investors on housing authority bonds is exempt from federal taxes, and may also be exempt from state and local income taxes.",investopedia,1,39.67,13.4,13,12.94,14.9,9.58,14.5,12.68
Housing Bonds,"Housing bonds are debt securities, a variation of municipal revenue bonds, issued by state or local governments to raise money for affordable housing development projects.",investopedia,1,29.18,15.4,0,16.42,18.8,13.09,18.5,19.6
Housing Bubble,"A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes a relatively extended period to replenish and increase. Speculators pour money into the market, further driving up demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices—and the bubble bursts.",investopedia,1,41.9,12.6,13,11.84,13.4,9.61,13.375,14.1
Housing Expense Ratio,A housing expense ratio is a ratio comparing housing expenses to pre-tax income. Lenders often use it in qualifying borrowers for loans. A housing expense ratio may also be referred to as a front-end ratio.,investopedia,1,51.14,9,9.7,9.2,7.5,9.18,6.166666667,9.25
Housing Market Index,"The NAHB/Wells Fargo Housing Market Index (HMI) is based on a monthly survey of members belonging to the National Association of Home Builders (NAHB). The index is designed to measure sentiment for the U.S. single-family housing market and is a widely watched gauge of the outlook for the U.S. housing sector. Since housing is a large investment, housing market indices help to monitor the overall health of the economy.",investopedia,1,48.13,12.3,12.5,11.44,14.1,11.18,14.16666667,13.26
Housing Starts,"The term housing starts refers to the number of new residential construction projects that begin during any particular month. As such, it is a key economic indicator. Housing start statistics are released on or around the 17th of each month by the U.S. Commerce Department.",investopedia,1,64.71,8,11.9,10.9,10,9.99,8.833333333,12.22
Housing Unit,"A housing unit is a single unit within a larger structure that can be used by an individual or household to eat, sleep, and live. The unit can be in any type of residence, such as a house, apartment, or mobile home, and may also be a single unit in a group of rooms.",investopedia,1,69.45,10.3,0,5.06,10.6,8.19,14.5,12.28
Howey Test,"The Howey Test refers to the U.S. Supreme Court case for determining whether a transaction qualifies as an ""investment contract,"" and therefore would be considered a security and subject to disclosure and registration requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.",investopedia,1,39.16,13.6,0,14.1,16.2,11.52,17.25,17.91
HSA Custodian,"An HSA custodian is any bank, credit union, insurance company, brokerage, or other Internal Revenue Service (IRS)-approved financial institution that offers health savings accounts (HSAs). Financial institutions that manage HSAs are also called HSA administrators. An HSA custodian or administrator holds HSA assets in a secure HSA account. In some instances, the account holder may direct how to invest the funds and may withdraw them for qualified medical expenses.",investopedia,1,31.21,14.6,16.3,15.44,17.4,11.64,12.625,16.16
Hub and Spoke Structure,"A hub and spoke structure is an investment structure used by an investment company in which several investment vehicles, each remaining individually managed, pool their assets together, contributing to one central investment vehicle. This can also be called a master-feeder structure.",investopedia,1,25.29,14.8,0,16.65,17.1,9.66,16.75,14.05
Hubbert Curve,"The Hubbert curve is a method for predicting the likely production rate of any finite resource over time. When plotted on a chart, the result resembles a symmetrical bell-shaped curve.",investopedia,1,64.71,8,0,11.3,10.4,10.17,8.5,11.33
Hubbert's Peak Theory,"Hubbert’s peak theory is the idea that, because oil production is a non-renewable resource, global crude oil production will eventually peak and then go into terminal decline following a roughly bell-shaped curve. Although this model can be applied to many resources, it was developed specifically as a model for oil production.",investopedia,1,37.13,14.4,0,13.81,17,10.78,17.75,15.69
Hubris,"Hubris is the characteristic of excessive confidence or arrogance, which leads a person to believe that they may do no wrong. The overwhelming pride caused by hubris is often considered a flaw in character.",investopedia,1,54.22,9.9,0,11.42,11,10.05,12,15.04
HUD-1 Form,"A HUD-1 form, also called a HUD-1 Settlement Statement, is a standardized mortgage lending document. Creditors or their closing agents use this form to create an itemized list of all charges and credits to the buyer and to the seller in a consumer credit mortgage transaction. A HUD-1 form is most commonly used for reverse mortgages and mortgage refinance transactions.",investopedia,1,59.64,9.9,12.5,12.01,13,11.21,12.66666667,12.67
HUF (Hungarian Forint),"The term Hungarian Forint (HUF) refers to the official and national currency of Hungary. The name was first used between 1868 and 1892 but modern forint was introduced in 1946. The currency is issued and maintained by the country's central bank, the Hungarian National Bank. Banknotes are issued in denominations ranging from 500 to 10,000 forints while coins are minted between 5 and 200 forints. The forint is divided into 100 fillér, but these coins are no longer in circulation due to high inflation.",investopedia,1,37.31,18.5,0,12.84,23.9,12.11,27,21.09
Hulbert Rating,"A Hulbert rating is a score that tracks the performance of an investment newsletter over time. Investment newsletters are paid subscriptions that can offer investors a variety of market-related information, such as trading strategies, stock recommendations, and economic commentary. Some newsletters focus on specific industries or types of trading, such as options trading, investing in utilities, precious metals investing, or cryptocurrency investing. Hulbert Ratings, LLC assigns Hulbert ratings and encourages investors to judge a newsletter by its long-term performance adjusted for risk.",investopedia,1,25.29,14.8,17.1,18.04,18.3,11.01,16.25,16.98
Hull-White Model,"The Hull-White model is a single-factor interest model used to price interest rate derivatives. The Hull-White model assumes that short rates have a normal distribution and that the short rates are subject to mean reversion. Volatility is thus likely to be low when short rates are near zero, which is reflected in a larger mean reversion in the model.",investopedia,1,51.48,11,13,10.91,11.9,8.63,12.83333333,11.95
Human Capital,"Human capital is an intangible asset or quality not listed on a company's balance sheet. It can be classified as the economic value of a worker's experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.",investopedia,1,29.86,13.1,14.6,13.11,12.5,11.34,12,15.57
Human Development Index (HDI),"The Human Development Index (HDI) is a statistic developed and compiled by the United Nations to measure and various countries' levels of social and economic development. It is composed of four principal areas of interest: mean years of schooling expected years of schooling, life expectancy at birth, and gross national income per capita. This index is a tool used to follow changes in development levels over time and to compare the development levels of different countries.",investopedia,1,37.34,14.3,15,13.18,16.3,10.5,17,14.86
Human-Life Approach,The human-life approach is a method of calculating the amount of life insurance a family would need based on the financial loss they would incur if the insured person in the family were to pass away today.,investopedia,1,42.38,16.5,0,9.47,18.6,9.31,24.5,18.04
Human Resource Planning (HRP),Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.,investopedia,1,25.8,14.6,0,18.1,17.9,12.52,14.5,16
Human Resources (HR),"Human resources (HR) is the division of a business that is charged with finding, screening, recruiting, and training job applicants, as well as administering employee-benefit programs. HR plays a key role in helping companies deal with a fast-changing business environment and a greater demand for quality employees in the 21st century.",investopedia,1,37.13,14.4,0,14.39,17.7,12.95,17.75,18.83
Humped Yield Curve,"A humped yield curve is a relatively rare type of yield curve that results when the interest rates on medium-term fixed income securities are higher than the rates of both long and short-term instruments. Also, if short-term interest rates are expected to rise and then fall, then a humped yield curve will ensue. Humped yield curves are also known as bell-shaped curves.",investopedia,1,67.38,9,11.2,10.85,12.5,8.99,12.33333333,11.51
Hundredweight (Cwt),A hundredweight (CWT) is a unit of measurement used to define the quantities of certain commodities being bought and sold. It is used in some commodities trading contracts. Pricing by hundredweight also is a standard option for shipping packages that take up less than an entire truckload.,investopedia,1,64,8.2,11.2,11.77,10.8,9.79,8.833333333,9.68
Hung Convertibles,"Hung convertibles are convertible securities where the share price of the underlying is well below the conversion price, making it unlikely that the securities will be converted into common stock.",investopedia,1,24.11,17.4,0,15.21,19.8,9.34,23,21.33
Hurdle Rate,"A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. It allows companies to make important decisions on whether or not to pursue a specific project. The hurdle rate describes the appropriate compensation for the level of risk present—riskier projects generally have higher hurdle rates than those with less risk. In order to determine the rate, the following are some of the areas that must be taken into consideration: associated risks, cost of capital, and the returns of other possible investments or projects.",investopedia,1,47.83,12.4,15.2,12.13,14.3,9.55,16.125,14.48
Hurricane Deductible,"Actually, hurricane insurance doesn't exist as a specific, separate type of policy. The term usually refers to what is, strictly speaking, a hurricane deductible on a homeowners insurance policy: an extra amount a homeowner must pay before the insurer will cover the damage or destruction caused by a hurricane. A percentage of the property's worth, this deductible is common in 19 hurricane-prone states and Washington D.C.",investopedia,1,32.22,14.2,17.5,13.11,15.2,10.71,17.33333333,16.68
Hybrid Annuity,"A hybrid annuity is a retirement income investment that allows investors to split their funds between fixed-rate and variable-rate components. Investors can divide their savings between conservative assets that offer a low but guaranteed rate of return and riskier assets that offer the potential for higher returns. As in any annuity, the goal is to create a steady stream of income during retirement.",investopedia,1,41.7,12.7,13.6,13.46,14.5,9.69,13.83333333,12.84
Hybrid ARM,"A hybrid adjustable-rate mortgage, or hybrid ARM (also known as a ""fixed-period ARM""), blends characteristics of a fixed-rate mortgage with an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. The date at which the mortgage changes from the fixed rate to the adjustable rate is referred to as the reset date.",investopedia,1,59.13,10.1,11.7,11.31,12.9,8.7,12.5,9.66
Hybrid Fund,A hybrid fund is an investment fund that is characterized by diversification among two or more asset classes. These funds typically invest in a mix of stocks and bonds. They may also be known as asset allocation funds.,investopedia,1,58.58,8.2,10.5,8.98,7.3,9.67,7,10.34
Hybrid Security,"A hybrid security is a single financial security that combines two or more different financial instruments. Hybrid securities, often referred to as ""hybrids,"" generally combine both debt and equity characteristics. The most common type of hybrid security is a convertible bond that has features of an ordinary bond but is heavily influenced by the price movements of the stock into which it is convertible.",investopedia,1,32.94,14,16.3,13.17,14.5,10.12,16,15.4
Hydraulic Fracturing,"Hydraulic fracturing is a process which injects high-pressure liquid into an oil- or gas-bearing rock formation to create fractures. This pressure typically yields improved flows, making it useful for oil and gas firms seeking more economical production in areas that would otherwise produce low-flow wells.",investopedia,1,40.18,13.2,0,16.13,17.5,12.12,15.25,13.44
Hydrocarbon,"A hydrocarbon is an organic chemical compound composed exclusively of hydrogen and carbon atoms. Hydrocarbons are naturally-occurring compounds and form the basis of crude oil, natural gas, coal, and other important energy sources.",investopedia,1,20.89,14.4,0,16.35,15.2,13.07,13.25,18.72
Hyperdeflation,"Hyperdeflation is an extremely large and relatively quick level of deflation in an economy. Hyperdeflation occurs when the purchasing power of currency rises drastically in a relatively short period of time. This increase results in debts being more pronounced, as the real value of goods and services increases and the value of the currency falls.",investopedia,1,35.98,12.8,15,13.29,12.9,9.71,13.5,14.59
Hyperledger,"Hyperledger is a global enterprise blockchain project that offers the necessary framework, standards, guidelines, and tools to build open source blockchains and related applications for use across various industries. Hyperledger's projects include a variety of enterprise-ready permissioned blockchain platforms, where network participants are known to one another and therefore have an intrinsic interest in participating in the consensus-making process.",investopedia,1,24.61,17.2,0,21.48,25,13.4,23.25,21.97
Hyperledger Burrow,"Hyperledger Burrow is a framework for executing smart contracts in permissioned blockchains. It is currently being incubated as part of Hyperledger, a community of open-source projects and tools for commercial implementations of blockchain technology. The goal of Hyperledger Burrow is to facilitate cross-industry applications for smart contracts.",investopedia,1,30.16,13,15.5,18.96,16.7,11.13,12.5,16.49
Hyperledger Composer,"Hyperledger Composer is a set of open source tools that allows business owners, operators, and developers a way to create blockchain applications and smart contracts aimed at solving business problems and/or improving operational efficiencies. It is an example of a commercial application of blockchain-as-a-service (BaaS). Hyperledger Composer is one of the several Hyperledger projects hosted by The Linux Foundation in collaboration with corporate members.",investopedia,1,24.48,15.1,17.5,18.04,18.8,11.85,17,17.27
Hyperledger Explorer,"Hyperledger Explorer is an open source blockchain utility module that allows users to create a user-friendly web-based application, with which a user can view, initiate, organize or query various artifacts and developments that form an integral part of the blockchain network. It is to be used specifically on deployments of blockchains created using the Hyperledger umbrella.",investopedia,1,26.14,16.6,0,15.55,19.6,12.07,22,20.49
Hyperledger Fabric,"Hyperledger Fabric is a modular blockchain framework that acts as a foundation for developing blockchain-based products, solutions, and applications using plug-and-play components that are aimed for use within private enterprises.",investopedia,1,15.65,18.5,0,21.01,25.1,14.07,24,22.67
Hyperledger Iroha,"Hyperledger Iroha is a blockchain platform designed to be easily integrable in various business uses that require distributed ledger technology. For example, the platform can be used to help companies and governments with identity management, such as national IDs, and the financial services sector with bank-to-bank transfers.",investopedia,1,22.24,16,0,16.95,18.6,12.53,18.75,20.46
Hyperledger Sawtooth,"Hyperledger Sawtooth is an open source project under the Hyperledger umbrella, and works as an enterprise level blockchain system used for creating and operating distributed ledger applications and networks particularly for use by enterprises.",investopedia,1,11.59,20.1,0,18.81,24.7,12.75,27,23.01
Hypermarket,"A hypermarket is a retail store that combines a department store and a grocery supermarket. Often a very large establishment, hypermarkets offer a wide variety of products such as appliances, clothing, and groceries.",investopedia,1,37.81,12.1,0,13.86,13.1,9.72,11.75,15.08
HyperText Markup Language (HTML),HyperText Markup Language (HTML) is the set of markup symbols or codes inserted into a file intended for display on the Internet. The markup tells web browsers how to display a web page's words and images.,investopedia,1,70.13,8,0,9.16,9.9,10.67,11,11.64
Hypothecation,"Hypothecation occurs when an asset is pledged as collateral to secure a loan. The owner of the asset does not give up title, possession, or ownership rights, such as income generated by the asset. However, the lender can seize the asset if the terms of the agreement are not met.",investopedia,1,62.98,8.6,11.2,8.29,8.6,8.89,10.33333333,10.68
Hypothesis Testing,Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. The methodology employed by the analyst depends on the nature of the data used and the reason for the analysis.,investopedia,1,35.78,12.9,0,12.36,12.1,11.38,14.25,17.13
Hysteresis,"Hysteresis in the field of economics refers to an event in the economy that persists even after the factors that led to that event have been removed or otherwise run their course. Hysteresis often occurs following extreme or prolonged economic events such as an economic crash or recession. After a recession, for example, the unemployment rate may continue to increase despite growth in the economy and the technical end of the recession.",investopedia,1,47.12,12.7,16.3,12.25,14.6,9.43,17.33333333,14.6
Iceberg Order,"Iceberg orders are large single orders that have been divided into smaller limit orders, usually through the use of an automated program, for the purpose of hiding the actual order quantity. The term ""iceberg"" comes from the fact that the visible lots are just the ""tip of the iceberg"" given the greater number of limit orders ready to be placed. They are also sometimes referred to as reserve orders.",investopedia,1,56.59,11.1,11.2,10.51,13,9.13,13.5,12.68
Ichimoku Cloud,"The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.",investopedia,1,59.94,9.8,13,10.73,11.5,9.43,12.83333333,12.63
Ichimoku Kinko Hyo,"The Ichimoku Kinko Hyo, or Ichimoku for short, is a technical indicator that is used to gauge momentum along with future areas of support and resistance. The all-in-one technical indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chikou span.",investopedia,1,64.04,10.3,0,12.13,15.3,11.74,15.5,12.93
ICON Cryptocurrency (ICX),"ICON is a platform that is intended to facilitate the interactions of independent blockchains, also referred to as communities. Within the ICON platform, a community is defined as a network of nodes that follow a single governance system. (A node is a computer that connects to a cryptocurrency network.)",investopedia,1,38.15,14,0,12.6,15.5,10.97,16.75,17.15
Ideation,"Ideation refers to the process of developing and conveying prescriptive ideas to others, typically in a business setting. It describes the sequence of thoughts, from the original concept to implementation. Ideations can spring forth from past or present knowledge, external influences, opinions, convictions, or principles. Ideation can be expressed in graphical, written, or verbal terms.",investopedia,1,49.01,9.9,12.6,16.17,14.1,11.79,8.625,13.52
Identifiable Asset,"An identifiable asset is an asset whose commercial or fair value can be measured at a given point in time, and which is expected to provide a future benefit to the company. These assets are an important consideration in the context of mergers and acquisitions.",investopedia,1,40.18,13.2,0,10.45,12.4,9.31,15.25,14.33
Identity Theft,"Identity theft is the crime of obtaining the personal or financial information of another person to use their identity to commit fraud, such as making unauthorized transactions or purchases. Identity theft is committed in many different ways and its victims are typically left with damage to their credit, finances, and reputation.",investopedia,1,28.67,15.6,0,14.39,17.3,10.78,20.25,18.83
Idiosyncratic Risk,"Idiosyncratic risk is a type of investment risk that is endemic to an individual asset (like a particular company's stock), or a group of assets (like a particular sector's stocks), or in some cases, a very specific asset class (like collateralized mortgage obligations). Idiosyncratic risk is also referred to as a specific risk or unsystematic risk. Therefore, the opposite of idiosyncratic risk is a systematic risk, which is the overall risk that affects all assets, such as fluctuations in the stock market, interest rates, or the entire financial system.",investopedia,1,32.87,16.1,17.5,12.83,18.4,10.43,21.16666667,18.62
Idle Time,"Idle time is paid time that an employee, or machine, is unproductive due to factors that can either be controlled or uncontrolled by management. It normally applies to full-time workers rather than consultants, who typically have to bill for every hour of their time.",investopedia,1,57.61,10.7,0,11.43,13.5,9.03,14.5,15.16
Illiquid,"Illiquid refers to the state of a stock, bond, or other assets that cannot easily and readily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may be hard to sell quickly because there is low trading activity or interest in the issue, indicated by a lack of ready and willing investors or speculators to purchase or sell the asset. As a result, illiquid assets tend to have lower trading volume, wider bid-ask spreads, and greater price volatility.",investopedia,1,51.82,12.9,12.5,10.28,15.1,9.96,16.5,14.94
Immediate Family,"Most of us know how we define ""immediate family"" in our own minds, but our views of the matter may not matter when it comes to its definition in the fine print of legal documents or company policies. In general, a person's immediate family is his or her smallest family unit, including parents, siblings, spouse, and children. It may include relatives through marriage, such as a mother-in-law. But the exact inclusions may differ depending on the law or organization that defines an individual's immediate family.",investopedia,1,41.4,12.8,15.2,10.97,13.1,9.15,15.125,12.76
Immediate Or Cancel Order (IOC),"An immediate or cancel order (IOC) is an order to buy or sell a security that attempts to execute all or part immediately and then cancels any unfilled portion of the order. An IOC order is one of several ""duration,"" or time in force orders, that investors can use to specify how long the order remains active in the market and under what conditions the order is canceled.",investopedia,1,36.97,16.6,0,8.66,16.7,9.73,21,17.72
Immediate Payment Annuity,"An immediate payment annuity is a contract between an individual and an insurance company that pays the owner, or annuitant, a guaranteed income starting almost immediately. It differs from a deferred annuity, which begins payments at a future date chosen by the annuity owner. An immediate payment annuity is also known as a single-premium immediate annuity (SPIA), an income annuity, or simply an immediate annuity.",investopedia,1,15.61,16.5,17.1,13.23,15,9.09,16.83333333,13.6
Immunization,"Immunization, also known as multi-period immunization, is a risk-mitigation strategy that matches the duration of assets and liabilities in order to minimize the impact of interest rates on net worth over time.",investopedia,1,22.08,18.1,0,15.21,21.2,12.13,25,22.8
Impact Investing,Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains. Impact investments may take the form of numerous asset classes and may result in many specific outcomes. The point of impact investing is to use money and investment capital for positive social results.,investopedia,1,27.83,13.9,16.3,14.09,13.6,10.96,14.33333333,16.09
Impaired Asset,"An impaired asset is an asset that has a market value less than the value listed on the company's balance sheet. When an asset is deemed to be impaired, it will need to be written down on the company's balance sheet to its current market value.",investopedia,1,65.05,9.9,0,7.49,10.5,7.18,12.5,10.07
Impaired Credit,"Impaired credit occurs when there has been a deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit score, in the case of an individual, or a reduction in the credit rating assigned to an entity or debt issued by a rating agency or lender. As a result, the borrower whose credit has been impaired will generally have lesser accessibility to credit facilities and will have to pay a higher rate of interest on loans. Impaired credit may either be a temporary situation that can be reversed, or an early sign that the borrower could face potential major financial distress down the road. In either case, impaired credit is not a good omen.",investopedia,1,38.66,13.8,14.3,10.45,13.3,9.17,16.5,14.93
Impairment,"In accounting, impairment describes a permanent reduction in the value of a company's asset, typically a fixed asset or an intangible asset. When testing an asset for impairment, the total profit, cash flow, or other benefit expected to be generated by that specific asset is periodically compared with its current book value. If it is determined that the book value of the asset exceeds the future cash flow or benefit of the asset, the difference between the two is written off and the value of the asset declines on the company's balance sheet.",investopedia,1,31.55,16.6,16.7,10.98,17.1,9.42,21.16666667,17.99
Impeachment,"Impeachment, as authorized by Article II, Section 4 of the U.S. Constitution, is the formal process that allows Congress to bring charges of ""Treason, Bribery, or other high Crimes and Misdemeanors"" against high-ranking civil officers, such as the president.",investopedia,1,51.68,10.9,0,13.63,14.9,13.51,13.75,14.98
Imperfect Competition,"Imperfect competition exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical perfect competition. In this environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit.",investopedia,1,-8.05,25.6,0,18.18,29.9,12.18,17.75,26.89
Imperfect Market,"An imperfect market refers to any economic market that does not meet the rigorous standards of the hypothetical perfectly—or purely—competitive market. Pure or perfect competition is an abstract, theoretical market structure in which a series of criteria are met. Since all real markets exist outside of the spectrum of the perfect competition model, all real markets can be classified as imperfect markets.",investopedia,1,33.54,13.7,14.6,14.74,15.3,10.01,14.33333333,14.73
Implicit Cost,"An implicit cost is any cost that has already occurred but not necessarily shown or reported as a separate expense. It represents an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources. This means when a company allocates its resources, it always forgoes the ability to earn money off the use of the resources elsewhere, so there's no exchange of cash. Put simply, an implicit cost comes from the use of an asset, rather than renting or buying it.",investopedia,1,48.13,12.3,14.2,11.2,13.4,9.07,15.25,13.98
Implied Authority,"Implied authority refers to an agent with the jurisdiction to perform acts that are reasonably necessary to accomplish the purpose of an organization. Under contract law, implied authority figures have the ability to make a legally binding contract on behalf of another person or company.",investopedia,1,31.72,14.4,0,14.1,15.3,10.72,16.25,15.22
Implied Contract,"An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties. The implied contract, on the other hand, is assumed to exist, but no written or verbal confirmation is necessary.",investopedia,1,55.58,11.5,11.9,10.74,13.7,9.87,14.33333333,12.93
Implied Rate,The implied rate is the difference between the spot interest rate and the interest rate for the forward or futures delivery date.,investopedia,1,57.61,10.7,0,10.91,12.7,7.6,15,12.44
Implied Volatility (IV),"Implied volatility is a metric that captures the market's view of the likelihood of changes in a given security's price. Investors can use it to project future moves and supply and demand, and often employ it to price options contracts.",investopedia,1,59.64,9.9,0,10.56,11.8,11.34,11.5,11
Import,"An import is a good or service bought in one country that was produced in another. Imports and exports are the components of international trade. If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade, also known as a trade deficit.",investopedia,1,70.84,7.7,9.7,8.76,9.1,7.83,9,9.23
Import Duty,"Import duty is a tax collected on imports and some exports by a country's customs authorities. A good's value will usually dictate the import duty. Depending on the context, import duty may also be known as a customs duty, tariff, import tax or import tariff.",investopedia,1,56.25,9.1,9.7,8.92,8.7,8.94,7.833333333,9.56
Import Substitution Industrialization,"Import substitution industrialization (ISI) is a theory of economics typically adhered to by developing countries or emerging market nations that seek to decrease their dependence on developed countries. The approach targets the protection and incubation of newly formed domestic industries to fully develop sectors so that the goods produced are competitive with imported goods. Under ISI theory, the process makes local economies, and their nations, self-sufficient.",investopedia,1,23.77,15.4,16.7,17.69,18.6,12.62,16.66666667,18.5
Impression,"An impression is a metric used to quantify the number of digital views or engagements of a piece of content, usually an advertisement, digital post, or a web page. Impressions are also referred to as an ""ad view."" They are used in online advertising, which often pays on a per-impression basis. Counting impressions is essential to how web advertising is accounted and paid for in search engine marketing, as well as measuring the performance of social media campaigns. Impressions are not a measure of whether an advertisement has been clicked on, but how many times it was displayed or had potential ""eyeballs"" on it, which leads to some debate as to how accurate the metric is.",investopedia,1,47.93,12.3,14.8,10.39,13.1,9.55,13.8,14.45
Imprest,"An imprest is a cash account a business relies on to pay for small, routine expenses. Funds contained in imprests are regularly replenished, in order to maintain a fixed balance. The term “imprest” can also refer to a monetary advance given to a person for a specific purpose.",investopedia,1,55.24,9.5,10.5,9.51,9,10.02,8.666666667,10.57
Impulse Wave Pattern,"An impulse wave pattern is a technical trading term that describes a strong move in a financial asset's price coinciding with the main direction of the underlying trend. It is used frequently in discussion of the Elliott Wave theory, a method for analyzing and predicting financial market price movements. Impulse waves can refer to upward movements in uptrends or downward movements in downtrends.",investopedia,1,50.16,11.5,14.1,13.29,14.3,10.69,14.16666667,14.11
Imputed Value,"Imputed value, also known as estimated imputation, is an assumed value given to an item when the actual value is not known or available. Imputed values are a logical or implicit value for an item or time set, wherein a ""true"" value has yet to be ascertained.",investopedia,1,47.62,12.5,0,8.3,11.6,8.83,15.75,15.36
Imputed Interest,"The IRS uses imputed interest to collect tax revenues on loans or securities that pay little or no interest. Imputed interest is important for discount bonds, such as zero-coupon bonds and other securities sold below face value and mature at par. The IRS uses an accretive method when calculating the imputed interest on Treasury bonds and has applicable federal rates that set a minimum interest rate in relation to imputed interest and original issue discount rules.",investopedia,1,28.88,15.5,18.2,12.77,15.7,10.29,19.66666667,15.38
In-App Purchasing,"In-app purchasing refers to the buying of goods and services from inside an application on a mobile device, such as a smartphone or tablet. In-app purchases allow developers to provide their applications for free. The developer then advertises upgrades to the paid version, paid feature unlocks, special items for sale, or even ads other apps and services to anyone who downloads the free version. This allows the developer to profit despite giving the basic app itself away for free.",investopedia,1,51.38,11,11.2,11.95,12.7,10.22,11.875,11.46
In Escrow,"In financial transactions, the term ""in escrow"" indicates a temporary condition of an item, such as money or property, that has been transferred to a third party. This transfer is usually done on behalf of a buyer and seller.",investopedia,1,60.14,9.7,0,9.63,11,10.27,13.25,14.98
In-House,"In-house refers to conducting an activity or operation within a company, instead of relying on outsourcing. This occurs when a firm uses its own employees and time to keep a division or business activity, such as financing or brokering, in-house.",investopedia,1,34.26,13.5,0,11.72,13,10.16,15.5,17
In-House Financing,"In-house financing is financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm's reliance on the financial sector for providing the customer with funds to complete a transaction.",investopedia,1,42.72,12.3,0,14.04,14.7,10.94,14,14
In-Service Withdrawal,"An in-service withdrawal occurs when an employee takes a distribution from a qualified, employer-sponsored retirement plan, such as a 401(k) account, without leaving the employ of their company. This may occur without a tax penalty any time after the employee reaches age 59½, or if the employee withdraws up to $10,000 to purchase their first home, declares a hardship, or establishes extreme financial need.",investopedia,1,30.54,17,0,13.41,20.1,11.14,22,17.8
In Specie,The phrase in specie describes the transfer of an asset in its current form rather than in the equivalent amount of cash. In specie distributions are usually made when cash isn’t readily available or when it’s simply more practical to hand over the asset rather than cash. There also are tax benefits to some in specie transactions.,investopedia,1,69.11,8.3,11.9,10.5,10.9,9.29,11.83333333,12.51
In the Money (ITM),In the money (ITM) is an expression that refers to an option that possesses intrinsic value. ITM thus indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset:,investopedia,1,50.16,11.5,0,9.92,11.6,9.94,14.5,16.02
Incentive Stock Options (ISOs),"An incentive stock option (ISO) is a corporate benefit that gives an employee the right to buy shares of company stock at a discounted price with the added benefit of possible tax breaks on the profit. The profit on qualified ISOs is usually taxed at the capital gains rate, not the higher rate for ordinary income. Non-qualified stock options (NSOs) are taxed as ordinary income.",investopedia,1,49.45,11.8,15.5,10.1,12.3,10.06,15.5,13.6
Incidence Rate,"The term incidence rate refers to the rate at which a new event occurs over a specified period of time. Put simply, the incidence rate is the number of new cases within a time period (the numerator) as a proportion of the number of people at risk for the disease (the denominator).",investopedia,1,53.55,12.3,0,7.9,12.4,9.18,17,15.02
Incidental Expenses (IE),"Incidental expenses, also known as incidentals, are gratuities and other minor fees or costs incurred in addition to the main service, item, or event paid for during business activities.",investopedia,1,25.12,17,0,13.94,18.7,12.15,20.5,19.88
Income Annuity,"An income annuity is an annuity contract that is designed to start paying income as soon as the policy is initiated. Once funded, an income annuity is annuitized immediately, although the underlying income units may be in either fixed or variable investments. As such, income payments may fluctuate over time.",investopedia,1,46.06,11,13.6,11.89,11.4,9.83,11.66666667,13.08
Income Approach,"The income approach, sometimes referred to as the income capitalization approach, is a type of real estate appraisal method that allows investors to estimate the value of a property based on the income the property generates. It’s used by taking the net operating income (NOI) of the rent collected and dividing it by the capitalization rate.",investopedia,1,34.6,15.4,0,12.13,16.7,10.1,18.5,16.2
Income Effect,"In microeconomics, the income effect is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income. This change can be the result of a rise in wages etc., or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on.",investopedia,1,62.85,12.8,0,7.09,15.1,8.6,18.75,15.79
Income Elasticity of Demand,"Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in real income of consumers who buy this good, keeping all other things constant.",investopedia,1,37.98,16.2,0,10.92,17.8,10.06,20.5,18.05
Income from Operations (IFO),"Income from operations (IFO) is also known as operating income or EBIT. Income from operations is the profit realized from a business' own operations. Income from operations is generated from running the primary business and excludes income from other sources. For example, this would exclude income generated from selling the property of a manufacturing company.",investopedia,1,32.09,12.2,13.4,13.85,11.9,8.91,10.125,11.34
Income Fund,"An income fund is a type of mutual fund or exchange-traded fund (ETF) that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital gains or appreciation. Such funds usually hold a variety of government, municipal, and corporate debt obligations, preferred stock, money market instruments, and dividend-paying stocks.",investopedia,1,28.17,15.8,0,14.8,18.6,12.52,20,18.86
Income in Respect of a Decedent (IRD),Income in respect of a decedent (IRD) refers to untaxed income that a decedent had earned or had a right to receive during their lifetime. IRD is taxed to the individual beneficiary or entity that inherits this income.,investopedia,1,52.19,10.7,0,9.86,10.6,9.57,11.5,11.81
Income Inequality,"Income inequality is how unevenly income is distributed throughout a population. The less equal the distribution, the higher income inequality is. Income inequality is often accompanied by wealth inequality, which is the uneven distribution of wealth. Populations can be divided up in different ways to show different levels and forms of income inequality such as income inequality by sex or race. Different measures, such as the Gini coefficient, can be used to analyze the level of income inequality in a population.",investopedia,1,29.65,13.1,14.8,13.16,12.2,8.14,12.3,11.42
Income Per Capita,Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population.,investopedia,1,40.69,13.1,14.1,9.46,11.6,8.79,14.66666667,14.25
Income Property,"An income property refers to a piece of real estate that is purchased or developed primarily in order to earn income by renting or leasing it out to others, with a secondary goal of price appreciation. Income properties, which are a subset of investment properties, may be either residential or commercial.",investopedia,1,37.13,14.4,0,11.55,15,9.86,17.25,16.47
Income Smoothing,"Income smoothing uses accounting techniques to level out fluctuations in net income from one period to the next. Companies indulge in this practice because investors are generally willing to pay a premium for stocks with steady and predictable earnings streams as opposed to stocks whose earnings are subject to more volatile patterns, which can be regarded as riskier.",investopedia,1,42.04,14.6,0,14.23,18.4,11.06,18,16.43
Income Statement,"An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows.",investopedia,1,31.89,18.5,0,14.86,24,10.02,28.5,22.78
Income Stock,"An income stock is an equity security that pays regular, often steadily increasing dividends. Income stocks usually offer a high yield that may generate the majority of the security's overall returns. While there is no specific breakpoint for classification, most income stocks have lower levels of volatility than the overall stock market, and offer higher-than-market dividend yields.",investopedia,1,35.27,13.1,15.5,15.37,15.3,11.23,14.16666667,16.72
Income Tax,"The term income tax refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations.",investopedia,1,35.27,13.1,0,12.94,13,9.98,14,17.07
Income Tax Payable,Income tax payable is a type of account in the current liabilities section of a company's balance sheet. It is compiled of taxes due to the government within one year. The calculation of income tax payable is according to the prevailing tax law in the company's home country.,investopedia,1,55.24,9.5,11.9,9.51,9,8.71,10.33333333,10.57
Incontestability Clause,An incontestability clause is a clause in most life insurance policies that prevent the provider from voiding coverage due to a misstatement by the insured after a specific amount of time has passed. A typical incontestability clause specifies that a contract will not be voidable after two or three years due to a misstatement.,investopedia,1,44.07,13.8,0,12.36,16,9.95,18,15.99
Incorporation,Incorporation is the legal process used to form a corporate entity or company. A corporation is the resulting legal entity that separates the firm's assets and income from its owners and investors.,investopedia,1,38.32,11.9,0,11.95,11,10.35,12,13.9
Incoterms,"To facilitate commerce around the world, the International Chamber of Commerce (ICC) publishes a set of Incoterms, officially known as international commercial terms. Globally recognized, Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers. Parties involved in domestic and international trade commonly use them as a kind of shorthand to help understand one another and the exact terms of their business arrangements. Some Incoterms apply to any means of transportation; others apply strictly to transportation across water.",investopedia,1,33.44,13.8,15.6,17.06,17.4,10.38,15.125,15.07
Incremental Analysis,"Incremental analysis is a decision-making technique used in business to determine the true cost difference between alternatives. Also called the relevant cost approach, marginal analysis, or differential analysis, incremental analysis disregards any sunk cost or past cost. Incremental analysis is useful for business strategy including the decision to self-produce or outsource a function.",investopedia,1,11.21,16.1,17.9,18.56,17.5,9.58,15.5,15.38
Incremental Capital Output Ratio (ICOR),The incremental capital output ratio (ICOR) is a frequently used tool that explains the relationship between the level of investment made in the economy and the consequent increase in the gross domestic product (GDP). ICOR indicates the additional unit of capital or investment needed to produce an additional unit of output.,investopedia,1,28.67,15.6,0,13.58,16.7,11.09,19.25,17.26
Incremental Cost of Capital,Incremental cost of capital is a capital budgeting term that refers to the average cost a company incurs to issue one additional unit of debt or equity. The incremental cost of capital varies according to how many additional units of debt or equity a company wishes to issue. Being able to accurately calculate cost of capital and the incremental effects of issuing more equity or debt can help businesses reduce their overall financing costs.,investopedia,1,29.48,15.3,18.6,11.78,14.5,9.77,19.66666667,15.83
Incremental Cash Flow,Incremental cash flow is the additional operating cash flow that an organization receives from taking on a new project. A positive incremental cash flow means that the company's cash flow will increase with the acceptance of the project. A positive incremental cash flow is a good indication that an organization should invest in a project.,investopedia,1,44.44,11.6,14.6,12.47,12.2,7.99,13.16666667,13.14
Incremental Cost,"Incremental cost is the total cost incurred due to an additional unit of product being produced. Incremental cost is calculated by analyzing the additional expenses involved in the production process, such as raw materials, for one additional unit of production. Understanding incremental costs can help companies boost production efficiency and profitability.",investopedia,1,20.38,14.6,16.7,17.11,15.7,10.67,14.16666667,15.43
Incumbency Certificate,"An incumbency certificate (or certificate of incumbency) is an official document issued by a corporation or limited liability company (LLC) that lists the names of its current directors, officers, and, occasionally, key shareholders. It specifies who holds which positions within the organization, and is most frequently used to confirm the identity of individuals who are authorized to enter into legally binding transactions on the company's behalf.",investopedia,1,4.14,20.9,0,16.2,22.6,12.69,28,25.32
Incumbent,"The term incumbent refers to an individual who currently holds a set of responsibilities within a specific office as part of a corporation or within a branch of the government. As the incumbent, this person has an obligation to the position or office they hold. All incumbents of an organization such as directors and officers are listed on an incumbency certificate. An incumbent may also refer to the obligation itself or to the sense of duty surrounding the accomplishment of a particular task or objective.",investopedia,1,25.83,16.7,18.6,11.78,16.4,9.31,16.125,19.79
Incurred But Not Reported (IBNR),"Incurred but not reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims and/or events that have transpired, but have not yet been reported to an insurance company.",investopedia,1,34.94,17.3,0,11.21,19.8,10.25,25,18.84
Indemnity Insurance,The term indemnity insurance refers to an insurance policy that compensates an insured party for certain unexpected damages or losses up to a certain limit—usually the amount of the loss itself. Insurance companies provide coverage in exchange for premiums paid by the insured parties. These policies are commonly designed to protect professionals and business owners when they are found to be at fault for a specific event such as misjudgment or malpractice. They generally take the form of a letter of indemnity.,investopedia,1,42.21,12.5,15.2,13.05,13.7,9.66,14.75,15.52
Indenture,"Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges. Historically, indenture has also referred to a contract binding one person to work for another for a set period of time (indentured servant), particularly European immigrants. In modern day finance, the word indenture most commonly appears in bond agreements, real estate deals, and some aspects of bankruptcies.",investopedia,1,36.28,12.7,14.9,15.14,15,11.55,13.25,14.98
Indentured Servitude,"Indentured servitude refers to a contract between two individuals, in which one person worked not for money but to repay an indenture, or loan, within a set time period. Indentured servitude was popular in the United States in the 1600s as individuals, mainly European immigrants, worked in exchange for the price of passage to America.",investopedia,1,35.1,15.2,0,12.02,16.5,9.31,18.75,16.09
Independent Contractor,"An independent contractor is a self-employed person or entity contracted to perform work for—or provide services to—another entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes. In addition, an entity that uses the services of an independent contractor is not required to provide them with employment benefits, such as health insurance and employer-sponsored retirement accounts, that the entity might otherwise provide were the contractor an employee. The payer must correctly classify each payee as either an independent contractor or employee. Another term for an independent contractor is “freelancer.”",investopedia,1,26.4,14.4,17.6,16.3,16.1,9.65,16.1,14.36
Index,"An index is a method to track the performance of a group of assets in a standardized way. Indexes typically measure the performance of a basket of securities intended to replicate a certain area of the market. These could be a broad-based index that captures the entire market, such as the Standard & Poor's 500 Index or Dow Jones Industrial Average (DJIA), or more specialized such as indexes that track a particular industry or segment.",investopedia,1,46.4,12.9,15,10.74,14.1,10.41,16.83333333,15.83
Index Fund,"An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.",investopedia,1,48.43,12.1,14.6,10.74,13.4,10.34,15.5,14.37
Index Investing,"Index investing is a passive investment technique that attempts to generate returns similar to a broad market index. Investors use this buy-and-hold strategy to replicate the performance of a specific index—generally an equity or fixed-income index—by purchasing the component securities of the index, or investing in an index mutual fund or exchange traded fund (ETF) that itself closely tracks the underlying index.",investopedia,1,14.63,18.9,0,16.43,21.6,12.05,24,21.43
Index-Linked Bond,"An index-linked bond is a bond in which payment of interest income on the principal is related to a specific price index, usually the Consumer Price Index (CPI). This feature provides protection to investors by shielding them from changes in the underlying index. The bond's cash flows are adjusted to ensure that the holder of the bond receives a known real rate of return. An index-linked bond is also known as a real return bond in Canada, Treasury Inflation-Protected Securities (TIPS) in the U.S., and a linker in the U.K.",investopedia,1,57.1,10.9,12.2,10.1,12.8,10.37,13.75,13.89
Indexation,"Indexation is a system or technique used by organizations or governments to connect prices and asset values. This is done by linking adjustments made to the value of a good, price of a service, or another specified value to a predetermined price or composite index. Indexation requires identifying a price index and determining whether linking the value to the price index will accomplish the organization's goals. Indexation is most commonly used with wages in a high inflation environment. Indexation is also known as escalating.",investopedia,1,37.5,12.2,14.3,12.82,12.1,9.36,12.2,13.86
Indexed Annuity,"An indexed annuity is a type of annuity contract that pays an interest rate based on the performance of a specified market index, such as the S&P 500. It differs from fixed annuities, which pay a fixed rate of interest, and variable annuities, which base their interest rate on a portfolio of securities chosen by the annuity owner. Indexed annuities are sometimes referred to as equity-indexed or fixed-indexed annuities.",investopedia,1,48.13,12.3,15.9,11.96,14.2,9.58,16.5,13.84
Indian Rupee,"The Indian rupee (INR) is the currency of India. INR is the International Organization for Standardization currency code for the Indian rupee, for which the currency symbol is ₹.",investopedia,1,25.12,17,0,12.89,17.9,9.98,11.25,17.12
Indication of Interest (IOI),"An indication of interest (IOI) is an underwriting expression showing a conditional, non-binding interest in buying a security that is currently in registration—awaiting approval by the Securities and Exchange Commission (SEC). The investor's broker is required to provide the investor with a preliminary prospectus. However, IOIs in the mergers and acquisitions world have similar intent but are done differently.",investopedia,1,26.1,14.5,16.7,16.65,16.8,12.91,15.5,17.37
Indicative Net Asset Value (iNAV),Indicative net asset value (iNAV) is a measure of the intraday net asset value (NAV) of an investment. INAV is reported approximately every 15 seconds. It gives investors a measure of the value of the investment throughout the day.,investopedia,1,49.82,9.5,11.2,9.5,8.4,9.54,7.5,10.33
Indicator,Indicators are statistics used to measure current conditions as well as to forecast financial or economic trends.,investopedia,1,37.3,12.3,0,15.19,14,11.91,13.5,18.56
Indifference Curve,"An indifference curve, with respect to two commodities, is a graph showing those combinations of the two commodities that leave the consumer equally well off or equally satisfied—hence indifferent—in having any combination on the curve.",investopedia,1,27.49,18.1,0,16.31,23.2,10.79,24.5,20.86
Indirect Loan,An indirect loan can refer to an installment loan in which the lender – either the original issuer of the debt or the current holder of the debt – does not have a direct relationship with the borrower.,investopedia,1,49.83,15.8,0,8.19,17.9,9.68,24,20.46
Indirect Method,The indirect method is one of two accounting treatments used to generate a cash flow statement. The indirect method uses increases and decreases in balance sheet line items to modify the operating section of the cash flow statement from the accrual method to cash method of accounting.,investopedia,1,47.62,12.5,0,12.25,14.3,9.84,16.75,16.21
Indirect Quote,"The term indirect quote is a currency quotation in the foreign exchange market that expresses the variable amount of foreign currency required to buy or sell one unit of the domestic currency. An indirect quote is also known as a “quantity quotation,” since it expresses the quantity of foreign currency required to buy units of the domestic currency. In other words, the domestic currency is the base currency in an indirect quote, while the foreign currency is the counter currency.",investopedia,1,35.91,14.9,18.2,12.02,15.8,7.53,20.33333333,13.68
Indirect Tax,"An indirect tax is collected by one entity in the supply chain (usually a producer or retailer) and paid to the government, but it is passed on to the consumer as part of the purchase price of a good or service. The consumer is ultimately paying the tax by paying more for the product.",investopedia,1,52.53,12.6,0,7.84,12.7,8.78,18,15.99
Individual Retirement Account (IRA),"An individual retirement account (IRA) is a tax-advantaged account that individuals use to save and invest for retirement. The Internal Revenue Service (IRS) also uses the term individual retirement arrangements (also IRAs) to broadly refer to individual retirement accounts, individual retirement annuities, and other trusts and custodial accounts that act as personal savings plans with tax advantages for setting aside money for retirement.",investopedia,1,5.66,20.3,0,17.36,22.8,10.46,24.75,18.95
Industrial Goods Sector,"The industrial goods sector is a category of stocks of companies who produce capital goods used in construction and manufacturing. Businesses in the industrial goods sector make and sell machinery, equipment, and supplies that are used to produce other goods rather than sold directly to consumers.",investopedia,1,39.67,13.4,0,14.39,16,9.24,16.5,15.29
Industrial Organization,"Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Industrial organization applies the economic theory of price to industries. Economists and other academics who study industrial organization seek to increase understanding of the methods by which industries operate, improve industries' contributions to economic welfare, and improve government policy in relation to these industries.",investopedia,1,-1.32,18.8,19.9,19.72,20.1,10.79,19.5,18.53
Industrial Production Index (IPI),"The industrial production index (IPI) is a monthly economic indicator measuring real output in the manufacturing, mining, electric, and gas industries, relative to a base year.",investopedia,1,11.25,18.2,0,15.38,19.1,12.82,21,22.71
Industrial Revenue Bonds—IRBs,Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools.,investopedia,1,21.06,18.5,0,13.53,20,13.41,23.5,19.26
Industrial Revolution,The Industrial Revolution was a period of major industrialization and innovation that took place during the late 1700s and early 1800s. The Industrial Revolution began in Great Britain and quickly spread throughout the world.,investopedia,1,37.3,12.3,0,15.19,14,8.66,12,12.68
Industrialization,"Industrialization is the process by which an economy is transformed from a primarily agricultural one to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production, and craftsmen are replaced by assembly lines. Characteristics of industrialization include economic growth, the more efficient division of labor, and the use of technological innovation to solve problems as opposed to dependency on conditions outside of human control.",investopedia,1,13.58,17.3,17.5,16.6,18.1,12.15,18.16666667,19.62
Industry Life Cycle,"The industry life cycle refers to the evolution of an industry or business through four stages based on the business characteristics commonly displayed in each phase. The four phases of an industry life cycle are the introduction, growth, maturity, and decline stages. Industries are born when new products are developed, with significant uncertainty regarding market size, product specifications, and main competitors. Consolidation and failure whittle down an established industry as it grows, and the remaining competitors minimize expenses as growth slows and demand eventually wanes.",investopedia,1,32.94,14,16.8,16.36,17.1,11.57,16.375,17.46
Industry Life Cycle Analysis,"Industry life cycle analysis is part of fundamental analysis of a company involving the examination of the stage an industry is in at a given point in time. There are four stages in an industry life cycle: expansion, peak, contraction, trough. An analyst will determine where a company sits in the cycle and use this information to project future financial performance and estimate forward valuations (e.g., forward price-earnings ratios).",investopedia,1,31.21,14.6,17.5,13.12,15.4,10.27,17.83333333,17.32
Inefficient Market,"According to economic theory, an inefficient market is one in which an asset's prices do not accurately reflect its true value, which may occur for several reasons. Inefficiencies often lead to deadweight losses. In reality, most markets do display some level of inefficiencies, and in the extreme case an inefficient market can be an example of a market failure.",investopedia,1,34.56,13.3,14.1,11.89,12.8,9.7,13.5,13.3
Infant-Industry Theory,The infant-industry theory states that new industries in developing countries need protection against competitive pressures until they mature and develop economies of scale that can rival their competitors'. The infant industry argument is often cited as a rationale for protectionism and was developed by Alexander Hamilton and Friedrich List.,investopedia,1,29.69,15.2,0,17.58,19.3,12.26,18.75,19.6
Inferior Goods,An inferior good is an economic term that describes a good whose demand drops when people's incomes rise. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead.,investopedia,1,52.19,10.7,0,11.55,11.9,9.57,11.5,11.81
Inflation Accounting,"Inflation accounting is a special technique used to factor in the impact soaring or plummeting costs of goods in some regions of the world have on the reported figures of international companies. Financial statements are adjusted according to price indexes, rather than relying solely on a cost accounting basis, to paint a clearer picture of a firm’s financial position in inflationary environments. This method is also sometimes referred to as price level accounting.",investopedia,1,38.35,13.9,16.7,14.45,16.6,11.11,17.83333333,17.39
Inflation-Adjusted Return,The inflation-adjusted return is the measure of return that takes into account the time period's inflation rate. The purpose of the inflation-adjusted return metric is to reveal the return on an investment after removing the effects of inflation.,investopedia,1,35.27,13.1,0,13.87,14,8.73,13,12.86
Inflation Hedge,"An inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising prices either macro-economically or due to inflation. It typically involves investing in an asset that is expected to maintain or increase its value over a specified period of time. Alternatively, the hedge could involve taking a higher position in assets, which may decrease in value less rapidly than the value of the currency.",investopedia,1,35.31,15.1,15.9,11.78,16,10,18.66666667,17.26
Inflation Swap,An inflation swap is a contract used to transfer inflation risk from one party to another through an exchange of fixed cash flows.,investopedia,1,65.05,9.9,0,9.99,12.2,9.58,14.5,10.94
Inflationary Gap,An inflationary gap is a macroeconomic concept that measures the difference between the current level of real gross domestic product (GDP) and the GDP that would exist if an economy was operating at full employment.,investopedia,1,27.49,18.1,0,12.95,20.6,11.69,24.5,20.86
Inflection Point,"An inflection point is an event that results in a significant change in the progress of a company, industry, sector, economy, or geopolitical situation and can be considered a turning point after which a dramatic change, with either positive or negative results, is expected to result.",investopedia,1,16.33,22.4,0,13.01,26.2,11.75,35,27.97
Information Coefficient (IC),"The information coefficient (IC) is a measure used to evaluate the skill of an investment analyst or an active portfolio manager. The information coefficient shows how closely the analyst's financial forecasts match actual financial results. The IC can range from 1.0 to -1.0, with -1 indicating the analyst's forecasts bear no relation to the actual results, and 1 indicating that the analyst's forecasts perfectly matched actual results.",investopedia,1,23.46,15.5,18.2,14.1,16,10.16,18.16666667,16.08
Information Ratio,"The information ratio (IR) is a measurement of portfolio returns beyond the returns of a benchmark, usually an index, compared to the volatility of those returns. The benchmark used is typically an index that represents the market or a particular sector or industry.",investopedia,1,32.73,14,0,12.13,13.9,10.95,15.25,16.97
Infrastructure,"Infrastructure is the general term for the basic physical systems of a business, region, or nation. Examples of infrastructure include transportation systems, communication networks, sewage, water, and electric systems. These systems tend to be capital intensive and high-cost investments, and are vital to a country's economic development and prosperity.",investopedia,1,21.09,14.4,15,17.34,16.3,10.89,12.5,14.68
Inherent Risk,"Inherent risk is the risk posed by an error or omission in a financial statement due to a factor other than a failure of internal control. In a financial audit, inherent risk is most likely to occur when transactions are complex, or in situations that require a high degree of judgment in regard to financial estimates. This type of risk represents a worst-case scenario because all internal controls in place have nonetheless failed.",investopedia,1,46.81,12.8,14.6,11.32,14.1,10.68,16.16666667,14.1
Inheritance,"Inheritance refers to the assets that an individual bequeaths to their loved ones after they pass away. An inheritance may contain cash, investments such as stocks or bonds, and other assets such as jewelry, automobiles, art, antiques, and real estate.",investopedia,1,42.72,12.3,0,12.47,13.7,10.55,13,13
Inheritance Tax,"An inheritance tax is a tax imposed by certain states on those who are bequeathed or receive assets from the estate of a deceased person. The tax rate depends on the state of residence, the value of the inheritance, and the beneficiary's relationship to the decedent.",investopedia,1,48.13,12.3,0,10.39,12.8,8.55,14,12.68
Inherited IRA,"An inherited IRA is an account that is opened when an individual inherits an IRA or employer-sponsored retirement plan after the original owner dies. The individual inheriting the Individual Retirement Account (IRA) (the beneficiary) may be anyone—a spouse, relative, or unrelated party or entity (estate or trust). Rules on how to handle an inherited IRA differ for spouses and non-spouses, however.",investopedia,1,25.49,14.7,16.7,13.81,15.1,9.82,15.83333333,15.33
Initial Coin Offering (ICO),"An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.",investopedia,1,60.14,9.7,0,9.05,10.6,9.46,12.75,11.9
Initial Public Offerings (IPOs),"An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering.",investopedia,1,42.41,12.4,13.8,12.71,13.5,8.74,13.625,12.07
Inorganic Growth,Inorganic growth arises from mergers or takeovers rather than an increase in the company's own business activity. Firms that choose to grow inorganically can gain access to new markets through successful mergers and acquisitions. Inorganic growth is considered a faster way for a company to grow compared to organic growth.,investopedia,1,46.06,11,13.6,13.74,12.7,10.15,11.66666667,13.08
Input-Output Analysis,"Input-output analysis (I-O) is a form of macroeconomic analysis based on the interdependencies between different economic sectors or industries. This method is commonly used for estimating the impacts of positive or negative economic shocks and analyzing the ripple effects throughout an economy. I-O economic analysis was originally developed by Wassily Leontief (1906–1999), who later won the Nobel Memorial Prize in Economic Sciences for his work in this area.",investopedia,1,23.05,15.7,18.6,15.84,17.3,12.43,18.66666667,17.9
INSEAD,"One of the world's top graduate business schools, INSEAD, has campuses in France, Singapore, San Francisco, and the Middle East, along with a research center in Israel. Founded in 1957, INSEAD is an acronym for ""Institut Européen d'Administration des Affaires.""",investopedia,1,51.18,11.1,0,13.05,14.7,12.13,13,14
Inside Day,"An inside day is a two-day price pattern that occurs when a second day has a range that is completely inside the first day's price range. The high of the second day is lower than the first, and the low of the second is higher than the first.",investopedia,1,72.5,9.1,0,5.87,9.6,7.13,12.5,10.43
Inside Indemnity,"Indemnity is a comprehensive form of insurance compensation for damages or loss. When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages.",investopedia,1,46.27,10.9,0,10.73,10.2,8.76,11.75,13.87
Inside Sales,"Inside sales means the sale of products or services by personnel who reach customers through phone, email, or the internet. Other ways to define inside sales are ""remote sales"" or ""virtual sales.""",investopedia,1,72.16,7.2,0,11.08,11,9.86,8.5,10.15
Insider,Insider information is a fact about a public company's plans or finances that has not yet been revealed to shareholders and that could give an unfair advantage to its possessors if acted upon. Buying or selling stock based on insider information can be a criminal offense.,investopedia,1,48.13,12.3,0,11.26,13.3,9.93,16,15.29
Insider Trading,"Insider trading involves trading in a public company's stock by someone who has non-public, material information about that stock for any reason. Insider trading can be either illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still non-public, and this sort of insider trading comes with harsh consequences.",investopedia,1,34.97,13.2,15.9,13,13.5,8.41,14.66666667,12.55
Insolvency,"Insolvency is a term for when an individual or company can no longer meet their financial obligations to lenders as debts become due. Before an insolvent company or person gets involved in insolvency proceedings, they will likely be involved in informal arrangements with creditors, such as setting up alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in cash inflow, or an increase in expenses.",investopedia,1,31.51,14.5,17.1,14.34,15.8,9.41,17.33333333,16.73
Installment Debt,An installment debt is a loan that is repaid by the borrower in regular installments. An installment debt is generally repaid in equal monthly payments that include interest and a portion of the principal. This type of loan is an amortized loan that requires a standard amortization schedule to be created by the lender detailing payments throughout the loan’s duration.,investopedia,1,51.18,11.1,14.6,12.47,13,11.21,14,15.33
Institute for Supply Management (ISM),"The term Institute for Supply Management (ISM) refers to a nonprofit supply management association. Established in 1915, it is the largest organization of its kind. It provides certification, development, education, and research for individuals and corporations in the supply management and purchasing professions. The goal of the ISM is to help advance supply management ""to drive value and competitive advantage."" The organization publishes the ISM Manufacturing Report on Business.",investopedia,1,23.63,13.4,14.8,16,13.9,10.04,11.1,15.38
Institute of Management Accountants (IMA),"The Institute of Management Accountants (IMA) is one of the top associations for financial professionals. It offers the prestigious Certified Management Accountant (CMA) designation. The IMA's mission is to promote education and development in managetment accounting and finance, advocate for the highest ethics and best business practices, and provide a forum for research.",investopedia,1,28.13,13.7,16.3,16.59,16,12.86,14.16666667,18.4
Institutional Brokers' Estimate System (IBES),The Institutional Brokers' Estimate System (IBES) is a database used by brokers and active investors to access the estimates made by stock analysts regarding the future earnings of publicly traded American companies.,investopedia,1,22.08,18.1,0,16.31,21.9,14.11,23,20.3
Institutional Investor,"An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, and insurance companies are examples. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other securities and, for that reason, are considered to be the whales on Wall Street. The group is also viewed as more sophisticated than the average retail investor and, in some instances, are subject to less restrictive regulations.",investopedia,1,35.78,12.9,14.2,13.75,13.8,10.1,13,14.43
Instrument,"An instrument is a means by which something of value is transferred, held, or accomplished. In the field of finance, an instrument is a tradable asset, or negotiable item, such as a security, commodity, derivative, or index, or any item that underlies a derivative.",investopedia,1,40.69,13.1,0,10.56,13.4,9.39,15.5,15.16
Insufficient Funds,"The term non-sufficient funds (NSF), or insufficient funds, refers to the status of a checking account that does not have enough money to cover transactions. NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account. You may see a “non-sufficient funds” or “insufficient funds” notice on a bank statement or at an ATM terminal (or on a receipt) when attempting to withdraw more money than your account holds.",investopedia,1,39.84,17.5,0,10.86,21.4,9.99,15.83333333,18.84
Insurable Interest,"Insurable interest is a type of investment that protects anything subject to a financial loss. A person or entity has an insurable interest in an item, event or action when the damage or loss of the object would cause a financial loss or other hardships. To have an insurable interest a person or entity would take out an insurance policy protecting the person, item, or event in question. The insurance policy would mitigate the risk of loss if something happens to the asset—like becoming damaged or lost.",investopedia,1,49.35,11.8,15.6,10.33,12.2,8.35,15.625,12.86
Insurance Claim,"An insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event. The insurance company validates the claim (or denies the claim). If it is approved, the insurance company will issue payment to the insured or an approved interested party on behalf of the insured.",investopedia,1,43.43,12,15,10.73,11.5,8.95,14,11.86
Insurance Coverage,"Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance—or more exotic forms, such as hole-in-one insurance—is issued by an insurer in the event of unforeseen occurrences.",investopedia,1,30.7,14.8,0,13.76,16,9.84,19.25,17.06
Insurance Premium,An insurance premium is the amount of money an individual or business pays for an insurance policy.,investopedia,1,37.3,12.3,0,10.38,10.1,9.12,13.5,16.21
Insurance Underwriter,Insurance underwriters are professionals who evaluate and analyze the risks involved in insuring people and assets. Insurance underwriters establish pricing for accepted insurable risks. The term underwriting means receiving remuneration for the willingness to pay a potential risk. Underwriters use specialized software and actuarial data to determine the likelihood and magnitude of a risk.,investopedia,1,10.91,16.2,18.6,18.5,17.2,12.13,12.25,21.27
Insurtech,"Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech.",investopedia,1,36.28,12.7,0,15.43,14.8,10.67,13,13.87
Intangible Asset,"An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.",investopedia,1,31.58,12.4,14.1,16.23,14.7,11.69,10.83333333,14.09
Intangible Personal Property,"Intangible personal property is an item of individual value that cannot be touched or held. Intangible personal property can include any item of worth that is not physical in nature but instead represents something else of value. We may add also image, social, and reputational capital, and recently, personal social media pages and other personal digital assets.",investopedia,1,26.81,14.2,15.9,13.23,13.5,9.57,14.5,13.92
Intellectual Capital,"Intellectual capital is the value of a company's employee knowledge, skills, business training, or any proprietary information that may provide the company with a competitive advantage.",investopedia,1,11.25,18.2,0,17.58,20.5,11.61,22,21.17
Intentionally Defective Grantor Trust (IDGT),"An intentionally defective grantor (IDGT) trust is an estate-planning tool that is used to freeze certain assets of an individual for estate tax purposes, but not for income tax purposes. The intentionally defective trust is created as a grantor trust with a loophole that allows the trustor to continue paying income taxes on certain trust assets, as income tax laws will not recognize that those assets have been transferred away from the individual.",investopedia,1,34.43,17.5,0,13.01,21.4,9.56,24.25,18.44
Inter-American Development Bank (IDB),"The Inter-American Development Bank (IDB) is a cooperative development bank founded in 1959 to accelerate the economic and social development of its Latin American and Caribbean member countries. It is owned by a total of 48 member countries, including the U.S. and some European nations. The bank provides financing in the form of loans and grants.",investopedia,1,26.14,16.6,0,12.77,17.5,11.79,20.5,16.91
Interactive Media,"Interactive media is a method of communication in which the program's outputs depend on the user's inputs, and the user's inputs, in turn, affect the program's outputs. Simply put, it refers to the different ways in which people process and share information, or how they communicate with one another. Interactive media allows people to connect with others—whether that's people or organizations—making them active participants in the media they consume.",investopedia,1,28,17.9,0,14.75,22.2,10.38,14.83333333,17.28
Interbank Deposits,"The term interbank deposit refers to an arrangement between two banks in which one holds funds in an account for another institution. The interbank deposit arrangement requires that the holding bank opens a due to account for the other. This is a general ledger account with funds payable to another party. In the arrangement, the correspondent bank is the one that waits for the deposit.",investopedia,1,63.39,8.5,12.2,10.9,10.2,7.85,10.625,8.98
Interbank Market,"The interbank market is a global network utilized by financial institutions to trade currencies and other currency derivatives directly between themselves. While some interbank trading is done by banks on behalf of large customers, most interbank trading is proprietary, meaning that it takes place on behalf of the banks' own accounts. Banks use the interbank market to manage their own exchange rate and interest rate risk as well as to take speculative positions based on research.",investopedia,1,32.91,18.1,0,14.17,23,11.13,17.33333333,20.99
Interbank Network for Electronic Transfer (INET),"Interbank Network for Electronic Transfer (INET) processed credit and debit card transactions between financial institutions (FIs). It handled the transferring of funds from cards bearing the MasterCard Inc. (MA) logo, prior to the introduction of Banknet.",investopedia,1,36.28,12.7,0,17.05,17,15.06,13,16.09
Interbank Rate,"The interbank rate is the rate of interest charged on short-term loans made between U.S. banks. Banks may borrow money from other banks to ensure that they have enough liquidity for their immediate needs, or lend money when they have excess cash on hand. The interbank lending system is short-term, typically overnight, and rarely more than a week.",investopedia,1,68.81,8.5,11.2,10.79,11.9,8.95,11.66666667,11.17
Intercontinental Exchange (ICE),"The Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity marketplaces and exchanges. It was founded in May 2000 in Atlanta, Georgia. ICE operations include futures exchanges, cash exchanges, central clearing houses, and market services for off-exchange trading. ICE operates futures exchanges in the U.S., Europe, and Singapore. Its cash exchanges include the New York Stock Exchange (NYSE), NYSE ARCA, NYSE National, NYSE AMEX Options, NYSE ARCA Options, and NYSE Chicago. ICE also operates six central clearing houses: ICE Clear U.S., ICE Clear Europe, ICE Clear Singapore, ICE Clear Credit, ICE Clear Netherlands, and ICE NGX.",investopedia,1,45.96,11,11.9,13.8,13.9,9.63,10.66666667,9.89
Interest Coverage Ratio,The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The interest coverage ratio may be calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense during a given period.,investopedia,1,21.23,16.4,0,12.36,15.1,10.01,20.25,17.96
Interest Expense,"An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt. Interest expense on the income statement represents interest accrued during the period covered by the financial statements, and not the amount of interest paid over that period. While interest expense is tax-deductible for companies, in an individual's case, it depends on his or her jurisdiction and also on the loan's purpose.",investopedia,1,44.95,11.4,14.8,12.82,12.8,9.83,12.33333333,12.73
Interest-Only Mortgage,"An interest-only mortgage is a type of mortgage in which the mortgagor (the borrower) is required to pay only the interest on the loan for a certain period. The principal is repaid either in a lump sum at a specified date, or in subsequent payments.",investopedia,1,57.1,10.9,0,8.65,11.3,8.96,14.75,14.33
Interest Rate,"The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. The interest rate is typically noted on an annual basis known as the annual percentage rate (APR). The assets borrowed could include cash, consumer goods, or large assets such as a vehicle or building.",investopedia,1,61.36,9.2,13,9.63,10.2,9.14,12.16666667,11.68
Interest Rate Call Option,"An interest rate call option is a derivative in which the holder has the right to receive an interest payment based on a variable interest rate, and then subsequently pays an interest payment based on a fixed interest rate. If the option is exercised, the investor who sells the interest rate call option will make a net payment to the option holder.",investopedia,1,48.47,14.2,0,9.99,16,7.98,20,14.98
Interest Rate Differential (IRD),An interest rate differential (IRD) weighs the contrast in interest rates between two similar interest-bearing assets. Most often it is the difference between two interest rates.,investopedia,1,41.36,10.7,0,14.83,12.8,9.75,9,9.82
Interest Rate Future,An interest rate future is a futures contract with an underlying instrument that pays interest. The contract is an agreement between the buyer and seller for the future delivery of any interest-bearing asset.,investopedia,1,37.81,12.1,0,12.82,11.9,10.68,11.25,11.45
Interest Rate Options,An interest rate option is a financial derivative that allows the holder to benefit from changes in interest rates. Investors can speculate on the direction of interest rates with interest rate options. It is similar to an equity option and can be either a put or a call. Interest rate options are option contracts on the rate of bonds like U.S. Treasury securities.,investopedia,1,55.44,9.5,13.4,9.97,9.2,9.18,11.125,11.4
Interest Rate Parity,Interest rate parity (IRP) is a theory according to which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.,investopedia,1,30.54,17,0,13.59,19.6,8.68,23,19.05
Interest Rate Risk,"Interest rate risk is the potential for investment losses that result from a change in interest rates. If interest rates rise, for instance, the value of a bond or other fixed-income investment will decline. The change in a bond's price given a change in interest rates is known as its duration.",investopedia,1,62.68,8.7,13,9.51,9.7,8.5,11.5,9.94
Interest Rate Sensitivity,Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment. Securities that are more sensitive have greater price fluctuations than those with less sensitivity.,investopedia,1,42.21,12.5,0,13,13.7,9.27,15.25,15.03
Interim Dividend,An interim dividend is a dividend payment made before a company's annual general meeting (AGM) and the release of final financial statements. This declared dividend usually accompanies the company's interim financial statements. The interim dividend is issued more frequently in the United Kingdom where dividends are often paid semi-annually. The interim dividend is typically the smaller of the two payments made to shareholders.,investopedia,1,30.06,13,16.5,15.95,14.3,9.68,13.375,13.94
Interim Statement,"An interim statement is a financial report covering a period of less than one year. Interim statements are used to convey the performance of a company before the end of normal full-year financial reporting cycles. Unlike annual statements, interim statements do not have to be audited. Interim statements increase communication between companies and the public and provide investors with up-to-date information between annual reporting periods.",investopedia,1,29.55,13.2,15.9,15.6,14.2,9.55,13.125,13.9
Intermediate Good,"An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Intermediate goods—like salt—can also be finished products, since it is consumed directly by consumers and used by producers to manufacture other food products.",investopedia,1,32.22,14.2,0,13.69,15.1,9.39,14.5,12.44
Internal Audit,"Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. These audits ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal audits also provide management with the tools necessary to attain operational efficiency by identifying problems and correcting lapses before they are discovered in an external audit.",investopedia,1,8.57,17.1,19.3,19.26,18.7,13.7,18.16666667,22.55
Internal Auditor (IA),"An internal auditor (IA) is a trained professional employed by companies to provide independent and objective evaluations of financial and operational business activities, including corporate governance. They are tasked with ensuring that companies comply with laws and regulations, follow proper procedures, and function as efficiently as possible.",investopedia,1,5.32,18.4,0,19.67,20.8,13.2,21.25,23.87
Internal Controls,"Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. Besides complying with laws and regulations and preventing employees from stealing assets or committing fraud, internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting.",investopedia,1,0.25,20.3,0,19.96,23.4,13.08,25.75,25.44
Internal Growth Rate,"An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm's maximum internal growth rate is the level of business operations that can continue to fund and grow the company.",investopedia,1,29.86,19.3,0,12.49,23.1,10.29,28.5,22.25
Internal Rate of Return (IRR),The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.,investopedia,1,57.1,10.9,0,10.33,12.6,10.02,15.75,16.11
Internal Revenue Code (IRC),"The Internal Revenue Code (IRC) refers to Title 26 of the U.S. Code, the official ""consolidation and codification of the general and permanent laws of the United States,"" as the Code's preface explains. Commonly referred to as the IRS code or IRS tax code, the laws in Title 26 are enforced by the Internal Revenue Service (IRS). The United States Code was first published in 1926 by the U.S. House of Representatives. Title 26 covers all relevant rules pertaining to income, gift, estate, sales, payroll, and excise taxes. ",investopedia,1,61.87,9.1,11.6,9.86,11,10.2,8.25,11.16
Internal Revenue Service (IRS),"The Internal Revenue Service (IRS) is a U.S. government agency responsible for the collection of taxes and enforcement of tax laws (such as the wash sale rule). Established in 1862 by President Abraham Lincoln, the agency operates under the authority of the United States Department of the Treasury, and its primary purpose includes the collection of individual income taxes and employment taxes. The IRS also handles corporate, gift, excise, and estate taxes, including mutual funds and dividends.",investopedia,1,28.47,15.7,17.1,13.76,17.3,11.68,18.83333333,18.59
Internalization,"Internalization occurs when a transaction is handled by an entity itself rather than routing it out to someone else. This process may apply to business and investment transactions, or to the corporate world.",investopedia,1,54.73,9.7,0,12.64,11.8,9.72,11.25,13.87
International Accounting Standards (IAS),"International Accounting Standards (IAS) are older accounting standards issued by the International Accounting Standards Board (IASB), an independent international standard-setting body based in London. The IAS were replaced in 2001 by International Financial Reporting Standards (IFRS).",investopedia,1,10.91,16.2,0,21.4,20.5,11.55,14.5,12.76
International Bank Account Number (IBAN),"An IBAN, or international bank account number, is a standard international numbering system developed to identify an overseas bank account. The number starts with a two-digit country code, then two numbers, followed by several more alphanumeric characters. Noter that an IBAN does not replace a bank's own account numbering, as it’s only meant to provide additional information that helps in identifying overseas payments.",investopedia,1,33.24,13.8,14.6,14.97,16,10.94,14.5,14.11
International Bank of Reconstruction and Development (IBRD),The International Bank of Reconstruction and Development (IBRD) is a development bank administered by the World Bank. The IBRD offers financial products and policy advice to countries aiming to reduce poverty and promote sustainable development. The International Bank of Reconstruction and Development is a cooperative owned by 189 member countries.,investopedia,1,20.68,14.5,15,16.76,15.3,10.47,12.66666667,13.08
International Banking Facility (IBF),"An International Banking Facility allows depository institutions in the U.S. to offer deposit, loan, and other banking services to foreign residents and institutions while being exempted from the Federal Reserve's reserve requirements as well as some state and local income taxes.",investopedia,1,4.48,22.8,0,17.02,26.9,12.6,29.5,24.2
International Bond,"An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer's native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity.",investopedia,1,38.32,11.9,15,11.19,10.6,11.34,12.33333333,17.23
International Chamber of Commerce (ICC),"The International Chamber of Commerce is the largest, most diverse business organization in the world. The ICC has hundreds of thousands of member companies from more than 100 countries with broad business interests.",investopedia,1,54.73,9.7,0,14.61,13.4,10.68,10.25,11.45
International Depository Receipt (IDR),An international depository receipt (IDR) is a negotiable certificate issued by a bank. It represents ownership of a number of shares of stock in a foreign company that the bank holds in trust.,investopedia,1,46.27,10.9,0,10.03,9.8,10.2,11.75,13.87
International Finance,"International finance, sometimes known as international macroeconomics, is the study of monetary interactions between two or more countries, focusing on areas such as foreign direct investment and currency exchange rates.",investopedia,1,7.19,19.7,0,19.68,23.7,11.44,23,21.33
International Finance Corporation,"The International Finance Corporation (IFC) provides financing of private-enterprise investment in developing countries around the world, through both loans and direct investments. Affiliated with the World Bank, it also provides advisory services to encourage the development of private enterprise in nations that might be lacking the necessary infrastructure or liquidity for businesses to secure financing.",investopedia,1,9.72,18.7,0,19.73,22.7,12.18,22.25,21.91
International Financial Reporting Standards (IFRS),"International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB). They specify how companies must maintain and report their accounts, defining types of transactions, and other events with financial impact. IFRS were established to create a common accounting language so that businesses and their financial statements can be consistent and reliable from company to company and country to country.",investopedia,1,34.26,13.5,16.2,17,17.1,9.96,15.25,14.5
International Fisher Effect (IFE),The International Fisher Effect (IFE) is an economic theory stating that the expected disparity between the exchange rate of two currencies is approximately equal to the difference between their countries' nominal interest rates.,investopedia,1,4.14,20.9,0,17.24,23.2,12.45,26.5,24.11
International Investing,International investing involves selecting global investment instruments as part of a geographically diversified portfolio. People often invest internationally to increase the diversification of their portfolio and spread investment risk among foreign markets and companies.,investopedia,1,-13.47,19.4,0,23.2,20.5,12.84,15,19.74
International Labor Organization (ILO),"The International Labour Organization (ILO) is a United Nations (U.N.) agency. The goal of the ILO is to advance social and economic justice by setting international labor standards. The ILO has 187 member states and is headquartered in Geneva, Switzerland, with approximately 40 field offices around the world. The standards upheld by the ILO are broadly intended to ensure accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security, and dignity.",investopedia,1,35.98,12.8,13.8,14.33,14.4,11.68,12.625,14.44
International Maritime Organization (IMO),"The International Maritime Organization (IMO) is a specialized agency of the United Nations that is responsible for measures to improve the safety and security of international shipping and to prevent marine pollution from ships. The IMO sets standards for the safety and security of international shipping. It oversees every aspect of worldwide shipping regulations, including legal issues and shipping efficiency.",investopedia,1,17.34,15.8,14.6,16.53,16.5,11.21,14,14
International Monetary Fund (IMF),"The International Monetary Fund (IMF) is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty. Quotas of member countries are a key determinant of the voting power in IMF decisions. Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes. SDRS are an international type of monetary reserve currency created by the IMF as a supplement to the existing money reserves of member countries.",investopedia,1,34.97,13.2,14.9,14.97,15,12.18,13.875,14.47
International Monetary Market (IMM),"The International Money Market or IMM is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. Trading on the IMM started in May 1972, when the CME and the IMM merged.",investopedia,1,58.11,10.5,0,9.28,11.5,10.21,13.25,13.25
International Organization for Standardization (ISO),"The International Organization for Standardization (ISO) is an international nongovernmental organization made up of national standards bodies; it develops and publishes a wide range of proprietary, industrial, and commercial standards and is comprised of representatives from various national standards organizations.",investopedia,1,-36.81,28.3,0,23.22,31.7,12.33,36,29
International Securities Identification Number (ISIN),An International Securities Identification Number (ISIN) is a 12-digit alphanumeric code that uniquely identifies a specific security. The organization that allocates ISINs in any particular country is the country's respective National Numbering Agency (NNA).,investopedia,1,3.46,17,0,19.6,18.4,14.7,15,22.09
International Swaps and Derivatives Association (ISDA),"The International Swaps and Derivatives Association (ISDA) is a trade organization created by the private negotiated derivatives market that represents participating parties. This association helps to improve the private negotiated derivatives market by identifying and reducing risks in the market. For nearly three decades the industry has used the ISDA master agreement as a template for entering into contractual obligation for derivatives, creating a basic structure and standardization where there were only bespoke transactions before.",investopedia,1,3.8,18.9,18.6,18.74,20.5,10.98,19.83333333,19.07
Internationalization,"Internationalization describes the process of designing products to meet the needs of users in many countries or designing them so they can be easily modified, to achieve this goal. Internationalization might mean designing a website so that when it's translated from English to Spanish, the aesthetic layout still works properly. This may be difficult to achieve because many words in Spanish have more characters than their English counterparts. They may thus take up more space on the page in Spanish than in English.",investopedia,1,50.36,11.4,13.4,12.82,13.8,9.04,13.625,13.14
Internet of Things (IoT),"The Internet of Things (IoT) is a name for the aggregate collection of network-enabled devices, excluding traditional computers like laptops and servers. Types of network connections can include Wi-Fi connections, Bluetooth connections, and near-field communication (NFC). The IoT includes devices such as ""smart"" appliances, like refrigerators and thermostats; home security systems; computer peripherals, like webcams and printers; wearable technology, such as Apple Watches and Fitbits; routers; and smart speaker devices, like Amazon Echo and Google Home.",investopedia,1,28.88,15.5,17.1,18.11,21.2,12.99,18.66666667,18.01
Interpersonal Skills,"Interpersonal skills are the behaviors and tactics a person uses to interact with others effectively. In the business world, the term refers to an employee's ability to work well with others. Interpersonal skills range from communication and listening to attitude and deportment.",investopedia,1,40.35,11.1,14.1,14.32,12.3,10.35,10.66666667,15.12
Interpolated Yield Curve (I Curve),"An interpolated yield curve (I curve) is a yield curve derived by using on-the-run Treasuries. Because on-the-run Treasuries are limited to specific maturities, the yield of maturities that lies between the on-the-run treasuries must be interpolated. Interpolation is a way to determine the value of an unknown entity, often by using numerical analysis to estimate the value of that entity.",investopedia,1,34.26,13.5,15,13.46,14.6,8.58,14.33333333,14.67
Interpolation,Interpolation is a statistical method by which related known values are used to estimate an unknown price or potential yield of a security. Interpolation is achieved by using other established values that are located in sequence with the unknown value.,investopedia,1,34.26,13.5,0,13.34,13.7,10.16,14.5,16
Intertemporal Choice,"Intertemporal choice is an economic term describing how current decisions affect what options become available in the future.  Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa.",investopedia,1,3.13,21.3,0,18.81,25.1,13.22,12.5,23.01
Inter-Vivos Trust,"An inter-vivos trust is a fiduciary relationship used in estate planning created during the lifetime of the trustor. Also known as a living trust, this trust has a duration that is determined at the time of the trust's creation and can entail the distribution of assets to the beneficiary during or after the trustor's lifetime. The opposite of an inter-vivos trust is a testamentary trust, which goes into effect upon the death of the trustor.",investopedia,1,54.56,11.9,14.1,11.09,14.4,9.3,16.16666667,14.8
Intestate,"Intestate refers to dying without a legal will. When a person dies in intestacy, determining the distribution of the deceased's assets then becomes the responsibility of a probate court. An intestate estate is also one in which the will presented to the court was deemed to be invalid.",investopedia,1,55.24,9.5,11.9,10.55,9.9,9.36,10.33333333,11.4
Intraday Momentum Index (IMI),"The Intraday Momentum Index (IMI), is a technical indicator that combines aspects of candlestick analysis with the relative strength index (RSI) in order to generate overbought or oversold signals.",investopedia,1,25.12,17,0,16.31,20.9,13.79,22.5,21.26
Intraday Trading,"Intraday means ""within the day."" In the financial world, the term is shorthand used to describe securities that trade on the markets during regular business hours. These securities include stocks and exchange-traded funds (ETFs). Intraday also signifies the highs and lows that the asset crossed throughout the day. Intraday price movements are particularly significant to short-term or day traders looking to make multiple trades over the course of a single trading session. These busy traders will settle all their positions when the market closes.",investopedia,1,57.27,8.8,11.5,13.56,11.8,9.97,8.166666667,9.89
Intrapreneur,"An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur. However, the intrapreneur has access to the resources and capabilities of an established company.",investopedia,1,46.78,10.7,13,12.99,11.8,9.36,11,11.4
Intrapreneurship,"The term intrapreneurship refers to a system that allows an employee to act like an entrepreneur within a company or other organization. Intrapreneurs are self-motivated, proactive, and action-oriented people who take the initiative to pursue an innovative product or service. An intrapreneur knows failure does not have a personal cost as it does for an entrepreneur since the organization absorbs losses that arise from failure.",investopedia,1,32.53,14.1,14.6,14.74,15.9,10.3,14.83333333,14.22
Introducing Broker (IB),"An introducing broker (IB) is a broker in the futures markets who has a direct relationship with a client, but delegates the work of the floor operation and trade execution to another futures merchant, typically a futures commission merchant (FCM). The IB is usually affiliated with the FCM, either as an independent entity that is partnered with that merchant firm or as a direct subsidiary of that FCM.",investopedia,1,28.51,17.7,0,11.27,18.9,10.2,23,20.07
Inventory,Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale. Inventory represents one of the most important assets of a business because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders.,investopedia,1,36.63,14.6,0,14.05,17,9.48,19,16.55
Inventory Accounting,"Inventory accounting is the body of accounting that deals with valuing and accounting for changes in inventoried assets. A company's inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale. Inventory accounting will assign values to the items in each of these three processes and record them as company assets. Assets are goods that will likely be of future value to the company, so they need to be accurately valued in order for the company to have a precise valuation.",investopedia,1,48.33,12.2,14.9,11.9,13.9,8.76,15.625,13.08
Inventory Financing,The term inventory financing refers to a short-term loan or a revolving line of credit that is acquired by a company so it can purchase products to sell at a later date. These products serve as the collateral for the loan.,investopedia,1,59.13,10.1,0,8.07,9.7,8.5,12.75,12.1
Inventory Management,"Inventory management refers to the process of ordering, storing and using a company's inventory. This includes the management of raw materials, components and finished products, as well as warehousing and processing such items.",investopedia,1,37.81,12.1,0,15.66,14.7,12.11,13.25,16.3
Inventory Turnover,Inventory turnover is a financial ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell the inventory on hand.,investopedia,1,38.66,13.8,0,9.99,12.7,8.77,17.5,13.77
Inventory Write-Off,"An inventory write-off is an accounting term for the formal recognition of a portion of a company's inventory that no longer has value. An inventory write-off may be recorded in one of two ways. It may be expensed directly to the cost of goods sold (COGS) account, or it may offset the inventory asset account in a contra asset account, commonly referred to as the allowance for obsolete inventory or inventory reserve.",investopedia,1,38.66,13.8,14.6,10.22,13.3,9.21,16,13.49
Inverse Correlation,"An inverse correlation, also known as negative correlation, is a contrary relationship between two variables such that when the value of one variable is high then the value of the other variable is probably low.",investopedia,1,27.49,18.1,0,12.14,19.9,8.98,22.5,18.57
Inverse ETF,"An inverse ETF is an exchange traded fund (ETF) constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Investing in inverse ETFs is similar to holding various short positions, which involve borrowing securities and selling them with the hope of repurchasing them at a lower price.",investopedia,1,35.61,15,0,12.42,16.4,11.7,19,18.21
Inverse Head And Shoulders,"An inverse head and shoulders, also called a ""head and shoulders bottom"", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs.",investopedia,1,53.17,14.5,13.6,10.8,18.9,9,19.66666667,16.96
Inverted Yield Curve,An inverted yield curve represents a situation in which long-term debt instruments have lower yields than short-term debt instruments of the same credit quality. An inverted yield curve is sometimes referred to as a negative yield curve.,investopedia,1,52.7,10.5,0,13.58,13.4,9.68,13.25,13.89
Invested Capital,"Invested capital is the total amount of money raised by a company by issuing securities to equity shareholders and debt to bondholders, where the total debt and capital lease obligations are added to the amount of equity issued to investors. Invested capital is not a line item in the company's financial statement because debt, capital leases, and stockholder’s equity are each listed separately in the balance sheet.",investopedia,1,29.01,17.5,0,13.24,20,10.72,26.25,19.97
Investigational New Drug (IND),"“New indications” is a term used by pharmaceutical companies to refer to new evidence signifying that there may be new applications for an existing drug or procedure. This type of news is closely followed by investors, who can access such findings through the press releases issued on companies’ investor relations pages.",investopedia,1,37.13,14.4,0,13.47,16.3,12.02,18.25,18.83
Investing,"Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit. You can invest in endeavors, such as using money to start a business, or in assets, such as purchasing real estate in hopes of reselling it later at a higher price.",investopedia,1,46.61,12.8,0,9.75,13.2,10.33,15.75,15.51
Investment Advisers Act of 1940,The Investment Advisers Act of 1940 is a U.S. federal law that regulates and defines the role and responsibilities of an investment advisor/adviser.,investopedia,1,22.75,15.8,0,13.76,15.9,13.02,18.5,21.37
Investment Advisor,"An investment advisor (also known as a stock broker) is any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients' assets or by way of written publications. The precise definition of the term was established through the Investment Advisers Act of 1940.",investopedia,1,35.1,15.2,0,13.58,17.7,10.46,19.75,18.27
Investment Advisory Representative (IAR),Investment advisory representatives (IARs) are licensed and authorized personnel who work for investment advisory companies and are permitted to work with clients. The primary responsibility of an IAR is to provide investment-related advice as a financial advisor or financial planner.,investopedia,1,8.88,17,0,17.69,17.5,12.13,17.5,20
Investment Analysis,"Investment analysis is a broad term for many different methods of evaluating investments, industry sectors, and economic trends. It can include charting past returns to predict future performance, selecting the type of investment that best suits an investor's needs, or evaluating individual securities such as stocks and bonds to determine their risks, yield potential, or price movements.",investopedia,1,25.63,16.8,0,16.08,20.4,13.08,21.75,19.82
Investment Bank (IB),An investment bank is a financial services company that acts as an intermediary in large and complex financial transactions. An investment bank is usually involved when a startup company prepares for its launch of an initial public offering (IPO) and when a corporation merges with a competitor. It also has a role as a broker or financial adviser for large institutional clients such as pension funds.,investopedia,1,40.69,13.1,15.9,11.89,13.6,10.47,16,14.86
Investment Banker,"An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.Examples of investment banker employers are Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan Chase (JPM), Bank of America Merrill Lynch (BAC), and Deutsche Bank (DB).",investopedia,1,10.24,24.8,0,15.74,32.3,14.11,39,29.26
Investment Banking,"Investment banking is a specific division of banking related to the creation of capital for other companies, governments, and other entities.",investopedia,1,16.32,16.2,0,15.32,16.2,11.45,18.5,21.73
Investment Center,"An investment center is a business unit in a firm that can utilize capital to contribute directly to a company's profitability. You may compare and contrast some parallels like the terms ""profit center"" or ""cost center.""",investopedia,1,34.94,17.3,0,12.14,20.9,10.69,12.5,21.07
Investment Club,"An investment club refers to a group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships—after the members study different investments, the group decides to buy or sell based on a majority vote of the members. Club meetings may be educational and each member may actively participate in investment decisions.",investopedia,1,43.73,11.9,15.5,13.58,13.5,9.01,14.16666667,14.62
Investment Company,"An investment company is a corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (also referred to as a mutual fund). In the U.S., most investment companies are registered with and regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.",investopedia,1,39.97,13.3,16.3,11.96,14.2,9.41,16.66666667,14.96
Investment Company Act of 1940,The Investment Company Act of 1940 is an act of Congress that regulates the organization of investment companies and the activities they engage in and sets standards for the investment company industry.,investopedia,1,22.08,18.1,0,14.11,19.7,10.65,26,20.3
Investment Consultant,"An investment consultant is a financial professional who provides investors with investment products, advice, and/or planning. Investment consultants do in-depth work on formulating investment strategies for clients, helping them fulfill their needs and reach their financial goals. Many financial advisors and financial planners would be considered investment consultants.",investopedia,1,29.86,13.1,16.3,21.11,18.7,11.34,13.33333333,13.07
Investment Fund,"An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. An investment fund provides a broader selection of investment opportunities, greater management expertise, and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, exchange-traded funds, money market funds, and hedge funds.",investopedia,1,30.91,14.7,16.7,16.08,17.7,11.56,17.33333333,15.61
Investment Grade,An investment grade is a rating that signifies that a municipal or corporate bond presents a relatively low risk of default.,investopedia,1,41.7,12.7,0,11.14,12.4,12.2,15.5,17.92
Investment Horizon,Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio.,investopedia,1,55.58,11.5,0,9.12,12,9.43,15,14.6
Investment Income,"Investment income is money that is received in interest payments, dividends, capital gains realized with the sale of stock or other assets, and any other profit made through an investment vehicle. Interest earned on bank accounts, dividends received from stock owned by mutual fund holdings, and the profits on the sale of gold coins are all considered investment income. Income from long-term investments undergoes different—and often preferential—tax treatment, which varies by country and locality.",investopedia,1,37.94,14.1,16.7,15.79,18.1,10.2,18,15.83
Investment Management,"Investment management refers to the handling of financial assets and other investments—not only buying and selling them. Management includes devising a short- or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well.",investopedia,1,39.33,11.5,14.1,15.25,13.8,11.75,11.16666667,14.89
Investment Manager,"An investment manager is a person or organization that makes investment decisions about portfolios of securities on behalf of clients under the investment objectives and parameters the client has defined. An investment manager may handle all activities associated with the management of client portfolios, from day-to-day buying and selling of securities to portfolio monitoring, transaction settlement, performance measurement, and regulatory and client reporting.",investopedia,1,-2.81,21.5,0,19.85,24.6,11.21,28.75,23.39
Investment Multiplier,The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. It is rooted in the economic theories of John Maynard Keynes.,investopedia,1,41.7,12.7,0,13.23,14.1,11.45,15.5,16.02
Investment Objective,"An investment objective is a client information form used by registered investment advisors (RIAs), robo-advisors, and other asset managers that helps to determine the optimal portfolio mix for a client. An investment objective may also be filled out by an individual managing their own portfolio.",investopedia,1,31.72,14.4,0,14.74,16.3,10.72,18.75,17.89
Investment Policy Statement (IPS),"An investment policy statement (IPS) is a document drafted between a portfolio manager and a client that outlines general rules for the manager. This statement provides the general investment goals and objectives of a client and describes the strategies that the manager should employ to meet these objectives. Specific information on matters such as asset allocation, risk tolerance, and liquidity requirements are included in an investment policy statement.",investopedia,1,20.05,18.9,0,16.26,22.8,11.36,18.33333333,20.66
Investment Product,An investment product is a product offered to investors based on an underlying security or group of securities that is purchased with the expectation of earning a favorable return. Investment products are based on a wide range of underlying securities and encompass a broad range of investment objectives.,investopedia,1,5.84,24.4,0,14.81,28.1,11.28,18,25.87
Investment Property,"An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation.",investopedia,1,39.67,13.4,0,11.78,14,9.24,16,13.55
Investment Securities,"Investment securities are a category of securities—tradable financial assets such as equities or fixed income instruments—that are purchased with the intention of holding them for investment. As opposed to investment securities, in general, securities are purchased by a broker-dealer or other intermediary for quick resale.",investopedia,1,14.8,16.8,0,18.45,19.1,10.72,18.75,16.11
Investment Strategy,"The term investment strategy refers to a set of principles designed to help an individual investor achieve their financial and investment goals. This plan is what guides an investor's decisions based on goals, risk tolerance, and future needs for capital. They can vary from conservative (where they follow a low-risk strategy where the focus is on wealth protection) while others are highly aggressive (seeking rapid growth by focusing on capital appreciation).",investopedia,1,47.42,12.5,16.3,14.45,16.7,11.48,17.16666667,16.24
Investment Thesis,"An investment thesis is a reasoned argument for a particular investment strategy, backed up by research and analysis. In the financial world, an analyst may prepare a formal document outlining an investment thesis for presentation to potential investors or an investment committee.",investopedia,1,24.78,15,0,15.32,16,11.45,18,19.83
Investment Vehicle,"An investment vehicle is a product used by investors to gain positive returns. Investment vehicles can be low risk, such as certificates of deposit (CDs) or bonds, or they can carry a greater degree of risk, such as stocks, options, and futures. Other types of investment vehicles include annuities; collectibles, such as art or coins; mutual funds; and exchange-traded funds (ETFs).",investopedia,1,50.87,11.2,14.1,11.84,13.7,11.11,13.83333333,12.71
Investopedia,"Investopedia is one of the best-known sources of financial information on the internet. The website serves as a resource for investors, consumers, financial professionals, and students who seek guidance or information on various topics.",investopedia,1,37.3,12.3,0,16.18,15.3,11.45,12.5,13.86
Investor,"An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. Investors rely on different financial instruments to earn a rate of return and accomplish important financial objectives like building retirement savings, funding a college education, or merely accumulating additional wealth over time.",investopedia,1,17.17,17.9,0,15.55,19.8,10.87,22.75,19.82
Investor Relations,"The investor relations (IR) department is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs. This helps private and institutional investors make informed decisions on whether to invest in the company.",investopedia,1,40.18,13.2,0,13.06,14.8,10.72,16.25,15.22
Invisible Hand,"The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production as well as consumption, the best interest of society, as a whole, are fulfilled. The constant interplay of individual pressures on market supply and demand causes the natural movement of prices and the flow of trade.",investopedia,1,51.48,11,14.1,12.3,13,9.97,13.5,13.98
Invoice,"An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.",investopedia,1,48.64,12.1,0,12.77,14.4,11.42,14.25,14.33
Invoice Financing,"Invoice financing is a way for businesses to borrow money against the amounts due from customers. Invoice financing helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full. Businesses pay a percentage of the invoice amount to the lender as a fee for borrowing the money. Invoice financing can solve problems associated with customers taking a long time to pay as well as difficulties obtaining other types of business credit.",investopedia,1,48.13,12.3,14.2,12.6,14.4,8.9,15.25,13.98
IOTA,"IOTA (MIOTA) is a distributed ledger designed to record and execute transactions between machines and devices in the Internet of Things (IoT) ecosystem. The ledger uses a cryptocurrency called mIOTA to account for transactions in its network. IOTA’s key innovation is Tangle, a system of nodes used for confirming transactions. IOTA claims that Tangle is faster and more efficient than typical blockchains used in cryptocurrencies.",investopedia,1,46.47,10.8,13,14.38,13.3,11.49,11.125,12.67
IOU,"An IOU, a phonetic acronym of the words ""I owe you,"" is a document that acknowledges the existence of a debt.",investopedia,1,67.08,9.1,0,5.92,9,10.69,14.5,16.02
IRA Rollover,"An individual retirement account rollover is a transfer of funds from a retirement account into a traditional IRA or a Roth IRA. This can occur through a direct transfer or by a check, which the custodian of the distributing account writes to the account holder who then deposits it into another IRA account.",investopedia,1,44.58,13.6,0,10.68,14.6,8.82,16.75,14.37
Iranian Rial (IRR),"IRR is the currency abbreviation or currency symbol for the Iranian rial, Iran's official currency. The currency is issued and managed by the Central Bank of the Islamic Republic of Iran.",investopedia,1,38.82,11.7,0,11.08,10.2,11.54,12.25,13.94
Iron Butterfly,"An iron butterfly is an options trade that uses four different contracts as part of a strategy to benefit from stocks or futures prices that move within a defined range. The trade is also constructed to benefit from a decline in implied volatility. The key to using this trade as part of a successful trading strategy is forecast a time when option prices are likely to decline in value generally. This usually occurs during periods of sideways movement or a mild upward trend. The trade is also known by the nickname ""Iron Fly.""",investopedia,1,61.06,9.4,12,9.52,10,9.31,11.7,10.88
IRR Rule,"The internal rate of return (IRR) rule states that a project or investment should be pursued if its IRR is greater than the minimum required rate of return, also known as the hurdle rate.",investopedia,1,53.89,14.2,0,8.89,16.9,9.5,20,17.13
Irrational Exuberance,"Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify. The term was popularized by former Fed chair Alan Greenspan in a 1996 speech, ""The Challenge of Central Banking in a Democratic Society."" The speech was given near the beginning of the 1990s dot-com bubble, a textbook example of irrational exuberance:",investopedia,1,43.73,11.9,14.6,14.39,14.5,11.78,13.5,13.92
Irrevocable Beneficiary,An irrevocable beneficiary is a person or entity designated to receive the assets in a life insurance policy or segregated fund contract. The beneficiary must agree to any changes in the rights to compensation from these entities.,investopedia,1,27.32,14,0,13,12.6,10.53,14.25,17.13
Irrevocable Letter of Credit,"An irrevocable letter of credit (ILOC) is an official correspondence from a bank that guarantees payment for goods or services being purchased by the individual or entity, referred to as the applicant, that requests the letter of credit from an issuing bank.",investopedia,1,20.39,20.8,0,12.9,23.9,10.98,29,24.42
Irrevocable Trust,"An irrevocable trust is a type of trust where its terms cannot be modified, amended or terminated without the permission of the grantor's named beneficiary or beneficiaries. The grantor, having effectively transferred all ownership of assets into the trust, legally removes all of their rights of ownership to the assets and the trust.",investopedia,1,17.68,24,0,14.12,30.4,11.93,17.75,27.24
IRS Form 4868,Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return is an Internal Revenue Service (IRS) form for individuals who wish to extend the amount of time they have to file their tax returns.,investopedia,1,51.68,10.9,0,10.39,11.5,9.87,12.75,13.95
IRS Publication 15,"IRS Publication 15: Employer's Tax Guide is a document published by the Internal Revenue Service detailing an employer's responsibilities for filing and reporting tax information. The document covers the withholding, depositing, reporting, paying, and correcting of taxes for employees (although not for the corporation itself). IRS Publication 15 is also referred to as Circular E.",investopedia,1,19.06,15.1,17.1,16.24,16,11.72,15.16666667,17.5
IRS Publication 463,"IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses explains the expenses associated with business activities that an individual taxpayer can deduct to reduce their overall taxable income. The document primarily focuses on expenses for sole proprietors reporting business income on Schedule C. It also applies to Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with disability impairment-related work expenses who file business expense deductions on Form 2106.",investopedia,1,0.08,22.4,0,19.62,27.3,14.01,30.5,25.61
IRS Publication 519,"IRS Publication 519 is the U.S. Tax Guide For Aliens, a document the Internal Revenue Service (IRS) publishes that details the tax procedures for aliens, individuals that are not citizens of the United States. Not all aliens are subject to U.S. taxes. Resident aliens, those who have been in the country for a defined period, are subject to taxation on their worldwide income just as citizens are. Non-resident aliens are only taxed on income they earn within the U.S., as well as on certain types of international income.",investopedia,1,57.61,10.7,13.4,10.56,13.1,9.21,14.25,13.8
IRS Publication 525,"Publication 525, Taxable and Nontaxable Income, is a document published by the Internal Revenue Service (IRS) detailing what types of income taxpayers should consider taxable or nontaxable when filing tax returns.",investopedia,1,14.63,18.9,0,17.01,22.2,12.81,24.5,21.43
IRS Publication 527,"A document published by the Internal Revenue Service (IRS) that provides tax information for individuals who own residential properties that are rented out for income, either part of the year or all year. Typically, all income earned from rental properties is reported to the IRS, though the type of rental activity will alter which sections of the tax form that income is reported. IRS Publication 527 outlines how to account for property depreciation, what types of deductions can be made on rental income as well as what to do if only part of a property is rented.",investopedia,1,38.69,15.9,16.3,10.92,17.6,9.47,21.5,18.28
IRS Publication 535 (Business Expenses),IRS Publication 535 refers to the Internal Revenue Service (IRS) tax document that provides guidance on what types of business expenses are deductible when filing a tax return. IRS Publication 535 covers the rules for deducting business expenses and outlines the most common items that taxpayers deduct.,investopedia,1,47.62,12.5,0,14.74,16.5,11.86,15.75,14.51
IRS Publication 550,IRS Publication 550 is a document published by the Internal Revenue Service (IRS) that provides information on how investment income and expenses are to be treated when filing taxes. IRS Publication 550 explains what investment expenses are deductible when gains and losses from the sale of investment property are to be reported and what type of investments are considered taxable.,investopedia,1,32.57,16.2,0,14.34,19.1,11.44,22,18.67
IRS Publication 590,"IRS Publication 590, entitled ""Individual Retirement Arrangements (IRAs),"" refers to an IRS document that outlines rules for individual retirement accounts (IRAs). The document, published by the Internal Revenue Service, provides information on how to set up an IRA, how to contribute to it, how much may be contributed, how to treat distributions, and how to take tax deductions for contributions made to IRAs.",investopedia,1,31.04,16.8,0,13.99,20.4,11.21,23.75,20.85
IRS Publication 590-B,IRS Publication 590-B explains the tax implications of withdrawing money from any type of individual retirement account (IRA) before or after retirement. It specifies when you can't withdraw money without paying a penalty and when you must withdraw money.,investopedia,1,14.97,20.9,0,14.86,24.4,11.64,13.25,21.75
IRS Publication 970,"IRS Publication 970 is a document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students and families saving or paying for college. It explains the tax treatment for the most common forms of college funding, such as scholarships, fellowships and grants, and tuition reductions.",investopedia,1,11.25,24.4,0,15.57,30.7,13.91,34.5,27.46
IRS Publication 972,Publication 972 is a document published by the Internal Revenue Service (IRS) that provides guidance on determining the exact amount of the child tax credit that taxpayers can claim.,investopedia,1,33.58,15.8,0,13.53,18.1,12.15,19.5,18.5
IS-LM Model,"The IS-LM model, which stands for ""investment-savings"" (IS) and ""liquidity preference-money supply"" (LM) is a Keynesian macroeconomic model that shows how the market for economic goods (IS) interacts with the loanable funds market (LM) or money market. It is represented as a graph in which the IS and LM curves intersect to show the short-run equilibrium between interest rates and output.",investopedia,1,40.52,15.2,0,12.89,19.3,10.84,20.75,19.41
ISDA Master Agreement,"An ISDA Master Agreement is the standard document regularly used to govern over-the-counter derivatives transactions. The agreement, which is published by the International Swaps and Derivatives Association (ISDA), outlines the terms to be applied to a derivatives transaction between two parties, typically a derivatives dealer and a counterparty. The ISDA Master Agreement itself is standard, but it is accompanied by a customized schedule and sometimes a credit support annex, both of which are signed by the two parties in a given transaction.",investopedia,1,26.85,16.3,16.3,15.15,19,10,19,16.29
iShares,"A global leader in exchange-traded funds (ETFs), iShares has nearly $2 trillion invested in more than 800 different product offerings across a wide range of asset classes and investment strategies. iShares is a subsidiary BlackRock, the world's largest asset management company, and BlackRock is responsible for issuing and marketing iShares products. ",investopedia,1,10.24,24.8,0,16.49,32.2,13.81,37,26.18
Islamic Banking,"Islamic banking, also referred to as Islamic finance or shariah-compliant finance, refers to finance or banking activities that adhere to shariah (Islamic law). Two fundamental principles of Islamic banking are the sharing of profit and loss, and the prohibition of the collection and payment of interest by lenders and investors.",investopedia,1,29.18,15.4,0,14.68,17.5,10.56,18,16.4
ISM Manufacturing Index,"The ISM manufacturing index, also known as the purchasing managers' index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. It is considered to be a key indicator of the state of the U.S. economy.",investopedia,1,38.66,13.8,0,9.99,13.6,11.08,17,15.43
ISO Currency Code,"ISO currency codes are the three-letter alphabetic codes that represent the various currencies used throughout the world. When combined in pairs, they make up the symbols and cross rates used in currency trading.",investopedia,1,54.73,9.7,0,13.34,12.5,10.68,11.75,12.66
Isoquant Curve,"An isoquant curve is a concave-shaped line on a graph, used in the study of microeconomics, that charts all the factors, or inputs, that produce a specified level of output. This graph is used as a metric for the influence that the inputs—most commonly, capital and labor—have on the obtainable level of output or production.",investopedia,1,52.02,12.8,0,10.74,15.5,9.88,18.25,15.36
ISPs (Internet Service Providers),"The term Internet service provider (ISP) refers to a company that provides access to the Internet to both personal and business customers. ISPs make it possible for their customers to surf the web, shop online, conduct business, and connect with family and friends—all for a fee. ISPs may also provide other services including email services, domain registration, web hosting, and browser packages. An ISP may also be referred to as an information service provider, a storage service provider, an Internet service provider (INSP), or any combination of these three based on the services the company offers.",investopedia,1,47.12,12.7,13,12.89,15.6,9.76,15,12.1
Issue,An issue is a process of offering securities in order to raise funds from investors. Companies may issue bonds or stocks to investors as a method of financing the business.,investopedia,1,64.71,8,0,9.39,8.5,10.17,8.5,11.33
Issued Shares,"Issued shares are the subset of authorized shares that have been sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors, or the general public (as shown in the company’s annual report). Issued shares include the stock a company sells publicly to generate capital and the stock given to insiders as part of their compensation packages.",investopedia,1,39,15.8,0,12.83,19.1,9.91,23,18.43
Issuer,"An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic or foreign governments. Issuers are legally responsible for the obligations of the issue and for reporting financial conditions, material developments and any other operational activities as required by the regulations of their jurisdictions.",investopedia,1,9.89,16.6,17.9,17.29,16.8,12.89,16.16666667,21.64
Issuer Identification Numbers (IIN),"The issuer identification number (IIN) refers to the first few digits of a payment card number issued by a financial institution. They are typically the first eight digits found on a credit, debit, or another type of payment card.",investopedia,1,51.68,10.9,0,10.39,11.5,9.46,12.25,11.9
Itemized Deduction,An itemized deduction is an expense that can be subtracted from adjusted gross income (AGI) to reduce your taxable income and therefore reduce the amount of taxes you owe.,investopedia,1,50.5,13.4,0,11.33,16.3,11.06,17.5,15.74
J,"The term J refers to a designation for Nasdaq-listed stocks that specifies that the stock has voting rights. The designation appears as the fifth letter following a dot after a stock's four-letter ticker symbol. It is added to denote a shareholder vote situation. The letter J is a temporary suffix that is removed once the shareholder vote situation is resolved. Other letter designations are used to describe share classes, foreign issues, preferred issues, and a company's financial status.",investopedia,1,47.18,10.6,12.3,12.47,11.5,10.28,10.4,10.34
J-Curve,"A J Curve is an economic theory which states that, under certain assumptions, a country's trade deficit will initially worsen after the depreciation of its currency—mainly because in the near term higher prices on imports will have a greater impact on total nominal imports than the reduced volume of imports. This results in a characteristic letter J shape when the nominal trade balance is charted as a line graph.",investopedia,1,36.46,16.7,0,12.14,19.6,11.07,21.75,18.44
J-Curve Effect,"A J-curve is a trendline that shows an initial loss immediately followed by a dramatic gain. In a chart, this pattern of activity would follow the shape of a capital ""J"".",investopedia,1,64.2,8.2,0,7.48,7.6,8.99,8.75,10.07
Jack Welch,"Jack Welch was the chair and chief executive of General Electric (GE) from 1981 to 2001. Under his leadership, Welch dramatically increased the market value of GE from $14 billion to $410 billion. He had a reputation as one of the top CEOs of all time. Fortune dubbed him ""Manager of the Century"" in 1999. When Welch retired, GE awarded him a severance estimated at $420 million, the largest ever at the time. Welch died on March 1, 2020, at the age of 84.",investopedia,1,74.19,6.4,10.1,6.72,6.5,9.22,7.5,8.93
Jackpot,"A jackpot is a large windfall derived from an act of gambling. In finance, jackpots refer to large investment returns reaped over a short period of time.",investopedia,1,74.69,6.2,0,8.75,7.5,10.74,6.75,8.36
Jackson Hole Economic Symposium,"The Jackson Hole Economic Symposium is an annual symposium, sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Jackson Hole, Wyo., since 1981. Every year, the symposium focuses on an important economic issue that faces world economies. Participants include prominent central bankers and finance ministers, as well as academic luminaries and leading financial market players from around the world.",investopedia,1,41.4,12.8,15.9,14.45,15.8,11.35,15.66666667,15.4
Jakarta Stock Exchange,"The Indonesia Stock Exchange (IDX) handles securities transactions in the country of Indonesia. The primary goal of the IDX is to provide the infrastructure to enable orderly, fair, and efficient trading of securities. The IDX saw a record number of investors in 2019 and has more than 650 company listings.",investopedia,1,46.1,13,0,12.25,15.5,9.93,11.66666667,15.6
James H. Clark,"James H. Clark is a serial and successful entrepreneur and computer scientist, perhaps best known for co-founding Netscape with Marc Andreessen in 1994. Netscape Navigator was the market leader in web browsers in the early days of the internet, becoming the dominant browser in terms of usage share in the 1990s. However, because it was not free to use, it ultimately lost market share to Microsoft's free competitor, Internet Explorer. Netscape was eventually purchased by America Online (AOL) in 1998, making Clark a billionaire. Clark started Netscape with a $4.1 million investment and exited the company with a $1.2 billion payout.",investopedia,1,28.81,17.6,18.2,13.3,20.7,11.72,23.66666667,19.42
James M. Buchanan Jr.,"James M. Buchanan Jr. was an American economist and a Nobel Prize winner. Buchanan won the prize in 1986 in economics for his contributions to public choice theory. He co-founded the public choice theory with another economist, Gordon Tullock. The theory is used to analyze how economics ties in with the decisions of politicians. Buchanan explored a number of different economic schools of thought, including libertarianism and free-market thinking. He also wrote a number of books about politics and the economy.",investopedia,1,49.31,9.7,13.3,12.35,10.6,9.57,8.916666667,10.83
James Tobin,James Tobin was a Neo-Keynesian economist who received the 1981 Nobel Memorial Prize in Economic Sciences for his research on the financial system and its impact on inflation and employment.,investopedia,1,32.57,16.2,0,14.05,18.9,14.07,22,21.33
Jan Tinbergen,"Jan Tinbergen was a Dutch economist who won the first Nobel Memorial Prize in Economics in 1969, which he shared with Ragnar Frisch for their work in the development and application of dynamic models for analyzing economic processes. Tinbergen was one of the first economists to apply math to economics and is considered a pioneer in the economics field, as well as in econometrics.",investopedia,1,39,15.8,0,11.85,18,11.14,24.5,21.55
January Barometer,"The term January Barometer refers to the belief, held by some traders, that the investment performance of the S&P 500 in January can be used to predict its performance for the rest of the year.",investopedia,1,52.87,14.6,0,9.01,17.5,9.88,23.5,17.43
January Effect,"The January Effect is a perceived seasonal increase in stock prices during the month of January. Analysts generally attribute this rally to an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realized capital gains, prompt a sell-off.",investopedia,1,37.13,14.4,0,14.05,17.2,11.09,18.25,15.69
Japan Association of Securities Dealers Automated Quotation,"The Japan Association of Securities Dealers Automated Quotation (Jasdaq) is a stock exchange that forms part of the Japan Exchange Group (JPX). It is focused on emerging venture companies and, like the Nasdaq exchange, is a fully electronic trading platform.",investopedia,1,22.42,20.1,0,14.23,24.6,11.94,26,22
Japan Credit Rating Agency (JCR),The Japan Credit Rating Agency (JCR) is a Japanese financial services company that provides credit ratings on the corporate debt of Japanese companies and foreign bond issuers. The entity also publishes a variety of financial and economic information and serves as a guide for counterparty credit risk.,investopedia,1,30.7,14.8,0,14.1,16,12.87,18.25,17.91
Japan ETF,"A Japan ETF refers to an exchange-traded fund (ETF) that invests the majority of its assets in Japanese equities trading on local stock exchanges. Like other ETFs, Japan ETFs are diversified investments that have a low initial investment requirement and lower costs.",investopedia,1,37.31,18.5,0,14.52,25.4,13.61,14.5,23.47
Japan Inc.,"Japan, Inc. is a descriptor for that country’s modern, highly centralized economic system and development strategy of export-led growth. In a sense, Japan since the 1980s has been defined by a corporate culture of capitalism and export profits. Despite its rapid growth of corporatism, the country experienced prolonged periods of economic stagnation with low GDP growth and low interest rates.",investopedia,1,42.72,12.3,15.5,14.21,14.9,12.26,14.66666667,16
Japanese Government Bond (JGB),"Japanese Government Bond (JGB) is a bond issued by the government of Japan. The government pays interest on the bond until the maturity date. At the maturity date, the full price of the bond is returned to the bondholder. Japanese government bonds play a key role in the financial securities market in Japan.",investopedia,1,57.98,8.5,13,9.09,7.9,8.47,8.625,9.85
Japanese Housewives,"Japanese housewives is a colloquial term used in the foreign exchange world for the many Japanese matriarchs who resorted to currency trading in past decades. Through cultural tradition, a Japanese woman is considered the one who oversees the functions of a home, including the major financial decisions.",investopedia,1,30.7,14.8,0,14.74,16.5,10.51,18.25,18.76
Japanese Yen (JPY),"JPY is the currency abbreviation or the currency symbol for the Japanese yen (JPY), the national currency for Japan and the Republic of the Union of Myanmar. The yen is made up of 100 sen or 1000 rin and is often presented with the symbol ¥. The Meiji government originally introduced the yen as a measure to modernize the country economically.",investopedia,1,50.87,11.2,15,9.17,10.7,10.08,14.5,14.68
Jarrow Turnbull Model,"The Jarrow Turnbull model is one of the first reduced-form models for pricing credit risk. Developed by Robert Jarrow and Stuart Turnbull, the model utilizes multi-factor and dynamic analysis of interest rates to calculate the probability of default.",investopedia,1,35.27,13.1,0,14.79,14.7,13.3,14,13.92
Jean-Baptiste Say,"Jean-Baptiste Say (1767-1832) was a French classical, liberal economist and scholar. Say was born in Lyon in 1767, and had a distinguished career. He served on a government finance committee under Napoleon, taught political economy in France at the Athénée, the Conservatoire National des Arts et Metiers, and later at the College de France, where he was named as its chair of political economy.",investopedia,1,49.86,11.6,15,11.6,13.7,11.6,15,14.15
Jekyll and Hyde,"Jekyll and Hyde is a pop culture reference to a famous novel that is sometimes used to describe a stock market with a split personality. Jekyll represents the ""good"" in a market - benign, predictable and conducive to trading gains, while Hyde is the ""bad"" character who is volatile, unstable, unpredictable and causes harm to investors. Because the stock market is susceptible to the effects of the range of human emotions, Jekyll and Hyde can make frequent appearances.",investopedia,1,53.85,12.1,12.5,11.73,15.5,10.45,15.66666667,14.44
Jensen's Measure,"The Jensen's measure, or Jensen's alpha, is a risk-adjusted performance measure that represents the average return on a portfolio or investment, above or below that predicted by the capital asset pricing model (CAPM), given the portfolio's or investment's beta and the average market return. This metric is also commonly referred to as simply alpha.",investopedia,1,27.15,16.2,0,13.41,17.9,11.12,19.5,18.21
Jerome Kerviel,"Jerome Kerviel was a junior level derivatives trader for French securities firm Société Générale. He was charged with losing more than €4.9 billion in company assets by conducting a series of unauthorized and false trades between 2006 and early 2008. When company managers discovered that Kerviel had conducted tens of billions of euros worth of unauthorized trades, they rushed to close out the open positions (most of which were specialized equity arbitrage trades) and contain the extent of the fraud. Several of the trades were closed out with heavy losses due to a falling market at the time of sale.",investopedia,1,54.56,11.9,13.8,12.02,15,10.72,16,14
Jerry A. Hausman,"Jerry A. Hausman is an economics professor and director of the MIT Telecommunications Economics Research Program. Dr. Hausman's research has focused on applied microeconomics, econometrics, differentiated products, telecommunications, taxation, energy, aging, and the environment.",investopedia,1,3.46,17,0,22.5,21.3,14.23,14.5,18.56
Jesse H. Jones Graduate School Of Business,"The term Jesse H. Jones Graduate School of Business refers to Rice University's graduate school of business. Founded in 1974 and located in Houston, the school offers graduate and doctorate programs, as well as various dual degree and executive education initiatives.",investopedia,1,40.65,11,13.6,13.68,11.7,11.63,10.16666667,13.28
Jesse L. Livermore,"Jesse L. Livermore was a stock trader, who rose from a humble farming background to become a stock trader in Boston. Over the course of his career, he won and lost fortunes in many arenas. A self-made man with no formal education or trading background, Livermore focused on making money from the overall market directions and not concentrating on individual stocks. His strategies were based on a combination of price patterns and volume analysis. Livermore is most well-known for shorting the stock market right at the beginning of the Great Depression in 1929.",investopedia,1,52.6,10.5,11.6,11.37,11.7,8.97,11.5,10.88
Jewelry Floater,"A jewelry floater is a type of supplemental insurance designed to protect precious jewelry. It is often purchased alongside other forms of insurance, such as homeowner's insurance or renter's insurance. Although these types of insurance policies generally include some coverage for jewelry, jewelry floaters can expand this coverage, making them more suitable for valuable items.",investopedia,1,35.98,12.8,15.5,16.13,15.6,10.86,13.83333333,11.68
Jim Walton,"Born on June 7, 1948, in Newport, Ark., James (Jim) Carr Walton is the third and youngest son of Walmart (WMT) founder Sam Walton. The Waltons are the richest family in America, with an estimated net worth of $215 billion in 2020.",investopedia,1,75.54,7.9,0,7.02,10.3,11.82,12,9.35
Jitney,"In finance, the term jitney refers to a broker that does not have direct access to an exchange and therefore relies on another broker with exchange access in order to execute their trades.",investopedia,1,46.44,15,0,10.4,17.3,9.58,18.5,14.41
Jitter,"Jitter is an anti-skimming technique that distorts the readout of the magnetic strip by altering the speed or motion of the card as it is swiped or pulled into a card reader or ATM. Jitter is designed to make any information copied by a card skimmer unreadable, and thus unusable.",investopedia,1,54.56,11.9,0,9.35,12.8,10.88,15.5,14
JMD (Jamaican Dollar),"JMD is the currency abbreviation for the Jamaican dollar, the official currency for the island nation of Jamaica, and is subdivided into 100 cents. The currency symbol for JMD (Jamaican dollar) is J$ or JA$.",investopedia,1,45.25,11.3,0,9.74,10.6,10.37,11.75,11.57
Job Hunting Expenses,"Job-hunting expenses are expenses incurred while seeking employment. The IRS no longer allows people looking for work in their same line of business to deduct portions of their job hunt on taxes. This is currently in effect for tax periods 2018–2025 as part of the Tax Cuts and Jobs Act, which Congress signed on Dec. 22, 2017. The deduction is likely to return in 2026. Additionally, no tax breaks exist if it's your first time looking for a job.",investopedia,1,68.3,8.7,11.2,9.17,10.6,10.41,11.875,10.96
Job Lot,"In finance, the term “job lot” refers to a commodities futures contract whose denomination is smaller than the typical standard lot for that commodity. For example, the standard lot for a crude oil futures contract is 1,000 barrels per contract. Any crude oil futures contract corresponding to less than 1,000 barrels would therefore be considered a job lot.",investopedia,1,51.89,10.8,11.9,12.13,12.7,9.77,12,12.55
Job Market,The job market is the market in which employers search for employees and employees search for jobs. The job market is not a physical place as much as a concept demonstrating the competition and interplay between different labor forces. It is also known as the labor market.,investopedia,1,55.54,9.4,12.5,10.09,9.2,7.77,10.5,11.39
Job Openings and Labor Turnover Survey (JOLTS),The job openings and labor turnover survey (JOLTS) is a survey done by the United States Bureau of Labor Statistics (BLS) within the Department of Labor to help measure job vacancies.,investopedia,1,48.47,14.2,0,10.98,17.3,10.78,18.5,16.27
Jobber,"A jobber is a slang term for a market maker on the London Stock Exchange prior to October 1986. Jobbers, also called ""stockjobbers,"" acted as market makers. They held shares on their own books and created market liquidity by buying and selling securities, and matching investors' buy and sell orders through their brokers, who were not allowed to make markets. The term ""jobber"" is also used to describe a small-scale wholesaler or middleman in the retail goods trade.",investopedia,1,60.14,9.7,10.1,10.73,11.9,10.27,11.25,10.36
Jobless Claims,"Jobless claims are a statistic reported weekly by the U.S. Department of Labor that counts people filing to receive unemployment insurance benefits. There are two categories of jobless claims—initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have already been receiving unemployment benefits. Jobless claims are an important leading indicator on the state of the employment situation and the health of the economy.",investopedia,1,36.49,12.6,15.2,15.19,14.6,10.3,13.375,15.01
Jobless Recovery,A jobless recovery is a period in which the economy recovers from recession without reducing the unemployment rate.,investopedia,1,27.83,13.9,0,13.69,13.2,11.55,16,22.76
Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA),"The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) was a U.S. tax law Congress passed on May 23, 2003, which lowered the maximum individual income tax rate on corporate dividends to 15%.",investopedia,1,37.98,16.2,0,10.4,18.2,13.41,21.5,19.26
Jobs Growth,"Jobs growth is a figure measured by the Bureau of Labor Statistics (BLS) that tracks how many jobs are created in the country on a monthly basis. Jobs growth is often used as a measure of economic expansion and regarded as a litmus test for national economic health. Jobs growth figures are a core part of the BLS employment situation summary, which serves as a widely watched and reported economic indicator because of its headline figures on jobs growth and unemployment.",investopedia,1,44.07,13.8,15.5,10.74,14.9,10.43,18.16666667,16.73
Jobseeker's Allowance (JSA),The Jobseeker's Allowance (JSA) is a benefit for unemployed individuals in the U.K. who are actively seeking work. The allowance is intended to help minimize the cost of living for those seeking full-time employment. The benefit may also be available to people who work less than 16 hours per week.,investopedia,1,54.52,9.8,13,10.5,10.5,9.83,11.33333333,13.08
Johannesburg Interbank Average Rate (JIBAR),"The Johannesburg Interbank Average Rate (JIBAR) is the money market rate that is used in South Africa. The benchmark for short-term loans and instruments, the rate comes in one-month, three-month, six-month, and 12-month discount terms. The 3-month JIBAR rate is the most widely used and accepted.",investopedia,1,72.87,6.9,10.5,12,12,9.54,8.333333333,10.47
John B. Taylor,"John B. Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University and a Senior Fellow of Economics at the Hoover Institution. He is also the Director of Stanford University Introductory Economics Center. His fields of expertise include macroeconomics, monetary policy, and international economics. He is best known for his work creating an interest rate forecasting tool that came to be known as, The Taylor Rule. The Taylor Rule asserts that the real interest rate should be 1.5 times the inflation rate, based on several macroeconomic assumptions.",investopedia,1,40.18,13.2,16.8,13.99,15.6,10.54,13.6,16.56
John Bogle,"John Bogle was the founder of the Vanguard Group and a major proponent of index investing. Commonly referred to as ""Jack,"" Bogle revolutionized the mutual fund world by creating index investing, which allows investors to buy mutual funds that track the broader market. He did this with the overall intent to make investing easier and at a low cost for the average investor.",investopedia,1,50.16,11.5,14.1,10.73,12.3,10.44,14.16666667,13.48
John Elkann,"John Elkann is a global automotive industrialist who earns the title through both family connections and a lot of work for his family and his businesses. Elkann is the chair of Italian automaker Fiat Chrysler, a global automobile brand that also includes Alpha Romeo, Chrysler, Dodge, Jeep, Maserati, and Ferrari. He is also the chair of Exor, a holding company that controls Fiat Chrysler and other brands. He is also the owner of the Juventus football club, a popular sporting team in Turin, Italy.",investopedia,1,58.62,10.3,12.6,10.62,12.4,10.13,13.25,11.73
John F. Nash Jr.,"John F. Nash, Jr., was an American mathematician who won the 1994 Nobel Prize in Economics, along with John Harsanyi and Reinhard Selten, for his development of the mathematical foundations of game theory. Nash was also a pioneer in the study of differential geometry and partial differential equations. He also developed an equilibrium theory known as the Nash Equilibrium (of which the prisoner's dilemma is a well-known example).",investopedia,1,31.51,14.5,16.7,13.06,15.2,10.57,17,16.73
John Maynard Keynes,"John Maynard Keynes was an early 20th-century British economist, known as the father of Keynesian economics. His career included academic roles and government service.",investopedia,1,42.38,10.3,0,15.94,13,12.78,8.5,14.8
John R. Hicks,"Sir John R. Hicks was a British neo-Keynesian economist who received the 1972 Nobel Memorial Prize in Economics, along with Kenneth Arrow, for his advancement of general equilibrium theory and welfare theory. During his career, Hicks became well known for his contributions to labor economics, utility and price theory, macroeconomics, and welfare economics.",investopedia,1,36.59,12.6,15.9,14.79,14.6,11.07,13.83333333,14.63
John Stuart Mill,"John Stuart Mill was a philosopher, an economist, a senior official in the East India Company and a son of James Mill. Mill is most well-known for his 1848 work, ""Principles of Political Economy,"" which combined the disciplines of philosophy and economics and advocated that population limits and slowed economic growth would be beneficial to the environment and increase public goods. He is also known for his earlier work, ""System of Logic,"" which outlined the methods of science and how they can be applied to social mechanics.",investopedia,1,27.32,20.3,0,12.32,24.4,11.96,19.83333333,24.3
Johnson School at Cornell University,"The Samuel Curtis Johnson Graduate School of Management—often referred to simply as “Cornell Johnson”—is a graduate business school based at Cornell University in Ithaca, New York. Originally founded in 1946, it received its current name following a $20 million gift by the family of businessman and philanthropist, Samuel Curtis Johnson.",investopedia,1,37.64,14.2,0,15.84,18.3,11.19,17,14.8
Joint,Joint is a legal term describing a transaction or agreement where two or more parties act in unison.,investopedia,1,70.13,8,0,8.87,9.3,10.67,11,11.64
Joint Account,"A joint account is a bank or brokerage account shared between two or more individuals. Joint accounts are most likely to be used by relatives, couples, or business partners who have a level of familiarity and trust with each other. It typically allows anyone named on the account to access funds within it. There are multiple ways accounts can be established, each with its own implications for how money or assets can be accessed within the account or how the contents of the account are handled after one of the joint holders passes away.",investopedia,1,56.08,11.3,11.2,10.16,12.7,9,13.75,12.8
Joint and Survivor Annuity,"A joint and survivor annuity, also known as a “joint-life annuity,” is an insurance product for couples that continues to make regular payments as long as one spouse lives. Annuities are generally used to provide a steady stream of income during retirement. In the case of a joint and survivor annuity, both spouses have guaranteed coverage. Such plans sometimes include a third annuitant, who may receive the balance of a preset minimum number of payments if both spouses die early. This beneficiary is often a child of the couple who purchased the annuity.",investopedia,1,47.83,12.4,14.2,11.55,13.9,9.38,15.375,14.48
Joint Bond,"A joint bond is sold with a guarantee of the payment of principal and interest by at least two parties. In the case of default by the issuer, the bondholders have the right to claim repayment by any and all of the issuing institutions, corporations, or individuals. This shared responsibility reduces the risk to the investor but also generally means a lower rate of return on the investment.",investopedia,1,48.43,12.1,14.6,10.33,12.5,10.1,15.33333333,16.14
Joint Credit,"The term joint credit refers to any type of credit facility that is issued to two or more people based on their combined incomes, assets, and credit histories. The parties involved share everything about the debt including the credit limit and the responsibility to repay it back to the lender. Joint credit can be used when one individual has little to no credit or a bad credit report, and when two or more people need access to a large credit limit that they wouldn't qualify for individually.",investopedia,1,42.04,14.6,12.5,10.17,15.3,9.07,17.16666667,14.82
Joint Endorsement,A joint endorsement can be required on a check presented for deposit or cashing that has been made out to two or more individuals. The purpose of the joint endorsement is to prevent one individual from depositing or cashing a check without the knowledge or permission of the other person to whom the check is made out.,investopedia,1,51.01,13.2,0,9.58,14.5,8.37,17.75,15.61
Joint Liability,"Joint liability denotes the obligation of two or more partners to pay back a debt or be responsible for satisfying a liability. A joint liability allows parties to share the risks associated with taking on debt and to protect themselves in the event of lawsuits. An individual subject to joint liability may be referred to as ""jointly liable.""",investopedia,1,34.97,13.2,13,10.79,11.5,9.77,12.66666667,11.86
Joint-Life Payout,"The term joint-life payout refers to a payment structure for pensions and retirement plans in which a surviving spouse will continue to receive income after the account holder dies. That contrasts with a single-life payout, where payments end with the death of the account holder. These two payout options are also known as joint-and-survivor and single-life annuities.",investopedia,1,60.65,9.5,10.5,13.63,13.9,8.73,11.16666667,10.41
Joint Life with Last Survivor Annuity,A joint life with last survivor annuity is an insurance product that provides an income for life to both partners in a marriage.,investopedia,1,65.05,9.9,0,9.52,11.8,9.58,13.5,12.68
Joint Owned Property,Joint owned property is any property held in the name of two or more parties. These two parties could business partners or another combination of people who have a reason to own property together. The matrimonial status of joint ownership of assets is when the two parties are husband and wife.,investopedia,1,54.22,9.9,12.5,9.86,9.6,7.58,11.16666667,9.94
Joint Probability,Joint probability is a statistical measure that calculates the likelihood of two events occurring together and at the same point in time. Joint probability is the probability of event Y occurring at the same time that event X occurs.,investopedia,1,43.22,12.1,0,11.43,11.9,9.06,14.25,12.93
Joint Return,"A joint return is a tax return filed with the Internal Revenue Service (IRS) on the new, simplified Form 1040 (as of 2018) by two married taxpayers whose filing status is married filing jointly (MFJ) or by a widowed taxpayer whose filing status is Qualifying Widow or Widower (QW). A joint return allows these taxpayers to combine their tax liability and report their income, deductions, and credits on the same joint return.",investopedia,1,34.94,17.3,0,11.04,19.9,10.69,22.5,18.84
Joint Return Test,The joint return test is one of the IRS tests that potential dependents must pass in order to be claimed as such by another taxpayer.,investopedia,1,71.48,9.5,0,8.54,12,9.3,16.5,14.8
Joint-Stock Company,"The modern corporation has its origins in the joint-stock company. A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased.",investopedia,1,63.19,8.5,0,11.08,10.8,9.24,8.75,7.81
Joint Supply,"Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef, and hide. Sheep can be utilized for meat, milk products, wool, and sheepskin. If the supply of cows increases, so will the joint supply of dairy and beef products.",investopedia,1,72.66,7,9.5,9.1,8.8,9.24,8,9.43
Joint Tenancy,"The term joint tenancy refers to a legal arrangement in which two or more people own a property together, each with equal rights and obligations. Joint tenancies can be created by married and non-married couples, friends, relatives, and business associates. This legal relationship creates what is known as a right of survivorship so if one owner dies, their interest in the property is directly passed on to the surviving party(s) without having to go through probate or court system.",investopedia,1,44.78,13.5,16.3,12.07,16,9.94,18.5,17.1
Joint Tenants in Common (JTIC),"The term joint tenants in common (JTIC) refers to a legal relationship in which two or more people own a piece of property or another asset where no rights of survivorship are afforded to any of the account holders. If one owner dies, the surviving owner doesn't necessarily acquire the rights of the deceased owner. JTIC gives individuals the opportunity to own a piece of property and share the costs associated with it.",investopedia,1,46.81,12.8,14.1,10.28,13.3,9.6,15.83333333,14.65
Joint Tenants with Right of Survivorship (JTWROS),The term joint tenant with the right of survivorship (JTWROS) refers to a legal ownership structure involving two or more parties for any type of financial account or another asset. Each tenant has an equal right to the account's assets and is afforded survivorship rights if one of the account holder(s) dies. A surviving member inherits the total value of the other member's share of property upon the death of that other member.,investopedia,1,55.27,11.6,13.6,10.8,13.9,9.82,15.5,14.1
Joint Venture (JV),A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.,investopedia,1,68.6,8.5,0,8.88,10.1,9.06,11.75,11.9
Jointly and Severally,Jointly and severally is a legal term that is used to describe a partnership or any other group of individuals in which each individual named shares responsibility equally.,investopedia,1,26.14,16.6,0,12.83,17,10.66,19,18.34
Jones Act,"The Jones Act is a federal law that regulates maritime commerce in the United States. The Jones Act requires goods shipped between U.S. ports to be transported on ships that are built, owned, and operated by United States citizens or permanent residents. The Jones Act is Section 27 of the Merchant Marine Act of 1920, which provided for the maintenance of the American merchant marine.",investopedia,1,57.91,10.6,13.6,11.2,13.1,10.54,14.16666667,14.22
Jordanian Dinar (JOD),"The national currency of Jordan is the Dinar. The currency abbreviation or currency symbol for the Jordanian Dinar is denoted by JOD. The dinar has smaller denominations or subunits. In particular, one dinar is equal to 10 dirhams, 100 qirshes, and 1,000 fils. The dinar is also circulated on Israel's West Bank.",investopedia,1,44,9.7,11.6,9.25,7.4,10.83,6.4,11.08
Josef Ackermann,"Josef Ackermann (1948- ) is a Swiss banker who served as CEO and chair of Deutsche Bank (2002-2012). From 2014-2019, he served as chair of the Bank of Cyprus. He has also served as a member of the Group of Thirty (G30), a Washington, D.C.-based group of top international economists and financiers. He also held a seat on the steering committee of the Bilderberg Group.",investopedia,1,80.62,6,9.5,8.35,9,10.1,8.375,9.53
Joseph Effect,The Joseph Effect is a term derived from the Old Testament story about the Pharaoh’s dream as recounted by Joseph. The vision led the ancient Egyptians to expect a crop famine lasting seven years to follow seven years of a bountiful harvest.,investopedia,1,67.08,9.1,0,10.5,11.8,9.57,12,11.26
Joseph Schumpeter,"Joseph Alois Schumpeter (1883-1950) was an Austrian-trained economist, economic historian, and capitalist. He is regarded as one of the 20th century's greatest intellectuals. Schumpeter is best known for his theories on business cycles and capitalist development and for introducing the concept of entrepreneurship. For Schumpeter, the entrepreneur was the cornerstone of capitalism (because the vital force behind capitalism is innovation).",investopedia,1,22.41,13.9,15.2,17.68,16.1,11.75,12,16.67
Joseph Stiglitz,"Joseph Stiglitz is an American New Keynesian economist and winner of the 2001 Nobel Memorial Prize in Economics for his research on information asymmetry. During the Clinton administration, Stiglitz was the chair of the President’s Council of Economic Advisers, (CEA.) He is also a former senior vice president and chief economist of the World Bank, notably fired for offering a dissenting view about World Bank policy during the 1999 Seattle WTO riots.",investopedia,1,38.66,13.8,16.3,13.12,15.6,11.63,17.33333333,17.38
Journal,"A journal is a detailed account that records all the financial transactions of a business, to be used for the future reconciling of accounts and the transfer of information to other official accounting records, such as the general ledger. A journal states the date of a transaction, which accounts were affected, and the amounts, usually in a double-entry bookkeeping method.",investopedia,1,41.03,15,0,13.18,18.4,10.39,21,18.67
Judge Business School,"The Cambridge Judge Business School is the graduate business school at Cambridge University, located in Cambridge in the United Kingdom. Founded in 1990, it is widely regarded as one of the most prestigious business schools in the world.",investopedia,1,52.19,10.7,0,12.65,12.8,8.73,12,12.86
Judgment,"Judgment is a court decision, spelled out in a court order, that adjudicates a dispute between two parties by determining the rights and obligations of each party.",investopedia,1,44.07,13.8,0,11.78,15.9,10.24,17.5,16.73
Judgment Lien,"A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor's real or personal property if the debtor fails to fulfill his or her contractual obligations. This lien may be made against an individual or business and allows the creditor to access assets such as the debtor's business, personal property, and real estate to satisfy the judgment.",investopedia,1,38.49,16,0,10.86,17.7,10.11,21.75,17.92
Judgment Proof,"Judgment proof is a description of a person who does not have enough assets for a creditor to seize when a court order requires debt repayment. A debtor who is broke and unemployed can be considered judgment proof, as can a debtor who only has certain legally protected types of assets or income.",investopedia,1,61.5,11.3,0,9.58,13.7,9.42,16.25,15.13
Judgmental Credit Analysis,Judgmental credit analysis is a method of approving or denying credit based on the lender's judgment rather than on a particular credit scoring model. Judgmental credit analysis entails evaluating the borrower’s application and using prior experience dealing with similar applicants to determine credit approval. This process avoids using any algorithms or empirical processes to determine approvals.,investopedia,1,18.65,15.3,16.7,18.04,16.9,13.02,15,17.48
Judicial Foreclosure,Judicial foreclosure refers to foreclosure proceedings on a property in which a mortgage lacks a power of sale clause and so proceeds through the courts.,investopedia,1,54.56,11.9,0,12.71,15.4,11.19,17.5,16.4
Judo Business Strategy,A judo business strategy is a plan for managing a company by using its speed and agility to mitigate the effect of its competitors. The strategy anticipates and leverages changes in the market through new product offerings. The judo business strategy consists of three components:,investopedia,1,47.79,10.3,13.6,12.29,10.9,9.64,10.83333333,12.22
Julian Robertson,"Julian Robertson is an American investor and former hedge fund manager best known for founding Tiger Management in 1980, which grew to be one of the most prominent hedge funds of its generation. Robertson closed the doors at Tiger in 2000 and has since been active in mentoring younger hedge fund managers, and philanthropic ventures focusing on higher education and medical research. During the 1980s and the early 90s, Robertson was often referred to as the “Father of Hedge Funds” and the “Wizard of Wall Street.”",investopedia,1,44.75,17.7,0,12.67,24,11.28,26.5,20.92
Jumbo CD,"A jumbo certificate of deposit is a CD that requires a higher minimum balance obligation than that required by traditional CDs. In return, the jumbo CD pays a higher rate of interest. A CD is a type of savings account that pays fixed or variable interest in exchange for depositors leaving their funds in the account until a specified date of maturity.",investopedia,1,50.46,11.4,13,9.57,11,9.76,13.33333333,13.44
Jumbo Loan,"A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications. These kinds of mortgages have gained traction as the housing market continues to recover following the Great Recession.",investopedia,1,40.38,13.2,14.6,14.05,15.5,12.02,15.125,15.66
Jumbo Pool,A jumbo pool is a pass-through Ginnie Mae II mortgage-backed security (MBS) that is collateralized by multiple-issuer pools. These pools combine mortgage loans with similar characteristics and are more massive than single-issuer pools. The mortgages contained in jumbo pools are more diverse on a geographical basis than are those in single-issuer pools.,investopedia,1,45.46,11.2,13,15.31,14.9,11.17,11.66666667,11.54
Jumpstart our Business Startups Act (JOBS),"The Jumpstart Our Business Startups (JOBS) Act is a piece of U.S. legislation that was signed into law by President Barack Obama on April 5, 2012, that loosens regulations instituted by the Securities And Exchange Commission (SEC) on small businesses. It lowers reporting and disclosure requirements for companies with less than $1 billion in revenue, and allows advertising of securities offerings. It also allows greater access to crowd-funding, and greatly expands the number of companies that can offer stock without going through SEC registration.",investopedia,1,34.6,15.4,16.7,14.34,18.9,11.79,19.66666667,17.87
Junior Accountant,"A junior accountant maintains and compiles financial reports and statements in compliance with government regulations and requirements. The junior accountant may analyze balance sheets, manage general ledger accounts, update financial statements, maintain accounts receivable and accounts payable, pay monthly payroll, and prepare financial reports. Accountants, auditors, and junior auditors typically work full-time. Overtime hours may be required during tax season or at the end of the fiscal year.",investopedia,1,28.84,13.5,14.6,18.5,17.2,10.98,12.5,12.68
Junior Capital Pool (JCP),A junior capital pool (JCP) is a corporate capital structure that allows early-stage startups to sell shares in the company before actually establishing a line of business. This form of company financing is a Canadian invention and is permitted only in Canada.,investopedia,1,33.24,13.8,0,12.3,13.6,9.57,16,15.07
Junior Company,A junior company is a small company that is developing or seeking to develop a natural resource deposit or field. A junior company is like a startup in that it is either looking for funding to help it grow or it is looking for a much larger company to buy it out.,investopedia,1,62.01,11.1,0,6.8,11,7.66,16.5,12.71
Junior Debt,"Junior debt refers to bonds or other forms of debt issued with a lower priority for repayment than other, more senior debt claims in the case of default. Because of this, junior debt tends to be riskier for investors, and thus carries higher interest rates than more senior debt from the same issuer.",investopedia,1,61.5,11.3,0,9.58,13.9,10.91,14.75,12.86
Junior Equity,Junior equity is stock issued by a company that ranks at the bottom of the priority ladder in terms of ownership structure. Common stock is often referred to as junior equity because it is subordinate to preferred stock.,investopedia,1,43.73,11.9,0,10.33,10.8,9.15,12.5,11.81
Junior Mortgage,"A junior mortgage is a mortgage that is subordinate to a first or prior (senior) mortgage. A junior mortgage often refers to a second mortgage, but it could also be a third or fourth mortgage (e.g. home equity loans or lines of credit (HELOCs)). In the case of a foreclosure, the senior (first) mortgage will be paid down first.",investopedia,1,68.4,8.6,8.8,7.78,10,8.09,10.83333333,9.91
Junior Security,A junior security is one that has a lower priority claim than other securities with respect to the income or assets of its issuer.,investopedia,1,38.66,13.8,0,8.65,11.6,10.09,15,14.6
Junk Bond,Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments. A bond is a debt or promise to pay investors interest payments along with the return of invested principal in exchange for buying the bond. Junk bonds represent bonds issued by companies that are financially struggling and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.,investopedia,1,46.4,12.9,14.6,11.84,14.5,9.56,16.33333333,15.29
Junk Fees,Junk fees are a series of charges that a lender imposes at the closing of a mortgage. These charges are often unexpected by the borrower and not clearly explained by the lender. This surprise factor can lead to the impression that these fees are excessive and tacked on to other legitimate closing costs without good reason.,investopedia,1,60.95,9.4,11.2,10.27,10.5,9.36,11.33333333,11.77
Juris Doctor (JD),"The American law degree, called a Juris Doctor (JD), is a three-year professional degree. Until the latter half of the 20th century, the degree was called a Bachelor of Laws (LLB). However, due to the length of study required in the United States to attain a law degree, the name was changed to reflect its status as a professional degree. A J.D. degree confers recognition that the holder has a professional degree in law.",investopedia,1,61.16,9.3,11.2,8.88,10.1,8.82,11.25,9.56
Jurisdiction Risk,"Jurisdiction risk refers to the risk that arises when operating in a foreign jurisdiction. This risk can come by simply doing business or by lending money in another country. In recent times, jurisdiction risk has focused increasingly on banks and financial institutions that are exposed to the volatility that some of the countries where they operate may be high-risk areas for money laundering and terrorism financing.",investopedia,1,40.69,13.1,15,13.46,14.9,10.47,15.33333333,14.86
Just Compensation,"Just compensation refers to the compensation individuals receive when their property gets seized by the government for public use. For example, when the national highway system was constructed in the 1950s, many homeowners had their property seized because the government needed the land to build the interstate highway system.",investopedia,1,38.15,14,0,15.55,17.6,9.36,18.25,16.33
Just In Case (JIC),Just in case (JIC) is an inventory strategy where companies keep large inventories on hand. This type of inventory management strategy aims to minimize the probability that a product will sell out of stock. A company that uses this strategy typically has difficulty predicting consumer demand or experiences large surges in demand at unpredictable times. A company practicing this strategy essentially incurs higher inventory holding costs in return for a reduction in the number of sales lost due to sold-out inventory.,investopedia,1,33.95,13.6,16.8,13.75,14.3,10.3,15.875,15.53
Just In Time (JIT),"The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies employ this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory costs. This method requires producers to forecast demand accurately.",investopedia,1,27.83,13.9,16.3,18.33,17.5,12.42,14.33333333,16.09
Just Say No Defense,"A ""just say no"" defense is a strategy employed by boards of directors to discourage hostile takeovers by simply refusing to negotiate and rejecting outright whatever the prospective buyer might offer.",investopedia,1,31.55,16.6,0,14.92,20.2,12.81,22.5,21.43
Justified Wage,"A justified wage refers to an income level determined by market dynamics, work experience, education, and skill. A justified wage is the wage level that is high enough to attract workers but low enough to enable employers to offer employment. The divergence between a justified wage and the legal minimum wage may depend on several factors including the state of the economy and level of unemployment.",investopedia,1,40.69,13.1,15.9,11.72,13.5,9.51,16,16.07
K,K is added to the end of a Nasdaq stock ticker when the shares offer no voting rights. The letter K is one of many Nasdaq ticker symbol extensions that tell investors various things about that particular stock.,investopedia,1,49.83,15.8,0,9.88,19.4,10.92,22,18.36
K-Percent Rule,The K-Percent Rule was a proposal by economist Milton Friedman that the central bank should increase the money supply by a constant percentage every year.,investopedia,1,46.1,13,0,12.71,15.6,11.82,15.5,14.8
K-Ratio,"The K-ratio is a valuation metric that examines the consistency of an equity's return over time. The data for the ratio is derived from a value-added monthly index (VAMI), which uses linear regression to track the progress of a $1,000 initial investment in the security being analyzed.",investopedia,1,39.16,13.6,0,11.26,14.3,12.53,15.75,16.21
Kagi Chart,"The Kagi chart is a specialized type of technical analysis developed in Japan in the 1870s. It uses a series of vertical lines to illustrate general levels of supply and demand for certain assets, including the price movement of rice, a core Japanese agricultural product. Thick lines are drawn when the price of the underlying asset breaks above the previous high price and is interpreted as an increase in demand for the asset. Thin lines are used to represent increased supply when the price falls below the previous low.",investopedia,1,48.84,12,14.2,11.03,12.8,10.6,14.875,14.76
Kairi Relative Index,"The Kairi Relative Index is a metric that traders use to indicate when it is time to buy or sell an asset. It measures the deviation of the price from the simple moving average (SMA) of that asset's price over a period of time, typically 10 to 20 days.",investopedia,1,63.53,10.5,0,6.68,10.6,10.33,15.25,14.7
Kaizen,"Kaizen is a Japanese term meaning ""change for the better"" or ""continuous improvement."" It is a Japanese business philosophy regarding the processes that continuously improve operations and involve all employees. Kaizen sees improvement in productivity as a gradual and methodical process.",investopedia,1,23.73,13.4,15.5,16.23,13.9,10.86,11.5,17.19
Kamikaze Defense,A Kamikaze defense is a defensive strategy sometimes resorted to by a company's management to prevent a takeover by another company.,investopedia,1,33.24,13.8,0,13.11,14.2,10.69,17.5,17.92
Kanban,"Kanban is an inventory control system used in just-in-time (JIT) manufacturing. It was developed by Taiichi Ohno, an industrial engineer at Toyota, and takes its name from the colored cards that track production and order new shipments of parts or materials as they run out. Kanban is the Japanese word for sign, so the kanban system simply means to use visual cues to prompt the action needed to keep a process flowing.",investopedia,1,55.58,11.5,12.5,10.33,13.4,10.53,14.66666667,13.49
Kangaroo Bond,"A kangaroo bond is a type of foreign bond issued in the Australian market by non-Australian firms and is denominated in Australian currency. The bond is subject to the securities regulations of Australia. A kangaroo bond is also known as a ""matilda bond.""",investopedia,1,56.96,8.9,11.2,10.03,9,9.49,8.166666667,10.37
Kangaroos,Kangaroo is a slang term used to describe the Australian stocks that comprise the country’s benchmark All-Ordinaries Index. The index consists of stocks of the most actively traded Australian companies.,investopedia,1,47.79,10.3,0,15.01,13.2,11.22,8.5,11.33
Kappa,"Kappa is the measurement of an option contract's price sensitivity to changes in the volatility of the underlying asset. Volatility accounts for recent changes in price, historical changes in price, and future price moves. For a trading instrument, like an option, volatility is intended to capture the amount and speed at which the price moves up and down.",investopedia,1,50.5,13.4,0,12.72,17.6,9.98,12.66666667,16.43
Karl Marx,"Karl Marx (1818-1883) was a philosopher, author, social theorist, and economist. He is famous for his theories about capitalism and communism. Marx, in conjunction with Friedrich Engels, published The Communist Manifesto in 1848; later in life, he wrote Das Kapital (the first volume was published in Berlin in 1867; the second and third volumes were published posthumously in 1885 and 1894, respectively), which discussed the labor theory of value.",investopedia,1,48.13,12.3,14.6,13.76,16.3,12.33,15.5,16.16
Katie Couric Clause,"The Katie Couric Clause was a slang term to refer to a controversial rule that the Securities and Exchange Commission (SEC) considered implementing in 2006, known formally as the Executive Compensation and Related Party Disclosure clause.",investopedia,1,18.02,19.7,0,15.68,23.4,12.88,28,25.51
Kazakhstan National Fund,The Kazakhstan National Fund is a sovereign wealth fund for Kazakhstan that is operated by the National Bank of the Republic of Kazakhstan.,investopedia,1,48.13,12.3,0,12.25,14,8.9,16.5,16.16
KBW Bank Index,"The KBW Bank Index is a benchmark stock index of the banking sector. The index was developed by the investment bank Keefe, Bruyette and Woods, which specializes in the financial sector. It includes a weighting of 24 banking stocks selected as indicators of this industry group. The stocks represent large U.S. national money center banks, regional banks, and thrift institutions.",investopedia,1,51.18,11.1,14.1,12.88,13.9,11.47,13.66666667,15.33
Keep and Pay,"Keep and pay refers to a type of bankruptcy exemption. It lets a person keep an asset such as a house or car, provided that the individual continues to make payments.",investopedia,1,64.2,8.2,0,7.31,7,9.5,10.25,12.65
Keepwell Agreement,A keepwell agreement is a contract between a parent company and its subsidiary to maintain solvency and financial backing throughout the term set in the agreement. Keepwell agreements are also known as comfort letters.,investopedia,1,54.22,9.9,0,13.63,12.7,9.59,9,9.15
Keiretsu,"Keiretsu is a Japanese term referring to a business network made up of different companies, including manufacturers, supply chain partners, distributors, and occasionally financiers. They work together, have close relationships, and sometimes take small equity stakes in each other, all the while remaining operationally independent. Translated literally, keiretsu means “headless combine.""",investopedia,1,20.38,14.6,16.3,19.72,18.5,11.29,13.83333333,17.78
Kelley School of Business,"The Kelley School of Business, the business college of Indiana University, offers both undergraduate and graduate programs in many fields, including finance, accounting, marketing, and management. It is constantly ranked among the top 25 business schools by U.S. News and World Report.",investopedia,1,48.81,9.9,13,14.43,12.9,11.47,9,14.17
Kellogg School of Management,"The term Kellogg School of Management refers to the graduate business school of Northwestern University. The institution was founded in 1908 and is located in Evanston, Illinois. The school is known for its focus on interdisciplinary learning and international exchange opportunities. The school's Master of Business Administration (MBA) is very well respected and is commonly included among the 10 best programs in the United States by leading publications such as The Economist, Forbes, and U.S. News.",investopedia,1,37.34,14.3,15.9,14.92,17.9,11.33,17.66666667,18.01
Kelly Criterion,"The Kelly criterion is a mathematical formula relating to the long-term growth of capital developed by John L. Kelly, Jr. The formula was developed by Kelly while working at AT&T's Bell Laboratories. The formula is currently used by gamblers and investors for risk and money management purposes, to determine what percentage of their bankroll/capital should be used in each bet/trade to maximize long-term growth.",investopedia,1,32.94,14,16.7,13.34,15,10.37,16.33333333,16.02
Keltner Channel,Keltner Channels are volatility-based bands that are placed on either side of an asset's price and can aid in determining the direction of a trend.,investopedia,1,54.56,11.9,0,10.86,14.2,10.56,15.5,13.2
Kenneth Arrow,"Kenneth Arrow was an American neoclassical economist who won the Nobel Memorial Prize in Economics along with John Hicks in 1972 for his contributions to general equilibrium analysis and welfare economics. Arrow's research has also explored the social choice theory, endogenous growth theory, collective decision making, the economics of information and the economics of racial discrimination, among other topics.",investopedia,1,16.15,18.3,0,17.53,21.7,12.06,24.25,20.61
Kenneth I. Chenault,"Kenneth I. Chenault is a business executive who works in the financial services industry. Chenault is best known for the time he spent as chair and chief executive officer (CEO) of American Express (AXP). Chenault started with the company in 1981, where he moved up the ranks to lead the company, becoming one of the first African Americans to lead a major company. He left the company after 37 years and joined venture capital firm General Catalyst in 2018. He also sits on the board of a number of other companies, including Airbnb and Berkshire Hathaway.",investopedia,1,60.45,9.6,13.7,9.86,10.8,9.36,13,10.6
Kenney Rule,"Kenney rule refers to a ratio that sets a target of unearned premiums to an insurer's policyholders’ surplus of 2-to-1. Developed by Roger Kenney, it helps determine and reduce the risk of an insurance company's insolvency. The rule is commonly used by companies that write property and casualty insurance. Regulators can use the Kenney rule to an insurer's ability to pay out claims and remain solvent.",investopedia,1,46.27,10.9,14.6,11.25,10.9,11.39,12.25,15.08
Keogh Plan,"A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or a defined-contribution plan, although most plans are set as the latter. Contributions are generally tax-deductible up to a certain percentage of annual income, with applicable absolute limits in U.S. dollar terms, which the Internal Revenue Service (IRS) can change from year to year.",investopedia,1,29.89,15.1,16.3,14.39,17.2,11.33,17.5,17.39
KES (Kenyan Shilling),"The Kenyan Shilling (KES) is the official currency used for the Republic of Kenya shilling used in Kenya, the Sudan, and Somalia. The shilling is further divided into 100 cents. Prices often include the abbreviation KSh, as in “100 KSh” to refer to 100 shillings. KES is the foreign exchange (FX) trading symbol",investopedia,1,74.9,6.1,10.1,9.21,8.3,10.85,7.125,9.85
Key Currency,"A key currency refers to a type of money which is stable, does not fluctuate much, and provides the foundation for exchange rates for international transactions. Because of their global use, key currencies tend to set the value of other currencies. Also, these currencies tend to have a stable valuation over time. A key currency usually comes from a country that is financially strong, economically stable and developed, and one that is involved in the global market.",investopedia,1,45.39,13.3,15.5,12.02,15.6,8.81,13.125,15.99
Key Employee,"A key employee is an employee with major ownership and/or decision-making role in the business. Key employees are usually highly compensated either monetarily or with benefits, or both. Key employees may also receive special benefits as an incentive both to join the company and to stay with the company.",investopedia,1,38.01,12,15.5,12,11.3,8.31,12.83333333,13.87
Key Money,"Key money is a fee paid to a manager, a landlord, or even a current tenant to secure a lease on a residential rental property. The term is sometimes used to refer to a security deposit. However, in some competitive rental markets, key money is simply a gratuity or a bribe.",investopedia,1,62.68,8.7,11.9,7.02,7.7,9.43,10.83333333,10.72
Key Performance Indicators (KPI),Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance.,investopedia,1,35.27,13.1,0,16.88,16.8,12.06,15.5,18.13
Key Person Insurance,"Key person insurance is a life insurance policy that a company purchases on the life of an owner, a top executive, or another individual considered critical to the business. The company is the beneficiary of the policy and pays the premiums. This type of life insurance is also known as ""key man (or ""keyman"") insurance,"" ""key woman insurance,"" and ""business life insurance.""",investopedia,1,33.54,13.7,17.1,10.62,12.8,7.72,16.33333333,14.09
Key Rate,The key rate is the specific interest rate that determines bank lending rates and the cost of credit for borrowers. The two key interest rates in the U.S. are the discount rate and the federal funds rate.,investopedia,1,69.62,8.1,0,8.41,9.2,9.68,12.25,12.81
Key Rate Duration,"Key rate duration measures how the value of a debt security or a debt instrument portfolio, generally bonds, changes at a specific maturity point along the entirety of the yield curve. When keeping other maturities constant, the key rate duration is used to measure the sensitivity in a debt security's price to a 1% change in yield for a specific maturity.",investopedia,1,32.06,16.4,0,10.98,16.9,10.07,22.25,19.41
Key Ratio,"Key ratio is the name given to any financial ratio that's considered particularly effective at measuring, illustrating, and summarizing a company's financials in relation to its competitors or peers.",investopedia,1,8.2,19.3,0,16.49,20.9,12.15,25.5,26.77
Keynesian Economics,"Keynesian economics is a macroeconomic economic theory of total spending in the economy and its effects on output, employment, and inflation. Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynesian economics is considered a ""demand-side"" theory that focuses on changes in the economy over the short run. Keynes’s theory was the first to sharply separate the study of economic behavior and markets based on individual incentives from the study of broad national economic aggregate variables and constructs.",investopedia,1,31.41,14.5,18.8,15.26,16.6,11.01,18.875,17.03
Keynesian Put,"A Keynesian Put is the expectation that markets and the economy will be supported by fiscal policy stimulus measures. Fiscal policy stimulus, including reductions in taxes and increased government spending, are typically designed to boost the real economy, although financial markets also benefit from strengthening economic growth.",investopedia,1,13.78,17.2,0,17.93,19.2,12.53,20.25,20.46
Keystone XL Pipeline,"The Keystone XL pipeline was to transport oil from Alberta, Canada, to refineries in the United States. The final phase of the Keystone XL pipeline was to be developed by TC Energy (formerly TransCanada Corporation), which has constructed several other pipelines between Canada and the United States since 2010.",investopedia,1,38.15,14,0,13.29,16.1,10.65,16.75,16.33
Kickback,"A kickback is an illegal payment intended as compensation for preferential treatment or any other type of improper services received. The kickback may be money, a gift, credit, or anything of value. Paying or receiving kickbacks is a corrupt practice that interferes with an employee's or a public official’s ability to make unbiased decisions. Kickbacks are often referred to as a type of bribery.",investopedia,1,46.78,10.7,13,12.18,11.3,10.35,11,13.9
Kicker,"A kicker is a right, exercisable warrant, or other feature that is added to a debt instrument to make it more desirable to potential investors by giving the debt holder the potential option to purchase shares of the issuer.",investopedia,1,40.35,17.3,0,10.4,20.4,11.24,24.5,19.7
Kicker Pattern,A kicker pattern is a two-bar candlestick pattern that predicts a change in the direction of an asset's price trend. This pattern is characterized by a sharp reversal in price over the span of two candlesticks. Traders use it to determine which group of market participants is in control of the direction.,investopedia,1,62.38,8.9,12.5,10.21,10.2,8.44,11.33333333,10.77
Kicking The Tires,"Kicking the tires is a colloquial expression that refers to performing minimal research into an investment, as opposed to conducting a thorough and rigorous analysis. The process usually includes a cursory reading of the company's annual report, looking at its historical earning and revenue performance, considering the company's competitive strengths and weaknesses, and reading news articles or headlines about the company.",investopedia,1,15.14,18.7,0,17.36,22.1,13.17,25.25,24
Kiddie Tax,The kiddie tax is a special tax law created in 1986 to address investment and unearned income tax for individuals under 19 years of age—or dependent full-time students under 23.,investopedia,1,41.03,15,0,11.56,16.8,11.44,19,17.33
Kidnap Insurance,"As its name suggests, kidnap insurance is a type of insurance product that provides coverage for potential damages related to kidnapping. Examples of the kinds of damages commonly covered by kidnap insurance include extortion, ransom, medical costs, and travel-related expenses.",investopedia,1,17.34,15.8,0,16.36,16.7,13.31,16.5,18
Kids In Parents' Pockets Eroding Retirement Savings (KIPPERS),Kids In Parents' Pockets Eroding Retirement Savings (KIPPERS) is a slang term for adult children who are still living at home with their parents even after finishing school and reaching working age.,investopedia,1,47.46,14.6,0,12.83,19.2,11.14,18,15.3
Kijun Line (Base Line),"The Kijun Line, also called the Base Line or Kijun-sen, is one of five components that make up the Ichimoku Cloud indicator. The Kijun Line is typically used in conjunction with the Conversion Line (Tenkan-sen) to generate trade signals when they cross. These signals can be further filtered via the other components of the Ichimoku indicator.",investopedia,1,60.95,9.4,13,11.6,12.1,8.51,12.33333333,11.77
Kijun-Sen (Base Line),"The Kijun-sen, or base line, is an indicator and important component of the Ichimoku Kinko Hyo method of technical analysis, which is also known as the Ichimoku cloud.",investopedia,1,51.52,13,0,10.97,16.1,10.66,20,16.91
Kill,A kill is a request to cancel a trade between its placement and its fulfillment.,investopedia,1,73.17,6.8,0,7.24,6.8,8.59,7.5,8.67
Killer Application,"A killer application—or a killer app—is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980s, when accounting, database, and word-processing applications were first being developed for mass use.",investopedia,1,29.18,15.4,0,16.19,18.7,12.46,18.5,19.6
Killer Bees,"Killer bees are companies or individuals—such as investment bankers, accountants, attorneys, and tax specialists—that help target firms avoid being taken over by an unwanted suitor. Their job is to devise and implement anti-takeover defense strategies, which generally consist of making the target less attractive or more difficult or costly to acquire.",investopedia,1,28.67,15.6,0,16.77,19.4,12.64,18.75,18.83
Kimchi Premium,"The kimchi premium is the gap in cryptocurrency prices in South Korean exchanges compared to other exchanges located globally. The kimchi premium is predominantly seen in the price of the cryptocurrency Bitcoin (BTC). In other words, the price of Bitcoin might be listed at a higher price on a South Korean exchange than an exchange located in the United States or Europe. The name ""kimchi premium"" is a reference to the fermented cabbage dish that is a staple in Korean cuisine.",investopedia,1,50.87,11.2,13.8,10.62,11.9,8.74,13.625,12.07
Kin,"Kin is the cryptocurrency for the messaging service Kik. Kin has special uses within the Kik messenger platform. Users can earn Kin for making contributions to the broader Kik community, and then spend Kin on various goods and services within the Kik platform.",investopedia,1,56.96,8.9,11.2,11.01,9.6,9.49,8.166666667,11.3
Kiosk,"A kiosk refers to a small, temporary, stand-alone booth used in high-traffic areas for marketing purposes. A kiosk is usually manned by one or two individuals who help attract attention to the booth to get new customers. Retail kiosks are frequently located in shopping malls or on busy city streets with significant foot traffic and provide owners with a low-cost alternative to market their products or services.",investopedia,1,48.84,12,14.1,12.42,14.2,10.63,14.83333333,14.29
Kiting,Kiting is the fraudulent use of a financial instrument to obtain additional credit that is not authorized. Kiting encompasses two main types of fraud:,investopedia,1,50.84,9.2,0,12.28,9.7,12.13,8,14.8
Kiwi,"The New Zealand dollar (NZD) is the currency of New Zealand. NZD is made up of 100 cents and is often represented by the symbol $ or NZ$ to set it apart from other currencies based in dollars. The money also sees use in the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. The New Zealand Dollar is often commonly referred to as a kiwi because of the national bird found stamped on the one-dollar coin.",investopedia,1,69.31,8.3,9.5,7.54,8.9,8.99,10.75,10.19
Kiwi Bond,"The term Kiwi Bond refers to a type of fixed income security offered and backed by the government of New Zealand. Kiwi Bonds provide investors with a fixed rate of interest for a set period of time—anywhere from six months to four years—and may be purchased for as little as NZ$1,000 up a maximum of NZ$500,000. These securities are only available to residents of New Zealand.",investopedia,1,66.07,9.5,11.9,9.63,11.9,10.71,13.33333333,12.44
Klinger Oscillator,"The Klinger oscillator was developed by Stephen Klinger to determine the long-term trend of money flow while remaining sensitive enough to detect short-term fluctuations. The indicator compares the volume flowing through securities with the security's price movements and then converts the result into an oscillator. The Klinger oscillator shows the difference between two moving averages which are based on more than price. Traders watch for divergence on the indicator to signal potential price reversals. Like other oscillators, a signal line can be added to provide additional trade signals.",investopedia,1,45.15,11.3,14.3,15.31,14.5,10.25,12.6,13.86
KMF,"The term Comorian franc (KMF) refers to the official national currency of Comoros, a sovereign African island nation located in the Indian Ocean. It is maintained and issued by the country's central bank, la Banque Centrale des Comores. It is represented by the symbol KMF on global currency exchanges. The Comorian franc was pegged to the euro as of 1999 at a rate of 491.96775 Comorian francs to one euro. As of March 2021, $1 U.S. is equal to roughly 409 KMF.",investopedia,1,38.32,18.1,0,10.06,21.4,12.79,26,19.81
Knock-In Option,"A knock-in option is a latent option contract that begins to function as a normal option (""knocks in"") only once a certain price level is reached before expiration. Knock-ins are a type of barrier option that are classified as either a down-and-in or an up-and-in. A barrier option is a type of contract in which the payoff depends on the underlying security's price and whether it hits a certain price within a specified period.",investopedia,1,54.86,11.7,12.5,10.04,13.7,9.56,15,13.66
Knock-Out Option,A knock-out option is an option with a built-in mechanism to expire worthless if a specified price level in the underlying asset is reached. A knock-out option sets a cap on the level an option can reach in the holder's favor.,investopedia,1,59.13,10.1,0,8.3,10.3,8.5,11.75,11.13
Know Sure Thing (KST),The Know Sure Thing (KST) is a momentum oscillator developed by Martin Pring to make rate-of-change readings easier for traders to interpret.,investopedia,1,40.69,13.1,0,13.05,15.2,11.9,17,17.89
Know Your Client (KYC),"The Know Your Client or Know Your Customer is a standard in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYC protects both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client's portfolio. KYC compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.",investopedia,1,36.69,12.5,16.6,18.27,17.1,10.79,14.4,16.13
Knowledge Capital,"Knowledge capital is the intangible value of an organization made up of its knowledge, relationships, learned techniques, procedures, and innovations. In other words, knowledge capital is the full body of knowledge an organization possesses.",investopedia,1,28.84,13.5,0,17.57,16.6,8.66,13,13.86
Knowledge Economy,"The knowledge economy is a system of consumption and production that is based on intellectual capital. In particular, it refers to the ability to capitalize on scientific discoveries and basic and applied research. This has come to represent a large component of all economic activity in most developed countries. In a knowledge economy, a significant component of value may thus consist of intangible assets such as the value of its workers' knowledge or intellectual property.",investopedia,1,27.01,14.2,16.2,13.52,13.4,10.67,14.625,16.59
Knowledge Engineering,Knowledge engineering is a field of artificial intelligence (AI) that creates rules to apply to data to imitate the thought process of a human expert. It looks at the structure of a task or a decision to identify how a conclusion is reached.,investopedia,1,49.65,11.7,0,8.99,11.1,11.68,14.25,15.11
Knowledge Process Outsourcing (KPO),"Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities. KPO involves contracting out work to individuals that typically have advanced degrees and expertise in a specialized area.",investopedia,1,30.87,12.7,0,19.83,17.6,13.33,12,18
Knuckle-Buster,"Knuckle-buster is a slang term for a manual credit card imprinter, a device merchants used to record credit card transactions before the advent of electronic point-of-sale terminals.",investopedia,1,35.61,15,0,15.9,19.6,11.99,19.5,18.21
KOF Economic Barometer,"The KOF Economic Barometer is a composite indicator that provides a reliable reading on the direction of GDP growth for the Swiss economy compared with the same quarter a year earlier. The KOF Economic Barometer is based on a multi-sectoral design with three modules: core GDP, construction, and banking.",investopedia,1,38.15,14,0,12.6,15.4,11.62,18.25,16.33
Kondratieff Wave,"Kondratieff Wave, named after Russian economist Nikolai Kondratieff, refers to cycles, lasting about 40 to 60 years, experienced by capitalist economies. Also known as ""Kondratiev waves,"" ""super-cycles,"" ""K-waves,"" ""surges,"" and/or ""long waves.""",investopedia,1,46.78,10.7,0,17.05,18.1,13.81,11,11.4
Kondratiev Wave,"A Kondratiev Wave is a long-term economic cycle in commodity prices and other prices, believed to result from technological innovation, that produces a long period of prosperity alternating with economic decline. This theory was founded by Nikolai D. Kondratiev (also spelled ""Kondratieff""), an agricultural economist who noticed agricultural commodity and copper prices experienced long-term cycles. Kondratiev believed that these cycles involved periods of evolution and self-correction.",investopedia,1,20.89,14.4,15.2,18.44,17.1,11.39,12.75,15.69
Korea Investment Corporation,"The Korea Investment Corporation (KIC) is a government-owned investment organization that manages the sovereign wealth fund for the Government of South Korea. The KIC was established by law in 2005. The KIC received initial deposits of $17 billion from the Bank of Korea and $3 billion from the Korean Ministry of Strategy and Finance. The KIC has approximately USD$122.3 billion in assets under management as of the end of 2018, according to the Sovereign Wealth Fund Institute's rankings.",investopedia,1,43.22,12.1,14.2,12.53,13.3,10.68,13.5,13.44
Korea Stock Exchange (KSC),"The Korea Stock Exchange is a division of the much larger Korea Exchange (KRX, or the Exchange). Previously, Korea's stock market was a standalone entity. In 2005, the Korea Stock Exchange merged with the Korea Futures Exchange and the electronic market, KOSDAQ, to form the Korea Exchange.",investopedia,1,55.54,9.4,10.5,11.19,10.8,8.78,8.5,10.54
Korean Composite Stock Price Indexes (KOSPI),Korean Composite Stock Price Indexes (KOSPI) refers to a series of indexes that track the overall Korean Stock Exchange and its components. Each of the KOSPI indexes are capitalization-weighted market averages.,investopedia,1,38.82,11.7,0,15.37,13.8,10.01,12.25,13.94
Krugerrands,Krugerrands are gold coins that were minted by the Republic of South Africa in 1967 to help promote South African gold to the international markets and to make it possible for individuals to own gold. Krugerrands are among the most frequently traded gold coins in the world market.,investopedia,1,64.04,10.3,0,11.03,13.6,9.1,14.5,12.93
KSOP,"A KSOP is a qualified retirement plan that combines an employee's stock ownership plan (ESOP) with a 401(k). Under this type of retirement plan, the company will match employee contributions with stock rather than cash. KSOPs can benefit companies by reducing expenses that would arise by separately operating an ESOP and 401(k) retirement plans.",investopedia,1,53.21,10.3,15.9,12.7,13.1,10.38,14,16.09
Kuala Lumpur Stock Exchange (KLS),The Kuala Lumpur Stock Exchange (KLSE) is the former name of a Malaysian stock exchange located in the capital city of Kuala Lumpur. The KLSE dates back to 1930 and was specifically created to allow the trading of Malaysian securities. The exchange went through several name changes over the years but is now known as Bursa Malaysia.,investopedia,1,69.11,8.3,11.2,10.79,11.3,9.01,11.5,10.41
Kuwait Investment Authority,"The term Kuwait Investment Authority (KIA) refers to a government-owned corporation responsible for managing the sovereign wealth fund of Kuwait. Founded out of the Kuwait Investment Board in 1982, it was established to manage government revenue, derived primarily from the excess proceeds Kuwait earns from its oil reserves. The fund—the world's first and oldest—was created to lessen the country's dependence on oil.",investopedia,1,50.46,11.4,15,15.2,16,11.79,14.66666667,14.73
Kuwaiti Dinar (KWD),The Kuwaiti Dinar (KWD) is the national currency of the State of Kuwait. The dinar name derives from the Roman denarius. The KWD subdivides into 1000 fils which is a coin used in many Arab countries.,investopedia,1,78.59,6.8,0,8.35,9.3,10.67,6,10.53
KYD (Cayman Islands Dollar),"KYD is the currency abbreviation or currency symbol for the Cayman Islands dollar (KYD), the currency for the Cayman Islands. The Cayman Islands are a British Overseas Territory that includes Grand Cayman, Little Cayman, and Cayman Brac.",investopedia,1,44.24,11.7,0,13.75,13.9,9.25,11.75,10.64
Kyoto Protocol,The Kyoto Protocol is an international agreement that aimed to reduce carbon dioxide (CO2) emissions and the presence of greenhouse gases (GHG) in the atmosphere. The essential tenet of the Kyoto Protocol was that industrialized nations needed to lessen the amount of their CO2 emissions.,investopedia,1,48.64,12.1,0,13.7,15.3,12.12,14.25,13.44
L Share Annuity Class,"The L share annuity class is a version of a variable annuity that starts paying out earlier than most but has relatively high administrative costs. It is designed for investors who want to be able to begin withdrawing funds from an account after a comparatively short period of time. Other share classes offered by variable annuities are A share, B share, C share, O share, and X share annuity classes.",investopedia,1,44.41,15.8,0,10.4,18.5,10.56,15,18.57
Labor Intensive,"The term ""labor-intensive"" refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capital required to produce the goods or services: the higher the proportion of labor costs required, the more labor-intensive the business.",investopedia,1,42.55,14.4,0,12.54,17.5,9.48,18.25,14.91
Labor Market,"The labor market, also known as the job market, refers to the supply of and demand for labor, in which employees provide the supply and employers provide the demand. It is a major component of any economy and is intricately linked to markets for capital, goods, and services.",investopedia,1,47.12,12.7,0,9.87,13,9.1,15,13.77
Labor Market Flexibility,Labor market flexibility is an important aspect of the labor market. It allows companies to make certain decisions about changing their labor force in response to fluctuations in the market and to help boost production.,investopedia,1,45.25,11.3,0,12.76,12.2,9.92,11.75,12.71
Labor Productivity,"Labor productivity measures the hourly output of a country's economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor. Growth in labor productivity depends on three main factors: saving and investment in physical capital, new technology, and human capital.",investopedia,1,38.62,11.8,13.6,13.92,13,12.14,11.16666667,12.24
Labor Theory Of Value (LTV),"The labor theory of value (LTV) was an early attempt by economists to explain why goods were exchanged for certain relative prices on the market. It suggested that the value of a commodity was determined by and could be measured objectively by the average number of labor hours necessary to produce it. In the labor theory of value, the amount of labor that goes into producing an economic good is the source of that good's value. The best-known advocates of the labor theory were Adam Smith, David Ricardo, and Karl Marx. Since the 19th century, the labor theory of value has fallen out of favor among most mainstream economists.",investopedia,1,49.35,11.8,14,9.81,12,9.35,13.4,13.86
Labor Union,"A labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions. Officially known as a “labor organization,” and also called a “trade union” or a “worker’s union,” a labor union selects representatives to negotiate with employers in a process known as collective bargaining. When successful, the bargaining results in an agreement that stipulates working conditions for a period of time.",investopedia,1,29.18,15.4,17.5,14.16,17,10.56,18.83333333,18
Laddering,"In finance, the term “laddering” is used in a variety of ways depending on the industry. Its most common usages are in relation to retirement planning and in the underwriting of new securities issues.",investopedia,1,45.76,11.1,0,10.38,10.2,10.98,12.5,16.21
Laffer Curve,The Laffer Curve is a theory formalized by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate the argument that sometimes cutting tax rates can result in increased total tax revenue.,investopedia,1,47.12,12.7,0,13,15.2,10.09,16.5,16.27
Laggard,A laggard is a stock or security that is underperforming relative to its benchmark or peers. A laggard will have lower-than-average returns compared to the market. A laggard is the opposite of a leader.,investopedia,1,60.01,7.7,10.5,9.49,7.6,9.31,6.333333333,10.4
Lagging Indicator,"A lagging indicator is an observable or measurable factor that changes sometime after the economic, financial, or business variable with which it is correlated changes. Lagging indicators confirm trends and changes in trends.",investopedia,1,37.81,12.1,0,15.66,14.4,10.68,11.75,15.08
Laissez-Faire,"Laissez-faire is an economic theory from the 18th century that opposed any government intervention in business affairs. The driving principle behind laissez-faire, a French term that translates to ""leave alone"" (literally, ""let you do""), is that the less the government is involved in the economy, the better off business will be, and by extension, society as a whole. Laissez-faire economics is a key part of free-market capitalism.",investopedia,1,40.38,13.2,16.3,13.12,15.5,9.22,16.5,15.49
Lambda,"In options trading, lambda is the Greek letter assigned to a variable that tells the ratio of how much leverage an option is providing as the price of that option changes. This measure is also referred to as the leverage factor, or in some countries, effective gearing.",investopedia,1,64.54,10.1,0,9.93,12.6,10.51,12.75,11.1
Lancaster University Management School (LUMS),"Lancaster University Management School (LUMS) is the business school of Lancaster University in Lancaster, England. Established in 1964, it offers a wide range of subjects from undergraduate degrees to postgraduate degrees including MBAs, Ph.D.s, and post-experience executive education.",investopedia,1,9.89,16.6,0,19.2,19.1,13.3,16,18.13
Land Contract,A land contract is an agreement between a buyer and seller pertaining to a specific tract of land. Developers advertise and sell tracts of land similar to the process of selling a real estate property. Land contracts can be broad in scope and may include both the land and real estate on the land. Many land contracts involve seller-financed purchases. Some borrowers buying land may also choose to finance the purchase through a bank loan.,investopedia,1,64.71,8,10.8,9.97,9.1,9.64,8.3,10.27
Land Trust,"A land trust is a legal entity that takes ownership of, or authority over, a piece of property at the behest of the property owner. Land trusts are living trusts that allow for the management of property while alive. However, like other types of trusts, each land trust's terms are unique and can be tailored to individual needs.",investopedia,1,60.35,9.6,13,9.11,10.3,8.95,12.66666667,11.86
Land Value,"Land value is the value of a piece of property including both the value of the land itself as well as any improvements that have been made to it. This is not to be confused with site value, which is the reasonable value of the land assuming that there are no leases, mortgages or anything else present that would otherwise change the site's value. Land values increase when demand for land exceeds the supply of available land or if a particular piece of land has intrinsic value greater than neighboring areas (e.g., oil can be found on the land).",investopedia,1,54.9,13.8,13,9.01,16.5,8.94,19.5,16.43
Land Value Tax (LVT),A land value tax is a more predictable way to tax property based solely on the value of a parcel of land and not any associated buildings. The concept of a land value tax dates back to the beginning of agrarian societies when deciding how to tax landowners fairly for the benefit of the larger community was a common social goal.,investopedia,1,18.02,25.9,0,9.48,30.2,11.58,38.5,28.99
Landlocked,"Landlocked in the context of real estate refers to a piece of property that is inaccessible via public thoroughfare, except through an adjacent lot. A vacant lot that is located behind a strip mall and can only be reached by walking through the mall qualifies as this type of lot. Landlocked property is locked up, meaning it's surrounded by other property.",investopedia,1,59.33,10,13,10.39,11.7,9.56,13.16666667,12.71
Landlord,"A landlord is an individual, business, or other entity who owns real estate and subsequently rents or leases the property to another party in return for rent payment. The renting party is called a tenant or leaseholder.",investopedia,1,44.24,11.7,0,11.08,11.4,10.1,12.25,12.81
Lapping Scheme,"A lapping scheme is a fraudulent practice that involves altering accounts receivables to hide stolen cash. The method involves taking a subsequent receivables payment from a transaction (for example, a sale) and using that to cover the theft. The receivable from the second transaction is covered by money from the third transaction, and so on.",investopedia,1,52.9,10.4,13.6,12.59,12.6,9.42,12.5,12.41
Lapse,"A lapse is the removal or expiration of a privilege, right, or policy due to the passage of time or some sort of inaction. A lapse of a privilege due to inaction occurs when the party that is to receive the benefit does not fulfill the conditions or requirements set forth by a contract or agreement.",investopedia,1,51.52,13,0,8.07,13.2,8.97,18.5,16.2
Large Cap (Big Cap),"Large cap (sometimes called ""big cap"") refers to a company with a market capitalization value of more than $10 billion. Large cap is a shortened version of the term ""large market capitalization."" Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share. A company’s stock is generally classified as large cap, mid cap or small cap.",investopedia,1,54.93,9.6,12.6,11.71,11.4,8.57,10.875,11.44
Large Trader,"A large trader is an investor or organization with trades that are equal to or exceed certain amounts as specified by the Securities and Exchange Commission (SEC). A large trader is defined by the SEC as ""a person whose transactions in National Market System (NMS) securities equal or exceed two million shares or $20 million during any calendar day, or 20 million shares or $200 million during any calendar month.""",investopedia,1,35.95,16.9,0,11.09,19.3,9.43,22,17.43
Larry Ellison,"Larry Ellison is the founder of software company Oracle Corporation (ORCL) which he formed in 1977. He served as the company's chief executive officer until 2014 and still serves as chair of the board and chief technology officer. His company successfully went public in 1986 but suffered from quality-control problems in 1988. These issues led to cash flow problems, operating losses, a declining share price, and near bankruptcy a couple of years later. New top management worked with Ellison to turn these problems around by 1994.",investopedia,1,54.02,10,13.7,11.95,11.8,10.55,12,12.46
"Last In, First Out (LIFO)","Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of the most recent products purchased (or produced) are the first to be expensed as cost of goods sold (COGS), which means the lower cost of older products will be reported as inventory.",investopedia,1,57.95,12.6,0,9.01,15.3,9.07,17,14
Last Mile,The last mile describes the short geographical segment of delivery of communication and media services or the delivery of products to customers located in dense areas.  Last mile logistics tend to be complex and costly to providers of goods and services who deliver to these areas.,investopedia,1,24.79,21.2,0,13.13,25.7,12.1,15,23.62
Last Trading Day,"The last trading day is the final day that a futures contract, or other derivatives with an expiry date, may trade or be closed out before the delivery of the underlying asset or cash settlement must occur. At the end of the last trading day, the contract holder must be prepared to accept delivery of the commodity or settle in cash if the position is not closed. The same concept applies to options contracts.",investopedia,1,54.86,11.7,11.9,9.12,12.5,8.7,14.66666667,12.58
Last Twelve Months (LTM),"Last twelve months (LTM) refers to the timeframe of the immediately preceding 12 months. It is also commonly designated as trailing twelve months (TTM). LTM is often used in reference to a financial metric used to evaluate a company's performance, such as revenues or debt to equity (D/E). Although a 12-month period is a relatively short time span for examining company performance, it is considered useful because it indicates a company's most recent performance, and is indicative of the company's current state. The terms ""last twelve months"" or ""trailing twelve months"" frequently appear in a company's earnings reports or other financial statements.",investopedia,1,42.31,12.4,15.6,12.88,14.3,10.38,14.6,14.83
Last Will And Testament,"A last will and testament is a legal document that communicates a person's final wishes pertaining to assets and dependents. A person's last will and testament outlines what to do with possessions, whether the deceased will leave them to another person, a group or donate them to charity, and what happens to other things that they are responsible for, such as custody of dependents and management of accounts and financial interests. Some states do allow for non-standard or unusual wills, such as a holographic will, while others do not.",investopedia,1,41.33,14.9,16.7,12.14,17.4,10.43,20.5,17.72
Late Fee,"The term late fee refers to a charge consumers pay when they fail to make a payment on a debt such as a loan or a credit card, or any other type of financial agreement such as an insurance or rental contract by the due date. When a borrower misses a payment, the lender adds the late fee to the outstanding balance, which increases the following month.",investopedia,1,62.85,12.8,0,7.61,15.4,9.54,19.75,16.39
Law of Demand,The law of demand is one of the most fundamental concepts in economics. It works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions.,investopedia,1,59.13,10.1,0,11.14,12.1,10.05,13.25,13.08
Law of Diminishing Marginal Productivity,"The law of diminishing marginal productivity is an economic principle usually considered by managers in productivity management. Generally, it states that advantages gained from slight improvement on the input side of the production equation will only advance marginally per unit and may level off or even decrease after a specific point.",investopedia,1,28.67,15.6,0,15.67,18.1,12.02,19.75,20.4
Law of Diminishing Marginal Returns,"The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output.",investopedia,1,9.56,20.9,0,13.94,21.7,13.32,28,25.51
Law of Diminishing Marginal Utility,The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines. Marginal utility is derived as the change in utility as an additional unit is consumed. Utility is an economic term used to represent satisfaction or happiness. Marginal utility is the incremental increase in utility that results from consumption of one additional unit.,investopedia,1,29.55,13.2,16.8,14.44,13,8.33,13.875,12.67
Law of Large Numbers,"The law of large numbers, in probability and statistics, states that as a sample size grows, its mean gets closer to the average of the whole population. In the 16th century, mathematician Gerolama Cardano recognized the Law of Large Numbers but never proved it. In 1713, Swiss mathematician Jakob Bernoulli proved this theorem in his book, Ars Conjectandi. It was later refined by other noted mathematicians, such as Pafnuty Chebyshev, founder of the St. Petersburg mathematical school.",investopedia,1,47.38,10.5,12.7,12.41,11.4,11.17,10.5,12.91
Law of Supply,"The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa. The law of supply says that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.",investopedia,1,45.93,15.2,0,9.64,17.2,9.3,20.75,16.98
Law of Supply and Demand,"The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. Generally, as price increases, people are willing to supply more and demand less and vice versa when the price falls.",investopedia,1,56.29,11.2,11.9,9.46,12,8.63,14,12.75
Lawful Money,"Lawful money is any form of currency issued by the United States Treasury and not the Federal Reserve System. It includes gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, in which the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts, and banknotes.",investopedia,1,61.67,9.1,8.8,10.32,10.8,9.79,9,8.87
Layaway,"Layaway is a purchasing method in which a consumer places a deposit on an item to ""lay it away"" for later pick-up when they are financially positioned to pay off the balance. Layaway also lets customers make smaller payments on the product until the purchase is paid in full. A layaway plan ensures the consumer will get their chosen merchandise once it's fully paid.",investopedia,1,55.92,13.4,0,10.51,17.2,9.66,12,15.3
Layoff,"A layoff describes the act of an employer suspending or terminating a worker, either temporarily or permanently, for reasons other than an employee's actual performance. A layoff is not the same thing as an outright firing, which may result from worker inefficiency, malfeasance, or breach of duty.",investopedia,1,30.7,14.8,0,13.12,15.6,10.18,16.25,17.06
Lead Bank,"A lead bank is a bank that oversees the arrangement of loan syndication. The lead bank receives an additional fee for this service, which involves recruiting the syndicate members and negotiating the financing terms. In the Eurobond market, the lead bank acts in an agent capacity for an underwriting syndicate.",investopedia,1,46.06,11,13.6,12.24,11.6,9.83,11.66666667,13.88
Lead Time,"Lead time is the amount of time that passes from the start of a process until its conclusion. Companies review lead time in manufacturing, supply chain management, and project management during pre-processing, processing, and post-processing stages. By comparing results against established benchmarks, they can determine where inefficiencies exist.",investopedia,1,38.32,11.9,14.6,17.69,16.2,10.35,12,13.9
Leadership,"Leadership in business is the capacity of a company's management to set and achieve challenging goals, take fast and decisive action when needed, outperform the competition, and inspire others to perform at the highest level they can.",investopedia,1,25.46,18.9,0,13.59,22.3,12.3,26.5,23.45
Leadership Grid,"The Leadership Grid is a model of behavioral leadership developed in the 1960s by Robert Blake and Jane Mouton. Previously known as the Managerial Grid, the Leadership Grid is based on two behavioral dimensions: concern for production, which is plotted on the X-axis on a scale from one to nine points; and concern for people, which is plotted on a similar scale along the Y-axis.",investopedia,1,46.95,14.8,0,10.98,17.9,10.84,21.75,17.92
Leading Indicator,"A leading indicator is any measurable or observable variable of interest that predicts a change or movement in another data series, process, trend, or other phenomenon of interest before it occurs. Leading economic indicators are used to forecast changes before the rest of the economy begins to move in a particular direction and help market observers and policymakers predict significant changes in the economy.",investopedia,1,22.08,18.1,0,14.57,20.3,11.39,23.5,19.68
Leads and Lags,"Leads and lags in international business most commonly refer to the alteration of normal payment or receipts in a foreign exchange transaction based on an expected change in exchange rates. When a corporation or government entity has the ability to control the schedule of payments being received or being made, then that organization may opt to pay earlier than scheduled or delay the payment later than scheduled.",investopedia,1,29.01,17.5,0,13.24,19.9,11.43,22.25,19.37
Leakage,"In economics, leakage refers to capital or income that diverges from some kind of iterative system.",investopedia,1,46.78,10.7,0,12.18,11.3,10.35,11,11.4
Lean Six Sigma,"Lean Six Sigma is a team-focused managerial approach that seeks to improve performance by eliminating waste and defects. It combines Six Sigma methods and tools and the lean manufacturing/lean enterprise philosophy, striving to eliminate waste of physical resources, time, effort and talent while assuring quality in production and organizational processes. Simply put, under the tenets of Lean Six Sigma any use of resources that doesn't create value for the end customer is considered a waste and should be eliminated.",investopedia,1,27.86,15.9,16.3,14.74,18.1,10.94,18.5,18.11
Lean Startup,A lean startup is a method used to found a new company or introduce a new product on behalf of an existing company. The lean startup method advocates developing products that consumers have already demonstrated they desire so that a market will already exist as soon as the product is launched. As opposed to developing a product and then hoping that demand will emerge.,investopedia,1,58.32,10.4,12.5,10.27,11.8,8.89,13.33333333,11.65
Learning Curve,"A learning curve is a concept that graphically depicts the relationship between the cost and output over a defined period of time, normally to represent the repetitive task of an employee or worker. The learning curve was first described by psychologist Hermann Ebbinghaus in 1885 and is used as a way to measure production efficiency and to forecast costs.",investopedia,1,41.53,14.8,0,12.43,17.2,10.72,19.75,18.58
Lease,"A lease is a contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the lessee, also known as the tenant, use of an asset and guarantees the lessor, the property owner or landlord, regular payments for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract. It is a form of incorporeal right.",investopedia,1,60.85,9.4,12.6,9.34,10,8.78,12.125,11.79
Lease Extension,"A lease extension refers to a legal agreement that extends the term of an existing lease or rental agreement. Extensions are not a requirement in a business relationship but are often granted just before an original agreement is set to expire. They are common in relationships between landlords and tenants of commercial and residential property, or between parties who lease vehicles, machinery, plants, and equipment.",investopedia,1,40.99,12.9,14.6,13.75,15.1,10.79,14.83333333,15.45
Lease Option,"A lease option is an agreement that gives a renter a choice to purchase the rented property during or at the end of the rental period. It also precludes the owner from offering the property for sale to anyone else. When the term expires, the renter must either exercise the option or forfeit it. A lease option is also known as a lease with the option to purchase.",investopedia,1,71.14,7.6,9.5,7.31,7.7,7.96,8.75,9.15
Lease Payments,"A lease payment is the equivalent of the monthly rent, that is formally dictated under a contract between two parties, granting one participant the legal right to use the other individual's real estate holdings, manufacturing equipment, computers, software, or other fixed assets, for a specified amount of time. A lease provides the lessee with limited right-to-use without transferring ownership in return for payment to the lessor.",investopedia,1,29.52,17.3,0,14.69,21.4,11.49,22,19.87
Lease Rate,"A lease rate is the amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lessor earns from allowing someone else to use their property compensates them for not being able to use that property during the term of the lease.",investopedia,1,58.96,12.2,0,8.48,13.8,7.8,18.5,15.05
Leaseback,"A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. With a leaseback—also called a sale-leaseback—the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset. In a sale-leaseback transaction, the seller of the asset becomes the lessee and the purchaser becomes the lessor.",investopedia,1,48.84,12,14.1,12.07,13.9,8.51,14.83333333,11.91
Leasehold,A leasehold is an accounting term for an asset being leased. The asset is typically property such as a building or space in a building. The lessee contracts with the lessor for the right to use the property in exchange for a series of scheduled payments over the term of the lease. Renting space in an office building for a company's use or renting a building to be used for a retail store are two examples of a commercial leasehold arrangement.,investopedia,1,67.79,8.8,11.2,8.47,9.9,8.35,12.125,11.58
Leasehold Improvement,"The term leasehold improvement refers to any changes made to customize a rental property to satisfy the particular needs of a specific tenant. These changes and alterations may include painting, installing partitions, changing the flooring, or putting in customized light fixtures. Improvements may be undertaken by the landlord or the tenant and may be paid by the tenant. While the useful economic life of most leasehold improvements is anywhere between five and 10 years, the Internal Revenue Code (IRC) requires that depreciation for such improvements to occur over the economic life of the building.",investopedia,1,47.62,12.5,14.9,13.99,16,10.35,16,15.36
Least Squares Criterion,"The least squares criterion is a formula used to measure the accuracy of a straight line in depicting the data that was used to generate it. That is, the formula determines the line of best fit.",investopedia,1,61.67,9.1,0,7.54,8.4,8.04,12.5,13.87
Least Squares Method,"The ""least squares"" method is a form of mathematical regression analysis used to determine the line of best fit for a set of data, providing a visual demonstration of the relationship between the data points. Each point of data represents the relationship between a known independent variable and an unknown dependent variable.",investopedia,1,36.63,14.6,0,13.23,16.6,9.78,18.5,18.09
Least-Preferred Coworker Scale,"The least-preferred coworker scale, developed by American scholar Fred Fiedler, identifies whether an individual's leadership style is either relationship-oriented or task-oriented.",investopedia,1,-0.61,18.6,0,25.23,25.2,15.2,19.5,21.73
Ledger Balance,A ledger balance is computed by a bank at the end of each business day and includes all withdrawals and deposits to calculate the total amount of money in a bank account. The ledger balance is the opening balance in the bank account the next morning and remains the same all day.,investopedia,1,70.47,9.9,0,8.25,12.2,7.96,14,11.94
What Is a Ledger Wallet?,"Ledger wallets are hardware cryptocurrency wallets made by Ledger, a company headquartered in Paris, France. In the U.S., the company has offices in San Francisco, California. Ledger was launched in 2014 by eight experts who had backgrounds in embedded security, cryptocurrencies, and entrepreneurship. The company's goal is to create secure solutions for blockchain applications.",investopedia,1,49.31,9.7,13.4,15.83,13.9,11.91,9,13.55
LedgerX Definition,"LedgerX is a digital currency futures and options exchange and clearinghouse. It is regulated by the Commodity Futures Trading Commission (CFTC). LedgerX is available for both retail and institutional investors. The exchange offers physical settlement of all contracts, block trading and algorithmic trading opportunities for institutional investors, and direct access for all traders. The exchange is open 24/7, enabling investors to trade anytime they want.",investopedia,1,41.36,10.7,12,16.34,13.9,10.6,7.9,11.35
Leg,"A leg is one piece of a multi-part trade, often a derivatives trading strategy, in which a trader combines multiple options or futures contracts, or—in rarer cases—combinations of both types of contract, to hedge a position, to benefit from arbitrage, or to profit from a spread widening or tightening. Within these strategies, each derivative contract or position in the underlying security is called a leg.",investopedia,1,30.03,17.1,0,13.12,19.7,12.05,22.75,19.77
Legal Lending Limit,The legal lending limit is the maximum dollar amount that a single bank can lend to a given borrower. This limit is expressed as a percentage of an institution’s capital and surplus. The limits are overseen by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).,investopedia,1,45.05,11.4,13.6,10.44,10.8,9.88,12.16666667,13.87
Legal Monopoly,"A legal monopoly refers to a company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price. It can either be independently run and government regulated, or both government-run and government regulated. A legal monopoly is also known as a ""statutory monopoly.""",investopedia,1,32.09,12.2,14.9,11.53,10,7.48,11.125,9.88
Legal Rate of Interest,"The legal rate of interest is the highest rate of interest that can be legally charged on any type of debt, and to which a lender must adhere. The legal rate of interest applies to all types of debt, although certain types of debt may carry a higher legal rate than another—for instance, the legal limit for a payday lender may be higher than the legal limit for a student loan. The limit is set to prevent lenders from charging borrowers excessive interest rates.",investopedia,1,59.98,11.8,11.9,9,14,9.35,16.33333333,12.63
Legal Separation,"A legal separation is a court-ordered arrangement whereby a married couple lives apart, leading separate lives. A legal separation is a popular alternative to a divorce when the parties are unsure of the state of their marriage but want to establish financial boundaries and responsibilities, such as separation of assets, custody of dependents, and child support. However, for those who want a divorce, a legal separation may be required before a judge grants a divorce.",investopedia,1,37.64,14.2,15,12.94,16,9.51,16.83333333,14.27
Legal Tender,"Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward repayment of a debt.",investopedia,1,44.44,11.6,13.6,11.6,11.7,10,12.5,14.59
Legislative Risk,Legislative risk is the potential that regulations or legislation by the government could significantly alter the business prospects of one or more companies. These changes can adversely affect investment holdings in that company. Legislative risk may occur as a direct result of government action or by altering the demand patterns of the company's customers.,investopedia,1,36.28,12.7,15.5,14.96,14.4,10.96,13.66666667,14.61
Lehman Aggregate Bond Index,"The Bloomberg Barclays Aggregate Bond Index, or ""Agg"" (for aggregate), is a broad-based fixed-income index used by bond traders, mutual funds, and ETFs as a benchmark to measure their relative performance.",investopedia,1,40.01,15.4,0,13.99,20.7,12.81,21.5,17.56
Lehman Brothers,"Lehman Brothers was a global financial services firm whose bankruptcy in 2008 was largely caused by — and accelerated — the subprime mortgage crisis. The firm was at the time the fourth-largest investment bank in the United States; its bankruptcy remains the largest ever. At the time of its Sept. 15, 2008 Chapter 11 bankruptcy filing, Lehman Brothers had been in operation for 158 years. It provided investment banking, trading, investment management, private banking, research, brokerage, private equity, and associated services.",investopedia,1,42.41,12.4,13.8,13.92,15,11.27,13.625,13.06
Lehman Formula,"The Lehman formula is a compensation formula developed by Lehman Brothers to determine the commission on investment banking or other business brokering services. Lehman Brothers developed the Lehman Formula, also known as the Lehman Scale Formula, in the 1960s while raising capital for corporate clients.",investopedia,1,31.72,14.4,0,16.13,17.1,10.37,17.75,16.11
Lemons Problem,The lemons problem refers to issues that arise regarding the value of an investment or product due to asymmetric information possessed by the buyer and the seller.,investopedia,1,44.07,13.8,0,12.25,15.9,11.99,17.5,16.73
Lender,"A lender is an individual, a public or private group, or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees. Repayment may occur in increments, as in a monthly mortgage payment (one of the largest loans consumers take out is a mortgage) or as a lump sum.",investopedia,1,44.92,15.6,0,10.28,18.3,10.15,21.25,17.86
Lender of Last Resort,"A lender of last resort (LoR) is an institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the United States, the Federal Reserve acts as the lender of last resort to institutions that do not have any other means of borrowing, and whose failure to obtain credit would dramatically affect the economy.",investopedia,1,26.48,18.5,0,12.72,21,11.56,24.5,21.07
Leptokurtic Distributions,Leptokurtic distributions are statistical distributions with kurtosis greater than three. It can be described as having a wider or flatter shape with fatter tails resulting in a greater chance of extreme positive or negative events.,investopedia,1,45.25,11.3,0,14.9,14,11.27,12.75,15
Less-Developed Countries (LDC),Less-developed countries (LDC) are low-income countries that face significant structural challenges to sustainable development. The United Nations's list of LDCs currently comprises 47 countries.,investopedia,1,17,13.9,0,21.74,18.3,12.78,9,16.47
Lessee,"A lessee is a person who rents land or property from a lessor. The lessee is also known as the “tenant” and must uphold specific obligations as defined in the lease agreement and by law. The lease is a legally binding document, and if the lessee violates its terms they could be evicted. ",investopedia,1,70.13,8,10.5,7.65,8.4,9.5,10.66666667,10.9
Lessor,"A lessor is essentially someone who grants a lease to someone else. As such, a lessor is the owner of an asset that is leased under an agreement to a lessee. The lessee makes a one-time payment or a series of periodic payments to the lessor in return for the use of the asset.",investopedia,1,78.59,6.8,7.8,5.86,7,8.04,8.666666667,8.68
Letter of Comfort,"A letter of comfort—also known as a letter of intent or a solvency opinion—is a written document that provides a level of assurance that an obligation will ultimately be met. In its traditional context, a letter of comfort is given to organizations or persons of interest by external auditors regarding statutory audits, statements, and reports used in a prospectus. The letter of comfort will be attached to the preliminary statements as assurance that it will not be materially different from the final version.",investopedia,1,34.9,15.3,16.7,12.94,17,9.96,19.5,17.83
Letter of Credit,"A letter of credit, or ""credit letter"" is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility.",investopedia,1,65.35,9.8,8.8,6.45,9.5,7.78,12.33333333,10.84
Letter of Guarantee,"A letter of guarantee is a type of contract issued by a bank on behalf of a customer who has entered a contract to purchase goods from a supplier. The letter of guarantee lets the supplier know that they will be paid, even if the customer of the bank defaults. To get a letter of guarantee, the customer will need to apply for it, similar to a loan. If the bank is comfortable with the risk, they will back the customer with the letter, for an annual fee.",investopedia,1,66.07,9.5,11.2,6.5,9.4,7.6,13,11.07
Letter of Indemnity,"A letter of indemnity (LOI) is a contractual document that guarantees certain provisions will be met between two parties. Such letters are traditionally drafted by third-party institutions like banks or insurance companies, which agree to pay financial restitution to one of the parties, should the other party fail to live up to its obligations. In other words, the chief function of an LOI is to ensure that Party A won't ultimately suffer any losses if Party B falls delinquent. The concept of indemnity has to do with holding someone harmless, and a letter of indemnity outlines the specific measures that will be used to hold a party harmless.",investopedia,1,44.07,13.8,14.9,11.44,15.7,9.51,16.75,15.99
Letter of Intent (LOI),"A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.",investopedia,1,54.73,9.7,12.2,10.96,10.7,9,10.75,11.45
Level 1,"Level 1 is a type of trading screen used with stock trading that displays the best bid-offer-volume quotes in real-time, or the national best bid and offer (NBBO). Level 1 quotes supply basic information that, for the most part, is more than sufficient for most investors, though some extremely active traders prefer order book and market depth information that can be found in higher-level quotes.",investopedia,1,46.95,14.8,0,12.02,19,9.86,20.25,15.46
Level 2,"First introduced in 1983 as the Nasdaq Quotation Dissemination Service (NQDS), Level 2 is a subscription-based service that provides real-time access to the NASDAQ order book. It is intended to display market depth and momentum to traders and investors.",investopedia,1,43.22,12.1,0,13.92,14.5,11.49,13.25,13.95
Level 3,"A level III quote is pricing information about a security provided by a trading service. It includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, high price for the day, and the low price for the day. Level III gives institutions the ability to enter quotes, execute orders, and send information. Because the level III service offers a high level of market depth, it is restricted to registered Nasdaq market makers.",investopedia,1,59.33,10,12.2,9.81,11.5,8.54,12.625,12.07
Level 1 Assets,"Level 1 assets include listed stocks, bonds, funds, or any assets that have a regular mark-to-market mechanism for setting a fair market value. These assets are considered to have a readily observable, transparent prices, and therefore a reliable fair market value.",investopedia,1,42.21,12.5,0,13.29,14.7,10.82,14.25,15.03
Level 2 Assets,"Level 2 assets are financial assets and liabilities that are difficult to value. Although a fair value can be determined based on other data values or market prices, these assets do not have regular market pricing. Level 2 asset values, sometimes called ""mark-to-model"" assets, can be closely approximated using simple models and extrapolation methods. These methods use known, observable prices as parameters.",investopedia,1,38.82,11.7,12.2,14.15,13,10.52,10.25,12.01
Level 3 Assets,"Level 3 assets are financial assets and liabilities considered to be the most illiquid and hardest to value. They are not traded frequently, so it is difficult to give them a reliable and accurate market price.",investopedia,1,34.94,17.3,0,11.21,19.6,10.69,12.5,22.18
Level Death,"A level death benefit is a payout from a life insurance policy that is the same regardless of whether the insured person dies shortly after purchasing the policy or many years later. It can be contrasted with an increasing death benefit, which rises in value over time as the policyholder ages.",investopedia,1,45.59,13.2,0,10.45,13.8,9.86,17.75,16.47
Level-Premium Insurance,"Level-premium insurance is a type of term life insurance. With this type of coverage, premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases. As a result, the coverage can be advantageous over a long period of time: a policyholder keeps paying the same amount but has access to increased benefit coverage as the policy matures.",investopedia,1,41.7,12.7,16.3,12.01,13.4,9.94,15.83333333,16.02
Leverage,"Leverage results from using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.",investopedia,1,32.94,14,15,13.81,14.9,11.35,15,14.15
Leverage Ratio,"A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations. The leverage ratio category is important because companies rely on a mixture of equity and debt to finance their operations, and knowing the amount of debt held by a company is useful in evaluating whether it can pay off its debts as they come due. Several common leverage ratios are discussed below.",investopedia,1,27.32,20.3,0,10.75,22.7,10.15,20.16666667,22
Leveraged Buyback,"A leveraged buyback, also known as a leveraged share repurchase, is a corporate finance transaction that enables a company to repurchase some of its shares using debt. By reducing the number of shares outstanding, it increases the remaining owners' respective shares.",investopedia,1,42.21,12.5,0,13.98,14.9,10.82,15.25,16
Leveraged Buyout (LBO),"A leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company.",investopedia,1,39.67,13.4,0,11.15,13.4,8.9,16,12.68
Leveraged Employee Stock Ownership Plan (LESOP),"A leveraged employee stock ownership plan (LESOP) is an employee compensation program in which the sponsoring company leverages its own credit and borrows the money used to fund the plan and purchase shares from the company's treasury. These shares are then used for the stock ownership plan (ESOP), with the company subsequently paying back the original loan with annual contributions.",investopedia,1,41.03,15,0,14.17,19.2,10.65,21.5,18
Leveraged ETF,"A leveraged exchange-traded fund (ETF) is a marketable security that uses financial derivatives and debt to amplify the returns of an underlying index. While a traditional exchange-traded fund typically tracks the securities in its underlying index on a one-to-one basis, a leveraged ETF may aim for a 2:1 or 3:1 ratio.",investopedia,1,28.67,15.6,0,12.36,16.1,12.02,18.25,16.47
Leveraged Lease,"A leveraged lease is a lease agreement that is financed through the lessor with help from a third-party financial institution. In a leveraged lease, an asset is rented with borrowed funds.",investopedia,1,72.66,7,0,11.77,10.8,10.01,8.25,8.78
Leveraged Loan,"A leveraged loan is a type of loan that is extended to companies or individuals that already have considerable amounts of debt or poor credit history. Lenders consider leveraged loans to carry a higher risk of default, and as a result, a leveraged loan is more costly to the borrower. Default occurs when a borrower can't make any payments for an extended period. Leveraged loans for companies or individuals with debt tend to have higher interest rates than typical loans. These rates reflect the higher level of risk involved in issuing the loans.",investopedia,1,52.6,10.5,13,10.73,11,9.31,12.3,11.74
Leveraged Loan Index (LLI),"A leveraged loan index (LLI) is a market-weighted index that tracks the performance of institutional leveraged loans. Several indexes for the market exist, but the most widely followed one is the S&P/LSTA U.S. Leveraged Loan 100 Index.",investopedia,1,58.99,8.1,10.5,11.47,10.1,11.5,6.833333333,8.16
Leveraged Recapitalization,"A leveraged recapitalization is a corporate finance transaction in which a company changes its capitalization structure by replacing the majority of its equity with a package of debt securities consisting of both senior bank debt and subordinated debt. A leveraged recapitalization is also referred to as leveraged recap. In other words, the company will borrow money in order to buy back shares that were previously issued, and reduce the amount of equity in its capital structure. Senior managers/employees may receive additional equity, in order to align their interests with the bondholders and shareholders.",investopedia,1,30.91,14.7,16.5,14.97,16.5,9.89,17.125,16.2
Levered Free Cash Flow (LFCF),"Levered free cash flow (LFCF) is the amount of money a company has left remaining after paying all of its financial obligations. LFCF is the amount of cash a company has after paying debts, while unlevered free cash flow (UFCF) is cash before debt payments are made. Levered free cash flow is important because it is the amount of cash that a company can use to pay dividends and make investments in the business.",investopedia,1,63.32,10.6,13.6,9.06,12.5,7.64,15.66666667,13.12
Levy,A levy is the legal seizure of property to satisfy an outstanding debt.,investopedia,1,66.74,7.2,0,7.7,6.5,12.78,8.5,14.43
Liability,"A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.",investopedia,1,37,12.4,13,14.56,14.5,11.48,11.66666667,12.3
Liability Driven Investment (LDI),"A liability-driven investment, otherwise known as liability-driven investing, is primarily slated toward gaining enough assets to cover all current and future liabilities. This type of investing is common when dealing with defined-benefit pension plans because the liabilities involved quite frequently climb into billions of dollars with the largest of the pension plans.",investopedia,1,11.25,18.2,0,18.51,21,11.61,18.5,15.78
Liability Insurance,"The term liability insurance refers to an insurance product that provides an insured party with protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable. Intentional damage and contractual liabilities are generally not covered in liability insurance policies. Unlike other types of insurance, liability insurance policies pay third parties—not policyholders.",investopedia,1,18.86,15.2,15.6,17.58,16.5,10.32,14,13.35
Liar Loan,"A liar loan is a category of mortgage loan that requires little or no documentation of income. Because the lender does not verify income and assets by looking at W-2 forms, income tax returns and other records, such loans are said to be ""liar loans"" because lenders simply take the borrower at their word.",investopedia,1,60.99,11.5,0,9.35,14.1,10.24,15.5,13.76
Liar's Poker,Liar's Poker is a game often associated with Wall Street traders. The game involves wagering on the aggregate amount of numbers appearing on the serial numbers of players' dollar bills.,investopedia,1,56.25,9.1,0,11.71,10.7,10.7,9,12.67
Libel,"Libel involves the act of publishing a statement about an individual, either in written form or broadcast over media platforms such as radio, television, or the Internet, that is untrue and threatens to harm the reputation and/or livelihood of the targeted person. Libel is considered a civil wrong (tort) and can, therefore, be the basis of a lawsuit.",investopedia,1,42.04,14.6,0,11.73,17,10.52,18,16.43
Liberty Bond,"A Liberty Bond is a debt obligation issued by the U.S. Department of the Treasury in conjunction with the Federal Reserve. Also known as a Liberty Loan, it was a war bond, issued in four installments in 1917-18 as a means to finance the U.S.' participation in World War I and the Allied war effort in Europe.",investopedia,1,60.65,9.5,12.5,7.37,8.9,10.12,12.16666667,11.81
LIBOR Scandal,"The LIBOR Scandal was a highly-publicized scheme in which bankers at several major financial institutions colluded with each other to manipulate the London Interbank Offered Rate (LIBOR). The scandal sowed distrust in the financial industry and led to a wave of fines, lawsuits, and regulatory actions. Although the scandal came to light in 2012, there is evidence suggesting that the collusion in question had been ongoing since as early as 2003.",investopedia,1,38.96,13.7,15.5,13.06,15.4,10.82,16.5,16.24
Licensee,"A licensee is any business, organization, or individual that has been granted legal permission by another entity to engage in an activity. The permission, or license, can be given on an express or implied basis.",investopedia,1,36.79,12.5,0,10.79,11.2,10.37,12.25,12.71
Licensing Agreement,"The term licensing agreement refers to a legal, written contract between two parties wherein the property owner gives permission to another party to use their brand, patent, or trademark. The agreement, which is set between the licensor (the property owner) and the licensee (the permitted party), contains details on the type of licensing agreement, the terms of usage, and how the licensor is to be compensated. Contract types vary based on what is being licensed. Licensing agreements also alleviate any disputes related to sales, issues of quality, and royalties.",investopedia,1,40.38,13.2,14.2,13.12,15,10.77,14.875,13.41
Licensing Fee,"The term ""licensing fee"" can be used in several contexts, where it’s most commonly used to describe an amount of money paid to an entity for a certain right or ability. A licensing fee can be an amount of money paid by an individual or business to a government agency for the privilege of performing a certain service or engaging in a specific line of business. Licensing fees can be paid for trademarks, copyright, or patents, among others.",investopedia,1,53.55,12.3,15,9.41,13.6,8.57,17.33333333,15.02
Lien,"A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets.",investopedia,1,63.29,8.5,12.3,7.31,7.4,8.69,10.8,11.44
Lien Sale,"A lien sale is the sale of the claim—or a hold—placed on an asset to satisfy an unpaid debt. Typically, lien sales are conducted as public auctions, and the lien is on real estate, automobiles, and other personal property.",investopedia,1,51.68,10.9,0,9.17,10.6,10.68,12.75,13.95
Lien Waiver,A lien waiver is a written agreement between a payer and a counterparty where said counterparty gives up their right to place a lien on the payer's property or goods.,investopedia,1,49.49,13.8,0,9.41,15.1,9.34,18,14.67
Life Annuity,"The term life annuity refers to a financial product that features a predetermined periodic payout amount until the death of the annuity owner—called the annuitant. An annuitant typically pays into the annuity periodically when they are still working. Annuitants may also buy the annuity product in one large, lump-sum purchase—usually at retirement. Life annuities are commonly used to provide guaranteed and/or supplemental retirement income that cannot be outlived.",investopedia,1,20.38,14.6,15.9,15.95,14.8,10.05,13.5,15.04
Life Cycle,"A life cycle is a course of events that brings a new product into existence and follows its growth into a mature product and eventual critical mass and decline. The most common steps in the life cycle of a product include product development, market introduction, growth, maturity, and decline/stability.",investopedia,1,38.15,14,0,12.48,15.4,10.97,15.75,15.51
Life-Cycle Fund,"Life-cycle funds are asset-allocation funds in which the share of each asset class is automatically adjusted to lower risk as the desired retirement date approaches. As a practical matter, this usually means that the percentage of bonds and other fixed-income investments increases. Life-cycle funds are also known as ""age-based funds"" or ""target-date retirement funds.""",investopedia,1,36.28,12.7,15.9,14.96,15.2,10.38,14,14.61
Life-Cycle Hypothesis (LCH),The life-cycle hypothesis (LCH) is an economic theory that describes the spending and saving habits of people over the course of a lifetime. The concept was developed by Franco Modigliani and his student Richard Brumberg in the early 1950s. The theory is that individuals seek to smooth consumption throughout their lifetime by borrowing when their income is low and saving when their income is high.,investopedia,1,49.45,11.8,13,12.18,13.8,10.06,13.83333333,12.99
Life Estate,"A life estate is property, usually a residence, that an individual owns and may use for the duration of their lifetime. This person, called the life tenant, shares ownership of the property with another person or persons, who will automatically receive the title to the property upon the death of the life tenant.",investopedia,1,36.12,14.8,0,10.8,15,9.12,18.25,15.88
Life Expectancy,"Life expectancy is the statistical age that a person is expected to live until, based on actuarial data. There are many uses for it in the financial world, including life insurance, pension planning, and U.S. Social Security benefits. In most countries, the calculations for this actuarial age is derived from a national statistical agency based on large amounts of data.",investopedia,1,47.79,10.3,13.4,11.42,10.7,10.43,10.75,13.33
Life Income Fund (LIF),"A life income fund (LIF) is a type of registered retirement income fund (RRIF) offered in Canada that can be used to hold locked-in pension funds as well as other assets for eventual payout as retirement income. A life income fund cannot be withdrawn in a lump sum. Owners must use the fund in a manner that supports retirement income for their lifetime. Each year's Income Tax Act specifies the minimum and maximum withdrawal amounts for RRIFs, which encompasses LIFs. The Income Tax Act’s RRIF stipulations take into consideration fund balances and an annuity factor.",investopedia,1,60.65,9.5,12.3,11.37,11.9,10.23,12.1,12.23
Life Insurance,"Life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.",investopedia,1,24.27,15.2,0,13.05,14.3,9.11,16.25,15.11
Life Settlement,"A life settlement refers to the sale of an existing insurance policy to a third party for a one-time cash payment. Payment is more than the surrender value but less than the actual death benefit. After the sale, the purchaser becomes the policy's beneficiary and assumes payment of its premiums. By doing so, they receive the death benefit when the insured dies.",investopedia,1,55.74,9.3,13,9.86,9.2,8.23,10.75,12.65
Lifestyle Creep,Lifestyle creep occurs when an individual's standard of living improves as their discretionary income rises and former luxuries become new necessities. The rise in discretionary income can happen either through an increase in income or decrease in costs.,investopedia,1,43.73,11.9,0,15.37,15,9.98,12,11.81
Lifetime Cost,"Lifetime cost is the total of all other expenses relating to a good, like a car or a home, over the expected life of the product. The sum of the lifetime cost includes the amount paid to purchase the item.",investopedia,1,76.56,7.6,0,6.21,8.1,8.18,11.5,11
Lifetime Learning Credit,"The Lifetime Learning Credit (LLC) is a provision of the U.S. federal income tax code that lets parents and students lower their tax liability by up to $2,000 to help offset higher education expenses.",investopedia,1,36.97,16.6,0,10.63,18.7,14.61,22,19.48
LIFO Liquidation,"A LIFO liquidation is when a company sells the most recently acquired inventory first. It occurs when a company that uses the last-in, first-out (LIFO) inventory costing method liquidates its older LIFO inventory. A LIFO liquidation occurs when current sales exceed purchases, resulting in the liquidation of any inventory not sold in a previous period.",investopedia,1,27.52,14,15.9,13.29,13.4,10,14.16666667,13.14
LIFO Reserve,"LIFO reserve is an accounting term that measures the difference between the first in, first out (FIFO) and last in, first out (LIFO) cost of inventory for bookkeeping purposes. The LIFO reserve is an account used to bridge the gap between FIFO and LIFO costs when a company uses the FIFO method to track its inventory but reports under the LIFO method in the preparation of its financial statements.",investopedia,1,36.46,16.7,0,10.69,18.6,9.01,21.75,17.28
Lightning Network,"The lightning network is a second layer technology applied to bitcoin that uses micropayment channels to scale its blockchain’s capability to conduct transactions more efficiently. Transactions conducted on lightning networks are faster, less costly, and more readily confirmed than those conducted directly on the bitcoin blockchain (i.e., on-chain).",investopedia,1,30.2,15,0,18.69,20.5,12.39,17,16.27
Like-for-Like Sales,Like-for-like sales are used as an adjusted growth metric that includes revenues generated from stores or products with similar characteristics while omitting any with distinct differences that could skew the numbers.,investopedia,1,31.55,16.6,0,17.76,22.5,13.32,21.5,18.85
Like-Kind Exchange,A like-kind exchange is a tax-deferred transaction that allows for the disposal of an asset and the acquisition of another similar asset without generating a capital gains tax liability from the sale of the first asset.,investopedia,1,18.02,19.7,0,12.49,20.6,9.81,26,21.07
Like-Kind Property,"The term like-kind property refers to two real estate assets of a similar nature regardless of grade or quality that can be exchanged without incurring any tax liability. The Internal Revenue Code (IRC) defines a like-kind property as any held for investment, trade, or business purposes under Section 1031, making them a 1031 exchange. This means both properties involved in the exchange must be for business or investment purposes. Personal residences, therefore, do not qualify as like-kind properties.",investopedia,1,43.22,12.1,14.9,13.52,14.2,9.87,14,14.47
Lilly Ledbetter Fair Pay Act,The Lilly Ledbetter Fair Pay Act of 2009 is a law enacted by Congress that bolstered worker protections against pay discrimination. The act allows individuals who face pay discrimination to seek rectification under federal anti-discrimination laws.,investopedia,1,19.37,15,0,16.41,15.5,10.67,13.5,14.98
Limit Down,The limit down price is the maximum allowable decline in the price of a stock or commodity in a single trading day. The limits were introduced to forestall unusual market volatility and counteract the panic selling that tends to compound an initial price decline.,investopedia,1,49.15,11.9,0,11.43,13.1,10.83,14.5,15.16
Limit Order Book,A limit order book is a record of outstanding limit orders maintained by the security specialist who works at the exchange. A limit order is a type of order to buy or sell a security at a specific price or better. A buy limit order is an order to buy at a preset price or lower while a sell limit order is an order to sell a security at a pre-specified price or higher.,investopedia,1,54.86,11.7,11.9,6.04,9.9,7.85,14.66666667,12.58
Limited Common Elements,"The term limited common element refers to an aspect of a condominium unit or complex that is considered to be the property of the community or homeowners association (HOA) rather than that of the tenant. Limited common elements may be found within or outside individual condo units. Although they are deemed common, their use is limited to the occupant of the unit. Examples include balconies, (shared) outdoor space such as patios and terraces, and parking lots and garages.",investopedia,1,51.68,10.9,13.8,11.49,12.3,11.28,13.25,13.95
Limited Company (LC),"A limited company (LC) is a general form of incorporation that limits the amount of liability undertaken by the company's shareholders. It refers to a legal structure that ensures that the liability of company members or subscribers is limited to their stake in the company by way of investments or commitments. In a legal sense, a limited company is a person.",investopedia,1,33.95,13.6,16.3,10.68,12,9.04,15.5,13.37
Limited Government,"A limited government is one whose legalized force and power is restricted through delegated and enumerated authorities. Countries with limited governments have fewer laws about what individuals and businesses can and cannot do. In many cases, such as the United States, it is a constitutionally limited government, bound to specific principles and actions by a state or federal constitution.",investopedia,1,26.1,14.5,17.1,14.85,15,10.23,15.83333333,17.37
Limited Liability,"Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company (LLC). In other words, investors' and owners' private assets are not at risk if the company fails. In Germany, it's known as Gesellschaft mit beschränkter Haftung (GmbH).",investopedia,1,44.44,11.6,13.6,11.84,12.4,11.43,12.5,11.68
Limited Liability Company (LLC),A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company's debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.,investopedia,1,13.78,17.2,0,15.73,17.4,11.19,18.75,18.76
Limited Partner,A limited partner is a part-owner of a company whose liability for the firm's debts cannot exceed the amount that an individual invested in the company. Limited partners are often called silent partners.,investopedia,1,37.81,12.1,0,11.77,11.2,8.76,12.25,11.45
Limited Partnership (LP),"A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner of a limited partnership has unlimited liability for the debt, and any limited partners have limited liability up to the amount of their investment.",investopedia,1,31.51,14.5,17.5,13.29,15.1,8.01,17.66666667,12.61
Limited Partnership Unit (LPU),"A limited partnership unit, or LPU, is an ownership unit in a publicly traded limited partnership, or master limited partnership (MLP). This trust gives the unit holder a stake in the income generated by the partnership company. A limited partnership unit is also referred to as a master limited partnership unit or a limited partner unit.",investopedia,1,44.03,11.8,15.9,11.31,11.8,7.95,14.33333333,10.34
Limited Power of Attorney (LPOA),"Limited Power of Attorney (LPOA) is an authorization that permits a portfolio manager to perform specific functions on behalf of the account owner. In general, the LPOA allows the manager to execute an agreed-upon investment strategy and take care of routine related business without contacting the account holder.",investopedia,1,30.2,15,0,14.57,16.8,10.75,18.5,17.93
Lindahl Equilibrium,"Lindahl equilibrium is a state of equilibrium in a quasi-market for a pure public good. Like a competitive market equilibrium, the supply and demand for the good are balanced, in addition to the cost and revenue to produce the good. Lindahl equilibrium depends on the possibility of implementing an effective Lindahl tax, first proposed by the Swedish economist Erik Lindahl.",investopedia,1,42.72,12.3,14.1,12.59,13.4,9.37,13.66666667,12.67
Line Chart,"A line chart is a graphical representation of an asset's historical price action that connects a series of data points with a continuous line. This is the most basic type of chart used in finance, and it typically only depicts a security's closing prices over time. Line charts can be used for any timeframe, but they most often make use of day-to-day price changes.",investopedia,1,58.32,10.4,11.9,9.34,11.5,9.87,13,12.27
Line Graph,A line graph—also known as a line plot or a line chart—is a graph that uses lines to connect individual data points. A line graph displays quantitative values over a specified time interval.,investopedia,1,63.19,8.5,0,9.86,9.4,10.2,10.25,11.45
Line of Best Fit,"Line of best fit refers to a line through a scatter plot of data points that best expresses the relationship between those points. Statisticians typically use the least squares method to arrive at the geometric equation for the line, either though manual calculations or regression analysis software. A straight line will result from a simple linear regression analysis of two or more independent variables. A regression involving multiple related variables can produce a curved line in some cases.",investopedia,1,51.68,10.9,14.6,13.63,13.8,10.27,13.75,14.47
Line of Business Limitations,"Line of business limitations is a federal income tax rule applied to fringe benefits that employers provide their employees. It states that if a company is engaged in multiple lines of business and an employee receives a fringe benefit from a line of the company's business that she does not work in, she must pay taxes on that benefit.",investopedia,1,49.99,13.6,0,10.46,15.7,9.38,20.25,17.9
Line of Credit (LOC),"A line of credit (LOC) is a preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit.",investopedia,1,71.48,9.5,0,5.06,9.5,8.35,13.5,11.6
Linear Relationship,"A linear relationship (or linear association) is a statistical term used to describe a straight-line relationship between two variables. Linear relationships can be expressed either in a graphical format where the variable and the constant are connected via a straight line or in a mathematical format where the independent variable is multiplied by the slope coefficient, added by a constant, which determines the dependent variable.",investopedia,1,21.57,18.3,0,15.79,21.7,10.35,22.75,20.38
Linearly Weighted Moving Average (LWMA),"A linearly weighted moving average (LWMA) is a moving average calculation that more heavily weights recent price data. The most recent price has the highest weighting, and each prior price has progressively less weight. The weights drop in a linear fashion. LWMAs are quicker to react to price changes than simple moving averages (SMA) and exponential moving averages (EMA).",investopedia,1,47.99,10.2,11.7,12.11,11.2,10.53,8.625,10.67
Linked Savings Account,"A linked savings account is a savings account that is connected to another account such as a checking or negotiable order of withdrawal (NOW) account. Generally, linked savings accounts are held at the same bank as the customer's other accounts, making it easier to transfer funds between accounts.",investopedia,1,47.12,12.7,0,12.6,15.3,8.45,15,13.77
Lintner's Model,The Lintner model is an economic formula for determining an optimal corporate dividend policy. It was proposed in 1956 by former Harvard Business School professor John Lintner and focuses on two core notions:,investopedia,1,37.81,12.1,0,12.99,11.9,13.07,12.75,17.51
Liquid Alternatives,"Liquid alternative investments (or liquid alts) are mutual funds or exchange-traded funds (ETFs) that aim to provide investors with diversification and downside protection through exposure to alternative investment strategies. These products' selling point is that they are liquid, meaning that they can be bought and sold daily, unlike traditional alternatives which offer monthly or quarterly liquidity. They come with lower minimum investments than the typical hedge fund, and investors don't have to pass net-worth or income requirements to invest.",investopedia,1,27.86,15.9,16.7,16.95,20.1,11.34,18.83333333,17.61
Liquid Asset,"A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth. For the purposes of financial accounting, a company’s liquid assets are reported on its balance sheet as current assets.",investopedia,1,54.22,9.9,12.6,11.77,11.4,9.59,11.25,13.27
Liquid Market,"A liquid market a one with many available buyers and sellers and comparatively low transaction costs. The details of what makes a market liquid may vary depending on the asset being exchanged. In a liquid market, it is easy to execute a trade quickly and at a desirable price because there are numerous buyers and sellers and the product being exchanged is standardized and in high demand. In a liquid market despite daily changes in supply and demand the spread between what the buyer wants to pay and what sellers will offer remains relatively small.",investopedia,1,55.78,11.4,11.2,10.68,13.1,9.14,13.875,12.89
Liquidate,Liquidate means converting property or assets into cash or cash equivalents by selling them on the open market. Liquidation similarly refers to the process of bringing a business to an end and distributing its assets to claimants.,investopedia,1,52.7,10.5,0,12.82,12.5,10.1,12.75,14.97
Liquidated Damages,Liquidated damages are presented in certain legal contracts as an estimate of otherwise intangible or hard-to-define losses to one of the parties. It is a provision that allows for the payment of a specified sum should one of the parties be in breach of contract.,investopedia,1,48.64,12.1,0,10.74,12.8,10.02,15.25,14.33
Liquidating Dividend,"A liquidating dividend is a type of payment that a corporation makes to its shareholders during a partial or full liquidation. For the most part, this form of distribution is made from the company's capital base. As a return of capital, this distribution is typically not taxable for shareholders. A liquidating dividend is distinguished from regular dividends that are issued from the company's operating profits or retained earnings.",investopedia,1,37.3,12.3,15.6,13.11,12.6,9.12,13.25,13.86
Liquidation,"Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. General partners are subject to liquidation.",investopedia,1,53.71,10.1,14.2,11.25,11.2,9.47,12.5,13.29
Liquidation Margin,The liquidation margin is the value of all of the positions in a margin account. These can include both long and short positions.,investopedia,1,68.26,6.6,0,8.04,6.2,6.95,6.25,8.08
Liquidation Preference,"A liquidation preference is a clause in a contract that dictates the payout order in case of a corporate liquidation. Typically, the company's investors or preferred stockholders get their money back first, ahead of other kinds of stockholders or debtholders, in the event that the company must be liquidated. Liquidation preferences are frequently used in venture capital contracts, hybrid debt instruments, promissory notes and other structured private capital transactions, to clarify what investors get paid and in which order during a liquidation event, such as the sale of the company.""",investopedia,1,32.57,16.2,18.2,14.98,19.9,10.21,22,17.78
Liquidation Value,"Liquidation value is the net value of a company's physical assets if it were to go out of business and the assets sold. The liquidation value is the value of company real estate, fixtures, equipment, and inventory. Intangible assets are excluded from a company's liquidation value.",investopedia,1,39.03,11.6,13.6,10.9,10.4,7.83,11,11.34
Liquidator,"A liquidator is a person or entity that liquidates something—generally assets. When assets are liquidated, they are sold on the open market for cash or other equivalents. The liquidator is legally empowered to act on behalf of the company in various capacities.",investopedia,1,40.35,11.1,14.1,11.94,10.3,8.84,10.66666667,14.17
Liquidity,Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.,investopedia,1,54.73,9.7,0,9.51,9.1,8.76,10.75,12.66
Liquidity Adjustment Facility,"A liquidity adjustment facility (LAF) is a tool used in monetary policy, primarily by the Reserve Bank of India (RBI) that allows banks to borrow money through repurchase agreements (repos) or to make loans to the RBI through reverse repo agreements. This arrangement is effective in managing liquidity pressures and assuring basic stability in the financial markets. In the United States, the Federal Reserve transacts repos and reverse repos under its open market operations.",investopedia,1,29.48,15.3,16.3,13.81,16.6,11.26,17.66666667,17.99
Liquidity Coverage Ratio (LCR),"The liquidity coverage ratio (LCR) refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations. This ratio is essentially a generic stress test that aims to anticipate market-wide shocks and make sure that financial institutions possess suitable capital preservation, to ride out any short-term liquidity disruptions, that may plague the market.",investopedia,1,23.09,17.7,0,16.78,22,11.8,23.5,20.14
Liquidity Crisis,A liquidity crisis is a financial situation characterized by a lack of cash or easily-convertible-to-cash assets on hand across many businesses or financial institutions simultaneously.,investopedia,1,-13.13,21.3,0,19.44,21.4,12.46,21.5,24.4
Liquidity Event,"A liquidity event is an acquisition, merger, initial public offering (IPO), or other action that allows founders and early investors in a company to cash out some or all of their ownership shares.",investopedia,1,37.98,16.2,0,11.09,18.5,11.49,21.5,18.05
Liquidity Ratio,"Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio, quick ratio, and operating cash flow ratio.",investopedia,1,17.68,17.8,0,14.92,19,10.1,21.5,18.34
Liquidity Trap,"A liquidity trap is a contradictory economic situation in which interest rates are very low and savings rates are high, rendering monetary policy ineffective. First described by economist John Maynard Keynes, during a liquidity trap, consumers choose to avoid bonds and keep their funds in cash savings because of the prevailing belief that interest rates could soon rise (which would push bond prices down). Because bonds have an inverse relationship to interest rates, many consumers do not want to hold an asset with a price that is expected to decline. At the same time, central bank efforts to spur economic activity are hampered as they are unable to lower interest rates further to incentivize investors and consumers.",investopedia,1,41.74,14.7,15.9,13.07,17.8,10.08,16.75,16.85
Liquified Natural Gas (LNG),"Liquefied natural gas (LNG) is natural gas that has been converted to a liquid form for the ease and safety of natural gas transport. Natural gas is cooled to approximately -260 F, creating a clear, colorless, and non-toxic liquid that can be transported from areas with a large supply of natural gas to areas that demand more natural gas.",investopedia,1,41.53,14.8,0,10.34,16,10.18,21.25,16.55
Lis Pendens,"A lis pendens is an official notice to the public that a lawsuit involving a claim on a property has been filed. Lis pendens is connected to the concept that a buyer of a property must assume any litigation that exists pertaining to the property. If a bank is suing the owner of a lot and a new buyer purchases the lot, then the new owner must face the lawsuit; sale of the property does not prevent the plaintiff from seeking redress via litigation. It can represent a contingent liability.",investopedia,1,48.64,12.1,13.8,8.65,11,9.14,14.75,13.44
Lisbon Treaty,"The Lisbon Treaty, also known as the Treaty of Lisbon, updated regulations for the European Union, establishing a more centralized leadership and foreign policy, a proper process for countries that wish to leave the Union, and a streamlined process for enacting new policies.",investopedia,1,27.83,20.1,0,14.23,25.6,11.64,29.5,24.64
Listed,Listed describes companies that are included and traded on a given stock exchange. Most exchanges have specific requirements that companies must meet in order to be listed and continue to stay listed.,investopedia,1,46.78,10.7,0,12.7,11.4,8.87,11,12.65
Listed Option,"A listed option, or exchange-traded option, is a type of derivative security traded on a registered exchange. Listed options give the holder the right, but not the obligation, to buy or sell a specific amount of the underlying asset at a fixed price by a particular date.",investopedia,1,47.62,12.5,0,10.04,13,9.51,15.75,15.36
Listed Property,"The term listed property refers to a certain type of depreciable property that may be used primarily for business purposes. To be considered listed property, an item must be used for more than 50% for a company's business. That means assets may be used for personal purposes for the remainder of the time. Listed property is subject to a special set of tax rules for the taxpayer.",investopedia,1,54.42,9.8,13.4,9.16,9.2,8.48,11.625,12.09
Listed Security,"A listed security is a financial instrument that is traded through an exchange, such as the NYSE or Nasdaq. When a private company decides to go public and issue shares, it will need to choose an exchange on which to be listed. To do so, it must be able to meet that exchange's listing requirements and pay both the exchange's entry and yearly listing fees. Listing requirements vary by exchange and include minimum stockholder's equity, a minimum share price, and a minimum number of shareholders. Exchanges have listing requirements to ensure that only high-quality securities are traded on them and to uphold the exchange's reputation among investors.",investopedia,1,49.75,11.6,13.3,11.6,13.4,9.13,13,12.67
Listing Agreement,"A listing agreement is a contract under which a property owner (as principal) authorizes a real estate broker (as agent) to find a buyer for the property on the owner's terms, for which service the owner pays a commission set forth in the agreement.",investopedia,1,35.28,19.3,0,9.82,22.6,10.84,27,21.24
Listing Requirements,"Listing requirements comprise the various criteria and minimum standards established by stock exchanges, such as the New York Stock Exchange, to allow membership in the exchange. Only if an exchange's listing requirements are met can a company list shares for trading.",investopedia,1,42.21,12.5,0,14.27,15,10.05,14.25,14.05
Living Trust,"A living trust is a legal document, or trust, created during an individual's lifetime where a designated person, the trustee, is given responsibility for managing that individual's assets for the benefit of the eventual beneficiary. A living trust is designed to allow for the easy transfer of the trust creator or settlor's assets while bypassing the often complex and expensive legal process of probate. Living trust agreements designate a trustee who holds legal possession of assets and property that flow into the trust.",investopedia,1,34.9,15.3,16.3,13.58,17.8,10.15,19.16666667,18.31
Living Wage,"A living wage refers to a theoretical income level that allows individuals or families to afford adequate shelter, food, and other necessities. The goal of a living wage is to allow employees to earn enough income for a satisfactory standard of living and prevent them from falling into poverty.",investopedia,1,29.69,15.2,0,11.78,14.6,9.69,15.75,14.7
Living Will,A living will—also known as an advance directive—is a legal document that specifies the type of medical care that an individual does or does not want in the event they are unable to communicate their wishes.,investopedia,1,34.94,17.3,0,11.21,19.3,10.69,24,21.07
LLC Operating Agreement,An LLC operating agreement is a document that customizes the terms of a limited liability company according to the specific needs of its owners. It also outlines the financial and functional decision-making in a structured manner. It is similar to articles of incorporation that govern the operations of a corporation.,investopedia,1,20.68,14.5,16.3,13.16,12.2,11.73,13.66666667,18.68
Lloyd's Of London,"Lloyd's of London is a British insurance market where members operate as syndicates to insure and spread out the risks of different businesses, organizations, and individuals. The syndicates are specialized in different types of risks and each syndicate decides which type of risk to insure. The main purpose of Lloyd's of London is to act as an intermediary between clients, underwriters, brokers, and insurance companies.",investopedia,1,40.99,12.9,15.9,13.87,15.4,10.79,15.83333333,15.45
Load,A load is a sales charge or commission charged to an investor when buying or redeeming shares in a mutual fund. Sales charge commissions can be structured in a number of ways. They are determined by the mutual fund company and charged by mutual fund intermediaries in mutual fund transactions.,investopedia,1,62.98,8.6,14.1,10.5,10,9.2,12,12.28
Load Fund,"A load fund is a mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary, such as a broker, financial planner or investment advisor, for his time and expertise in selecting an appropriate fund for the investor. The load is either paid up front at the time of purchase (front-end load), when the shares are sold (back-end load), or as long as the fund is held by the investor (level-load).",investopedia,1,60.28,11.7,14.1,8.83,14.4,8.62,17.5,15.9
Loan,"The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans.",investopedia,1,55.78,11.4,14.9,9.93,13,9.64,16.125,14.57
Loan Application Fee,"A loan application fee is charged to a potential borrower for processing and underwriting an application for a loan, such as a mortgage or car loan. Loan application fees may be required for all types of loans and are intended to pay for the costs of the process of loan approval, but are considered by many observers to be unnecessary or overly costly.",investopedia,1,47.96,14.4,0,9.76,16.1,10.46,20.75,17.68
Loan Commitment,A loan commitment is an agreement by a commercial bank or other financial institution to lend a business or individual a specified sum of money. A loan commitment is useful for consumers looking to buy a home or a business planning to make a major purchase.,investopedia,1,48.13,12.3,0,9.52,11.8,8.55,15,14.42
Loan Committee,"A loan committee is the lending or management committee of a bank or other lending institution. It generally consists of upper-level officers with management authority. The loan committee analyzes and subsequently approves or rejects any loan that the initial loan officer does not have the authority to approve, typically those of large sizes or higher risk. The committee ensures that the loan meets the institution’s standard lending policy. If it does, the committee can agree to fund and disburse the loan with a binding commitment.",investopedia,1,45.76,11.1,14.6,12.82,12.2,9.5,12.5,12.45
Loan Constant,"A loan constant is a percentage that shows the annual debt service on a loan compared to its total principal value. The calculation for a loan constant is the annual debt service divided by the total loan amount. When shopping for a loan, borrowers can compare the loan constant of various loans before making a decision. The loan with the lowest loan constant will have lower debt service requirements, meaning the borrower will pay less in interest and principal over a given period. Loan constants are only applicable to fixed interest rate loans and not loans with variable interest rates.",investopedia,1,51.18,11.1,13.7,10.97,11.8,8.73,13.4,13.2
Loan Credit Default Swap (LCDS),"A loan credit default swap (LCDS) is a type of credit derivative in which the credit exposure of an underlying loan is exchanged between two parties. A loan credit default swap's structure is the same as a regular credit default swap (CDS), except that the underlying reference obligation is limited strictly to syndicated secured loans, rather than any type of corporate debt.",investopedia,1,40.01,15.4,0,12.02,18.1,11.03,20.5,18.21
Loan Credit Default Swap Index (Markit LCDX),"The Loan Credit Default Swap Index (Markit LCDX) is a specialized index of loan-only credit default swaps (CDS) covering 100 North American companies with unsecured debt trading in broad secondary markets. The LCDX is traded over-the-counter, and several large investment banks manage it, provide liquidity, and assist in pricing individual credit default swaps. IHS Markit Ltd, headquartered in London, is the index provider.",investopedia,1,41.7,12.7,14.1,14.85,16.3,12.45,14.16666667,13.48
Loan Grading,"Loan grading is a classification system that involves assigning a quality score to a loan based on a borrower's credit history, quality of the collateral, and the likelihood of repayment of the principal and interest. A score can also be applied to a portfolio of loans. Loan grading is part of a lending institution's loan review or credit risk system and is usually an aspect of the credit underwriting and approval processes.",investopedia,1,38.66,13.8,16.3,11.2,13.9,10.31,17.33333333,17.38
Loan Life Coverage Ratio (LLCR),"The loan life coverage ratio (LLCR) is a financial ratio used to estimate the solvency of a firm, or the ability of a borrowing company to repay an outstanding loan. LLCR is calculated by dividing the net present value (NPV) of the money available for debt repayment by the amount of outstanding debt.",investopedia,1,44.58,13.6,0,9.58,14.1,9.72,19.25,18.15
Loan Lock,A loan lock refers to a lender’s promise to offer a borrower a specified interest rate on a mortgage and to hold that rate for an agreed-upon period of time.,investopedia,1,57.95,12.6,0,7.67,13.7,9.34,19,17.33
Loan Loss Provision,"A loan loss provision is an income statement expense set aside as an allowance for uncollected loans and loan payments. This provision is used to cover different kinds of loan losses such as non-performing loans, customer bankruptcy, and renegotiated loans that incur lower-than-previously-estimated payments. Loan loss provisions are then added to the loan loss reserves, a balance sheet item that represents the total amount of loan losses subtracted a company's loans. ",investopedia,1,38.66,13.8,14.6,14.74,17.1,10.53,16,15.71
Loan Modification,"Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.",investopedia,1,65.56,9.7,0,7.38,10.1,8.61,15.25,15.22
Loan Note,"A loan note is an extended form of a generic I Owe You (IOU) document from one party to another. It enables a payee (borrower) to receive payments from a lender, possibly with an interest rate attached, over a set period of time, and ending on the date at which the entire loan is to be repaid. Loan notes are usually provided in lieu of cash at the payee's request.",investopedia,1,64.75,10,13,6.74,10.2,9.53,14.66666667,13.89
Loan Officer,"A loan officer is a representative of a bank, credit union, or other financial institution who assists borrowers in the application process. Loan officers are often called mortgage loan officers since that is the most complex and costly type of loan most consumers encounter. However, most loan officers assist consumers and small business owners with a wide variety of secured and unsecured loans.",investopedia,1,41.7,12.7,14.6,13.11,14.2,10.44,14.5,13.48
Loan Participation Note (LPN),"A loan participation note (LPN) is a fixed-income security that permits investors to buy portions of an outstanding loan or package of loans. LPN holders participate on a pro-rata basis in collecting interest and principal payments, and are similarly exposed to a proportional risk of default.",investopedia,1,31.21,14.6,0,13.41,15.5,12.67,17,17.03
Loan Production Office (LPO),"A loan production office (LPO) is an administrative division of a bank, that, as the name implies, deals solely with loan-related activities. The Federal Reserve defines an LPO as “a staffed facility, other than a branch, which is open to the public and provides lending-related services such as loan information and applications.”",investopedia,1,28.17,15.8,0,13,16.9,10.7,18,17.32
Loan Servicing,"Loan servicing refers to the administrative aspects of a loan from the time the proceeds are dispersed to the borrower until the loan is paid off. Loan servicing includes sending monthly payment statements, collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance (and managing escrow funds), remitting funds to the note holder, and following up any delinquencies.",investopedia,1,39.5,15.6,0,15.97,21.5,11.21,21.75,18.31
Loan Shark,"A loan shark is a person who – or an entity that – loans money at extremely high interest rates and often uses threats of violence to collect debts. The interest rates are generally well above an established legal rate, and often loan sharks are members of organized crime groups.",investopedia,1,54.56,11.9,0,9.46,12.8,10.88,16.5,15.6
Loan Stock,"Loan stock refers to shares of common or preferred stock that are used as collateral to secure a loan from another party. The loan earns a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a predetermined conversion rate, as with an irredeemable convertible unsecured loan stock (ICULS).",investopedia,1,52.53,12.6,15.5,11.09,15.3,9.26,18.16666667,16.23
Loan Syndication,"Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender's risk exposure levels. Thus, multiple lenders form a syndicate to provide the borrower with the requested capital.",investopedia,1,56.59,11.1,14.6,10.57,12.8,9.58,15.5,13.84
Loan-to-Cost Ratio (LTC),"The loan-to-cost (LTC) ratio is a metric used in commercial real estate construction to compare the financing of a project (as offered by a loan) with the cost of building the project. The LTC ratio allows commercial real estate lenders to determine the risk of offering a construction loan. It also allows developers to understand the amount of equity they retain during a construction project. Similar to the LTC ratio, the loan-to-value (LTV) ratio also compares the construction loan amount but with the fair-market value of the project after completion.",investopedia,1,48.64,12.1,14.9,12.19,14.4,8.44,15.5,13
Loan-to-Deposit Ratio (LDR),"The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's total loans to its total deposits for the same period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements. Conversely, if the ratio is too low, the bank may not be earning as much as it could be.",investopedia,1,69.82,8.1,11.7,7.43,8.6,8.22,11.375,11.16
Loan-to-Value (LTV),"The loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Typically, loan assessments with high LTV ratios are considered higher risk loans. Therefore, if the mortgage is approved, the loan has a higher interest rate.",investopedia,1,47.49,10.4,13.6,13.62,12.8,11.26,11,13.95
Lobby,"The term lobby refers to a group of people who band together and try to influence people in public office and politicians. A lobby is typically formed to influence government officials to act in a way that is beneficial to the lobby's or an industry's best interests, either through favorable legislation or by blocking unfavorable measures. The term is also used as a verb to describe the influence that a group of individuals exerts over other people.",investopedia,1,45.39,13.3,15.5,11.2,14.7,8.81,17.5,15.47
Local Tax,"A local tax is an assessment by a state, county, or municipality to fund public services ranging from education to garbage collection and sewer maintenance. Local taxes come in many forms, from property taxes and payroll taxes to sales taxes and licensing fees. They can vary widely from one jurisdiction to the next.",investopedia,1,53.51,10.2,12.5,10.79,11,10.47,11.5,13.12
Lock In Profits,"Locking in profits refers to the realization of previously unrealized gains accrued in a security by closing all or a portion of the holdings. When an investor holds an open position, they may accrue unrealized or paper gains or losses that aren't realized until the position is closed. An example is when an investor that's long on a security can lock in profits by selling their stake for a gain. By doing this they are no longer subject to changes in the underlying.",investopedia,1,50.36,11.4,12.6,9.34,10.9,9.61,13.125,12.18
Lock-Up Agreement,A lock-up agreement is a contractual provision preventing insiders of a company from selling their shares for a specified period of time. They are commonly used as part of the initial public offering (IPO) process.,investopedia,1,45.25,11.3,0,11.42,11.5,10.82,13.25,16.14
Lock-Up Period,"A lock-up period is a window of time when investors are not allowed to redeem or sell shares of a particular investment. There are two main uses for lock-up periods, those for hedge funds and those for start-ups/IPO’s.",investopedia,1,60.65,9.5,0,9.28,10.5,10.4,12,11.81
Lockbox Banking,"Lockbox banking is a service provided by banks to companies for the receipt of payment from customers. Under the service, the payments made by customers are directed to a special post office box instead of going to the company. The bank goes to the box, retrieves the payments, processes them and deposits the funds directly into the company's bank account.",investopedia,1,51.18,11.1,11.9,10.85,12,8.84,12.33333333,12
Locked In,"The phrase ""locked in"" describes a situation wherein an investor is unwilling or unable to trade a security because of regulations, taxes or penalties associated with doing so. This may occur in be an investment vehicle, such as a retirement plan, that an employee may not access before a specified retirement date.",investopedia,1,36.63,14.6,0,11.67,15.5,11,18.5,17.32
Locked-In Retirement Account (LIRA),"A Locked-in Retirement Account (LIRA) is a type of registered pension fund in Canada that does not permit withdrawals before retirement except in exceptional circumstances. The locked-in retirement account is designed to hold pension funds for a former plan member, an ex-spouse, or a surviving spouse.",investopedia,1,48.13,12.3,0,14.28,16.4,10.96,15,13.55
Log-Normal Distribution,A log-normal distribution is a statistical distribution of logarithmic values from a related normal distribution. A log-normal distribution can be translated to a normal distribution and vice versa using associated logarithmic calculations.,investopedia,1,-12.45,19,0,19.6,17.3,10.35,15,15.15
Logarithmic Price Scale,"A logarithmic price scale is a type of scale used on a chart that is plotted such that two equivalent price changes are represented by the same vertical distance on the scale. The distance between the numbers on the scale decreases as the price of the asset increases. After all, a $1.00 increase in price becomes less influential as the price moves higher since it corresponds to less of a percentage change.",investopedia,1,64.04,10.3,13,9.99,12.9,9.65,15,14.6
Logistics,"Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. Logistics managers are referred to as logisticians.",investopedia,1,15.68,14.4,15.5,21.74,18.2,13.38,11.33333333,17.32
London Interbank Bid Rate (LIBID),"The London Interbank Bid Rate (LIBID) is the average interest rate at which major London banks bid for eurocurrency deposits from other banks in the interbank market. It is the bid rate that banks are willing to pay for eurocurrency deposits and other banks' unsecured funds in the London interbank market, while the more popular LIBOR is the offered rate.",investopedia,1,49.49,13.8,0,12.14,17.4,8.81,19.5,16
London InterBank Offered Rate (LIBOR),The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.,investopedia,1,43.06,14.2,0,13.87,18.3,10.66,19,15.49
London Metal Exchange (LME),"The London Metal Exchange (LME) is a commodities exchange that deals in metals futures and options. The LME is a non-ferrous exchange, which means that iron and steel do not trade there. Instead, tradable contracts include aluminum, copper, gold, silver, cobalt, and zinc.",investopedia,1,73.88,6.5,7.8,11.53,11,9.85,6.833333333,6.65
London Stock Exchange (LSE),"The London Stock Exchange (LSE) is the primary stock exchange in the United Kingdom and the largest in Europe. Originated more than 300 years ago, the regional exchanges were merged in 1973 to form the Stock Exchange of Great Britain and Ireland, later renamed the London Stock Exchange (LSE). The Financial Times Stock Exchange (FTSE) 100 Share Index, or ""Footsie"", is the dominant index, containing 100 of the top blue-chip stocks on the LSE.",investopedia,1,63.32,10.6,11.2,10.74,14.5,10.2,14.33333333,13.12
Long Jelly Roll,A long jelly roll is an option strategy that aims to profit from a form of arbitrage based on option pricing. The jelly roll looks for a difference between the pricing of a horizontal spread (also called a calendar spread) composed of call options at a given strike price and the same horizontal spread with the same strike price composed of put options.,investopedia,1,56.42,13.2,0,9.82,16.1,8.46,18.75,14.5
Long Position (Long),The term long position describes what an investor has purchased when they buy a security or derivative with the expectation that it will rise in value.,investopedia,1,45.09,13.4,0,11.15,14.6,9.18,17,16.55
Long Put,"A long put refers to buying a put option, typically in anticipation of a decline in the underlying asset. The term ""long"" here has nothing to do with the length of time before expiration, but rather refers to the trader's action of having bought the option with the hope of selling it at a higher price at a later point in time. A trader could buy a put for speculative reasons, betting that the underlying asset will fall which increases the value of the long put option. A long put could also be used to hedge a long position in the underlying asset. If the underlying asset falls, the put option increases in value helping to offset the loss in the underlying.",investopedia,1,55.17,11.6,12,8.25,11.7,7.95,14.5,12.06
Long Run,"The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas in the short run firms are only able to influence prices through adjustments made to production levels. Additionally, while a firm may be a monopoly in the short term, they may expect competition in the long run.",investopedia,1,65.76,9.6,12.5,8.48,10.9,8.51,13.83333333,13.1
Long Straddle,A long straddle is an options strategy where the trader purchases both a long call and a long put on the same underlying asset with the same expiration date and strike price.,investopedia,1,55.92,13.4,0,9.06,15.6,9.66,20,17.8
Long Synthetic (Synthetic Put),"A synthetic put is an options strategy that combines a short stock position with a long call option on that same stock to mimic a long put option. It is also called a synthetic long put. Essentially, an investor who has a short position in a stock purchases an at-the-money call option on that same stock. This action is taken to protect against appreciation in the stock's price. A synthetic put is also known as a married call or protective call.",investopedia,1,67.79,8.8,12.2,8.47,10.2,7.57,10.1,11.58
Long Tail,"The long tail is a business strategy that allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The term was first coined in 2004 by Chris Anderson, who argued that products in low demand or with low sales volume can collectively make up market share that rivals or exceeds the relatively few current bestsellers and blockbusters but only if the store or distribution channel is large enough.",investopedia,1,35.78,19.1,0,12.55,24.2,11.24,26.25,21.54
Long Term,"Long term refers to the extended period of time that an asset is held. Depending on the type of security, a long-term asset can be held for as little as one year or for as long as 30 years or more. Generally speaking, long-term investing for individuals is often thought to be in the range of at least seven to ten years of holding time, although there is no absolute rule.",investopedia,1,64.34,10.2,12.5,7.38,10.7,8.59,14.5,13.99
Long-Legged Doji,"The long-legged doji is a candlestick that consists of long upper and lower shadows and has approximately the same opening and closing price, resulting in a small real body.",investopedia,1,42.04,14.6,0,11.91,16.8,9.98,18.5,14.36
Long-Run Average Total Cost (LRATC),"Long-run average total cost (LRATC) is a business metric that represents the average cost per unit of output over the long run, where all inputs are considered to be variable and the scale of production is changeable. The long-run average cost curve shows the lowest total cost to produce a given level of output in the long run.",investopedia,1,50.5,13.4,0,9.82,15.2,9.7,17.5,14.36
Long/Short Equity,"Long-short equity is an investing strategy that takes long positions in stocks that are expected to appreciate and short positions in stocks that are expected to decline. A long-short equity strategy seeks to minimize market exposure while profiting from stock gains in the long positions, along with price declines in the short positions. Although this may not always be the case, the strategy should be profitable on a net basis.",investopedia,1,47.83,12.4,16.3,12.54,14.7,8.85,17,14.46
Long/Short Fund,"A long/short fund is a type of mutual fund or hedge fund that takes both long and short positions in investments typically from a specific market segment. These funds often use several alternative investing techniques such as leverage, derivatives, and short positions to purchases relatively undervalued securities and sell overvalued ones.",investopedia,1,28.67,15.6,0,15.55,18.2,11.71,20.25,20.4
Long-Tail Liability,"A long-tail liability is a type of liability that carries a long settlement period. Long-tail liabilities are likely to result in high incurred but not reported (IBNR) claims, because it may take a long period of time for the claims to be settled.",investopedia,1,41.19,12.9,0,9.4,11.8,8.74,14.25,12.32
Long-Term Assets,"Long-term assets are assets, whether tangible or non-tangible, that will benefit the company for more that one year. Also known as non-current assets, long-term assets can include fixed assets such as a company's property, plant, and equipment, but can also include other assets such as long term investments, patents, copyright, franchises, goodwill, trademarks, and trade names, as well as software.",investopedia,1,41.03,15,0,14.92,20.8,10.12,19.5,16
Long-Term Capital Gain or Loss,A long-term capital gain or loss is the gain or loss stemming from the sale of a qualifying investment that has been owned for longer than 12 months at the time of sale. This may be contrasted with short-term gains or losses on investments that are disposed of in less than 12 months time. Long-term capital gains are often given more favorable tax treatment than short-term gains.,investopedia,1,62.85,12.8,0,10.22,17.7,8.6,13.5,16.39
Long-Term Capital Management (LTCM),"Long-Term Capital Management (LTCM) was a large hedge fund, led by Nobel Prize-winning economists and renowned Wall Street traders, that blew up in 1998, forcing the U.S. government to intervene to prevent financial markets from collapsing.",investopedia,1,43.4,16.2,0,14.75,23.4,13.32,25,19.96
Long-Term Care (LTC) Insurance,"Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs, such as Medicaid.",investopedia,1,29.69,15.2,0,15.79,18.4,12.26,17.25,17.15
Long-Term Debt,"Long-term debt is debt that matures in more than one year. Long-term debt can be viewed from two perspectives: financial statement reporting by the issuer and financial investing. In financial statement reporting, companies must record long-term debt issuance and all of its associated payment obligations on its financial statements. On the flip side, investing in long-term debt includes putting money into debt investments with maturities of more than one year.",investopedia,1,53.71,10.1,13.8,14.27,13.9,8.34,12.25,12.14
Long-Term Debt to Capitalization Ratio,"The long-term debt to capitalization ratio, a variation of the traditional debt-to-equity (D/E) ratio, shows the financial leverage of a firm. It is calculated by dividing long-term debt by total available capital (long-term debt, preferred stock, and common stock). Investors compare the financial leverage of firms to analyze the associated investment risk. High ratios indicate riskier investments, as debt is the primary source of financing and introduces a greater risk of insolvency.",investopedia,1,-18.54,33.7,0,16.27,42.1,14.66,13.5,37.69
Long-Term Debt to Total Assets Ratio,"The long-term debt-to-total-assets ratio is a measurement representing the percentage of a corporation's assets financed with long-term debt, which encompasses loans or other debt obligations lasting more than one year. This ratio provides a general measure of the long-term financial position of a company, including its ability to meet its financial obligations for outstanding loans.",investopedia,1,26.64,16.4,0,16.89,20.8,10.46,21.75,19
Long-Term Equity Anticipation Securities (LEAPS),"Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue. They are functionally identical to most other listed options, except with longer times until expiration. They were first introduced by the Chicago Board Options Exchange (CBOE) in 1990, and are now ubiquitous.",investopedia,1,43.02,12.2,13.6,14.56,15.2,10.77,13.16666667,13.98
Long-Term Growth (LTG),"Long-term growth (LTG) is an investment strategy that aims to increase the value of a portfolio over a multi-year time frame. Although long-term is relative to an investors’ time horizons and individual style, generally long-term growth is meant to create above market returns over a period of ten years or more. Because of the longer time frame, long-term growth portfolios can be more aggressive in holding a larger percentage of stocks versus fixed-income products like bonds. Whereas an intermediate term balanced fund might have 60% stocks to 40%, a long-term growth fund might have 80% stocks and 20% bonds.",investopedia,1,54.76,11.8,13.4,12.02,15.4,10.93,15.625,14.36
Long-Term Incentive Plan (LTIP),A long-term incentive plan (LTIP) is a company policy that rewards employees for reaching specific goals that lead to increased shareholder value.,investopedia,1,40.69,13.1,0,14.62,16.3,11.9,17,17.89
Long-Term Investments,"A long-term investment is an account on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate, and cash. Long-term investments are assets that a company intends to hold for more than a year.",investopedia,1,58.62,10.3,0,11.6,13.6,9.19,14.5,13.16
Long-Term Liabilities,Long-term liabilities are financial obligations of a company that are due more than one year in the future. The current portion of long-term debt is listed separately to provide a more accurate view of a company's current liquidity and the company’s ability to pay current liabilities as they become due. Long-term liabilities are also called long-term debt or noncurrent liabilities.,investopedia,1,34.26,13.5,15.5,13.34,14.1,9.1,14.66666667,14.67
Longitudinal Data,"Longitudinal data, sometimes called panel data, is a data that is collected through a series of repeated observations of the same subjects over some extended time frame – and is useful for measuring change. Longitudinal data effectively follows the same sample over time, which differs fundamentally from cross-sectional data because it follows the same subjects over some time, while cross-sectional data samples different subjects (whether individuals, firms, countries, or regions) at each point in time. Meanwhile, a cross-sectional data set will always draw a new random sample.",investopedia,1,25.12,17,15.5,15.39,20,9.61,19.16666667,16.2
Look-Alike Contracts,"Look-alike contracts are a cash-settled financial product based on the settlement price of a similar exchange-traded, physically settled futures contract. Look-alike contracts are traded over the counter and they carry no risk of actual physical delivery regardless of the terms of the underlying futures contract.",investopedia,1,31.72,14.4,0,16.89,18.1,10.72,16.75,16.11
Loophole,"A loophole is a technicality that allows a person or business to avoid the scope of a law or restriction without directly violating the law. Used often in discussions of taxes and their avoidance, loopholes provide ways for individuals and companies to remove income or assets from taxable situations into ones with lower taxes or none at all.",investopedia,1,33.58,15.8,0,11.62,16.3,10.79,18.5,17.12
Lorenz Curve,"A Lorenz curve is a graphical representation of income inequality or wealth inequality developed by American economist Max Lorenz in 1905. The graph plots percentiles of the population on the horizontal axis according to income or wealth. It plots cumulative income or wealth on the vertical axis, so that an x-value of 45 and a y-value of 14.2 would mean that the bottom 45% of the population controls 14.2% of the total income or wealth. In practice, a Lorenz curve is usually a mathematical function estimated from an incomplete set of observations of income or wealth.",investopedia,1,38.66,13.8,15.2,11.09,14,9.93,16.5,15.85
Loss Adjustment Expense (LAE),A loss adjustment expense (LAE) is an expense associated with investigating and settling an insurance claim.,investopedia,1,29.86,13.1,0,15.08,13.9,12.33,12,16.4
Loss Carryback,A loss carryback describes a situation in which a business experiences a net operating loss (NOL) and chooses to apply that loss to a prior year's tax return. This results in an immediate refund of taxes previously paid by reducing the tax liability for that previous year.,investopedia,1,39.16,13.6,0,10.39,13.1,10.85,16.25,17.06
Loss Carryforward,"A loss carryforward refers to an accounting technique that applies the current year's net operating loss (NOL) to future years' net income to reduce tax liability. For example, if a company experiences negative net operating income (NOI) in year one, but positive NOI in subsequent years, it can reduce future profits using the NOL carryforward to record some or all of the loss from the first year in the subsequent years. This results in lower taxable income in positive NOI years, reducing the amount the company owes the government in taxes. Loss carryforward can also refer to a capital loss carryforward.",investopedia,1,37.34,14.3,15.9,11.49,15,9.43,17.25,14.08
Loss Development,"Loss development is the difference between the final losses recorded by an insurer and what the insurer originally recorded. Loss development seeks to account for the fact that some insurance claims take a long time to settle, and that estimates of the total loss an insurer will experience will adjust as claims are finalized.",investopedia,1,44.07,13.8,0,12.13,15.9,9.07,19,15.99
Loss Given Default (LGD),"Loss given default (LGD) is the amount of money a bank or other financial institution loses when a borrower defaults on a loan, depicted as a percentage of total exposure at the time of default. A financial institution’s total LGD is calculated after a review of all outstanding loans using cumulative losses and exposure.",investopedia,1,27.15,16.2,0,11.38,15.5,10.24,19.5,18.21
Loss Leader Strategy,A loss leader strategy involves selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional products and services to those customers. Loss leading is a common practice when a business first enters a market. A loss leader introduces new customers to a service or product in the hopes of building a customer base and securing future recurring revenue.,investopedia,1,55.88,11.4,10.5,10.62,13,9.26,13.5,12.3
Loss Payee,"The loss payee is the party to whom the claim from a loss is to be paid. A loss payee can mean several different things; in the insurance industry, the insured, or the party entitled to payment is the loss payee. The insured can expect reimbursement from the insurance carrier in the event of a loss. One example would be if a borrower defaulted on their loan and didn't pay it.",investopedia,1,61.87,9.1,12.6,6.96,7.9,7.41,11.625,11.63
Loss Ratio,"Loss ratio is used in the insurance industry, representing the ratio of losses to premiums earned. Losses in loss ratios include paid insurance claims and adjustment expenses. The loss ratio formula is insurance claims paid plus adjustment expenses divided by total earned premiums. For example, if a company pays $80 in claims for every $160 in collected premiums, the loss ratio would be 50%.",investopedia,1,46.78,10.7,14.9,11.54,10.9,9.86,12.25,12.65
Loss Reserve,"A loss reserve is an estimate of an insurer’s liability from future claims it will have to pay out on. Typically composed of liquid assets, loss reserves allow an insurer to cover claims made against insurance policies that it underwrites. Estimating liabilities can be a complex undertaking. Insurers must take into account the duration of the insurance contract, the type of insurance offered, the odds of a claim being made, and the time of it being resolved quickly. Insurers have to adjust their loss reserve calculations as circumstances change.",investopedia,1,44.95,11.4,13.7,12.29,12.2,9.84,12.3,13.41
Lost Decade,"The Lost Decade is commonly used to describe the decade of the 1990s in Japan, a period of economic stagnation which became one of the longest-running economic crises in recorded history. Later decades are also included in some definitions, with the period from 1991-2011 (or even 1991-2021) sometimes also referred to as Japan's Lost Decades.",investopedia,1,52.02,12.8,0,12.42,17,10.46,18.25,15.36
Lost Policy Release (LPR),A lost policy release (LPR) is a statement releasing an insurance company from its liabilities. An LPR is signed by the insured party and signifies that the policy in question has been lost or destroyed or is being retained.,investopedia,1,51.68,10.9,0,10.1,11,9.46,13.25,12.93
Lot (Securities Trading),"A lot in the financial markets is the number of units of a financial instrument bought on an exchange. The number of units is determined by the lot size. For example, in the stock market, a round lot is 100 shares. However, investors do not have to buy round lots, where a lot can be any number of shares.",investopedia,1,81.83,5.5,10.1,5.62,5.7,7.05,7.875,8.63
Love Money,"Love money refers to seed capital that has been extended by family or friends to an entrepreneur to start a business venture. The decision to lend money and the terms of the agreement are usually based on the relationship between the two parties, instead of a formulaic risk analysis.",investopedia,1,21.74,22.4,0,11.33,25.9,10.9,16.75,25.31
Low Exercise Price Option (LEPO),"A low exercise price option (LEPO) is a European-style call option with an exercise price of one cent. Both buyer and seller operate on margin. Because it is almost a certainty that the holder will exercise the option at maturity, it is somewhat similar to a futures contract.",investopedia,1,55.24,9.5,12.5,9.28,9,9.36,10.66666667,11.4
Low-Hanging Fruit,"The term ""low-hanging fruit"" is a commonly-used metaphor for doing the simplest or easiest work first requiring little or no effort, or for a quick fix that produces ripe, delectable results. In investing, low-hanging fruit may refer to those obviously underpriced securities or ""no-brainer"" investments that would be snatched up first without much effort involved in terms of research or due diligence.",investopedia,1,40.01,15.4,0,14.11,20.1,11.03,20.5,18.21
Low-Income Housing Tax Credit,"The Low-Income Housing Tax Credit (LIHTC) is a tax incentive for housing developers to construct, purchase, or renovate housing for low-income individuals and families. The Low-Income Housing Tax Credit was written into the Tax Reform Act of 1986.",investopedia,1,35.27,13.1,0,13.69,14.4,9.57,13.5,12.86
Low Interest Rate Environment,"A low interest rate environment occurs when the risk-free rate of interest, typically set by a central bank, is lower than the historic average for a prolonged period of time. In the United States, the risk-free rate is generally defined by the interest rate on Treasury securities.",investopedia,1,39.16,13.6,0,11.26,14,9.84,16.25,15.36
Low/No Documentation Loan,"A low/no documentation loan allows a potential borrower to apply for a mortgage while providing little or no information regarding their employment, income, or assets. Regulation of these loans has evolved significantly since 2008, but they remain an option for some borrowers in nontraditional financial situations.",investopedia,1,22.75,15.8,0,16.42,17.8,11.99,18,20.5
Low Volume Pullback,"A low volume pullback is a technical correction toward an area of support that occurs on lower-than-average volume. Since the move occurs on low volume, traders often attribute the pullback to weak longs locking in profits rather than a reversal.",investopedia,1,59.64,9.9,0,12.01,13,10.55,12,12
Lower of Cost or Market Method,"The lower of cost or market (LCM) method states that when valuing a company's inventory, it is recorded on the balance sheet at either the historical cost or the market value. Historical cost refers to the cost at which the inventory was purchased.",investopedia,1,58.11,10.5,0,9.69,11.9,8.74,13.25,11.39
Loyalty Program,"Loyalty programs, sponsored by retailers and other businesses, offer rewards, discounts, and other special incentives as a way to attract and retain customers. They are designed to encourage repeat business, offering people a reward for store/brand loyalty (hence the name). Typically, the more often a customer patronizes the merchant—and the more they spend—the greater their rewards.",investopedia,1,44.03,11.8,13.6,15.78,15.7,10.49,12.66666667,13.19
Ltd. (Limited),"Ltd. is a standard abbreviation for ""limited,"" a form of corporate structure available in countries including the U.K., Ireland, and Canada. The term appears as a suffix that follows the company name, indicating that it is a private limited company. In a limited company, shareholders' liability is limited to the capital they originally invested. If such a company becomes insolvent, the shareholders' personal assets remain protected.",investopedia,1,29.35,13.3,16.2,13.63,13.4,10.91,13.5,13.87
Lucrative,"Lucrative means profitable, and it can be used to describe any venture or activity that has the potential to make money. Thus, an investment or commercial venture is considered to be lucrative if it produces substantial wealth. A lucrative activity could be anything from collecting art, designing an invention, or following through on an idea for an innovative product or service.",investopedia,1,42.41,12.4,15.9,12.59,13.5,8.79,15.16666667,15.33
Luhn Algorithm,"The Luhn Algorithm—also known as the “Modulus 10 Algorithm”—is a formula that is used to determine whether the identification number provided by a user is accurate. The formula is widely used in validating credit card numbers, as well as other number sequences such as government Social Security Numbers (SSNs).",investopedia,1,29.69,15.2,0,13.58,16.1,10.97,18.25,17.15
Lump-Sum Payment,"A lump-sum payment is an often large sum that is paid in one single payment instead of broken up into installments. It is also known as a bullet repayment when dealing with a loan. They are sometimes associated with pension plans and other retirement vehicles, such as 401k accounts, where retirees accept a smaller upfront lump-sum payment rather than a larger sum paid out over time. These are often paid out in the event of debentures.",investopedia,1,60.65,9.5,9.5,9.81,10.6,7.9,10.75,10.23
Luxury Item,"A luxury item is not necessary to live, but it is deemed highly desirable within a culture or society. Demand for luxury goods increases when a person's wealth or income increases. Typically, the greater the percentage increase in income, the greater the percentage increase in luxury item purchases.",investopedia,1,46.78,10.7,14.6,12.41,11.6,10.02,12,13.07
Luxury Tax,A luxury tax is a sales tax or surcharge levied only on certain products or services that are deemed non-essential or accessible only to the super-wealthy.,investopedia,1,53.55,12.3,0,11.32,15.1,12.21,16,15.02
M1,"M1 is the money supply that is composed of physical currency and coin, demand deposits, travelers' checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash. However, ""near money"" and ""near, near money,"" which fall under M2 and M3, cannot be converted to currency as quickly.",investopedia,1,46.81,12.8,13.6,11.73,15.2,9.38,15.5,13.01
M2,"M2 is a calculation of the money supply that includes all elements of M1 as well as ""near money."" M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits. These assets are less liquid than M1 and not as suitable as exchange mediums, but they can be quickly converted into cash or checking deposits.",investopedia,1,57.61,10.7,10.5,10.39,12.7,8.79,12.66666667,11.83
M3,"M3 is a measure of the money supply that includes M2 as well as large time deposits, institutional money market funds, short-term repurchase agreements (repo), and larger liquid assets.",investopedia,1,33.58,15.8,0,13.3,18.6,12.15,16.5,14.36
M-Pesa,"M-Pesa is a mobile banking service that allows users to store and transfer money through their mobile phones. M-Pesa was introduced in Kenya as an alternative way for the population of the country to have access to financial services. Safaricom, the largest mobile phone operator in Kenya, launched M-Pesa in 2007. The service is a blend of two entities where M means mobile and Pesa means money or payment in the Swahili language.",investopedia,1,61.36,9.2,10.7,10.5,10.9,9.52,10.875,11.16
Maastricht Treaty,"The Maastricht Treaty, known formally as the Treaty on European Union, is the international agreement responsible for the creation of the European Union (EU) signed in 1991 and which became effective in 1993. The European Union (EU) is a group of 28 countries that operates as a cohesive economic and political block. Nineteen of the countries use the euro as their official currency.",investopedia,1,58.62,10.3,15,12.01,13.5,10.44,14.83333333,15.38
Macaulay Duration,The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price. Macaulay duration is frequently used by portfolio managers who use an immunization strategy.,investopedia,1,62.98,8.6,13.6,10.03,9.6,9.2,11.66666667,13.88
Macro Environment,"A macro environment is the condition that exists in the economy as a whole, rather than in a particular sector or region. In general, the macro environment includes trends in the gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro-environment is closely linked to the general business cycle as opposed to the performance of an individual business sector.",investopedia,1,33.24,13.8,15.9,13.4,14.9,11.19,15.5,15.38
Macro Manager,"A macro manager is a type of boss or supervisor who takes a more hands-off approach and lets employees do their jobs with minimal direct supervision. This style of leadership is referred to as macromanagement. Macro managers can be thought of by some employees as supervisors who do not give them enough support or feedback to do their jobs effectively, while others may be glad to be trusted and left alone.",investopedia,1,55.88,11.4,13.6,10.22,12.8,9.7,15.16666667,13.99
Macroeconomic Factor,"A macroeconomic factor is an influential fiscal, natural, or geopolitical event that broadly affects a regional or national economy. Macroeconomic factors tend to impact wide swaths of populations, rather than just a few select individuals. Examples of macroeconomic factors include economic outputs, unemployment rates, and inflation. These indicators of economic performance are closely monitored by governments, businesses and consumers alike.",investopedia,1,13.95,15,16.2,18.55,16.4,12.8,12.75,18
Magic Formula Investing,"Magic formula investing refers to a rules-based, disciplined investing strategy that teaches people a relatively simple and easy-to-understand method for value investing. It relies on quantitative screens of companies and stocks, and is designed to beat the stock market's average annual returns using the S&P 500 to represent the market return. Put simply, it works by ranking stocks based on their price and returns on capital.",investopedia,1,40.69,13.1,15.5,13.75,15.6,11.43,15.66666667,14.86
Magna Cum Laude,"Magna cum laude is an academic honorific used by educational institutions to signify that an academic degree was earned with notable distinction. The Latin phrase means ""with great praise.""",investopedia,1,48.3,10.1,0,13.51,12,11.98,10.75,14.08
What Is the Magnetic Ink Character Recognition (MICR) Line on a Check?,"Magnetic ink character recognition (MICR) is a technology used primarily to identify and process checks. The MICR on a check is the string of characters that appears at the bottom left of the check. It consists of three groups of numbers, including the bank routing number, the account number, and the check number.",investopedia,1,61.97,9,12.5,10.32,10.8,9.28,11.5,13.12
Main Street,"Main Street is a colloquial term used by economists to refer collectively to America's independent small businesses. It gets its name from a common name for the principal commercial street of small towns across the country. In England, the equivalent term is High Street.",investopedia,1,56.55,9,13,11.53,10.3,9.75,10.33333333,14.06
Maintenance Expenses,"The term maintenance expense refers to any cost incurred by an individual or business to keep their assets in good working condition. These costs may be spent for the general maintenance of items like running anti-virus software on computer systems or they may be used for repairs such as fixing a car or machinery. These expenses are in addition to the actual purchase price of an asset, so individuals and companies should be able and willing to foot the bill in order to keep their assets in running order.",investopedia,1,49.79,13.7,14.6,10.4,15.7,9.37,18.83333333,15.92
Majority Shareholder,"A majority shareholder is a person or entity that owns and controls more than 50% of a company's outstanding shares. As a majority shareholder, a person or operating entity has a significant amount of influence over the company, especially if their shares are voting shares. Voting shares give a shareholder permission to vote on different corporate decisions, such as who should be on the company’s board of directors.",investopedia,1,39.97,13.3,17.9,12.54,14.4,9.17,18,17.32
Make-or-Buy Decision,A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.,investopedia,1,25.8,14.6,0,13.46,14.5,10.16,16,18
Make to Order (MTO),"Make to order (MTO), or made to order, is a business production strategy that typically allows consumers to purchase products that are customized to their specifications. It is a manufacturing process in which the production of an item begins only after a confirmed customer order is received. It is also known as mass customization.",investopedia,1,44.75,11.5,12.5,11.77,12,9.79,11.66666667,12.39
Make to Stock (MTS),"Make to stock (MTS) is a traditional production strategy that is used by businesses to match the inventory with anticipated consumer demand. Instead of setting a production level and then attempting to sell goods, a company using MTS would estimate how many orders its products could generate, and then supply enough stock to meet those orders.",investopedia,1,43.06,14.2,0,12.31,16.9,9.54,19.5,17.63
Make Whole Call Provision,A make-whole call provision is a type of call provision on a bond allowing the issuer to pay off remaining debt early. The issuer typically has to make a lump-sum payment to the investor. The payment is derived from a formula based on the net present value (NPV) of previously scheduled coupon payments and the principal that the investor would have received.,investopedia,1,58.92,10.2,13,9.92,11.6,9.5,13.33333333,12.8
Malpractice Insurance,Malpractice insurance is a type of professional liability insurance purchased by healthcare professionals. This insurance coverage protects healthcare providers against patients who file suits against them under the complaint that they were harmed by the professional's negligence or intentionally harmful treatment decisions. Malpractice insurance also covers the death of a patient.,investopedia,1,28.84,13.5,15.5,19.95,17.9,11.6,13.16666667,14.64
Managed Account,A managed account is an investment account that is owned by an investor but managed by somebody else. The account owner can either be an institutional investor or an individual retail investor. A professional money manager hired by the investor then oversees the account and the trading activity within it.,investopedia,1,46.06,11,11.2,11.89,11.1,8.57,10.33333333,10.68
Managed Futures,Managed futures refers to an investment where a portfolio of futures contracts is actively managed by professionals. Managed futures are considered an alternative investment and are often used by funds and institutional investors to provide both portfolio and market diversification.,investopedia,1,17.34,15.8,0,17.81,17.3,10.55,15,16
Management Buyout (MBO),A management buyout (MBO) is a transaction where a company’s management team purchases the assets and operations of the business they manage. A management buyout is appealing to professional managers because of the greater potential rewards and control from being owners of the business rather than employees.,investopedia,1,30.7,14.8,0,14.97,16.7,10.85,17.25,17.06
Management by Objectives (MBO),"Management by objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.",investopedia,1,25.12,17,0,15.62,19.8,10.52,22.5,18.5
Management Discussion and Analysis (MD&A),"Management discussion and analysis (MD&A) is a section of a public company's annual report or quarterly filing. The MD&A addresses the company’s performance. In this section, the company’s management and executives, also known as the C-suite, present an analysis of the company’s performance with qualitative and quantitative measures.",investopedia,1,29.86,13.1,16.7,15.77,14.8,10.35,13.66666667,16.4
Management Fee,A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting stocks and managing the portfolio. It can also include other items such as investor relations (IR) expenses and the administration costs of the fund.,investopedia,1,44.03,11.8,15.9,12.36,12.4,10.49,14.33333333,15.34
Managerial Accounting,"Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.",investopedia,1,4.82,18.6,0,20.14,21.5,12.06,21,20.43
Manufacturer's Suggested Retail Price (MSRP),"The manufacturer’s suggested retail price (MSRP) is the price that a product's manufacturer recommends it be sold for at point of sale. The MSRP is also referred to as the list price by some retailers. Every retail product can have an MSRP, though they are frequently used with automobiles. Other higher-priced goods, such as appliances and electronics, also have an MSRP as well.",investopedia,1,63.9,8.3,12.2,10.67,10.2,8.43,10.375,12.03
Manufacturing,"Manufacturing is the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Large-scale manufacturing allows for the mass production of goods using assembly line processes and advanced technologies as core assets. Efficient manufacturing techniques enable manufacturers to take advantage of economies of scale, producing more units at a lower cost.",investopedia,1,25.49,14.7,16.3,16.65,16.9,12.15,15.5,15.99
Manufacturing Resource Planning,"Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP) systems by including the integration of additional data, such as employee and financial needs.",investopedia,1,9.38,16.8,0,18.56,18.5,12.7,15.75,19.08
Maquiladora,The term maquiladora refers to a factory or manufacturing plant in Mexico. These corporations are approved for operation by the country's Secretariat of Commerce and Industrial Development under a decree established in 1989 and are owned by foreign entities.,investopedia,1,26.3,14.4,0,14.97,14.9,11.89,14.75,17.03
Margin Account,"A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate. Because the customer is investing with borrowed money, the customer is using leverage which will magnify profits and losses for the customer.",investopedia,1,49.86,11.6,12.5,12.24,13.6,9.87,13.33333333,13.52
Margin Debt,"Margin debt is debt a brokerage customer takes on by trading on margin. When purchasing securities through a broker, investors have the option of using a cash account and covering the entire cost of the investment themselves, or using a margin account—meaning they borrow part of the initial capital from their broker. The portion the investors borrow is known as margin debt, while the portion they fund themselves is the margin, or equity.",investopedia,1,46.81,12.8,12.5,11.78,14.5,9.17,14.83333333,13.01
Margin Loan Availability,Margin loan availability describes the amount in a margin account that is currently available for purchasing securities on margin or the amount that is available for withdrawal. A margin account makes loans available to the customer of a brokerage firm using the customer's securities in their account as collateral.,investopedia,1,38.15,14,0,14.39,16.6,9.69,16.25,15.51
Margin of Safety,"Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. In other words, when the market price of a security is significantly below your estimation of its intrinsic value, the difference is the margin of safety. Because investors may set a margin of safety in accordance with their own risk preferences, buying securities when this difference is present allows an investment to be made with minimal downside risk.",investopedia,1,34.9,15.3,16.7,13.18,17.3,8.82,19.5,16.86
Marginal Analysis,"Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits. Marginal refers to the focus on the cost or benefit of the next unit or individual, for example, the cost to produce one more widget or the profit earned by adding one more worker.",investopedia,1,30.5,14.9,17.1,11.78,14.1,10.37,17.83333333,16.8
Marginal Benefits,A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service. It is also the additional satisfaction or utility that a consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decrease as consumption of the good or service increases.,investopedia,1,44.03,11.8,14.6,10.91,11,8.23,13.33333333,13.19
Marginal Cost of Production,"In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations. If the marginal cost of producing one additional unit is lower than the per-unit price, the producer has the potential to gain a profit.",investopedia,1,40.89,13,16.5,12.07,13.7,9.44,16.375,15.16
Marginal Profit,Marginal profit is the profit earned by a firm or individual when one additional or marginal unit is produced and sold. Marginal refers to the added cost or profit earned with producing the next unit. Marginal product is the additional revenue earned while the marginal cost is the added cost for producing one additional unit.,investopedia,1,52.9,10.4,14.1,11.2,11.1,8.28,12.83333333,10.23
Marginal Propensity to Consume (MPC),"In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it. Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income. MPC is depicted by a consumption line, which is a sloped line created by plotting the change in consumption on the vertical ""y"" axis and the change in income on the horizontal ""x"" axis.",investopedia,1,39.71,15.5,18.2,10.75,17.1,10.06,22.66666667,19.33
Marginal Propensity to Import (MPM),The marginal propensity to import (MPM) is the amount imports increase or decrease with each unit rise or decline in disposable income. The idea is that rising income for businesses and households spurs greater demand for goods from abroad and vice versa.,investopedia,1,67.08,9.1,0,12.01,13.3,11.45,12.5,12.21
Marginal Propensity to Save (MPS),"In Keynesian economic theory, the marginal propensity to save (MPS) refers to the proportion of an aggregate raise in income that a consumer saves rather than spends on the consumption of goods and services. Put differently, the marginal propensity to save is the proportion of each added dollar of income that is saved rather than spent. MPS is a component of Keynesian macroeconomic theory and is calculated as the change in savings divided by the change in income, or as the complement of the marginal propensity to consume (MPC).",investopedia,1,41.33,14.9,18.2,11.67,17,9.37,21.83333333,18.17
Marginal Rate of Substitution (MRS),"In economics, the marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to consume in relation to another good, as long as the new good is equally satisfying. MRS is used in indifference theory to analyze consumer behavior.",investopedia,1,48.64,12.1,0,9.93,12.3,9.31,16.25,17
Marginal Rate of Technical Substitution,The marginal rate of technical substitution (MRTS) is an economic theory that illustrates the rate at which one factor must decrease so that the same level of productivity can be maintained when another factor is increased.,investopedia,1,26.48,18.5,0,13.3,21.3,10.69,26,22.18
Marginal Rate of Transformation,The marginal rate of transformation (MRT) is the number of units or amount of a good that must be forgone to create or attain one unit of another good. It is the number of units of good Y that will be foregone to produce an extra unit of good X while keeping the factors of production and technology constant.,investopedia,1,58.45,12.4,0,7.61,13.3,9.65,17.25,14.51
Marginal Revenue (MR),"Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases. In economic theory, perfectly competitive firms continue producing output until marginal revenue equals marginal cost.",investopedia,1,32.94,14,15.5,13.63,14.9,10.12,15.33333333,15.4
Marginal Revenue Product (MRP),"Marginal revenue product (MRP), also known as the marginal value product, is the marginal revenue created due to an addition of one unit of resource. The marginal revenue product is calculated by multiplying the marginal physical product (MPP) of the resource by the marginal revenue (MR) generated. The MRP assumes that the expenditures on other factors remain unchanged and helps determine the optimal level of a resource.",investopedia,1,31.92,14.3,15.9,13.06,14.9,9.69,16.16666667,14.89
Marginal Social Cost (MSC),Marginal social cost (MSC) is the total cost society pays for the production of another unit or for taking further action in the economy. The total cost of the production of an additional unit of something is not merely the direct cost undertaken by the producer but also includes costs to other stakeholders and the environment as a whole. MSC is calculated as:,investopedia,1,50.16,11.5,14.6,9.86,11.5,9.44,14.5,14.75
Marginal Tax Rate,"The marginal tax rate is the tax rate you pay on an additional dollar of income. In the United States, the federal marginal tax rate for individuals increases as income rises. This method of taxation, known as progressive taxation, aims to tax individuals based upon their earnings, with low-income earners being taxed at a lower rate than higher-income earners.",investopedia,1,43.02,12.2,14.6,11.72,12.7,8.9,13.83333333,12.63
Marginal Utility,Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good or service. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.,investopedia,1,59.13,10.1,0,9.75,11,9.66,13.75,13.08
Marital Property,"Marital property is a U.S. state-level legal term that refers to property acquired during the course of a marriage. Property that an individual owns before a marriage is considered separate property, as are inheritances or third-party gifts given to an individual during a marriage. Marriage partners may choose to exclude certain property from marital property by signing a prenuptial or a postnuptial agreement.",investopedia,1,33.24,13.8,15.9,14.27,15.3,9.19,15.5,12.21
Maritime Law,"Maritime law, also known as admiralty law, is a body of laws, conventions, and treaties that govern private maritime business and other nautical matters, such as shipping or offenses occurring on open water. International rules, governing the use of the oceans and seas, are known as the Law of the Sea.",investopedia,1,54.05,12.1,0,10.74,14.7,9.86,16.25,15.69
Mark Zuckerberg,"Mark Zuckerberg is a self-taught computer programmer and co-founder, chair, and chief executive officer of Facebook (FB), which he founded in his Harvard University dorm room in 2004 along with Andrew McCollum, Dustin Moskovitz, Chris Hughes, and Eduardo Saverin.",investopedia,1,31.89,18.5,0,15.15,25.2,14.07,26.5,21.75
Market,"A market is a place where two parties can gather to facilitate the exchange of goods and services. The parties involved are usually buyers and sellers. The market may be physical like a retail outlet, where people meet face-to-face, or virtual like an online market, where there is no direct physical contact between buyers and sellers.",investopedia,1,52.49,10.6,10.5,11.02,11.5,8.23,11,10.34
Market Approach,"The market approach is a method of determining the value of an asset based on the selling price of similar assets. It is one of three popular valuation methods, along with the cost approach and discounted cash-flow analysis (DCF).",investopedia,1,51.68,10.9,0,10.39,11.5,10.27,12.75,13.95
Market Basket,A market basket is a selected group of products or assets designed to track the general performance of a specific market segment. This is sometimes known as a basket of goods.,investopedia,1,64.2,8.2,0,9.16,8.4,7.97,8.75,10.07
Market Breadth,"Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market's momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index.",investopedia,1,49.15,11.9,13.8,11.31,13.3,9.21,14.5,13.35
Market Cannibalization,Market cannibalization is a loss in sales caused by a company's introduction of a new product that displaces one of its own older products. The cannibalization of existing products leads to no increase in the company's market share despite sales growth for the new product.,investopedia,1,48.64,12.1,0,12.02,13.8,9.66,14.25,12.56
Market Capitalization,"Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as ""market cap,"" it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share.",investopedia,1,41.19,12.9,0,12.24,14.1,8.74,14.75,14.18
Market Capitalization-to-GDP Ratio,"The stock market capitalization-to-GDP ratio is a ratio used to determine whether an overall market is undervalued or overvalued compared to a historical average. The ratio can be used to focus on specific markets, such as the U.S. market, or it can be applied to the global market, depending on what values are used in the calculation. It is calculated by dividing the stock market cap by gross domestic product (GDP). The stock market capitalization-to-GDP ratio is also known as the Buffett Indicator—after investor Warren Buffett, who popularized its use.",investopedia,1,40.18,13.2,14.2,12.36,14.5,10.19,15,15.22
Market Cycles,"Market cycles, also known as stock market cycles, is a wide term referring to trends or patterns that emerge during different markets or business environments. During a cycle, some securities or asset classes outperform others because their business models aligned with conditions for growth. Market cycles are the period between the two latest highs or lows of a common benchmark, such as the S&P 500, highlighting a fund’s performance through both an up and a down market.",investopedia,1,45.39,13.3,13,12.31,15.8,10.86,15.83333333,14.44
Market Depth,"Market depth refers to a market's ability to absorb relatively large market orders without significantly impacting the price of the security. Market depth considers the overall level and breadth of open orders, bids, and offers, and usually refers to trading within an individual security. Typically, the more buy and sell orders that exist, the greater the depth of the market—provided that those orders are dispersed fairly evenly around the current market price of that security.",investopedia,1,37.64,14.2,14.6,13.93,16.7,10.56,16.5,15.33
Market Dynamics,"Market dynamics are forces that will impact prices and the behaviors of producers and consumers. In a market, these forces create pricing signals which result from the fluctuation of supply and demand for a given product or service. Market dynamics can impact any industry or government policy.",investopedia,1,47.08,10.6,12.5,12.53,11.3,10.13,10.5,11.39
Market Economy,"A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.",investopedia,1,27.15,16.2,0,12.65,16.5,10.24,20.5,18.21
Market Efficiency,"Market efficiency refers to the degree to which market prices reflect all available, relevant information. If markets are efficient, then all information is already incorporated into prices, and so there is no way to ""beat"" the market because there are no undervalued or overvalued securities available.",investopedia,1,31.21,14.6,0,14.68,16.5,9.58,16,16.16
Market Exposure,"Market exposure refers to the dollar amount of funds or percentage of a broader portfolio that is invested in a particular type of security, market sector, or industry. Market exposure is usually expressed as a percentage of total portfolio holdings, for instance, as in 10% of a portfolio being exposed to the oil and gas sector or a $ 50,000 in Tesla stock.",investopedia,1,31.55,16.6,0,10.28,16.6,10.78,21.75,17.56
Market Failure,"Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market. In market failure, the individual incentives for rational behavior do not lead to rational outcomes for the group.",investopedia,1,35.78,12.9,0,13.58,13.3,9.68,13.75,16.05
Market Index,"A market index is a hypothetical portfolio of investment holdings that represents a segment of the financial market. The calculation of the index value comes from the prices of the underlying holdings. Some indexes have values based on market-cap weighting, revenue-weighting, float-weighting, and fundamental-weighting. Weighting is a method of adjusting the individual impact of items in an index.",investopedia,1,39.84,11.3,13.4,15.42,13.8,10.62,10.5,13.39
Market Indicators,Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves. Market indicators are a subset of technical indicators and are typically comprised of formulas and ratios. They aid investors' investment/trading decisions.,investopedia,1,23.12,13.6,14.1,15.3,13.2,11.69,10.83333333,14.09
Market Leader,"A market leader is a company with the largest market share in an industry that can often use its dominance to affect the competitive landscape and direction the market takes. A market leader typically enjoys the largest market share or the largest percentage of total sales in a given market. It may surpass its competitors according to other metrics, too, including brand loyalty, perceived value, distribution coverage, image, price, promotional spending, and profit.",investopedia,1,38.35,13.9,15.5,13.87,16.5,10.47,16.83333333,16.3
Market Manipulation,"Market manipulation is the act of artificially inflating or deflating the price of a security or otherwise influencing the behavior of the market for personal gain. Manipulation is illegal in most cases, but it can be difficult for regulators and other authorities to detect, such as with omnibus accounts.",investopedia,1,21.23,16.4,0,13.06,15.6,10.01,19.25,19.6
Market Neutral,A market-neutral strategy is a type of investment strategy undertaken by an investor or an investment manager that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.,investopedia,1,19.37,21.2,0,13.83,24.8,12.01,33.5,24.64
Market-On-Close Order (MOC),"A market-on-close (MOC) order is a non-limit market order, which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. The purpose of a MOC order is to get the last available price of that trading day. MOC orders are not available in all markets or from all brokers.",investopedia,1,68.81,8.5,9.7,8.41,9.9,8.41,11,9.1
Market Order,"A market order is an instruction by an investor to a broker to buy or sell stock shares, bonds, or other assets at the best available price in the current financial market.",investopedia,1,55.92,13.4,0,8.31,15.3,9.66,18,15.3
Market Orientation,Market orientation is an approach to business that prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them. Companies that have a market orientation consider the opinions and needs of their target market as a critical component of their research and development (R&D) for new products.,investopedia,1,28.17,15.8,0,14.8,17.9,11.3,18.5,18.09
Market Penetration,Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service.,investopedia,1,38.15,14,0,11.9,14.5,8.4,14.75,13.07
Market Portfolio,"A market portfolio is a theoretical bundle of investments that includes every type of asset available in the investment universe, with each asset weighted in proportion to its total presence in the market. The expected return of a market portfolio is identical to the expected return of the market as a whole.",investopedia,1,36.63,14.6,0,11.44,14.9,9.48,17.5,15.78
Market Power,"Market power refers to a company's relative ability to manipulate the price of an item in the marketplace by manipulating the level of supply, demand or both.",investopedia,1,35.61,15,0,10.74,15.1,10.82,19.5,19.69
Market Price,The market price is the current price at which an asset or service can be bought or sold. The market price of an asset or service is determined by the forces of supply and demand. The price at which quantity supplied equals quantity demanded is the market price.,investopedia,1,72.16,7.2,9.7,8.29,7.9,7.72,8.333333333,8.9
Market Research,Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service.,investopedia,1,30.2,15,0,14.68,16.5,9.76,16,14.6
Market Risk,Market risk is the possibility that an individual or other entity will experience losses due to factors that affect the overall performance of investments in the financial markets.,investopedia,1,17.68,17.8,0,14.68,18.5,12.36,21,21.2
Market Risk Premium,"The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures the required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.",investopedia,1,31.21,14.6,16.7,12.19,14.4,9.81,17.16666667,16.16
Market Saturation,"Market saturation arises when the volume of a product or service in a marketplace has been maximized. At the point of saturation, a company can only achieve further growth through new product improvements by taking existing market share from competitors or increasing overall consumer demand.",investopedia,1,40.18,13.2,0,14.57,15.8,10.02,15.75,15.22
Market Segment,"A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. Each market segment is unique, and marketers use various criteria to create a target market for their product or service. Marketing professionals approach each segment differently, after fully understanding the needs, lifestyles, demographics, and personality of the target consumer.",investopedia,1,26.1,14.5,14.6,16.13,16.3,10.5,13.83333333,14.66
Market Segmentation,Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.,investopedia,1,20.21,16.8,0,16.89,19,11.71,18.25,15.69
Market Segmentation Theory,"Market segmentation theory is a theory that long and short-term interest rates are not related to each other. It also states that the prevailing interest rates for short, intermediate, and long-term bonds should be viewed separately like items in different markets for debt securities.",investopedia,1,40.69,13.1,0,13.81,15.5,9.75,16.5,16.07
Market Sentiment,"Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market. In broad terms, rising prices indicate bullish market sentiment, while falling prices indicate bearish market sentiment.",investopedia,1,34.26,13.5,14.6,13.92,14.5,10.16,14,14
Market Share,Market share is the percent of total sales in an industry generated by a particular company. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors. The market leader in an industry is the company with the largest market share.,investopedia,1,51.38,11,14.6,8.36,9.5,7.42,13.875,12.48
Market Timing,"Market timing is the act of moving investment money in or out of a financial market—or switching funds between asset classes—based on predictive methods. If investors can predict when the market will go up and down, they can make trades to turn that market move into a profit.",investopedia,1,55.58,11.5,0,10.33,13,9.43,13.5,12.1
Mark to Market (MTM),"Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation based on current market conditions.",investopedia,1,39.67,13.4,0,12.25,14.6,10.96,16,17.03
Market Value,"Market value (also known as OMV, or ""open market valuation"") is the price an asset would fetch in the marketplace, or the value that the investment community gives to a particular equity or business. Market value is also commonly used to refer to the market capitalization of a publicly traded company, and is calculated by multiplying the number of its outstanding shares by the current share price. Market value is easiest to determine for exchange-traded instruments such as stocks and futures, since their market prices are widely disseminated and easily available, but is a little more challenging to ascertain for over-the-counter instruments like fixed income securities. However, the greatest difficulty in determining market value lies in estimating the value of illiquid assets like real estate and businesses, which may necessitate the use of real estate appraisers and business valuation experts respectively.",investopedia,1,18.73,19.4,19.3,14.69,22.3,10.65,23.33333333,21.5
Market Value Added (MVA),"Market value added (MVA) is a calculation that shows the difference between the market value of a company and the capital contributed by all investors, both bondholders and shareholders. In other words, it is the market value of debt and equity minus all capital claims held against the company. It is calculated as:",investopedia,1,53.51,10.2,14.1,10.79,11,8.69,12.5,11.61
Market Value of Equity,Market value of equity is the total dollar value of a company's equity and is also known as market capitalization. This measure of a company's value is calculated by multiplying the current stock price by the total number of outstanding shares. A company's market value of equity is therefore always changing as these two input variables change. It is used to measure a company's size and helps investors diversify their investments across companies of different sizes and different levels of risk.,investopedia,1,42.41,12.4,14.6,12.07,13,8.74,14.125,12.56
Marketable Securities,"Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year, and that the rates at which they can be bought or sold have little effect on prices.",investopedia,1,53.04,12.4,0,11.15,14.9,9.12,17.25,15.88
Marketing,"Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Some marketing is done by affiliates on behalf of a company.",investopedia,1,32.19,12.2,14.1,13.8,11.7,10.48,10.5,12.31
Marketing Campaign,"Marketing campaigns promote products through different types of media, such as television, radio, print, and online platforms. Campaigns are not solely reliant on advertising and can include demonstrations, video conferencing, and other interactive techniques. Businesses operating in highly competitive markets and franchisees may initiate frequent marketing campaigns and devote significant resources to generating brand awareness and sales.",investopedia,1,18.35,15.4,15.5,21.17,20.1,13.72,14.16666667,16.02
Marketing Mix,"A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common classification that began as the four Ps: product, price, placement, and promotion.",investopedia,1,45.76,11.1,0,11.42,11.5,10.52,11.5,12.68
Marketing Plan,"A marketing plan is an operational document that outlines an advertising strategy that an organization will implement to generate leads and reach its target market. A marketing plan details the outreach and PR campaigns to be undertaken over a period, including how the company will measure the effect of these initiatives. The functions and components of a marketing plan include the following:",investopedia,1,33.54,13.7,16.7,13.69,14.3,10.52,16,16.67
Marketing Strategy,"A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements.",investopedia,1,32.22,14.2,0,17.52,18.6,12.26,16,15.16
Markets in Financial Instruments Directive (MiFID),The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union's financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.,investopedia,1,3.13,21.3,0,21.36,27,13.22,31,26.54
Markup,"A markup is the difference between an investment's lowest current offering price among broker-dealers and the price charged to the customer for said investment. Markups occur when brokers act as principals, buying and selling securities from their own accounts at their own risk rather than receiving a fee for facilitating a transaction. Most dealers are brokers, and vice versa, and so the term broker-dealer is common.",investopedia,1,49.15,11.9,14.1,13.23,15,10.95,14.66666667,13.65
Married Filing Jointly,"Married filing jointly refers to a filing status for married couples that have wed before the end of the tax year. When filing taxes under married filing jointly status, a married couple can record their respective incomes, deductions, credits, and exemptions on the same tax return.",investopedia,1,48.13,12.3,0,12.54,14.7,9.24,13,11.81
Married Filing Separately,"Married filing separately is a tax status for married couples who choose to record their respective incomes, exemptions, and deductions on separate tax returns. There is a potential tax advantage to filing separately when one spouse has significant medical expenses or miscellaneous itemized deductions, or when both spouses have about the same amount of income.",investopedia,1,35.1,15.2,0,14.97,18.7,10.17,20.25,18.27
Married Put,"A married put is the name given to an options trading strategy where an investor, holding a long position in a stock, purchases an at-the-money put option on the same stock to protect against depreciation in the stock's price.",investopedia,1,40.35,17.3,0,10.4,20.8,9.62,23.5,19.7
Martial Law,"Martial law is a law administered by the military rather than a civilian government. Martial law may be declared in an emergency or response to a crisis, or to control occupied territory.",investopedia,1,46.78,10.7,0,10.15,9.6,9.86,11,12.65
Marxian Economics,Marxian economics is a school of economic thought based on the work of 19th-century economist and philosopher Karl Marx.,investopedia,1,52.19,10.7,0,13.58,13.6,12.89,14.5,18.13
Mass Customization,Mass customization is the process of delivering market goods and services that are modified to satisfy a specific customer's needs. Mass customization is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production. Other names for mass customization include made-to-order or built-to-order.,investopedia,1,27.52,14,15.9,18.27,17.4,11.43,14.16666667,15.32
Mass Production,"Mass production is the manufacturing of large quantities of standardized products, often using assembly lines or automation technology. Mass production facilitates the efficient production of a large number of similar products.",investopedia,1,30.36,12.9,0,19.49,16.8,11.54,13.75,19.1
Master-Feeder Structure,"A master-feeder structure is a device commonly used by hedge funds to pool taxable and tax-exempt capital raised from investors in the United States and overseas into a master fund. Separate investment vehicles, otherwise known as feeders, are established for each group of investors.",investopedia,1,40.69,13.1,0,13.69,15.4,10.47,15.5,12.44
Master Limited Partnership (MLP),A master limited partnership (MLPs) is a business venture that exists in the form of a publicly traded limited partnership. They combine the tax benefits of a private partnership—profits are taxed only when investors receive distributions—with the liquidity of a publicly traded company.,investopedia,1,32.73,14,0,15.2,16.2,10.21,15.25,13.25
Master of Business Administration (MBA),"A master of business administration (MBA) is a graduate degree that provides theoretical and practical training for business or investment management. An MBA is designed to help graduates gain a better understanding of general business management functions. An MBA degree can have a general focus or a specific focus in fields such as accounting, finance, or marketing, and relationship management.",investopedia,1,25.8,14.6,16.3,14.79,15.3,10.16,15.33333333,16
Master of Public Administration (MPA),"A Master of Public Administration (MPA) is a master's level degree in public affairs that prepares recipients of the degree to serve in executive positions in municipal, state, and federal levels of government, and nongovernmental organizations (NGOs). The focus of the program centers on principles of public administration, policy development and management, and implementation of policies. It also prepares the candidate to deal with specific challenges faced in public administration.",investopedia,1,13.99,17.1,17.1,16.66,18.4,11.11,17.66666667,17.89
MasterCard,"Mastercard is the second-largest payments network, ranked behind Visa, in the global payments industry. Other major payments networks include American Express and Discover. Mastercard partners with member financial institutions all over the world to offer Mastercard-branded network payment cards.",investopedia,1,32.9,11.9,13,19.3,16.3,10.76,8.5,9.3
Matching Orders,Matching orders is the process by which a securities exchange pairs one or more unsolicited buy orders to one or more sell orders to make trades. This can be contrasted with requests for a quote (RFQ) in a security to proceed with a trade.,investopedia,1,66.07,9.5,0,8.01,10.5,9.39,13,12.44
Material Participation Tests,"Material participation tests are a set of Internal Revenue Services (IRS) criteria that evaluate whether a taxpayer has materially participated in a trade, business, rental, or other income-producing activity. A taxpayer materially participates if they pass one of the seven material participation tests. However, passive activity rules limit the deductibility of losses when taxpayer participation fails to meet at least one of the seven material participation tests.",investopedia,1,6.54,17.9,18.6,17.12,18.1,10.16,18.5,16.08
Material Requirements Planning (MRP),Material requirements planning (MRP) is a computer-based inventory management system designed to improve productivity for businesses.,investopedia,1,-12.45,19,0,23.78,21.3,16.27,15,23.9
Mature Industry,"A mature industry is one that has passed both the emerging and growth phases of industry growth. These tend to be larger, older, and more stable corporations.",investopedia,1,66.23,7.4,0,9.62,8.4,10.15,7.25,8.36
Maturity,"Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed or it will cease to exist. The term is commonly used for deposits, foreign exchange spot trades, forward transactions, interest rate and commodity swaps, options, loans, and fixed income instruments such as bonds.",investopedia,1,52.02,12.8,0,11.9,16.6,11.03,18.25,17.55
Max Pain,"Max pain, or the max pain price, is the strike price with the most open options contracts (i.e., puts and calls), and it is the price at which the stock would cause financial losses for the largest number of option holders at expiration.",investopedia,1,61.67,15.3,0,8.84,21.5,10.54,23.5,19.06
Maximum Drawdown (MDD),"A maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.",investopedia,1,52.7,10.5,0,8.3,9.2,9.68,12.75,12.81
Maximum Foreseeable Loss (MFL),The maximum foreseeable loss is an insurance term most frequently used in the insurance of businesses and business property. MFL is a worst-case situation in which the claim for damages and losses are significant.,investopedia,1,45.76,11.1,0,12.64,12,10.05,13,16.21
Maximum Loan Amount,"A maximum loan amount, or loan limit, describes the total amount of money that an applicant is authorized to borrow. Maximum loan amounts are used for standard loans, credit cards, and line-of-credit accounts.",investopedia,1,54.73,9.7,0,12.12,12.1,10.2,10.75,10.24
McClellan Oscillator,"The McClellan Oscillator is a market breadth indicator that is based on the difference between the number of advancing and declining issues on a stock exchange, such as the New York Stock Exchange (NYSE) or NASDAQ. The indicator is compared to stock market indexes related to the exchange.",investopedia,1,47.12,12.7,0,11.67,14.3,9.43,16.5,15.43
MCF (Measuring Natural Gas),"MCF is an abbreviation derived from the Roman numeral M for one thousand, put together with cubic feet (CF) to measure a quantity of natural gas. For example, a natural gas well that produces 400 MCF of gas per day operates with a daily production rate of 400,000 cubic feet. In terms of energy output, one thousand cubic feet (MCF) of gas is equal to approximately 1,000,000 BTU (British Thermal Units). One BTU is the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit at sea level (which is roughly equivalent to a kitchen match).",investopedia,1,53.75,12.2,13.4,8.94,13.3,9.82,15.75,14.59
McKinsey 7S Model,The McKinsey 7S Model is a framework for organizational effectiveness that postulates that there are seven internal factors of an organization that need to be aligned and reinforced in order for it to be successful.,investopedia,1,19.03,19.3,0,13.12,20.4,11.24,25.5,23.14
Mean-Variance Analysis,"Mean-variance analysis is the process of weighing risk, expressed as variance, against expected return. Investors use mean-variance analysis to make investment decisions. Investors weigh how much risk they are willing to take on in exchange for different levels of reward. Mean-variance analysis allows investors to find the biggest reward at a given level of risk or the least risk at a given level of return.",investopedia,1,54.93,9.6,12.2,12.58,11.8,7.6,10.625,8.98
Medallion Signature Guarantee,"A medallion signature guarantee is one of several special certification stamps that guarantees a signature that authorizes a transfer of securities is authentic. Parties will generally require a medallion signature guarantee when an owner wants to sell or transfer securities, such as stocks or bonds, held in physical certificate form. If an owner holds securities through a broker, they will not need to obtain a signature guarantee to sell or transfer the securities.",investopedia,1,29.89,15.1,17.5,14.16,16.4,9.6,18.5,15.2
Media Kit,"A media kit is a package of information, assembled by a company, to provide basic information about itself to reporters. The media kit is a promotional public relations tool that can serve several functions, including promoting the launch of a new company, promoting the launch of a new product or service by an existing company, giving a company a way to present itself as it would like to be seen, and/or saving time, by eliminating the need for a company's employees to repeatedly answer the same questions.",investopedia,1,18.86,21.4,0,11.16,23.3,9.61,30.75,22.46
Medicaid,"The term Medicaid refers to a public health insurance program that provides health care coverage to low-income families and individuals in the United States. The program is jointly funded by the federal government and individual states. It is operated at the state level which means that coverage and administration vary greatly from state to state. It is available only to individuals and families who meet specific income-based criteria. Recipients are U.S. citizens, permanent residents, or legal immigrants. Approximately 70.6 million people were covered by Medicaid as of September 2020.",investopedia,1,31.07,12.6,14.8,14.26,12.8,10.23,11.58333333,13.56
Medical Cost Ratio (MCR),"Medical cost ratio (MCR), also referred to as medical loss ratio, is a metric used in the private health insurance industry. The ratio is calculated by dividing total medical expenses paid by an insurer by the total insurance premiums it collected. A lower ratio likely indicates higher profitability for the insurer, as it signifies a larger amount of premiums are left over after paying customer insurance claims.",investopedia,1,31.92,14.3,17.1,12.54,14.3,10.16,17.16666667,16.08
Medium of Exchange,"A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties. For a system to function as a medium of exchange, it must represent a standard of value. Further, all parties must accept that standard. In modern economies, the medium of exchange is currency.",investopedia,1,57.47,8.7,9.5,10.08,8.9,8.05,7.125,9.16
Medium Term Note (MTN),"A medium-term note (MTN) is a note that usually matures in five to 10 years. A corporate MTN can be continuously offered by a company to investors through a dealer with investors being able to choose from differing maturities, ranging from nine months to 30 years, though most MTNs range in maturity from one to 10 years.",investopedia,1,51.01,13.2,0,9.29,14.7,10.31,17.75,15.61
Melt Up,"A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don't want to miss out on its rise, rather than by fundamental improvements in the economy.",investopedia,1,27.83,20.1,0,11.27,23.1,9.81,28.5,23.71
Memorandum of Understanding (MOU),A memorandum of understanding is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract.,investopedia,1,53.71,10.1,0,10.61,10.4,9.92,10.75,11.57
Mental Accounting,"Mental accounting refers to the different values a person places on the same amount of money, based on subjective criteria, often with detrimental results. Mental accounting is a concept in the field of behavioral economics. Developed by economist Richard H. Thaler, it contends that individuals classify funds differently and therefore are prone to irrational decision-making in their spending and investment behavior.",investopedia,1,39.03,11.6,14.9,15.48,13.9,12.16,11.875,15.96
Menu Costs,"Menu costs are a type of transaction cost incurred by firms when they change their prices. Menu costs are one microeconomic explanation offered by New Keynesian economists for macroeconomic price-stickiness, which may cause an economy to fail to adjust to changing macroeconomic conditions.",investopedia,1,41.19,12.9,0,15.61,16.5,11.31,15.75,16.97
Merchandising,"Merchandising is the promotion of goods and/or services that are available for retail sale. Merchandising includes the determination of quantities, setting prices for goods and services, creating display designs, developing marketing strategies, and establishing discounts or coupons. More broadly, merchandising may refer to retail sales itself: the provision of goods to end-user consumers.",investopedia,1,28.13,13.7,14.6,18.44,17.6,11.66,12.83333333,13.87
Merchant Bank,"The term merchant bank refers to a financial institution that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high-net-worth individuals (HWNIs). Merchant banks are experts in international trade, which makes them specialists in dealing with multinational corporations. Unlike retail or commercial banks, merchant banks do not provide financial services to the general public. Some of the largest merchant banks in the world include J.P. Morgan Chase, Goldman Sachs, and Citigroup.",investopedia,1,39.33,11.5,13.3,17.1,15.5,10.91,10.7,11.87
Merchant Discount Rate,The merchant discount rate is the rate charged to a merchant for payment processing services on debit and credit card transactions. The merchant must set up this service and agree to the rate before accepting debit and credit cards as payment.,investopedia,1,59.13,10.1,0,11.14,12.1,8.5,11.75,11.13
Merger Arbitrage,"Merger arbitrage, often considered a hedge fund strategy, involves simultaneously purchasing and selling the respective stock of two merging companies to create ""riskless"" profits. Because there is the uncertainty of the deal being completed, the stock price of the target company typically sells at a price below the acquisition price. A merger arbitrageur will review the probability of a merger not closing on time or at all and will then purchase the stock before the acquisition, expecting to make a profit when the merger or acquisition completes.",investopedia,1,18.86,21.4,0,14.23,25.7,11.06,20.16666667,23.84
Mergers and Acquisitions (M&A),"Mergers and acquisitions (M&A) is a general term that describes the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.",investopedia,1,-5.34,22.5,0,21.36,27.8,13.22,29,24.19
Merrill Lynch,"Merrill Lynch & Co. is the former name of a prominent Wall Street investment firm. Since its acquisition by Bank of America (BAC) in 2009, it has become known simply as “Merrill” and operates as a wealth management division of Bank of America.",investopedia,1,50.16,11.5,0,9.52,11.6,9.94,15.25,14.11
Merton Model,"The Merton model is an analysis model used to assess the credit risk of a company's debt. Analysts and investors utilize the Merton model to understand how capable a company is at meeting financial obligations, servicing its debt, and weighing the general possibility that it will go into credit default.",investopedia,1,29.18,15.4,0,12.02,15.1,10.56,18,16.4
Metrics,"Metrics are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production. Generally, a group of metrics will typically be used to build a dashboard that management or analysts review on a regular basis to maintain performance assessments, opinions, and business strategies.",investopedia,1,22.75,15.8,0,17.7,18.9,11.99,18.5,20.5
Metropolitan Statistical Area (MSA),"Metropolitan statistical areas (MSA) are delineated by the U.S. Office of Management and Budget (OMB) as having at least one urbanized area with a minimum population of 50,000.",investopedia,1,40.35,11.1,0,11.36,10.6,13.35,10.5,15.6
Mezzanine Debt,"Mezzanine debt occurs when a hybrid debt issue is subordinated to another debt issue from the same issuer. Mezzanine debt has embedded equity instruments attached, often known as warrants, which increase the value of the subordinated debt and allow greater flexibility when dealing with bondholders. Mezzanine debt is frequently associated with acquisitions and buyouts, for which it may be used to prioritize new owners ahead of existing owners in case of bankruptcy.",investopedia,1,30.2,15,16.7,14.51,16.5,10.31,17.66666667,16.82
Mezzanine Financing,"Mezzanine financing is a hybrid of debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default, generally, after venture capital companies and other senior lenders are paid.",investopedia,1,22.42,20.1,0,11.73,22,11.54,30,22
Michael Bloomberg,"Michael Bloomberg is a billionaire businessman, publisher, and philanthropist, and a former three-term mayor of New York City. The founder and owner of Bloomberg LP, he is one of the wealthiest people in the world, with an estimated net worth of $48 billion as of March 2020, according to Forbes. On Nov. 24, 2019, Bloomberg entered the 2020 race for president of the United States as a Democrat.",investopedia,1,62.35,13,0,10.8,18.8,10.66,21,18.31
Michael Milken,"Michael Milken is a philanthropist and current chair of a nonprofit think tank called Milken Institute. Milken was an executive at investment bank Drexel Burnham Lambert during the 1980s and used high-yield junk bonds for corporate financing and mergers and acquisitions. Milken amassed an enormous personal fortune and was indicted in 1989 by a federal grand jury and eventually spent nearly two years in prison after pleading guilty to securities fraud charges. While he is credited with founding the high-yield debt market, he was banned for life from the securities industry. On Feb. 18, 2020, President Trump granted him a full pardon.",investopedia,1,50.77,11.2,13.7,12.88,13.7,11.46,13.4,14.43
Michigan Consumer Sentiment Index (MCSI),The Michigan Consumer Sentiment Index (MCSI) is a monthly survey of consumer confidence levels in the United States conducted by the University of Michigan. The survey is based on telephone interviews that gather information on consumer expectations for the economy.,investopedia,1,34.26,13.5,0,15.37,15.6,10.94,14,16
Micro Cap,"A micro-cap is a publicly-traded company in the U.S. that has a market capitalization between approximately $50 million and $300 million. Micro-cap companies have greater market capitalization than nano caps, and less than small-, mid-, large- and mega-cap corporations. Companies with larger market capitalization do not automatically have stock prices that are higher than those companies with smaller market capitalizations.",investopedia,1,25.8,14.6,15.5,16.65,17.4,10.42,14.66666667,12
Micro Manager,"A micromanager is a boss or manager who gives excessive supervision to employees. A micromanager, rather than telling an employee what task needs to be accomplished and by when will watch the employee's actions closely and provide frequent criticism of the employee’s work and processes.",investopedia,1,40.18,13.2,0,13.81,15.3,10.72,17.25,17.89
Micro-Investing Platform,"A micro-investing platform is an application that allows users to regularly save small sums of money. Micro-investing platforms aim to remove traditional barriers to investing, such as brokerage account minimums, and encourage people to invest even if they have limited incomes and assets.",investopedia,1,24.27,15.2,0,15.2,16.4,10.95,16.25,16.97
Microcredit,"Microcredit is a common form of microfinance that involves an extremely small loan given to an individual to help them become self-employed or grow a small business. These borrowers tend to be low-income individuals, especially from less developed countries (LDCs). Microcredit is also known as ""microlending"" or ""microloan.""",investopedia,1,29.86,13.1,14.6,14.67,13.9,9.69,12,13.9
Microfinance,"Microfinance, also called microcredit​, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.",investopedia,1,17.68,17.8,0,16.6,20.5,11.79,22,19.77
Micromarketing,"Micromarketing is an approach to advertising that tends to target a specific group of people in a niche market. With micromarketing, products or services are marketed directly to a targeted group of customers.",investopedia,1,37.81,12.1,0,12.99,12.1,10.68,11.75,13.87
Mid-Cap,"Mid-cap (or mid-capitalization) is the term that is used to designate companies with a market cap (capitalization)—or market value—between $2 and $10 billion. As the name implies, a mid-cap company falls in the middle between large-cap (or big-cap) and small-cap companies. Classifications, such as large-cap, mid-cap, and small-cap are approximations of a company's current value; as such, they may change over time.",investopedia,1,42,12.5,13.6,13.58,16,7.97,13.66666667,12.15
Mid-Cap Fund,"A mid-cap fund is a pooled investment vehicle (e.g. a mutual fund or ETF) that explicitly invests in the stocks of mid-cap companies, or companies with market capitalizations ranging from approximately $2 billion to $10 billion.",investopedia,1,18.02,19.7,0,12.78,21.8,13.76,26,22.18
Middle East and North Africa (MENA),"MENA is an acronym for the Middle East and North Africa (MENA) region. The region is typically considered to include around 19 countries, but the definition can be stretched to include up to 24. The MENA region accounts for approximately 6% of the world's population, according to World Atlas, along with 60% of the world's oil reserves, and 45% of the world's natural gas reserves. Due to the region's substantial petroleum and natural gas reserves, MENA is an important source of global economic resources.",investopedia,1,58.62,10.3,13,10.85,12.9,10.32,13.5,13.16
Middle-Income Countries (MICs),"According to the World Bank, middle-income countries (MICs) are defined as economies with a gross national income (GNI) per capita between $1,036 and $12,535. MICs are one of the income categories that the World Bank uses to classify economies for operational and analytical purposes.",investopedia,1,26.82,20.5,0,14.06,26.6,13,30,23.96
Middle Market Firm,"The middle market is the segment of American businesses with annual revenues roughly in the range of $10 million to $1 billion, although some definitions set a higher top on the range. There are about 200,000 such firms, most of them privately owned or closely held, and their annual revenues combined total more than $10 trillion.",investopedia,1,51.52,13,0,10.68,15.8,10.95,17,14.06
Middle Office,"The middle office is the department in a financial services company, investment bank, or hedge fund that sits in between the front and back office. It typically manages risk and calculates profits and losses. It is generally in charge of information technology (IT) as well.",investopedia,1,56.25,9.1,13,11.01,10.2,9.99,10.5,13.11
Middleman,"The term middleman is an informal word for an intermediary in a transaction or process chain. A middleman, or intermediary, will facilitate interaction between parties, typically for a commission or fee. Some critics say that businesses and customers should try to ""cut out the middleman"" by dealing directly with each other, avoiding any increased costs or commissions.",investopedia,1,35.27,13.1,15.5,13.75,14,10.12,14.16666667,15.32
Midstream Oil Operations,"Midstream is a term used to describe one of the three major stages of oil and gas industry operations. Midstream activities include the processing, storing, transporting and marketing of oil, natural gas, and natural gas liquids.",investopedia,1,44.75,11.5,0,12.7,13,9.79,13,14.98
MiFID II Definition,"MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.",investopedia,1,40.18,13.2,0,13.81,15.3,12.47,16.75,17.89
Mill Levy,"The mill levy is a property tax. It is applied to a property based on its assessed value. The rate of the tax is expressed in mills and is equal to one dollar per $1,000 dollars of assessed value. The mill levy is calculated by determining how much revenue each tax jurisdiction will need for the upcoming year to fund its budget for public services. For example, funding public schools and maintaining parks and recreation areas. That revenue is then divided by the total value of all property within the area. Finally, the rate from each jurisdiction is added to obtain the mill levy for the entire area.",investopedia,1,64.3,8.1,10.6,8.76,8.1,9.23,7.857142857,9.12
Mill Rate,"The mill rate is the amount of tax payable per dollar of the assessed value of a property. The mill rate is based on ""mills."" It is a figure that represents the amount per $1,000 of the assessed value of the property, which is used to calculate the amount of property tax.",investopedia,1,70.47,9.9,0,6.97,11.8,7.96,10.33333333,12.71
Millage Rate,"A millage rate is the tax rate used to calculate local property taxes. The millage rate represents the amount per every $1,000 of a property's assessed value. Assigned millage rates are applied to the total taxable value of the property in order to arrive at the property tax amount.",investopedia,1,54.93,9.6,11.2,9.51,9.3,9.6,10.16666667,9.79
Millennial,"Millennial is the name given to the generation born between 1981 and 1996, dates now clarified by the Pew Research Center, although some have seen them as starting in 1980 and being born as late as 2004. Also known as Generation Y (Gen Y), the millennial generation follows Generation X, and in terms of numbers, has edged out the Baby Boomers as the biggest generation in American history.",investopedia,1,36.97,16.6,0,10.28,18.1,10.43,22,15.36
Milton Friedman,Milton Friedman was an American economist and statistician best known for his strong belief in free-market capitalism.,investopedia,1,37.3,12.3,0,16.53,15.3,10.05,12.5,13.86
Minimum Efficient Scale (MES),"The minimum efficient scale (MES) is the lowest point on a cost curve at which a company can produce its product at a competitive price. At the MES point, the company can achieve the economies of scale necessary for it to compete effectively in its industry.",investopedia,1,56.59,11.1,0,9.35,12,9.58,15.5,14.42
Minimum Lease Payment,The minimum lease payment is the lowest amount that a lessor can expect to make (and a lessee can expect to pay) over the lifetime of the lease. Accountants calculate minimum lease payments in order to assign a present value to a lease in order to record the lease properly in the company's books.,investopedia,1,60.99,11.5,0,8.71,13.4,8.78,16.5,14.5
Minimum Monthly Payment,The minimum monthly payment is the lowest amount a customer can pay on their revolving credit account per month to remain in good standing with the credit card company. Making the monthly minimum payment on time is the least a consumer needs to do to avoid late fees and to have a good repayment history on their credit report. The amount of the minimum monthly payment is calculated as a small percentage of the consumer's total credit balance.,investopedia,1,53.55,12.3,13,10.1,13.8,8.37,16,12.96
Minimum Wage,"A minimum wage is the lowest wage per hour that a worker may be paid, as mandated by federal law. It is a legally mandated price floor on hourly wages, below which nonexempt workers may not be offered or accept a job.",investopedia,1,67.08,9.1,0,6.73,9,9.19,12.5,11.26
How Does Bitcoin Mining Work?,"Bitcoin mining is the process by which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and development of the blockchain ledger. It is performed using very sophisticated computers that solve extremely complex computational math problems.",investopedia,1,32.73,14,0,15.37,16.2,12.78,15.25,16.97
Minority Interest,A minority interest is ownership or interest of less than 50% of an enterprise. The term can refer to either stock ownership or a partnership interest in a company. The minority interest of a company is held by an investor or another organization other than the parent company. Minority interests generally come with some rights for the stakeholder such as the participation in sales and certain audit rights.,investopedia,1,37.3,12.3,15.9,11.19,10.8,8.19,13.5,12.68
Minsky Moment,Minsky Moment refers to the onset of a market collapse brought on by the reckless speculative activity that defines an unsustainable bullish period. Minsky Moment is named after economist Hyman Minsky and defines the point in time where the sudden decline in market sentiment inevitably leads to a market crash.,investopedia,1,37.64,14.2,0,13.18,15.8,10.56,15.5,14.8
Misery Index,"The misery index is meant to measure the degree of economic distress felt by everyday people, due to the risk of (or actual) joblessness combined with an increasing cost of living. The misery index is calculated by adding the unemployment rate to the inflation rate.",investopedia,1,48.64,12.1,0,10.97,13,9.66,15.25,15.22
Misrepresentation,"A misrepresentation is a false statement of a material fact made by one party which affects the other party's decision in agreeing to a contract. If the misrepresentation is discovered, the contract can be declared void and, depending on the situation, the adversely impacted party may seek damages. In this type of contract dispute, the party that is accused of making the misrepresentation is the defendant, and the party making the claim is the plaintiff.",investopedia,1,37.64,14.2,14.1,12.02,15.2,9.51,16.16666667,14.8
Mission Statement,"A mission statement is used by a company to explain, in simple and concise terms, its purpose(s) for being. The statement is generally short, either a single sentence or a short paragraph.",investopedia,1,55.24,9.5,0,9.63,9.7,8.38,8.5,7.65
Mixed Economic System,"A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. According to neoclassical theory, mixed economies are less efficient than pure free markets, but proponents of government interventions argue that the base conditions required for efficiency in free markets, such as equal information and rational market participants, cannot be achieved in practical application.",investopedia,1,23.09,17.7,19.6,15.56,20.7,11.12,23.83333333,21
Mobile Banking,"Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.",investopedia,1,50.67,11.3,12.6,10.21,11.7,9.85,13,13.08
Mobile Commerce,"Mobile commerce, also known as m-commerce or mcommerce, is the use of wireless handheld devices like cellphones and tablets to conduct commercial transactions online, including the purchase and sale of products, online banking, and paying bills. The use of m-commerce activity is on the rise. According to market research company Statista, mobile commerce sales in the United States were an estimated $207.2 billion in 2017.",investopedia,1,49.45,11.8,11.9,13.69,15.5,11.76,13.16666667,12.37
Mobile Wallet,A mobile wallet is a virtual wallet that stores payment card information on a mobile device. Mobile wallets are a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider.,investopedia,1,58.62,10.3,0,10.21,11.7,9.57,12,11.26
Mode,"The mode is the value that appears most frequently in a data set. A set of data may have one mode, more than one mode, or no mode at all. Other popular measures of central tendency include the mean, or the average of a set, and the median, the middle value in a set.",investopedia,1,70.13,8,10.5,4.46,6.1,7.75,10.66666667,10.9
Model Risk,"Model risk is a type of risk that occurs when a financial model is used to measure quantitative information such as a firm's market risks or value transactions, and the model fails or performs inadequately and leads to adverse outcomes for the firm.",investopedia,1,27.83,20.1,0,11.1,22.7,12.01,26.5,21.85
Modern Portfolio Theory (MPT),"Modern portfolio theory (MPT) is a theory on how risk-averse investors can construct portfolios to maximize expected return based on a given level of market risk. Harry Markowitz pioneered this theory in his paper ""Portfolio Selection,"" which was published in the Journal of Finance in 1952. He was later awarded a Nobel Prize for his work on modern portfolio theory.",investopedia,1,32.57,16.2,0,12.6,18.1,11.18,21,16.67
Modified Accelerated Cost Recovery System (MACRS),The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes in the U.S. MACRS depreciation allows the capitalized cost of an asset to be recovered over a specified period via annual deductions. The MACRS system puts fixed assets into classes that have set depreciation periods.,investopedia,1,29.14,13.3,15.5,12.93,12.2,11.73,13,16.28
Modified Accrual Accounting,"Modified accrual accounting is an alternative bookkeeping method that combines accrual-basis accounting with cash-basis accounting. It recognizes revenues when they become available and measurable and, with a few exceptions, records expenditures when liabilities are incurred. Modified accrual accounting is commonly used by government agencies.",investopedia,1,-15.49,26.4,0,23.05,33.3,12.64,13.66666667,27.6
Modified Adjusted Gross Income (MAGI),"Modified adjusted gross income (MAGI) is an important number. First of all, it determines whether you can contribute to a Roth IRA and if you can deduct IRA contributions. It also factors into your eligibility for certain education tax benefits and income tax credits. Furthermore, it establishes your eligibility for income-based Medicaid and subsidized health insurance plans on the Health Insurance Marketplace.",investopedia,1,30.36,12.9,15.2,14.67,13.2,10.52,12.25,15.23
Modified Cash Basis,"Modified cash basis is an accounting method that combines elements of the two major bookkeeping practices: cash and accrual accounting. It seeks to get the best of both worlds, recording sales and expenses for long-term assets on an accrual basis and those of short-term assets on a cash basis. The goal here is to provide a clearer financial picture without dealing with the costs of switching to full-blown accrual accounting.",investopedia,1,44.41,15.8,0,12.54,20.4,10.34,15.33333333,18
Modified Endowment Contract,A modified endowment contract (MEC) is a tax qualification of a life insurance policy whose cumulative premiums exceed federal tax law limits. The taxation structure and IRS policy classification changes after a life insurance policy has morphed into a modified endowment contract.,investopedia,1,16.32,16.2,0,15.32,16,11.45,18,17.92
Modified Dietz Method,The modified Dietz method is a way to measure a portfolio's historical return that is based on a weighted calculation of its cash flow. The method takes into account the timing of cash flows and assumes that there is a constant rate of return over a specified period of time.,investopedia,1,54.56,11.9,0,8.88,12.4,9.61,15.5,14.8
Modified Gross Lease,"A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease's inception, but it takes on a proportional share of some of the other costs associated with the property as well, such as property taxes, utilities, insurance, and maintenance.",investopedia,1,21.74,22.4,0,11.04,26.1,12.51,33.5,26.13
Modified Internal Rate of Return (MIRR),"The modified internal rate of return (MIRR) assumes that positive cash flows are reinvested at the firm's cost of capital and that the initial outlays are financed at the firm's financing cost. By contrast, the traditional internal rate of return (IRR) assumes the cash flows from a project are reinvested at the IRR itself. The MIRR, therefore, more accurately reflects the cost and profitability of a project.",investopedia,1,57.3,10.8,14.1,11.84,14,9.46,14.83333333,13.7
Modigliani-Miller Theorem (M&M),"The Modigliani-Miller theorem (M&M) states that the market value of a company is correctly calculated as the present value of its future earnings and its underlying assets, and is independent of its capital structure.",investopedia,1,20.05,18.9,0,13.7,21.1,10.9,25,19.48
Modus Operandi,"Modus operandi is a Latin term used in English-speaking circles to describe an individual's or group's habitual way of operating, which forms a discernible pattern. The term is primarily used when discussing criminal behavior, but it is not exclusively uttered in this context. Modus operandi can also be defined as a specific method of operation.",investopedia,1,44.44,11.6,13.6,12.76,12.8,11.15,12.5,13.87
Mom-and-Pop,"Mom-and-pop is a colloquial term used to describe a small, family-owned, or independent business. Mom-and-pop stores are often operations that struggle to compete with more substantial establishments, such as big-box retailers, who generally boast more buying power than smaller players. In the last few years, ""shop local"" and ""shop small"" have been used as slogans in marketing campaigns. The term ""mom-and-pop"" also refers to inexperienced investors who casually play the market.",investopedia,1,44.95,11.4,13.8,14.21,14.8,9.86,12.375,12.75
Momentum,"Momentum is the rate of acceleration of a security's price—that is, the speed at which the price is changing. Momentum trading is a strategy that seeks to capitalize on momentum to enter a trend as it is picking up steam.",investopedia,1,51.18,11.1,0,8.53,10,8.58,13.5,13
Momentum Investing,Momentum investing is a strategy that aims to capitalize on the continuance of an existing market trend.,investopedia,1,28.84,13.5,0,12.12,11.5,11.91,14.5,20.92
Monetarist,"A monetarist is an economist who holds the strong belief that money supply—including physical currency, deposits, and credit—is the primary factor affecting demand in an economy. Consequently, the economy's performance—its growth or contraction—can be regulated by changes in the money supply.",investopedia,1,25.29,14.8,0,17.64,17.9,13.13,16.75,20.88
Monetarist Theory,"The monetarist theory is an economic concept that contends that changes in money supply are the most significant determinants of the rate of economic growth and the behavior of the business cycle. When monetarist theory works in practice, central banks, which control the levers of monetary policy, can exert much power over economic growth rates.",investopedia,1,35.1,15.2,0,13.41,17.4,11.32,19.75,16.82
Monetary Aggregates,"Money aggregates are broad categories that measure the money supply in an economy. In the United States, labels are attributed to standardized monetary aggregates:",investopedia,1,42.38,10.3,0,14.95,12,9.5,8.5,14.8
Monetary Base,The monetary base (or M0) is the total amount of a currency that is either in general circulation in the hands of the public or in the form of commercial bank deposits held in the central bank's reserves. This measure of the money supply is not often cited since it excludes other forms of non-currency money that are prevalent in a modern economy.,investopedia,1,47.96,14.4,0,9.06,15.7,9.96,19.25,15.77
Monetary Policy,"Monetary policy, the demand side of economic policy, refers to the actions undertaken by a nation's central bank to control money supply and achieve macroeconomic goals that promote sustainable economic growth.",investopedia,1,23.09,17.7,0,16.26,21.4,13.83,23.5,20.14
Monetize,"Monetize refers to the process of turning a non-revenue-generating item into cash. In many cases, monetization looks to novel methods of creating income from new sources; for instance, by embedding ad revenues inside of social media video clips to pay content creators. Sometimes, monetization is due to privatization (sometimes called commodification), whereby a previously free or public asset is turned into a profit center—such as a public road being converted into a private tollway.",investopedia,1,29.48,15.3,14.1,14.63,17.3,12.54,16,14.74
Money Center Banks,"A money center bank is similar in structure to a standard bank; however, it's borrowing, and lending activities are with governments, large corporations, and regular banks. These types of financial institutions (or designated branches of these institutions) generally do not borrow from or lend to consumers.",investopedia,1,31.21,14.6,0,14.92,17,10.61,17.5,17.9
Money Factor,"The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.",investopedia,1,52.19,10.7,0,11.26,11.9,11.23,12.5,13.92
Money Flow,"Money flow is calculated by averaging the high, low and closing prices, and multiplying by the daily volume. Comparing that result with the number for the previous day tells traders whether money flow was positive or negative for the current day. Positive money flow indicates that prices are likely to move higher, while negative money flow suggests prices are about to fall. The below example shows negative money flow between Day One and Day Two:",investopedia,1,60.85,9.4,13,11.43,11.7,8.78,12.375,12.32
Money Flow Index (MFI),The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100.,investopedia,1,64,8.2,10.5,8.58,8.2,10.13,8.5,9.68
Money Illusion,"Money illusion is an economic theory positing that people have a tendency to view their wealth and income in nominal dollar terms, rather than in real terms. In other words, it is assumed that people do not take into account the level of inflation in an economy, wrongly believing that a dollar is worth the same as it was the prior year.",investopedia,1,48.47,14.2,0,9.06,15.4,8.74,19.5,17.56
Money Laundering,"Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process ""launders"" it to make it look clean.",investopedia,1,45.59,13.2,0,11.78,15.3,9.55,18.25,17.26
Money Management,"Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group. The term can also refer more narrowly to investment management and portfolio management.",investopedia,1,19.87,14.8,0,15.72,15.2,10.82,15.25,17.29
Money Manager,"A money manager is a person or financial firm that manages the securities portfolio of an individual or institutional investor. Typically, a money manager employs people with various expertise ranging from research and selection of investment options to monitoring the assets and deciding when to sell them.",investopedia,1,13.78,17.2,0,14.86,16.5,11.52,18.75,19.61
Money Market,"The money market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.",investopedia,1,47.79,10.3,9.7,14.61,13.2,11.05,7.833333333,9.56
Money Market Fund,"A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries). Money market funds are intended to offer investors high liquidity with a very low level of risk. Money market funds are also called money market mutual funds.",investopedia,1,38.52,11.8,12.6,13.57,13,10.18,10.625,10.76
Money Market Yield,"The money market yield is the interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit, U.S. Treasury bills, and municipal notes. Money market yield is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It can also be calculated using a bank discount yield.",investopedia,1,45.46,11.2,13.8,10.84,10.8,10.22,12.125,14.46
Money Order,"A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. A money order functions much like a check, in that the person who purchased the money order may stop payment.",investopedia,1,49.15,11.9,0,9.63,11.9,8.68,13,11.53
Money Purchase Pension Plan,A money purchase pension plan is an employee retirement benefit plan that resembles a corporate profit-sharing program. It requires the employer to deposit a set percentage of the participating employee's salary in the account every year. The employee is not permitted to contribute to the fund but may choose how to invest the money based on options offered by the employer.,investopedia,1,42.41,12.4,15.5,12.18,13,10.6,14.83333333,15.33
Money Supply,The money supply is all the currency and other liquid instruments in a country's economy on the date measured. The money supply roughly includes both cash and deposits that can be used almost as easily as cash.,investopedia,1,61.16,9.3,0,9.52,10,9.25,11.25,11.72
Money-Weighted Rate of Return,The money-weighted rate of return (MWRR) is a measure of the performance of an investment. The MWRR is calculated by finding the rate of return that will set the present values (PV) of all cash flows equal to the value of the initial investment. The MWRR is equivalent to the internal rate of return (IRR).,investopedia,1,69.82,8.1,11.9,8.36,9.4,8.28,11.5,10.96
Monopolist,"A monopolist is an individual, group, or company that controls all of the market for a particular good or service. A monopolist probably also believes in policies that favor monopolies since it gives them greater power. A monopolist has little incentive to improve their product because customers have no alternatives. Instead, their motivation is focused on protecting the monopoly.",investopedia,1,34.56,13.3,15,14.1,14.5,9.43,10.625,14.66
Monopolistic Competition,"Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors. Monopolistic competition is closely related to the business strategy of brand differentiation",investopedia,1,17.64,15.7,17.1,15.55,15.4,10.77,15.83333333,17.37
Monopolistic Markets,"A monopolistic market is a theoretical condition that describes a market where only one company may offer products and services to the public. A monopolistic market is the opposite of a perfectly competitive market, in which an infinite number of firms operate. In a purely monopolistic model, the monopoly firm can restrict output, raise prices, and enjoy super-normal profits in the long run.",investopedia,1,33.24,13.8,15,12.65,14,10.19,14.83333333,14.11
Month-To-Month Tenancy,"A month-to-month tenancy is a periodic tenancy created when the renter is granted possession of the property with no definite expiration date and pays the owner on a monthly basis. This tenancy is most commonly found in residential leases. In situations where there is no written agreement, tenancy is also considered to be on a month-to-month basis.",investopedia,1,35.27,13.1,16.3,11.84,12.4,9.57,14.83333333,15.32
Monthly Active User (MAU),"Monthly active users (MAU) is a key performance indicator (KPI) used by social networking and other companies to count the number of unique users who visit a site within the past month. Websites generally recognize monthly active users via an identification number, email address, or username.",investopedia,1,39.67,13.4,0,13.41,15.6,11.64,15,15.29
Moore's Law,"Moore's Law refers to Moore's perception that the number of transistors on a microchip doubles every two years, though the cost of computers is halved. Moore's Law states that we can expect the speed and capability of our computers to increase every couple of years, and we will pay less for them. Another tenet of Moore's Law asserts that this growth is exponential.",investopedia,1,67.08,9.1,11.9,10.04,12,8.69,12.83333333,11.57
Moral Hazard,"Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about its assets, liabilities, or credit capacity. In addition, moral hazard also may mean a party has an incentive to take unusual risks in a desperate attempt to earn a profit before the contract settles. Moral hazards can be present at any time two parties come into agreement with one another. Each party in a contract may have the opportunity to gain from acting contrary to the principles laid out by the agreement.",investopedia,1,47.32,12.6,13,10.1,12.8,9.3,14.875,14.15
Moral Suasion,"Moral suasion is the act of persuading a person or group to act in a certain way through rhetorical appeals, persuasion, or implicit and explicit threats—as opposed to the use of outright coercion or physical force. In economics, it is sometimes used in reference to central banks.",investopedia,1,47.62,12.5,0,11.38,13.9,10.85,16.25,17.06
Moratorium,"A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to moratorium have been resolved. A moratorium may be imposed by a government, by regulators, or by a business.",investopedia,1,31.21,14.6,0,11.03,13.3,8.9,16.5,14.42
Morbidity Rate,"The term morbidity rate refers to the rate at which a disease occurs in a population. These illnesses can range from acute to chronic, long-lasting conditions. The rate of morbidity can be used to determine the health of a population and its health care needs. Morbidity rates are also used in actuarial professions, such as health insurance, life insurance, and long-term care insurance to figure out the premiums to charge customers. This rate shouldn't be confused with mortality rate, another metric used to highlight the frequency of death in a given population.",investopedia,1,52.8,10.5,14.3,11.89,12.1,8.67,13,12.14
Morning Star,A morning star is a visual pattern consisting of three candlesticks that is interpreted as a bullish sign by technical analysts. A morning star forms following a downward trend and it indicates the start of an upward climb. It is a sign of a reversal in the previous price trend. Traders watch for the formation of a morning star and then seek confirmation that a reversal is indeed occurring using additional indicators.,investopedia,1,53.21,10.3,14.2,10.32,10.5,9.13,12.75,14.42
Morningstar Inc.,"Morningstar is a Chicago-based investment research firm that compiles and analyzes fund, stock, and general market data. They also provide an extensive line of internet, software and print-based products for individual investors, financial advisors and institutional clients. The research reaches all corners of the world, including North America, Europe, Australia, and Asia. Among its many offerings, Morningstar's comprehensive, one-page mutual and exchange-traded fund (ETF) reports are widely used by investors to determine the investment quality of the more than 2,000 funds. The Motley Fool, for instance, uses them as a chief information source.",investopedia,1,31.55,16.6,17.5,17.07,22.8,12.81,13.1,18.85
Morningstar Risk Rating,"The Morningstar risk rating, or simply Morningstar rating, is a ranking given to publicly traded mutual funds and exchange-traded funds (ETFs) by the investment research firm Morningstar. Risk is assessed across five levels designed to help investors quickly identify funds to consider for their portfolios. Funds receive ratings ranging from 1 to 5, with 1 given to the worst performers and 5 for the best. The ranking is based on variations in a fund's monthly returns – with an emphasis on downside variations – as compared to similar funds.",investopedia,1,57.3,10.8,12.6,12.02,13.8,10.77,13.875,12.96
Morningstar Sustainability Rating,"The Morningstar Sustainability Rating is a reliable and objective way for investors to see how approximately 20,000 mutual funds and exchange-traded funds (ETFs) are meeting environmental, social, and corporate governance (ESG) challenges.",investopedia,1,5.16,20.5,0,19.39,25.2,14.6,25,22.8
Mortality Table,"A mortality table, also known as a life table or actuarial table, shows the rate of deaths occurring in a defined population during a selected time interval, or survival rates from birth to death. A mortality table typically shows the general probability of a person's death before their next birthday, based on their current age. These tables are typically used in order to inform the construction of insurance policies and other forms of liability management.",investopedia,1,29.18,15.4,15.9,12.31,15.4,9.93,17.5,16.4
Mortgage,"A mortgage is a loan that the borrower uses to purchase or maintain a home or other form of real estate and agrees to pay back over time, typically in a series of regular payments. The property serves as collateral to secure the loan.",investopedia,1,57.61,10.7,0,7.49,10,10.11,13.5,13.35
Mortgage-Backed Security (MBS),A mortgage-backed security (MBS) is an investment similar to a bond that is made up of a bundle of home loans bought from the banks that issued them. Investors in MBS receive periodic payments similar to bond coupon payments.,investopedia,1,60.14,9.7,0,9.81,10.9,10.27,12.75,11.9
Mortgage Banker,"A mortgage banker is a company, individual, or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. After a mortgage is originated, a mortgage banker might retain the mortgage in a portfolio, or they might sell the mortgage to an investor. Additionally, after a mortgage is originated, a mortgage banker might service the mortgage, or they might sell the servicing rights to another financial institution. A mortgage banker's primary business is to earn the fees associated with loan origination. Most mortgage bankers do not retain the mortgage in a portfolio.",investopedia,1,45.96,11,12.5,12.93,12.5,8.22,10.83333333,11.08
Mortgage Bond,"A mortgage bond is secured by a mortgage, or a pool of mortgages, that are typically backed by real estate holdings and real property, such as equipment.",investopedia,1,52.53,12.6,0,9.46,14.2,10.82,15.5,13.76
Mortgage Broker,"A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages. A mortgage broker helps borrowers connect with lenders and seeks out the best fit in terms of the borrower's financial situation and interest-rate needs. The mortgage broker also gathers paperwork from the borrower and passes that paperwork along to a mortgage lender for underwriting and approval purposes. The broker earns a commission from either the borrower, the lender, or both at closing.",investopedia,1,49.35,11.8,14.6,13.34,14.8,9.8,14.875,14.24
Mortgage Forbearance Agreement,"A mortgage forbearance agreement is an agreement made between a mortgage lender and a delinquent borrower. In this agreement, a lender agrees not to exercise its legal right to foreclose on a mortgage, and the borrower agrees to a mortgage plan that will—over a certain time period—bring the borrower current on their payments.",investopedia,1,53.04,12.4,0,12.65,16.3,8.82,16.25,13.62
Mortgage Insurance,"Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, passes away, or is otherwise unable to meet the contractual obligations of the mortgage. Mortgage insurance can refer to private mortgage insurance (PMI), qualified mortgage insurance premium (MIP) insurance, or mortgage title insurance. What these have in common is an obligation to make the lender or property holder whole in the event of specific cases of loss.",investopedia,1,37.34,14.3,17.1,13.93,17,10.09,18.66666667,15.91
Mortgage Originator,A mortgage originator is an institution or individual that works with a borrower to complete a a home loan transaction. A mortgage originator is the original mortgage lender and can be either a mortgage broker or a mortgage banker. Mortgage originators are part of the primary mortgage market and must work with underwriters and loan processors from the application date until closing to gather the necessary documentation and guide the file through the approval process.,investopedia,1,37.64,14.2,15.5,13.58,16.1,9.3,17.16666667,16.93
Mortgage Rate,"A mortgage rate is the rate of interest charged on a mortgage. Mortgage rates are determined by the lender and can be either fixed, staying the same for the term of the mortgage, or variable, fluctuating with a benchmark interest rate. Mortgage rates vary for borrowers based on their credit profile. Mortgage rate averages also rise and fall with interest rate cycles and can drastically affect the homebuyers' market.",investopedia,1,62.38,8.9,11.7,11.25,11.2,9.3,10.875,10.98
Mortgage Rate Lock Float Down,The term mortgage rate lock float down refers to a financing option that locks in the interest rate on a mortgage with the option to reduce it if market rates fall during the lock period. A typical rate lock provides a borrower with security against an increase during the rate lock period. The float down option specifically allows the borrower to take advantage of a fall in interest rates during the lock period.,investopedia,1,55.27,11.6,14.6,10.04,12.9,8.52,16.16666667,14.1
Mortgage Recast,"A mortgage recast, also called a loan recast, is a feature of some types of mortgages where remaining monthly payments are recalculated based on a new amortization schedule. During a mortgage recast, the borrower pays a large sum toward their principal, and their mortgage is then recalculated based on the new, lower balance outstanding.",investopedia,1,44.07,13.8,0,12.89,16.9,10.53,17,15.24
Mortgage Servicing Rights (MSR),Mortgage servicing rights (MSR) refer to a contractual agreement in which the right to service an existing mortgage is sold by the original mortgage lender to another party that specializes in the various functions involved with servicing mortgages.,investopedia,1,24.45,19.3,0,15.21,23.9,11.75,27,21.52
Mortgagee,"A mortgagee is a lender: specifically, an entity that lends money to a borrower for the purpose of purchasing real estate. In a mortgage transaction, the lender serves as the mortgagee and the borrower is known as the mortgagor.",investopedia,1,60.14,9.7,0,10.21,11.3,9.87,12.75,12.93
Mortgagor,A mortgagor is that who borrows money from a lender in order to purchase a home or other piece of real estate. Mortgagors can obtain mortgage loans with varying terms based on their credit profile and collateral. In a mortgage loan the mortgagor must pledge the title to the real property as collateral for the loan.,investopedia,1,60.95,9.4,8.8,9.46,9.9,9.36,10.33333333,8.91
Mosaic Theory,"The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.",investopedia,1,10.23,18.5,0,15.44,18.9,11.12,23.5,21.17
Most-Favored-Nation Clause,"A most-favored-nation (MFN) clause requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other World Trade Organization member countries. Although its name implies favoritism toward another nation, it denotes the equal treatment of all countries.",investopedia,1,39.67,13.4,0,15.9,17.7,10.96,14.5,12.68
Mothballing,"Mothballing is the deactivation and preservation of equipment or a production facility for possible future use or sale. It can also mean the setting aside of an object or idea for possible reuse or revisiting in the future. Mothballing is common with expensive capital goods, machinery, aircraft, ships, properties, and other assets that are costly to create, have long useful lives, and may be subject to unpredictable market disruptions.",investopedia,1,39.67,13.4,15,13.35,15.4,9.35,15.83333333,14.42
Moving Average (MA),"In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. In finance, a moving average (MA) is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data by creating a constantly updated average price.",investopedia,1,39.67,13.4,17.1,9.81,12.3,9.13,17.5,16.74
Moving Average Convergence Divergence (MACD),Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.,investopedia,1,9.89,16.6,0,17.23,17.2,12.06,17,20.23
MSCI All Country World Index (ACWI),"The MSCI All Country World Index (ACWI) is a stock index designed to track broad global equity-market performance. Maintained by Morgan Stanley Capital International (MSCI), the index is comprised of the stocks of about 3,000 companies from 23 developed countries and 26 emerging markets.",investopedia,1,40.69,13.1,0,13.81,15.8,12.62,14,13.35
MSCI Inc.,"MSCI is an acronym for Morgan Stanley Capital International. It is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance tools to institutional investors and hedge funds. MSCI is perhaps best known for its benchmark indexes—including the MSCI Emerging Market Index and MSCI Frontier Markets Index—which are managed by MSCI Barra. The company continues to launch new indexes each year.",investopedia,1,46.27,10.9,13.4,15.19,13.9,11.63,11.5,12.66
Multi-Asset Class,"A multi-asset class, also known as a multiple-asset class or multi-asset fund, is a combination of asset classes (such as cash, equity or bonds) used as an investment. A multi-asset class investment contains more than one asset class, thus creating a group or portfolio of assets. The weights and types of classes vary according to the individual investor.",investopedia,1,43.43,12,14.6,11.31,12.5,10.04,13.66666667,13.24
Multi-Factor Model,A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices. A multi-factor model can be used to explain either an individual security or a portfolio of securities. It does so by comparing two or more factors to analyze relationships between variables and the resulting performance.,investopedia,1,18.35,15.4,16.3,14.45,14.4,10.67,14.83333333,17.42
Multicollinearity,Multicollinearity is the occurrence of high intercorrelations among two or more independent variables in a multiple regression model. Multicollinearity can lead to skewed or misleading results when a researcher or analyst attempts to determine how well each independent variable can be used most effectively to predict or understand the dependent variable in a statistical model.,investopedia,1,-9.74,28.3,0,17.77,34,12.11,21.25,30.73
Multilateral Development Bank (MDB),"A multilateral development bank (MDB) is an international financial institution chartered by two or more countries for the purpose of encouraging economic development in poorer nations. Multilateral development banks consist of member nations from developed and developing countries. MDBs provide loans and grants to member nations to fund projects that support social and economic development, such as the building of new roads or providing clean water to communities.",investopedia,1,23.05,15.7,16.3,16.77,17.7,11.26,16.66666667,15.55
Multilateral Investment Guarantee Agency (MIGA),The Multilateral Investment Guarantee Agency is an international institution that promotes investment in developing countries by offering political and economic risk insurance.,investopedia,1,-27.01,22.5,0,23.32,22.8,14.78,22,26.98
Multilateral Trading Facility (MTF),A multilateral trading facility (MTF) is a European term for a trading system that facilitates the exchange of financial instruments between multiple parties.,investopedia,1,14.29,17,0,16.54,17.9,12.33,18.5,21.37
Multilevel Marketing,"Multilevel marketing (MLM) is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits' sales. The recruits are the distributor's ""downline."" Distributors also make money through direct sales of products to customers. Amway, which sells health, beauty, and home care products, is an example of a well-known direct sales company that uses multilevel marketing.",investopedia,1,45.96,11,14.2,14.79,14.3,9.42,12.125,12.69
Multinational Corporation (MNC),"A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries.",investopedia,1,25.08,14.9,16.3,17.06,17.4,10.27,15.66666667,16.67
Multiple,"A multiple measures some aspect of a company's financial well-being, determined by dividing one metric by another metric. Metrics are quantitative tools that measure a company's performance. The metric in the numerator is typically larger than the one in the denominator. Investors use multiples to quantify a company's growth, productivity, and efficiency. They use multiples to make comparisons among companies and find the best investment opportunities.",investopedia,1,24.24,13.2,15.4,15.12,13.1,10.51,11.2,16.19
Multiple Employer Welfare Arrangement (MEWA),"A multiple employer welfare arrangement (MEWA) is a system for marketing health and welfare benefits to employers, for their employees. Also described as a ""multiple employer trust (MET),"" a multiple employer welfare arrangement happens when a group of employers combines their contributions in a self-contributing benefits plan for the benefit of their employees.",investopedia,1,19.2,17.2,0,15.96,19.6,9.72,22.25,18.15
Multiple Linear Regression (MLR),"Multiple linear regression (MLR), also known simply as multiple regression, is a statistical technique that uses several explanatory variables to predict the outcome of a response variable. The goal of multiple linear regression (MLR) is to model the linear relationship between the explanatory (independent) variables and response (dependent) variable.",investopedia,1,12.77,17.6,0,17.7,20.1,10.65,18.75,15.51
Multiple Listing Service (MLS),"A multiple listing service (MLS) is a database established by cooperating real estate brokers to provide data about properties for sale. An MLS allows brokers to see one another's listings of properties for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling broker benefit by consolidating and sharing information, and by sharing commissions.",investopedia,1,23.6,17.5,0,14.98,20.1,11.62,14.5,20.07
Multiples Approach,"The multiples approach is a valuation theory based on the idea that similar assets sell at similar prices. It assumes that the type of ratio used in comparing firms, such as operating margins or cash flows, is the same across similar firms.",investopedia,1,58.62,10.3,0,9.63,11.4,10.69,14.5,14.11
Multiplier Effect,"The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.",investopedia,1,38.66,13.8,0,14.22,16.9,12.06,16,16.27
Mumbai Interbank Offered Rate (MIBOR),"The Mumbai Interbank Offer Rate (MIBOR) is one iteration of India's interbank rate, which is the rate of interest charged by a bank on a short-term loan to another bank. As India's financial markets have continued to develop, India felt it needed a reference rate for its debt market, which led to the development and introduction of the MIBOR. MIBOR is used in conjunction with the Mumbai interbank bid and forward rates (MIBID and MIFOR) by the central bank of India to set short-term monetary policy.",investopedia,1,42.34,14.5,15.9,10.75,16,9.47,19.33333333,17.06
Municipal Bond,"A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools. They can be thought of as loans that investors make to local governments. Municipal bonds are exempt from federal taxes and most state and local taxes, making them especially attractive to people in high income tax brackets.",investopedia,1,41.4,12.8,14.6,12.53,14,10.61,14.66666667,14.77
Municipal Securities Rulemaking Board (MSRB),"The Municipal Securities Rulemaking Board, (MSRB), is a regulating body which creates rules and policies for investment firms and banks in the issuing and sale of municipal bonds, notes, and other municipal securities. States, cities and counties issue municipal securities for a variety of reasons.",investopedia,1,31.72,14.4,0,14.74,16.5,11.42,17.25,15.22
Murabaha,"Murabaha, also referred to as cost-plus financing, is an Islamic financing structure in which the seller and buyer agree to the cost and markup of an asset. The markup takes place of interest, which is illegal in Islamic law. As such, murabaha is not an interest-bearing loan (qardh ribawi) but is an acceptable form of credit sale under Islamic law. As with a rent-to-own arrangement, the purchaser does not become the true owner until the loan is fully paid.",investopedia,1,59.84,9.8,12.6,9.69,11.2,8.62,12.625,11.46
Musharakah,"Musharakah is a joint enterprise or partnership structure in Islamic finance in which partners share in the profits and losses of an enterprise. Since Islamic law (Sharia) does not permit profiting from interest in lending, musharakah allows for the financier of a project or company to achieve a return in the form of a portion of the actual profits according to a predetermined ratio. However, unlike a traditional creditor, the financier also will share in any losses should they occur, also on a pro rata basis. Musharakah is a type of shirkah al-amwal (or partnership), which in Arabic means ""sharing.""",investopedia,1,46.1,13,14.2,11.55,15,10.72,16.25,14
Mutual Company,"A mutual company is a private firm that is owned by its customers or policyholders. The company's customers are also its owners. As such, they are entitled to receive a share of the profits generated by the mutual company.",investopedia,1,49.82,9.5,12.5,8.45,7.3,8.73,8.166666667,10.33
Mutual Fund,"A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.",investopedia,1,37.64,14.2,15.9,12.71,15.8,10.98,17.5,16.4
Mutual Insurance Company,"A mutual insurance company is an insurance company that is owned by policyholders. The sole purpose of a mutual insurance company is to provide insurance coverage for its members and policyholders, and its members are given the right to select management. Mutual insurance companies make investments in portfolios like a regular mutual fund, with any profits returned to members as dividends or a reduction in premiums. Federal law, rather than state law, determines whether an insurer can be classified as a mutual insurance company.",investopedia,1,33.24,13.8,18.8,13.46,14.5,9.19,18,16.02
Mutually Exclusive,Mutually exclusive is a statistical term describing two or more events that cannot happen simultaneously. It is commonly used to describe a situation where the occurrence of one outcome supersedes the other.,investopedia,1,29.86,13.1,0,13.98,12.5,9.86,12.5,17.65
NACHA,"Nacha is the steward of the electronic system that connects all U.S. bank accounts and facilitates the movement of money among them. According to the organization, $55.8 trillion moved through its Automated Clearing House (ACH) Network in 2019.",investopedia,1,52.19,10.7,0,13.23,14,13.3,12,12.86
Naked Call,A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security.,investopedia,1,47.12,12.7,0,11.32,14.1,10.75,15,14.6
Naked Option,"A naked option is created when the option writer (seller) does not currently own any, or enough, of the underlying security to meet their potential obligation.",investopedia,1,36.63,14.6,0,11.78,15.8,11,19,19.63
Naked Put,"A naked put is an options strategy in which the investor writes, or sells, put options without holding a short position in the underlying security. A naked put strategy is sometimes referred to as an ""uncovered put"" or a ""short put"" and the seller of an uncovered put is known as a naked writer.",investopedia,1,33.59,22,0,8.84,26.8,10.41,17,25.3
Naked Shorting,"Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than the tradable shares in the market.",investopedia,1,60.65,9.5,10.5,10.5,11,9.29,11.16666667,11.11
Named Beneficiary,"A named beneficiary is an individual, decreed by a written legal document, who is entitled to collect assets from a trust, insurance policy, pension plan account, IRA, or any other financial instrument. Multiple named beneficiaries of a single property will share in the proceeds at the time of disposition. In some cases, such as an annuity policy, the policyholder and the named beneficiary may be the same person.",investopedia,1,31.51,14.5,16.3,11.84,14.1,10.1,16.66666667,17.32
Named Perils Insurance Policy,"A named perils insurance policy is a home insurance (or business) insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. Named peril coverage may be purchased as a less expensive alternative to a comprehensive coverage or broad policies, which are policies that tend to offer coverage to most perils.",investopedia,1,32.57,16.2,0,13.01,18.1,9.86,22,16.67
Nanny Tax,"A nanny tax is a federal tax paid by people who employ household employees and pay wages over a certain amount. In 2021, for cash wages of $2,300 or more per employee, social security and Medicare taxes must be withheld at a rate of 15.3%, with the employer and employee each paying half (7.65%). If paying cash wages of $1,000 or more per quarter per employee, the employer pays a 6% unemployment tax on annual cash wages up to $7,000.",investopedia,1,61.29,11.3,13.6,7.43,12.9,10.49,16.66666667,14.18
Narrow Money,"Narrow money is a category of money supply that includes all physical money such as coins and currency,  demand deposits, and other liquid assets held by the central bank.",investopedia,1,42.04,14.6,0,11.73,16.6,11.06,17.5,15.74
Nasdaq,"Nasdaq is a global electronic marketplace for buying and selling securities. Nasdaq was created by the National Association of Securities Dealers (NASD), which is now known as the Financial Industry Regulatory Authority (FINRA). The marketplace was created so that investors could trade securities on a computerized, speedy, and transparent system, and it commenced operations on February 8, 1971.",investopedia,1,26.51,14.4,17.1,15.72,16,11.67,15.66666667,16.69
Nasdaq Capital Market,"The Nasdaq Capital Market is one of Nasdaq's U.S. market tiers containing early-stage companies that have relatively lower market capitalizations. Listing requirements for companies on the Nasdaq Capital Market are less stringent than for the two other Nasdaq market tiers, which focus on larger companies with higher market capitalization.",investopedia,1,21.23,16.4,0,16.89,19,10.33,17.25,14.7
Nasdaq Composite Index,"The Nasdaq Composite Index is the market capitalization-weighted index of over 2,500 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks, as well as limited partnership interests. The index includes all Nasdaq-listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debenture securities.",investopedia,1,32.22,14.2,15.5,17.4,19,12.38,15.66666667,14.86
Nasdaq Global Select Market Composite,"The NASDAQ Global Select Market Composite is a market capitalization-weighted index made up of U.S.-based and international stocks that represent the NASDAQ Global Select Market. As of August 2020, the NASDAQ Global Select Market Composite consisted of more than 1,400 stocks that meet Nasdaq's strict financial and liquidity requirements and corporate governance standards.",investopedia,1,19.2,17.2,0,17.47,20.6,12.1,19.25,18.15
Nash Equilibrium,"Nash equilibrium is a concept within game theory where the optimal outcome of a game is where there is no incentive to deviate from the initial strategy. More specifically, the Nash equilibrium is a concept of game theory where the optimal outcome of a game is one where no player has an incentive to deviate from their chosen strategy after considering an opponent's choice.",investopedia,1,30.54,17,0,11.21,17.6,8.68,23.5,18.43
National Association of Certified Valuation Analysts (NACVA),"The National Association Of Certified Valuation Analysts (NACVA) is a group of business professionals that provide valuation and litigation services for various types of business transactions. National Association of Certified Valuation Analysts members receive training, education, and certification in asset valuation disciplines that they put to use in their respective professions. The organization also enforces standards of ethical conduct among its members.",investopedia,1,-0.31,18.4,18.9,19.78,19.5,11.28,18,18.6
National Association of Federal Credit Unions (NAFCU),"The National Association of Federal Credit Unions (NAFCU) is an industry trade group founded in 1967 to represent the interests of federal credit unions, and promote the success and efficiency of the industry. Its membership is made up of both large and small credit unions. NAFCU represents 72% of total federal credit union (FCU) assets and 51% of all FICU assets. NAFCU’s membership includes over 180 federally-insured state chartered credit unions (FISCUs). Its activities include representing, informing, educating and assisting its members regarding industry issues. Headquartered in Arlington, Va., one of its main purposes is to influence the laws and regulations affecting federal credit unions.",investopedia,1,33.24,13.8,16.6,14.91,16.2,11.9,15,16.78
National Association of Insurance Commissioners (NAIC),"The National Association of Insurance Commissioners (NAIC) is a nonprofit, nonpartisan organization governed by the chief insurance regulators of the 50 states, the District of Columbia, and the five U.S. territories: American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands. The NAIC sets standards and establishes best practices for the U.S. insurance industry and provides support to insurance regulators. It also provides information and resources to consumers. Insurance products sold in the U.S. are largely regulated by the states, rather than the federal government.",investopedia,1,16.36,18.3,19.3,16.26,21.1,11.73,22.66666667,18.99
National Association of Insurance and Financial Advisors (NAIFA),"The National Association of Insurance and Financial Advisors (NAIFA) is a trade organization for insurance professionals and financial advisors. It is one of the largest trade groups in the financial industry. NAIFA works on behalf of its members to promote a favorable regulative environment, provide professional education services, and ensure ethical professional conduct for insurance and financial advisors.",investopedia,1,18.05,15.5,18.6,17.69,17.2,11.4,17,17.38
National Association of Investors Corp. (NAIC),"The National Association of Investors Corp. (NAIC) is a nonprofit organization founded in 1951, and dedicated to providing investor education and promote investor success. The association is based in Madison Heights, Mich., and is composed of investing clubs along with individual investors from around the United States. The organization today goes mainly by the name BetterInvesting.",investopedia,1,27.11,14.1,14.6,15.84,15.6,11.61,13.33333333,14.62
National Association of Real Estate Investment Trusts (Nareit),"The National Association of Real Estate Investment Trusts (Nareit) is a trade association that deals with real estate investment trusts (REITs) and serves as the industry’s voice to policymakers, investors and the general public. Nareit represents a diverse industry that includes commercial equity REITs, mortgage REITs, REITs traded on major stock exchanges, public non-listed REITs and private REITs, which collectively own nearly $3 trillion worth of real estate assets. Its mission is to advocate for REIT-based real estate investment with policymakers and the global investment community and ensure that everyone has the opportunity to benefit from real estate investment.",investopedia,1,12.6,19.7,19.3,16.43,22.7,11.17,24.5,18.86
National Association of Realtors (NAR),"The National Association of Realtors (NAR) is a national organization of real estate brokers, known as realtors, created to promote the real estate profession and foster professional behavior in its members. The association has its own code of ethics to which it requires its members to adhere.",investopedia,1,22.24,16,0,13.12,15.4,10.85,17.25,16.21
National Association of Securities Dealers (NASD),"The National Association of Securities Dealers (NASD) was a self-regulatory organization of the securities industry and a predecessor of the Financial Industry Regulatory Authority (FINRA). It was responsible for the operation and regulation of the NASDAQ stock market and over-the-counter markets. It also administrated exams for investment professionals, such as the Series 7 exam. The NASD was charged with watching over the NASDAQ’s market operations.",investopedia,1,7.15,17.7,17.9,16.71,17.9,11.51,13.125,18.53
National Association of State Boards of Accountancy (NASBA),"The National Association of State Boards of Accountancy (NASBA) is a nonprofit group that serves the 55 state and U.S. territory boards of accountancy, which are responsible for overseeing the accountancy profession in the United States and administering the Uniform CPA Examination.",investopedia,1,11.93,22,0,17.02,27.4,12.11,33,26.32
National Average Wage Index (NAWI),The National Average Wage Index (NAWI) is a measure of U.S. wage trends calculated annually by the Social Security Administration (SSA). The NAWI is dependent on income subject to federal income taxes and contributions to deferred compensation plans.,investopedia,1,26.81,14.2,0,13.98,14.5,13.3,14.5,18.13
National Bank,"In the United States, a national bank is a commercial bank. The comptroller of the currency of the U.S. Treasury will charter a national bank. This institution will function as a member bank of the Federal Reserve and is an investing member of its district Federal Reserve Bank. National banks may facilitate the auction process of U.S. Treasury bonds. It is essential that they are members of the Federal Deposit Insurance Corporation (FDIC).",investopedia,1,59.09,8,12.2,10.37,8.6,9.43,7.583333333,10.91
National Best Bid and Offer (NBBO),"The National Best Bid and Offer (NBBO) is a quote that reports the highest bid price and lowest ask (offered) price in a security, sourced from among all available exchanges or trading venues. The NBBO, therefore, represents the tightest composite bid-ask spread in a security.",investopedia,1,57.1,10.9,0,11.78,14.2,10.72,13.75,12.56
National Bureau of Economic Research (NBER),"The National Bureau of Economic Research (NBER) is a private, non-profit, non-partisan research organization with an aim is to promote a greater understanding of how the economy works. It disseminates economic research among public policymakers, business professionals, and the academic community.",investopedia,1,16.83,16,0,17.64,18.4,12.36,16.75,18.93
National Commodities And Derivatives Exchange (NCDEX),"The National Commodity & Derivatives Exchange (NCDEX) is a commodities exchange dealing primarily in agricultural commodities in India. The National Commodity & Derivatives Exchange was established in 2003, and its headquarters are in Mumbai. Many of India's leading financial institutions have a stake in the NCDEX. As of September 2019, significant shareholders included Life Insurance Corporation of India (LIC), the National Stock Exchange of India Limited (NSE), and the National Bank for Agricultural and Rural Development (NABARD).",investopedia,1,18.55,15.3,17.4,17,17,10.88,15.875,16.59
National Credit Union Administration (NCUA),The National Credit Union Administration (NCUA) is an agency of the United States federal government. The federal government created the NCUA to monitor federal credit unions across the country.,investopedia,1,31.38,12.5,0,14.55,12.8,9.8,11.75,12.7
National Currency,"A national currency is a legal tender issued by a country's central bank or monetary authority. It is typically the predominant medium of exchange for purchasing goods and services. In the United States, the dollar is the primary form of currency, backed by the full faith and credit of the government and the Federal Reserve.",investopedia,1,44.44,11.6,14.1,10.85,11.1,10,12.83333333,13.87
National Futures Association (NFA),"The National Futures Association (NFA) is an independent self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodities Futures Trade Commission (CFTC) as a registered futures association, the NFA's mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members fulfill their regulatory obligations.",investopedia,1,2.79,19.3,0,19.03,22,12.52,20.5,19.63
National Housing Act,"The National Housing Act was a law passed by Congress and signed by the president in 1934 that established the Federal Housing Administration (FHA). The law was passed as part of President Roosevelt’s New Deal program, aimed at stimulating the economy out of the Great Depression, which is why it is also referred to as the FHA New Deal.",investopedia,1,49.99,13.6,0,10.17,15.6,9.92,19.25,17.22
National Income Accounting,"National income accounting is a bookkeeping system that a government uses to measure the level of the country's economic activity in a given time period. Accounting records of this nature include data regarding total revenues earned by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on sales and income taxes by corporations and individuals residing in the country.",investopedia,1,22.58,17.9,0,14.52,20,11.72,23.25,19.58
National Insurance Contributions (NIC),"National Insurance Contributions (NIC) are taxes paid by British employees and employers to fund government benefits programs, including state pensions. The contributions are made through payroll deductions.",investopedia,1,23.93,13.3,0,19.94,16.9,13.08,11.75,17.25
National Market System (NMS),"The National Market System (NMS) promotes free market transparency by regulating how all major exchanges disclose and execute trades. It is the system for equity trading and order fulfillment in the U.S. that consists of trading, clearing, depository, and quote distribution functions. The NMS governs the activities of all formal U.S. stock exchanges and the NASDAQ market.",investopedia,1,43.73,11.9,13,13.87,14.4,11.5,12.5,13.92
National Registration Database (NRD),The National Registration Database (NRD) is a Canadian database that was launched in 2003 to replace the original paper form system. It allows security dealers and investment advisors to file registration forms electronically.,investopedia,1,29.35,13.3,0,16.18,14.8,12.59,12.75,16.3
National Retail Federation (NRF),"The National Retail Federation (NRF) is a retail trade association, founded in 1911, that is made up of members from all phases of the retail industry, including department stores, specialty, discount, catalog, internet and independent retailers, restaurant chains and grocers, as well as businesses that supply goods and services to retailers. The NRF forms an umbrella over many state, national and international retail associations.",investopedia,1,22.08,18.1,0,15.73,21.9,12.13,24.5,21.55
National Securities Clearing Corporation (NSCC),"National Securities Clearing Corporation (NSCC) is a subsidiary of Depository Trust & Clearing Corporation (DTCC) that provides centralized clearing, risk management, information, and settlement services to the financial industry.",investopedia,1,-16.17,22.5,0,22.98,26.5,14.05,25.5,24.06
National Securities Markets Improvement Act (NSMIA),The National Securities Markets Improvement Act is a law passed in 1996 to simplify securities regulation in the U.S. by apportioning more regulatory power to the federal government.,investopedia,1,9.22,18.9,0,14.68,18.8,12.36,24,22.63
National Stock Exchange of India Limited (NSE),"The National Stock Exchange of India Limited (NSE) is India's largest financial market. Incorporated in 1992, the NSE has developed into a sophisticated, electronic market, which ranked fourth in the world by equity trading volume. Trading commenced in 1994 with the launch of the wholesale debt market and a cash market segment shortly thereafter.",investopedia,1,53.21,10.3,12.5,13.22,13.4,11.55,11.66666667,13.13
Nationalization,"Nationalization refers to the action of a government taking control of a company or industry, which generally occurs without compensation for the loss of the net worth of seized assets and potential income. The action may be the result of a nation's attempt to consolidate power, resentment of foreign ownership of industries representing significant importance to local economies or to prop up failing industries.",investopedia,1,22.08,18.1,0,14.69,20.4,11.64,23.5,20.3
Natural Gas ETF,A natural gas exchange-traded fund (ETF) is a type of investment product that allows investors to easily invest in natural gas futures contracts.,investopedia,1,39.67,13.4,0,13,15.3,13.7,16.5,14.42
Natural Gas Liquids,"Natural gas liquids (NGL) are components of natural gas that are separated from the gas state in the form of liquids. This separation occurs in a field facility or a gas processing plant through absorption, condensation, or other methods. There are several types of natural gas liquids and many different applications for NGL products.",investopedia,1,44.75,11.5,15,11.95,12.2,8.92,13.33333333,13.87
Natural Gas Storage Indicator (EIA Report),The Natural Gas Storage Indicator is the U.S. Energy Information Administration's (EIA) estimate of working natural gas volumes held in underground storage facilities at the national and regional levels. The EIA provides weekly estimates of working gas volumes held in underground storage facilities at the Lower 48 states and five regional levels. Changes in these gas inventories on a weekly basis primarily reflect net withdrawals or injections. The report is generally updated and available every Thursday at 10:30 am EST. Unexpected changes such as above-average withdrawals or injections can have an immediate impact on natural gas prices.,investopedia,1,29.65,13.1,14.8,14.56,13.3,10.95,12.25,14.32
Natural Hedge,"A natural hedge is a management strategy that seeks to mitigate risk by investing in assets whose performances are inherently negatively correlated. For instance, a natural hedge against owning financial stocks is to hold bonds, since interest rate changes tend to influence each in opposite fashion,",investopedia,1,31.21,14.6,0,14.68,16.2,12.67,18.5,20.5
Natural Law,Natural law is a theory in ethics and philosophy that says that human beings possess intrinsic values that govern our reasoning and behavior. Natural law maintains that these rules of right and wrong are inherent in people and are not created by society or court judges.,investopedia,1,48.13,12.3,0,11.15,13.1,10.96,16.5,17.03
Natural Monopoly,"A natural monopoly is a type of monopoly that exists typically due to the high start-up costs or powerful economies of scale of conducting a business in a specific industry which can result in significant barriers to entry for potential competitors. A company with a natural monopoly might be the only provider of a product or service in an industry or geographic location. Natural monopolies can arise in industries that require unique raw materials, technology, or similar factors to operate.",investopedia,1,27.45,16.1,19.6,12.65,16.3,10.88,21.66666667,19.68
Natural Selection,"In modern biology, natural selection is a process whereby species which have traits that enable them to adapt in an environment survive and reproduce, and then pass on their genes to the next generation. Natural selection means that species that can adapt to a specific environment will grow in numbers and eventually greatly outnumber those species that cannot adapt.",investopedia,1,41.53,14.8,0,13.41,18,10.45,20.75,17.9
Natural Unemployment,"Natural unemployment, or the natural rate of unemployment, is the minimum unemployment rate resulting from real or voluntary economic forces. Natural unemployment reflects the number of people that are unemployed due to the structure of the labor force, such as those replaced by technology or those who lack certain skills to gain employment.",investopedia,1,27.66,16,0,14.34,17.7,10.02,20.25,17.39
NAV Return,The NAV return is the change in the net asset value of a mutual fund or ETF over a given time period. The NAV return of a mutual fund is one measure of return and can be different than the total return or the market return that investors realize because these products can trade at a premium or discount in the market to the fund's computed NAV.,investopedia,1,62.85,12.8,0,7.96,15.6,8.6,20.25,16.39
Near Field Communication (NFC),"Near-field communication (NFC) is a short-range wireless technology that makes your smartphone, tablet, wearables, payment cards, and other devices even smarter. Near-field communication is the ultimate in connectivity. With NFC, you can transfer information between devices quickly and easily with a single touch—whether paying bills, exchanging business cards, downloading coupons, or sharing a research paper.",investopedia,1,35.98,12.8,13,18.8,18.4,11.43,12.16666667,13.14
Near Money,"Near money, sometimes referred to as quasi-money or cash equivalents, is a financial economics term describing non-cash assets that are highly liquid and easily converted to cash.",investopedia,1,35.61,15,0,14.8,18.8,11.99,19.5,19.69
Near Term,"The near term is a period of time not far into the future. The term is used to describe events that may occur soon. In finance, the term is often used to explain the timeframe during which an event or change is expected to occur. Traders will often use the term ""near term"" when expecting a price move to happen in the near future, or when a trade is taken for only a small amount of time.",investopedia,1,77.27,7.3,8.1,5.75,7.4,6.64,10.375,9.28
Near the Money,"Near the money refers to an options contract whose strike price is close to the current market price of the corresponding underlying security. ""Close to the money"" is an alternative phrase, designating the same situation. While a call option can be considered “in the money” if its strike price is lower than the market price, the option is considered near the money if its strike price is lower than the market price but extremely close to it. However, if the strike price is higher than the market price, it is considered out of the money. Near the money is one of the three states of option moneyness, along with in the money and out of the money.",investopedia,1,58.66,12.4,13,9.18,14.7,7.52,15.25,14.8
Neckline,The neckline is a level of support or resistance found on a head and shoulders pattern that is used by traders to determine strategic areas to place orders. A neckline connects the swing lows (which occur following the first two peaks) of the head and shoulders topping pattern. A move below the neckline signals a breakout of the pattern and indicates that a reversal to the downside of the prior uptrend is underway.,investopedia,1,55.27,11.6,11.2,10.1,13.1,9.82,14.16666667,12.46
Needs Approach,"The needs approach is a way of determining the appropriate amount of life insurance coverage an individual should purchase. This approach is based on the creation of a budget of expenses that will be incurred, including funeral expenses, estate settlement costs, and replacement of a portion of future income to sustain the spouse or dependants.",investopedia,1,35.1,15.2,0,13.18,17.2,11.6,19.75,18.27
Negative Amortization,"Negative amortization is a financial term referring to an increase in the principal balance of a loan caused by a failure to cover the interest due on that loan. For example, if the interest payment on a loan is $500, and the borrower only pays $400, then the $100 difference would be added to the loan's principal balance.",investopedia,1,50.5,13.4,0,9.01,14.7,9.98,20,17.12
Negative Arbitrage,"Negative arbitrage is the opportunity lost when bond issuers assume proceeds from debt offerings and then hold that money in escrow for a period of time (usually in cash or short-term treasury investments) until the money is able to be put to use to fund a project, or to repay investors. Negative arbitrage may occur with a new bond issue or following a debt refinancing.",investopedia,1,38.49,16,0,10.28,17.1,10.11,21.75,17.92
Negative Assurance,Negative assurance is a determination by an auditor that a particular set of facts is believed to be accurate since no contrary evidence has been found to dispute them. Negative assurance is normally used by auditors in situations where it is not possible to positively confirm the accuracy of financial reports. The goal of negative assurance is to confirm that no evidence of fraud has been found or that any legal accounting practices were found to be violated.,investopedia,1,36.63,14.6,18.2,11.55,14.9,9.78,20,18.09
Negative Bond Yield,A negative bond yield is when an investor receives less money at the bond's maturity than the original purchase price for the bond. A negative bond yield is an unusual situation in which issuers of debt are paid to borrow.,investopedia,1,59.64,9.9,0,8.82,10.1,9.76,13,13
Negative Carry,"Negative carry is a condition in which the cost of holding an investment or security exceeds the income earned while holding it. A negative carry trade or investment is often undesirable to professional portfolio managers because it means the investment is losing money as long as the principal value of the investment remains the same (or falls). However, many investors and professionals regularly enter into such conditions when they anticipate a significant payoff from holding the investment over time.",investopedia,1,27.86,15.9,17.5,14.05,17.3,9.34,19.5,17.1
Negative Confirmation,Negative confirmation is a letter or document requesting that the recipient should only respond to the sender if there were an issue with the contents of the message or the recipient wanted to opt-out of the event that the letter had addressed.,investopedia,1,28.85,19.7,0,11.39,22.3,10.61,27,21.56
Negative Convexity,"Negative convexity exists when the shape of a bond's yield curve is concave. A bond's convexity is the rate of change of its duration, and it is measured as the second derivative of the bond's price with respect to its yield. Most mortgage bonds are negatively convex, and callable bonds usually exhibit negative convexity at lower yields.",investopedia,1,52.19,10.7,13.6,10.68,11.4,9.84,12.83333333,12.51
Negative Correlation,"Negative correlation is a relationship between two variables in which one variable increases as the other decreases, and vice versa.",investopedia,1,25.8,14.6,0,14.91,15.2,11.73,15,18
Negative Covenant,"A negative covenant is a bond covenant preventing certain activities unless agreed to by the bondholders. Negative covenants are written directly into the trust indenture creating the bond issue, are legally binding on the issuer, and exist to protect the best interests of the bondholders.",investopedia,1,40.18,13.2,0,14.22,15.6,10.72,16.25,16.11
Negative Directional Indicator (-DI),"The Negative Directional Indicator (-DI) measures the presence of a downtrend and is part of the Average Directional Index (ADX). If -DI is sloping upward, it's a sign that the price downtrend is getting stronger. This indicator is nearly always plotted along with the Positive Directional Indicator (+DI).",investopedia,1,46.78,10.7,13,12.18,12.1,9.04,11,10.57
Negative Equity,Negative equity occurs when the value of real estate property falls below the outstanding balance on the mortgage used to purchase that property. Negative equity is calculated simply by taking the current market value of the property and subtracting the amount remaining on the mortgage.,investopedia,1,31.72,14.4,0,14.1,15.3,10.02,16.75,15.22
Negative Feedback,"Negative feedback in financial markets comes from a pattern of contrarian investment behavior. An investor using a negative feedback strategy would buy stocks when prices decline and sell stocks when prices rise, which is the opposite of what most people do. Negative feedback helps make markets less volatile. Its opposite is positive feedback, in which a herd mentality pushes elevated prices higher and depressed prices lower.",investopedia,1,46.27,10.9,13.4,13.86,12.8,10.44,11.5,12.66
Negative Gap,"A negative gap is a situation where a financial institution's interest-sensitive liabilities exceed its interest-sensitive assets. A negative gap is not necessarily a bad thing, because if interest rates decline, the entity's liabilities are repriced at lower interest rates. In this scenario, income would increase. However, if interest rates increase, liabilities would be repriced at higher interest rates, and income would decrease.",investopedia,1,21.9,14.1,14.9,16.18,14.8,9.5,12,12.01
Negative Gearing,"Negative gearing is a practice common in property investing. It is a form of financial leverage that describes the purchase of an income-producing asset, such as a rental property, but when the asset will not produce enough income to cover the cost of the asset. For example, when the rental income is insufficient to cover the loan payments, maintenance, interest, or depreciation for the asset in the short term. Ideally, the asset will eventually produce enough money to cover those costs.",investopedia,1,50.87,11.2,13.4,11.43,12.7,9.13,13.375,14.05
Negative Goodwill (NGW),"In business, negative goodwill (NGW) is a term that refers to the bargain purchase amount of money paid, when a company acquires another company or its assets for significantly less their fair market values. Negative goodwill generally indicates that the selling party is distressed or has declared bankruptcy, and faces no other option but to unload its assets for a fraction of their worth.",investopedia,1,39,15.8,0,12.49,18.8,10.16,20.5,15.93
Negative Growth,"Negative growth is a contraction in business sales or earnings. It is also used to refer to a contraction in a country's economy, which is reflected in a decrease in its gross domestic product (GDP) during any quarter of a given year. Negative growth is typically expressed as a negative percentage rate.",investopedia,1,53.92,10,13.6,10.21,10.4,9.66,12,12.3
Negative Income Tax (NIT),"Negative income tax (NIT) is an alternative to welfare suggested by, among other proponents, economist Milton Friedman in his 1962 book Capitalism and Freedom. NIT proponents assert that every American without income above the threshold for tax liability should have a basic income guarantee and that NIT is a means to subsidize the needy at less cost than the welfare system.",investopedia,1,9.56,27.1,0,13.77,34,11.58,41.5,30.3
Negative Interest Rate,"Negative interest rates occur when borrowers are credited interest rather than paying interest to lenders. While this is a very unusual scenario, it is most likely to occur during a deep economic recession when monetary efforts and market forces have already pushed interest rates to their nominal zero bound.",investopedia,1,38.15,14,0,13.58,15.9,10.97,18.25,17.15
Negative Interest Rate Environment,A negative interest rate environment exists when the nominal overnight interest rate falls below zero percent for a particular economic zone. This means that banks and other financial institutions would have to pay to keep their excess reserves stored at the central bank rather than receive positive interest income.,investopedia,1,38.15,14,0,14.63,16.7,10.97,17.75,17.15
Negative Interest Rate Policy (NIRP),"A negative interest rate policy (NIRP) is an unconventional monetary policy tool employed by a central bank whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent. A NIRP is a relatively new development (since the 1990s) in monetary policy used to mitigate a financial crisis, and has only been officially enacted under extraordinary economic circumstances.",investopedia,1,4.65,20.7,0,14.46,20.7,12.05,26.75,22.85
Negative Pledge Clause,A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures.,investopedia,1,59.64,9.9,0,11.72,12.4,11.34,13.5,14
Negative Return,"A negative return occurs when a company experiences a financial loss or investors experience a loss in the value of their investments during a specific period of time. In other words, the business or individual loses money on either their business or their investment.",investopedia,1,32.22,14.2,0,12.01,13.6,9.39,16,16.98
Negative Volume Index (NVI),The Negative Volume Index is a technical indication line that integrates volume and price to graphically show how price movements are affected from down volume days.,investopedia,1,36.63,14.6,0,14.05,16.9,11,19,19.63
Negotiable,"Negotiable is used to describe the price of a good or security that is not firmly established. It is also used to describe a good or security, such as cash, whose ownership is easily transferable from one party to another. Other words used to describe negotiable are marketable, transferable or unregistered.",investopedia,1,54.22,9.9,14.1,11.08,10.9,7.58,12.16666667,12.29
Negotiable Bill of Lading,"Lading is the process of loading cargo onto a ship or vessel, and a negotiable bill of lading is one kind of bill of lading. The bill of lading is a legal document between the shipper and carrier, detailing the type, quantity, and destination of goods being carried. The negotiable bill of lading is distinguished by the fact that it is a contract of carriage that can be transferred to a third party.",investopedia,1,55.27,11.6,12.5,8.59,12,8.74,14.83333333,13.56
Negotiable Certificate Of Deposit (NCD),"A negotiable certificate of deposit (NCD), also known as a jumbo CD, is a certificate of deposit (CD) with a minimum face value of $100,000—though NCDs are typically $1 million or more. They are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.",investopedia,1,51.01,13.2,0,9.06,15,10.04,18.25,16.31
Negotiable Instrument,"A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand. The payee, who is the person receiving the payment, must be named or otherwise indicated on the instrument.",investopedia,1,56.89,11,14.6,8.94,11.6,9.17,15.33333333,13.79
Negotiable Order of Withdrawal (NOW),"A Negotiable Order of Withdrawal Account is an interest-earning demand deposit account. A customer with such an account is permitted to write drafts against money held on deposit. A Negotiable Order of Withdrawal Account is also known as a ""NOW Account.""",investopedia,1,57.57,8.6,11.2,11.71,10.1,7.01,7.833333333,9.38
Negotiated Dealing System (NDS),"The Negotiated Dealing System, or NDS, is an electronic trading platform operated by the Reserve Bank of India to facilitate the issuing and exchange of government securities and other types of money market instruments. The goal was to reduce inefficiencies stemming from telephone orders and manual paperwork, while increasing transparency for all market participants.",investopedia,1,18.69,17.4,0,16.42,19.6,11.7,20.5,20.43
Negotiation,"A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. In a negotiation, each party tries to persuade the other to agree with his or her point of view. By negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise.",investopedia,1,61.67,9.1,11.9,8.93,9.6,8.62,11.33333333,11.64
Neoclassical Economics,"Neoclassical economics is a broad theory that focuses on supply and demand as the driving forces behind the production, pricing, and consumption of goods and services. It emerged in around 1900 to compete with the earlier theories of classical economics.",investopedia,1,42.72,12.3,0,13.34,13.9,11.73,15,17
Neoclassical Growth Theory,"Neoclassical growth theory is an economic theory that outlines how a steady economic growth rate results from a combination of three driving forces—labor, capital, and technology. The National Bureau of Economic Research names Robert Solow and Trevor Swan as having the credit of developing and introducing the model of long-run economic growth in 1956. The model first considered exogenous population increases to set the growth rate but, in 1957, Solow incorporated technology change into the model.",investopedia,1,28.88,15.5,17.5,15.09,17.8,11.12,19,16.96
Neoliberalism,"Neoliberalism is a policy model that encompasses both politics and economics and seeks to transfer the control of economic factors from the public sector to the private sector. Many neoliberalism policies enhance the workings of free market capitalism and attempt to place limits on government spending, government regulation, and public ownership.",investopedia,1,20.21,16.8,0,16.42,18.8,11.71,18.75,17.26
Nepalese Rupee (NPR),"The Nepalese rupee (NPR) is the national currency of Nepal. It is administered by the central bank of Nepal, the ""Nepal Rastra Bank.""",investopedia,1,76.72,5.4,0,7.75,7.1,10.39,6.25,9.82
Nest Egg,"A nest egg is a substantial sum of money or other assets that have been saved or invested for a specific purpose. Such assets are generally earmarked for longer-term objectives, the most common being retirement, buying a home, and education.",investopedia,1,42.72,12.3,0,11.14,12.4,10.16,13.5,15
Net Asset Value (NAV),"The net asset value (NAV) represents the net value of an entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities. Most commonly used in the context of a mutual fund or an exchange-traded fund (ETF), the NAV represents the per share/unit price of the fund on a specific date or time. NAV is the price at which the shares/units of the funds registered with the U.S. Securities and Exchange Commission (SEC) are traded (invested or redeemed).",investopedia,1,58.11,10.5,13.8,9.23,11.8,10.21,14.25,14.18
Net Asset Value Per Share (NAVPS),"Net asset value per share (NAVPS) is an expression for net asset value that represents the value per share of a mutual fund, an exchange-traded fund (ETF), or a closed-end fund. It is calculated by dividing the total net asset value of the fund or company by the number of shares outstanding and is also known as book value per share.",investopedia,1,48.98,14,0,8.43,15,9.03,19.25,16.13
Net Cash,Net cash is a figure that is reported on a company's financial statements. It is calculated by subtracting a company's total liabilities from its total cash. The net cash figure is commonly used when evaluating a company's cash flows. Net cash may also refer to the amount of cash remaining after a transaction has been completed and all associated charges and deductions have been subtracted.,investopedia,1,46.47,10.8,14.6,11.13,10.5,9.06,12.125,15.14
Net Change,"Net change is the difference between a prior trading period’s closing price and the current trading period’s closing price for a given security. For stock prices, net change is most commonly referring to a daily time frame, so the net change can be positive or negative for the given day in question. Though the net change for stocks and most securities is quoted in U.S. Dollars when reported by financial media, the net change can be calculated and quoted in any denomination depending on what is being traded.",investopedia,1,49.15,11.9,13.8,10.21,12.3,9.03,14.5,14.25
Net Charge-Off (NCO),A net charge-off (NCO) is the dollar amount representing the difference between gross charge-offs and any subsequent recoveries of delinquent debt. Net charge-offs refer to the debt owed to a company that is unlikely to be recovered by that company.,investopedia,1,42.72,12.3,0,12.18,13.3,9.37,15.5,13
Net Current Asset Value Per Share (NCAVPS),"Net current asset value per share (NCAVPS) is a measure created by Benjamin Graham as one means of gauging the attractiveness of a stock. A key metric for value investors, NCAVPS is calculated by taking a company's current assets and subtracting total liabilities.",investopedia,1,41.19,12.9,0,12.24,14,10.95,13.75,14.18
Net Debt,Net debt is a liquidity metric used to determine how well a company can pay all of its debts if they were due immediately. Net debt shows much debt a company has on its balance sheet compared to its liquid assets. Net debt shows how much cash would remain if all debts were paid off and if a company has enough liquidity to meet its debt obligations.,investopedia,1,65.76,9.6,12.5,7.32,9.7,7.57,13.83333333,11.31
Net Debt Per Capita,The net debt per capita is a measurement of the value of a government's debt expressed in terms of the amount attributable to each citizen under the government's jurisdiction. It is commonly computed using the following formula:,investopedia,1,44.24,11.7,0,12.18,12.3,10.1,14.25,14.97
Net Debt-to-EBITDA Ratio,"The net debt-to-EBITDA (earnings before interest depreciation and amortization) ratio is a measurement of leverage, calculated as a company's interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt-to-EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. However, if a company has more cash than debt, the ratio can be negative. It is similar to the debt/EBITDA ratio, but net debt subtracts cash and cash equivalents while the standard ratio does not.",investopedia,1,46.81,12.8,15.2,11.2,14.4,8.59,16.625,14.26
Net Export,Net exports are a measure of a nation's total trade. The formula for net exports is a simple one: The value of a nation's total export goods and services minus the value of all the goods and services it imports equal its net exports.,investopedia,1,66.07,9.5,0,7.08,9.9,7.6,11.5,9.71
Net Exposure,"Net exposure is the difference between a hedge fund’s long positions and its short positions. Expressed as a percentage, this number is a measure of the extent to which a fund’s trading book is exposed to market fluctuations.",investopedia,1,52.19,10.7,0,10.97,11.4,8.73,12.5,11.81
Net Foreign Assets (NFA),"Net foreign assets (NFA) determine whether a country is a creditor or debtor nation by measuring the difference in its external assets and liabilities. NFA refer to the value of overseas assets owned by a nation, minus the value of its domestic assets that are owned by foreigners, adjusted for changes in valuation and exchange rates.",investopedia,1,34.6,15.4,0,11.38,16.1,10.95,19,17.63
Net Foreign Factor Income (NFFI),Net foreign factor income (NFFI) is the difference between a nation’s gross national product (GNP) and its gross domestic product (GDP).,investopedia,1,41.7,12.7,0,12.82,15.1,12.2,13.5,12.21
Net Importer,"A net importer is a country that buys more from other countries in terms of global trade than it sells to them over a given period of time. Countries produce goods based on the resources available in their region. Whenever a country cannot produce a particular good but still wants it, that country can buy it as an import from other countries who produce and sell that good.",investopedia,1,65.35,9.8,8.8,8.94,11.2,8.25,12.33333333,10.26
Net Income (NI),"Net income (NI), also called net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a useful number for investors to assess how much revenue exceeds the expenses of an organization. This number appears on a company's income statement and is also an indicator of a company's profitability.",investopedia,1,24.48,15.1,15.9,13.52,15.4,10.37,15.66666667,14.77
Net Income After Taxes (NIAT),Net income after taxes (NIAT) is a financial term used to describe a company's profit after all taxes have been paid. Net income after taxes is an accounting term and is most often found in a company's quarterly and annual financial reports. Net income after taxes represents the profit or earnings after all expense have been deducted from revenue. Net income after taxes calculation can be shown as both a total dollar amount and a per-share calculation.,investopedia,1,43.43,12,12.6,10.68,11.5,8.28,12.375,11.88
Net Interest Income,"Net interest income is a financial performance measure that reflects the difference between the revenue generated from a bank's interest-bearing assets and the expenses associated with paying on its interest-bearing liabilities. A typical bank's assets consist of all forms of personal and commercial loans, mortgages, and securities. The liabilities are interest-bearing customer deposits. The excess revenue that is generated from the interest earned on assets over the interest paid out on deposits is the net interest income.",investopedia,1,26.51,14.4,15.9,16.01,15.9,9.52,14.625,13.43
Net Interest Margin,"Net interest margin (NIM) is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit (CDs). Expressed as a percentage, the NIM is a profitability indicator that approximates the likelihood of a bank or investment firm thriving over the long haul. This metric helps prospective investors determine whether or not to invest in a given financial services firm by providing visibility into the profitability of their interest income versus their interest expenses.",investopedia,1,31.25,16.7,18.9,15.27,20.7,11.57,23.33333333,19.75
Net Interest Rate Differential (NIRD),"The net interest rate differential (NIRD), in international currency (forex) markets, is the total difference in the interest rates of two distinct national economies.",investopedia,1,30.2,15,0,16.13,18.8,12.72,19,17.93
Net Internal Rate of Return,Net internal rate of return (net IRR) is a performance measurement equal to the internal rate of return after fees and carried interest are factored in. It is used in capital budgeting and portfolio management to calculate an investment's yield or overall financial quality by calculating an expected rate of return.,investopedia,1,37.13,14.4,0,12.71,15.9,10.78,20.25,20.4
Net Interest Rate Spread,The net interest rate spread is the difference between the average yield that a financial institution receives from loans—along with other interest-accruing activities—and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial institution’s profitability (or lack thereof).,investopedia,1,21.23,16.4,0,16.54,18.5,10.33,19.75,17.96
Net International Investment Position (NIIP),"A net international investment position (NIIP) measures the gap between a nation’s stock of foreign assets and a foreigner's stock of that nation's assets. Essentially, it can be viewed as a nation’s balance sheet with the rest of the world at a specific point in time.",investopedia,1,56.59,11.1,0,10.39,13,9.93,14.5,14.42
Net Investment,"Net investment is the total amount of money that a company spends on capital assets, minus the cost of the depreciation of those assets. This figure provides a sense of the real expenditure on durable goods such as plants, equipment, and software that are being used in the company's operations.",investopedia,1,46.1,13,0,10.86,14.2,9.3,16,14
Net Investment Income (NII),"Net investment income (NII) is income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans, and other investments (less related expenses). The individual tax rate on net investment income depends on whether it is interest income, dividend income, or capital gains.",investopedia,1,31.72,14.4,0,14.34,16.7,11.42,16.75,16.11
Net Lease,"The term net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. Net leases are commonly used in commercial real estate. In the purest form of a net lease, the tenant is expected to pay for all the costs related to a piece of property as if the tenant were the actual owner. A net lease is the opposite of a gross lease, where the tenant pays a flat rental fee while the landlord is responsible for the other costs.",investopedia,1,63.02,10.7,13.4,7.55,11.4,9.46,15.75,14.8
Net Liquid Assets,"Net liquid assets are a measure of an immediate or near-term liquidity position of a firm, calculated as liquid assets less current liabilities. Liquid assets are cash, marketable securities, and accounts receivables that can be readily converted to cash at their approximate current value.",investopedia,1,23.77,15.4,0,14.5,16,10.47,16,17.89
Net Loss,"A net loss is when expenses exceed the income or total revenue produced for a given period of time. It is sometimes called a net operating loss (NOL). Businesses that have a net loss don't necessarily go bankrupt because they may opt to use their retained earnings or loans to stay afloat. This strategy, however, is only short-term, as a company without profits will not survive in the long-term.",investopedia,1,62.38,8.9,11.2,9.22,9.8,9.07,10.625,10.4
Net National Product (NNP),"Net national product (NNP) is the monetary value of finished goods and services produced by a country's citizens, overseas and domestically, in a given period. It is the equivalent of gross national product (GNP), the total value of a nation's annual output, minus the amount of GNP required to purchase new goods to maintain existing stock, otherwise known as depreciation.",investopedia,1,32.57,16.2,0,13.07,18.8,11.7,20.5,18
Net-Net,"Net-net is a value investing technique developed by the economist Benjamin Graham, in which a company's stock is valued based solely on its net current assets per share (NCAVPS). Net-net investing thus focuses on current assets, taking cash and cash equivalents at full value, then reducing accounts receivable for doubtful accounts, and reducing inventories to liquidation values. Net-net value is calculated by deducting total liabilities from the adjusted current assets.",investopedia,1,22.45,15.9,16.3,15.5,17.5,11.33,17,17.32
Net Neutrality,"Network (Net) neutrality is the concept that all data on the internet should be treated equally by corporations, such as internet service providers (ISPs) and governments, regardless of content, user, platform, application, or device. In other words, net neutrality stipulates that service providers should not slow down nor block content from users.",investopedia,1,36.63,14.6,0,14.92,18.7,10.7,17.5,15.78
Net of Tax,The term net of tax refers to the amount left after adjusting for the effects of taxes. Net of tax can be a consideration in any situation where taxation is involved. Individuals and businesses often analyze before- and after-tax values to make investment and purchasing decisions. Net of tax is also an important part of expense analysis when reviewing annual tax filings and the net income of businesses.,investopedia,1,45.76,11.1,14.6,10.9,10.6,9.12,12.5,14.45
Net Operating Income,"Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.",investopedia,1,13.95,15,0,17.1,15.4,12.28,13,19.33
Net Operating Loss (NOL),"For income tax purposes, a net operating loss (NOL) is the result when a company's allowable deductions exceed its taxable income within a tax period. The NOL can generally be used to offset the company's tax payments in other tax periods through an Internal Revenue Service (IRS) tax provision called a loss carryforward.",investopedia,1,36.12,14.8,0,11.55,15.8,11.21,19.25,18.9
Net Operating Profit After Tax (NOPAT),"Net operating profit after tax (NOPAT) is a financial measure that shows how well a company performed through its core operations, net of taxes. NOPAT is frequently used in economic value added (EVA) calculations and is a more accurate look at operating efficiency for leveraged companies. NOPAT does not include the tax savings many companies get because of existing debt.",investopedia,1,42.72,12.3,15,12.3,13.2,10.16,14.33333333,14.67
Net Operating Profit Less Adjusted Taxes (NOPLAT),"Net operating profit less adjusted taxes (NOPLAT) is a financial metric that calculates a firm's operating profits after adjusting for taxes. By using operating income, or income before taking interest payments into account, NOPLAT serves as a better indicator of operating efficiency than net income.",investopedia,1,14.8,16.8,0,15.26,16.7,10.72,16.75,16.11
Net Premium,"Net premium, an insurance industry accounting term, is calculated as the expected present value (PV) of an insurance policy’s benefits, minus the expected PV of future premiums. The net premium calculation does not take into account future expenses associated with maintaining the insurance policy.",investopedia,1,15.31,16.6,0,15.43,16.9,10.83,20,21.53
Net Premiums Written,"Net premiums written is the sum of premiums written by an insurance company over the course of a period of time, minus premiums ceded to reinsurance companies, plus any reinsurance assumed. Net premiums written represents how much of the premiums the company gets to keep for assuming risk.",investopedia,1,38.66,13.8,0,11.9,14.4,9.1,19,15.43
Net Present Value (NPV),Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.,investopedia,1,48.64,12.1,0,11.49,13.4,8.61,15.75,14.33
Net Present Value of Growth Opportunities (NPVGO),The net present value of growth opportunities (NPVGO) is a calculation of the net present value per share of all future cash flows involved with growth opportunities such as new projects or potential acquisitions. The net present value of growth opportunities is used to determine the intrinsic value per share of these growth opportunities in order to determine how much of the firm's current per-share value is determined by them.,investopedia,1,35.95,16.9,0,12.89,20.5,8.98,23,18
Net Present Value Rule,The net present value rule is the idea that company managers and investors should only invest in projects or engage in transactions that have a positive net present value (NPV). They should avoid investing in projects that have a negative net present value. It is a logical outgrowth of net present value theory.,investopedia,1,53.04,12.4,0,11.38,15.3,9.12,11.16666667,15.13
Net Proceeds,"Net proceeds are the amount the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds. Depending on the asset sold, the costs may account for a small percentage of the gross proceeds or a substantial percentage of the gross proceeds. Capital gains taxes are paid on the net proceeds of a sale rather than the gross proceeds.",investopedia,1,65.76,9.6,12.5,10.39,12.2,7.81,13.83333333,11.91
Net Profit Margin,"The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.",investopedia,1,52.9,10.4,12.2,10.21,10.4,8.44,11.625,11.16
Net Realizable Value (NRV),"Net realizable value (NRV) is the value of an asset that can be realized upon its sale, minus a reasonable estimate of the costs associated with the eventual sale or disposal of the asset.",investopedia,1,28.51,17.7,0,9.06,17,10.43,24,21.84
Net Receivables,"Net receivables are the total money owed to a company by its customers minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage, and a higher percentage indicates a business has a greater ability to collect from its customers. For example, if a company estimates that 2% of its sales are never going to be paid, net receivables equal 98% (100% - 2%) of the accounts receivable (AR).",investopedia,1,54.56,11.9,14.6,9.29,13.3,9.3,16.66666667,13.73
Net Sales,"Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net sales calculations are not always transparent externally. They can often be factored into the reporting of top line revenues reported on the income statement.",investopedia,1,57.57,8.6,11.2,11.82,10.2,10.09,7.833333333,11.33
Net Settlement,Net settlement is a bank's routine resolution of the day's transactions at the end of the business day.,investopedia,1,61.67,9.1,0,9.16,10.1,8.92,12,11.64
Net Tangible Assets,"Net tangible assets are calculated as the total assets of a company, minus any intangible assets such as goodwill, patents, and trademarks, less all liabilities and the par value of preferred stock. In other words, its focus is on physical assets such as property, plant, and equipment, as well as inventories and cash instruments.",investopedia,1,8.21,25.5,0,12.49,29.9,11.87,18,27.53
Net Unrealized Appreciation (NUA),"Some companies offer the benefit of employees owning stock in the employer company. The idea is that this creates an ownership mentality in the employees, even if they own a very small percentage of total shares. The net unrealized appreciation (NUA) is the difference in value between the average cost basis of shares of employer stock and the current market value of the shares. The NUA is important if you are distributing highly appreciated employer stock from your tax-deferred employer-sponsored retirement plan, such as a 401(k).",investopedia,1,33.88,15.7,17.9,13.01,17.7,9.65,21,17.53
Net Volume,"Net volume is a technical indicator calculated by subtracting a security's uptick volume by its downtick volume over a specified period of time. Unlike standard volume, the indicator differentiates whether the market sentiment is leaning bullish or bearish. Net volume is typically plotted below the price chart with bars for each period indicating the net volume reading for that period.",investopedia,1,24.11,17.4,0,15.04,19.7,10.91,14.66666667,19.33
Net Worth,"Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe. It is an important metric to gauge a company's health, providing a useful snapshot of its current financial position.",investopedia,1,44.24,11.7,0,10.15,10.7,10.1,12.75,13.89
Netback,Netback is a summary of all costs associated with bringing one unit of oil to the marketplace and the revenues from the sale of all the products generated from that same unit. It's expressed as gross profit per barrel.,investopedia,1,60.14,9.7,0,9.05,10.1,10.27,11.75,11.9
Network Effect,"The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service. The Internet is an example of the network effect. Initially, there were few users on the Internet since it was of little value to anyone outside of the military and some research scientists.",investopedia,1,53.21,10.3,12.5,10.32,10.6,8.62,11.66666667,12.39
Network Marketing,"Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.",investopedia,1,33.24,13.8,0,15.43,16.2,9.94,14,13.16
Networking,"Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground.",investopedia,1,37.81,12.1,0,13.34,12.3,9.72,11.75,13.87
Neural Network,"A neural network is a series of algorithms that endeavors to recognize underlying relationships in a set of data through a process that mimics the way the human brain operates. In this sense, neural networks refer to systems of neurons, either organic or artificial in nature. Neural networks can adapt to changing input; so the network generates the best possible result without needing to redesign the output criteria. The concept of neural networks, which has its roots in artificial intelligence, is swiftly gaining popularity in the development of trading systems.",investopedia,1,31.72,14.4,14.2,13.35,14.9,11.24,15,14.78
Neutral,"Neutral describes a position taken in a market that is neither bullish nor bearish. In other words, it is insensitive to the direction of the market's price. If an investor has a neutral opinion—believing that a security or index will neither increase nor decrease in value in the near future—they can undertake an option strategy that may profit despite the lack of movement in the underlying security.",investopedia,1,40.38,13.2,13,11.78,13.4,10.4,14.16666667,13.1
Neutrality Of Money,"The neutrality of money, also called neutral money, is an economic theory stating that changes in the money supply only affect nominal variables and not real variables. In other words, the amount of money printed by the Federal Reserve (Fed) and central banks can impact prices and wages but not the output or structure of the economy.",investopedia,1,42.55,14.4,0,10.68,15.9,11.42,17.25,15.61
New Deal,"The New Deal was a comprehensive and broad set of government-directed projects introduced by President Franklin Delano Roosevelt in an attempt to help the United States economy emerge from the Great Depression. It launched in the early 1930s and was designed to bolster the United States economy, reduce unemployment, provide a social safety net, and instill confidence in the government’s ability to protect its citizens.",investopedia,1,30.03,17.1,0,14.75,20.8,11.32,22.25,19.77
New Drug Application (NDA),"“New indications” is a term used by pharmaceutical companies to refer to new evidence signifying that there may be new applications for an existing drug or procedure. This type of news is closely followed by investors, who can access such findings through the press releases issued on companies’ investor relations pages.",investopedia,1,37.13,14.4,0,13.47,16.3,12.02,18.25,18.83
New Economy,"New economy is a buzzword to describe new, high-growth industries that are on the cutting edge of technology and are believed to be the driving force of economic growth and productivity. A new economy was first declared in the late 1990s as hi-tech tools, particularly the Internet and increasingly powerful computers, made their way into the consumer and business marketplace. The new economy was seen as a shift from a manufacturing and commodity-based economy to one that used technology to create new products and services at a rate that the traditional manufacturing economy could not match.",investopedia,1,30.54,17,17.9,13.07,19.2,9.99,22.66666667,18.22
New Fund Offer (NFO),"A new fund offer (NFO) is the first subscription offering for any new fund offered by an investment company. A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.",investopedia,1,62.88,8.7,14.2,10.32,10.1,9.42,12.125,12.69
New Growth Theory,"The new growth theory is an economic concept, positing that humans' desires and unlimited wants foster ever-increasing productivity and economic growth. It argues that real gross domestic product (GDP) per person will perpetually increase because of people's pursuit of profits.",investopedia,1,25.8,14.6,0,16.65,17.1,13.71,14,15
New Home Sales,"New Home Sales, also known as ""new residential sales,"" is an economic indicator published monthly by the U.S Census Bureau that measures sales of newly built homes.",investopedia,1,44.07,13.8,0,11.78,16.5,12.58,16.5,15.24
New Indications Definition,"“New indications” is a term used by pharmaceutical companies to refer to new evidence signifying that there may be new applications for an existing drug or procedure. This type of news is closely followed by investors, who can access such findings through the press releases issued on companies’ investor relations pages.",investopedia,1,37.13,14.4,0,13.47,16.3,12.02,18.25,18.83
New Issue,"A new issue refers to a stock or bond offering that is made for the first time. Most new issues come from privately held companies that become public, presenting investors with new opportunities.",investopedia,1,63.19,8.5,0,10.55,10.1,9.24,10.75,12.66
New Keynesian Economics,New Keynesian economics is a modern macroeconomic school of thought that evolved from classical Keynesian economics. This revised theory differs from classical Keynesian thinking in terms of how quickly prices and wages adjust.,investopedia,1,37.81,12.1,0,16.35,14.7,11.15,12.75,12.66
New Paradigm,"In investing, a new paradigm is a revolutionary new concept or way of doing things that replaces old beliefs and ways of doing things.",investopedia,1,55.58,11.5,0,9.35,12.4,10.75,15,14.6
New York Board of Trade (NYBOT),"Founded in 1870, the New York Board of Trade (NYBOT) is a commodity futures exchange located in New York. In 2006, it became part of the Intercontinental Exchange (ICE).",investopedia,1,56.76,8.9,0,8.75,8.7,9.26,7.75,9.94
New York Mercantile Exchange (NYMEX),"The New York Mercantile Exchange (NYMEX) is the world's largest physical commodity futures exchange and is today part of the Chicago Mercantile Exchange Group (CME Group), which is the world’s leading and most diverse derivatives marketplace. CME Group consists of four exchanges: Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), NYMEX, and the Commodity Exchange, Inc. (COMEX). Each exchange lists wide range of futures products, commodities, and global benchmarks across major asset classes.",investopedia,1,46.4,12.9,13,15.55,18.8,10.84,15.33333333,13.12
New York Stock Exchange (NYSE),"The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity on March 8, 2006, following the acquisition of electronic trading exchange Archipelago. In 2007, a merger with Euronext, the largest stock exchange in Europe, led to the creation of NYSE Euronext, which was later acquired by Intercontinental Exchange, the current parent of the New York Stock Exchange. ",investopedia,1,23.77,21.6,0,13.13,26.8,10.84,29,23.48
Newly Industrialized Country (NIC),"A newly industrialized country (NIC) is a term used by political scientists and economists to describe a country whose level of economic development ranks it somewhere between developing and highly developed classifications. These countries have moved away from an agriculture-based economy and into a more industrialized, urban economy. Experts also know them as ""newly industrializing economies"" or ""advanced developing countries.""",investopedia,1,17.34,15.8,15.9,17.81,17.9,10.68,15,16
News Trader,"A news trader is a trader or investor who makes decisions based on news announcements. Breaking news, economic reports, and other reported events can have a short-lived effect on the price action of stocks, bonds, and other securities. News traders try to profit by taking advantage of market sentiment leading up to the release of important news and/or trading on the market's response to the news after the fact.",investopedia,1,56.59,11.1,12.5,11.32,13.8,10.73,14.16666667,13.26
NEX,"NEX is a separate board on the TSX Venture stock exchange that provides a unique trading forum for listed companies that no longer meet the TSX Venture's ongoing listing standards. The NEX is designed for companies that have low levels of business activity or have ceased to carry on active business. It benefits such companies by giving their stocks a degree of liquidity and providing visibility that may attract potential acquirers or investors. These companies are identified by an ""H"" or ""K"" extension to their trading symbols.",investopedia,1,42.04,14.6,16.3,12.72,17.4,11.25,19.83333333,16.66
"Next-In, First-Out (NIFO)","Next In, First Out (NIFO) is a method of valuing inventory where the cost of an item is based upon its replacement cost rather than its original cost.",investopedia,1,59.98,11.8,0,7.67,13.2,9.54,17,15.49
Next of Kin,"Next of kin is usually defined as a person's closest living blood relative, someone who may have inheritance rights, and obligations.",investopedia,1,41.7,12.7,0,12.82,14.4,11.45,14.5,16.02
NEXUS,"NEXUS is a government-sponsored Trusted Travelers Program that allows pre-screened U.S. and Canadian citizens to expedite border crossings. U.S. and Canadian citizens using NEXUS experience expedited border crossings into the United States and Canada with less immigration and customs questioning. NEXUS is valid for air, land, and sea travel, and a NEXUS ID can be used in lieu of a passport.",investopedia,1,32.06,16.4,0,14.05,19.7,12.14,20.75,17.45
Nifty 50,The Nifty Fifty was a group of 50 large-cap stocks on the New York Stock Exchange that were most favored by institutional investors in the 1960s and 1970s. Investment in these top 50 stocks—similar to blue-chip stocks of today—is said to have propelled the American economy to its bull market of the 1970s. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios.,investopedia,1,56.89,11,13,11.61,13.5,9.87,14.33333333,13.79
Nigerian Scam,"A Nigerian scam, also known as advance fee fraud or 419 fraud, is a scheme in which a sender requests help in facilitating the transfer of a sum of money, generally in the form of an email. In return, the sender offers a commission—a large amount, sometimes up to several million dollars depending on the perceived gullibility of the target. The scammers then request that money be sent to pay for some of the costs associated with the transfer. If money is sent to the scammers, they will either disappear immediately or try to get more money with claims of continued problems with the transfer.",investopedia,1,53.24,12.4,12.6,9.64,13.8,9.3,15,14.33
Night Depository,"A night depository is a secured bank drop box where accountholders (usually small business owners or employees) can deposit their daily cash, checks, and credit card slips outside of normal banking hours (usually between 9 AM and 5 PM). The bank will collect the deposits and credit them to the client's account on the following business day.",investopedia,1,51.01,13.2,0,11.2,16.5,10.04,17.25,14.21
Nikkei,"The Nikkei is short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index composed of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange. The Nikkei is equivalent to the Dow Jones Industrial Average (DJIA) Index in the United States.",investopedia,1,70.84,7.7,11.9,11.66,12,10.26,11,11.54
NINJA Loan,"A NINJA loan is a slang term for a loan extended to a borrower with little or no attempt by the lender to verify the applicant's ability to repay. It stands for ""no income, no job, and no assets."" Whereas most lenders require loan applicants to provide evidence of a stable stream of income or sufficient collateral, a NINJA loan ignores that verification process.",investopedia,1,49.86,11.6,13.6,9.17,11.4,10.12,14,14.77
Nixon Shock,Nixon Shock is a phrase used to describe the aftereffect of a set of economic policies touted by former President Richard Nixon in 1971.,investopedia,1,64.04,10.3,0,10.57,13.1,11.41,15,14.6
No Documentation Mortgage (No Doc),"The term no documentation (no doc) mortgage refers to a loan that doesn't require income verification from the borrower. This type of loan is instead approved on a declaration that confirms the borrower can afford the loan payments. No doc mortgages are commonly given to those whose incomes aren't easily verified. Largely unregulated, these loans are mainly based on the resale potential of the secured property and the repayment structure of the mortgage.",investopedia,1,44.44,11.6,13,12.65,12.6,10.82,12.125,13.35
No-Load Fund,"A no-load fund is a mutual fund in which shares are sold without a commission or sales charge. This absence of fees occurs because the shares are distributed directly by the investment company, instead of going through a secondary party. This absence of a sales charges is the opposite of a load fund—either front-load or back-load—which charges a commission at the time of the fund's purchase or sale. Also, some mutual funds are level-load funds where fees continue for as long as the investor holds the fund.",investopedia,1,66.27,9.4,13,10.56,12.7,8.35,13.875,11.94
No-Par Value Stock,"No-par value stock is issued without the specification of a par value indicated in a company's articles of incorporation or on its stock certificates. Most shares issued are classified as no-par or low-par value stock, where prices of the latter are determined by the amount of cash investors are willing to pony up for the stocks on the open market.",investopedia,1,49.49,13.8,0,10.75,16.4,9.07,19,17.33
No-Shop Clause,"A no-shop clause is a clause found in an agreement between a seller and a potential buyer that bars the seller from soliciting a purchase proposal from any other party. In other words, the seller cannot shop the business or asset around once a letter of intent or agreement in principle is entered into between the seller and the potential buyer. The letter of intent outlines one party's commitment to do business and/or execute a deal with another.",investopedia,1,45.09,13.4,12.5,10.22,14.1,8.57,15.66666667,13.48
No Transaction Fee Mutual Fund,"A no-load fund is a mutual fund in which shares are sold without a commission or sales charge. This absence of fees occurs because the shares are distributed directly by the investment company, instead of going through a secondary party. This absence of a sales charges is the opposite of a load fund—either front-load or back-load—which charges a commission at the time of the fund's purchase or sale. Also, some mutual funds are level-load funds where fees continue for as long as the investor holds the fund.",investopedia,1,66.27,9.4,13,10.56,12.7,8.35,13.875,11.94
Noise,"In a broad analytical context, noise refers to information or activity that confuses or misrepresents genuine underlying trends. In the financial markets, noise can include small price corrections in the market as well as price fluctuations–called volatility–that distorts the overall trend. However, market noise can make it challenging for investors to discern what's driving the trend and whether a trend is changing or merely experiencing short-term volatility.",investopedia,1,20.55,18.7,0,17.24,23.4,11.9,15.83333333,20.56
Noise Trader,Noise trader is generally a term used in academic finance studies associated with the Efficient Markets Hypothesis (EMH). The definition is often vaguely stated throughout the literature though it is mainly intended to describe investors who make decisions to buy or sell based on factors they believe to be helpful but in reality will give them no better returns than random choices.,investopedia,1,31.55,16.6,0,13.18,18.6,11.54,20.5,18.85
Nominal,"Nominal is a common financial term with several different meanings. In the first, it means very small or far below the real value or cost. In finance, this adjective modifies words such as a fee or charge. A nominal fee is below the price of the service provided or presumably easy for a consumer to afford, or a fee that is small enough that it does not have any meaningful impact on one's finances. Nominal may also refer to a rate that's been unadjusted for inflation.",investopedia,1,62.48,8.8,12.3,7.77,8.3,8.16,11.2,11.07
Nominal Effective Exchange Rate (NEER),The nominal effective exchange rate (NEER) is an unadjusted weighted average rate at which one country's currency exchanges for a basket of multiple foreign currencies. The nominal exchange rate is the amount of domestic currency needed to purchase foreign currency.,investopedia,1,34.26,13.5,0,14.91,15.3,10.55,15.5,16
Nominal Gross Domestic Product,"Nominal gross domestic product is gross domestic product (GDP) evaluated at current market prices. GDP is the monetary value of all the goods and services produced in a country. Nominal differs from real GDP in that it includes changes in prices due to inflation, which reflects the rate of price increases in an economy.",investopedia,1,44.07,13.8,0,11.49,15.7,10.24,12,15.99
Nominal Interest Rate,"Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.",investopedia,1,35.78,12.9,0,12.36,12.3,8.39,13.75,12.81
Nominal Rate of Return,"The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation. If an investment generated a 10% return, the nominal rate would equal 10%. After factoring in inflation during the investment period, the actual (""real"") return would likely be lower.",investopedia,1,36.28,12.7,15.9,11.54,12.3,8.04,14,13.13
Nominal Value,"Nominal value of a security, often referred to as face or par value, is its redemption price and is normally stated on the front of that security. With respect to bonds and stocks, it is the stated value of an issued security, as opposed to its market value. In economics, nominal values refer to the unadjusted rate or current price, without taking inflation or other factors into account as opposed to real values, where adjustments are made for general price level changes over time.",investopedia,1,43.06,14.2,14.6,10.16,15.2,8.97,18,15.01
Nominal Yield,"A bond's nominal yield, depicted as a percentage, is calculated by dividing all the annual interest payments by the face, or par, value of the bond.",investopedia,1,36.63,14.6,0,9.12,13.8,12.21,20,21.17
Nominated Advisor (NOMAD),"A nominated advisor (NOMAD) is a financial services firm that assists with listing a company onto the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). The Alternative Investment Market is a specialized unit of the LSE catering to smaller, more risky companies.",investopedia,1,32.22,14.2,0,13.17,15.2,11.55,16,15.16
Nomination Committee,"The term nomination committee refers to a committee that acts as part of an organization’s corporate governance. A nomination committee evaluates a firm's board of directors and examines the skills and characteristics required of board candidates. Nomination committees may also have other duties, which vary from company to company.",investopedia,1,29.55,13.2,16.7,15.54,14.1,9.92,13.83333333,15.5
Nominee,"A nominee is a person or firm whose name is titled on securities or other property to facilitate certain transactions or transfers while leaving the original customer as the actual or legal owner. In this way, a nominee can serve as a custodian.",investopedia,1,41.19,12.9,0,9.69,11.6,9.11,15.25,16.04
Non-Accelerating Inflation Rate of Unemployment,"The non-accelerating inflation rate of unemployment (NAIRU) is the specific level of unemployment that is evident in an economy that does not cause inflation to increase. In other words, if unemployment is at the NAIRU level, inflation is constant. NAIRU often represents the equilibrium between the state of the economy and the labor market. ",investopedia,1,44.44,11.6,15,12.76,12.8,8.56,13.5,13.14
Non-Accredited Investor,A non-accredited investor is any investor who does not meet the income or net worth requirements set out by the Securities and Exchange Commission (SEC). The concept of a non-accredited investor comes from the various SEC acts and regulations that refer to accredited investors.,investopedia,1,49.15,11.9,0,13.17,15,9.39,15,14.25
Non-Assessable Stock,A non-assessable stock is a class of stock in which the issuing company is not allowed to impose levies on its shareholders for additional funds in order to make further investments. The maximum liability the purchaser of the stock assumes is equal to the initial purchase price of the shares. Stocks issued by U.S. companies and traded on U.S. exchanges (and almost all other exchanges) are generally non-assessable.,investopedia,1,48.43,12.1,13.6,11.96,14.2,10.57,14.66666667,14.96
Non-Amortizing Loan,"A non-amortizing loan is a type of loan for which payments on the principal are made by lump sum. As a result, the value of the principal does not decrease at all over the life of the loan. Popular types of non-amortizing loans include interest-only loans or balloon-payment loans.",investopedia,1,63.39,8.5,11.9,9.05,9.2,8.31,10.5,9.79
Non-Banking Financial Company (NBFC),"Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs) are financial institutions that offer various banking services but do not have a banking license. Generally, these institutions are not allowed to take traditional demand deposits—readily available funds, such as those in checking or savings accounts—from the public. This limitation keeps them outside the scope of conventional oversight from federal and state financial regulators.",investopedia,1,24.07,15.3,16.3,18.51,19.2,11.27,16.16666667,15.45
Non-Cash Charge,"A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a company's financial standing, weighing on earnings without affecting short-term capital in any way. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows.",investopedia,1,44.44,11.6,14.6,17.52,17.2,11.43,13.16666667,15.32
Non-Cash Item,"A non-cash item has two different meanings. In banking, the term is used to describe a negotiable instrument, such as a check or bank draft, that is deposited but cannot be credited until it clears the issuer's account.",investopedia,1,69.11,8.3,0,9.57,10.8,9.15,12,11.81
Non-Compete Agreement,A non-compete agreement is a legal agreement or clause in a contract wherein an employee promises not to enter into a competition with an employer after the employment period is over. These agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment.,investopedia,1,28.67,15.6,0,14.05,16.8,11.09,18.75,17.26
Non-Competitive Tender,"A non-competitive tender is an offer to buy United States Treasury securities that is made by non-institutional investors. These smaller investors do not participate in a formal auction for the securities but instead accept the market price set by other participants. By contrast, competitive tender offers are those made by large institutional buyers who collectively set the price of Treasury securities through a Dutch auction process.",investopedia,1,32.22,14.2,13.6,14.97,16.2,9.03,14.33333333,12.44
Non-Controlling Interest,"A non-controlling interest, also known as a minority interest, is an ownership position wherein a shareholder owns less than 50% of outstanding shares and has no control over decisions. Non-controlling interests are measured at the net asset value of entities and do not account for potential voting rights.",investopedia,1,30.2,15,0,13.58,16.1,11.74,18.5,18.77
Non-Covered Security,"A non-covered security is an SEC designation under which the cost basis of securities that are small and of limited scope may not be reported to the IRS. The adjusted cost basis of non-covered securities is only reported to the taxpayer, and not the IRS.",investopedia,1,40.18,13.2,0,9.7,12,9.31,16.75,15.22
Non-Deliverable Forward (NDF),"A non-deliverable forward (NDF) is a cash-settled, and usually short-term, forward contract. The notional amount is never exchanged, hence the name ""non-deliverable."" Two parties agree to take opposite sides of a transaction for a set amount of money—at a contracted rate, in the case of a currency NDF. This means that counterparties settle the difference between contracted NDF price and the prevailing spot price. The profit or loss is calculated on the notional amount of the agreement by taking the difference between the agreed-upon rate and the spot rate at the time of settlement.",investopedia,1,60.85,9.4,13.7,12.47,13,8.1,12.8,11.78
Non-Deliverable Swap (NDS),"A non-deliverable swap (NDS) is a variation on a currency swap between major and minor currencies that is restricted or not convertible. This means that there is no actual delivery of the two currencies involved in the swap, unlike a typical currency swap where there is physical exchange of currency flows. Instead, periodic settlement of a NDS is done on a cash basis, generally in U.S. dollars.",investopedia,1,40.38,13.2,16.3,10.8,13.1,10.16,16.5,16.08
Non-Disclosure Agreement (NDA),A non-disclosure agreement is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others. An NDA may also be referred to as a confidentiality agreement.,investopedia,1,39.03,11.6,11.9,13.62,12.2,10.92,9,12.21
Non-Executive Director,A non-executive director is a member of a company's board of directors who is not part of the executive team. A non-executive director typically does not engage in the day-to-day management of the organization but is involved in policymaking and planning exercises.,investopedia,1,24.78,15,0,12.71,14.2,9.57,17,16.97
Non-Exempt Employee,"Nonexempt employees are workers who are entitled to earn the federal minimum wage and qualify for overtime pay, which is calculated as one-and-a-half times their hourly rate for every hour they work above and beyond a standard 40-hour workweek. These regulations are created by the federal Fair Labor Standards Act (FLSA).",investopedia,1,45.59,13.2,0,12.94,16.4,11.4,17.75,16.47
Non-Farm Payroll,"Nonfarm payrolls is the measure of the number of workers in the U.S. excluding farm workers and workers in a handful of other job classifications. This is measured by the Bureau of Labor Statistics (BLS), which surveys private and government entities throughout the U.S. about their payrolls. The BLS reports the nonfarm payroll numbers to the public on a monthly basis through the closely followed “Employment Situation” report.",investopedia,1,48.43,12.1,11.9,13.06,15,10.57,13.66666667,12.61
Non-GAAP Earnings,"Non-GAAP earnings are an alternative accounting method used to measure the earnings of a company. Many companies report non-GAAP earnings in addition to their earnings based on Generally Accepted Accounting Principles (GAAP). These pro forma figures, which exclude ""one-time"" transactions, can sometimes provide a more accurate measure of a company’s financial performance from direct business operations.",investopedia,1,27.11,14.1,15.9,17.75,17.3,11.05,14.33333333,16.77
Non-Interest-Bearing Current Liability (NIBCL),"A non-interest-bearing current liability (NIBCL) is a category of expenses that an individual or a company must pay off within the calendar year but will not owe interest on. Taxes that do not include late penalties, as well as accounts payable, within the credit terms timelines or without late fees, are examples of NIBCLs that can be found on a company's balance sheet.",investopedia,1,31.04,16.8,0,10.92,17.5,10.96,20.75,17.04
Non-Interest Income,"Non-interest income is bank and creditor income derived primarily from fees including deposit and transaction fees, insufficient funds (NSF) fees, annual fees, monthly account service charges, inactivity fees, check and deposit slip fees, and so on. Credit card issuers also charge penalty fees, including late fees and over-the-limit fees. Institutions charge fees that generate non-interest income as a way of increasing revenue and ensuring liquidity in the event of increased default rates.",investopedia,1,30.2,15,16.3,15.79,18.3,11.19,17.33333333,16.82
Non-Issuer Transaction,"A non-issuer transaction is a transaction involving a security that is not directly or indirectly executed for the benefit of the issuing company. Most deals that occur on the secondary market, such as stock exchanges, involve non-issuer transactions; with the exception of initial public offerings (IPOs); secondary offerings; or share buybacks that will involve the issuer.",investopedia,1,26.14,16.6,0,15.21,19.7,10.95,22,19.06
Non-Marginable Securities,"Non-marginable securities are not allowed to be purchased on margin at a particular brokerage, or financial institution. They must be fully funded by the investor's cash.",investopedia,1,41.36,10.7,0,13.04,11.4,11.57,8.5,12.89
Non-Marketable Security,"A non-marketable security is an asset that is difficult to buy or sell due to the fact that they are not traded on any major secondary market exchanges. Such securities, often forms of debt or fixed-income securities, are usually only bought and sold through private transactions or in an over-the-counter (OTC) market.",investopedia,1,45.09,13.4,0,11.78,15.8,9.78,17.5,14.25
Non-Member Banks,"Non-member banks are banks that are not members of the U.S. Federal Reserve System. As with member banks, non-member banks are subject to reserve requirements, which they have to maintain by placing a percentage of their deposits at a Federal Reserve Bank. Although non-member banks are not required to purchase stock in their district Federal Reserve banks, they still have access to services offered by the Federal Reserve, such as its discount window on the same terms as member banks.",investopedia,1,59.64,9.9,11.7,11.49,12.6,8.97,12.25,9.5
Non-Negotiable,"Non-negotiable means not open for debate or modification. It can refer to the price of a good or security that is firmly established and cannot be adjusted, or a part of a contract or deal that is considered a requirement by one or both involved parties. Additionally, the term can relate to a good or security whose ownership is not easily transferable from one party to another.",investopedia,1,48.84,12,15,9.7,11.8,9.22,15.5,15.49
Non-Objecting Beneficial Owner (NOBO),"A non-objecting beneficial owner (NOBO) is a beneficial owner of a company who gives permission to a financial intermediary to release their name and address to the companies or issuers in which they have bought securities. This allows companies to contact the beneficial owner directly with various communication related to the business. However, the SEC still maintains that beneficial owners should be contacted via an intermediary, such as a broker, for proxy materials.",investopedia,1,21.43,16.3,17.9,14.22,16.7,10.47,18.83333333,16.84
Non-Operating Asset,"A non-operating asset is a class of assets that are not essential to the ongoing operations of a business but may still generate income or provide a return on investment (ROI). These assets are listed on a company's balance sheet along with its operating assets, and they may or may not be broken out separately.",investopedia,1,43.56,14,0,9.46,14.4,9.31,18.25,16.82
Non-Operating Expense,"A non-operating expense is a business expense unrelated to the core operations. The most common types of non-operating expenses are interest charges and losses on the disposition of assets. Accountants sometimes remove non-operating expenses and non-operating revenues to examine the performance of the business, ignoring the effects of financing and other irrelevant issues.",investopedia,1,11.21,16.1,16.3,16.88,16.1,11.37,14.16666667,16.14
Non-Operating Income,"Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include items such as dividend income, profits, or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs. Non-operating income is also referred to as incidental or peripheral income.",investopedia,1,34.97,13.2,13.6,14.1,14.6,10.86,13,13.93
Non-Owner Occupied,"Non-owner occupied is a classification used in mortgage origination, risk-based pricing, and housing statistics for one- to four-unit investment properties. The classification means the owner does not occupy the property. The term non-owner occupied is not typically used for multi-family rental properties, such as apartment buildings.",investopedia,1,30.57,12.8,15,17.33,16,10.92,12,13.95
Non-Performing Asset (NPA),A nonperforming asset (NPA) refers to a classification for loans or advances that are in default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations.,investopedia,1,69.11,8.3,11.2,8.76,9.6,9.84,11.5,11.81
Non-Purpose Loan,A non-purpose loan is an alternative type of loan that often involves using investment securities as collateral and relies on complex structuring. Regulated non-purpose loans can be offered by brokerages and financial institutions with some specific government-regulatory documentation requirements.,investopedia,1,0.92,18,0,21.12,20.1,13.51,17.25,21.13
Non-Qualified Deferred Compensation (NQDC),"A non-qualified deferred compensation is compensation that has been earned by an employee but not yet received from their employer. Because the ownership of the compensation—which may be monetary or otherwise—has not been transferred to the employee, it is not yet part of the employee's earned income and is not counted as taxable income.",investopedia,1,44.07,13.8,0,13.18,17,9.07,19,15.99
Non-Qualified Plan,"A nonqualified plan is a type of tax-deferred, employer-sponsored retirement plan that falls outside of Employee Retirement Income Security Act (ERISA) guidelines. Nonqualified plans are designed to meet specialized retirement needs for key executives and other select employees and can act as recruitment or employee retention tools. These plans are also exempt from the discriminatory and top-heavy testing that qualified plans are subject to.",investopedia,1,32.94,14,16.3,16.53,17.4,10.61,16,16.02
Non-Qualified Stock Option (NSO),A non-qualified stock option (NSO) is a type of employee stock option wherein you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option.,investopedia,1,45.43,15.4,0,10.63,18.3,9.97,22,18.31
Non-Qualifying Investment,"A non-qualifying investment is an investment that does not qualify for any level of tax-deferred or tax-exempt status. Investments of this sort are made with after-tax money. They are purchased and held in tax-deferred accounts, plans, or trusts. Returns from these investments are taxed on an annual",investopedia,1,59.5,7.9,11.7,11.64,9.9,9.26,7.125,8.98
Non-Recourse Debt,"Non-recourse debt is a type of loan secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. This is one instance where the borrower does not have personal liability for the loan.",investopedia,1,50.16,11.5,15,10.91,12.5,8.94,14.83333333,13.48
Non-Recourse Finance,Non-recourse finance is a type of commercial lending that entitles the lender to repayment only from the profits of the project the loan is funding and not from any other assets of the borrower. Such loans are generally secured by collateral.,investopedia,1,50.67,11.3,0,10.85,12,11.59,13.75,14.05
Non-Refundable Tax Credit,"A non-refundable tax credit is a tax credit that can only reduce a taxpayer’s liability to zero. Any amount that remains from the credit is automatically forfeited by the taxpayer. A nonrefundable credit can also be referred to as a wastable tax credit, which may be contrasted with refundable tax credits.",investopedia,1,37.13,14.4,0,11.78,15.2,9.86,17.25,16.47
Non-Renounceable Rights,A non-renounceable rights issue refers to an offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount).,investopedia,1,29.18,15.4,0,13.41,16.5,12.46,17.5,16.4
Non-Security,"A non-security is an alternative investment that is not traded on a public exchange as stocks and bonds are. Assets such as art, rare coins, life insurance, gold, and diamonds all are non-securities.",investopedia,1,54.73,9.7,0,10.38,10.7,10.68,11.25,13.87
Non-Sufficient Funds,"The term non-sufficient funds (NSF), or insufficient funds, refers to the status of a checking account that does not have enough money to cover transactions. NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account. You may see a “non-sufficient funds” or “insufficient funds” notice on a bank statement or at an ATM terminal (or on a receipt) when attempting to withdraw more money than your account holds.",investopedia,1,39.84,17.5,0,10.86,21.4,9.99,15.83333333,18.84
Non-Taxable Distribution,"A non-taxable distribution is a payment to shareholders. It is similar to a dividend, but it represents a share of a company's capital rather than its earnings. Contrary to what the name might imply, it's not really non-taxable. It's just not taxed until the investor sells the stock of the company that issued the distribution. Non-taxable distributions reduce the basis of the stock.",investopedia,1,58.69,8.2,12.7,10.48,9.1,8.77,8.1,9.48
Non-Traded REIT,Non-traded REITs are not listed on public exchanges and can provide retail investors access to inaccessible real estate investments with tax benefits.,investopedia,1,23.77,15.4,0,16.19,17.2,14.06,15,14.25
Nonaccrual Experience Method (NAE),"The Nonaccrual Experience Method (NAE) is an accounting procedure allowed by the Internal Revenue Code (IRC) for handling bad debts. This method can only be applied to bad debts for services performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, or the performing arts. The company in question also must have average annual gross receipts for any three prior tax years of less than $5 million.",investopedia,1,47.83,12.4,15.5,13.23,15.8,11.78,16.33333333,16.18
Nonaccrual Loan,"A nonaccrual loan is a lender's term for an unsecured loan whose payment is 90 days or more overdue. The loan is no longer generating its stated interest rate because no payment has been made by the borrower. It is, therefore, a nonperforming loan.",investopedia,1,65.01,7.8,11.2,8.34,7.9,9.03,8.333333333,11.33
Noncallable,"Noncallable security is a financial security that cannot be redeemed early by the issuer except with the payment of a penalty. The issuer of a noncallable bond subjects itself to interest rate risk because, at issuance, it locks in the interest rate it will pay until the security matures. If interest rates decline, the issuer must continue paying the higher rate until the security matures.",investopedia,1,40.99,12.9,13,11.43,13.2,9.09,13.83333333,11.14
Noncancellable Insurance Policy,"A noncancellable insurance policy is a life or disability insurance policy that an insurance company can’t cancel, increase the premiums on, or reduce the benefits of for as long as the customer pays the premiums.",investopedia,1,19.03,19.3,0,12.49,20.1,10.34,28.5,20.86
Nonce,"A nonce is an abbreviation for ""number only used once,"" which, in the context of cryptocurrency mining, is a number added to a hashed—or encrypted—block in a blockchain that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for. When the solution is found, the blockchain miners are offered cryptocurrency in exchange.",investopedia,1,59.64,9.9,11.9,13.17,14.1,9.1,12.33333333,12
Nonconforming Mortgage,"A nonconforming mortgage is a mortgage that does not meet the guidelines of government-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac and, therefore, cannot be sold to them. GSE guidelines consist of a maximum loan amount, suitable properties, down payment requirements, and credit requirements, among other factors.",investopedia,1,46.61,12.8,0,15.32,18.1,10.65,15.75,13.88
Noncumulative,"The term ""noncumulative"" describes a type of preferred stock that does not pay stockholders any unpaid or omitted dividends. Preferred stock shares are issued with pre-established dividend rates, which may either be stated as a dollar amount or as a percentage of the par value. If the corporation chooses not to pay dividends in a given year, investors forfeit the right to claim any of the unpaid dividends in the future.",investopedia,1,55.88,11.4,12.5,11.2,13.8,9.93,14.5,13.42
Noncurrent Assets,"Noncurrent assets are a company's long-term investments for which the full value will not be realized within the accounting year. They are typically highly illiquid, meaning these assets cannot easily be converted into cash. Examples of noncurrent assets include investments, intellectual property, real estate, and equipment. Noncurrent assets appear on a company's balance sheet.",investopedia,1,32.39,12.1,14.2,16.17,13.9,10.15,10.5,13.55
Noncurrent Liability,"Noncurrent liabilities, also called long-term liabilities or long-term debts, are long-term financial obligations listed on a company’s balance sheet. These liabilities have obligations that become due beyond twelve months in the future, as opposed to current liabilities which are short-term debts with maturity dates within the following twelve month period.",investopedia,1,20.72,16.6,0,18.05,20.4,10.56,18.5,15.6
Nonelective Contribution,Nonelective contributions are funds employers choose to direct toward their eligible workers' employer-sponsored retirement plans regardless if employees make their own contributions. These contributions come directly from the employer and are not deducted from employees' salaries.,investopedia,1,19.37,15,0,21.4,19.9,11.55,16,19.42
Nonfeasance,"Nonfeasance is a legal concept that refers to the willful failure to execute or perform an act or duty required by one’s position, office, or law whereby that neglect results in harm or damage to a person or property. The perpetrator can be found liable and subject to prosecution.",investopedia,1,46.61,12.8,0,10.1,13.2,10.65,15.25,14.7
Nonfinancial Asset,"A nonfinancial asset is an asset that derives its value from its physical traits. Examples include real estate and vehicles. It also includes all intellectual property, such as patents and trademarks. The classification of possessions as nonfinancial assets is important to businesses as these items appear on a company's balance sheet and determine a multitude of factors, such as a company's market value and debt profile.",investopedia,1,37.81,12.1,14.2,13.28,12.4,10.68,12,13.87
Nonforfeiture Clause,"A nonforfeiture (sometimes hyphenated) clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. Standard life insurance and long-term care insurance may have nonforfeiture clauses. The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiums paid before the policy lapsed.",investopedia,1,29.18,15.4,17.1,14.1,16.9,9.93,18.5,15.33
Noninterest Expense,A noninterest expense is an operating expense of a bank or financial institution that is classified separately from interest expense and provision for credit losses. Examples of noninterest expenses include:,investopedia,1,13.95,15,0,16.17,14,11.75,13,19.33
Nonlinearity,"Nonlinearity is a term used in statistics to describe a situation where there is not a straight-line or direct relationship between an independent variable and a dependent variable. In a nonlinear relationship, changes in the output do not change in direct proportion to changes in any of the inputs.",investopedia,1,38.15,14,0,12.36,15,8.72,16.75,16.33
Nonmonetary Assets,"Nonmonetary assets are items a company holds for which it is not possible to precisely determine a dollar value. These are assets whose dollar value may fluctuate substantially over time. A company may need to change its nonmonetary assets as the assets wear out or become obsolete. An example of this would be factory equipment and vehicles. Generally speaking, nonmonetary assets are assets that appear on the balance sheet but are not readily or easily convertible into cash or cash equivalents.",investopedia,1,46.57,10.8,14.3,11.95,11,8.14,11.9,12.9
Nonparametric Method,The nonparametric method refers to a type of statistic that does not make any assumptions about the characteristics of the sample (its parameters) or whether the observed data is quantitative or qualitative.,investopedia,1,30.54,17,0,14.69,20.5,12.13,22,20.3
Nonparametric Statistics,"Nonparametric statistics refers to a statistical method in which the data are not assumed to come from prescribed models that are determined by a small number of parameters; examples of such models include the normal distribution model and the linear regression model. Nonparametric statistics sometimes uses data that is ordinal, meaning it does not rely on numbers, but rather on a ranking or order of sorts. For example, a survey conveying consumer preferences ranging from like to dislike would be considered ordinal data.",investopedia,1,34.9,15.3,16.3,13.64,17.7,11.1,19.16666667,17.35
Nonpassive Income and Losses,"Nonpassive income and losses constitute any income or losses that cannot be classified as passive. Nonpassive income includes any active income, such as wages, business income, or investment income. Nonpassive losses include losses incurred in the active management of a business. Nonpassive income and losses are usually declarable and deductible in the year incurred.",investopedia,1,40.85,10.9,12.2,15.3,12.9,8.69,8.25,10.59
Nonperforming Asset,"A nonperforming asset (NPA) is a debt instrument where the borrower has not made any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. The nonperforming asset is, therefore, not yielding any income to the lender in the form of interest payments.",investopedia,1,37.64,14.2,0,12.48,15.6,10.56,18.5,18
Nonperforming Loan (NPL),"A nonperforming loan (NPL) is a loan in which the borrower is in default due to the fact that they have not made the scheduled payments for a specified period. Although the exact elements of nonperforming status can vary depending on the specific loan's terms, ""no payment"" is usually defined as zero payments of either principal or interest. The specified period also varies, depending on the industry and the type of loan. Generally, however, the period is 90 days or 180 days.",investopedia,1,50.67,11.3,15.2,9.98,11.7,10.05,14.75,14.05
Nonprofit Organization (NPO),"A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received donations or on any other money earned through fundraising activities. Nonprofit organizations are sometimes called NPOs or 501(c)(3) organizations based on the section of the tax code that permits them to operate.",investopedia,1,25.12,17,17.5,14.81,19.3,11.06,20.83333333,16.66
Nonrenewable Resource,A nonrenewable resource is a natural substance that is not replenished with the speed at which it is consumed. It is a finite resource.,investopedia,1,76.22,5.6,0,8.92,6.9,8.84,6.5,9.8
Nonresident Alien,"A nonresident alien is a noncitizen who ""has not passed the Green Card test or the substantial presence test,"" according to the Internal Revenue Service (IRS). Nonresident aliens must pay taxes on income earned in the U.S. Typical examples of nonresident aliens are teachers, people seeking medical treatment, and students.",investopedia,1,46.06,11,13.6,12.93,12.7,11.41,11.66666667,13.08
Nontariff Barrier,"A nontariff barrier is a way to restrict trade using trade barriers in a form other than a tariff. Nontariff barriers include quotas, embargoes, sanctions, and levies. As part of their political or economic strategy, some countries frequently use nontariff barriers to restrict the amount of trade they conduct with other countries.",investopedia,1,45.46,11.2,14.6,13.22,12.9,9.66,12.66666667,13.07
Nordic Model Definiition,"The Nordic model is the combination of social welfare and economic systems adopted by Nordic countries. It combines features of capitalism, such as a market economy and economic efficiency, with social benefits, such as state pensions and income distribution. The Nordic model, also known as the Scandinavian model, is most commonly associated with the countries of Scandinavia: Sweden, Norway, Finland, Denmark, and Iceland.",investopedia,1,33.24,13.8,14.6,15.03,16.3,11.19,14.5,15.38
Normal-Course Issuer Bid (NCIB),A normal-course issuer bid is a Canadian term for a public company's repurchase of its own stock in order to cancel it. A company is allowed to repurchase between 5% and 10% of its shares depending on how the transaction is conducted.,investopedia,1,50.16,11.5,0,8.53,10.7,9.57,15,14.11
Normal Good,"A normal good is a good that experiences an increase in its demand due to a rise in consumers' income. In other words, if there's an increase in wages, demand for normal goods increases while conversely, wage declines or layoffs lead to a reduction in demand.",investopedia,1,56.59,11.1,0,9.12,12,9.58,13.5,12.68
Normal Profit,Normal profit is a profit metric that takes into consideration both explicit and implicit costs. It may be viewed in conjunction with economic profit. Normal profit occurs when the difference between a company’s total revenue and combined explicit and implicit costs are equal to zero.,investopedia,1,47.79,10.3,13,13.04,11.5,10.35,10.5,11.33
Normal Retirement Age (NRA),"The full retirement age, also known as the “normal retirement age,” is the age at which people can receive full retirement benefits upon leaving the workforce. In the U.S., for example, the full retirement age for receiving Social Security benefits is 67 years of age for persons born in 1960 or after, 66 for people born from 1943 to 1954, and 66 and two, four, six, eight, or 10 months for people born from 1955 to 1959 (the age increases by two months each successive year). Claiming benefits prior to your full retirement age will reduce your benefit, while claiming after your FRA will increase them by 8% annually with the maximum benefit occurring at age 70.",investopedia,1,40.35,17.3,17.1,9.7,20.3,10.16,21.33333333,19.36
Normal Yield Curve,"The normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality. This gives the yield curve an upward slope. This is the most often seen yield curve shape, and it's sometimes referred to as the ""positive yield curve.""",investopedia,1,78.89,6.7,9.7,9.45,10.2,7.79,10.16666667,9.34
Normalized Earnings,"Normalized earnings are adjusted to remove the effects of seasonality, revenue, and expenses that are unusual or one-time influences. Normalized earnings help business owners, financial analysts, and other stakeholders understand a company's true earnings from its normal operations. An example of this normalization would be to remove a land sale from a retail firm's financial statements in which a large capital gain was realized, as selling products—not selling land—is the company's real business.",investopedia,1,29.89,15.1,17.9,16.25,18.5,10.03,18.83333333,17.39
Normative Economics,"Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios.",investopedia,1,-10.08,20.1,0,26.51,26.2,14.06,22,25.16
North American Free Trade Agreement (NAFTA),"The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the U.S., Canada, and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, went into effect on Jan. 1, 1994. Numerous tariffs—particularly those related to agricultural products, textiles, and automobiles—were gradually phased out between Jan. 1, 1994, and Jan. 1, 2008.",investopedia,1,43.43,12,13.6,14.91,16,11.4,13,13.93
North American Industry Classification System (NAICS),"The North American Industry Classification System is a business-classification system developed through a partnership among the United States, Mexico and Canada. This classification system facilitates the comparison of statistics of all business activities across North America. Companies are classified and separated into industries that are defined by the same or similar production processes. This system should not be confused with the National Association of Insurance Commissioners (NAIC) or the National Association of Investors Corp. (NAIC).",investopedia,1,18.55,15.3,17.7,18.97,18.1,10.25,15.875,18.19
North American Securities Administrators Association (NASAA),"The North American Securities Administrators Association (NASAA) is an organization of securities regulators whose aim is to protect investors from fraud. Founded in 1919 in the U.S. state of Kansas, its membership of over 60 securities administrators from across North America works to protect customers of investment advice or securities as part of a complementary regulatory system that works at the federal, state/provincial, and industry levels.",investopedia,1,12.6,19.7,0,16.43,22.7,11.49,25.5,20.47
North Sea Brent Crude,North Sea Brent Crude is a blended light sweet crude oil recovered from the North Sea in the early 1960s. Brent crude oil has relatively low sulfur content and a relatively high gravity on the American Petroleum Institute’s standard scale.,investopedia,1,51.18,11.1,0,11.72,12.4,9.76,13.5,13
Norwegian Krone (NOK),"The Norwegian krone (NOK) is the official currency of Norway with its regulation and circulation controlled by the country's central bank, the Norges Bank. The bank issued a total of eight series of banknotes, including the October 2018, issued of a new 50-krone and 500-krone bills. Consumers may still use the 50-krone and 500-krone banknotes from the previous series until 18 October 2019.",investopedia,1,50.16,11.5,13,11.89,13.8,10.94,13.5,12.84
Nostro Account,"A nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostros, a term derived from the Latin word for ""ours,"" are frequently used to facilitate foreign exchange and trade transactions. The opposite term ""vostro accounts,"" derived from the Latin word for ""yours,"" is how a bank refers to the accounts that other banks have on its books in its home currency.",investopedia,1,65.05,9.9,11.9,9.58,12.5,8.44,13.83333333,12.1
Not for Profit,"Not-for-profit organizations are types of organizations that do not earn profits for its owners. All of the money earned by or donated to a not-for-profit organization is used in pursuing the organization's objectives and keeping it running. Typically, organizations in the nonprofit sector are tax-exempt charities or other types of public service organizations, and as such, they are not required to pay most taxes. In a nonprofit organization, income is not distributed to the group's members, directors, or officers. There are also nonprofit corporations known as non-stock corporations. Some well-known nonprofit organizations include the American Red Cross, United Way, and the Salvation Army.",investopedia,1,25.19,14.9,16.4,15.14,16.3,8.95,15.2,13.68
Not-Held Order,"A not-held order, usually a market or limit order, gives a broker both time and price discretion to get the best price available. As a result, the broker is not held responsible for any potential losses or missed opportunities that result from their best efforts.",investopedia,1,57.1,10.9,0,10.45,12.8,9.31,13.75,13.44
Notary Definition,"A notary is a publicly commissioned official who serves as an impartial witness to the signing of a legal document. Document signings where the services of a notary are likely include real estate deeds, affidavits, wills, trusts, and powers of attorney. The main reason a notary is used is to deter fraud.",investopedia,1,62.38,8.9,11.9,10.21,10.4,11.48,11,11.54
Notching,"Notching is the practice by credit rating agencies to give different credit ratings to the particular obligations or debts of a single issuing entity or closely related entities. Rating distinctions among obligations are made based on differences in their security or priority of claim. With varying degrees of losses in the event of default, obligations are subject to being notched higher or lower. Thus, while company A may have an overall credit rating of ""AA,"" its rating on its junior debt may be ""A.""",investopedia,1,50.16,11.5,13.8,11.26,12.9,10.69,14,13.16
Note,A note is a legal document that serves as an IOU from a borrower to a creditor or an investor. Notes have similar features to bonds in which investors receive interest payments for holding the note and are repaid the original amount invested—called the principal—at a future date.,investopedia,1,55.58,11.5,0,11.03,13.6,11.74,16,16.27
Notice of Assessment (NOA),"A notice of assessment (NOA) is an annual statement sent by the Canada Revenue Agency (CRA) to taxpayers detailing the amount of income tax they owe. It includes details such as the amount of their tax refund, tax credit, and income tax already paid. It also lists deductions from total income, total nonrefundable federal tax credits, total British Columbia nonrefundable federal tax credits, and other figures.",investopedia,1,40.69,13.1,13.6,12.36,14.5,10.23,14.33333333,13.65
Notice of Default,"The term notice of default refers to a public notice filed with a court that states that the borrower of a mortgage is in default on a loan. The lender may file a notice of default when a mortgagor falls behind on their mortgage payments. Information on notices of default normally includes the borrower and lender's name and address, the legal address of the property, the nature of the default, as well as other pertinent details. A notice of default is often considered the first step toward foreclosure.",investopedia,1,57.61,10.7,11.2,9.86,12,8.5,13,11.98
Notice of Deficiency,"A notice of deficiency is a legal determination by the IRS of a taxpayer’s tax deficiency. It is an official written claim that a taxpayer owes additional income tax (and often interest on that amount, plus additional penalties). It is issued when the IRS proposes a change to a tax return because they found that the information reported on a return does not match their records. A notice of deficiency is also sometimes referred to as a statutory notice, a statutory notice of deficiency, or an IRS 90-day letter. The official name for a notice of deficiency is IRS Notice CP2319A: Notice of Deficiency and Increase in Tax.",investopedia,1,41.09,12.9,14.3,9.92,12,8.07,13.6,12.71
Notice of Termination,"A notice of termination is what an employer uses to notify an employee as to the end of their employment contract. More broadly, it may also refer to the formal notification of the end of a contract between two or more parties. While a notice of termination usually is provided to an employee for reasons unrelated to his or her job performance—for example, because business conditions necessitate layoffs or downsizing—it may also be given to an employee for poor job performance or misconduct.",investopedia,1,34.9,15.3,17.5,11.55,15.9,9.39,20.16666667,18.31
Notice to Creditors,The notice to creditors is a public notice usually posted in a local newspaper by a trust or estate's executor as part of the probate of the estate of a deceased person. The notice serves as the official notification to both creditors and debtors of the probate of a deceased individual’s estate and may run for a period of weeks depending on state laws.,investopedia,1,39,15.8,0,9.41,16,9.66,21,17.8
Notional Principal Amount,"The notional principal amount, in an interest rate swap, is the predetermined dollar amounts, or principal, on which the exchanged interest payments are based. The notional principal never changes hands in the transaction, which is why it is considered notional, or theoretical. Neither party pays nor receives the notional principal amount at any time; only interest rate payments change hands.",investopedia,1,42.72,12.3,15.9,14.21,14.9,8.84,15,12.67
Notional Value,"Notional value is a term often used to value the underlying asset in a derivatives trade. It can be the total value of a position, how much value a position controls, or an agreed-upon amount in a contract. This term is used when describing derivative contracts in the options, futures, and currency markets.",investopedia,1,53.51,10.2,12.5,9.68,10.2,9.28,11.5,12.36
Novation,"Novation is the replacement of one of the parties in an agreement between two parties, with the agreement of all three parties involved. To novate is to replace an old obligation with a new one.",investopedia,1,70.63,7.8,0,8.47,8.8,8.11,10.25,10.43
Null Hypothesis,A null hypothesis is a type of hypothesis used in statistics that proposes that there is no difference between certain characteristics of a population (or data-generating process).,investopedia,1,18.69,17.4,0,15.26,18.9,10.82,21.5,19.69
Numismatics Definition,"The study of the physical embodiment of various payment media (i.e. currencies). The study of numismatics as it applies to coins is often in the research of the production and use of the coins to determine their rarity. Numismatics has many subfields, including but not limited to:",investopedia,1,47.08,10.6,14.1,10.44,10,9.79,11.5,14.79
N.V. (Naamloze Vennootschap),"N.V. is an acronym for the Dutch phrase ""Naamloze Vennootschap."" Appearing after a firm's name, it connotes incorporation means that the entity is the equivalent of a limited liability public company, with shares that trade on open markets—somewhat like the the American ""Inc."", the French/Latin American/Spanish ""S.A."", the U.K's ""PLC"", and the German or Swiss “A.G.”",investopedia,1,43.06,14.2,0,12.77,18.9,12.92,19,15.49
NYSE Arca,"NYSE Arca is an electronic securities exchange in the U.S. on which exchange-traded products (ETPs) and equities are listed. The exchange specializes in ETP listings, which include exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded vehicles (ETVs). As well as placing typical orders, NYSE Arca allows investors and traders to participate in opening and closing auctions in ETFs and place midpoint orders that sit between the bid and ask price.",investopedia,1,39.37,13.6,14.1,14.86,17.5,12.01,15.33333333,13.32
NYSE Composite Index,"The NYSE Composite Index measures the performance of all common stocks listed on the New York Stock Exchange, including American Depositary Receipts issued by foreign companies, Real Estate Investment Trusts and tracking stocks. The weights of the index constituents are calculated on the basis of their free-float market capitalization. The index itself is calculated on the basis of price return and total return, which includes dividends.",investopedia,1,40.69,13.1,14.1,15.32,16.6,11.19,14.66666667,14.25
Obamanomics,Obamanomics is a popular neologism used to describe the economic policies of the administration of former U.S. President Barack Obama. The term is commonly associated with the economic stimulus programs enacted by the Obama Administration in response to the Great Recession of 2008.,investopedia,1,31.58,12.4,15,13.97,12,11.69,11.5,15.95
Obelisk Consensus Algorithm,"Obelisk is a blockchain consensus algorithm, used by the cryptocurrency Skycoin, that purports to eliminate the shortcomings of proof of work (PoW) and proof of stake (PoS) algorithms. According to its creators, Obelisk also reduces the need for mining, significantly improves transaction speed, and delivers enhanced security.",investopedia,1,39.16,13.6,0,16.31,18.5,12.87,17.25,18.76
Objective Probability,"Objective probability refers to the chances or the odds that an event will occur based on the analysis of concrete measures rather than hunches or guesswork. Each measure is a recorded observation, a hard fact, or part of a long history of collected data. The probability estimate is computed using mathematical equations that manipulate the data to determine the likelihood of an independent event occurring. An independent event is an event whose outcome is not influenced by prior events. Subjective probability, by contrast, may utilize some method of data analysis but also uses guesstimates or intuition to determine the chances of a specific outcome.",investopedia,1,33.44,13.8,15.4,13.11,14.1,10.59,14.4,14.86
Obligation,"An obligation in finance is the responsibility of a party to meet the terms of a contract. If an obligation is not met, the legal system often provides recourse for the injured party. Financial obligations are the backbone of our economy. Trusting that a contract will be adhered to helps create a stable, healthy society.",investopedia,1,57.47,8.7,10.7,9.74,8.4,9.78,7.625,9.88
Obligatory Reinsurance,"Obligatory reinsurance is a treaty that requires an insurer to automatically send all policies on its books that fall within a set list of criteria to a reinsurer. Under the terms of an obligatory reinsurance agreement, also called an automatic treaty, the reinsurer is obliged to accept these policies.",investopedia,1,38.15,14,0,12.71,15.3,10.01,17.25,15.51
Obligor,"An obligor, also known as a debtor, is a person or entity who is legally or contractually obliged to provide a benefit or payment to another. In a financial context, the term ""obligor"" refers to a bond issuer who is contractually bound to make all principal repayments and interest payments on outstanding debt. The recipient of the benefit or payment is known as the obligee.",investopedia,1,49.45,11.8,14.6,9.86,12,10.06,14.83333333,14.22
Obsolescence Risk,"Obsolescence risk is the risk that a process, product, or technology used or produced by a company for profit will become obsolete, and thus no longer competitive in the marketplace. This would reduce the profitability of the company.",investopedia,1,43.73,11.9,0,12.01,12.5,10.4,13.5,13.92
Obsolete Inventory,Obsolete inventory is a term that refers to inventory that is at the end of its product life cycle. This inventory has not been sold or used for a long period of time and is not expected to be sold in the future. This type of inventory has to be written-down or written-off and can cause large losses for a company.,investopedia,1,67.79,8.8,13,6.56,8.5,7.23,13.16666667,10.74
Occupancy Rate,"Occupancy rate is the ratio of rented or used space to the total amount of available space. Analysts use occupancy rates when discussing senior housing, hospitals, bed-and-breakfasts, hotels, and rental units, among other categories. In a call center, occupancy rate refers to the amount of time agents spend on calls compared to their total working hours.",investopedia,1,60.95,9.4,11.9,12.88,13.3,10.77,11.66666667,10.34
Occupational Labor Mobility,Occupational labor mobility refers to the ability of workers to switch career fields in order to find gainful employment or meet labor needs.,investopedia,1,39.67,13.4,0,12.77,14.4,12.33,15.5,16.16
Occupational Safety And Health Act,"The Occupational Safety and Health Act is a law passed by the U.S. Congress in 1970 to ensure safe workplace conditions around the country. It established the federal Occupational Safety and Health Administration (OSHA), which sets and enforces workplace health and safety standards.",investopedia,1,48.5,10,11.2,13.68,12.1,10.22,8.166666667,10.37
Occurrence Policy,"An occurrence policy covers claims made for injuries sustained during the life of an insurance policy. Under these types of contracts, the insured party has the right to request compensation for damages that occurred within the timespan that the policy was active, even if several years have since passed and the insurance agreement is no longer in force.",investopedia,1,42.04,14.6,0,12.72,17.3,11.06,18.5,14.36
Ocean Bills of Lading,"An ocean bill of lading is a document required for the transportation of goods overseas across international waters. An ocean bill of lading serves as both the carrier's receipt to the shipper, and as a collection document or an invoice. The contract is a legally binding document between both the shipper and the carrier of the shipment.",investopedia,1,51.01,13.2,0,11.38,16.3,10.04,12.16666667,15.61
October Effect,The October effect is a perceived market anomaly that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological expectation rather than an actual phenomenon as most statistics go against the theory. Some investors may be nervous during October because the dates of some large historical market crashes occurred during this month.,investopedia,1,42.41,12.4,14.6,13.34,13.8,9.82,14.16666667,13.37
Odd Lot,An odd lot is an order amount for a security that is less than the normal unit of trading for that particular asset. Odd lots are considered to be anything less than the standard 100 shares for stocks. Trading commissions for odd lots are generally higher on a percentage basis than those for standard lots since most brokerage firms have a fixed minimum commission level for undertaking such transactions.,investopedia,1,56.59,11.1,14.1,11.2,13.1,10.27,15.16666667,15.58
Odd Lot Theory,"The odd lot theory is a technical analysis hypothesis based on the assumption that the small individual investor is usually wrong and that individual investors are more likely to generate odd-lot sales. Therefore, if odd lot sales are up and small investors are selling a stock, it is probably a good time to buy, and when odd-lot purchases are up, it may indicate a good time to sell.",investopedia,1,45.43,15.4,0,9.76,17.6,9.27,23,20.07
Odious Debt,"Odious debt, also known as illegitimate debt, is when a country's government changes and the successor government does not want to pay debts incurred by the previous government. Usually, successor governments argue that the previous government misappropriated money it had borrowed and that they should not be held responsible for the previous regime’s alleged misdeeds.",investopedia,1,26.64,16.4,0,15.73,19.4,10.17,20.75,16.09
OEX,"OEX, which trades on the Chicago Board Options Exchange (CBOE), is the ticker symbol used to identify Standard & Poor's 100 index options.",investopedia,1,57.61,10.7,0,11.43,14.4,13.34,12.5,10.62
Off-Balance Sheet (OBS),"Off-balance sheet (OBS) items is a term for assets or liabilities that do not appear on a company's balance sheet. Although not recorded on the balance sheet, they are still assets and liabilities of the company. Off-balance sheet items are typically those not owned by or are a direct obligation of the company. For example, when loans are securitized and sold off as investments, the secured debt is often kept off the bank's books. Prior to a change in accounting rules that brought obligations relating to most significant operating leases onto the balance sheet, an operating lease was one of the most common off-balance items.",investopedia,1,44.78,13.5,15.6,11.38,15.4,9.45,13.6,15.09
Off-Balance Sheet Financing (OBSF),"Off-balance sheet (OBSF) financing is an accounting practice whereby companies record certain assets or liabilities in a way that prevents them from appearing on the balance sheet. It is used to keep debt-to-equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break negative debt covenants.",investopedia,1,45.59,13.2,0,14.51,17.9,11.71,18.25,18.04
Off-Chain Transactions (Cryptocurrency),"Off-chain transactions refer to those transactions occurring on a cryptocurrency network which move the value outside of the blockchain. Due to their zero/low cost, off-chain transactions are gaining popularity, especially among large participants.",investopedia,1,37.81,12.1,0,19.49,18,9.72,12.25,13.87
Off-the-Run Treasuries,Off-the-run treasuries are all Treasury bonds and notes issued before the most recently issued bond or note of a particular maturity.,investopedia,1,50.16,11.5,0,13.11,14.4,11.45,13.5,14.11
Offensive Competitive Strategy,"An offensive competitive strategy is a type of corporate strategy that consists of actively trying to pursue changes within the industry. Companies that go on the offensive generally make acquisitions and invest heavily in research and development (R&D) and technology in an effort to stay ahead of the competition. They will also challenge competitors by cutting off new or under-served markets, or by going head-to-head with them.",investopedia,1,31.92,14.3,17.1,13.81,15.5,11.34,17.16666667,17.28
Offer,"An offer is a conditional proposal made by a buyer or seller to buy or sell an asset, which becomes legally binding if accepted. An offer is also defined as the act of offering something for sale, or the submission of a bid to buy something.",investopedia,1,56.59,11.1,0,7.2,10.1,8.9,14,13.55
Offer in Compromise,"Offer in compromise is a program instituted by the Internal Revenue Service (IRS) for taxpayers who cannot pay the taxes they owe, or for taxpayers for whom it would create a financial hardship to pay the taxes they owe. An offer in compromise allows taxpayers to settle their tax bill for less than the full amount owed.",investopedia,1,51.01,13.2,0,9.75,15,8.37,18.25,14.91
Offering,"An offering is the issue or sale of a security by a company. It is often used in reference to an initial public offering (IPO) when a company's stock is made available for purchase by the public, but it can also be used in the context of a bond issue.",investopedia,1,63.02,10.7,0,5.98,10.3,8.35,15.5,13.2
Offering Circular,"An offering circular is a type of prospectus provided for a new security listing. It is delivered to individuals and brokerage houses who are interested in potentially purchasing the newly issued securities. It is often slightly abbreviated from the final, long-form prospectus, but is still required to contain specific information.",investopedia,1,20.68,14.5,15.5,14.67,13.7,11.73,13,17.08
Offering Memorandum,"An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company's financial statements, management biographies, a detailed description of the business operations, and more.",investopedia,1,32.73,14,0,15.78,17,12.41,16.75,18.83
Offering Price,"An offering price, generally, is the price at which something is offered for sale. In finance and investments, the offering price most often refers to the per-share value at which publicly-issued securities are made available for purchase by the investment bank during an initial public offering (IPO).",investopedia,1,47.62,12.5,0,13.52,16,9.84,15.75,13.66
Office of Foreign Asset Control (OFAC),The Office of Foreign Asset Control (OFAC) is a department of the U.S. Treasury that is charged with enforcing economic and trade sanctions imposed by the U.S. against countries and groups of individuals.,investopedia,1,63.19,8.5,0,11.42,11.4,12.11,10.25,11.45
Office of the Comptroller of the Currency (OCC),"The Office of the Comptroller of the Currency (OCC) is a federal agency that oversees the execution of laws relating to national banks. Specifically, it charters, regulates, and supervises national banks and federal branches and agencies of foreign banks in the U.S. The Comptroller of the Currency, appointed by the President and approved by the Senate, heads the OCC.",investopedia,1,33.07,16,0,12.89,18.2,11.79,14.83333333,19.26
Office of the Superintendent of Financial Institutions (OSFI),"The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada. The agency is responsible for the supervision and regulation of banks, insurance companies, and trust and loan companies. They also regulate private pension plans which are subject to federal oversight. The agency's stated goals are to protect depositors, policyholders, the financial institution (FI), creditors and pension plan members while allowing financial institutions to compete and take reasonable risks.",investopedia,1,26.81,14.2,16.5,16.71,16.5,11.23,15,16.55
Office of Thrift Supervision (OTS),"The Office of Thrift Supervision was a bureau of the U.S. Treasury Department that was responsible for issuing and enforcing regulations governing the nation's savings and loan industry. In 2011, the OTS was merged with other agencies including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors, and the Consumer Financial Protection Bureau (CFPB).",investopedia,1,32.53,14.1,17.1,14.68,16.3,12.24,16.83333333,19.14
Official Settlement Account,"An official settlement account is a special type of account used in international balance of payments (BoP) accounting to keep track of central banks' reserve asset transactions with one other. The official settlement account keeps track of transactions involving gold, foreign exchange reserves, bank deposits and special drawing rights (SDRs).",investopedia,1,37.64,14.2,0,16.31,19,11.19,17,14
Official Strike,"An official strike is a work stoppage by union members that is endorsed by the union and that follows the legal requirements for striking, such as being voted on by a majority of union members. Workers engaging in official strikes have better protections against being fired as opposed to an unofficial strike. An official strike is usually undertaken by employees as a last resort in response to grievances. An official strike may also be called an official industrial action, a strike action or a strike.",investopedia,1,49.86,11.6,13.8,11.08,12.6,9.89,14.125,13.23
Offline Debit Card,"An offline debit card is a type of automated payment card, similar to a traditional (online) debit card, that allows a cardholder to pay for goods and services directly from their bank account. As it is not ""online,"" there is a delay before the incurred cost is debited from the account and it does not require a PIN for use. It is similar to writing a check. These types of cards are not common in the U.S. but are available in some foreign countries. Offline debit cards may also be known as “check cards.”",investopedia,1,69.31,8.3,9.9,7.49,8.7,8.43,10.8,10.07
Offset,"An offset involves assuming an opposite position in relation to an original opening position in the securities markets. For example, if you are long 100 shares of XYZ, selling 100 shares of XYZ would be the offsetting position. An offsetting position can also be generated through hedging instruments, such as futures or options.",investopedia,1,45.05,11.4,15.5,12.06,12,10.77,13.5,14.63
Offset Mortgage,"An offset mortgage is a type of home loan that involves blending a traditional mortgage with one or more deposit accounts held by the same financial institution. The savings balance maintained in the deposit account may then be used to offset the mortgage balance, lowering interest payments due.",investopedia,1,47.12,12.7,0,12.77,15,9.43,14.5,13.77
Offsetting Transaction,"An offsetting transaction cancels out the effects of another transaction. Offsetting transactions can occur in any market, but typically offsetting transactions refer to the options, futures, and exotic instrument markets. An offsetting transaction can mean closing a transaction or taking another position in the opposite direction to cancel the effects of the first.",investopedia,1,28.13,13.7,17.1,16.35,15.5,9.58,14.83333333,13.12
Offshore,"The term offshore refers to a location outside of one's home country. The term is commonly used in the banking and financial sectors to describe areas where regulations are different from the home country. Offshore locations are generally island nations, where entities set up corporations, investments, and deposits. Companies and individuals (typically those with a high net worth) may move offshore for more favorable conditions, including tax avoidance, relaxed regulations, or asset protection. Although offshore institutions can also be used for illicit purposes, they aren't considered illegal.",investopedia,1,28.43,13.6,15.4,15.72,15.2,10.49,13.3,16.62
Offshore Banking Unit (OBU),"An offshore banking unit (OBU) is a bank shell branch, located in another international financial center. For instance, a London-based bank with a branch located in Delhi. Offshore banking units make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs. Eurocurrency simply refers to money held in banks located outside of the country which issues the currency.",investopedia,1,46.98,10.6,12.2,12.82,11.8,9.93,10.375,9.49
Offshore Portfolio Investment Strategy (OPIS),"The Offshore Portfolio Investment Strategy (OPIS) was an abusive tax avoidance scheme sold by KPMG, one of the Big Four accounting firms, between 1997 to 2001. This was a time when fraudulent tax shelters had proliferated across the global financial services industry. OPIS was one of many tax avoidance products offered by accounting firms.",investopedia,1,53.21,10.3,13,12.58,12.7,10.96,12,13.13
Offtake Agreement,An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer's upcoming goods. An offtake agreement is normally negotiated before the construction of a production facility—such as a mine or a factory—to secure a market for its future output.,investopedia,1,30.2,15,0,12.6,14.9,10.42,17,17.1
OHLC Chart,"An OHLC chart is a type of bar chart that shows open, high, low, and closing prices for each period. OHLC charts are useful since they show the four major data points over a period, with the closing price being considered the most important by many traders.",investopedia,1,73,8.9,0,8.3,11.5,8.5,13.75,11.1
Oil ETF,"An oil ETF is an exchange-traded fund (ETF) which invests in companies engaged in the oil and gas industry. Companies featured in the ETF basket include discovery, production, distribution, and retail businesses as well as the commodity itself. Some oil ETFs may be commodity pools, with limited partnership interests instead of shares. These pools invest in derivative contracts such as futures and options.",investopedia,1,46.98,10.6,13.8,13.63,12.6,10.94,11.375,13.3
Oil Field,"An oil field is a tract of land used for the purpose of extracting petroleum, such as natural gas or crude oil, from the ground. Although some contest the exact origins of oil, most consider petroleum to be a ""fossil fuel"" created from dead organic material often found in ancient seabeds thousands of meters below the surface of the earth.",investopedia,1,49.49,13.8,0,9.88,15.7,9.86,19,16.67
Oil Initially In Place (OIIP),"Oil initially in place (OIIP) is the amount of crude oil first estimated to be in a reservoir. Oil initially in place differs from oil reserves, as OIIP refers to the total amount of oil that is potentially in a reservoir and not the amount of oil that can be recovered. Calculating OIIP requires engineers to determine how porous the rock surrounding the oil is, how high water saturation might be and the net rock volume of the reservoir. The numbers for the aforementioned factors are established by conducting a series of test drills around the reservoir.",investopedia,1,55.27,11.6,13.4,10.22,13.2,9.07,15.375,14.67
Oil Pollution Act of 1990,The U.S. Congress enacted the Oil Pollution Act of 1990 (OPA) to streamline and strengthen the Environmental Protection Agency's (EPA) power to prevent oil spills. It was passed as an amendment to the Clean Water Act of 1972 following the Exxon Valdez oil spill of 1989. The Oil Pollution Act of 1990 is one of the most wide-reaching and critical pieces of environmental legislation ever passed.,investopedia,1,57.61,10.7,13,10.73,13.1,10.71,14,12.44
Oil Price to Natural Gas Ratio,"As its name suggests, the oil price to natural gas ratio is a ratio in which the price of oil is the numerator and the price of natural gas is the denominator.",investopedia,1,55.92,13.4,0,6.16,13.4,7.69,20,16.55
Oil Refinery,"An oil refinery is an industrial plant that transforms, or refines crude oil into various usable petroleum products such as diesel, gasoline and heating oils. Oil refineries essentially serve as the second stage in the crude oil production process following the actual extraction of crude oil up-stream, and refinery services are considered to be a down-stream segment of the oil and gas industry.",investopedia,1,31.04,16.8,0,13.53,19.4,10.71,22.25,19.58
Oil Reserves,"Oil reserves are an estimate of the amount of crude oil located in a particular economic region. To qualify, oil reserves must have the potential of being extracted under current technological constraints. Reserves are calculated based on a proven/probable basis, meaning oil pools situated in unattainable depths, for example, would not be considered part of a nation's reserves.",investopedia,1,34.97,13.2,15,14.1,14.5,11.67,14,16.69
Oil Sands,"Oil sands, or tar sands, are sand and rock material that contain crude bitumen—a dense, viscous form of crude oil. Bitumen is too thick to flow on its own, so extraction methods are necessary. Bitumen is extracted and processed using two methods: mining and in-situ recovery.",investopedia,1,64.41,8.1,13,10.14,9.9,9.89,10.66666667,11.34
Okun's Law,"Okun's Law is an empirically observed relationship between unemployment and losses in a country's production. When economists are studying the economy, they tend to hone in on two factors: output and jobs. Because there is a relationship between these two elements of an economy, many economists study the relationship between output (or more specifically, gross domestic product, GDP) and unemployment levels.",investopedia,1,42.41,12.4,15.5,15.43,16.2,10.6,14.83333333,14.02
"Old-Age, Survivors, and Disability Insurance (OASDI) Program","The federal Old-Age, Survivors, and Disability Insurance (OASDI) program is the official name for Social Security in the United States. The OASDI tax noted on your paycheck funds this comprehensive federal benefits program that provides benefits to retirees and disabled people—and to their spouses, children, and survivors. The goal of the program is to partially replace income that is lost due to old age, death of a spouse, or qualifying ex-spouse, or disability.",investopedia,1,46.81,12.8,14.6,13.58,16.5,9.82,16.16666667,14.65
Old Economy,"Old economy is a term used to describe the blue-chip sector that enjoyed substantial growth during the early parts of the last century as industrialization expanded around the world. These sectors do not rely heavily on technology or technological advancement, but use processes that have been around for hundreds of years. Even with the rise of the new economy, old economy companies still experience growth, albeit at a declining rate.",investopedia,1,47.83,12.4,15.9,13.18,15.2,9.75,16.66666667,16.75
Old Lady,"The ""Old Lady"" is an eighteenth-century nickname for the Bank of England. It is a short version of the Old Lady of Threadneedle Street, a reference to the bank’s address in the middle of London.",investopedia,1,62.17,8.9,0,7.94,8.8,8.56,10.25,10.43
Oligopsony,An oligopsony is a market for a product or service which is dominated by a few large buyers. The concentration of demand in just a few parties gives each substantial power over the sellers and can effectively keep prices down.,investopedia,1,59.64,9.9,0,9.57,10.6,9.37,12,12
Ombudsman,"An ombudsman is an official, usually appointed by the government, who investigates complaints (usually lodged by private citizens) against businesses, financial institutions, universities, government departments, or other public entities, and attempts to resolve the conflicts or concerns raised, either by mediation or by making recommendations.",investopedia,1,-16.51,26.7,0,21.13,32.7,13.59,39.5,30.44
Omega,"Omega is a measure of option pricing, similar to the option Greeks that measures various characteristics of the option itself. Omega measures the percentage change in an option's value with respect to the percentage change in the underlying price. In this way, it measures the leverage of an options position.",investopedia,1,54.52,9.8,11.9,12.12,11.6,9.2,10.66666667,11.48
Omnibus Account,"An omnibus account allows for managed trades of more than one person, and allows for anonymity of the persons in the account. Omnibus accounts are used by futures commission merchants. Transactions within the account are carried out in the name of the broker, protecting the individual identities of the two or more people invested in the omnibus account. The broker managing the omnibus account typically has the ability to execute trades on behalf of investors with funds inside the omnibus account. Trades are made in the name of the broker, although trade confirmations and statements are provided to customers within the account.",investopedia,1,50.77,11.2,12,12.94,13.6,9.29,12.4,12.87
Oman Rial (OMR),"The currency of Oman. The Omani rial is broken into smaller units, called baisa, and is found in both coin and banknote form. It is managed by the Central Bank of Oman.",investopedia,1,85.99,3.9,6.4,5.49,4.1,9.6,4.666666667,5.53
On Account,On account is an accounting term that denotes partial payment of an amount owed or the purchase/sale of merchandise or services on credit. On account can also be referred to as “on credit.”,investopedia,1,63.19,8.5,0,9.51,9.2,8.76,8.75,9.02
On-Balance Volume (OBV),On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. Joseph Granville first developed the OBV metric in the 1963 book Granville's New Key to Stock Market Profits.,investopedia,1,61.16,9.3,0,12.82,13,11.81,12.25,11.72
On-Chain Governance,"On-chain governance is a system for managing and implementing changes to cryptocurrency blockchains. In this type of governance, rules for instituting changes are encoded into the blockchain protocol. Developers propose changes through code updates and each node votes on whether to accept or reject the proposed change.",investopedia,1,55.54,9.4,13,15.6,13.9,11.81,10.83333333,13.09
On-the-Run Treasury,"On-the-run Treasuries are the most recently issued U.S. Treasury bonds or notes of a particular maturity. On-the-run Treasuries are the opposite of ""off-the-run"" Treasuries, which refer to Treasury securities that have been issued before the most recent issue and are still outstanding. Media mentions about Treasury yields and prices generally reference on-the-run Treasuries.",investopedia,1,49.52,9.7,11.2,15.65,14.1,10.85,7.625,11.36
On-the-Run Treasury Yield Curve,The on-the-run Treasury yield curve graphically shows the current yields versus maturities of the most recently sold U.S. Treasury securities and is the primary benchmark used in pricing fixed-income securities.,investopedia,1,39.33,11.5,0,16.17,14.7,12.8,11,12.67
On-Us Item,"An on-us item is a check or draft that is presented to the bank where the check writer has the funds on deposit, as opposed to the depositor's bank (although in some cases both check writer and depositor may happen to use the same bank). The check can then be cashed or deposited into another account.",investopedia,1,59.98,11.8,0,7.78,13.2,8.41,16.5,14.06
One Bank Holding Company,A bank holding company is a corporation that owns a controlling interest in one or more banks but does not itself offer banking services.,investopedia,1,47.12,12.7,0,10.33,12.9,10.09,16,14.6
One Belt One Road (OBOR),"One Belt One Road (OBOR), the brainchild of Chinese President Xi Jinping, is an ambitious economic development and commercial project that focuses on improving connectivity and cooperation among multiple countries spread across the continents of Asia, Africa, and Europe. Dubbed as the “Project of the Century” by the Chinese authorities, OBOR spans about 78 countries.",investopedia,1,35.1,15.2,0,15.5,19.4,12.46,20.25,20.45
One-Cancels-the-Other Order (OCO),"A one-cancels-the-other order (OCO) is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached and the order executed, the other order automatically gets canceled. Experienced traders use OCO orders to mitigate risk and to enter the market.",investopedia,1,36.28,12.7,12.2,11.42,11.8,8.7,11.5,11.64
One-Child Policy,"The one-child policy was a rule implemented by the Chinese government as a method of controlling the population mandating that the vast majority of couples in the country could only have one child. This was intended to alleviate the social, economic, and environmental problems associated with the country's rapidly growing population. The rule was introduced in 1979 and phased out in 2015.",investopedia,1,42,12.5,15.5,13.23,14.2,10.52,15,16.02
One Percent Rule,"The one percent rule, sometimes stylized as the ""1% rule,"" is used to determine if the monthly rent earned from a piece of investment property will exceed that property's monthly mortgage payment. The goal of the rule is to ensure that the rent will be greater than or—at worst—equal to the mortgage payment, so the investor at least breaks even on the property.",investopedia,1,56.42,13.2,0,10.11,16.7,8.96,18.25,15.14
One-Stop Shop,"A one-stop shop is a firm that offers a multitude of products or services to its customers, all under one roof, so to speak. A one-stop-shop can refer to a literal roof—a specific physical location where all the business a client has can be carried out—or it can refer to a company that handles a variety of goods or services.",investopedia,1,49.49,13.8,0,8.43,14.5,9.07,19,16
One-Tailed Test,"A one-tailed test is a statistical test in which the critical area of a distribution is one-sided so that it is either greater than or less than a certain value, but not both. If the sample being tested falls into the one-sided critical area, the alternative hypothesis will be accepted instead of the null hypothesis.",investopedia,1,43.56,14,0,10.22,15,9.02,17.75,15.36
One-Third Rule,The one-third rule estimates change in labor productivity based on changes in capital devoted to labor. The rule is used to determine the impact that changes in technology or capital have on production.,investopedia,1,46.27,10.9,0,11.77,11.1,9.24,12.25,13.87
One-Time Charge,"A one-time charge, in corporate accounting, is a charge against a company's earnings that the company's managers expect to be an isolated event and is unlikely to occur again. A one-time charge can either be a cash charge against earnings such as the cost of paying severance expenses to laid-off former employees or a non-cash charge such as the writing down of the value of assets such as a piece of real estate whose market value has fallen due to changes in business fundamentals or consumer preferences.",investopedia,1,35.78,19.1,0,11.22,23.3,9.79,27.25,22
One-Time Item,"A one-time item is a gain, loss, or expense on the income statement that is nonrecurring in nature and therefore not considered part of a company's ongoing business operations. To get an accurate gauge of a company's operating performance, one-time items are usually excluded by analysts and investors while evaluating a company. Although many one-time items hurt earnings or profit, there are one-time items that add to earnings in the reporting period.",investopedia,1,38.66,13.8,16.3,12.83,15.6,10.31,17.33333333,17.38
One-Touch Option,A one-touch option pays a premium to the holder of the option if the spot rate reaches the strike price at any time prior to option expiration.,investopedia,1,60.99,11.5,0,7.72,12.5,9.07,15.5,13.76
OneCoin,"OneCoin was a cryptocurrency-based Ponzi scheme. The companies behind the scheme was OneCoin Ltd. and OneLife Network Ltd., founded by Bulgarian national Ruja Ignatova, who disappeared in 2017. However, not before the scheme raised $4 billion.",investopedia,1,50.84,9.2,11.9,13.73,11.8,12.57,7.333333333,11.47
Onerous Contract,An onerous contract is an accounting term that refers to a contract that will cost a company more to fulfill than what the company will receive in return.,investopedia,1,59.98,11.8,0,9.12,14,7.84,17,12.63
Online Banking,Online banking allows a user to conduct financial transactions via the Internet. Online banking is also known as Internet banking or web banking.,investopedia,1,42.88,10.1,0,12.04,9.5,10.39,6.75,9.82
Online Shoplifting,"Online shoplifting is the theft of goods from an Internet-based merchant. Online shoplifting might seem harmless since the shoplifter never interacts with the victim and executes the fraud with a few keystrokes and mouse clicks. It is a crime nonetheless, and online shoplifters can face serious legal problems, such as charges of mail fraud.",investopedia,1,70.13,8,10.5,12.82,12.8,10.67,10.66666667,10.9
Online-To-Offline Commerce,"Online-to-offline (O2O) commerce is a business strategy that draws potential customers from online channels to make purchases in physical stores. Online-to-offline (O2O) commerce identifies customers in the online space, such as through emails and Internet advertising, and then uses a variety of tools and approaches to entice the customers to leave the online space. This type of strategy incorporates techniques used in online marketing with those used in brick-and-mortar marketing.",investopedia,1,39.37,13.6,16.3,16.31,18.3,10.66,17,15.61
Ontario Securities Commission (OSC),"The Ontario Securities Commission (OSC) is the largest securities regulator in Canada, enforcing securities laws in the province of Ontario. As a crown corporation, the OSC is answerable to the provincial government of Ontario.",investopedia,1,28.84,13.5,0,14.5,14,10.52,13.5,15.04
Ontario Teachers' Pension Plan Board (OTPPB),The Ontario Teachers’ Pension Plan Board (OTPPB) oversees the retirement plan that was established for the benefit of public school teachers in Ontario.,investopedia,1,48.13,12.3,0,15.03,16.7,10.96,15.5,16.16
Opaque Pricing,"Opaque pricing is a way that companies can sell their merchandise at hidden, lower prices. Opaque pricing is a type of price discrimination, with the target customer being the one who will purchase a product or service primarily based on price (price-conscious customer)—and not based on the company’s amenities, reputation, etc.",investopedia,1,45.59,13.2,0,13.81,17.2,10.47,16.25,14.91
Opco,"Opco is the abbreviation for ""operating company,"" typically used when describing the primary operating company involved in an opco/propco deal, which is the most common structure for spinning off a real estate investment trust (REIT).",investopedia,1,2.11,21.7,0,15.15,23,11.69,27.5,20.86
Operating Company/Property Company Deal (OPCO or PROPCO),"An operating company/property operating company (opco/propco) deal is a business arrangement in which a subsidiary company (i.e., the property company or ""propco"") owns all of the revenue-generating properties instead of the main company (operating company or ""opco"").",investopedia,1,-8.39,23.6,0,17.01,26.6,10.59,32.5,20.21
OPEC Basket,"The OPEC Basket is a weighted average of oil prices from the different OPEC members around the world. Members of the Organization of the Petroleum Exporting Countries (OPEC) contribute data that forms the basis of the basket. The basket is a benchmark, or reference point, for those monitoring the oil price and the stability of the global oil market.",investopedia,1,51.48,11,13,10.85,11.8,9.43,12.83333333,13.3
Open,"The term ""open"" appears in several usages in the financial markets. However, there are two that hold particular significance, depending on the context in which they are used.",investopedia,1,57.27,8.8,0,11.36,10.3,8.84,9,11.31
Open Architecture,"Open architecture is used to describe a financial institution's ability to offer clients both proprietary and external products and services. Open architecture ensures that a client can satisfy all their financial needs and that the investment firm can act in each client’s best interests by recommending the financial products best suited to that client, even if they are not proprietary products. Open architecture helps investment firms avoid the conflict of interest that would exist if the firm only recommended its own products.",investopedia,1,35.31,15.1,17.1,14.68,18.2,10,19.66666667,16.77
Open Banking,"Open banking is also known as ""open bank data."" Open banking is a banking practice that provides third-party financial service providers open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs). Open banking will allow the networking of accounts and data across institutions for use by consumers, financial institutions, and third-party service providers. Open banking is becoming a major source of innovation that is poised to reshape the banking industry.",investopedia,1,33.24,13.8,14.9,15.95,16.9,9.19,14.75,12.69
Open Cover,"Open cover is a type of marine insurance policy in which the insurer agrees to provide coverage for all cargo shipped during the policy period. Open cover insurance is most commonly purchased by companies that make frequent shipments, as the blanket coverage keeps them from having to purchase a new policy each time a shipment is made.",investopedia,1,42.55,14.4,0,11.2,15.9,10.31,19.75,16.31
Open-End Credit,Open-end credit is a preapproved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due.,investopedia,1,29.52,17.3,0,11.79,18.5,10.06,21.5,19.26
Open-End Fund,"An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily, based on their current net asset value (NAV). Some mutual funds, hedge funds, and exchange-traded funds (ETFs) are types of open-end funds.",investopedia,1,64.91,7.9,10.1,10.72,10.3,10.79,7.875,9.31
Open-End Lease,"An open-end lease is a type of rental agreement that obliges the lessee (the person making periodic lease payments) to make a balloon payment at the end of the lease agreement amounting to the difference between the residual and fair market value of the asset. Open-end leases are also called ""finance leases.""",investopedia,1,53.55,12.3,0,11.03,15,9.18,14.5,11.94
Open-End Management Company,An open-end management company is a type of investment company responsible for the management of open-end funds. Open-end management companies manage both open-end mutual funds and exchange-traded funds (ETFs).,investopedia,1,31.38,12.5,0,16.75,15.4,9.8,12.25,12.7
Open-End Mortgage,An open-end mortgage is a type of mortgage that allows the borrower to increase the amount of the mortgage principal outstanding at a later time. Open-end mortgages permit the borrower to go back to the lender and borrow more money. There is usually a set dollar limit on the additional amount that can be borrowed.,investopedia,1,61.36,9.2,11.2,9.69,10.1,8.85,11.16666667,10.96
Open Ended Investment Company (OEIC),"An open-ended investment company (OEIC) is a type of investment fund domiciled in the United Kingdom that is structured to invest in stocks and other securities. The company's shares list on the London Stock Exchange (LSE) and the price of the shares are based largely on the underlying assets of the fund. These funds can mix different types of investment strategies such as income and growth, and small cap and large cap, and can constantly adjust their investment criteria and fund size.",investopedia,1,52.23,12.8,14.6,11.15,15.7,9.8,17.66666667,13.85
Open House,"In real estate, an open house is a scheduled time when a house or other dwelling is designated to be available for viewing by potential buyers. Usually, the owners or renters vacate the house when the broker holds an open house.",investopedia,1,67.59,8.9,0,8.76,10.4,10.05,11.75,11.13
Open Kimono,"Open kimono means to reveal what is being planned or to share important information freely. Similar to ''open the books'' or an ""open door policy,"" opening the kimono means revealing the inner workings of a project or company to an outside party. The offensive term is also referred to as ""opening (up) one's kimono.""",investopedia,1,61.67,9.1,11.9,9.16,10.6,9.5,11.33333333,10.9
Open Listing,"In real estate, an open listing has two meanings. Open listing can refer to a property for sale whose owner is using multiple real estate agents in order to find as many potential buyers as possible. The agent who brings in the winning buyer for the property collects the commission.",investopedia,1,62.98,8.6,11.2,9.1,8.9,9.52,10.33333333,9.88
Open Loop Card,"An open loop card is a general-purpose charge card that can be used anywhere that brand of card is accepted. It usually bears the logo of the card brand or network (which processes the actual transactions), such as Visa, MasterCard, American Express, or Discover. In the case of cards offered through financial institutions, like Visas or MasterCards, it often shows the name of the issuing bank or credit union as well.",investopedia,1,55.88,11.4,15,10.62,13.6,9.93,16.16666667,15.11
Open Market,"An open market is an economic system with little to no barriers to free-market activity. An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization, and any other regulations or practices that interfere with free-market activity. Open markets may have competitive barriers to entry, but never any regulatory barriers to entry.",investopedia,1,27.11,14.1,15.9,15.37,15.3,9.92,14.33333333,16.05
Open Market Operations,Open market operations (OMO) refers to Federal Reserve (Fed) practice of buying and selling primarily U.S. Treasury securities on the open market in order to regulate the supply of money that is on reserve in U.S. banks. This supply is what's available to loan out to businesses and consumers. It purchases Treasury securities to increase the supply of money and sells them to reduce the supply of money.,investopedia,1,54.22,9.9,11.2,10.15,10.4,9.82,10.5,10.92
Open-Market Rate,"The open-market rate is the rate of interest paid on any debt security that trades in the open market. Interest rates for such debt instruments as commercial paper and banker's acceptances would fall under the category of open-market rates. Debt securities include government bonds, corporate bonds, certificate of deposit (CD), municipal bonds and preferred stock.",investopedia,1,35.1,15.2,0,14.97,19.2,10.17,13.83333333,18.27
Open-Market Transaction,"An open-market transaction is an order placed by an insider, after all of the appropriate documentation has been filed with the Securities and Exchange Commission (SEC), to buy or sell restricted securities openly on an exchange.",investopedia,1,18.02,19.7,0,13.59,22,10.25,27,22.18
Open Mouth Operations,"Open mouth operations are speculative statements made by the Federal Reserve System (FRS) to influence interest rates and inflation. Open mouth operations are the announcements by the Fed, also known as the central bank when it informs exchanges where the preferred interest rates should be, and not the action of the sale or purchase of U.S. Treasury securities.",investopedia,1,12.61,25.9,0,14.12,33,12.5,19.5,28.72
Open Order,"An open order is an un-filled, or working order that is to be executed when an, as yet, unmet requirement has been met before it is cancelled by the customer or expires. The customer has the flexibility to place an order to buy or sell a security that remains in effect until their specified condition has been satisfied.",investopedia,1,42.04,14.6,0,9.12,14.5,9.16,18,16.43
Open Position,"An open position in investing is any established or entered trade that has yet to close with an opposing trade. An open position can exist following a buy, a long position, a sell, or a short position. In any case, the position remains open until an opposing trade takes place.",investopedia,1,62.98,8.6,13.6,8.64,8.9,6.99,11.66666667,9.88
Open Source,"Open source refers to a software program or platform with source code that is readily accessible and which can be modified or enhanced by anyone. Open source access grants users of an application permission to fix broken links, enhance the design, or improve the original code.",investopedia,1,56.59,11.1,0,11.78,13.8,10.96,14.5,14.42
Open Trade Equity (OTE),"Open Trade Equity (OTE) is the net of unrealized gain or loss on open derivatives positions. Put differently, OTE is the paper gains and losses represented by the current market value and the price paid (or received) for a position. Once the position is closed, the gain or loss will become realized.",investopedia,1,53.92,10,13,9.22,9.8,8.75,11.66666667,13.07
Opening Bell,"The opening bell refers to the moment a securities exchange opens for its normal daily trading session. The time and conditions of the opening bell differ from one exchange to another. Since 1985, the New York Stock Exchange (NYSE) has used the opening bell to start its trading session at 9:30 a.m. Eastern time. At the NYSE there is a physical bell and an automated ringer that sounds at the beginning of each trading day. On the Nasdaq exchange, where this is no physical trading floor, the opening of the market is referred to as the opening bell, but it is symbolic in significance.",investopedia,1,67.28,9,10.8,8.94,10.9,8.16,11.4,10.63
Opening Cross,The opening cross is a method the Nasdaq uses to determine the opening price for an individual share of the stocks that trade on its exchange. This method accumulates data on the buy and sell interest among market participants for a particular security two minutes before the market opens. The Nasdaq makes this information available to all investors.,investopedia,1,51.89,10.8,12.5,11.89,12.2,9.77,12.33333333,13.24
Opening Imbalance Only Order (OIO),Opening Imbalance Only Orders (OIO) are a type of limit order that provides liquidity during the opening cross on the Nasdaq. A limit order is an order placed with a brokerage to execute a buy or sell transaction at a set number of shares and a specified limit price.,investopedia,1,30.2,21.2,0,9.19,24.2,10.9,15.25,24.5
Opening Price,"The opening price is the price at which a security first trades upon the opening of an exchange on a trading day; for example, the New York Stock Exchange (NYSE) opens at precisely 9:30 a.m. Eastern time. The price of the first trade for any listed stock is its daily opening price. The opening price is an important marker for that day's trading activity, particularly for those interested in measuring short-term results such as day traders.",investopedia,1,54.26,12,12.5,10.1,14,9.05,15.33333333,13.28
Opening Range,The opening range shows a security's high and low price of a given period after the market opens. Day traders monitor a stock's opening range because it can provide an indication of sentiment and price trend for the day.,investopedia,1,60.14,9.7,0,9.17,10.3,9.87,12.25,12.93
Operating Activities,"Operating activities are the functions of a business directly related to providing its goods and/or services to the market. These are the company's core business activities, such as manufacturing, distributing, marketing, and selling a product or service. Operating activities will generally provide the majority of a company’s cash flow and largely determine whether it is profitable. Some common operating activities include cash receipts from goods sold, payments to employees, taxes, and payments to suppliers. These activities can be found on a company's financial statements and in particular the income statement and cash flow statement.",investopedia,1,27.01,14.2,15.6,15.78,15.6,10.11,14.2,14.75
Operating Cash Flow (OCF),"Operating cash flow (OCF) is a measure of the amount of cash generated by a company's normal business operations. Operating cash flow indicates whether a company can generate sufficient positive cash flow to maintain and grow its operations, otherwise, it may require external financing for capital expansion.",investopedia,1,22.24,16,0,14.63,16.7,10.18,19.75,18.76
Operating Cash Flow Demand (OCFD),"The term operating cash flow demand (OCFD) refers to the amount of operating cash flow an entity needs in order to meet the objectives of its strategic investments. An OCFD is integral for both investors and corporate entities. For investors, it represents the total amount of capital required in order to the desired return over the entire life of the investment. A company's OCFD, on the other hand, is used to compute the cash value added to a company's strategic investments and operations. The OCFD allows entities to make smart decisions about how they spend their money on certain investments.",investopedia,1,51.18,11.1,14,11.14,12.2,8.58,13.6,12.8
Operating Cash Flow Margin,"Operating cash flow margin is a cash flow ratio which measures cash from operating activities as a percentage of sales revenue in a given period. Like operating margin, it is a trusted metric of a company’s profitability and efficiency and its earnings quality.",investopedia,1,32.73,14,0,11.84,13.3,10.58,15.75,16.04
Operating Cash Flow Ratio,The operating cash flow ratio is a measure of how readily current liabilities are covered by the cash flows generated from a company's operations. This ratio can help gauge a company's liquidity in the short term.,investopedia,1,36.28,12.7,0,10.44,10.8,9.79,13,14.98
Operating Cost,"Operating costs are associated with the maintenance and administration of a business on a day-to-day basis. Operating costs include direct costs of goods sold (COGS) and other operating expenses—often called selling, general, and administrative (SG&A)—which includes rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses. Operating costs exclude non-operating expenses related to financing, such as interest, investments, or foreign currency translation.",investopedia,1,15.31,16.6,18.6,18.51,19.9,10.71,18.33333333,16.68
Operating Earnings,"Operating earnings is a corporate finance and accounting term that isolates the profits realized from a business's core operations. Specifically, it refers to the amount of profit realized from revenues after you subtract those expenses that are directly associated with running the business, such as the cost of goods sold (COGS), general and administration (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs.",investopedia,1,12.09,19.9,0,16.66,23.4,11.9,25.25,21.16
Operating Expense,"An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.",investopedia,1,10.4,16.4,0,18.33,18,12.66,14.25,17.13
Operating Expense Ratio,"In real estate, the operating expense ratio (OER) is a measurement of the cost to operate a piece of property, compared to the income brought in by the property. It is calculated by dividing a property's operating expense (minus depreciation) by its gross operating income.",investopedia,1,31.72,14.4,0,11.38,13.8,10.02,16.75,16.11
Operating Income,"Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).",investopedia,1,23.09,17.7,0,15.85,21.6,11.29,23.5,21.43
Operating Income Before Depreciation and Amortization (OIBDA),"Operating income before depreciation and amortization (OIBDA) is a measure of financial performance used by companies to show profitability in their core business activities. OIBDA excludes the effects of capital spending on fixed assets, such as equipment, and the interest expense of carrying debt.",investopedia,1,23.77,15.4,0,15.78,17.1,11.9,16.5,17.89
Operating Lease,An operating lease is a contract that allows for the use of an asset but does not convey ownership rights of the asset.,investopedia,1,65.05,9.9,0,7.2,9.9,10.27,13.5,12.68
Operating Leverage,Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.,investopedia,1,50.67,11.3,0,13.87,14.4,11.2,13.75,13.08
Operating Loss (OL),"An operating loss occurs when a company's operating expenses exceed gross profits (or revenues in the case of a service-oriented company). An operating loss does not consider the effects of interest income, interest expense, extraordinary gains or losses, or income or losses from equity investments or taxes. These items are ""below the line,"" meaning they are added or subtracted after the operating loss (or income, if positive) to arrive at net income. If there is an operating loss, there is usually a net income loss unless an extraordinary gain (e.g., sale of an asset) was recorded during the accounting period.",investopedia,1,29.18,15.4,16.2,11.78,15.5,9.77,17.75,15.6
Operating Margin,"Operating margin measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a company’s operating income by its net sales. Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.",investopedia,1,31.92,14.3,15.5,11.78,13.5,10.4,15.83333333,15.49
Operating Profit,"A company's operating profit is its total earnings from its core business functions for a given period, excluding the deduction of interest and taxes. It also excludes any profits earned from ancillary investments, such as earnings from other businesses that a company has a part interest in.",investopedia,1,39.16,13.6,0,12.77,15,10.85,17.25,17.06
Operating Ratio (OPEX),"The operating ratio shows the efficiency of a company's management by comparing the total operating expense (OPEX) of a company to net sales. The operating ratio shows how efficient a company's management is at keeping costs low while generating revenue or sales. The smaller the ratio, the more efficient the company is at generating revenue vs. total expenses.",investopedia,1,34.97,13.2,16.3,12.3,13,9.77,15,13.24
Operating Revenue,Operating revenue is the revenue that a company generates from its primary business activities.,investopedia,1,14.97,14.7,0,15.71,13.2,9.97,12,17.03
Operation Twist,Operation Twist is a Federal Reserve (Fed) monetary policy initiative used in the past to lower long-term interest rates to further stimulate the U.S. economy when traditional monetary tools were lacking via the timed purchase and sale of U.S. Treasuries of different maturities.,investopedia,1,32.73,14,0,13.63,15.3,12.78,16.75,17.9
Operational Efficiency,"Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operating costs. The greater the operational efficiency, the more profitable a firm or investment is. This is because the entity is able to generate greater income or returns for the same or lower cost than an alternative.",investopedia,1,35.61,15,0,12.42,16.3,10.53,12.66666667,16.73
Operational Risk,"Operational risk summarizes the uncertainties and hazards a company faces when it attempts to do its day-to-day business activities within a given field or industry. A type of business risk, it can result from breakdowns in internal procedures, people and systems—as opposed to problems incurred from external forces, such as political or economic events, or inherent to the entire market or market segment, known as systematic risk.",investopedia,1,20.55,18.7,0,14.28,21.1,11.9,24.25,20.56
Operational Target,"The operating target or operational target is a specific interest rate or other financial metric that a central bank chooses as its primary intermediate target to guide open market operations and other monetary policy. The central bank sets a specific target rate or number for it’s operating target, and then executes policy to loosen or tighten credit and monetary conditions to achieve and maintain the target at the specified rate or level.",investopedia,1,18.02,19.7,0,13.12,21,10.69,26.5,21.62
Operations Management,Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.,investopedia,1,17.34,15.8,16.3,16.24,16.2,11.21,15.33333333,14.67
Oprah Effect,"The Oprah Effect refers to the boost in sales that followed an endorsement on The Oprah Winfrey Show, which aired on TV for 25 years. A recommendation from Oprah, the queen of talk shows, turned many fashion and lifestyle products into multimillion-dollar companies.",investopedia,1,58.11,10.5,0,12.13,13.9,11.68,12.75,12.32
Optimal Capital Structure,"The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of capital. In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost.",investopedia,1,42.72,12.3,16.5,10.91,11.9,9.17,15.5,15
Optimal Currency Area,"An optimal currency area (OCA) is the geographic area in which a single currency would create the greatest economic benefit. While traditionally each country has maintained its own separate national currency, work by Robert Mundell in the 1960s theorized that this might not be the most efficient economic arrangement.",investopedia,1,38.15,14,0,14.39,16.8,10.65,19.25,17.96
Optimization,Optimization is the process of making a trading system more effective by adjusting the variables used for technical analysis.,investopedia,1,35.27,13.1,0,15.08,14.6,12.06,14.5,18.13
Optimized Portfolio As Listed Securities (OPALS),Optimized portfolio as listed securities is a single-country equity index that contains fewer holdings than the benchmarked index. Optimized portfolio as listed securities was created by Morgan Stanley in 1994. It is seen as a predecessor to the popularity of exchange-traded funds.,investopedia,1,23.43,13.5,14.6,14.72,12.6,11.1,11,12.27
Optimum Currency Area (OCA) Theory,"Optimum currency area theory (OCA) states that specific areas not bounded by national borders would benefit from a common currency. In other words, geographic regions may be better off using the same currency instead of each country within that geographic region using its own currency.",investopedia,1,31.72,14.4,0,13.58,15.2,11.07,16.75,15.22
Option Adjustable-Rate Mortgage (Option ARM),"An option adjustable-rate mortgage (option ARM) is a type of ARM mortgage where the borrower has several options as to which type of payment is made to the lender. In addition to having the choice of making payments of interest and principal that amounts to those made in conventional mortgages, option ARMs also have alternative payment options where the mortgagor can make significantly smaller payments by making interest-only payments or minimum payments.",investopedia,1,26.48,18.5,0,13.99,22,9.81,23.5,18.84
Option-Adjusted Spread (OAS),"The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate and the risk-free rate of return, which is then adjusted to take into account an embedded option. Typically, an analyst uses Treasury yields for the risk-free rate. The spread is added to the fixed-income security price to make the risk-free bond price the same as the bond.",investopedia,1,58.92,10.2,13.6,10.62,12.5,8.48,13.66666667,12.15
Option Agreement,An option agreement is a legally binding contract between two entities outlining each counterparty's responsibilities to the other.,investopedia,1,10.91,16.2,0,18.5,17.4,12.42,13,16.09
Option Chain,"An options chain, also known as an option matrix, is a listing of all available options contracts for a given security. It shows all listed puts, calls, their expiration, strike prices, and volume and pricing information for a single underlying asset within a given maturity period. The chain will typically be categorized by expiration date and segmented by calls vs. puts.",investopedia,1,42.41,12.4,13.6,11.72,13,11.37,13.5,14.02
Option Cycle,Option cycle refers to the expiration dates that apply to the different classes of options. A newly listed option is assigned a cycle randomly to broadly distribute options across varying time frames. It is also known as an expiration cycle.,investopedia,1,49.52,9.7,10.5,10.66,9,10.61,7.333333333,8.32
Option Disclosure Document,The options disclosure document (ODD) is a publication issued by the Options Clearing Corporation (OCC) that serves as an important guide for options traders. The comprehensive document—formally titled Characteristics and Risks of Standardized Options—is particularly essential for novice options traders.,investopedia,1,8.88,17,0,20.71,20.1,12.13,16,18
Option Margin,Option margin is the cash or securities an investor must deposit in their account as collateral before writing—or selling—options. Margin requirements are established by the Federal Reserve Board in Regulation T and vary based on the type of option.,investopedia,1,23.43,19.7,0,14.52,23.7,12.05,13.25,21.75
Option Pool,"An option pool consists of shares of stock reserved for employees of a private company. The option pool is a way of attracting talented employees to a startup company—if the employees help the company do well enough to go public, they will be compensated with stock. Employees who get into the startup early will usually receive a greater percentage of the option pool than employees who arrive later.",investopedia,1,48.43,12.1,15,11.15,13,8.01,15.66666667,12.61
Option Premium,An option premium is the current market price of an option contract. It is thus the income received by the seller (writer) of an option contract to another party. In-the-money option premiums are composed of two factors: intrinsic and extrinsic value. Out-of-the-money options' premiums consist solely of extrinsic value.,investopedia,1,42.07,10.4,11.2,12.63,10.9,9.4,7.125,8.19
Option Pricing Theory,"Option pricing theory estimates a value of an options contract by assigning a price, known as a premium, based on the calculated probability that the contract will finish in the money (ITM) at expiration. Essentially, option pricing theory provides an evaluation of an option's fair value, which traders incorporate into their strategies.",investopedia,1,28.17,15.8,0,14.05,17.6,11,18.5,18.09
Optionable Stock,"An optionable stock is one where the stock has the necessary liquidity such that a market maker, like a bank or an accredited financial institution, lists that stock's options for trading.",investopedia,1,40.01,15.4,0,12.14,18.1,10.78,21.5,20.14
Options,"Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they choose not to.",investopedia,1,44.03,11.8,12.5,11.72,11.8,9.64,12,12.48
Options Backdating,"Options backdating is the process of granting an employee stock option (ESO) that is dated before its actual issuance. In this way, the exercise (strike) price of the granted option can be set at a lower price than that of the company's stock price at the granting date. This process makes the granted option ""in the money"" (ITM) and therefore of greater value to the holder.",investopedia,1,66.07,9.5,10.5,8.82,11.7,9.27,12.66666667,11.83
Options Clearing Corporation (OCC),"The Options Clearing Corporation (OCC) is an organization that acts as both the issuer and guarantor for options and futures contracts. The largest equity derivatives clearing organization in the world, it operates under the jurisdiction of the Commodities Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC).",investopedia,1,29.14,13.3,14.6,15.48,14.8,11.41,12.33333333,14.68
Options Contract,"An options contract is an agreement between two parties to facilitate a potential transaction on the underlying security at a preset price, referred to as the strike price, prior to the expiration date.",investopedia,1,29.52,17.3,0,12.66,19.3,11.97,22.5,20.47
Options Industry Council (OIC),"The term Options Industry Council (OIC) refers to a cooperative that helps educate investors and financial advisers about the benefits and risks of exchange-traded equity options. The organization was established in 1992 by U.S. options exchanges and the Options Clearing Corporation (OCC). Its mission is to increase awareness of these options among investors through education and practical knowledge. The OIC is sponsored by a variety of corporations, including the International Securities Exchange (ISE).",investopedia,1,27.52,14,15.2,16.3,15.9,12.55,13.625,16.64
Options on Futures,"An option on a futures contract gives the holder the right, but not the obligation, to buy or sell a specific futures contract at a strike price on or before the option's expiration date. These work similarly to stock options, but differ in that the underlying security is a futures contract.",investopedia,1,54.05,12.1,0,9.87,13.7,9.24,15.75,14.91
Options Price Reporting Authority (OPRA),The Options Price Reporting Authority (OPRA) is a committee of representatives from participating securities exchanges responsible for providing last-sale options quotations and information from the participating exchanges.,investopedia,1,-23.62,23.3,0,24.49,26.5,12.58,24.5,25.61
Oracle of Omaha,"The Oracle of Omaha is a nickname for Warren Buffett, who is arguably one of the greatest investors of all time. Buffett is the chair and CEO of Berkshire Hathaway, a company that he became the controlling shareholder of in the mid-1960s.",investopedia,1,58.62,10.3,0,9.23,11.2,10.32,13,12.21
Oral Contract,"An oral contract is a type of business contract that is outlined and agreed to via spoken communication, but not written down. Although it can be difficult to prove the terms of an oral contract in the event of a breach, this type of contract is legally binding. Oral contracts are often mistakenly referred to as verbal contracts, but a verbal contract is really any contract since all contracts are created using language.",investopedia,1,55.27,11.6,10.5,10.51,13.4,9.38,13.83333333,11.91
Orange Book,"The Orange Book is a list of drugs and pharmaceuticals that the U.S. Food and Drug Administration (FDA) has approved as both safe and effective. Although it is commonly called the Orange Book, its formal name is Approved Drug Products with Therapeutic Equivalence Evaluations.",investopedia,1,56.55,9,11.9,11.94,10.9,10.47,8.666666667,12.24
Order,"An order consists of instructions to a broker or brokerage firm to purchase or sell a security on an investor's behalf. An order is the fundamental trading unit of a securities market. Orders are typically placed over the phone or online through a trading platform, although orders may increasingly be placed through automated trading systems and algorithms. Once an order is placed, it follows a process of order execution.",investopedia,1,45.46,11.2,12.2,11.77,11.5,10.22,11.125,12.72
Order Audit Trail System (OATS),"The Order Audit Trail System (OATS) is an automated computer system established by the Financial Industry Regulatory Authority (FINRA). It is used to record information relating to orders, quotes, and other related trade data from all equities traded on the National Market System (NMS), including over-the-counter (OTC) stocks. This system simplifies an order's progression from the initial receipt of the order to its eventual execution or cancellation, for easy tracking or auditing purposes.",investopedia,1,21.43,16.3,18.2,15.21,18,12.41,19.16666667,20.68
Order Book,"The term order book refers to an electronic list of buy and sell orders for a specific security or financial instrument organized by price level. An order book lists the number of shares being bid on or offered at each price point, or market depth. It also identifies the market participants behind the buy and sell orders, though some choose to remain anonymous. These lists help traders and also improve market transparency because they provide valuable trading information.",investopedia,1,60.14,9.7,12.2,12.01,12.5,8.65,12.25,12.93
Order Driven Market,"An order-driven market is a financial market where all buyers and sellers display the prices at which they wish to buy or sell a particular security, as well as the amounts of the security desired to be bought or sold. This kind of trading environment is the opposite of a quote-driven market, which only displays bids and asks of designated market makers and specialists for the specific security that is being traded.",investopedia,1,34.94,17.3,0,10.92,19.4,10.03,24,18.84
Order Imbalance,"Order imbalance is a situation resulting from an excess of buy or sell orders for a specific security on a trading exchange, making it impossible to match the orders of buyers and sellers. For securities that are overseen by a market maker or specialist, shares may be brought in from a specified reserve to add liquidity, temporarily clearing out excess orders from the inventory so that the trading in the security can resume at an orderly level. Extreme cases of order imbalance may cause suspension of trading until the imbalance is resolved.",investopedia,1,31.85,16.4,16.7,11.62,17.2,9.79,21,17.93
Order Management Systems (OMS),"An order management system (OMS) is an electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use order management systems when filling orders for various types of securities and can track the progress of each order throughout the system. An OMS is also referred to as a ""trade order management system.""",investopedia,1,43.43,12,14.1,13,13.5,10.04,13.33333333,13.24
Order Paper,"An order paper, or order instrument, is a negotiable instrument that is payable to a specified person or its assignee. An instrument such as an order paper is negotiable only if it is payable to the order of a specified person; meaning that it must designate an individual's name to be paid out. It is the opposite of a bearer instrument, which does not require the designation of an individual to be paid out.",investopedia,1,46.4,12.9,15,8.83,12.3,7.64,16.66666667,14.2
Order Protection Rule,"The Order Protection Rule is one of the four main provisions of the Regulation National Market System (NMS). The rule is meant to ensure that investors receive an execution price that is equivalent to what is being quoted on any other exchange where the security is traded. The rule eliminates the possibility of orders being traded through, which means executed at a suboptimal price.",investopedia,1,41.4,12.8,14.1,11.6,13.2,9.38,14.33333333,15.4
Orderly Market,"An orderly market is any market in which supply and demand are reasonably equal. An orderly market is said to be in a state of equilibrium. This term can also refer to a site of exchange for goods, services, or financial securities that are traded in a fair, reliable, secure, accurate, and efficient way. Orderly markets contribute to economic growth.",investopedia,1,56.25,9.1,13,9.5,9.1,9.38,10.5,12.67
Ordinary and Necessary Expense (O&NE),"Ordinary and necessary expenses are expenses incurred by individuals as the cost of owning a business or carrying on a trade. ""Ordinary and necessary"" expenses are categorized as such for income tax purposes, and these expenses are generally considered tax deductible in the year they are incurred.",investopedia,1,6.85,24,0,14.58,27.7,10,37.5,26.46
Ordinary Annuity,"An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an ordinary annuity can be made as frequently as every week, in practice they are generally made monthly, quarterly, semi-annually, or annually. The opposite of an ordinary annuity is an annuity due, in which payments are made at the beginning of each period. These two series of payments are not the same as the financial product known as an annuity, though they are related.",investopedia,1,48.64,12.1,15.9,9.81,12.1,8.09,16.25,14.33
Ordinary Dividends,"Ordinary dividends are a share of a company's profits passed on to the shareholders periodically. One of the primary advantages of owning stocks, also known as equities, is the regular payment of dividend income.",investopedia,1,37.3,12.3,0,12.12,11.8,10.98,13.5,18.56
Ordinary Income,"Ordinary income is any type of income earned by an organization or an individual that is taxable at ordinary rates. It includes (but is not limited to) wages, salaries, tips, bonuses, rents, royalties, and interest income from bonds and commissions.",investopedia,1,42.72,12.3,0,11.72,13.3,11.73,14,15
Ordinary Loss,An ordinary loss is loss realized by a taxpayer when expenses exceed revenues in normal business operations. Ordinary losses are those losses incurred by a taxpayer which are not capital losses. An ordinary loss is fully deductible to offset income thereby reducing the tax owed by a taxpayer.,investopedia,1,46.78,10.7,14.1,12.18,11,9.36,11.66666667,11.4
Ordinary Shares of Stock,"Ordinary shares, also called common shares, are stocks sold on a public exchange. Each share of stock generally gives its owner the right to one vote at a company shareholders' meeting. Unlike in the case of preferred shares, the owner of ordinary shares is not guaranteed a dividend.",investopedia,1,63.7,8.4,11.9,10.21,9.8,8.38,10.33333333,10.57
Organic Growth,"Organic growth is the growth a company achieves by increasing output and enhancing sales internally. This does not include profits or growth attributable to mergers and acquisitions but rather an increase in sales and expansion through the company's own resources. Organic growth stands in contrast to inorganic growth, which is growth related to activities outside a business's own operations.",investopedia,1,43.02,12.2,15.5,15.26,15.3,11.04,14.5,16.02
Organic Reserve Replacement,"Organic reserve replacement is the supply of oil reserves which an oil company acquires through exploration and production, rather than by purchasing a proven reserve. Recoverable reserves are oil and gas reserves which are economically and technically feasible to extract at the existing price of oil, within current economic conditions, operating methods, and government regulations.",investopedia,1,18.18,17.6,0,17.82,21.1,11.6,21.75,21.18
Organic Sales,Organic sales are revenues generated from within a company. Organic sales encompass those streams of revenues that are a direct result of the firm's existing operations as opposed to revenues that have been acquired through the purchase of another company or business unit in the past year. (Acquired businesses are typically integrated within 12 months post-closing.) The sale or disposal of business lines are also netted out of a total sales figure to derive organic sales. Measuring organic sales is important because it can show the amount of growth that's the direct result of a company's business plan or sales strategy.,investopedia,1,37.34,14.3,15.9,12.65,15.8,9.58,17.25,14.87
Organisation of Eastern Caribbean States (OECS),The Organisation of Eastern Caribbean States (OECS) is an intergovernmental organization that promotes economic integration and trade cooperation among its member states in the Eastern Caribbean.,investopedia,1,-5.68,20.5,0,20.25,22.4,10.39,21,21.17
Organisation for Economic Co-operation and Development (OECD),The Organisation for Economic Co-operation and Development (OECD) is a group of 37 member countries that discuss and develop economic and social policy. OECD members are typically democratic countries that support free-market economies.,investopedia,1,4.14,20.9,0,18.98,24.9,13.41,25.5,22.9
Organization of Arab Petroleum Exporting Countries (OAPEC),Organization Of Arab Petroleum Exporting Countries (OAPEC) is an inter-governmental organization based in Kuwait. OAPEC fosters cooperation among its 11-member Arab oil-exporting nations.,investopedia,1,0.58,16,0,22.37,18.9,13.82,8.75,13.3
Organization of the Petroleum Exporting Countries (OPEC),"The term Organization of the Petroleum Exporting Countries (OPEC) refers to a group of 13 of the world’s major oil-exporting nations. OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid. OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries. Countries that belong to OPEC include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela (the five founders), plus the United Arab Emirates, Libya, Algeria, Nigeria, and four other countries.",investopedia,1,22.59,24.1,0,12.38,30.9,12.31,30.5,26.14
Organizational Behavior (OB),Organizational behavior is the academic study of how people interact within groups. The principles of the study of organizational behavior are applied primarily in attempts to make businesses operate more effectively.,investopedia,1,13.44,15.2,0,17.05,14.7,11.03,13.25,17.81
Organizational Chart,"An organizational chart is a diagram that visually conveys a company's internal structure by detailing the roles, responsibilities, and relationships between individuals within an entity. Organizational charts either broadly depict an enterprise company-wide or drill down to a specific department or unit.",investopedia,1,-0.61,18.6,0,18.51,18.8,12.57,18,20.78
Organizational Economics,"Organizational economics is a branch of applied economics that studies the transactions occurring within individual firms, as opposed to the transactions that occur within the greater market.",investopedia,1,10.23,18.5,0,18.05,20.8,11.99,20.5,18.21
Organizational Structure,"An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities.",investopedia,1,30.87,12.7,0,15.19,13.5,11.22,10.5,12.67
Organized Labor,"Organized labor is an association of workers united as a single, representative entity to improve the economic status and working conditions of employees through collective bargaining with company management. Organized labor groups are also known as unions.",investopedia,1,18.86,15.2,0,17.23,16.2,11.38,15.25,18.21
Original Cost,"Original cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation and testing. Original cost can be used to value an asset type, including equipment, real estate and security instruments.",investopedia,1,52.39,10.6,13,12.47,12.7,9.62,12.375,12.85
Original Equipment Manufacturer (OEM),"An original equipment manufacturer (OEM) traditionally is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users.",investopedia,1,31.55,16.6,0,13.41,19.1,11.29,22.5,17.56
Original Face,Original face is the par value of a mortgage-backed security (MBS) at the time it is issued. An MBS is an investment that contains a number of mortgage home loans from various banks in which investors earn income from those loans.,investopedia,1,67.59,8.9,0,9.34,11,9.66,12.75,12.1
Original Issue Discount (OID),An original issue discount (OID) is the discount in price from a bond's face value at the time a bond or other debt instrument is first issued. Bonds can be issued at a price lower than their face value—known as a discount. The OID is the amount of discount or the difference between the original face value and the price paid for the bond.,investopedia,1,75.24,8.1,10.5,7.25,9.6,7.41,12.33333333,9.77
Origination,Origination is the multi-step process that every individual must go through to obtain a mortgage or home loan. The term also applies to other types of amortized personal loans. Origination is often a lengthy process and it's overseen by the Federal Deposit Insurance Corporation (FDIC) for compliance with Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act.,investopedia,1,51.18,11.1,13.6,13.05,13.9,10.94,13.33333333,13.33
Origination Fee,"A mortgage origination fee is an upfront fee charged by a lender to process a new loan application. The fee is compensation for executing the loan. Loan origination fees are quoted as a percentage of the total loan, and they are generally between 0.5% and 1% of a mortgage loan in the United States.",investopedia,1,61.67,9.1,11.9,8.12,9,9.79,11.33333333,11.64
Origination Points,"Origination is a step-by-step process that every borrower must complete to obtain a mortgage or home loan. Meanwhile, origination points represent the fees that borrowers pay to lenders or loan officers to compensate for evaluating, processing, and approving mortgage loans. They represent a way to pay closing costs and these fees are negotiable among lenders.",investopedia,1,44.44,11.6,14.6,14.33,14.1,10.57,13.16666667,14.59
Orphan Block,"In terms of cryptocurrencies, orphan blocks, sometimes referred to as stale blocks, are blocks that are not accepted into the blockchain network due to a time lag in the reporting of the block in question to the network of miners, as compared to a qualifying block.",investopedia,1,41.71,18.9,0,10.69,24.1,10.72,27,21.88
Orphan Drug Credit,The orphan drug credit is a federal tax credit that gives pharmaceutical companies incentives to develop medications and treatments for rare diseases that affect small populations. The credit is designed to help pharmaceutical companies lower their developmental costs.,investopedia,1,26.81,14.2,0,17.98,16.9,12.47,14.5,16.02
Oscillator,"An oscillator is a technical analysis tool that constructs high and low bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions. When the value of the oscillator approaches the upper extreme value, technical analysts interpret that information to mean that the asset is overbought, and as it approaches the lower extreme, technicians consider the asset to be oversold.",investopedia,1,36.93,14.5,16.7,14.8,17.7,10.04,18.5,16.51
Oscillator of a Moving Average (OsMA),OsMA is an abbreviation for the term oscillator of a moving average (MA). The OsMA is a technical indicator that shows the difference between an oscillator and its moving average over a given period of time.,investopedia,1,36.28,12.7,0,9.63,10.2,8.48,13.5,13.87
Oslo Stock Exchange (OSL) .OL,"The Oslo Stock Exchange (OSL) .OL is the major securities trading market based in Oslo, Norway. In Norwegian, the market is known as Oslo Børs.",investopedia,1,75.71,5.8,0,7.82,7.2,9.94,6.25,8.2
OTC Markets Group Inc.,"The OTC Markets Group is the owner and operator of the most substantial U.S. inter-dealer electronic quotation and trading system for over-the-counter (OTC) securities. It provides marketplaces for trading more than 11,000 OTC securities.",investopedia,1,37.3,12.3,0,15.72,15.5,12.37,13,13.86
OTC Options,OTC options are exotic options that trade in the over-the-counter market rather than on a formal exchange like exchange traded option contracts.,investopedia,1,49.15,11.9,0,14.33,15.9,9.75,13,10.62
OTC Pink,"The OTC Pink, now branded as the Pink Open Market, is the lowest and most speculative tier of the three marketplaces for the trading of over-the-counter (OTC) stocks. All three tiers are provided and operated by the OTC Markets Group. This marketplace offers to trade in a wide range of equities through any broker and includes companies in default or financial distress.",investopedia,1,58.92,10.2,13,10.85,12.5,10.27,13.33333333,13.44
OTCQB,"The OTCQB, also called ""The Venture Market,"" is the middle tier of the over-the-counter (OTC) market for U.S. stocks. It was created in 2010 and consists mainly of early-stage and developing U.S. and international companies that are not yet able to qualify for the OTCQX but are not as speculative as the lowest-tier Pink Sheets.",investopedia,1,52.02,12.8,0,10.45,16,10.74,17.75,15.36
OTCQX,"The OTCQX is the top tier of the three marketplaces for the over-the-counter (OTC) trading of stocks. The OTCQX is provided and operated by the OTC Markets Group. Stocks that trade on this forum must meet more stringent qualification criteria compared to the other tiers, which are the OTCQB/OTCBB and the Pink Sheets.",investopedia,1,70.43,7.8,11.2,10.67,11.1,9.88,10.83333333,10.85
Other Comprehensive Basis of Accounting (OCBOA),"Other Comprehensive Basis of Accounting (OCBOA) includes financial statements prepared using a system of accounting that differs from GAAP, the most common being tax-basis and cash-basis financial statements. Other Comprehensive Basis of Accounting (OCBOA) systems also includes a statutory basis of accounting such as that used by insurance companies to comply with the rules of a state insurance commission, as well as financial statements prepared using defined criteria that are well-supported in popular literature.",investopedia,1,8.54,21.3,0,17.47,25.5,10.81,28,20.75
Other Current Assets (OCA),"Other current assets (OCA) is a category of things of value that a company owns, benefits from, or uses to generate income that can be converted into cash within one business cycle. They are referred to as “other” because they are uncommon or insignificant, unlike typical current asset items such as cash, securities, accounts receivable, inventory, and prepaid expenses.",investopedia,1,33.07,16,0,13.18,18.5,11.79,20.75,19.26
Other Current Liabilities,"Other current liabilities, in financial accounting, are categories of short-term debt that are lumped together on the liabilities side of the balance sheet. The term ""current liabilities"" refers to items of short-term debt that a firm must pay within 12 months. To that, companies add the word ""other"" to describe those current liabilities that are not significant enough to identify separately on their own lines in financial statements, so they are grouped together as ""other current liabilities.""",investopedia,1,36.93,14.5,15.9,13.76,17.3,9.22,17.83333333,14.44
Other Long-Term Liabilities,Other long-term liabilities is a line item on a balance sheet that lumps together obligations that are not due within 12 months. These debts that are less urgent to repay are a part of their total liabilities but are categorized as “other” when the company doesn’t deem them important enough to warrant individual identification.,investopedia,1,44.07,13.8,0,12.65,16.4,9.95,18,14.5
Other Post-Employment Benefits (OPEB),"Other post-employment benefits (OPEB) are the benefits, other than pension distributions, that employees may begin to receive from their employer once they retire. Other post-employment benefits can include life insurance, health insurance, and deferred compensation. These benefits are also referred to as ""other post-retirement benefits.""",investopedia,1,30.87,12.7,15.5,18.49,17.1,9.29,12.16666667,13.11
Other Post-Retirement Benefits,"Other post-retirement benefits are benefits, other than pension distributions, paid to employees during their retirement years. Post-retirement benefits may include life insurance and medical plans, or premiums for such benefits, as well as deferred-compensation arrangements.",investopedia,1,11.41,16,0,21.05,19.9,10.82,15.75,17.29
Other Real Estate Owned (OREO),"Other Real Estate Owned (OREO) is a bank accounting term that refers to real estate property assets that a bank holds, but that are not part of its business. Oftentimes, these assets are acquired due to foreclosure proceedings. A large quantity of OREO assets on a bank balance sheet may raise concerns about the overall health of the institution.",investopedia,1,59.94,9.8,11.9,10.44,11.5,9.16,12.16666667,12.63
Out-of-Pocket Expenses,"Out-of-pocket expenses refer to costs that individuals pay out of their own cash reserves. The phrase is most often used to describe an employee's business and work-related expenses that the company later reimburses. It also describes a policyholder's share of health insurance costs, including money spent on deductibles, copays, and coinsurance.",investopedia,1,37.3,12.3,14.6,14.96,14.5,9.74,12.5,13.86
Out-of-Pocket Limit,An out-of-pocket maximum is the most a health insurance policyholder will pay each year for covered healthcare expenses. It is also called the out-of-pocket limit. Setting a limit helps policyholders control risk by capping their share of healthcare costs. It also helps insurers control risk by making policyholders responsible for part of their healthcare costs.,investopedia,1,40.55,11,12.2,13.97,12,8.91,8.375,10.61
Out of The Money (OTM),Out of the money (OTM) is an expression used to describe an option contract that only contains extrinsic value. These options will have a delta of less than 50.0.,investopedia,1,73.68,6.6,0,7.94,7.6,9.8,7.25,8.56
Outcome Bias,"Outcome bias arises when a decision is based on the outcome of previous events, without regard to how the past events developed. Outcome bias does not involve analysis of factors that lead to a previous event, and instead de-emphasizes the events preceding the outcomes and overemphasizes the outcome. Unlike hindsight bias, outcome bias does not involve the distortion of past events.",investopedia,1,59.33,10,13,12.94,13.8,10.08,13.16666667,13.37
Outlay Cost,"An outlay cost is a cost incurred in order to execute a strategy or acquire an asset. Outlay costs are also paid to vendors to acquire goods such as inventory or services, such as consulting or software design. They are concrete expenses that are actually incurred in order to achieve a goal.",investopedia,1,53.92,10,11.2,8.87,9,9.66,10.66666667,11.54
Outperform,"In financial news media outperform is commonly used as a rating given by analysts who publicly research and recommend securities. If they change their rating on a particular security to ""outperform"" from ""market perform"" or even ""underperform,"" then something has changed in their analyses that makes them believe the security will produce higher returns, for the foreseeable future, than the major market indexes.",investopedia,1,22.58,17.9,0,14.69,20.6,10.96,22.25,19.58
Outplacement,"Outplacement is any service that assists a departing employee with obtaining a new job or transitioning to a new career. Access to outplacement services is offered by some employers as an employee benefit for their staff. Outplacement services can be beneficial for all parties monetarily, professionally, and emotionally and, more often than not, ensure a peaceful end to a working relationship.",investopedia,1,33.95,13.6,15.9,13.98,14.7,10.08,15.16666667,15.99
Output Gap,The term output gap refers to the difference between the actual output of an economy and the maximum potential output of an economy expressed as a percentage of gross domestic product (GDP). A country's output gap may be either positive or negative. A negative output gap suggests that actual economic output is below the economy's full capacity for output while a positive output suggests an economy that is outperforming expectations because its actual output is higher than the economy's recognized maximum capacity output.,investopedia,1,17.98,17.6,19.3,13.64,17.7,9.58,21.83333333,17.83
Outright Forward,"An outright forward, or currency forward, is a currency contract that locks in the exchange rate and a delivery date beyond the spot value date. It is the simplest type of foreign exchange forward contract and protects an investor, importer or exporter from exchange rate fluctuations.",investopedia,1,48.13,12.3,0,12.65,14.7,9.58,13.5,11.81
Outright Futures Position,"An outright futures position is a long or short trade that is not hedged from market risk. Both the potential gain and the potential risk are greater for outright positions than for positions that are covered or hedged in some way. An outright position is one which stands on its own, and is not part of a larger or more complex trade.",investopedia,1,75.84,7.8,11.2,7.95,9.7,7.72,12.33333333,10.22
Outright Option,An outright option is an option that is bought or sold individually. The option is not part of a spread trade or other types of options strategy where multiple different options are purchased. An outright option can refer to any basic option purchased on a single underlying security. Outright options include calls and puts.,investopedia,1,57.77,8.6,10.1,10.9,9.1,8.69,7.25,9.1
Outside Days,"Outside days are days where a security’s price is more volatile than the previous day as evidenced by a higher high and a lower low. This makes it a two-day price pattern. The difference between the open and close on the second day is larger than the first day, where the open and close of the second day are outside the range of the first day.",investopedia,1,74.53,8.3,9.7,6.79,9.5,7.36,12.33333333,10.62
Outside Director,"An outside director is a member of a company's board of directors who is not an employee or stakeholder in the company. Outside directors are paid an annual retainer fee in the form of cash, benefits and/or stock options. Corporate governance standards require public companies to have a certain number or percentage of outside directors on their boards. In theory outside directors are more likely to provide unbiased opinions.",investopedia,1,31.21,14.6,17.1,12.77,14.7,9.58,17.5,17.32
Outside Reversal,An outside reversal is a price pattern that indicates a potential change in trend on a price chart. The two-day pattern is observed when a security’s high and low prices for the day exceed the high and low of the previous day’s trading session. Outside reversal is also known as either a bullish engulfing (after a downward price move) or a bearish engulfing pattern (after an upward price move) when observed on candlestick charts.,investopedia,1,54.86,11.7,13,10.62,13.8,8.7,15.33333333,13.12
Outside Sales,"Outside sales refer to the sales of products or services by sales personnel that physically go out into the field to meet with prospective customers. Outside sales professionals tend to work autonomously outside of a formal office setting or a formal team environment. They often travel to meet customers face-to-face, as well as to maintain relationships with existing customers.",investopedia,1,51.48,11,11.9,13.81,14.1,9.16,12.16666667,12.63
Outsourcing,"Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office.",investopedia,1,42,12.5,14.1,12.94,14.1,9.76,14,13.44
Outstanding Check,"An outstanding check is a check payment that is written by someone, but has not been cashed or deposited by the payee. The payor is the entity who writes the check, while the payee is the person or institution to whom it is written. An outstanding check also refers to a check that has been presented to the bank but is still in the bank’s check-clearing cycle.",investopedia,1,65.76,9.6,11.9,8.01,10.5,7.81,13.5,11.91
Outward Arbitrage,"Outward arbitrage is a type of arbitrage that multinational, American-based banks engage in, which takes advantage of differences in interest rates between the United States and other countries.",investopedia,1,26.14,16.6,0,16.77,20.6,11.79,21,18.34
Outward Direct Investment (ODI),An outward direct investment (ODI) is a business strategy in which a domestic firm expands its operations to a foreign country.,investopedia,1,41.7,12.7,0,11.43,13.1,10.69,14.5,16.02
Over-55 Home Sale Exemption,"The over-55 home sale exemption was a tax law that provided homeowners over the age of 55 with a one-time capital gains exclusion. Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences.",investopedia,1,49.65,11.7,0,10.62,12.6,9.48,15.75,16.04
Over and Short,"Over and short—often called ""cash over short""—is an accounting term that signals a discrepancy between a company's reported figures (from its sales records or receipts) and its audited figures. The term also is the name of an account in a company's general ledger—the cash-over-short account.",investopedia,1,48.64,12.1,0,13.7,15.8,8.96,14.75,13.44
Over-Hedging,Over-hedging is a risk management strategy that uses an offsetting position which exceeds the size of the original position being hedged. The result may be a net position in the opposite direction of the initial position.,investopedia,1,36.28,12.7,0,11.89,11.9,10.23,14.5,13.87
Over-Limit Fee,"An over-limit fee is a penalty charged by credit card companies when cardholders’ purchases exceed their credit limit. Previously, credit card companies would decline the transaction if the consumer made a purchase over their limit; however, credit card companies moved to a practice of allowing the transaction to go through but charging a fee. This practice has stopped since the passing of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act in 2009.",investopedia,1,25.97,18.7,0,14.69,23,10.42,16.83333333,19.53
Over-Line,"In the insurance industry, the term “over-line” refers to the portion of an insurance company’s coverage that exceeds the normal amount of coverage that they provide. Over-line coverage can occur when an insurer underwrites more policies than normal, or when a reinsurer accepts a larger amount of liabilities through a reinsurance contract than is typical for that firm.",investopedia,1,33.58,15.8,0,14.11,18.6,10.79,21,18.5
Over-Selling,"Over-selling occurs when a salesperson continues their sales pitch after the customer has already decided to make a purchase. This mistake can sometimes annoy the customer and could potentially cause the customer to change their mind, resulting in the deal falling through. Over-selling also means trying to upsell a customer on more than they need or want; this may also have the effect of making the customer unconformable.",investopedia,1,56.89,11,11.2,12.94,14.7,8.25,13.33333333,12.61
Over-the-Counter (OTC),"Over-the-counter (OTC) refers to the process of how securities are traded via a broker-dealer network as opposed to on a centralized exchange. Over-the-counter trading can involve equities, debt instruments, and derivatives, which are financial contracts that derive their value from an underlying asset such as a commodity.",investopedia,1,30.7,14.8,0,15.84,18.2,12.53,17.25,16.21
Over-the-Counter Bulletin Board (OTCBB),"The over-the-counter bulletin board (OTCBB) is an electronic quotation service provided by the Financial Industry Regulatory Authority (FINRA) to its subscribing members that offers over-the-counter (OTC) trade data for U.S. stocks. Unlike other OTC platforms, OTCBB is a quotation-only service.",investopedia,1,25.8,14.6,0,17.52,18.7,12.52,15.5,16
Over-the-Counter Exchange of India (OTCEI),"The Over-The-Counter Exchange of India (OTCEI) is an electronic stock exchange based in India that consists of small- and medium-sized firms aiming to gain access to overseas capital markets, including electronic exchanges in the U.S. such as the NASDAQ. There is no central place of exchange, and all trading occurs through electronic networks.",investopedia,1,44.58,13.6,0,13.87,18,11.21,16.75,12.11
Over the Top (OTT),"Over the top (OTT) refers to film and television content provided via a high-speed Internet connection rather than a cable or satellite provider. Viewers who dislike paying for bundled content are often referred to as cord-cutters. OTT does not mean free, as the term encompasses services such as Netflix, Amazon Prime Video, Hulu, and HBO Now.",investopedia,1,60.95,9.4,11.2,11.49,12.2,11.33,11.33333333,11.05
Overall Liquidity Ratio,"The overall liquidity ratio is the measurement of a company's capacity to pay its outstanding liabilities with its assets on hand. The overall liquidity ratio is calculated by dividing total assets by the difference between its total liabilities and conditional reserves. This ratio is used in the insurance industry, as well as in the analysis of financial institutions.",investopedia,1,26.51,14.4,16.7,13.63,13.7,9.77,15.33333333,17.38
Overall Turnover,"Overall turnover is a synonym for a company’s total revenues. It is a term that is most commonly used in Europe and Asia. For example, a European or Asian company's press release that announces overall turnover increased 20% last year simply means that gross revenues or total sales increased by that percentage.",investopedia,1,62.38,8.9,11.2,10.84,10.9,11.17,10.66666667,11.54
Overallotment,"An overallotment is an option commonly available to underwriters that allows the sale of additional shares that a company plans to issue in an initial public offering or secondary/follow-on offering. An overallotment option allows underwriters to issue as many as 15% more shares than originally planned. The option can be exercised within 30 days of the offering, and it does not have to be exercised on the same day.",investopedia,1,39.67,13.4,15.5,11.84,13.9,9.35,16.16666667,13.26
Overbought,"Overbought is a term used when a security is believed to be trading at a level above its intrinsic or fair value. Overbought generally describes recent or short-term movement in the price of the security, and reflects an expectation that the market will correct the price in the near future. This belief is often the result of technical analysis of the security’s price history, but fundamentals may also be employed. A stock that is overbought may be a good candidate for sale.",investopedia,1,50.67,11.3,12.6,10.33,11.6,8.5,13,12.59
Overcapitalization,"Overcapitalization occurs when a company has issued more in debt and equity than its assets are worth. If this is the case, the market value of the company is less than the total capitalized value of the company. An overcapitalized company might be paying more in interest and dividend payments than it can sustain in the long term.",investopedia,1,51.89,10.8,13.6,9.81,10.6,8.41,13,11.86
Overcast,"An overcast is a type of forecasting error that occurs when an estimated metric, such as future cash flows, performance levels, or production, is forecast too high. Overcasting thus is when the estimated value turns out to be above the realized or actual value.",investopedia,1,49.15,11.9,0,10.68,12.9,11.19,15,15.16
Overcollateralization (OC),Over-collateralization (OC) is the provision of collateral that is worth more than enough to cover potential losses in cases of default.,investopedia,1,33.24,13.8,0,13.63,15.1,10.69,14.5,16.02
Overdraft,An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.,investopedia,1,46.61,12.8,0,11.2,13.9,9.36,15.25,14.7
Overdraft Protection,"Overdraft protection is an option offered in bank accounts that prevents check, ATM, or debit card transactions, as well as wire and electronic transfers, from causing the account's balance to fall below zero and triggering an overdraft fee or a non-sufficient funds (NSF) fee. With overdraft protection, a bank will cover a shortfall and charge for the service with an overdraft fee, or “courtesy fee,” so the transaction goes through successfully.",investopedia,1,43.9,16,0,13.18,21.5,10.96,21.75,18.14
Overextension,"The term ""overextension"" refers to a situation in finance in which an individual or corporation has more debt than they can handle and repay. Consumers who must use more than a third of their net income to repay debt are generally considered to be overextended. They may need to consolidate their debts into a single loan. Granting more credit to overextended consumers or companies can be a great risk to lenders. Being overextended also represents excessive leverage in a trader or investor's account equity and their buying power for securities.",investopedia,1,53.21,10.3,13,11.48,11.6,9.09,12,12.98
Overfitting,"Overfitting is a modeling error in statistics that occurs when a function is too closely aligned to a limited set of data points. As a result, the model is useful in reference only to its initial data set, and not to any other data sets.",investopedia,1,57.1,10.9,0,7.38,10,10.37,13.75,13.44
Overfunded Pension Plan,"An overfunded pension plan is a company retirement plan that has more assets than liabilities. In other words, there is a surplus amount of money needed to cover current and future monthly benefits to retirees. Although accounting standards allow the company to record the surplus as net income, it cannot be paid out to corporation shareholders like other income as it is reserved for current and future retirees.",investopedia,1,48.43,12.1,13,12.42,14.2,9.17,14.33333333,13.2
Overhang,"Overhang is a measure of the potential dilution to which common shareholders are exposed due to possible awards of stock-based compensation. It is usually represented as a percentage and is calculated as stock options granted, plus the remaining options to be granted divided by the total shares outstanding.",investopedia,1,30.2,15,0,14.05,16.2,11.74,18,18.77
Overhead,"Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. It is important for budgeting purposes but also for determining how much a company must charge for its products or services to make a profit. In short, overhead is any expense incurred to support the business while not being directly related to a specific product or service.",investopedia,1,41.7,12.7,15,11.84,13,9.19,14.83333333,14.75
Overhead Rate,"The overhead rate is a cost allocated to the production of a product or service. Overhead costs are expenses that are not directly tied to production such as the cost of the corporate office. To allocate overhead costs, an overhead rate is applied to the direct costs tied to production by spreading or allocating the overhead costs based on specific measures.",investopedia,1,50.87,11.2,13.6,10.85,11.9,8.53,13.5,13.37
Overhead Ratio,An overhead ratio is a measurement of the operating costs of doing business compared to the company's income. A low overhead ratio indicates that a company is minimizing business expenses that are not directly related to production.,investopedia,1,35.78,12.9,0,13,12.8,10.1,14.25,17.13
Overheated Economy,"An overheated economy is one that has experienced a prolonged period of good economic growth and activity that has led to high levels of inflation, triggered by increased consumer wealth.",investopedia,1,32.57,16.2,0,13.65,18.5,11.97,22,21.33
Overlapping Debt,"Overlapping debt refers to the financial obligations of one political jurisdiction that also falls partly on a nearby jurisdiction. Overlapping debt is common in the U.S. because most states are divided into numerous jurisdictions for different tax purposes, such as building a new public school or building a new road.",investopedia,1,37.64,14.2,0,13.76,16.5,9.61,18.5,17.2
Overlay,Overlay refers to a management style that harmonizes an investor's separately managed accounts. Overlay management uses software to track an investor's combined position from separate accounts. The overlay system analyzes any portfolio adjustments to ensure the overall portfolio remains in balance and to prevent any inefficient transactions from occurring. Overlay portfolio management makes sure the investor’s strategies are implemented and coordinated successfully.,investopedia,1,21.9,14.1,15.2,20.3,17.5,12.3,12.25,14.59
Overleveraged,"A business is said to be overleveraged when it is carrying too much debt when compared to its operating cash flows and equity. An overleveraged company has difficulty in paying its interest and principal payments and is often unable to pay its operating expenses because of excessive costs due to its debt burden, which often leads to a downward financial spiral. This results in the company having to borrow more to stay in operation, and the problem gets worse. This spiral usually ends when a company restructures its debt or files for bankruptcy protection.",investopedia,1,47.62,12.5,15.9,11.49,13.8,10.01,16.75,15.78
Overnight Position,Overnight positions refer to open trades that have not been closed or liquidated by the end of the normal trading day.,investopedia,1,67.08,9.1,0,9.52,11.1,9.94,12.5,12.21
Overnight Index Swap,"An index swap refers to a hedging contract in which a party exchanges a predetermined cash flow with a counter-party on a specified date. A debt, equity, or other price index is used as the agreed exchange for one side of this swap.",investopedia,1,66.57,9.3,0,7.66,10.1,8.74,12.75,11.39
Overnight Rate,"The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds with another depository institution in the overnight market. In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy. In most circumstances, the overnight rate is the lowest available interest rate, and as such, it is only available to the most creditworthy institutions.",investopedia,1,39.97,13.3,15.5,13.87,15.6,9.17,16,14.37
Overnight Trading,Overnight trading refers to trades that are placed after an exchange’s close and before its open. Overnight trading hours can vary based on the type of exchange in which an investor seeks to transact. Not all markets have overnight trading. Overnight trading is an extension of after-hours trading.,investopedia,1,84.68,4.4,7.2,11.59,9.2,8.84,5.5,5.63
Overreaction,"An overreaction is an extreme emotional response to new information. In finance and investing, it is an emotional response to a security such as a stock or other investment, which is led either by greed or fear. Investors overreacting to news cause the security to become either overbought or oversold until it returns to its intrinsic value.",investopedia,1,43.73,11.9,13.6,11.31,11.7,9.01,12.83333333,13.21
Overseas Private Investment Corporation (OPIC),The Overseas Private Investment Corporation (OPIC) was a U.S. development finance institution. This government agency assisted private businesses that wanted to invest abroad. OPIC encouraged development in emerging markets through private sector investment overseas by assisting corporations to analyze and manage risks while encouraging development in emerging markets. This helped the agency advance the country's foreign policy and national security goals.,investopedia,1,22.11,14,15.2,19.31,17.1,13.2,12.125,15.3
Overshooting,"In economics, overshooting, also known as the exchange rate overshooting hypothesis, is a way to think about and explain high levels of volatility in currency exchange rates using the concept of price stickiness.",investopedia,1,29.52,17.3,0,14.23,20.7,10.06,23.5,20.47
Oversold,"The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce. An oversold condition can last for a long time, and therefore being oversold doesn't mean a price rally will come soon, or at all. Many technical indicators identify oversold and overbought levels. These indicators base their assessment on where the price is currently trading relative to prior prices. Fundamentals can also be used to assess whether an asset is potentially oversold and has deviated from its typical value metrics.",investopedia,1,52.8,10.5,12.7,11.49,11.5,9.18,12,12.58
Oversubscribed,"Oversubscribed is a term used for when the demand for a new issue of securities, such as an IPO's shares, is greater than the number of securities offered. When a new issue is oversubscribed, underwriters or other financial entities offering the security can adjust the price upward or offer more securities to reflect the higher-than-anticipated demand.",investopedia,1,34.6,15.4,0,13.23,17.8,9.82,19.5,16.91
Oversubscription Privilege,An oversubscription privilege gets extended to a company’s shareholders on the issuance of a rights or warrants offering. The privilege allows shareholders to purchase any shares remaining after other shareholders have had an opportunity to purchase them.,investopedia,1,27.32,14,0,16.71,15.7,10.96,14.75,16.05
Oversupply,"Oversupply is an excessive amount of a product. Oversupply results when demand is lower than supply, resulting in a surplus. Simply put, an oversupply is when there is more product for sale than people are prepared to buy. There are many reasons why oversupply may occur. There can be an oversupply of a current product due to people waiting for an improved model in a series, such as smartphones from a particular maker. Oversupply can also occur in situations where the price of the good or service is too high and people are simply not prepared to buy it at that price. An oversupply may also simply be a case of a producer completely misreading the market demand for a product.",investopedia,1,55.37,11.5,12.7,9.52,12.6,8.1,9,12.32
Overtrading,"Overtrading refers to the excessive buying and selling of stocks by either a broker or an individual trader. Both are entirely different situations and have very different implications. An individual trader, whether working for themselves or employed on a trading desk by a financial firm, will have rules about how much risk they can take, including how many trades are appropriate for them to make.",investopedia,1,49.45,11.8,14.6,12.18,13.8,10.54,14.83333333,14.22
Overvalued,"An overvalued stock has a current price that is not justified by its earnings outlook, known as profit projections, or its price-earnings (P/E) ratio. Consequently, analysts and other economic experts expect the price to drop eventually.",investopedia,1,44.75,11.5,0,13.69,14.1,11.11,12.5,14.98
Overweight,"An overweight investment is an asset or industry sector that comprises a higher-than-normal percentage of a portfolio or an index. An investor might choose to devote a greater portion of the portfolio to a sector that seems particularly promising, or an investor might go overweight on defensive stocks and bonds at a time when prices are volatile.",investopedia,1,51.01,13.2,0,12.25,16.9,11.42,18.75,16.31
Overwriting,"Overwriting is a trading strategy that involves selling options that are believed to be overpriced, with the assumption that the options won't get exercised before they expire.",investopedia,1,44.07,13.8,0,14.57,18.3,11.41,17.5,16.73
Own-Occupation Policy,"An own-occupation insurance policy covers individuals who become disabled and are unable to perform the majority of the occupational duties that they have been trained to perform. This type of insurance policy is contingent on the individual being employed at the time the disability occurs. Own-occupation insurance policies are also known as a ""pure own-occupational policy"" and ""own-occupation disability insurance"" in some circles. Doctors will often purchase these policies for protection against injuries.",investopedia,1,27.52,14,15.6,16.82,16.1,9.74,13.875,12.8
Owner Earnings Run Rate,Owner earnings run rate is an extrapolated estimate of an owner's earnings (free cash flow) over a defined period of time — typically a year.,investopedia,1,46.1,13,0,9.23,13.1,9.3,16.5,16.4
Owner Financing,"Owner financing is a transaction in which a property's seller finances the purchase directly with the person or entity buying it, either in whole or in part.",investopedia,1,44.07,13.8,0,10.51,14.9,10.24,18.5,18.21
Owner-Occupant,"An owner-occupant is a resident of a property who holds the title to that property. In contrast, an absentee owner carries the title to the property but does not live there. An absentee landlord is a type of absentee owner.",investopedia,1,57.98,8.5,12.5,7.76,6.9,7.85,8.333333333,9.32
Owners' Equivalent Rent (OER),"Owners’ equivalent rent (OER) is the amount of rent that would have to be paid in order to substitute a currently owned house as a rental property. This value is also referred to as rental equivalent. In other words, OER figures the amount of monthly rent that would be equivalent to the monthly expenses of owning a property (e.g. mortgage, taxes, etc.).",investopedia,1,58.92,10.2,13,8.99,11.2,9.5,13.33333333,12.15
Oxford Saïd Business School (SBS),"Saïd Business School is the business school at Oxford University. The Saïd Business School (SBS) offers both undergraduate and graduate programs in finance, business and management. The school has several master of business administration (MBA) and doctorate programs covering various aspects of business and finance.",investopedia,1,39.33,11.5,13,16.29,14.7,9.99,10.5,13.11
P-Test,"In statistics, the p-value is the probability of obtaining results at least as extreme as the observed results of a statistical hypothesis test, assuming that the null hypothesis is correct. The p-value is used as an alternative to rejection points to provide the smallest level of significance at which the null hypothesis would be rejected. A smaller p-value means that there is stronger evidence in favor of the alternative hypothesis.",investopedia,1,39.37,13.6,15.9,13.12,15.2,9.53,16.66666667,15.61
P-Value,"In statistics, the p-value is the probability of obtaining results at least as extreme as the observed results of a statistical hypothesis test, assuming that the null hypothesis is correct. The p-value is used as an alternative to rejection points to provide the smallest level of significance at which the null hypothesis would be rejected. A smaller p-value means that there is stronger evidence in favor of the alternative hypothesis.",investopedia,1,39.37,13.6,15.9,13.12,15.2,9.53,16.66666667,15.61
Pac-Man Defense,"The Pac-Man defense is a defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac-Man defense, the target firm then tries to acquire the company that has made a hostile takeover attempt. In an attempt to scare off the would-be acquirers, the takeover target may use any method to acquire the other company, including dipping into its war chest for cash to buy a majority stake in the other company.",investopedia,1,54.56,11.9,13,9.41,13.1,8.67,15.5,13.2
Paga,Paga is a mobile payment platform that allows its users to transfer money electronically and make payments through their mobile devices. Paga acts as a mobile wallet where any user equipped with a mobile device can conduct transactional activities using their device. Paga was founded in Nigeria in 2009 by Tayo Oviosu and publicly launched in 2011.,investopedia,1,52.19,10.7,8.8,12.24,12.3,11.23,10.5,9.71
Paid-In Capital,"Paid-in capital is the amount of capital ""paid in"" by investors during common or preferred stock issuances, including the par value of the shares plus amounts in excess of par value. Paid-in capital represents the funds raised by the business through selling its equity and not from ongoing business operations.",investopedia,1,46.1,13,0,12.6,15.8,10.25,16.5,14
Paid-Up Additional Insurance,Paid-up additional insurance is additional whole life insurance coverage that a policyholder purchases using the policy’s dividends instead of premiums. Paid-up additional insurance is available as a rider on a whole life policy. It lets policyholders increase their death benefit and living benefit by increasing the policy’s cash value.,investopedia,1,12.77,17.6,0,17.12,19,10.01,14.16666667,19.6
Paid-Up Capital,"Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares on the primary market directly to investors, usually through an initial public offering (IPO). When shares are bought and sold among investors on the secondary market, no additional paid-up capital is created as proceeds in those transactions go to the selling shareholders, not the issuing company.",investopedia,1,46.1,13,16.7,12.89,16,8.67,18.16666667,14.8
Painting the Tape,"Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity. The goal of painting the tape is to create the illusion of an increased interest in a stock to trick investors into buying shares, which would drive the price higher.",investopedia,1,38.49,16,0,11.79,18.1,10.11,20.25,17.92
Paper Money,"Paper money is a country's official, paper currency that is circulated for the transactions involved in acquiring goods and services. The printing of paper money is typically regulated by a country's central bank or treasury in order to keep the flow of funds in line with monetary policy.",investopedia,1,38.66,13.8,0,11.67,14.3,10.09,16.5,17.1
Paper Trade,"A paper trade is a simulated trade that allows an investor to practice buying and selling without risking real money. The term dates back to a time when (before the proliferation of online trading platforms) aspiring traders would practice on paper before risking money in live markets. While learning, a paper trader records all trades by hand to keep track of hypothetical trading positions, portfolios, and profits or losses. Today, most practice trading involves the use of an electronic stock market simulator, which looks and feels like an actual trading platform.",investopedia,1,48.33,12.2,11.7,13.06,14.9,9.97,13.625,13.08
Par,"Par value, also known as nominal value, is the face value of a bond or the stock value stated in the corporate charter.",investopedia,1,56.59,11.1,0,6.74,9.9,8.9,13.5,12.68
Par Yield Curve,"A par yield curve is a graphical representation of the yields of hypothetical Treasury securities with prices at par. On the par yield curve, the coupon rate will equal the yield to maturity (YTM) of the security, which is why the Treasury bond will trade at par.",investopedia,1,64.54,10.1,0,9.06,12.1,9.51,14.75,14.51
Parabolic SAR (Stop and Reverse) Indicator,"The parabolic SAR indicator, developed by J. Wells Wilder, is used by traders to determine trend direction and potential reversals in price. The indicator uses a trailing stop and reverse method called ""SAR,"" or stop and reverse, to identify suitable exit and entry points. Traders also refer to the indicator as the parabolic stop and reverse, parabolic SAR, or PSAR.",investopedia,1,56.25,9.1,13,11.13,10.6,10.43,10.5,10.67
Paradox of Thrift,"The paradox of thrift, or paradox of savings, is an economic theory that posits that personal savings are a net drag on the economy during a recession. This theory relies on the assumption that prices do not clear or that producers fail to adjust to changing conditions, contrary to the expectations of classical microeconomics. The paradox of thrift was popularized by British economist John Maynard Keynes.",investopedia,1,49.15,11.9,15.5,12.42,14.1,10.71,15.66666667,16.68
Parent Company,"A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hands-off owners of its subsidiaries, depending on the amount of managerial control given to subsidiary managers, but will always maintain a certain level of active control.",investopedia,1,27.66,16,0,13.23,17,9.12,18.25,15.13
Pareto Analysis,"Pareto analysis is a technique that can be used for business decision-making, but it also has applications in many different fields from economics to quality control. It is based on the 80-20 rule. As a decision-making technique, Pareto analysis statistically separates a limited number of input factors—either desirable or undesirable—as having the greatest impact on an outcome.",investopedia,1,26.81,14.2,15.5,14.85,14.8,10.67,14.16666667,14.62
Pareto Efficiency,"Pareto efficiency, or Pareto optimality, is an economic state where resources cannot be reallocated to make one individual better off without making at least one individual worse off. Pareto efficiency implies that resources are allocated in the most economically efficient manner, but does not imply equality or fairness. An economy is said to be in a Pareto optimum state when no economic changes can make one individual better off without making at least one other individual worse off.",investopedia,1,19.71,17,16.3,13.23,16.4,8.57,18.33333333,16.04
Pareto Improvement,"Under the rubric of neoclassical economic theory, a Pareto improvement occurs when a change in allocation harms no one and helps at least one person, given an initial allocation of goods for a set of persons. The theory states that Pareto improvements can keep enhancing value to an economy until it achieves a Pareto optimum, where no more Pareto improvements can be made.",investopedia,1,39.5,15.6,0,11.5,17.6,9.46,21.75,18.31
Pareto Principle,"The Pareto Principle, named after esteemed economist Vilfredo Pareto, specifies that 80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs. This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. The Pareto Principle is also known as the Pareto Rule or the 80/20 Rule.",investopedia,1,43.02,12.2,14.1,13.29,13.9,9.7,13.5,12.63
Pari-passu,"Pari-passu is a Latin phrase meaning ""equal footing"" that describes situations where two or more assets, securities, creditors, or obligations are equally managed without preference. An example of pari-passu occurs during bankruptcy proceedings: When the court reaches a verdict, the court regards all creditors equally, and the trustee will repay them the same fractional amount as other creditors and at the same time.",investopedia,1,31.04,16.8,0,15.33,21.2,11.21,22.25,18.31
Parity,"The parity price concept is used for both securities and commodities, and the term refers to when two assets are equal in value. Convertibles, such as convertible bonds, use the parity price concept to determine when it is financially beneficial to convert a bond into shares of common stock. If two assets are trading at parity, it can be inferred they are at the same price or value.",investopedia,1,56.89,11,13.6,9.52,11.9,8.94,14.66666667,13.79
Parity Price,"The parity price concept is used for both securities and commodities, and the term refers to when two assets are equal in value. Convertibles, such as convertible bonds, use the parity price concept to determine when it is financially beneficial to convert a bond into shares of common stock. If two assets are trading at parity, it can be inferred they are at the same price or value.",investopedia,1,56.89,11,13.6,9.52,11.9,8.94,14.66666667,13.79
Parsonage Allowance,"A parsonage allowance is a sum of money awarded by the same governing board of a house of worship to its minister to offset housing expenses. For tax purposes, this allowance is exempted from the recipient's gross income. A parsonage allowance may also be called a rental allowance or housing allowance.",investopedia,1,54.22,9.9,12.5,10.61,10.4,9.12,11.16666667,12.29
Participating Policy,"A participating policy is an insurance contract that pays dividends to the policy holder. Dividends are generated from the profits of the insurance company that sold the policy and are typically paid out on an annual basis over the life of the policy. Most policies also include a final or terminal payment that is paid out when the contract matures. Some participating policies may include a guaranteed dividend amount, which is determined at the onset of the policy. A participating policy is also referred to as a ""with-profits policy.""",investopedia,1,36.49,12.6,15.4,11.31,11.4,8.25,13.5,12.06
Participating Preferred Stock,"Participating preferred stock is a type of preferred stock that gives the holder the right to receive dividends equal to the customarily specified rate that preferred dividends are paid to preferred shareholders, as well as an additional dividend based on some predetermined condition. Participating preferred stock can also have liquidation preferences upon a liquidation event.",investopedia,1,18.18,17.6,0,16.95,20.2,9.59,20.75,19
Participation Rate,"The labor force participation rate is a measure of an economy’s active workforce. The formula for the number is the sum of all workers who are employed or actively seeking employment divided by the total noninstitutionalized, civilian working-age population.",investopedia,1,34.76,13.3,0,14.85,14.9,11.89,13.75,16.01
Participatory Note,"Participatory notes also referred to as P-Notes, or PNs, are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI). P-Notes are among the group of investments considered to be Offshore Derivative Investments (ODIs). Citigroup (C) and Deutsche Bank (DB) are among the biggest issuers of these instruments.",investopedia,1,41.4,12.8,15,14.1,15.8,11.35,15,14.15
Passive Activity Loss Rules,Passive activity loss rules are a set of IRS rules that prohibit using passive losses to offset earned or ordinary income. Passive activity loss rules prevent investors from using losses incurred from income-producing activities in which they are not materially involved.,investopedia,1,42.21,12.5,0,15.66,15.9,11.2,13.75,14.05
Passive Foreign Investment Company (PFIC),"A passive foreign investment company (PFIC) is a corporation, located abroad, which exhibits either one of two conditions, based on either income or assets:",investopedia,1,30.2,15,0,13.7,16.7,12.06,17,16.27
Passive Income,"Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable, but it is often treated differently by the IRS.",investopedia,1,42.72,12.3,0,12.3,13.3,10.94,13.5,15
Past Due,Past due refers to a payment that has not been made by its cutoff time at the end of its due date. A borrower who is past due will usually face some penalties and can be subject to late fees. Failure to repay a loan on time usually has negative implications for a borrower's credit status and may cause loan terms to be permanently adjusted.,investopedia,1,66.37,9.4,12.5,7.08,9.5,8.36,13.5,12.99
PATH Act,"The Protecting Americans from Tax Hikes (PATH) Act of 2015 was created to protect taxpayers and their families against fraud and permanently extend many expiring tax laws. The law affects the timing of certain refunds for tax returns filed each year before Feb. 15. Additionally, the PATH Act retroactively extended the Work Opportunity Tax Credit (WOTC), included a new wrongful-incarceration exclusion, and required some taxpayers to renew their Individual Taxpayer Identification Number (ITIN).",investopedia,1,29.89,15.1,17.1,15.67,18.1,12.41,18.16666667,19.04
Path Dependency,"Path dependency explains the continued use of a product or practice based on historical preference or use. A company may persist in the use of a product or practice even if newer, more efficient alternatives are available. Path dependency occurs because it is often easier or more cost-effective to continue along an already set path than to create an entirely new one.",investopedia,1,42,12.5,14.6,11.08,12.3,9.5,14.33333333,14.73
Patriot Act,"The USA Patriot Act is a law passed shortly after the September 11, 2001, terrorist attacks in the United States that gave law enforcement agencies broad powers to investigate, indict, and bring terrorists to justice. It also led to increased penalties for committing and supporting terrorist crimes.",investopedia,1,47.62,12.5,0,13.87,16,11.52,16.25,15.36
Pattern Day Trader,A pattern day trader (PDT) is a regulatory designation for those traders or investors that execute four or more day trades over the span of five business days using a margin account. The number of day trades must constitute more than 6% of the margin account's total trade activity during that five-day window.,investopedia,1,53.04,12.4,0,10.51,14.8,10.31,15.75,14.37
Pay Yourself First,Pay yourself first is an investor mentality and phrase popular in personal finance and retirement-planning literature that means automatically routing a specified savings contribution from each paycheck at the time it is received.,investopedia,1,12.6,19.7,0,17.76,23.3,12.45,24.5,22.9
Payable On Death (POD),"Payable on death (POD) is an arrangement between a bank or credit union and a client that designates beneficiaries to receive all of the client's assets. The immediate transfer of assets is triggered by the death of the client. Though morbid, these structures are important to understand.",investopedia,1,64,8.2,11.2,11.42,10.7,9.45,8.833333333,9.68
Payback Period,"The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a break-even point.",investopedia,1,71.14,7.6,0,8.35,8.7,8.19,11,10.33
Payday Loan,A payday loan is a type of short-term borrowing where a lender will extend high-interest credit based on your income. Its principal is typically a portion of your next paycheck. Payday loans charge high interest rates for short-term immediate credit. They are also called “cash advance” loans or “check advance” loans.,investopedia,1,66.94,7.1,10.1,11.53,9.7,9.53,6.875,9.04
Payee,"A payee is a party in an exchange of goods or services who receives payment. The payee is paid by cash, check, or another transfer medium by a payer. The payer receives goods or services in return. The name of the payee is included in the bill of exchange and it usually refers to a natural person or an entity such as a business, trust, or custodian.",investopedia,1,62.88,8.7,10.1,6.38,7,7.3,8.875,9.71
Payment,"Payment is the transfer of money, goods, or services in exchange for goods and services in acceptable proportions that have been previously agreed upon by all parties involved. A payment can be made in the form of services exchanged, cash, check, wire transfer, credit card, or debit card.",investopedia,1,55.58,11.5,0,11.15,14.3,8.45,13.5,12.1
Payment-in-Kind (PIK),"Payment-in-kind (PIK) is the use of a good or service as payment instead of cash. Payment-in-kind also refers to a financial instrument that pays interest or dividends to investors of bonds, notes, or preferred stock with additional securities or equity instead of cash. Payment-in-kind securities are attractive to companies preferring not to make cash outlays and they are often used in leveraged buyouts.",investopedia,1,50.16,11.5,14.1,13.29,14.9,9.69,14.16666667,14.75
Payout,Payouts refer to the expected financial returns or monetary disbursements from investments or annuities. A payout may be expressed on an overall or periodic basis and as either a percentage of the investment's cost or in a real dollar amount.,investopedia,1,22.42,20.1,0,12.49,22.6,11.94,14.5,25
Payout Ratio,"The payout ratio is a financial metric showing the proportion of earnings a company pays its shareholders in the form of dividends, expressed as a percentage of the company's total earnings. On some occasions, the payout ratio refers to the dividends paid out as a percentage of a company's cash flow. The payout ratio is also known as the dividend payout ratio.",investopedia,1,50.46,11.4,14.6,10.21,11.7,8.99,14.33333333,13.44
PayPal,"PayPal is an electronic commerce company that facilitates payments between parties through online transfers. PayPal allows customers to establish an account on its platform, which is connected to a user's credit card or checking account. Once identification and proof of funds are confirmed, users can begin sending or receiving payments to and from other PayPal accounts online or through the company's app.",investopedia,1,42,12.5,12.5,14.5,15.3,11.03,13,12.8
Payroll,Payroll is the compensation a business must pay to its employees for a set period or on a given date. It is usually managed by the accounting or human resources department of a company. Small-business payrolls may be handled directly by the owner or an associate.,investopedia,1,47.49,10.4,13.6,9.1,8.6,9.2,11,13.08
Payroll Tax,"A payroll tax is a percentage withheld from an employee's pay by an employer who pays it to the government on the employee's behalf. The tax is based on wages, salaries, and tips paid to employees. Federal payroll taxes are deducted directly from the employee's earnings and paid to the Internal Revenue Service (IRS).",investopedia,1,53.21,10.3,14.1,9.8,10.7,10.38,12.66666667,13.13
P/E 10 Ratio,The P/E 10 ratio is a valuation measure generally applied to broad equity indices that use real per-share earnings over 10 years. The P/E 10 ratio also uses smoothed real earnings to eliminate the fluctuations in net income caused by variations in profit margins over a typical business cycle. The P/E 10 ratio is also known as the cyclically adjusted price-to-earnings (CAPE) ratio or the Shiller PE ratio.,investopedia,1,48.43,12.1,13.6,11.09,13.5,10.8,14.66666667,14.37
Peer Group,"The term peer group refers to a group of individuals or companies that share similar characteristics with one another. These characteristics may be age, education, ethnic background, size, industry, or sector. Peer groups are known for their influential nature as they are able to shape the decisions of members of the group. As such, peer groups often contain hierarchies, with clear leaders who sit at the top. Peer groups are often used in analysis in a number of academic and professional fields.",investopedia,1,54.83,9.7,12.7,11.19,10.8,8.69,11,12.41
Peer-to-Peer (P2P) Economy,"A peer-to-peer (P2P) economy is a decentralized model whereby two individuals interact to buy sell goods and services directly with each other or produce goods and service together, without an intermediary third-party or the use of an incorporated entity or business firm. In a peer-to-peer transaction, the buyer and the seller transact directly with each other in terms of the delivery of the good or service and the exchange of payment. In a peer-to-peer economy, the producer is usually a private individual or independent contractor who owns both their tools (or means of production) and their finished product.",investopedia,1,29.82,17.2,17.9,13.01,19.9,10.41,23,19.61
Peer-to-Peer Lending,"Peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman. Websites that facilitate P2P lending have greatly increased its adoption as an alternative method of financing.",investopedia,1,19.37,15,0,18.04,17.4,12.86,13.5,16.09
Pegging,"Pegging is controlling a country's currency rate by tying it to another country's currency. A country's central bank, at times, will engage in open market operations to stabilize its currency by pegging, or fixing, it to another country's presumably more stable currency.",investopedia,1,33.24,13.8,0,13.11,14.9,9.19,15.5,13.16
Pell Grant,"A Pell Grant is a federal subsidy awarded to students for post-secondary education. Pell Grants are awarded on the basis of financial need and, unlike student loans, do not have to be repaid except in rare instances.",investopedia,1,61.16,9.3,0,10.15,10.7,11.81,11.25,10.64
Penetration Pricing,Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. The lower price helps a new product or service penetrate the market and attract customers away from competitors. Market penetration pricing relies on the strategy of using low prices initially to make a wide number of customers aware of a new product.,investopedia,1,48.13,12.3,14.1,12.36,14.1,9.13,15.16666667,13.84
Pennant,"In technical analysis, a pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines—the pennant—followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole.",investopedia,1,6.18,26.3,0,13.94,31.6,11.77,38,28.11
Penny Stock,"A penny stock typically refers to the stock of a small company that trades for less than $5 per share. Though some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE), most trade via over-the-counter (OTC) transactions through the electronic OTC Bulletin Board (OTCBB) or through the privately-owned OTC Markets Group. There is no trading floor for OTC transactions. Quotations are also all done electronically.",investopedia,1,70.63,7.8,11.7,11.95,12.3,9.24,11,10.43
Pension Plan,"A pension plan is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker's future benefit. The pool of funds is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.",investopedia,1,46.61,12.8,0,10.1,13.3,9.69,16.75,16.33
Per Capita,"Per capita is a Latin term that translates to ""by head."" Per capita means the average per person and is often used in place of ""per person"" in statistical observances. The phrase is used with economic data or reporting but is also applied to almost any other occurrence of population description.",investopedia,1,54.22,9.9,12.5,9.63,9.8,9.12,11.16666667,13.07
Per Capita GDP,Per capita gross domestic product (GDP) is a metric that breaks down a country's economic output per person and is calculated by dividing the GDP of a country by its population.,investopedia,1,40.01,15.4,0,10.05,16.4,12.31,20.5,18.85
Per Stirpes,"Per stirpes is a legal term stipulating that should a beneficiary predecease the testator—the person who has made the will—the beneficiary's share of the inheritance goes to that beneficiary's heirs. While the term per stirpes is commonly used to refer to an individual's assets under a will, it is sometimes used in beneficiary designations for individual retirement accounts (IRAs).",investopedia,1,24.61,17.2,0,14.57,19.4,10.18,21.25,19.26
Perceived Value,"In marketing terminology, perceived value is the customers' evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers.",investopedia,1,22.08,18.1,0,13.76,20.1,11.64,23,21.55
Percentage Change,"Percentage change is a simple mathematical concept that represents the degree of change over time. It is used for many purposes in finance, often to represent the price change of a security.",investopedia,1,55.24,9.5,0,10.73,10,8.87,11,13.9
Percentage of Completion Method,"The percentage of completion method is an accounting method in which the revenues and expenses of long-term contracts are recognized as a percentage of the work completed during the period. This is in contrast to the completed contract method, which defers the reporting of income and expenses until a project is completed. The percentage-of-completion method of accounting is common for the construction industry, but companies in other sectors also use the method.",investopedia,1,38.66,13.8,16.7,14.51,16.7,9.21,17.66666667,15.71
Perfect Competition,Pure or perfect competition is a theoretical market structure in which the following criteria are met:,investopedia,1,38.32,11.9,0,14.32,12.8,9.36,12,13.9
Performance Bonds,A performance bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract. It is also referred to as a contract bond. A performance bond is usually provided by a bank or an insurance company to make sure a contractor completes designated projects.,investopedia,1,51.89,10.8,14.1,9.63,10.3,8.95,13.33333333,13.93
Performance Budget,"A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state, or local governments.",investopedia,1,47.83,12.4,15,12.07,14.2,10.66,16,15.61
Performance Management,Performance management is a corporate management tool that helps managers monitor and evaluate employees' work. Performance management's goal is to create an environment where people can perform to the best of their abilities to produce the highest-quality work most efficiently and effectively.,investopedia,1,24.78,15,0,17.11,17.6,11.45,17.5,19.83
Periodic Interest Rate,"A periodic interest rate is a rate that can be charged on a loan, or realized on an investment over a specific period of time. Lenders typically quote interest rates on an annual basis, but the interest compounds more frequently than annually in most cases. The periodic interest rate is the annual interest rate divided by the number of compounding periods.",investopedia,1,33.95,13.6,17.5,10.56,11.8,9.82,16.5,16.64
Permanent Income Hypothesis,"The permanent income hypothesis is a theory of consumer spending stating that people will spend money at a level consistent with their expected long-term average income. The level of expected long-term income then becomes thought of as the level of “permanent” income that can be safely spent. A worker will save only if their current income is higher than the anticipated level of permanent income, in order to guard against future declines in income.",investopedia,1,46.4,12.9,13.6,13.06,15.7,8.28,15.66666667,13.66
Permanent Life Insurance,"Permanent life insurance is an umbrella term for life insurance policies that do not expire. Typically, permanent life insurance combines a death benefit with a savings portion.",investopedia,1,40.85,10.9,0,13.91,11.6,8.98,10.75,11.33
Perpetual Bond,"A perpetual bond, also known as a ""consol bond"" or ""prep,"" is a fixed income security with no maturity date. This type of bond is often considered a type of equity, rather than debt. One major drawback to these types of bonds is that they are not redeemable. However, the major benefit of them is that they pay a steady stream of interest payments forever.",investopedia,1,63.39,8.5,11.7,7.42,7.8,9.3,10.375,11.44
Perpetual Inventory,"Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software. Perpetual inventory provides a highly detailed view of changes in inventory with immediate reporting of the amount of inventory in stock, and accurately reflects the level of goods on hand. Within this system, a company makes no effort at keeping detailed inventory records of products on hand; rather, purchases of goods are recorded as a debit to the inventory database. Effectively, the cost of goods sold includes such elements as direct labor and materials costs and direct factory overhead costs.",investopedia,1,26.64,16.4,17.1,14.51,18.4,10.31,18,16.09
Perpetuity,"A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end. The formula to calculate the present value of a perpetuity, or security with perpetual cash flows, is as follows:",investopedia,1,47.49,10.4,13.6,8.87,8.6,8.51,11,12.21
Perseroan Terbatas (PT),"Perseroan Terbatas (PT) is the type of legal entity that a foreign company, foreign government, or foreign individual must use to run a revenue-generating business in Indonesia. Also known as a foreign investment limited liability company, a PT is a business entity that allows foreign investors to conduct commercial activities in Indonesia.",investopedia,1,19.71,17,0,14.57,17.9,10.7,20,17.32
Personal Consumption Expenditures (PCE),"The term personal consumption expenditures (PCEs) refers to a measure of imputed household expenditures defined for a period of time. Personal income, PCEs, and the PCE Price Index reading are released monthly in the Bureau of Economic Analysis (BEA) Personal Income and Outlays report. Personal consumption expenditures support the reporting of the PCE Price Index, which measures price changes in consumer goods and services exchanged in the U.S. economy.",investopedia,1,39.67,13.4,15.9,14.86,16.8,11.18,16.5,14.42
Personal Finance,"Personal finance is a term that covers managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. The term often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities.",investopedia,1,27.83,13.9,15.9,16.82,16.3,12.13,14,17.57
Personal Financial Specialist (PFS),A Personal Financial Specialist is specialty credential for CPAs who are expert at helping individuals with all aspects of wealth management. The American Institute of Certified Public Accountants (AICPA) grants the Personal Financial Specialist (PFS) credential only to certified public accountants (CPA) with significant personal financial planning education and experience. Individuals pursue the PFS credential because they want to display their expertise and knowledge as it relates to all aspects of financial planning.,investopedia,1,12.97,17.5,19.9,18.28,20,10.68,20.83333333,17.39
Personal Financial Statement,"The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The statement can help individuals track their financial goals and wealth, and can be used when they apply for credit.",investopedia,1,40.69,13.1,15,13.75,15.2,9.75,15.33333333,14.86
Personal Guarantee,"The term personal guarantee refers to an individual’s legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance. Personal guarantees provide an extra level of protection to credit issuers who want to make sure they will be repaid.",investopedia,1,31.21,14.6,15,12.83,14.6,9.58,15.83333333,14.42
Personal Identification Number (PIN),A personal identification number (PIN) is a numerical code used in many electronic financial transactions. Personal identification numbers are usually issued in association with payment cards and may be required to complete a transaction. The purpose of a personal identification number (PIN) is to add additional security to the electronic transaction process.,investopedia,1,20.08,14.8,16.7,16.24,15.3,10.26,14.33333333,15.38
Personal Income,"Personal income refers to all income collectively received by all individuals or households in a country. Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.",investopedia,1,19.71,17,0,19.85,22.3,11.91,19.5,18.09
Personal Lines Insurance,"Personal lines insurance refers to any kind of insurance that covers individuals against loss that results from death, injury, or loss of property. These insurance lines generally protect people and their families from losses they couldn’t afford to cover on their own. Personal lines insurance makes it possible to do things such as driving a car and owning a home without risking financial ruin. This is not the same as commercial lines insurance, which provides property and casualty coverage for businesses.",investopedia,1,44.07,13.8,17.1,13.58,17.3,10.04,14.625,16.23
Personal Property,"Personal property is a class of property that can include any asset other than real estate. The distinguishing factor between personal property and real estate, or real property, is that personal property is movable; that is, it isn't fixed permanently to one particular location. It is generally not taxed like fixed property.",investopedia,1,37,12.4,15.5,12.29,12.2,8.75,13.33333333,12.3
Personally Identifiable Information (PII),"Personally identifiable information (PII) is information that, when used alone or with other relevant data, can identify an individual. PII may contain direct identifiers (e.g., passport information) that can identify a person uniquely, or quasi-identifiers (e.g., race) that can be combined with other quasi-identifiers (e.g., date of birth) to successfully recognize an individual.",investopedia,1,10.74,18.3,0,16.71,21.3,10.31,20.75,17.39
PEST Analysis,"PEST Analysis (political, economic, social and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.",investopedia,1,23.26,15.6,0,14.45,16.1,12.12,16.25,17.89
Peter Principle,"The Peter Principle is an observation that the tendency in most organizational hierarchies, such as that of a corporation, is for every employee to rise in the hierarchy through promotion until they reach a level of respective incompetence. In other words, a front-office secretary who is quite good at her job may thus be promoted to executive assistant to the CEO for which she is not trained or prepared for—meaning that she would be more productive for the company (and likely herself) if she had not been promoted.",investopedia,1,26.82,20.5,0,11.56,23.7,9.95,31,24.87
Petrodollars,"Petrodollars are U.S. dollars paid to an oil-exporting country for the sale of the commodity. Put simply, the petrodollar system is an exchange of oil for U.S. dollars between countries that buy oil and those that produce it.",investopedia,1,69.11,8.3,0,10.21,11.4,9.15,10.5,9.71
Petroleum,"Petroleum is a naturally occurring liquid found beneath the earth’s surface that can be refined into fuel. Petroleum is a fossil fuel, meaning that it has been created by the decomposition of organic matter over millions of years. Petroleum is formed when large quantities of dead organisms–primarily zooplankton and algae–underneath sedimentary rock are subjected to intense heat and pressure.",investopedia,1,26.1,14.5,15.5,15.37,15.2,11.04,14.5,16.69
What Is Petty Cash?,"A petty cash fund is a small amount of cash kept on hand, in a locked drawer or box, to pay for minor expenses, such as office supplies or reimbursements. A petty cash fund will undergo periodic reconciliations, with transactions also recorded on the financial statements. In larger corporations, each department might have its own petty cash fund.",investopedia,1,51.89,10.8,13,11.02,11.9,9.22,12.66666667,13.93
Phantom Stock Plan,A phantom stock plan is an employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. This type of plan is sometimes referred to as shadow stock.,investopedia,1,42.72,12.3,0,12.18,13,9.76,14.5,16
Philanthropy,Philanthropy involves charitable giving to worthy causes on a large scale. Philanthropy must be more than just a charitable donation. It is an effort an individual or organization undertakes based on an altruistic desire to improve human welfare. Wealthy individuals sometimes establish private foundations to facilitate their philanthropic efforts.,investopedia,1,25.15,12.8,13.8,16.98,13.6,11.66,8.625,14.72
Phillips Curve,"The Phillips curve is an economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment. ",investopedia,1,53.21,10.3,14.2,13.28,13.1,9.57,12.75,12.2
Physical Capital,"Physical capital is one of what economists call the three main factors of production. It consists of tangible, man-made goods that assist in the process of creating a product or service. The machinery, buildings, office or warehouse supplies, vehicles, and computers that a company owns are all considered part of its physical capital.",investopedia,1,45.05,11.4,15,12.41,12.6,9.88,13.16666667,13.12
Pigovian Tax,"A Pigovian (Pigouvian) tax is a tax assessed against private individuals or businesses for engaging in activities that create adverse side effects for society. Adverse side effects are those costs that are not included as a part of the product's market price. These include environmental pollution, strains on public healthcare from the sale of tobacco products, and any other side effects that have an external, negative impact. Pigovian taxes were named after English economist, Arthur Pigou, a significant contributor to early externality theory.",investopedia,1,34.9,15.3,16.3,15.03,19.1,11.29,14.375,18.31
PIIGS,"PIIGS is an offensive acronym for Portugal, Italy, Ireland, Greece, and Spain, which were the weakest economies in the eurozone during the European debt crisis. At the time, the acronym's five countries garnered attention due to their weakened economic output and financial instability, which heightened doubts about the nation's abilities to pay back bondholders and spurred fears that these nations would default on their debts.",investopedia,1,13.96,27.5,0,15.8,38,14.63,21.25,31.54
PIMCO (Pacific Investment Management Co.),"PIMCO, or the Pacific Investment Management Company, is an American investment management firm founded in 1971 in California. The firm focuses on fixed income and manages more than $1.92 trillion in assets. The firm primarily handles portfolio management, account management, and business management.",investopedia,1,31.58,12.4,15.5,16,14.2,10.96,11.83333333,12.23
Pink Sheets,Pink sheets are listings for stocks that trade over-the-counter (OTC) rather than on a major U.S. stock exchange. Many pink sheet listings are for stocks in companies that cannot meet the requirements for listing on a major U.S. stock exchange like the New York Stock Exchange (NYSE). Some companies choose to sell their shares through the over-the-counter network to avoid the greater costs and regulatory requirements for listing on an exchange.,investopedia,1,64.34,10.2,11.9,12.6,15.4,8.59,14.16666667,11.17
Piotroski Score,"The Piotroski Score is a discrete score between zero and nine that reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski Score is used to determine the best value stocks, with nine being the best and zero being the worst.",investopedia,1,56.59,11.1,0,10.51,12.8,8.55,15,13.55
Pip,"Pip is an acronym for ""percentage in point"" or ""price interest point."" A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the pip change is the last (fourth) decimal point. A pip is thus equivalent to 1/100 of 1% or one basis point.",investopedia,1,80.82,5.9,10.7,7.19,7.5,8.93,8.625,10.13
Pitchbook,"A pitchbook is a sales document created by an investment bank or firm that details the main attributes of the firm, which is then used by the firm's sales force to help sell products and services and generate new clients. Pitchbooks are helpful guides for the sales force to remember important benefits and to provide visual aids when presenting to clients.",investopedia,1,57.44,12.8,0,11.15,16.8,10.84,19.25,16.13
Pivot Point,"A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.",investopedia,1,47.42,12.5,15.9,12.48,14.9,9.7,16.83333333,16.8
Planned Obsolescence,"Planned obsolescence describes a strategy of deliberately ensuring that the current version of a given product will become out of date or useless within a known time period. This proactive move guarantees that consumers will seek replacements in the future, thus bolstering demand.",investopedia,1,41.19,12.9,0,14.56,15.5,12.05,14.75,16.04
Platinum,"Platinum is a chemical element, precious metal, and commodity that manufacturers use primarily for jewelry, electronics, and automobiles. It appears on the periodic table of elements by the symbol Pt and atomic number 78. Platinum futures are commodities contracts traded on the CME's COMEX futures exchange (under symbol PL) and the Tokyo Commodity Exchange.  It is also possible to invest in platinum by purchasing shares of an exchange-traded fund that specializes in the commodity.",investopedia,1,16.49,20.3,0,14.92,23.7,11.81,27.25,21.93
Platykurtic,"The term ""platykurtic"" refers to a statistical distribution in which the excess kurtosis value is negative. For this reason, a platykurtic distribution will have thinner tails than a normal distribution will, resulting in fewer extreme positive or negative events. The opposite of a platykurtic distribution is a leptokurtic distribution, in which excess kurtosis is positive.",investopedia,1,27.52,14,15.9,15.84,15.3,9.42,14.16666667,13.14
Pledged Asset,"A pledged asset is a valuable possession that is transferred to a lender to secure a debt or loan. A pledged asset is collateral held by a lender in return for lending funds. Pledged assets can reduce the down payment that is typically required for a loan as well as reduces the interest rate charged. Pledged assets can include cash, stocks, bonds, and other equity or securities.",investopedia,1,57.3,10.8,11.2,9.75,12,9.93,8.875,12.5
Plowback Ratio,"The plowback ratio is a fundamental analysis ratio that measures how much earnings are retained after dividends are paid out. It is most often referred to as the retention ratio. The opposite metric, measuring how much in dividends are paid out as a percentage of earnings, is known as the payout ratio.",investopedia,1,53.92,10,12.5,10.21,10.2,9.05,11.33333333,12.3
Plunge Protection Team (PPT) Definition,"The ""Plunge Protection Team"" (PPT) is a colloquial name given to the Working Group on Financial Markets. Created in 1988 to provide financial and economic recommendations to the U.S. President during turbulent market times, this group is headed by the Secretary of the Treasury; other members include the Chair of the Board of Governors of the Federal Reserve, the Chair of the Securities and Exchange Commission and the Chair of the Commodity Futures Trading Commission (or the aides or officials they designate to represent them).",investopedia,1,34.29,15.5,17.5,12.83,17.7,11.36,20.5,19.32
Point-and-Figure (P&F) Chart,"A point-and-figure chart plots price movements for stocks, bonds, commodities, or futures without taking into consideration the passage of time.",investopedia,1,42.72,12.3,0,17.23,18,10.94,13,12
Point of Purchase (POP),"A point of purchase (POP) is a term used by marketers and retailers when planning the placement of consumer products, such as product displays strategically placed in a grocery store aisle or advertised in a weekly flyer. Similar to this term is the point of sale (POS), which is the point at which a customer purchases and pays for products, such as on a website or at a store checkout. The POP is the area that surrounds the POS, where customers often encounter promotional activities or other products.",investopedia,1,58.66,12.4,11.9,10.17,15.6,9.93,17,14.9
Point of Sale (POS),"Point of sale (POS), a critical piece of a point of purchase, refers to the place where a customer executes the payment for goods or services and where sales taxes may become payable. It can be in a physical store, where POS terminals and systems are used to process card payments or a virtual sales point such as a computer or mobile electronic device.",investopedia,1,55.92,13.4,0,8.95,15.9,9.91,19.5,17.18
Poison Pill,"The term poison pill refers to a defense strategy used by a target firm to prevent or discourage a potential hostile takeover by an acquiring company. Potential targets use this tactic in order to make them look less attractive to the potential acquirer. Although they're not always the first—and best—way to defend a company, poison pills are generally very effective.",investopedia,1,51.18,11.1,14.6,12.42,13.1,9.37,14,13.33
Poisson Distribution,"In statistics, a Poisson distribution is a probability distribution that can be used to show how many times an event is likely to occur within a specified period of time. In other words, it is a count distribution. Poisson distributions are often used to understand independent events that occur at a constant rate within a given interval of time. It was named after French mathematician Siméon Denis Poisson.",investopedia,1,45.76,11.1,13,11.25,10.9,9.12,11.5,12.09
Political Action Committee (Super PAC),"In the U.S., a political action committee (PAC) is a political committee that pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation. PACs are typically formed to represent business, labor, or ideological interests by individuals who wish to privately raise money to donate to a political campaign.",investopedia,1,17.17,17.9,0,15.26,19.9,12.53,21.75,19.82
Political Economy,"Political economy is an interdisciplinary branch of the social sciences that focuses on the interrelationships among individuals, governments, and public policy.",investopedia,1,-9.07,19.7,0,20.83,20.7,12.2,18.5,23.64
Political Risk,"Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control. Political risk is also known as ""geopolitical risk,"" and becomes more of a factor as the time horizon of investment gets longer. They are considered a type of jurisdiction risk.",investopedia,1,36.79,12.5,14.6,13.34,13.1,9.69,12.75,13.29
Ponzi Scheme,A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.,investopedia,1,59.64,9.9,12.5,10.97,11.8,9.89,12.66666667,11.33
Pooled Funds,"Pooled funds are funds in a portfolio from many individual investors that are aggregated for the purposes of investment. Mutual funds, hedge funds, exchange traded funds, pension funds, and unit investment trusts are all examples of professionally managed pooled funds. Investors in pooled funds benefit from economies of scale, which allow for lower trading costs per dollar of investment, and diversification.",investopedia,1,42.41,12.4,14.6,15.26,15.8,11.11,14.16666667,14.68
Population Statistics,"A population is a distinct group of individuals, whether that group comprises a nation or a group of people with a common characteristic. In statistics, a population is the pool of individuals from which a statistical sample is drawn for a study. Thus, any selection of individuals grouped together by a common feature can be said to be a population.",investopedia,1,42.72,12.3,14.6,10.27,11.4,8.84,14,12.67
Pork Barrel Politics,"Pork-barrel politics is the legislator's practice of slipping funding for a local project into a budget. The project may have nothing to do with the bill and may benefit only the legislator's home district. Before a bill gets to a vote, pork-barreling has often greatly inflated its costs through the addition of various legislators' pet projects.",investopedia,1,52.49,10.6,13.6,12.01,12.4,9.92,12.66666667,13.19
Porter Diamond,"The Porter Diamond, properly referred to as the Porter Diamond Theory of National Advantage, is a model that is designed to help understand the competitive advantage that nations or groups possess due to certain factors available to them, and to explain how governments can act as catalysts to improve a country's position in a globally competitive economic environment. The model was created by Michael Porter, a recognized authority on corporate strategy and economic competition, and founder of the Institute for Strategy and Competitiveness at the Harvard Business School. It is a proactive economic theory, rather than one that simply quantifies competitive advantages that a country or region may have. The Porter Diamond is also referred to as ""Porter's Diamond"" or the ""Diamond Model.""",investopedia,1,23.29,17.7,19.8,14.23,19.7,10.04,26.33333333,19.15
Porter's 5 Forces,"Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine corporate strategy. Porter's model can be applied to any segment of the economy to understand the level of competition within the industry and enhance a company's long-term profitability. The Five Forces model is named after Harvard Business School professor, Michael E. Porter.",investopedia,1,42.72,12.3,16.2,15.14,15.6,10.94,15.25,16.5
Portfolio Investment,"A portfolio investment is ownership of a stock, bond, or other financial asset with the expectation that it will earn a return or grow in value over time, or both. It entails passive or hands-off ownership of assets as opposed to direct investment, which would involve an active management role.",investopedia,1,46.1,13,0,10.74,14.2,9.93,16.5,14.8
Portfolio Management,"Portfolio management is the art and science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution.",investopedia,1,30.54,17,0,13.41,19.6,11.14,26,24.05
Portfolio Manager,"A portfolio manager is a person or group of people responsible for investing a mutual, exchange traded or closed-end fund's assets, implementing its investment strategy, and managing day-to-day portfolio trading. A portfolio manager is one of the most important factors to consider when looking at fund investing. Portfolio management can be active or passive, and historical performance records indicate that only a minority of active fund managers consistently beat the market.",investopedia,1,22.04,16.1,18.9,15.67,17.7,10.82,19.5,17.93
Portfolio of Financial Assets,"A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio. Though this is often the case, it does not need to be the rule. A portfolio may contain a wide range of assets including real estate, art, and private investments.",investopedia,1,62.68,8.7,13,11.6,11.9,9.36,11.5,11.51
Portfolio Runoff,"Portfolio runoff is a general concept in portfolio management that describes situations where assets decrease. Runoff can occur for a variety of reasons including the maturation or expiration of securities, liquidation of certain assets, or any other situation where assets decrease or are withdrawn from a portfolio.",investopedia,1,22.24,16,0,15.96,17.5,10.85,18.25,17.91
Portfolio Turnover,"Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by taking either the total amount of new securities purchased or the number of securities sold (whichever is less) over a particular period, divided by the total net asset value (NAV) of the fund. The measurement is usually reported for a 12-month time period.",investopedia,1,40.38,13.2,15,11.26,13.3,9.69,15.5,14.89
Portfolio Variance,"Portfolio variance is a measurement of risk, of how the aggregate actual returns of a set of securities making up a portfolio fluctuate over time. This portfolio variance statistic is calculated using the standard deviations of each security in the portfolio as well as the correlations of each security pair in the portfolio.",investopedia,1,27.66,16,0,12.65,16.2,9.72,20.75,18.15
Position Trader,A position trader buys an investment for the long term in the expectation that it will appreciate in value. This type of trader is less concerned with short-term fluctuations in price and the news of the day unless they alter the trader's long term view of the position.,investopedia,1,55.58,11.5,0,9.46,12.5,8.45,15,13.77
Positive Correlation,"Positive correlation is a relationship between two variables in which both variables move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases.",investopedia,1,33.75,13.6,0,15.37,15.8,8.12,15.25,13.08
Positive Economics,"The term positive economics refers to the objective analysis in the study of economics. Most economists look at what has happened and what is currently happening in a given economy to form their basis of predictions for the future. This investigative process is positive economics. Conversely, a normative economic study bases future predictions on value judgments.",investopedia,1,48.81,9.9,14.9,13.8,11.7,9.97,11.25,14.89
Positive Pay,"Positive pay is an automated cash-management service used by financial institutions employed to deter check fraud. Banks use positive pay to match the checks a company issues with those it presents for payment. Any check considered suspect is sent back to the issuer for examination. The system acts as a form of insurance for a company against fraud, losses, and other liabilities to the bank. There is generally a charge incurred for using it, although some banks now offer the service for a reduced fee or free.",investopedia,1,53.81,10.1,12.3,10.38,10.4,9.22,11.3,11.56
Post-Money Valuation,Post-money valuation is a company's estimated worth after outside financing and/or capital injections are added to its balance sheet. Post-money valuation refers to the approximate market value given to a start-up after a round of financing from venture capitalists or angel investors have been completed. Valuations that are calculated before these funds are added are called pre-money valuations. The post-money valuation is equal to the pre-money valuation plus the amount of any new equity received from outside investors.,investopedia,1,34.76,13.3,14.9,15.32,15.5,8.85,14,13.44
Post-Trade Processing,"Post-trade processing occurs after a trade is complete. At this point, the buyer and the seller compare trade details, approve the transaction, change records of ownership, and arrange for the transfer of securities and cash. Post-trade processing is especially important in markets that are not standardized, such as the over-the-counter (OTC) markets.",investopedia,1,45.46,11.2,13,14.56,14.6,9.35,11.66666667,11.54
Posterior Probability,"A posterior probability, in Bayesian statistics, is the revised or updated probability of an event occurring after taking into consideration new information. The posterior probability is calculated by updating the prior probability using Bayes' theorem. In statistical terms, the posterior probability is the probability of event A occurring given that event B has occurred.",investopedia,1,2.44,17.4,17.5,16.12,15.5,10.38,15.33333333,15.35
Poverty Trap,"A poverty trap is a mechanism that makes it very difficult for people to escape poverty. A poverty trap is created when an economic system requires a significant amount of capital in order to earn enough to escape poverty. When individuals lack this capital, they may also find it difficult to acquire it, creating a self-reinforcing cycle of poverty.",investopedia,1,43.02,12.2,14.1,10.91,11.8,8.63,13.5,13.3
Power Distance Index (PDI),"The power-distance index (PDI) is a measurement of the acceptance of a hierarchy of power and wealth by the individuals who make up the general population of a nation, culture, or business. Developed by Dutch social psychologist Geert Hofstede, the PDI ultimately provides insight into the extent to which regular citizens, or subordinates, accept or challenge the authority of the person or people in charge.",investopedia,1,21.57,18.3,0,13.18,19.8,11.32,23.75,21
Power of Attorney,"A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal). The agent can have broad legal authority or limited authority to make legal decisions about the principal's property, finances, or medical care. The power of attorney is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions.",investopedia,1,28.17,15.8,18.2,12.31,16.4,9.18,20,18.09
Pre-Foreclosure,"Pre-foreclosure refers to the beginning phase of a legal proceeding that ultimately can conclude in property being repossessed from a defaulted borrower. In pre-foreclosure, the lender files a notice of default on the property because the borrowing owner has exceeded the contractual terms for delinquent payments. A notice of default informs the borrowing owner that the lender is pursuing legal actions toward foreclosure.",investopedia,1,33.24,13.8,16.3,15.78,16.3,10.69,15.83333333,15.38
Pre-IPO,"A pre-initial public offering (IPO) placement is a private sale of large blocks of shares before a stock is listed on a public exchange. The buyers are typically private equity firms, hedge funds, and other institutions willing to buy large stakes in the firm. Due to the size of the investments being made and the risks involved, the buyers in a pre-IPO placement usually get a discount from the price stated in the prospective for the IPO.",investopedia,1,49.32,15.9,0,10.11,20.2,10.67,14.83333333,18.52
Pre-Market,The pre-market is the period of trading activity that occurs before the regular market session. The pre-market trading session typically occurs between 8:00 a.m. and 9:30 a.m. EST each trading day. Many investors and traders watch the pre-market trading activity to judge the strength and direction of the market in anticipation for the regular trading session.,investopedia,1,48.81,9.9,12.6,12.69,11.4,9.41,8.75,9.17
Predatory Pricing,"Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly.",investopedia,1,38.82,11.7,0,12.76,11.4,11.03,11.75,15.23
Preemptive Rights,Preemptive rights give a shareholder the opportunity to buy additional shares in any future issue of a company's common stock before the shares are made available to the general public. This right is a contractual clause that is generally available in the U.S. only to early investors in a newly public company or to majority owners who want to protect their stake in the company when and if additional shares are issued.,investopedia,1,34.94,17.3,0,11.09,19.5,10.25,24,18.84
Preference Shares,"Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders. Most preference shares have a fixed dividend, while common stocks generally do not. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.",investopedia,1,43.73,11.9,15.6,15.32,15.1,9.36,14.25,13.92
Preferred Dividend,"A preferred dividend is a dividend that is allocated to and paid on a company's preferred shares. If a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares.",investopedia,1,58.62,10.3,0,10.33,12,8.44,14.5,12.21
Preferred Provider Organizations (PPO),A preferred provider organization (PPO) is a medical care arrangement in which medical professionals and facilities provide services to subscribed clients at reduced rates. PPO medical and healthcare providers are called preferred providers.,investopedia,1,37.81,12.1,0,18.44,16.6,12.59,11.75,12.66
Preferred Stock,"The term ""stock"" refers to ownership or equity in a firm. There are two types of equity—common stock  and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders. The details of each preferred stock depend on the issue.",investopedia,1,56.25,9.1,11.9,12.4,11.3,9.64,8.833333333,10.44
Premium Bond,A premium bond is a bond trading above its face value or in other words; it costs more than the face amount on the bond. A bond might trade at a premium because its interest rate is higher than current rates in the market.,investopedia,1,74.53,8.3,0,5.92,8.7,7.96,12.5,10.62
Prepaid Expense,"A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement. Unlike conventional expenses, the business will receive something of value from the prepaid expense over the course of several accounting periods.",investopedia,1,48.13,12.3,11.9,12.71,14.5,9.81,13.83333333,12.1
Prepayment,"Prepayment is an accounting term for the settlement of a debt or installment loan in advance of its official due date. A prepayment may be the settlement of a bill, an operating expense, or a non-operating expense that closes an account before its due date. A prepayment may be made by an individual, a corporation, or any other type of organization.",investopedia,1,42.41,12.4,15,9.52,11.1,8.27,14.5,13.37
Prepayment Penalty,"A prepayment penalty is usually specified in a clause in a mortgage contract stating that a penalty will be assessed if the borrower significantly pays down or pays off the mortgage before term, usually within the first three years of committing to the loan. The penalty is sometimes based on a percentage of the remaining mortgage balance, or it can be a certain number of months’ worth of interest. Prepayment penalties protect the lender against the financial loss of interest income that would otherwise have been paid over time.",investopedia,1,41.33,14.9,15.5,11.96,17,9.37,19.5,16.37
Prepayment Risk,"Prepayment risk is the risk involved with the premature return of principal on a fixed-income security. When debtors return part of the principal early, they do not have to make interest payments on that part of the principal. That means investors in associated fixed-income securities will not receive interest paid on the principal. The prepayment risk is highest for fixed-income securities, such as callable bonds and mortgage-backed securities (MBS). Bonds with prepayment risk often have prepayment penalties.",investopedia,1,47.38,10.5,14.6,14.5,13.1,8.5,11.7,9.8
Present Value,"Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or debt obligations.",investopedia,1,56.29,11.2,11.2,10.04,12.7,8.63,13.66666667,12.75
Present Value Interest Factor (PVIF),The present value interest factor (PVIF) is a formula used to estimate the current worth of a sum of money that is to be received at some future date. PVIFs are often presented in the form of a table with values for different time periods and interest rate combinations.,investopedia,1,46.61,12.8,0,8.83,12.2,9.04,16.25,14.7
Present Value Interest Factor of Annuity (PVIFA),"The present value interest factor of an annuity is a factor that can be used to calculate the present value of a series of annuities when it is multiplied by the recurring payment amount. The initial deposit earns interest at the interest rate (r), which perfectly finances a series of (n) consecutive withdrawals and may be written as the following formula:",investopedia,1,40.52,15.2,0,11.09,16.9,9.55,21.25,18.1
Present Value of an Annuity,"The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity.",investopedia,1,60.65,9.5,0,9.46,10.4,7.9,11.5,9.71
Preservation of Capital,"Preservation of capital is a conservative investment strategy where the primary goal is to preserve capital and prevent loss in a portfolio. This strategy necessitates investment in the safest short-term instruments, such as Treasury bills and certificates of deposit.",investopedia,1,34.76,13.3,0,16.3,16.1,10.27,16.25,17.03
Press Conference,A press conference is an event organized to officially distribute information and answer questions from the media. Press conferences are also announced in response to specific public relations issues.,investopedia,1,31.38,12.5,0,16.12,13.8,12.52,11.25,16.83
Pretax Earnings,"Pretax earnings is a company's income after all operating expenses, including interest and depreciation, have been deducted from total sales or revenues, but before income taxes have been subtracted. Because pretax earnings exclude taxes, this measure enables the intrinsic profitability of companies to be compared across industries or geographic regions where corporate taxes differ. For instance, while U.S.-based corporations face the same tax rates at the federal level, they face different tax rates at the state level.",investopedia,1,28.47,15.7,16.7,15.84,18.9,11.47,18.5,18.59
Pretax Profit Margin,"The pretax profit margin is a financial accounting tool used to measure the operating efficiency of a company. It is a ratio that tells us the percentage of sales that has turned into profits or, in other words, how many cents of profit the business has generated for each dollar of sale before deducting taxes. The pretax profit margin is widely used to compare the profitability of businesses within the same industry.",investopedia,1,47.12,12.7,14.1,10.74,13.4,9.87,15.66666667,15.16
Price Action,"Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analysis of a stock, commodity or other asset chart. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is a derivative of price action since it uses past prices in calculations that can then be used to inform trading decisions.",investopedia,1,52.19,10.7,13.4,11.72,12,9.57,12.75,12.86
Price Ceiling,"A price ceiling is the mandated maximum amount a seller is allowed to charge for a product or service. Usually set by law, price ceilings are typically applied to staples such as food and energy products when such goods become unaffordable to regular consumers.",investopedia,1,49.15,11.9,0,11.08,12.9,10.11,14.5,15.16
Price Controls,"The term ""price controls"" refers to the legal minimum or maximum prices set for specified goods. Price controls are normally mandated by the government in the free market. They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline, and food. Although it may make certain goods and services more affordable, price controls can often lead to disruptions in the market, losses for producers, and a noticeable change in quality.",investopedia,1,42.21,12.5,14.9,13,14.1,9.27,14.5,16
Price Discovery,"Price discovery is the overall process, whether explicit or inferred, of setting the spot price or the proper price of an asset, security, commodity, or currency. The process of price discovery looks at a number of tangible and intangible factors, including supply and demand, investor risk attitudes, and the overall economic and geopolitical environment. Simply put, it is where a buyer and a seller agree on a price and a transaction occurs.",investopedia,1,34.94,17.3,0,12.66,21.2,11.56,16.66666667,21.62
Price Discrimination,"Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to. In pure price discrimination, the seller charges each customer the maximum price they will pay. In more common forms of price discrimination, the seller places customers in groups based on certain attributes and charges each group a different price.",investopedia,1,56.29,11.2,11.9,13,14.9,8.4,14,11.03
Price/Earnings-to-Growth (PEG) Ratio,"The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while also factoring in the company's expected earnings growth, and it is thought to provide a more complete picture than the more standard P/E ratio.",investopedia,1,48.98,14,0,10.69,17.2,9.29,19.25,16.79
Price Elasticity of Demand,"Price elasticity of demand is a measurement of the change in consumption of a product in relation to a change in its price. Expressed mathematically, it is:",investopedia,1,57.77,8.6,0,9.39,8,8.98,8.25,12.81
Price Fixing,Fixing is the practice of setting the price of a product rather than allowing it to be determined by free-market forces. Fixing a price is illegal if it involves collusion among producers or suppliers to set the price of a product or service.,investopedia,1,58.11,10.5,0,9.28,11.2,8.74,13.75,14.18
Price Leadership,Price leadership occurs when a leading firm in a given industry is able to exert enough influence in the sector that it can effectively determine the price of goods or services for the entire market. This type of firm is sometimes referred to as the price leader.,investopedia,1,56.08,11.3,0,9.52,12.1,9.51,14.25,13.66
Price Level,"Price level is the average of current prices across the entire spectrum of goods and services produced in an economy. In more general terms, price level refers to the price or cost of a good, service, or security in the economy.",investopedia,1,59.13,10.1,0,8.59,10.4,8.89,12.75,11.13
Price Rate of Change Indicator (ROC),"The Price Rate of Change (ROC) is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago. The ROC indicator is plotted against zero, with the indicator moving upwards into positive territory if price changes are to the upside, and moving into negative territory if price changes are to the downside.",investopedia,1,38.49,16,0,12.49,19,9.38,21.75,17.92
Price Sensitivity,"Price sensitivity is the degree to which the price of a product affects consumers' purchasing behaviors. Generally speaking, it's how demand changes with the change in the cost of products.",investopedia,1,56.25,9.1,0,12.11,11.2,10.7,8.5,11.33
Price Skimming,"Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment of the population. The skimming strategy gets its name from ""skimming"" successive layers of cream, or customer segments, as prices are lowered over time.",investopedia,1,54.56,11.9,12.5,12.25,15.4,9.93,15.16666667,13.2
Price Stickiness,"Price stickiness, or sticky prices, is the resistance of market price(s) to change quickly, despite shifts in the broad economy suggesting a different price is optimal. ""Sticky"" is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that the sellers (or buyers) of certain goods are reluctant to change the price, despite changes in input cost or demand patterns.",investopedia,1,43.4,16.2,0,11.85,20.6,10.25,23.5,19.4
Price-Taker,"A price-taker is an individual or company that must accept prevailing prices in a market, lacking the market share to influence market price on its own. All economic participants are considered to be price-takers in a market of perfect competition or one in which all companies sell an identical product, there are no barriers to entry or exit, every company has a relatively small market share, and all buyers have full information of the market. This holds true for producers and consumers of goods and services and for buyers and sellers in debt and equity markets.",investopedia,1,39,15.8,17.1,11.33,17.8,9.83,22,18.63
Price Target,"A price target is an analyst's projection of a security's future price. Price targets can pertain to all types of securities, from complex investment products to stocks and bonds. When setting a stock's price target, an analyst is trying to determine what the stock is worth and where the price will be in 12 or 18 months. Ultimately, price targets depend on the valuation of the company that's issuing the stock.",investopedia,1,61.87,9.1,12.6,9.57,10.2,9.86,11.625,12.75
Price-to-Book Ratio (P/B Ratio),"Companies use the price-to-book ratio (P/B ratio) to compare a firm's market capitalization to its book value. It's calculated by dividing the company's stock price per share by its book value per share (BVPS). An asset's book value is equal to its carrying value on the balance sheet, and companies calculate it netting the asset against its accumulated depreciation.",investopedia,1,43.02,12.2,14.1,11.89,13.3,9.7,13.5,13.98
Price-to-Cash Flow Ratio,"The price-to-cash flow (P/CF) ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share. The ratio uses operating cash flow (OCF), which adds back non-cash expenses such as depreciation and amortization to net income.",investopedia,1,38.66,13.8,0,12.02,15.2,10.75,17,16.27
Price-to-Earnings Ratio (P/E Ratio),The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.,investopedia,1,31.89,18.5,0,14.23,24.6,10.02,12.75,17.65
Price to Free Cash Flow,"Price to free cash flow is an equity valuation metric used to compare a company's per-share market price to its per-share amount of free cash flow (FCF). This metric is very similar to the valuation metric of price to cash flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures (CAPEX) from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth. Companies use this metric when they need to expand their asset bases either in order to grow their businesses or simply to maintain acceptable levels of free cash flow.",investopedia,1,42.68,16.4,16.3,11.38,20.4,9.91,21.66666667,19.41
Price-to-Rent Ratio,"The price-to-rent ratio is the ratio of home prices to annualized rent in a given location. This ratio is used as a benchmark for estimating whether it's cheaper to rent or own property. The price-to-rent ratio is used as an indicator for whether housing markets are fairly valued, or in a bubble.",investopedia,1,62.38,8.9,10.5,8.87,9.5,8.75,10.33333333,10.77
Price-to-Sales (P/S),The price-to-sales (P/S) ratio is a valuation ratio that compares a company’s stock price to its revenues. It is an indicator of the value that financial markets have placed on each dollar of a company’s sales or revenues.,investopedia,1,52.19,10.7,0,9.86,11,9.57,12.5,11.81
Price to Tangible Book Value (PTBV),"The price to tangible book value (PTBV) is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company's balance sheet. The tangible book value number is equal to the company's total book value less than the value of any intangible assets. Intangible assets can be such items as patents, intellectual property, goodwill, etc. The ratio is calculated as:",investopedia,1,45.25,11.3,13.8,10.32,10.9,9.02,12.25,12.71
Price Value of a Basis Point (PVBP),Price value of a basis point (PVBP) is a measure used to describe how a basis point change in yield affects the price of a bond.,investopedia,1,78.93,8.7,0,5.35,10.2,7.96,13,10.4
Price-Weighted Index,"A price-weighted index is a stock index in which each company included in the index makes up a fraction of the total index proportional to that company's share stock price per share. In its simplest form, adding the price of each stock in the index and dividing by the total number of companies determines the index's value.",investopedia,1,51.01,13.2,0,9.7,15,9.21,17.75,15.61
Prima Facie,"Prima facie is a legal claim that has sufficient evidence to proceed to trial or judgment. In Latin, prima facie means “at first sight” or “at first view.""",investopedia,1,74.19,6.4,0,7.82,7.1,9.97,7,8.46
Primary Market,"A primary market is a source of new securities. Often on an exchange, it's where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities. Primary markets are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee its sale to investors.",investopedia,1,35.57,12.9,15.5,13.98,14,10.49,14,15.34
Prime Brokerage,A prime brokerage is a bundled group of services that investment banks and other financial institutions offer to hedge funds and other large investment clients that need to be able to borrow securities or cash in order to engage in netting to achieve absolute returns.,investopedia,1,25.8,20.8,0,12.38,24.5,11.83,29.5,23.33
Prime Cost,"Prime costs are a firm's expenses directly related to the materials and labor used in production. It refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the direct costs of raw materials and labor that are involved in the production of a good. Direct costs do not include indirect expenses, such as advertising and administrative costs.",investopedia,1,39.67,13.4,15.9,12.07,14.2,9.81,12.375,15.58
Principal-Agent Problem,The principal-agent problem is a conflict in priorities between a person or group and the representative authorized to act on their behalf. An agent may act in a way that is contrary to the best interests of the principal.,investopedia,1,51.68,10.9,0,9.63,10.6,8.65,12.75,12.93
Principal-Agent Relationship,"The principal-agent relationship is an arrangement in which one entity legally appoints another to act on its behalf. In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act. The relationship between the principal and the agent is called the ""agency,"" and the law of agency establishes guidelines for such a relationship.",investopedia,1,40.69,13.1,15.5,12.18,14.1,8.32,15.66666667,13.04
"Principal, Interest, Taxes, Insurance (PITI)","Principal, interest, taxes, insurance (PITI) are the sum components of a mortgage payment. Specifically, they consist of the principal amount, loan interest, property tax, and the homeowners insurance and private mortgage insurance premiums.",investopedia,1,29.35,13.3,0,17.22,16.6,10.68,14.25,16.3
Prisoner's Dilemma,The prisoner's dilemma is a paradox in decision analysis in which two individuals acting in their own self-interests do not produce the optimal outcome.,investopedia,1,30.2,15,0,13.47,15.9,12.06,18,19.6
Private Banking,"Private banking consists of personalized financial services and products offered to the high-net-worth individual (HNWI) clients of a retail bank or other financial institution. It includes a wide range of wealth management services, and all provided under one roof. Services include investing and portfolio management, tax services, insurance, and trust and estate planning.",investopedia,1,36.59,12.6,14.6,16.59,16.1,11.37,12.83333333,13.87
Private Company,"A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO). As a result, private firms do not need to meet the Securities and Exchange Commission's (SEC) strict filing requirements for public companies. In general, the shares of these businesses are less liquid, and their valuations are more difficult to determine.",investopedia,1,51.89,10.8,13.8,12.42,13.1,9.72,13.125,13.43
Private Equity,"Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet.",investopedia,1,27.15,16.2,17.1,14.34,18,10.43,19.5,15.74
Private Equity Real Estate,"Private equity real estate is an alternative asset class composed of professionally managed pooled private and public investments in the real estate markets. Investing in private equity real estate involves the acquisition, financing, and ownership (either direct or indirect) of property or properties via an investment fund.",investopedia,1,13.78,17.2,0,16.83,18.4,12.19,18.25,19.61
Private Finance Initiative,A private finance initiative (PFI) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects.,investopedia,1,44.75,11.5,0,12.41,12.4,9.79,12.5,12.76
Private Good,"A private good is a product that must be purchased to be consumed, and consumption by one individual prevents another individual from consuming it. In other words, a good is considered to be a private good if there is competition between individuals to obtain the good and if consuming the good prevents someone else from consuming it.",investopedia,1,34.09,15.6,0,10.97,15.9,8.65,19.25,15.61
Private Investment Fund,"A private investment fund is an investment company that does not solicit capital from retail investors or the general public. Members of a private investment company typically have deep knowledge of the industry as well as investments elsewhere. To be classified as a private fund, a fund must meet one of the exemptions outlined in the Investment Company Act of 1940. The 3C1 or 3C7 exemptions within the Act are frequently used to establish a fund as a private investment fund. There is an advantage to maintaining private investment fund status, as the regulatory and legal requirements are much lower than what is required for funds that are traded publicly.",investopedia,1,49.15,11.9,15.6,11.49,13.3,9.18,14.8,13.53
Private Investment in Public Equity (PIPE),"Private investment in public equity (PIPE) is the buying of shares of publicly traded stock at a price below the current market value (CMV) per share. This buying method is a practice of investment firms, mutual funds, and other large, accredited investors. A traditional PIPE is one in which common or preferred stock is issued at a set price to the investor, while a structured PIPE issues common or preferred shares of convertible debt.",investopedia,1,54.86,11.7,11.9,10.91,14.3,10.41,14.66666667,13.12
Private Placement,A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.,investopedia,1,29.86,19.3,0,11.33,22.1,11.06,13.75,21.28
Private Sector,"The private sector is the part of the economy that is run by individuals and companies for profit and is not state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by the government. Companies and corporations that are government run are part of what is known as the public sector, while charities and other nonprofit organizations are part of the voluntary sector.",investopedia,1,40.38,13.2,15.9,12.42,14,8.75,16.16666667,15.49
Privatization,"Privatization occurs when a government-owned business, operation, or property becomes owned by a private, non-government party. Note that privatization also describes the transition of a company from being publicly traded to becoming privately held. This is referred to as corporate privatization.",investopedia,1,23.73,13.4,14.6,17.33,14.9,10.09,10.83333333,11.33
Privileged Communication,"Privileged communication is an interaction between two parties in which the law recognizes a private, protected relationship. Whatever is communicated between the two parties must remain confidential, and the law cannot force their disclosure.",investopedia,1,20.38,14.6,0,17.57,16.2,10.52,13.5,18.56
Pro Forma,"Pro forma, a Latin term that means “for the sake of form” or “as a matter of form”, is a method of calculating financial results using certain projections or presumptions.",investopedia,1,49.49,13.8,0,10.17,15.8,10.91,19,17.33
Pro Forma Invoice,"A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information, such as the shipping weight and transport charges.",investopedia,1,58.62,10.3,0,11.6,12.9,10.69,13,12.21
Pro Rata,"Pro rata is a Latin term used to describe a proportionate allocation. It essentially translates to ""in proportion,"" which means a process where whatever is being allocated will be distributed in equal portions.",investopedia,1,46.27,10.9,0,12.82,12.2,10.68,11.75,15.08
Probability Density Function (PDF),"Probability density function (PDF) is a statistical expression that defines a probability distribution (the likelihood of an outcome) for a discrete random variable (e.g., a stock or ETF) as opposed to a continuous random variable.",investopedia,1,19.03,19.3,0,14.81,23,13.49,25.5,22
Probability Distribution,"A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. This range will be bounded between the minimum and maximum possible values, but precisely where the possible value is likely to be plotted on the probability distribution depends on a number of factors. These factors include the distribution's mean (average), standard deviation, skewness, and kurtosis.",investopedia,1,22.45,15.9,16.3,14.97,16.9,10.43,17,15.61
Probate,Probate is the term for a legal process in which a will is reviewed to determine whether it is valid and authentic. Probate also refers to the general administering of a deceased person's will or the estate of a deceased person without a will.,investopedia,1,57.61,10.7,0,8.7,11,9.39,13,11.53
Probate Court,"Probate court is a segment of the judicial system that primarily handles such matters as wills, estates, conservatorships, and guardianships, as well as the commitment of mentally ill persons to institutions designed to help them. When wills are contested, for example, the probate court is responsible for ruling on the authenticity of the document and the mental stability of the person who signed it. The court also decides who receives which portion of the decedent's assets, based on the instructions in the will or—barring that—other laws in place.",investopedia,1,41.74,14.7,15,13.41,18.3,11.19,19,17.63
Procurement,"Procurement is the act of obtaining goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale.",investopedia,1,28.33,13.7,0,16.24,15.3,10.82,14.75,19.57
Procyclic,Procyclic describes a state where the behavior and actions of a measurable product or service move in tandem with the cyclical condition of the economy.,investopedia,1,46.1,13,0,12.48,15.2,11.19,16.5,16.4
Producer Price Index (PPI),"The producer price index (PPI), published by the Bureau of Labor Statistics (BLS), is a group of indexes that calculates and represents the average movement in selling prices from domestic production over time.",investopedia,1,29.52,17.3,0,13.36,20.5,13.41,24.5,22.9
Producer Surplus,Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market. A producer surplus is generated by market prices in excess of the lowest price producers would otherwise be willing to accept for their goods. This may relate to Walras' law.,investopedia,1,58.82,10.2,12.2,9.57,11,7.33,12.875,10.73
Product Differentiation,Product differentiation is a marketing strategy designed to distinguish a company's products or services from the competition. Successful product differentiation involves identifying and communicating the unique qualities of a product or company while highlighting the distinct differences between that product or company and its competitors. Product differentiation goes hand in hand with developing a strong value proposition so that a product or service is attractive to a target market or audience.,investopedia,1,13.58,17.3,18.2,17.99,19,10.37,18.83333333,19.06
Product Life Cycles,"The term product life cycle refers to the length of time a product is introduced to consumers into the market until it's removed from the shelves. The life cycle of a product is broken into four stages—introduction, growth, maturity, and decline. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging. The process of strategizing ways to continuously support and maintain a product is called product life cycle management.",investopedia,1,48.64,12.1,13.4,13.06,14.8,10.72,14.5,14.33
Product Line,"A product line is a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.",investopedia,1,48.64,12.1,0,11.61,13.4,9.66,15.25,15.22
Product Portfolio,"A product portfolio is the collection of all the products or services offered by a company. Product portfolio analysis can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk. This is essential for investors conducting equity research by investors or analysts supporting internal corporate financial planning.",investopedia,1,26.81,14.2,16.7,17.64,17.1,13.17,15.16666667,17.42
Production Costs,"Production costs refer to all the costs incurred by a business from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.",investopedia,1,26.81,14.2,0,14.91,15,10.4,14.5,14.97
Production Efficiency,Production efficiency is an economic term describing a level in which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product. This happens when production is reportedly occurring along a production possibility frontier (PPF).,investopedia,1,23.26,15.6,0,15.5,16.6,11.07,18.75,18.78
Production Possibility Frontier (PPF),"In business analysis, the production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture.",investopedia,1,34.94,17.3,0,13.41,21.6,11.12,24,21.07
Profit and Loss Statement (P&L),"The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. The P&L statement is synonymous with the income statement.",investopedia,1,44.24,11.7,0,13.11,13.7,10.96,12.75,14.97
Profit Before Tax (PBT),Profit before tax is a measure that looks at a company's profits before the company has to pay corporate income tax. It essentially is all of a company’s profits without the consideration of any taxes.,investopedia,1,45.25,11.3,0,9.63,9.8,8.56,11.75,12.71
Profit Centers,"A profit center is a branch or division of a company that directly adds or is expected to add to the entire organization's bottom line. It is treated as a separate, standalone business, responsible for generating its revenues and earnings. Its profits and losses are calculated separately from other areas of the business. Peter Drucker coined the term ""profit center"" in 1945.",investopedia,1,47.28,10.5,12.2,11.13,10.3,10.01,10.25,11.36
Profit Margin,"Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the business has generated for each dollar of sale. For instance, if a business reports that it achieved a 35% profit margin during the last quarter, it means that it had a net income of $0.35 for each dollar of sales generated.",investopedia,1,57.81,10.6,12.2,9.63,11.9,8.89,13.375,11.94
Profit-Sharing Plan,"A profit-sharing plan is a retirement plan that gives employees a share in the profits of a company. Under this type of plan, also known as a deferred profit-sharing plan (DPSP), an employee receives a percentage of a company’s profits based on its quarterly or annual earnings. This is a great way for a business to give its employees a sense of ownership in the company, but there are typically restrictions as to when and how a person can withdraw these funds without penalties.",investopedia,1,51.52,13,15.9,9.87,14.9,9.35,19,15.96
Profits Interest,Profits interest refers to an equity right based on the future value of a partnership awarded to an individual for their service to the partnership. The award consists of receiving a percentage of profits from a partnership without having to contribute capital.,investopedia,1,41.7,12.7,0,12.82,13.8,9.94,15.5,15.07
Profitability Index,"The profitability index (PI), alternatively referred to as value investment ratio (VIR) or profit investment ratio (PIR), describes an index that represents the relationship between the costs and benefits of a proposed project. It is calculated as the ratio between the present value of future expected cash flows and the initial amount invested in the project. A higher PI means that a project will be considered more attractive.",investopedia,1,39.97,13.3,14.6,13.06,15.1,10.8,15.33333333,15.55
Profitability Ratios,"Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity over time, using data from a specific point in time.",investopedia,1,21.4,20.5,0,13.77,24.4,13.37,29.5,25.18
Program Evaluation Review Technique (PERT),"A PERT chart is a project management tool that provides a graphical representation of a project's timeline. The Program Evaluation Review Technique (PERT) breaks down the individual tasks of a project for analysis. PERT charts are considered preferable to Gantt charts because they identify task dependencies, but they're often more difficult to interpret.",investopedia,1,36.12,14.8,0,15.61,19,11.8,12.5,18.9
Progress Billings,Progress billings are invoices requesting payment for work completed to date. Progress billings are prepared and submitted for payment at different stages in the process of a major project.,investopedia,1,65.22,7.8,0,13.91,12,9.8,8.75,11.32
Progressive Tax,A progressive tax is based on the taxpayer's ability to pay. It imposes a lower tax rate on low-income earners than on those with a higher income. This is usually achieved by creating tax brackets that group taxpayers by income ranges.,investopedia,1,66.03,7.5,12.5,8.98,7.8,9.71,8.5,12.31
Project Finance,"Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.",investopedia,1,50.16,11.5,0,15.03,16.2,11.07,14.5,15.07
Project Management,"Project management involves the planning and organization of a company's resources to move a specific task, event, or duty towards completion. It can involve a one-time project or an ongoing activity, and resources managed include personnel, finances, technology, and intellectual property.",investopedia,1,16.83,16,0,16.65,17.6,12.36,15.75,18.93
Projected Benefit Obligation (PBO),"A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the present time to cover future pension liabilities. This measurement is used to determine how much must be paid into a defined benefit pension plan to satisfy all pension entitlements that have been earned by employees up to that date, adjusted for expected future salary increases.",investopedia,1,31.55,16.6,0,12.95,18.5,10.01,23.5,20.79
Promissory Estoppel,"Promissory estoppel is the legal principle that a promise is enforceable by law, even if made without formal consideration when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment. Promissory estoppel is intended to stop the promisor from arguing that an underlying promise should not be legally upheld or enforced. The doctrine of promissory estoppel is part of the law in the United States and other countries, although the precise legal requirements for promissory estoppel vary not only between countries but also between different jurisdictions, such as states, within the same country.",investopedia,1,36.97,16.6,15.5,13.76,20.6,9.35,21.33333333,17.52
Promissory Note,"A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature.",investopedia,1,27.49,18.1,0,11.56,20,10.34,24.5,20.86
Promoter,"A stock promoter is an individual or organization that helps raise money for some investment activity. Stock promoters may raise money for a company by offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often, promoters are paid in company stock, or they receive a percentage of the capital raised.",investopedia,1,26.51,14.4,17.5,14.45,14.5,9.22,16,16.69
Promotion,"In terms of a career, a promotion refers to the advancement of an employee's rank or position in a hierarchical structure. In marketing, promotion refers to a different sort of advancement. A sales promotion entails the features—via advertising and/or a discounted price—of a particular product or service. Product promotions can also be classified as ""sales"" or ""specials.""",investopedia,1,40.04,11.2,14.2,13.27,12,10.44,10.875,13.44
Proof of Funds (POF),"Proof of funds (POF) refers to a document or documents that demonstrate a person or entity has the ability and funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.",investopedia,1,49.45,11.8,15,10.39,12.4,10.3,15.16666667,15.45
Proof of Stake (PoS),"The Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins they hold. This means that the more coins owned by a miner, the more mining power they have.",investopedia,1,77.06,7.4,0,8.12,9.6,8.65,11.25,10.88
Proof of Work (PoW),"Proof of work (PoW) describes a system that requires a not-insignificant but feasible amount of effort in order to deter frivolous or malicious uses of computing power, such as sending spam emails or launching denial of service attacks. The concept was subsequently adapted to securing digital money by Hal Finney in 2004 through the idea of ""reusable proof of work"" using the SHA-256 hashing algorithm.",investopedia,1,38.49,16,0,12.78,19.4,13.26,21.25,19.15
Property,"Property is a term describing anything that a person or a business has legal title over, affording owners certain enforceable rights over said items. Examples of property, which may be tangible or intangible, include automotive vehicles, industrial equipment, furniture, and real estate—the last of which is often referred to as ""real property."" Most properties hold current or potential monetary value and are therefore considered to be assets. But properties can simultaneously be liabilities in some situations. Case in point: if a customer sustains an injury on a company's property, the business owner may be legally responsible for paying the injured party's medical bills.",investopedia,1,33.65,13.7,15.9,14.27,15.2,10.48,14.8,16.01
Property Insurance,Property insurance is a broad term for a series of policies that provide either property protection coverage or liability coverage for property owners. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in case there is damage or theft—and to a person other than the owner or renter if that person is injured on the property.,investopedia,1,31.04,16.8,0,12.49,18.2,9.46,22.25,17.04
Property Management,"Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties. They usually work for the owners of investment properties such as apartment and condominium complexes, private home communities, shopping centers, and industrial parks.",investopedia,1,1.73,17.7,18.6,19.78,19.2,11.9,16.66666667,19.62
"Property, Plant, and Equipment (PP&E)","Property, plant, and equipment (PP&E) are long-term assets vital to business operations and not easily converted into cash. Property, plant, and equipment are tangible assets, meaning they are physical in nature or can be touched. The total value of PP&E can range from very low to extremely high compared to total assets.",investopedia,1,53.92,10,12.5,11.42,12,9.96,11.33333333,12.3
Property Rights,"Property rights define the theoretical and legal ownership of resources and how they can be used. These resources can be both tangible or intangible and can be owned by individuals, businesses, and governments.",investopedia,1,37.81,12.1,0,12.99,12.2,10.68,12.25,16.3
Property Tax,"Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax. It is calculated by a local government where the property is located and paid by the owner of the property. The tax is usually based on the value of the owned property, including land. However, many jurisdictions also tax tangible personal property, such as cars and boats.",investopedia,1,45.96,11,15.4,9.34,9.5,8.79,13,13.39
Property Tax Deduction,"State and local property taxes are generally eligible to be deducted from the property owner's federal income taxes. Deductible real estate taxes include any state, local, or foreign taxes that are levied for the general public welfare. They do not include taxes charged for home renovations or for services like trash collection.",investopedia,1,37,12.4,13,12.87,12.5,10.26,11.66666667,12.3
Proportional Tax,"A proportional tax is an income tax system that levies the same percentage tax to everyone regardless of income. A proportional tax is the same for low, middle, and high-income taxpayers. Proportional taxes are sometimes referred to as flat taxes.",investopedia,1,42.72,12.3,0,12.18,13.2,7.79,8.333333333,12
Proprietary Trading,"Proprietary trading refers to a financial firm or commercial bank that invests for direct market gain rather than earning commission dollars by trading on behalf of clients. Also known as ""prop trading,"" this type of trading activity occurs when a financial firm chooses to profit from market activities rather than thin-margin commissions obtained through client trading activity. Proprietary trading may involve the trading of stocks, bonds, commodities, currencies or other instruments.",investopedia,1,38.96,13.7,15.5,16.42,18.2,11.26,16.5,15.11
Proration,"Proration is a situation that can arise during a corporate action, such as an acquisition, where a company splits its original cash and equity offer in response to shareholder preferences.",investopedia,1,24.11,17.4,0,13.47,18.5,10.91,24,22.67
Prospect Theory,"Prospect theory assumes that losses and gains are valued differently, and thus individuals make decisions based on perceived gains instead of perceived losses. Also known as the ""loss-aversion"" theory, the general concept is that if two choices are put before an individual, both equal, with one presented in terms of potential gains and the other in terms of possible losses, the former option will be chosen.",investopedia,1,29.52,17.3,0,12.78,19.7,10.3,22,17.44
Prospectus,"A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds. The document can help investors make more informed investment decisions because it contains a host of relevant information about the investment security.",investopedia,1,41.7,12.7,15.5,13.87,14.9,10.69,15.16666667,15.38
Provision,"A contract provision is a stipulation within a contract, legal document, or a law. A contract provision often requires action by a specific date or within a specified period of time. Contract provisions are intended to protect the interests of one or both parties in a contract.",investopedia,1,39.16,13.6,0,11.15,13.7,9.84,11.16666667,17.06
Provision For Credit Losses (PCL),"The provision for credit losses (PCL) is an estimation of potential losses that a company might experience due to credit risk. The provision for credit losses is treated as an expense on the company's financial statements. They are expected losses from delinquent and bad debt or other credit that is likely to default or become unrecoverable. If, for example, the company calculates that accounts over 90 days past due have a recovery rate of 40%, it will make a provision for credit losses based on 40% of the balance of these accounts.",investopedia,1,48.13,12.3,14.2,10.45,13,9.41,15.25,13.98
Proxy,"A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting. Shareholders not attending a company's annual general meeting (AGM) may vote their shares by proxy by allowing someone else to cast votes on their behalf, or they may vote by mail.",investopedia,1,48.98,14,0,10.05,16,9.81,19.75,16.79
Proxy Fight,"A proxy fight refers to the act of a group of shareholders joining forces and attempting to gather enough shareholder proxy votes to win a corporate vote. Sometimes referred to as a ""proxy battle,” this action is mainly used in corporate takeovers.",investopedia,1,67.08,9.1,0,10.73,12.3,9.57,13,12.21
Proxy Statement,"A proxy statement is a document containing the information the Securities and Exchange Commission (SEC) requires companies to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual or special stockholder meeting. Issues covered in a proxy statement can include proposals for new additions to the board of directors, information on directors' salaries, information on bonus and options plans for directors, and any declarations made by the company's management.",investopedia,1,23.43,19.7,0,15.27,24.6,12.05,29.5,24.32
Proxy Vote,"The term proxy vote refers to a ballot cast by a single person or firm on behalf of a corporation's shareholder who may not be able to attend a shareholder meeting, or who may not choose to vote on a particular issue. Shareholders receive a proxy ballot in the mail along with an information booklet called a proxy statement, which describes the issues to be voted on during the meeting. Shareholders vote on a variety of issues including the election of board members, merger or acquisition approvals, or approving a stock compensation plan.",investopedia,1,48.47,14.2,14.6,10.86,16.9,9.76,19.5,16.7
Public Company,"A public company—also called a publicly traded company—is a corporation whose shareholders have a claim to part of the company's assets and profits. Through the free trade of shares of stock on stock exchanges or over-the-counter (OTC) markets, ownership of a public company is distributed among general public shareholders.",investopedia,1,38.15,14,0,14.74,17.3,9.69,17.75,13.88
Public Company Accounting Oversight Board (PCAOB),The Public Company Accounting Oversight Board (PCAOB) is a non-profit organization that regulates auditors of publicly traded companies. The purpose of PCAOB is to minimize audit risk.,investopedia,1,32.39,12.1,0,15.01,12.9,13.08,10.75,14.29
Public Good,"In economics, a public good refers to a commodity or service that is made available to all members of a society. Typically, these services are administered by governments and paid for collectively through taxation.",investopedia,1,45.76,11.1,0,12.64,12.1,10.05,12.5,16.21
Public Limited Company (PLC),A public limited company (PLC) is a public company in the United Kingdom. PLC is the equivalent of a U.S. publicly traded company that carries the Inc. or corporation designation. The use of the PLC abbreviation after the name of a company is mandatory and communicates to investors and to anyone dealing with the company that it is a publicly traded corporation.,investopedia,1,42,12.5,15,10.21,11.8,8.74,14.66666667,12.8
Public-Private Partnerships,"Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place. Public-private partnerships often involve concessions of tax or other operating revenue, protection from liability, or partial ownership rights over nominally public services and property to private sector, for-profit entities.",investopedia,1,17.68,17.8,19.6,18.16,22,11.23,22.33333333,19.3
Pullback,"A pullback is a pause or moderate drop in a stock or commodities pricing chart from recent peaks that occur within a continuing uptrend. A pullback is very similar to retracement​ or consolidation, and the terms are sometimes used interchangeably. The term pullback is usually applied to pricing drops that are relatively short in duration - for example, a few consecutive sessions - before the uptrend resumes.",investopedia,1,40.99,12.9,14.6,13.05,14.6,10.79,15.16666667,16.06
Pump-and-Dump Scheme,"Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. These recommendations are based on false, misleading, or greatly exaggerated statements. The perpetrators of a pump-and-dump scheme already have an established position in the company's stock and will sell their positions after the hype has led to a higher share price.",investopedia,1,42.72,12.3,14.1,14.16,14.9,9.37,13.66666667,14.67
Pump Priming,"Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions. The term pump priming is derived from the operation of older pumps - a suction valve had to be primed with water so that the pump would function properly.",investopedia,1,36.63,14.6,0,11.9,15.5,10.7,18.25,17.32
Purchase Annual Percentage Rate (APR),"A purchase annual percentage rate, or APR, is the interest charge that is added monthly to the outstanding balance due on a credit card.",investopedia,1,55.58,11.5,0,9.58,12.8,11.41,16,16.27
Purchasing Managers' Index (PMI),"The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.",investopedia,1,32.22,14.2,16.3,14.91,16.6,11.43,16.33333333,16.07
Purchase Money Security Interest (PMSI),"The term purchase money security interest (PMSI) refers to a legal claim that allows a lender to either repossess property financed with its loan or to demand repayment in cash if the borrower defaults. It gives the lender priority over claims made by other creditors. In simpler terms, a PSMI gives initial claims on property to entities that finance purchases made by a consumer or other debtor.",investopedia,1,48.84,12,14.1,11.15,13,11.58,14.83333333,14.89
Purchase-Money Mortgage,"A purchase-money mortgage is a mortgage issued to the borrower by the seller of a home as part of the purchase transaction. Also known as a seller or owner financing, this is usually done in situations where the buyer cannot qualify for a mortgage through traditional lending channels. A purchase-money mortgage can be used in situations where the buyer is assuming the seller's mortgage, and the difference between the balance on the assumed mortgage and the sales price of the property is made up of seller financing.",investopedia,1,42.04,14.6,15.5,11.67,16.5,8.7,19.16666667,15.74
Purchase Price,"The purchase price is the price an investor pays for an investment, and the price becomes the investor’s cost basis for calculating gain or loss when selling the investment. The purchase price includes any commission or sales charges paid for the investment, and the weighted average cost is used for multiple purchases of the same security.",investopedia,1,51.52,13,0,12.54,16.9,10.1,18.5,16.2
Purchasing Power,"Purchasing power is the value of a currency expressed in terms of the number of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the number of goods or services you would be able to purchase.",investopedia,1,55.58,11.5,0,9.87,12.8,7.79,15,12.93
Pure Play,A pure play is a company that focuses solely on one type of product or service. Some investors prefer investing in pure plays because they are easier to analyze and give maximum exposure to a particular market segment.,investopedia,1,43.73,11.9,0,10.04,10.5,10.4,13.5,14.97
Pure Risk,Pure risk is a category of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved.,investopedia,1,70.63,7.8,0,7.13,7.8,8.11,8.75,9.29
Push Down Accounting,"Pushdown accounting is a bookkeeping method used by companies to record the purchase of another company. The acquirer’s accounting basis is used to prepare the financial statements of the purchased entity. In the process, the assets and liabilities of the target company are updated to reflect the purchase cost rather than the historical cost.",investopedia,1,44.75,11.5,15,13.69,13.3,10.09,13.33333333,13.87
Put,"A put is an options contract that gives the owner the right, but not the obligation, to sell a certain amount of the underlying asset, at a set price within a specific time. The buyer of a put option believes that the underlying stock will drop below the exercise price before the expiration date. The exercise price is the price that the underlying asset must reach for the put option contract to hold value.",investopedia,1,54.86,11.7,12.5,8.88,12.3,7.64,15,12.58
Put-Call Ratio,The put-call ratio is the ratio of the trading volume of put options to call options and is used as an indicator of investor sentiment in the markets.,investopedia,1,51.52,13,0,8.07,13.2,9.54,16,14.06
Pyramid Scheme,"A pyramid scheme is an illegal investment scam based on a hierarchical setup of network marketing. The most famous kind of pyramid scheme is, perhaps, the Ponzi scheme.",investopedia,1,57.27,8.8,0,10.49,9.3,11.1,8,11.31
Q,"The letter Q used to be part of the ticker symbol for a stock trading on the Nasdaq, specifying that a particular company was in bankruptcy proceedings. If the letter Q appeared as the final letter of a NASDAQ symbol, it meant, ""bankrupt: issuer has filed for bankruptcy,"" as the Nasdaq put it.",investopedia,1,53.04,12.4,0,8.54,13.3,9.12,16.25,13.62
Q Ratio (Tobin's Q),"The Q ratio, also known as Tobin's Q, equals the market value of a company divided by its assets' replacement cost. Thus, equilibrium is when market value equals replacement cost. At its most basic level, the Q Ratio expresses the relationship between market valuation and intrinsic value. In other words, it is a means of estimating whether a given business or market is overvalued or undervalued.",investopedia,1,54.73,9.7,13,11.25,11,9,11.25,12.66
Qatar Investment Authority (QIA),"The Qatar Investment Authority (QIA) is a government-owned entity charged with managing the sovereign wealth fund of Qatar. QIA’s mission is to invest, manage and grow Qatar’s reserves in order to support the development of Qatar’s economy. Though Qatar’s population is relatively small, its sovereign wealth fund is among the largest in the world, and it has among the world's lowest unemployment.",investopedia,1,50.46,11.4,14.6,13.29,14.5,11.03,14.33333333,14.73
Qatari Riyal (QAR),"QAR is the currency code for the Qatari riyal, the currency of the State of Qatar which is located along the coast of the Arabian Peninsula. The Qatari riyal is made up of 100 dirhams. The abbreviation for the currency is QR, in English. Riyal is also frequently referred to as rial.",investopedia,1,70.84,7.7,12.5,7.77,8.3,9.35,7.5,11.54
QQQQ,"The QQQQ is the original ticker symbol for the Nasdaq 100 Trust, an ETF that trades on the Nasdaq exchange. This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq. It is also known as ""cubes"" or the ""quadruple-Qs"" and is now listed under the Invesco QQQ Trust or its current ticker symbol: QQQ.",investopedia,1,63.32,10.6,11.2,9.58,13.2,11.05,14.33333333,12.58
QSEHRA,"A qualified small employer health reimbursement arrangement (QSEHRA), also known as a small business HRA, is a health coverage subsidy plan designed for employees of businesses with fewer than 50 full-time employees. Any money reimbursed is tax-free for employees and tax-deductible by employers.",investopedia,1,32.73,14,0,16.01,17.3,10.58,16.75,16.97
Qstick Indicator,"The Qstick indicator is a technical analysis indicator developed by Tushar Chande to numerically identify trends on a price chart. It is calculated by taking an 'n' period moving average of the difference between the open and closing prices. A Qstick value greater than zero means that the majority of the last 'n' days have been up, indicating that buying pressure has been increasing.",investopedia,1,41.4,12.8,15.5,11.26,13,10.61,15.33333333,16.02
Qtum,Qtum is a cryptocurrency that combines ethereum’s smart contract functionality with bitcoin’s security to create a coin that is suitable for adoption by large organizations.,investopedia,1,29.18,15.4,0,17.35,19.1,12.46,16.5,16.4
Quadrix,"Quadrix is a stock rating system that uses over 90 variables in seven major categories to determine the value of a stock. The Quadrix system is produced and maintained by Horizon Publishing Company. The seven major categories are momentum, quality, value, financial strength, earnings estimates, performance, and reversion. The overall score for a particular stock is determined by a weighted average of all 90 variables.",investopedia,1,40.99,12.9,15.5,13.92,15.5,10.79,11.625,16.06
Quadruple Witching,"Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September, and December.",investopedia,1,36.12,14.8,0,14.22,18,8.23,15.25,11.35
Qualification Ratio,"The term qualification ratio refers to the measure of a borrower's creditworthiness that helps lenders decide whether to extend them credit. Used in the underwriting process, a qualification ratio calculates how likely it would be for a borrower to repay a loan.",investopedia,1,41.7,12.7,0,12.71,13.8,9.94,14,14.11
Qualified Adoption Expenses (QAE),"Qualified adoption expenses are the necessary costs paid to adopt a child younger than 18 years of age or any disabled person who requires care. In the United States, qualified adoption expenses (QAE) are those expenses that the Internal Revenue Service (IRS) defines as reasonable and necessary, including adoption fees, court costs, attorney fees, travel costs, and other expenses directly related to the adoption. These fees can be used to claim an adoption credit or exclusion that reduces the adopting parents' taxable income.",investopedia,1,43.36,14.1,15.9,13.58,18,10.72,18.83333333,15.9
Qualified Annuity,"A qualified annuity is a retirement savings plan that is funded with pre-tax dollars. A non-qualified annuity is funded with post-tax dollars. To be clear, the terminology comes from the Internal Revenue Service (IRS).",investopedia,1,43.09,10.1,11.9,11.58,9.9,9.77,7,10.4
Qualified Appraisal,A qualified appraisal is an appraisal that meets the requirements set forth by the Internal Revenue Service (IRS) and is conducted by a qualified appraiser. Qualified appraisals are made no earlier than 60 days before a piece of property is donated.,investopedia,1,50.67,11.3,0,12.13,13.2,10.43,15.25,16
Qualified Automatic Contribution Arrangements (QACAs),"Qualified automatic contribution arrangements (QACAs) refer to a rule established under the Pension Protection Act of 2006 to increase worker participation in self-funded retirement plans. Such plans include 401(k)s, 403(b)s, and deferred compensation 457s. Companies that use QACAs automatically enroll workers in the plans at a deferral rate at or above 3%, unless employees take action to opt out.",investopedia,1,34.56,13.3,15.5,14.97,15.7,13.45,14.5,16.69
Qualified Charitable Organization,"A qualified charitable organization is a nonprofit organization that qualifies for tax-exempt status according to the U.S. Treasury. Qualified charitable organizations include those operated exclusively for religious, charitable, scientific, literary or educational purposes, or the prevention of cruelty to animals or children, or the development of amateur sports.",investopedia,1,-20.57,22.1,0,20.6,22.1,13.38,24,25.43
Qualified Disclaimer,"A qualified disclaimer is a refusal to accept property that meets the provisions set forth in the Internal Revenue Code (IRC) Tax Reform Act of 1976, allowing for the property or interest in property to be treated as an entity that has never been received. Section 2518 of the IRC permits a beneficiary of an estate or trust to make a qualified disclaimer so that it is as though the beneficiary never received the property, for tax purposes.",investopedia,1,31.89,18.5,0,10.17,20.3,10.23,26.5,20.22
Qualified Distribution,"The term qualified distribution refers to a withdrawal from a qualified retirement plan. These distributions are both tax- and penalty-free. Eligible plans from which a qualified distribution can be made include 401(k)s and 403(b)s. Qualified distributions can't be used at an investor's discretion. Instead, they come with certain conditions and restrictions set by the Internal Revenue Service (IRS), so they aren't abused.",investopedia,1,50.43,9.3,13,14.2,12.4,10.11,8.2,11.41
Qualified Dividend,"A qualified dividend is a dividend that falls under capital gains tax rates that are lower than the income tax rates on unqualified, or ordinary, dividends. Tax rates for ordinary dividends (typically those that are paid out from most common or preferred stocks) are the same as standard federal income tax rates, or 10% to 37% for tax year 2020.",investopedia,1,49.49,13.8,0,10.57,16.4,9.86,20.5,16.67
Qualified Domestic Institutional Investor (QDII),"A qualified domestic institutional investor or QDII is an institutional investor that has met certain qualifications to invest in securities outside of their home country. Institutional investors can be organizations or groups of investors that have a significant amount of money available to invest. QDII programs enable large domestic investors to invest in securities in foreign markets. Examples of institutional investors that might seek to become a QDII include insurance companies, banks, funds, and investment companies.",investopedia,1,26.81,14.2,14.9,16.77,16.1,9.57,13.75,13.39
Qualified Domestic Relations Order (QDRO),"A qualified domestic relations order (QDRO) is a legal document, typically found in a divorce agreement, that recognizes that a spouse, former spouse, child, or other dependent is entitled to receive a predefined portion of the other spouse's individual retirement plan assets.",investopedia,1,3.47,23.2,0,14.93,26,13.24,32,27.28
Qualified Domestic Trust (QDOT),"A qualified domestic trust (QDOT) is a special kind of trust that allows taxpayers who survive a deceased spouse to take the marital deduction on estate taxes, even if the surviving spouse is not a U.S. citizen.",investopedia,1,42.38,16.5,0,9.93,19.5,12.3,25.5,21.29
Qualified Electric Vehicle,A qualified electric vehicle is a vehicle that allows the owner to claim a nonrefundable tax credit after purchase. A qualified electric vehicle must have at least four wheels and be designed for use in public. It must also be powered primarily by an electric motor that draws its charge from rechargable batteries or fuel cells. The vehicle must be driven almost exclusively in the U.S.,investopedia,1,54.73,9.7,12.2,10.61,10.1,8.76,10.75,10.24
Qualified Eligible Participant (QEP),A qualified eligible participant (QEP) is an individual who meets the requirements to trade in sophisticated investment funds such as futures and hedge funds. These requirements are defined by Rule 4.7 of the Commodity Exchange Act (CEA).,investopedia,1,44.24,11.7,0,14.21,14.3,11.81,13.75,16.05
Qualified Exchange Accommodation Arrangements,"A qualified exchange accommodation arrangement is a tax strategy where a third party, known as the accommodation party, temporarily holds a real estate investor's relinquished or replacement property. Qualified exchange accommodation arrangements, while still subjecting investors to strict guidelines for the sale and purchase of like-kind properties, increase flexibility in the timing of sales, and simplify qualifications for the tax deferral.",investopedia,1,6.68,19.9,0,19.27,23.7,11.62,24.25,22.04
Qualified Foreign Institutional Investor (QFII),"The Qualified Foreign Institutional Investor (QFII) is a program that allows specified licensed international investors to participate in mainland China's stock exchanges. The Qualified Foreign Institutional Investor program was introduced by the People's Republic of China in 2002 to provide foreign institutional investors with the right to trade on stock exchanges in Shanghai and Shenzhen. Before the launch of the QFII program, investors from other nations were not allowed to buy or sell stocks on Chinese exchanges due to the country’s tight capital controls.",investopedia,1,34.6,15.4,14.1,15.79,19.7,10.48,17.66666667,14.53
Qualified Higher Education Expense,"The term qualified higher education expense (QHEE) refers to money paid by an individual for expenses like tuition, books, fees, and supplies to attend a college, university, or other post-secondary institution. These expenses can be paid by a student, spouse, parent(s), or another party such as a friend or another relative. The Internal Revenue Service (IRS) provides individuals with tax incentives with respect to qualified higher education expenses.",investopedia,1,23.05,15.7,16.7,14.57,16.8,10.8,17,14.96
Qualified Institutional Buyer (QIB),"An investor is dubbed a qualified institutional buyer (QIB) if they are thought to require less regulatory protection than unsophisticated investors. QIB's can be a corporation that the Securities and Exchange Commission’s (SEC) Rule 501 of Regulation D classifies as an accredited investor, banks, trust funds, pension plans or any entity comprised of sophisticated investors.",investopedia,1,18.18,17.6,0,16.02,20,13.04,20.25,20.45
Qualified Institutional Placement (QIP),"A qualified institutional placement (QIP) is, at its core, a way for listed companies to raise capital without having to submit legal paperwork to market regulators. It is common in India and other Southeast Asian countries. The Securities and Exchange Board of India (SEBI) created the rule to avoid the dependence of companies on foreign capital resources.",investopedia,1,34.09,15.6,0,13.06,17.9,11.42,13.16666667,17.01
Qualified Joint and Survivor Annuity (QJSA),"A qualified joint and survivor annuity (QJSA) provides a lifetime payment to an annuitant and spouse, child, or dependent from a qualified plan. QJSA rules apply to money-purchase pension plans, defined benefit plans, and target benefits. They can also apply to profit-sharing and 401(k) and 403(b) plans, but only if so elected under the plan.",investopedia,1,52.9,10.4,13,11.95,12.8,12.01,12.16666667,11.68
Qualified Longevity Annuity Contract (QLAC),A qualified longevity annuity contract (QLAC) is a type of deferred annuity funded with an investment from a qualified retirement plan or an individual retirement account (IRA).,investopedia,1,18.69,17.4,0,14.39,18.4,11.99,21.5,18.21
Qualified Mortgage,"A qualified mortgage is a mortgage that meets certain requirements for lender protection and secondary market trading under the Dodd-Frank Wall Street Reform and Consumer Protection Act, a significant piece of financial reform legislation passed in 2010.",investopedia,1,25.46,18.9,0,17.01,24.8,12.73,25.5,21.29
Qualified Opinion,A qualified opinion is a statement issued in an auditor's report that accompanies a company's audited financial statements. It is an auditor's opinion that suggests the financial information provided by a company was limited in scope or there was a material issue with regard to the application of generally accepted accounting principles (GAAP)—but one that is not pervasive.,investopedia,1,16.66,18.1,0,14.52,19,11.88,24,22.63
Qualified Personal Residence Trust (QPRT),A Qualified Personal Residence Trust (QPRT) is a specific type of irrevocable trust that allows its creator to remove a personal home from his or her estate for the purpose of reducing the amount of gift tax that is incurred when transferring assets to a beneficiary.,investopedia,1,24.79,21.2,0,11.22,24.3,11.41,32,25.36
Qualified Pre-Retirement Survivor Annuity (QPSA),"A qualified pre-retirement survivor annuity (QPSA) is a death benefit that is paid to the surviving spouse of a deceased employee. If the employee dies before retirement, the qualified pre-retirement survivor annuity is paid to offer compensation to the surviving spouse for the loss of retirement benefits that would have otherwise been paid to the employee. As the name implies, QPSAs are paid only in the case of qualified plans.",investopedia,1,39.37,13.6,17.1,12.36,14.7,8.4,17.66666667,13.89
Qualified Production Activities Income (QPAI),"Qualified Production Activities Income (QPAI) is the portion of income derived from domestic manufacturing and production that qualifies for reduced taxation. More specifically, qualified production activities income is the difference between the manufacturer's domestic gross receipts and aggregate cost of goods and services related to producing domestic goods. The tax-deductibility of QPAI is intended to reward manufacturers for producing goods domestically instead of overseas.",investopedia,1,-11.77,22.9,0,20.84,25.6,11.14,28,22.8
Qualified Professional Asset Manager (QPAM),"A qualified professional asset manager (QPAM) is a registered investment advisor (RIA) that assists various institutions in making financial investments. The focus of a QPAM is on retirement accounts, such as pension plans. QPAMs are beneficial to investment funds because if an investment fund or retirement plan is managed by a QPAM, they can then transact in areas otherwise prohibited by the Employee Retirement Income Security Act (ERISA)",investopedia,1,31.51,14.5,17.9,14.22,16,11.5,18,17.32
Qualified Reservist,"A qualified reservist is a member of the military reserve who is not active, but when called to duty, is eligible to make an early withdrawal from a retirement account without incurring the usual early distribution penalty.",investopedia,1,25.46,18.9,0,12.31,21,11.02,25.5,22.37
Qualified Retirement Plan,"A qualified retirement plan meets the requirements of Internal Revenue Code Section 401(a) of the Internal Revenue Service (IRS) and is thus eligible to receive certain tax benefits, unlike a non-qualified plan. An employer establishes such a retirement plan on behalf of and for the benefit of the company’s employees. It is one tool that can help employers attract and retain good employees.",investopedia,1,41.7,12.7,16.3,12.36,13.8,10.69,15.83333333,16.02
Qualified Special Representative Agreement (QSR),"The Qualified Special Representative Agreement (QSR) is an agreement between broker-dealers to clear trades without interacting with the NASDAQ ACT system. The QSR allows one broker-dealer to send trades directly to the National Securities Clearing Corporation on behalf of another broker-dealer. This method of clearing trades provides simpler processing, lower transaction costs, and extended trading hours.",investopedia,1,27.11,14.1,15.5,18.33,17.7,12.74,14,14.62
Qualified Terminable Interest Property (QTIP) Trust,"A qualified terminable interest property (QTIP) enables the grantor to provide for a surviving spouse and maintain control of how the trust's assets are distributed once the surviving spouse dies. Income, and sometimes principal, generated from the trust is given to the surviving spouse to ensure that the spouse is taken care of for the rest of their life.",investopedia,1,49.99,13.6,0,12.2,17.3,9.92,19.25,16.55
Qualified Trust,"A qualified trust is a tax-advantaged fiduciary relationship between an employer and an employee in the form of a stock bonus, pension, or profit-sharing plan. In a qualified trust, the underlying beneficiary may use his or her life expectancy to determine required minimum distribution (RMD) amounts, but other considerations like gender, race, or salary cannot be used.",investopedia,1,25.63,16.8,0,13.87,18.9,11.14,21.75,20.52
Qualified Widow or Widower,"A qualified widow or widower is a tax filing status that allows a surviving spouse to use the married filing jointly tax rates on an individual return for up to two years following the death of the spouse. This allows the surviving spouse to receive the highest standard deduction for their taxes, providing they do not itemize deductions.",investopedia,1,12.61,25.9,0,11.68,30.6,11.69,19,28.03
Qualifying Annuity,"A qualifying annuity is similar to any other annuity, except the IRS has approved it for use within a Qualified Retirement Plan or individual retirement account (IRA). These annuities can be fixed, indexed, or variable depending upon the plan sponsor's investment objectives. According to Employee Retirement Income Security Act (ERISA) guidelines, contributions made into a qualifying annuity are tax-deductible unless the plan or annuity has a Roth feature. ",investopedia,1,22.75,15.8,18.2,15.38,17.2,10.96,18.5,17.32
Qualifying Disposition,"Qualifying disposition refers to a sale, transfer, or exchange of stock that qualifies for favorable tax treatment. Individuals typically acquire this type of stock through an incentive stock option (ISO), or through a qualified employee stock purchase plan (ESPP). A qualified ESPP requires shareholder approval before it is implemented. Furthermore, all plan members must have equal rights in the plan.",investopedia,1,47.79,10.3,13.4,14.49,13.3,10.96,10.75,14
Qualifying Event,"A qualifying event is a change in life circumstances that allows you to alter an existing health insurance policy, or sign up for a new one, outside of open enrollment periods.",investopedia,1,40.01,15.4,0,10.05,16.3,10.27,22.5,21.43
Qualifying Investment,"A qualifying investment refers to an investment purchased with pretax income, usually in the form of a contribution to a retirement plan. Funds used to purchase qualified investments do not become subject to taxation until the investor withdraws them.",investopedia,1,43.22,12.1,0,13.92,14,10.68,14.25,16.01
Qualifying Ratios,"Qualifying ratios are measuring devices that banks and other financial institutions use in their loan underwriting process. An applicant's qualifying ratio, expressed as a percentage figure, plays a key role in determining whether they'll be approved for financing, and often for the terms of the loan as well.",investopedia,1,38.66,13.8,0,13.93,16.4,11.41,17,17.1
Qualifying Relative,"A qualifying relative is a person designated by federal income tax code to be allowed to be claimed as a dependent by a taxpayer assuming the taxpayer provided considerable financial support for the qualifying relative during the tax year. Claiming a qualifying relative as a dependent will not currently allow the taxpayer to take an additional exemption, though, as the personal exemption has been temporarily eliminated under the TCJA (Tax Cuts and Jobs Act of 2018).",investopedia,1,15.99,20.5,0,13.07,22.1,10.72,31,23.62
Qualifying Transaction,"A qualifying transaction is a process in which a private company in Canada issues public stock. This process involves the creation of a capital pool company (CPC) that acquires all of the outstanding shares of the private company, making it a subsidiary and a public company.",investopedia,1,48.13,12.3,0,11.38,13.6,9.24,15.5,11.81
Qualifying Widow/Widower,"The federal qualifying widow or widower tax filing status is available for two years for widows and widowers (surviving spouses) with dependents after their spouse's death. The surviving spouse may file jointly with the deceased spouse for the tax year in which the spouse has died, and they can claim the standard deduction for a married couple filing jointly. For the next two tax years, the surviving spouse can file as a qualifying widow or widower if they maintain a household for the couple’s dependent children.",investopedia,1,36.29,18.9,0,12.55,24,10.36,27.5,20.92
Qualitative Analysis,"Qualitative analysis uses subjective judgment to analyze a company's value or prospects based on non-quantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations.",investopedia,1,-1.28,20.9,0,21.19,25.5,16.18,27,28
Quality Control,"Quality control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved. Quality control requires the company to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.",investopedia,1,34.97,13.2,15.5,15.84,15.7,11.4,14.33333333,14.62
Quality Control Charts,"A quality control chart is a graphic that depicts whether sampled products or processes are meeting their intended specifications. If not, the chart will show the degree by which they vary from specifications. A quality control chart that analyzes a specific attribute of a product is called a univariate chart, while a chart measuring variances in several product attributes is called a multivariate chart. Randomly selected products are tested for the given attribute(s) the chart is tracking.",investopedia,1,43.43,12,13.8,13.69,13.8,10.13,13.125,13.43
Quality Management,"Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement. It is also referred to as total quality management (TQM).",investopedia,1,28.13,13.7,17.1,14.38,14,10.77,14.83333333,16.14
Quality of Life,"Quality of life is a highly subjective measure of happiness that is an important component of many financial decisions. Factors that play a role in the quality of life vary according to personal preferences, but they often include financial security, job satisfaction, family life, health, and safety.",investopedia,1,30.7,14.8,0,13.64,15.9,9.84,19.25,17.91
Quality of Earnings,"A company's quality of earnings is revealed by dismissing any anomalies, accounting tricks, or one-time events that may skew the real bottom-line numbers on performance. Once these are removed, the earnings that are derived from higher sales or lower costs can be seen clearly.",investopedia,1,57.61,10.7,0,12.53,14.6,11.55,14,13.35
Quality Spread Differential (QSD),Quality spread differential (QSD) is used to calculate the difference between market interest rates that two parties potentially entering into an interest rate swap are able to achieve. QSD is a measurement that companies can use to gauge counterparty risk in an interest rate swap.,investopedia,1,40.18,13.2,0,13.18,14.7,10.37,17.25,17
Quant Fund,A quant fund is an investment fund whose securities are chosen based on numerical data compiled through quantitative analysis. These funds are considered non-traditional and passive. They are built with customized models using software programs to determine investments.,investopedia,1,33.2,11.8,13.6,16.81,13.8,13.41,8.666666667,15.61
Quantified Self,The term “quantified self” refers to the practice of using wearable devices and other modern technologies to collect personalized data about one’s own life and health. It can be seen as a type of lifestyle pursued by technology enthusiasts and is associated with early adopters of wearable devices such as those made by Apple Inc. (AAPL) and Fitbit Inc. (FIT).,investopedia,1,49.49,13.8,0,11.62,17.2,10.91,18,16
Quantity-Adjusting Option (Quanto Option),"A quantity-adjusting option, also known as a Quanto option, is a cash-settled, cross-currency derivative, where the underlying asset is denominated in a currency other than the currency in which the option is settled.",investopedia,1,12.6,19.7,0,14.4,21.5,10.06,24.5,20.47
Quantitative Analysis (QA),"Quantitative analysis (QA) is a technique that uses mathematical and statistical modeling, measurement, and research to understand behavior. Quantitative analysts represent a given reality in terms of a numerical value. Quantitative analysis is applied to the measurement, performance evaluation, valuation of a financial instrument, and predicting real-world events such as changes in a country's gross domestic product (GDP).",investopedia,1,9.59,16.7,19.3,18.33,18.3,12.76,17.66666667,20.13
Quantitative Easing,"Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also expands the central bank's balance sheet.",investopedia,1,22.58,17.9,0,14.23,20.1,11.97,14.83333333,18.95
Quantitative Easing 2 (QE2),"QE2 refers to the second round of the Federal Reserve's quantitative easing program that sought to stimulate the U.S. economy following the 2008 financial crisis and Great Recession. Announced in November 2010, QE2 consisted of an additional $600 billion in purchases of U.S. Treasuries and the reinvestment of proceeds from prior mortgage-backed security purchases.",investopedia,1,36.28,12.7,15.9,15.95,15.6,13.3,14,15.35
Quantitative Trading,"Quantitative trading consists of trading strategies based on quantitative analysis, which rely on mathematical computations and number crunching to identify trading opportunities. Price and volume are two of the more common data inputs used in quantitative analysis as the main inputs to mathematical models.",investopedia,1,15.31,16.6,0,17.23,17.9,11.19,16,14.25
Quantity Demanded,"Quantity demanded is a term used in economics to describe the total amount of a good or service that consumers demand over a given interval of time. It depends on the price of a good or service in a marketplace, regardless of whether that market is in equilibrium.",investopedia,1,55.58,11.5,0,8.88,11.9,8.77,15.5,15.43
Quantity Discount,A quantity discount is an incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers. A quantity discount is often offered by sellers to entice customers to purchase in larger quantities.,investopedia,1,49.65,11.7,0,11.43,12.9,11.68,13.25,12.32
Quantity Supplied,"In economics, quantity supplied describes the amount of goods or services that suppliers will produce and sell at a given market price. The quantity supplied differs from the actual amount of supply as, lower or higher prices influence how much supply producers actually put on the market. How supply changes in response to changes in prices is called the price elasticity of supply. The quantity supplied depends on the price level, which can be set by market forces or by a governing body by using price ceilings or floors.",investopedia,1,57.3,10.8,12.6,11.03,12.8,9.36,13.875,12.96
Quantity Theory of Money,The quantity theory of money is a theory that variations in price relate to variations in the money supply. It is most commonly expressed and taught using the equation of exchange and is a key foundation of the economic theory of monetarism.,investopedia,1,41.7,12.7,0,10.04,11.5,9.19,15.5,15.07
Quanto Swap,"A quanto swap is a cash-settled, cross-currency interest rate swap, where one of the counterparties pays a foreign interest rate to the other. The notional amount is denominated in the domestic currency. Interest rates may be fixed or floating.",investopedia,1,49.82,9.5,13.6,11.41,9.9,9.95,8.833333333,11.35
Quantum Computing,Quantum computing is an area of computing focused on developing computer technology based on the principles of quantum theory (which explains the behavior of energy and material on the atomic and subatomic levels). Computers used today can only encode information in bits that take the value of 1 or 0—restricting their ability.,investopedia,1,28.17,15.8,0,13.47,16.7,12.52,20.5,21.17
Quarter on Quarter (QOQ),"Quarter on quarter (QOQ) is a measuring technique that calculates the change between one fiscal quarter and the previous fiscal quarter. The term is similar to the year-over-year (YOY) measure, which compares the quarter of one year (such as the first quarter of 2020) to the same quarter of the previous year (the first quarter of 2019). The measure gives investors and analysts an idea of how a company is growing over each quarter.",investopedia,1,63.32,10.6,11.9,10.22,13.9,8.06,14.66666667,12.58
Quarter over Quarter (Q/Q),"Quarter over quarter (Q/Q) is a measure of an investment or a company's growth from one quarter to the next. Q/Q growth is most commonly used to compare a company's growth in profits or revenue although it can also be used to describe changes in an economy's money supply, gross domestic product (GDP), or other economic measurements.",investopedia,1,51.01,13.2,0,10.1,15.9,9.76,18.25,16.31
"Quarter (Q1, Q2, Q3, and Q4)","A quarter is a three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends. A quarter refers to one-fourth of a year and is typically expressed as ""Q1” for the first quarter, “Q2” for the second quarter, and so forth. For example, a quarter is often shown with its relevant year, as in Q1 2020 or Q1/20, which represents the first quarter of the year 2020.",investopedia,1,53.85,12.1,14.1,8.65,13,8.81,16.5,14.96
Quarter-to-Date (QTD),"Quarter-to-date (QTD) is a time interval that captures all relevant company activity that occurred between the beginning of the current quarter and the point at which the data was gathered later in the quarter. Quarter-to-date information is typically gathered in situations when the entire quarterly period has not yet ended, and it can allow management to see how the quarter is shaping up.",investopedia,1,31.04,16.8,0,12.89,19,9.96,22.25,18.31
Quarterly Income Debt Securities (QUIDS),Quarterly Income Debt Securities (QUIDS) are tradable debt instruments that pay a quarterly coupon.,investopedia,1,40.35,11.1,0,16.52,14.5,12.23,11,14.17
Quarterly Income Preferred Securities (QUIPS),"Shares that are an interest in a limited partnership that exists solely for the purpose of issuing preferred securities and lending the proceeds of the sales to its parent company. They usually have a $25 par value, NYSE listing, and cumulative quarterly distributions.",investopedia,1,41.19,12.9,0,12.65,14.2,12.41,15.75,16.97
Quarterly Revenue Growth,"Quarterly revenue growth is an increase in a company's sales in one quarter compared to sales of a different quarter. The current quarter's sales figure can be compared on a year-over-year basis (e.g., 3Q sales of Year 1 compared with 3Q sales of Year 2) or sequentially (3Q sales of Year 1 compared with 4Q sales of Year 1). This gives analysts, investors, and additional stakeholders an idea of how much a company's sales are increasing over time.",investopedia,1,62.01,11.1,13,9.41,14,9.58,16,13.99
Quartile,A quartile is a statistical term that describes a division of observations into four defined intervals based on the values of the data and how they compare to the entire set of observations.,investopedia,1,37.98,16.2,0,10.92,17.6,10.54,21.5,18.05
Quasi Contract,A quasi contract is a retroactive arrangement between two parties who have no previous obligations to one another. It is created by a judge to correct a circumstance in which one party acquires something at the expense of the other.,investopedia,1,51.18,11.1,0,10.44,11.3,8.97,13,13
Quasi-Public Corporation,"A quasi-public corporation is a company in the private sector that is supported by the government with a public mandate to provide a given service. Examples include telegraph and telephone companies, oil and gas, water, and electric light companies, and irrigation companies.",investopedia,1,33.24,13.8,0,14.04,15.3,9.19,15,13.16
Quasi-Reorganization,"A quasi-reorganization is a relatively obscure provision under generally accepted accounting principles (GAAP), which states that under certain circumstances, a firm may eliminate a deficit in its retained earnings account by restating assets, liabilities, and equity in a manner similar to a bankruptcy. A firm's stockholders must agree to allow the accounting change, which essentially resets the firm's books as though a new company had incurred the assets and liabilities of the old firm.",investopedia,1,17,20.1,0,15.39,23.9,11.66,28,23.45
Questioned Document Investigation,"A questioned document investigation is an in-depth look into a document that is being questioned in the case of fraud, forgery, etc. The investigation is usually initiated in the event that large sums of money, heirlooms, or other assets are being called into question by a third party. A questioned document investigation may also be called upon to discover altered documents, fabricated checks, anonymous letters, disputed wills, and many other disputed documents. A forensic analysis of the questioned document will typically involve a comprehensive analysis of the paper, ink, indentations, and tools used to produce the document.",investopedia,1,29.89,15.1,16.2,14.22,16.8,9.73,17.375,14.26
Queuing Theory,"Queuing theory is a branch of mathematics that studies how lines form, how they function, and why they malfunction. Queuing theory examines every component of waiting in line, including the arrival process, service process, number of servers, number of system places, and the number of customers—which might be people, data packets, cars, or anything else.",investopedia,1,43.56,14,0,13.58,18.2,10.74,17.75,15.36
Quick Assets,"Quick assets refer to assets owned by a company with a commercial or exchange value that can easily be converted into cash or that are already in a cash form. Quick assets are therefore considered to be the most highly liquid assets held by a company. They include cash and equivalents, marketable securities, and accounts receivable. Companies use quick assets to calculate certain financial ratios that are used in decision making, primarily the quick ratio.",investopedia,1,43.93,11.8,13.8,12.13,12.2,9.41,12.875,13.92
Quick Liquidity Ratio,"The quick liquidity ratio is the total amount of a company’s quick assets divided by the sum of its net liabilities and reinsurance liabilities. In other words, it shows how much easily-convertible-to-money assets, such as cash, short-term investments, equities, and corporate and government bonds nearing maturity, an insurance company can tap into on short notice to meet its financial obligations.",investopedia,1,24.11,17.4,0,15.5,20.7,10.65,23,21.33
Quick Ratio,The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.,investopedia,1,27.15,16.2,0,13.93,17.7,10.82,20.5,19.69
Quick Response (QR) Code,A quick response (QR) code is a type of barcode that can be read easily by a digital device and which stores information as a series of pixels in a square-shaped grid. QR codes are frequently used to track information about products in a supply chain and often used in marketing and advertising campaigns.,investopedia,1,52.53,12.6,0,9.52,14.1,11.12,17,15.24
Quick-Rinse Bankruptcy,A quick-rinse bankruptcy is a bankruptcy proceeding that is structured to move through legal proceedings faster than the average bankruptcy. All parties involved negotiate terms before a company files for bankruptcy.,investopedia,1,38.82,11.7,0,16.64,14.6,11.03,12.25,12.65
Quid,"Quid is a slang expression for the British pound sterling, or the British pound (GBP), which is the currency of the United Kingdom (U.K.). A quid is equal to 100 pence, and it is generally believed to come from the Latin phrase “quid pro quo,” which translates into ""something for something,"" or an equal exchange for goods or services. However, the exact etymology of the word as it relates to the British pound is still uncertain.",investopedia,1,62.72,10.8,11.2,9.06,13.4,9.46,14.66666667,12.75
Quid Pro Quo,"Quid pro quo is Latin term for ""something for something"" that originated in the middle ages in Europe. It describes a situation when two parties engage in a mutual agreement to exchange goods or services reciprocally. In a quid pro quo agreement, one transfer is thus contingent upon some transfer from the other party.",investopedia,1,53.21,10.3,10.5,10.32,10.8,9.79,10.66666667,10.9
Quid Pro Quo Contribution,A quid pro quo contribution is a charitable donation for which the donor receives something from the recipient in exchange for their funds.,investopedia,1,39.67,13.4,0,12.77,14.4,11.64,15.5,16.16
Quiet Period,"Prior to a company’s Initial Public Offering (IPO), the quiet period is an SEC-mandated embargo on promotional publicity. This prohibits management teams or their marketing agents from making forecasts or expressing any opinions about the value of their company.",investopedia,1,26.3,14.4,0,15.14,15.4,12.3,15.25,18.06
Quiet Title,"Quiet title is a lawsuit filed to establish ownership of real estate when ownership is in question. Real estate owners want to ensure that they have a clear title, meaning that there are no liens or levies against the title and no disputes over the property's ownership. These possible problems are known as clouds on the title and can be resolved by action to quiet the title. When you quiet the title, you are insuring that once and for all, there is only one clear owner of the title.",investopedia,1,58.25,12.5,11.9,8.83,14.6,8.13,12.875,13.68
Quiet Title Action,"A quiet title action, also known as an action of quiet title, is a circuit court action—or lawsuit—that is filed with the intended purpose to establish or settle the title to a property. Quiet title actions are particularly prevalent in cases where there is a disagreement on the title and the lawsuit is meant to remove, or “quiet,” a claim or objection to a title.",investopedia,1,38.49,16,0,9.82,16.8,8.89,19.75,16.69
Quintiles,"A quintile is a statistical value of a data set that represents 20% of a given population, so the first quintile represents the lowest fifth of the data (1% to 20%); the second quintile represents the second fifth (21% to 40%) and so on.",investopedia,1,35.28,19.3,0,7.85,21.5,9.41,27,20.33
Quitclaim Deed,"A quitclaim deed releases a person's interest in a property without stating the nature of the person's interest or rights, and with no warranties of that person’s interest or rights in the property. A quitclaim deed neither states nor guarantees that the person relinquishing their claim to the property had valid ownership, but it does prevent that person (the grantor) from later claiming they have an interest in the property.",investopedia,1,35.95,16.9,0,12.66,20.4,9.66,24,18
Quorums,A quorum refers to the minimum acceptable level of individuals with a vested interest in a company needed to make the proceedings of a meeting valid under the corporate charter. This clause or general agreement ensures there is sufficient representation present at meetings before any changes can be made by the board.,investopedia,1,36.63,14.6,0,12.6,15.7,10.7,18,16.55
Quota Share Treaty,"A quota share treaty is a pro-rata reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage. Quota share reinsurance allows an insurer to retain some risk and premium while sharing the rest with an insurer up to a predetermined maximum coverage. Overall, it's a way for an insurer to boost and preserve some of its capital.",investopedia,1,49.86,11.6,16.3,11.2,12.8,10.61,16,14.77
Quotation,"Quotations refer to the most recent sale price of a stock, bond, or any other asset traded. In addition, most asset classes also quote the bid and ask price that determines the final sale price. The bid is defined as the highest price a buyer is willing to pay for the assets, while the ask is the highest price a seller is willing to receive for selling.",investopedia,1,65.76,9.6,8.8,7.67,10.3,8.75,12.16666667,10.71
Quote,A quote is the last price at which an asset traded; it is the most recent price that a buyer and seller agreed upon and at which some amount of the asset was transacted.,investopedia,1,62.35,13,0,6.16,14.4,9.04,18,14.78
Quote Currency,"In foreign exchange (forex), the quote currency, commonly known as the counter currency, is the second currency in both a direct and indirect currency pair and is used to determine the value of the base currency.",investopedia,1,34.94,17.3,0,10.86,19.7,8.49,26,18.84
Quote-Driven Market,"A quote-driven market is an electronic stock exchange system in which prices are determined from bid and ask quotations made by market makers, dealers, or specialists. In a quote-driven market, also known as a price-driven market, dealers fill orders from their own inventory or by matching them with other orders. A quote-driven market is the opposite of an order-driven market, which displays individual investors' bid and ask prices and the number of shares they want to trade.",investopedia,1,45.39,13.3,14.1,12.36,16.1,8.4,16.5,13.92
Quote Stuffing,"Quote stuffing is the practice of quickly entering and then withdrawing large orders in an attempt to flood the market with quotes, causing competitors to lose time in processing them.",investopedia,1,49.49,13.8,0,12.89,17.9,10.91,19,17.33
Quoted Price,"A quoted price is the most recent price at which an investment (or any other type of asset) has traded. The quoted price of investments such as stocks, bonds, commodities, and derivatives changes constantly throughout the day as events occur that affect the financial markets and the perceived value of various investments. The quoted price represents the most recent bid and ask prices that buyers and sellers were able to agree on.",investopedia,1,55.58,11.5,13,11.55,14.3,10.31,15,14.04
R-Squared,"R-squared (R2) is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model. Whereas correlation explains the strength of the relationship between an independent and dependent variable, R-squared explains to what extent the variance of one variable explains the variance of the second variable. So, if the R2 of a model is 0.50, then approximately half of the observed variation can be explained by the model's inputs.",investopedia,1,20.89,20.7,0,14.35,25,10.83,17.83333333,21.42
Rabbi Trust,"A rabbi trust is a trust created to support the non-qualified benefit obligations of employers to their employees. A rabbi and his congregation first used this type of trust after an Internal Revenue Service (IRS) private letter ruling approved its use; it has been referred to as a rabbi trust ever since. In essence, it is a non-qualified employee trust created for the benefit of both the employer and employee.",investopedia,1,47.83,12.4,15.5,10.86,13.5,9.53,16.33333333,15.03
Race to the Bottom,"The race to the bottom refers to a competitive situation where a company, state, or nation attempts to undercut the competition's prices by sacrificing quality standards or worker safety (often defying regulation), or reducing labor costs. A race to the bottom can also occur among regions. For example, a jurisdiction may relax regulations or cut taxes and compromise the public good in an attempt to attract investment, such as the building of a new factory or corporate office.",investopedia,1,36.63,14.6,16.7,12.54,16.2,10.59,18.66666667,18.09
Racketeering,"The term racketeering broadly refers to criminal acts, typically those involving extortion. It is usually used in reference to patterns of illegal activity specified in the Racketeer Influenced and Corrupt Organizations Act (RICO). This is a U.S. federal law that makes it illegal to acquire or control a business through certain crimes or income from those crimes. It is also illegal to participate, even indirectly, in certain crimes committed by a business or to conspire to do any of the above under the act.",investopedia,1,41.7,12.7,15.6,11.6,13.1,10.13,15.25,16.5
Rally,"A rally is a period of sustained increases in the prices of stocks, bonds, or related indexes. A rally usually involves rapid or substantial upside moves over a relatively short period of time. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull market rally or a bear market rally, respectively. However, a rally will typically follow a period of flat or declining prices.",investopedia,1,51.89,10.8,13.4,8.99,10.1,8.7,12.875,12.91
Ramp Up,"Ramp up is a significant increase in the level of output of a company's products or services. A ramp-up typically occurs in anticipation of an imminent increase in demand. While it is generally a feature of smaller companies at an early stage of development, a ramp up can also be undertaken by large companies that are rolling out new products or expanding in new geographies.",investopedia,1,40.99,12.9,14.6,10.1,12.1,9.81,14.83333333,15.45
Random Variables,"A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment's outcomes. Random variables are often designated by letters and can be classified as discrete, which are variables that have specific values, or continuous, which are variables that can have any values within a continuous range.",investopedia,1,43.06,14.2,0,12.25,16.8,9.54,17,14.77
Random Walk Theory,"Random walk theory suggests that changes in stock prices have the same distribution and are independent of each other. Therefore, it assumes the past movement or trend of a stock price or market cannot be used to predict its future movement. In short, random walk theory proclaims that stocks take a random and unpredictable path that makes all methods of predicting stock prices futile in the long run.",investopedia,1,65.35,9.8,11.2,11.26,13.2,9.41,13.33333333,12.02
Ratchet Effect,"The ratchet effect is an economic process that is difficult to reverse once it is underway or has already occurred. A ratchet is an analogy to a mechanical ratchet, which spins one way but not the other, in an economic process that tends to only work one way. The results or side effects of the process may reinforce the cause by creating or altering incentives and expectations among participants.",investopedia,1,44.92,15.6,0,10.69,18.4,9.92,15.5,20.18
Rate-and-Term Refinance,"A rate-and-term refinance changes the interest rate, the term—or both the rate and the term—of an existing mortgage without advancing any new money. It is also known as a “no cash-out refinance.”",investopedia,1,63.7,8.4,0,11.08,10.7,7.39,10.5,11.4
Rate of Change (ROC),"The rate of change (ROC) is the speed at which a variable changes over a specific period of time. ROC is often used when speaking about momentum, and it can generally be expressed as a ratio between a change in one variable relative to a corresponding change in another; graphically, the rate of change is represented by the slope of a line. The ROC is often illustrated by the Greek letter delta.",investopedia,1,55.58,11.5,13.6,8.65,11.9,8.77,15.33333333,14.6
Rate of Return,"A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost. When calculating the rate of return, you are determining the percentage change from the beginning of the period until the end.",investopedia,1,46.61,12.8,0,9.75,13.1,8.07,17.25,15.51
Rating,"A rating is an assessment tool assigned by an analyst or rating agency to a stock or bond. The rating assigned indicates the stock or bond's level of investment opportunity. The three major rating agencies are Standard & Poor's, Moody's Investors Service, and Fitch Ratings.",investopedia,1,56.55,9,10.5,11.24,10.5,10.47,8.166666667,10.43
Ratio Analysis,"Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis.",investopedia,1,9.38,16.8,0,17.52,17.2,12.3,16.25,19.08
Rational Behavior,Rational behavior refers to a decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual. The assumption of rational behavior implies that people would rather take actions that benefit them versus actions that are neutral or harm them. Most classical economic theories are based on the assumption that all individuals taking part in an activity are behaving rationally.,investopedia,1,31.21,14.6,17.5,13.87,15.4,10.27,17.83333333,17.9
Rational Choice Theory,"Rational choice theory states that individuals use rational calculations to make rational choices and achieve outcomes that are aligned with their own personal objectives. These results are also associated with maximizing an individual's self-interest. Using rational choice theory is expected to result in outcomes that provide people with the greatest benefit and satisfaction, given the limited option they have available.",investopedia,1,17.34,15.8,17.1,17.52,17.3,11.21,16,17.33
Rational Expectations Theory,"The rational expectations theory is a concept and modeling technique that is used widely in macroeconomics. The theory posits that individuals base their decisions on three primary factors: their human rationality, the information available to them, and their past experiences.",investopedia,1,25.8,14.6,0,16.53,16.6,11.73,16,19
Rationalization,"Rationalization is the reorganization of a company in order to increase its operating efficiency. This sort of reorganization may lead to an expansion or reduction in company size, a change of policy, or alteration of strategy pertaining to particular products offered. Similar to a reorganization, a rationalization is more widespread, encompassing strategy as well as structural changes. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line.",investopedia,1,19.06,15.1,16.5,15.78,15.1,9.52,14.625,14.99
Rationing,"Rationing is the practice of controlling the distribution of a good or service in order to cope with scarcity. Rationing is a mandate of the government, at the local or federal level. It can be undertaken in response to adverse weather conditions, trade or import/export restrictions, or, in more extreme cases, during a recession or a war.",investopedia,1,52.19,10.7,13,10.68,11.5,9.84,12.5,12.51
Raw Materials,Raw materials are materials or substances used in the primary production or manufacturing of goods. Raw materials are commodities that are bought and sold on commodities exchanges worldwide. Traders buy and sell raw materials in what is called the factor market because raw materials are factors of production as are labor and capital.,investopedia,1,45.05,11.4,14.6,13.86,13.2,8.39,12.83333333,10.85
Reaganomics,"Reaganomics is a popular term referring to the economic policies of Ronald Reagan, the 40th U.S. president (1981–1989). His policies called for widespread tax cuts, decreased social spending, increased military spending, and the deregulation of domestic markets. These economic policies were introduced in response to a prolonged period of economic stagflation that began under President Gerald Ford in 1976.",investopedia,1,43.02,12.2,14.6,16.07,16.3,13.18,13.83333333,13.98
Real Asset,"Real assets are physical assets that have an intrinsic worth due to their substance and properties. Real assets include precious metals, commodities, real estate, land, equipment, and natural resources. They are appropriate for inclusion in most diversified portfolios because of their relatively low correlation with financial assets, such as stocks and bonds.",investopedia,1,37,12.4,14.6,16.01,15.3,11.17,12.66666667,16.15
Real Economic Growth Rate,"The real economic growth rate, or real GDP growth rate, measures economic growth, as expressed by gross domestic product (GDP), from one period to another, adjusted for inflation or deflation. In other words, it reveals changes in the value of all goods and services produced by an economy—the economic output of a country—while accounting for price fluctuations.",investopedia,1,42.55,14.4,0,13.35,18.3,10.87,20.25,17.72
Real Effective Exchange Rate (REER),The real effective exchange rate (REER) is the weighted average of a country's currency in relation to an index or basket of other major currencies. The weights are determined by comparing the relative trade balance of a country's currency against that of each country in the index.,investopedia,1,47.62,12.5,0,11.38,14,9.51,16.25,16.21
Real Estate,"Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.",investopedia,1,52.19,10.7,14.6,13.87,14.8,10.67,13.5,14.62
Real Estate Agent,"A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal. In almost every state a real estate agent must work for or be affiliated with a real estate broker (an individual or a brokerage firm), who is more experienced and licensed to a higher degree.",investopedia,1,25.42,16.8,16.3,13.65,17.9,10.38,19.66666667,18.46
Real Estate Investment Group,"A real estate investment group (REIG) refers to a business that focuses the majority of its efforts and capital on investing in real estate. In search of profits, real estate investment groups may choose to buy, renovate, sell, or finance properties. Real estate investment groups commonly buy out a multi-unit property and sell units to investors while taking responsibility for the administration and maintenance of the property.",investopedia,1,31.92,14.3,16.3,13.76,15.4,9.93,16.5,15.49
Real Estate Investment Trust (REIT),"A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.",investopedia,1,28.84,13.5,14.6,15.54,15,10.98,12.5,13.86
Real Estate Limited Partnership (RELP),"A real estate limited partnership (RELP) is a group of investors who pool their money to invest in property purchasing, development, or leasing. It is one of several forms of real estate investment group (REIG). Under its limited partnership (LP) status, a RELP has a general partner who assumes full liability and one or more limited partners who are liable only up to the amount they contribute.",investopedia,1,40.38,13.2,15,10.62,13,9.46,15.5,13.7
Real Estate Mortgage Investment Conduit (REMIC),The term real estate mortgage investment conduit (REMIC) refers to a special purpose vehicle (SPV) or debt instrument that pools mortgage loans together and issues mortgage-backed securities (MBS).,investopedia,1,34.6,15.4,0,16.77,21.3,15.18,20,16.91
Real Estate Operating Company (REOC),"The term real estate operating company (REOC) refers to a company that engages in real estate investments and whose shares are traded on a public exchange. These publicly-traded companies own and actively invest in properties—generally commercial real estate. Unlike real estate investment trusts (REITs), REOCs reinvest the money they earn back into their business and are subject to higher corporate taxes than REITs.",investopedia,1,33.24,13.8,14.1,14.85,15.8,10.69,14.16666667,14.11
Real Estate Owned (REO),"Real estate owned (REO) is property owned by a lender, such as a bank, that has not been successfully sold at a foreclosure auction. A lender—often a bank or quasi-governmental entity such as Fannie Mae or Freddie Mac—takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan.",investopedia,1,59.98,11.8,0,10.16,15.2,10.66,17.5,15.49
Real Estate Settlement Procedures Act (RESPA),"The Real Estate Settlement Procedures Act (RESPA) was enacted by Congress in 1975 to provide homebuyers and sellers with complete settlement cost disclosures. RESPA was also introduced to eliminate abusive practices in the real estate settlement process, prohibit kickbacks, and limit the use of escrow accounts. RESPA is a federal statute now regulated by the Consumer Financial Protection Bureau (CFPB).",investopedia,1,34.26,13.5,15.5,15.32,15.7,12.26,14.66666667,15.33
Real Estate Short Sale,"A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender. The lender either forgives the difference or gets a deficiency judgment against the borrower requiring them to pay the lender all or part of the difference between the sale price and the original value of the mortgage. In some states, this difference must legally be forgiven in a short sale.",investopedia,1,64.04,10.3,13,9.29,12.3,7.95,15,12.93
Real Gross Domestic Product (GDP),"Real gross domestic product (Real GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year (expressed in base-year prices) and is often referred to as constant-price GDP, inflation-corrected GDP, or constant dollar GDP.",investopedia,1,17.34,22,0,14,26.9,11.13,27.5,22.44
Real Income,Real income is how much money an individual or entity makes after accounting for inflation and is sometimes called real wage when referring to an individual's income. Individuals often closely track their nominal vs. real income to have the best understanding of their purchasing power.,investopedia,1,31.72,14.4,0,13.81,15.3,10.02,16.25,17.89
Real Interest Rate,A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor. The real interest rate reflects the rate of time-preference for current goods over future goods. The real interest rate of an investment is calculated as the difference between the nominal interest rate and the inflation rate:,investopedia,1,46.1,13,15.5,9.99,13.3,8.46,17.16666667,14.27
Real Property,"Real property is the land, everything that is permanently attached to the land, and all of the rights of ownership, including the right to possess, sell, lease, and enjoy the land. Real property can be classified according to its general use as residential, commercial, agricultural, industrial, or special purpose. In order to understand if you have the right to sell your home, you need to know which rights you possess—or don't possess—in the property.",investopedia,1,46.4,12.9,15.9,11.78,15.2,8.28,17.33333333,15.29
Real Rate of Return,"Real rate of return is the annual percentage of profit earned on an investment, adjusted for inflation. Therefore, the real rate of return accurately indicates the actual purchasing power of a given amount of money over time.",investopedia,1,35.78,12.9,0,11.72,11.9,9.68,13.75,17.13
Real Time,"Real time is when a system relays information to a user at a speed that is near-instantaneous or has a short delay from when the event occurred. Online brokerages often provide a real-time data feed that displays stock quotes and their respective real-time changes, with a very insignificant lag time, so that clients can base their investing decisions on the most up-to-date information.",investopedia,1,39.5,15.6,0,12.6,18.8,10.46,21.25,17.04
Real-Time Gross Settlement (RTGS),"The term real-time gross settlement (RTGS) refers to a funds transfer system that allows for the instantaneous transfer of money and/or securities. RTGS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank. Once completed, real-time gross settlement payments are final and irrevocable. In most countries, the systems are managed and run by their central banks.",investopedia,1,45.25,11.3,12.2,13.4,13.2,10.59,11.25,10.43
Real-Time Quote (RTQ),"A real-time quote (RTQs) is the display of the actual price of a security at that very moment in time. Quotes are the price of a stock or security displayed on various websites and ticker tapes. In most cases, these figures are not real-time numbers of where the securities are trading but are delayed quotes. Delayed quotes, unlike real-time quotes, may lag the real trading market by between 15 and 20 minutes. Real-time quotes are instantaneous with no delay.",investopedia,1,63.9,8.3,11.2,9.57,9.4,9.22,8.9,8.85
Realization Multiple,"The realization multiple is a private equity measurement that shows how much has been paid out to investors. The realization multiple measures the return that is realized from the investment. Private equity funds are unique in that they hold assets that are pulled together from all sorts of illiquid sources, including leveraged buyouts (LBO), start-ups and so on. The realization multiple is found by dividing the cumulative distributions from a fund, company or project by the paid-in capital.",investopedia,1,43.22,12.1,15.2,13.05,13.6,10.07,14.25,12.93
Realized Gain,A realized gain results from selling an asset at a price higher than the original purchase price. It occurs when an asset is sold at a level that exceeds its book value cost.,investopedia,1,71.65,7.4,0,7.02,7.1,8.76,8.25,9.02
Realized Loss,A realized loss is the loss that is recognized when assets are sold for a price lower than the original purchase price. Realized loss occurs when an asset that was purchased at a level referred to as cost or book value is then disbursed for a value below its book value.,investopedia,1,62.51,10.9,0,7.78,11.6,8.31,14.75,12.55
Realized Yield,"Realized yield is the actual return earned during the holding period for an investment. It may include dividends, interest payments, and other cash distributions. The term ""realized yield"" can be applied to a bond sold before its maturity date or a dividend-paying security. Generally speaking, the realized yield on bonds includes the coupon payments received during the holding period, plus or minus the change in the value of the original investment, calculated on an annual basis.",investopedia,1,35.27,13.1,15.2,13,13.4,10.81,14,14.97
Realtor,"A realtor is a real estate professional who is a member of the National Association of Realtors (NAR), a professional association. NAR defines the term “realtor” as a federally registered collective membership mark that identifies a real estate professional who is a member of the association and subscribes to its code of ethics.",investopedia,1,19.2,17.2,0,12.89,16.5,9.72,20.75,18.15
Rebate,"A rebate, broadly, refers to a sum of money that is credited or returned to a customer in the context of a transaction. A rebate may offer cashback on the purchase of a consumer good or service, either as a flat-rate rebate, which is automatically subtracted from the purchase price, or conditional rebates, which are only valid under certain conditions, such as ""buy one, get one free."" Some conditional rebates require the purchaser to submit a form along with proof of payment to the company offering the cashback.",investopedia,1,41.74,14.7,13.6,10.75,16.3,8.86,18,15.36
Recapitalization,"Recapitalization is the process of restructuring a company's debt and equity mixture, often to stabilize a company's capital structure. The process mainly involves the exchange of one form of financing for another, such as removing preferred shares from the company's capital structure and replacing them with bonds.",investopedia,1,30.7,14.8,0,15.5,17.4,10.51,18.25,16.21
Receipt,"A receipt is a written acknowledgment that something of value has been transferred from one party to another. In addition to the receipts consumers typically receive from vendors and service providers, receipts are also issued in business-to-business dealings as well as stock market transactions. For example, the holder of a futures contract is generally given a delivery instrument, which acts as a receipt in that it can be exchanged for the underlying asset when the futures contract expires.",investopedia,1,36.63,14.6,14.1,13.64,16.9,9.38,16.66666667,15.02
Receivable,"Receivables, also referred to as accounts receivable, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.",investopedia,1,56.93,13,0,9.88,16.1,9.76,19.5,16.27
Receivables Turnover Ratio,"The receivables turnover ratio is an accounting measure used to quantify a company's effectiveness in collecting its accounts receivable, or the money owed by customers or clients. This ratio measures how well a company uses and manages the credit it extends to customers and how quickly that short-term debt is collected or is paid. A firm that is efficient at collecting on its payments due will have a higher accounts receivable turnover ratio.",investopedia,1,46.81,12.8,14.6,12.31,14.9,10.03,16.16666667,14.65
Receivership,"A receivership is a court-appointed tool that can assist creditors to recover funds in default and can help troubled companies to avoid bankruptcy. In the first instance, having a receivership in place makes it easier for a lender to recover funds due to them when a borrower defaults on a loan.",investopedia,1,54.05,12.1,0,10.45,13.9,10.16,17.75,16.47
"Recency, Frequency, Monetary Value (RFM)","Recency, frequency, monetary value is a marketing analysis tool used to identify a company's or an organization's best customers by using certain measures. The RFM model is based on three quantitative factors:",investopedia,1,29.86,13.1,0,13.8,12.9,12.33,12.5,17.65
Recessionary Gap,"A recessionary gap, or contractionary gap, is a macroeconomic term used when a country's real gross domestic product (GDP) is lower than its GDP at full employment.",investopedia,1,44.07,13.8,0,11.38,16.1,11.41,18.5,18.21
Recharacterization,"A recharacterization is the reversal of an IRA conversion, such as from a Roth IRA back to a traditional IRA, generally to achieve better tax treatment. The strategy of recharacterizing from a Roth back to a traditional IRA was banned by the Tax Cuts and Jobs Act of 2017.",investopedia,1,55.07,11.7,0,9.29,12.5,9.69,16.25,15.51
Reconciliation,"Reconciliation is an accounting process that compares two sets of records to check that figures are correct and in agreement. Reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete. However, reconciliation can also be used for personal purposes in addition to business purposes.",investopedia,1,29.86,13.1,14.6,15.54,14,10.02,12,12.23
Record Date,"The record date, or date of record, is the cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend or distribution. The determination of a record date is required to ascertain who exactly a company's shareholders are as of that date, since shareholders of an actively traded stock are continually changing. The shareholders of record as of the record date will be entitled to receive the dividend or distribution, declared by the company.",investopedia,1,35.61,15,17.9,12.13,16.3,8.29,20.16666667,17.22
Recourse,"A recourse is a legal agreement that gives the lender the right to pledged collateral if the borrower is unable to satisfy the debt obligation. Recourse refers to the lender's legal right to collect. Recourse lending provides protection to lenders, as they are assured of having some repayment, either in cash or liquid assets. Companies that use recourse debt have a lower cost of capital, as there is less underlying risk in lending to that firm.",investopedia,1,60.65,9.5,11.7,10.56,11.2,10.4,11.75,11.81
Recourse Loan,The term recourse loan refers to a type of loan that can help a lender recoup its investment if a borrower fails to pay and the value of the underlying asset is not enough to cover it. A recourse loan is a form of secured financing. It lets the lender go after the debtor's other assets that were not used as loan collateral or to take legal action in case of default in order to pay off the full debt.,investopedia,1,69.75,10.2,10.5,6.16,10.9,8.91,15,13.18
Recurring Billing,Recurring billing happens when a merchant automatically charges a customer for goods or services on a prearranged schedule. Recurring billing requires the merchant to get the customer’s information and permission. The vendor will then automatically make recurring charges to the customer’s account with no further permissions needed.,investopedia,1,38.62,11.8,13,17.75,15.4,9.79,10.83333333,11.39
Recurring Revenue,"Recurring revenue is the portion of a company's revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty.",investopedia,1,40.69,13.1,0,12.01,14,11.19,15,16.07
Red Herring Filing,"A red herring is a preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), usually in connection with the company's initial public offering (IPO). A red herring prospectus contains most of the information pertaining to the company's operations and prospects but does not include key details of the security issue, such as its price and the number of shares offered.",investopedia,1,30.54,17,0,13.12,19.5,11.14,22.5,19.68
Redemption,"Depending on the context, the term redemption has different uses in the finance and business world. In finance, redemption refers to the repayment of any fixed-income security at or before the asset's maturity date. Bonds are the most common type of fixed-income security, but others include certificates of deposit (CDs), Treasury notes (T-notes), and preferred shares.",investopedia,1,44.03,11.8,14.1,13.69,14.4,11.05,13,11.77
Redlining,"Redlining is a discriminatory practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity. It can be seen in the systematic denial of mortgages, insurance, loans, and other financial services based on location (and that area’s default history) rather than on an individual’s qualifications and creditworthiness. Notably, the policy of redlining is felt the most by residents of minority neighborhoods.",investopedia,1,30.91,14.7,16.7,14.97,16.9,10.43,17.33333333,16.75
Reference Number,A reference number is a unique identifier assigned to any financial transaction including those made using a credit or debit card. The reference number is created technologically and designated for a single transaction. A reference number helps an institution identify transactions in records and electronic databases used to monitor transactions associated with a card. Reference numbers from each transaction on a customer’s account are usually included in a cardholder’s monthly statement.,investopedia,1,19.57,15,16.8,16.59,15.4,10.97,14.625,16.7
Reference Rate,"A reference rate is an interest rate benchmark used to set other interest rates. Various types of transactions use different reference rate benchmarks, but the most common include the Fed Funds Rate, LIBOR, the prime rate, and the rate on benchmark U.S. Treasury securities.",investopedia,1,57.61,10.7,0,12.24,14.4,10.83,15,13.35
Refinance,"A refinance, or ""refi"" for short, refers to the process of revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage. When a business or an individual decides to refinance a credit obligation, they effectively seek to make favorable changes to their interest rate, payment schedule, and/or other terms outlined in their contract. If approved, the borrower gets a new contract that takes the place of the original agreement.",investopedia,1,45.09,13.4,15,11.67,15.6,10.59,17.33333333,16.55
Reflexivity,"Reflexivity in economics is the theory that a feedback loop exists in which investors' perceptions affect economic fundamentals, which in turn changes investor perception. The theory of reflexivity has its roots in sociology, but in the world of economics and finance, its primary proponent is George Soros. Soros believes that reflexivity disproves much of mainstream economic theory and should become a major focus of economic research, and even makes grandiose claims that it ""gives rise to a new morality as well as a new epistemology.""",investopedia,1,34.29,15.5,17.5,13.47,18,10.8,20.5,16.97
Registered Education Savings Plan (RESP),"A Registered Education Savings Plan (RESP), sponsored by the Canadian government, encourages investing in a child's future post-secondary education. Subscribers to an RESP make contributions that build up tax-free earnings. The government contributes a certain amount to these plans for children under age 18.",investopedia,1,32.22,14.2,0,17,18.5,10.47,16.5,15.16
Registered Investment Advisor (RIA),"A Registered Investment Advisor (RIA) is a person or firm who advises high-net-worth individuals on investments and manages their portfolios. RIAs have a fiduciary duty to their clients, which means they have a fundamental obligation to provide investment advice that always acts in their clients' best interests.",investopedia,1,39.16,13.6,0,14.97,17.1,11.19,18.25,18.76
Registered Representative (RR),"A registered representative (RR) is a person who works for a client-facing financial firm such as a brokerage company and serves as a representative for clients who are trading investment products and securities. Registered representatives may be employed as brokers, financial advisors, or portfolio managers.",investopedia,1,23.26,15.6,0,16.66,17.9,11.77,18.25,17
Regression,"Regression is a statistical method used in finance, investing, and other disciplines that attempts to determine the strength and character of the relationship between one dependent variable (usually denoted by Y) and a series of other variables (known as independent variables).",investopedia,1,12.94,21.6,0,16.26,26.4,12.99,31.5,27.13
Regressive Tax,"A regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners. It is in opposition to a progressive tax, which takes a larger percentage from high-income earners.",investopedia,1,44.24,11.7,0,13.29,13.5,8.39,13.75,12.81
Regret Theory,"Regret theory states that people anticipate regret if they make the wrong choice, and they consider this anticipation when making decisions. Fear of regret can play a significant role in dissuading someone from taking action or motivating a person to take action. Regret theory can impact an investor's rational behavior, impairing their ability to make investment decisions that would benefit them as opposed to harming them.",investopedia,1,32.22,14.2,16.3,13.92,15.3,9.75,16.33333333,17.28
Regtech,"Regtech is the management of regulatory processes within the financial industry through technology. The main functions of regtech include regulatory monitoring, reporting, and compliance.",investopedia,1,8.53,15.1,0,20.75,17,13.44,11,19.8
Regulated Investment Company (RIC) Pass Taxes on to Investors,"A regulated investment company (RIC) can be any one of several investment entities. For example, it may take the form of a mutual fund or exchange-traded fund (ETF), a real estate investment trust (REIT), or a unit investment trust (UIT). Whichever form the RIC assumes, the structure must be deemed eligible by the Internal Revenue Service (IRS) to pass through taxes for capital gains, dividends, or interest earned to the individual investors.",investopedia,1,38.66,13.8,16.7,11.61,15.1,10.97,17.66666667,15.16
Regulation A,"Regulation A is an exemption from registration requirements—instituted by the Securities Act—that applies to public offerings of securities that do not exceed $50 million in any one-year period. Companies utilizing the Regulation A exemption must still file offering statements with the Securities and Exchange Commission (SEC). However, the companies utilizing the exemption are given distinct advantages over companies that must fully register. The issuer of a Regulation A offering must give buyers documentation with the issue, similar to the prospectus of a registered offering.",investopedia,1,16.32,16.2,18.2,16.53,17.1,9.75,17.5,16.5
Regulation B (Reg B),"Regulation B is intended to prevent applicants from being discriminated against in any aspect of a credit transaction. Reg B outlines the rules that lenders must adhere to when obtaining and processing credit information. The regulation prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status.",investopedia,1,29.55,13.2,15,16.3,14.9,12.5,12.5,16.32
Regulation CC,Regulation CC is one of the banking regulations set forth by the Federal Reserve. Regulation CC implements the Expedited Funds Availability Act of 1987. This act sets certain standards for endorsements on checks that are paid by banks and other depository institutions.,investopedia,1,40.35,11.1,13.6,13.22,11.1,11.1,10.33333333,14.17
SEC Regulation D (Reg D),"Regulation D (Reg D) is a Securities and Exchange Commission (SEC) regulation governing private placement exemptions. It should not be confused with Federal Reserve Board Regulation D, which limits withdrawals from savings accounts. Reg D offerings are advantageous to private companies or entrepreneurs that meet the requirements because funding can be obtained faster and at a lower cost than with a public offering. It is usually used by smaller companies. The regulation allows capital to be raised through the sale of equity or debt securities without the need to register those securities with the SEC. However, many other state and federal regulatory requirements still apply.",investopedia,1,36.79,12.5,14.8,13.74,13.3,9.77,12,12.71
Regulation DD,Regulation DD is a directive set forth by the Federal Reserve. Regulation DD was enacted to implement the Truth in Savings Act (TISA) that was passed in 1991. This act requires lenders to provide certain uniform information about fees and interest when opening an account for a customer.,investopedia,1,55.24,9.5,12.5,10.84,10.1,10.02,10.66666667,12.23
Regulation E Definition,Regulation E is a regulation put forth by the Federal Reserve Board that outlines rules and procedures for electronic funds transfers (EFTs) and provides guidelines for issuers of electronic debit cards.,investopedia,1,40.01,15.4,0,15.33,20.5,13.32,21.5,17.56
Regulation O,"Regulation O is a Federal Reserve regulation that places limits and stipulations on the credit extensions a member bank can offer to its executive officers, principal shareholders, and directors. The regulation is designed to prevent bank directors, trustees, executive officers, or principal shareholders (""insiders"") from benefiting from favorable credit extensions.",investopedia,1,-21.58,28.7,0,19.45,33.7,12.43,22.5,29.6
Regulation SHO,"Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that governs short sale practices. Regulation SHO established ""locate"" and ""close-out"" requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not possess and have not confirmed their ability to possess.",investopedia,1,41.03,15,0,15.39,20.4,11.44,19.5,17.33
Regulation T (Reg T),"Regulation T is a collection of provisions that govern investors' cash accounts and the amount of credit that brokerage firms and dealers may extend to customers for the purchase of securities. According to Regulation T, an investor may borrow up to 50% of the purchase price of securities that can be bought using a loan from a broker or dealer. The remaining 50% of the price must be funded with cash.",investopedia,1,55.88,11.4,13,9.64,12.5,9.7,14.83333333,13.42
Regulation U,"Regulation U is a Federal Reserve Board regulation that governs loans by entities involving securities as collateral and the purchase of securities on margin. Regulation U limits the amount of leverage that can be extended for loans secured by securities for the purpose of buying more securities. Securities involved typically include stocks, mutual funds, and other market-traded securities.",investopedia,1,18.05,15.5,16.7,16.13,15.8,11.4,15.33333333,13.93
Regulation W,"Regulation W is a U.S. Federal Reserve System regulation that limits certain transactions between depository institutions, such as banks, and their affiliates. In particular, it sets quantitative limits on covered transactions and requires collateral for certain transactions. The regulation applies to banks that are members of the Federal Reserve System, insured state non-member banks and insured savings associations. Regulation W was introduced to consolidate several decades of interpretations and rulemaking under Sections 23A and 23B of the Federal Reserve Act.",investopedia,1,21.4,14.3,15.4,17.17,15.4,10.75,12.6,13.4
Regulatory Capture Definition,"Regulatory capture is an economic theory that says regulatory agencies may come to be dominated by the industries or interests they are charged with regulating. The result is that an agency, charged with acting in the public interest, instead acts in ways that benefit incumbent firms in the industry it is supposed to be regulating.",investopedia,1,35.1,15.2,0,12.13,16.3,11.03,20.25,19
Regulatory Risk,"Regulatory risk is the risk that a change in laws and regulations will materially impact a security, business, sector, or market. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of an investment, or change the competitive landscape.",investopedia,1,27.15,16.2,0,12.65,16.8,9.65,19,16.73
Rehypothecation,"Rehypothecation is a practice whereby banks and brokers use, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees. In a typical example of rehypothecation, securities that have been posted with a prime brokerage as collateral by a hedge fund are used by the brokerage to back its own transactions and trades.",investopedia,1,36.63,14.6,15.9,12.19,15.6,9.99,18,15.53
Reimbursement,"Reimbursement is compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or another party. Reimbursement of business expenses, insurance costs, and overpaid taxes are common examples. However, unlike typical compensation, reimbursement is not subject to taxation.",investopedia,1,6.2,15.9,16.7,18.96,16.8,10.22,12.83333333,15.02
Reinsurance,Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.,investopedia,1,40.18,13.2,0,14.97,16.1,10.72,16.75,15.22
Reinsurance Ceded,"Reinsurance ceded refers to the portion of risk that a primary insurer passes to a reinsurer. It allows the primary insurer to reduce its risk exposure to an insurance policy it has underwritten by passing that risk to another company. Primary insurers are also also referred to as the ceding company while the reinsurance company is also called the accepting company. In exchange for taking on the risk, the reinsurance company receives a premium, and pays the claim for the risk it accepts.",investopedia,1,41.9,12.6,16.5,10.97,12.2,9.61,15.875,13.62
Reinvestment,"Reinvestment is the practice of using dividends, interest, or any other form of income distribution earned in an investment to purchase additional shares or units, rather than receiving the distributions in cash.",investopedia,1,30.54,17,0,15.97,21.7,12.13,24,22.8
Reinvestment Rate,"The reinvestment rate is the amount of interest that can be earned when money is taken out of one fixed-income investment and put into another. For example, the reinvestment rate is the amount of interest the investor could earn if he purchased a new bond while holding a callable bond called due because of an interest rate decline.",investopedia,1,58.96,12.2,0,10.51,15.5,8.61,19,14.36
Reinvestment Risk,"Reinvestment risk refers to the possibility that an investor will be unable to reinvest cash flows received from an investment, such as coupon payments or interest, at a rate comparable to their current rate of return. This new rate is called the reinvestment rate.",investopedia,1,57.61,10.7,0,11.43,13.4,10.47,14,13.35
Related-Party Transactions,"The term related-party transaction refers to a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest. Companies often seek business deals with parties with whom they are familiar or have a common interest. Although related-party transactions are themselves legal, they may create conflicts of interest or lead to other illegal situations. Public companies must disclose these transactions.",investopedia,1,37.81,12.1,14.6,15.89,14.5,9.72,12.25,13.27
Relationship Management,"Relationship management is a strategy in which an organization maintains an ongoing level of engagement with its audience. This management can occur between a business and its customers (business to consumer [B2C]) or between a business and other businesses (business to business [B2B]). Relationship management aims to create a partnership between an organization and its patrons, instead of viewing the relationship as merely transactional.",investopedia,1,13.62,19.3,0,16.78,22.6,10.4,15.66666667,19.05
Relationship Manager,Relationship managers work to improve business relationships with partner firms and clients. Relationship management is generally divided into two fields: client relationship management and business relationship management. Both fields share the common goal of facilitating good relationships so businesses can maximize the value of those relationships and maintain a good reputation.,investopedia,1,20.38,14.6,16.3,20.18,18.1,9.43,13.83333333,13.86
Relative Strength,"Relative strength is a strategy used in momentum investing and in identifying value stocks. It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark. For example, a relative strength investor might select technology companies that have outperformed the Nasdaq Composite Index, or stocks that are outperforming the S&P 500 index.",investopedia,1,40.99,12.9,16.7,13.23,14.6,10.54,16.5,17.3
Relative Strength Index (RSI),"The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, “New Concepts in Technical Trading Systems.”",investopedia,1,50.36,11.4,14.6,10.79,12.3,11.52,14.375,14.59
Relative Valuation Model,"A relative valuation model is a business valuation method that compares a company's value to that of its competitors or industry peers to assess the firm's financial worth. Relative valuation models are an alternative to absolute value models, which try to determine a company's intrinsic worth based on its estimated future free cash flows discounted to their present value, without any reference to another company or industry average. Like absolute value models, investors may use relative valuation models when determining whether a company's stock is a good buy.",investopedia,1,24.82,17.1,19.9,14.28,18.9,9.93,23.33333333,18.54
Relative Value,"Relative value is a method of determining an asset's worth that takes into account the value of similar assets. This is in contrast with absolute value, which looks only at an asset's intrinsic value and does not compare it to other assets. The price-to-earnings ratio (P/E ratio) is a popular valuation method that can be used to measure the relative value of stocks.",investopedia,1,50.16,11.5,13,9.86,12,9.19,13.5,12.84
Relative Vigor Index (RVI),The Relative Vigor Index (RVI) is a momentum indicator used in technical analysis that measures the strength of a trend by comparing a security's closing price to its trading range while smoothing the results using a simple moving average (SMA).,investopedia,1,22.42,20.1,0,12.31,22.8,13.91,28,24
Relevant Cost,"Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process. As an example, relevant cost is used to determine whether to sell or keep a business unit.",investopedia,1,44.75,11.5,15,13.69,13.4,10.38,13.33333333,15.35
Relief Rally,A relief rally is a respite from a market sell-off that results in higher securities prices. Relief rallies often occur when anticipated negative news winds up being positive or less severe than expected.,investopedia,1,37.81,12.1,0,12.12,11.4,11.63,10.75,12.66
Remittance,"A remittance is a payment of money that is transferred to another party. Broadly speaking, any payment of an invoice or a bill can be called a remittance. However, the term is most often used nowadays to describe a sum of money sent by someone working abroad to his or her family back home.",investopedia,1,70.13,8,10.5,7.36,8.2,7.16,10.66666667,7.94
Remuneration,"Remuneration is the total compensation received by an employee. It includes not only base salary but any bonuses, commission payments, overtime pay, or other financial benefits that an employee receives from an employer.",investopedia,1,37.81,12.1,0,14.96,13.9,11.63,12.25,15.08
Renewable Energy Certificate (REC),"Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC received can then be sold on the open market as an energy commodity. RECs earned may be sold, for example, to other entities that are polluting as a carbon credit to offset their emissions.",investopedia,1,47.42,12.5,16.3,11.96,14.7,10.59,17.16666667,15.11
Renewable Resource,A renewable resource is one that can be used repeatedly and does not run out because it is naturally replaced.,investopedia,1,51.18,11.1,0,8.82,10,8.58,13,14
Renko Chart,"A Renko chart is a type of chart, developed by the Japanese, that is built using price movement rather than both price and standardized time intervals like most charts are. It is thought to be named after the Japanese word for bricks, ""renga,"" since the chart looks like a series of bricks. A new brick is created when the price moves a specified price amount, and each block is positioned at a 45-degree angle (up or down) to the prior brick. An up brick is typically colored white or green, while a down brick is typically colored black or red.",investopedia,1,71.48,9.5,12.2,8.13,12.2,8.51,15,13.2
Rent Control,"Rent control is a government program that places a limit on the amount that a landlord can demand for leasing a home or renewing a lease. Rent control laws are usually enacted by municipalities, and the details vary widely. All are intended to keep living costs affordable for lower-income residents.",investopedia,1,54.52,9.8,13,10.96,10.5,11.1,11.33333333,12.28
Rent Seeking,"Rent seeking (or rent-seeking) is an economic concept that occurs when an entity seeks to gain added wealth without any reciprocal contribution of productivity. Typically, it revolves around government-funded social services and social service programs.",investopedia,1,28.33,13.7,0,17.57,16.8,11.72,12.25,13.86
Renter's Insurance,"Renter’s insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event. It’s available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft, or townhouse. The policy protects against losses to the tenant’s personal property within the rented property. In addition, a renter’s insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property (in that case the owner’s—not renter’s—policy would apply).",investopedia,1,22.79,17.9,19.3,16.55,22,11.74,17.75,19.33
Reorganization,"A reorganization is a significant and disruptive overhaul of a troubled business intended to restore it to profitability. It may include shutting down or selling divisions, replacing management, cutting budgets, and laying off workers.",investopedia,1,28.84,13.5,0,16.01,15,12.37,12.5,16.21
Repackaging,"A private equity firm buys all the stock in a troubled public company, thus taking the company private with the intention of revamping its operations and re-selling it at a profit. This process is called repackaging.",investopedia,1,53.21,10.3,0,10.96,11.3,11.11,12.5,12.76
Repatriable,Repatriable refers to the ability to move liquid financial assets from a foreign country to an investor's country of origin.,investopedia,1,42.72,12.3,0,12.59,13.3,11.73,13,14
Repatriation,"Repatriation refers to converting any foreign currency into one’s local currency. Repatriation sometimes becomes necessary due to business transactions, foreign investments, or international travel.",investopedia,1,8.53,15.1,0,23.42,19.1,12.78,10.5,16.47
Repayment,"Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments, which include both principal and interest. The principal refers to the original sum of money borrowed in a loan. Interest is the charge for the privilege of borrowing money; a borrower must pay interest for the ability to use the funds released to them through the loan. Loans can usually also be fully paid in a lump sum at any time, though some contracts may include an early repayment fee.",investopedia,1,61.26,9.3,13.3,10.21,10.6,8.67,12.4,12.58
Replacement Cost,"Replacement cost is a term referring to the amount of money a business must currently spend to replace an essential asset like a real estate property, an investment security, a lien, or another item, with one of the same or higher value. Sometimes referred to as a ""replacement value,"" a replacement cost may fluctuate, depending on factors such as the market value of components used to reconstruct or repurchase the asset and the expenses involved in preparing assets for use. Insurance companies routinely use replacement costs to determine the value of an insured item. Replacement costs are likewise ritually used by accountants, who rely on depreciation to expense the cost of an asset over its useful life. The practice of calculating a replacement cost is known as ""replacement valuation.""",investopedia,1,36.83,14.5,17.1,12.36,15.9,9.69,18.5,17.45
Replacement Rate,"A replacement rate is the percentage of a worker's pre-retirement income that is paid out by a pension program after the worker retires. In pension systems that pay workers substantially different payouts based on their differing incomes, the replacement rate is a common measurement that can be used to determine the effectiveness of the pension system.",investopedia,1,34.6,15.4,0,13.47,17.7,10.66,19,16.91
Representative Sample,"A representative sample is a subset of a population that seeks to accurately reflect the characteristics of the larger group. For example, a classroom of 30 students with 15 males and 15 females could generate a representative sample that might include six students: three males and three females. Samples are useful in statistical analysis when population sizes are large because they contain smaller, manageable versions of the larger group.",investopedia,1,39.67,13.4,14.1,14.05,15.6,10.5,15.16666667,14.42
Repudiation,"Repudiation involves disputing the validity of a contract and refusing to honor its terms. In investing, repudiation is most relevant in fixed income securities, particularly sovereign debt. Fixed income instruments are fundamentally contracts where the borrower lends a certain amount of principal in return for payments of interest and principal on a preset schedule.",investopedia,1,19.37,15,16.3,15.83,15.1,11.55,14.33333333,17.57
Repurchase Agreement (Repo),"A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price is the implicit overnight interest rate. Repos are typically used to raise short-term capital. They are also a common tool of central bank open market operations.",investopedia,1,56.05,9.2,12.7,10.95,10.3,8.75,10.4,10.29
Reputational Risk,Reputational risk is a threat or danger to the good name or standing of a business or entity. Reputational risk can occur in the following ways:,investopedia,1,58.28,8.4,0,7.93,6.6,8.53,7.5,8.28
Request for Quote (RFQ),"A request for quote (RFQ), also known as an invitation for bid (IFB), is a process in which a company solicits select suppliers and contractors to submit price quotes and bids for the chance to fulfill certain tasks or projects. The RFQ process is especially important to businesses that need a consistent supply of a specific number of standard products. Companies may send RFQs alone or before a request for proposal (RFP).",investopedia,1,55.58,11.5,14.6,10.62,13.7,10.53,16,15.16
Requests for Proposal (RFP),"A request for proposal (RFP) is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it. Most organizations prefer to launch their projects using RFPs, and many governments always use them.",investopedia,1,51.68,10.9,0,13.81,14.4,12.3,13.25,14.98
Required Minimum Distribution (RMD),"A required minimum distribution (RMD) is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age.",investopedia,1,7.53,21.7,0,17.18,26.2,11.75,30,23.62
Required Rate of Return (RRR),"The required rate of return (RRR) is the minimum return an investor will accept for owning a company's stock, as compensation for a given level of risk associated with holding the stock. The RRR is also used in corporate finance to analyze the profitability of potential investment projects.",investopedia,1,38.66,13.8,0,11.78,14.5,10.42,16.5,17.1
Requisition,"A requisition refers to the process of formally requesting a service or item, typically using a purchase requisition form or another standardized document. The requisition process is a standardized way of keeping track of and accounting for all requisitions made within a business.",investopedia,1,32.73,14,0,14.56,15.5,10.21,16.75,16.04
Research Analysts,"A research analyst is a professional who prepares investigative reports on securities or assets for in-house or client use. Other names for this function include securities analyst, investment analyst, equity analyst, rating analyst, or simply ""analyst.""",investopedia,1,19.37,15,0,16.41,16.3,11.55,15,13.87
Research and Development (R&D),Research and development (R&D) includes activities that companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. The goal is typically to take new products and services to market and add to the company's bottom line.,investopedia,1,47.49,10.4,13,11.88,11.1,9.54,10.66666667,13.08
Research and Development (R&D) Expenses,Research and development (R&D) expenses are associated directly with the research and development of a company's goods or services and any intellectual property generated in the process. A company generally incurs R&D expenses in the process of finding and creating new products or services.,investopedia,1,23.77,15.4,0,14.5,16.1,11.19,17.5,17.89
Research Associate,"A research associate typically works within a research department of an investment bank or asset management firm to provide helpful data to the decision-makers who buy and sell securities for the firm. A research associate can plan, organize, and conduct research about industries, sectors, individual companies, markets, various investment vehicles, and economics.",investopedia,1,-15.15,28.3,0,17.65,33.1,13.81,21,31.57
Research Report,"A research report is a document prepared by an analyst or strategist who is a part of the investment research team in a stock brokerage or investment bank. A research report may focus on a specific stock or industry sector, a currency, commodity or fixed-income instrument, or on a geographic region or country. Research reports generally, but not always, have actionable recommendations such as investment ideas that investors can act upon.",investopedia,1,38.96,13.7,16.3,12.6,15,9.93,17.16666667,16.8
Reserve Bank of India (RBI),"The Reserve Bank of India (RBI) is the central bank of India, which was established on Apr. 1, 1935, under the Reserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the country’s currency and credit systems.",investopedia,1,45.09,13.4,0,9.87,14.2,11,16.5,15.78
Reserve Currency,"A reserve currency is a large quantity of currency maintained by central banks and other major financial institutions to prepare for investments, transactions, and international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are priced in the reserve currency, causing other countries to hold this currency to pay for these goods.",investopedia,1,0.09,28.7,0,15.16,35.8,11.81,23,32.54
Reserve Fund,"A reserve fund is a savings account or other highly liquid asset set aside by an individual or business to meet any future costs or financial obligations, especially those arising unexpectedly. If the fund is set up to meet the costs of scheduled upgrades, less liquid assets may be used. For example, a homeowner's association often manages a reserve fund to help maintain the community and its amenities using the dues paid by homeowners.",investopedia,1,46.4,12.9,13.6,11.55,14.5,10.41,15.66666667,15.29
Reserve Price,"Common to auctions, a reserve price or a reservation price is the minimum amount that a seller will accept as the winning bid. Alternatively, it is less commonly known as the highest price a buyer is willing to pay for a good or service. The reserve price prevents a bidder who offers a price lower than what the owner will accept from winning the auction.",investopedia,1,66.37,9.4,9.7,8.36,10.6,8.6,12.16666667,11.14
Reserve Ratio,"The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country's central bank, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.",investopedia,1,63.39,8.5,10.5,10.03,9.7,8.96,8.833333333,10.6
Reserve Requirements,"Reserve requirements are the amount of cash that banks must have, in their vaults or at the closest Federal Reserve bank, in line with deposits made by their customers. Set by the Fed's board of governors, reserve requirements are one of the three main tools of monetary policy—the other two tools are open market operations and the discount rate.",investopedia,1,28.51,23.9,0,11.8,31.5,10.84,18.25,27.67
Resident Alien,"A resident alien is a foreign-born United States resident who is not a U.S. citizen. A resident alien is also known as a permanent resident or a lawful permanent resident, which means they are considered an immigrant who has been legally and lawfully recorded as a resident of the country. A resident alien must have a green card or pass a substantial presence test.",investopedia,1,49.86,11.6,15.9,9.57,11.5,8.15,15.66666667,12.27
Residential Mortgage-Backed Security (RMBS),"Residential mortgage-backed securities (RMBS) are a debt-based security (similar to a bond), backed by the interest paid on loans for residences. The interest on loans such as mortgages, home-equity loans and subprime mortgages is considered to be something with a comparatively low rate of default and a comparatively high rate of interest, since there is a high demand for the ownership of a personal or family residence. Investors are attracted to this kind of security also want to be protected from the risk of default inherent with individual loans of this kind. This risk is mitigated by pooling many such loans to minimize the risk of an individual default.",investopedia,1,35.31,15.1,17.4,11.9,16.3,9.63,18.25,17.53
Residual Dividend,"A residual dividend is a dividend policy that companies use when calculating the dividends to be paid to shareholders, whereby the amount of dividends paid to shareholders amounts to what profits are left over after the company has paid for its capital expenditures (CAPEX) and working capital costs.",investopedia,1,14.3,23.2,0,14.06,27.7,10.62,38,25.87
Residual Income,"Residual income is income that one continues to receive after the completion of the income-producing work. Examples of residual income include royalties, rental/real estate income, interest and dividend income, and income from the ongoing sale of consumer goods (such as music, digital art, or books), among others. In corporate finance, residual income can be used as a measure of corporate performance, whereby a company's management team evaluates the income generated after paying all relevant costs of capital. Alternatively, in personal finance, residual income can be defined as either the income received after substantially all of the work has been completed, or as the income left over after paying all personal debts and obligations.",investopedia,1,25.83,16.7,18.5,14.45,19,9.93,19.25,19.11
Residual Standard Deviation,Residual standard deviation is a statistical term used to describe the difference in standard deviations of observed values versus predicted values as shown by points in a regression analysis.,investopedia,1,16.66,18.1,0,15.91,19.7,12.15,22.5,21.26
Residual Sum of Squares (RSS),"A residual sum of squares (RSS) is a statistical technique used to measure the amount of variance in a data set that is not explained by a regression model itself. Instead, it estimates the variance in the residuals, or error term.",investopedia,1,59.13,10.1,0,8.88,10.8,9.66,12.75,13.08
Residual Value,"The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life. In lease situations, the lessor uses the residual value as one of its primary methods for determining how much the lessee pays in periodic lease payments. As a general rule, the longer the useful life or lease period of an asset, the lower its residual value.",investopedia,1,55.58,11.5,13.6,8.3,11.6,8.99,15.33333333,13.49
Resistance (Resistance Level),"Resistance, or a resistance level, is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. Resistance levels can be short-lived if new information comes to light that changes the overall market’s attitude toward the asset, or they can be long-lasting. In terms of technical analysis, the simple resistance level can be charted by drawing a line along the highest highs for the time period being considered. Resistance can be contrasted with support.",investopedia,1,56.08,11.3,13.4,10.33,13,9.17,15,12.8
Resolution Trust Corporation (RTC),"The Resolution Trust Corporation (RTC) is a now-defunct temporary federal agency. From 1989 to 1995, it largely resolved the savings and loan (S&L) crisis of the 1980s, which resulted in about a third of such U.S. institutions failing within a 10-year span. The RTC became a massive property-management company, cleaning up what was, at the time, the largest collapse of U.S. financial institutions since the Great Depression.",investopedia,1,48.84,12,14.1,12.71,15.3,11.81,14.83333333,14.89
Resource Curse,"The resource curse is a term used to describe a paradoxical situation in which a country underperforms economically, despite being home to valuable natural resources. The resource curse may also be called the resource trap or the paradox of plenty.",investopedia,1,22.42,20.1,0,13.36,23.3,9.96,12.5,21
Restatement,"A restatement is an act of revising one or more of a company’s previous financial statements to correct an error. Restatements are necessary when it is determined that a previous statement contained a ""material"" inaccuracy. This can result from accounting mistakes, noncompliance with generally accepted accounting principles (GAAP), fraud, misrepresentation, or a simple clerical error.",investopedia,1,19.06,15.1,17.5,16.65,16.2,11.72,15.5,19.68
Restricted Cash,"Restricted cash, in contrast to unrestricted cash, is not freely available for a company to spend or invest. Restricted cash refers to money that is held for a specific purpose and thus not available to the company for immediate or general business use.",investopedia,1,49.65,11.7,0,10.62,12.4,8.74,14.75,12.32
Restricted Stock,"Restricted stock refers to unregistered shares of ownership in a corporation that are issued to corporate affiliates, such as executives and directors. Restricted stock is non-transferable and must be traded in compliance with special Securities and Exchange Commission (SEC) regulations.",investopedia,1,17.34,15.8,0,18.1,18,12.52,17,21
Restrictive Covenant,"A restrictive covenant, also known as a negative covenant, is any type of agreement in a contract or obligation that restricts the buyer from taking some action or requires they abstain from a specific action. In bond obligations (debentures), restrictive covenants disallow issuers from activities such as taking on new debt or other corporate actions.",investopedia,1,43.56,14,0,13.81,17.9,11.6,18.25,16.82
Restructuring,"Restructuring is an action taken by a company to significantly modify the financial and operational aspects of the company, usually when the business is facing financial pressures. Restructuring is a type of corporate action taken that involves significantly modifying the debt, operations, or structure of a company as a way of limiting financial harm and improving the business.",investopedia,1,8.2,19.3,0,15.1,19.3,9.98,23.5,19.19
Restructuring Charge,"A restructuring charge is a one-time expense that a company pays when reorganizing its operations. Examples of one-time expenses include furloughing or laying off employees, closing manufacturing plants or shifting production to a new location. Companies undertake these moves in an effort to boost profitability, but first must take a one-off hit in the form of an upfront restructuring charge.",investopedia,1,34.26,13.5,15.9,14.45,14.9,10.94,15,16.67
Resume,A resume is a formal document that a job applicant creates to itemize his or her qualifications for a position. A resume is usually accompanied by a customized cover letter in which the applicant expresses an interest in a specific job or company and draws attention to the most relevant specifics on the resume.,investopedia,1,35.61,15,0,10.62,14.7,9.95,20.5,18.95
Retail Banking,"Retail banking, also known as consumer banking or personal banking, is banking that provides financial services to individual consumers rather than businesses. Retail banking is a way for individual consumers to manage their money, have access to credit, and deposit their money in a secure manner. Services offered by retail banks include checking and savings accounts, mortgages, personal loans, credit cards, and certificates of deposit (CDs).",investopedia,1,40.69,13.1,11.9,15.08,16.7,10.71,13.33333333,11.83
Retail Investor,"A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities or funds that contain a basket of securities such as mutual funds and exchange traded funds (ETFs).",investopedia,1,27.49,18.1,0,12.66,20.7,11.24,22.5,18.57
Retail Price Index (RPI),"The Retail Price Index (RPI) is one of the two main measures of consumer inflation produced by the United Kingdom's Office for National Statistics (ONS). It is not considered an official statistic by the U.K., but it is used for certain types of cost escalation. The RPI was introduced in the U.K. in 1947, and it was made official in 1956.",investopedia,1,67.79,8.8,12.5,8.01,10.4,10.34,12.83333333,12.71
Retail Sales,Retail sales tracks consumer demand for finished goods by measuring the purchases of durable and non-durable goods over a defined period of time.,investopedia,1,56.59,11.1,0,13.52,15.3,13.02,14.5,14.42
Retained Earnings,"Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that, because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created.",investopedia,1,52.7,10.5,12.6,12.24,12.4,8.18,12,10.1
Retainer Fee,"A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf. These fees, almost always paid upfront, only ensure the commitment of the receiver. In addition, retainer fees usually do not represent the total final cost of the services provided.",investopedia,1,43.43,12,13.8,11.02,11.8,10.13,13.125,13.95
Retention Bonus,"A retention bonus is a targeted payment or reward outside of an employee's regular salary that is offered as an incentive to keep a key employee on the job during a particularly crucial business cycle, such as a merger or acquisition, or during a crucial production period. This payment, meant to keep an employee from leaving their position, is typically a one-time payment.",investopedia,1,31.04,16.8,0,11.38,17.7,9.71,22.25,20.22
Retention Ratio,"The retention ratio is the proportion of earnings kept back in the business as retained earnings. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends. It is the opposite of the payout ratio, which measures the percentage of profit paid out to shareholders as dividends. The retention ratio is also called the plowback ratio.",investopedia,1,53.92,10,12.2,10.67,10.6,7.93,11.125,10.4
Retirement Income Certified Professional (RICP),"The term Retirement Income Certified Professional (RICP) refers to a financial professional who specializes in retirement income planning. Financial professionals earn the RICP designation after following the program for retirement income professionals. Once qualified, RICPs advise retirees and near-retirees as to the best way to use the assets they have accumulated for retirement to live comfortably within a realistic budget and not run out of money prematurely.",investopedia,1,23.46,15.5,17.9,17.12,17.9,9.93,17.83333333,16.08
Retirement Money Market Account,"A retirement money market account is a money market account that an individual holds within a retirement account such as an IRA. In a retirement money market account, deposits are placed in low-risk investments such as certificates of deposit (CDs), Treasury bills, and short-term commercial paper.",investopedia,1,39.67,13.4,0,13.76,16,9.58,15,13.55
Retirement Planning,"Retirement planning is the process of determining retirement income goals, and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to gauge whether the retirement income goal will be achieved. Some retirement plans change depending on whether you're in, say, the United States, or Canada, which has its own system of workplace-sponsored plans. ",investopedia,1,43.22,12.1,14.2,15.37,15.7,10.88,13.5,12.93
Retracement,"A retracement is a technical term used to identify a minor pullback or change in the direction of a financial instrument, such as a stock or index. Retracements are temporary in nature and do not indicate a shift in the larger trend.",investopedia,1,58.62,10.3,0,8.82,10.6,10.32,15,16.02
Retrocession,"Retrocession refers to kickbacks, trailer fees or finders fees that asset managers pay to advisers or distributors. These payments are often done discreetly and are not disclosed to clients, although they use client funds to pay the fees.",investopedia,1,60.65,9.5,0,12.94,13.1,11.64,11.5,11.81
Return,"A return, also known as a financial return, in its simplest terms, is the money made or lost on an investment over some period of time.",investopedia,1,62.01,11.1,0,6.68,11.5,7.96,16,15.02
Return of Capital (ROC),"Return of capital occurs when an investor receives a portion of their original investment that is not considered income or capital gains from the investment. Note that a return of capital reduces an investor's adjusted cost basis. Once the stock's adjusted cost basis has been reduced to zero, any subsequent return will be taxable as a capital gain.",investopedia,1,51.89,10.8,14.1,11.43,12,9.22,13.33333333,11.17
Return on Assets (ROA),"Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings.",investopedia,1,41.7,12.7,0,8.82,11.1,10.32,15,15.07
Return on Average Assets (ROAA),"Return on average assets (ROAA) is an indicator used to assess the profitability of a firm's assets, and it is most often used by banks and other financial institutions as a means to gauge financial performance. It is also known as simply return on assets (ROA).",investopedia,1,48.13,12.3,0,9.35,12.3,9.58,15,14.42
Return on Average Capital Employed (ROACE),"The return on average capital employed (ROACE) is a financial ratio that shows profitability versus the investments a company has made in itself. This metric differs from the related return on capital employed (ROCE) calculation, in that it takes the averages of the opening and closing capital for a period of time, as opposed to only the capital figure at the end of the period.",investopedia,1,30.03,17.1,0,10.8,17.7,10.11,23.25,17.92
Return on Average Equity (ROAE),"Return on average equity (ROAE) is a financial ratio that measures the performance of a company based on its average shareholders' equity outstanding. Typically, ROAE refers to a company's performance over a fiscal year, so the ROAE numerator is net income and the denominator is computed as the sum of the equity value at the beginning and end of the year, divided by 2.",investopedia,1,30.54,17,0,10.4,17.2,9.91,25,20.3
Return on Capital Employed (ROCE),"Return on capital employed (ROCE) is a financial ratio that can be used in assessing a company's profitability and capital efficiency. In other words, this ratio can help to understand how well a company is generating profits from its capital as it is put to use.",investopedia,1,39.67,13.4,0,9.99,12.6,8.55,17,14.42
Return on Equity (ROE),"Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a measure of a corporation's profitability in relation to stockholders’ equity.",investopedia,1,28.54,13.6,16.7,13.34,13.1,9.35,14.33333333,16.15
Return on Invested Capital (ROIC),Return on invested capital (ROIC) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital ratio gives a sense of how well a company is using its capital to generate profits.,investopedia,1,31.72,14.4,0,12.02,13.9,10.02,17.75,15.22
Return on Investment (ROI),"Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.",investopedia,1,31.21,14.6,0,14.05,15.8,8.9,18.5,17.9
Return on Net Assets (RONA),Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.,investopedia,1,54.73,9.7,0,9.16,9.1,9.24,10.75,11.45
Return on Revenue (ROR),Return on revenue (ROR) is a measure of company profitability based on the amount of revenue generated. Return on revenue compares the amount of net income generated for each dollar of revenue.,investopedia,1,46.78,10.7,0,11.08,10.4,7.39,9,8.9
Return on Risk-Adjusted Capital (RORAC),"The return on risk-adjusted capital (RORAC) is a rate of return measure commonly used in financial analysis, where various projects, endeavors, and investments are evaluated based on capital at risk. Projects with different risk profiles are easier to compare with each other once their individual RORAC values have been calculated.",investopedia,1,29.18,15.4,0,14.92,17.7,10.25,19.5,18.8
Return on Sales (ROS),"Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency. This measure provides insight into how much profit is being produced per dollar of sales. An increasing ROS indicates that a company is growing more efficiently, while a decreasing ROS could signal impending financial troubles. ROS is very closely related to a firm's operating profit margin.",investopedia,1,39.33,11.5,13.4,12.11,11.1,11.22,10.75,14
Return on Total Assets (ROTA),"Return on total assets (ROTA) is a ratio that measures a company's earnings before interest and taxes (EBIT) relative to its total net assets. It is defined as the ratio between net income and total average assets, or the amount of financial and operational income a company receives in a financial year as compared to the average of that company's total assets.",investopedia,1,31.55,16.6,0,10.63,16.9,9.5,20.5,16.27
Returned Payment Fee,"The term returned payment fee refers to a charge issued by a financial institution or another creditor when a consumer bounces a payment (i.e., your bank is unable to process the transaction due to a variety of reasons). Payments may be returned because of insufficient funds, account closures, or account freezes. Returned payment fees discourage customers from submitting checks or other forms of payment they know will not clear.",investopedia,1,56.59,11.1,13,13.12,15.2,10.73,14.5,13.84
Revaluation Reserve,Revaluation reserve is an accounting term used when a company creates a line item on its balance sheet for the purpose of maintaining a reserve account tied to certain assets. This line item can be used when a revaluation assessment finds that the carrying value of the asset has changed.,investopedia,1,54.56,11.9,0,10.51,13.6,9.61,16,14
Revealed Preference,"Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and the item's price are held constant, is the best indicator of their preferences.",investopedia,1,28.51,17.7,0,14.52,21.8,12.29,25,21.84
Revenue,Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.,investopedia,1,45.25,11.3,0,13.92,13.2,10.37,11.75,13.86
Revenue Agent's Report (RAR),"The Revenue Agent’s Report (RAR) is a detailed document that describes an IRS examiner's audit findings and states the amount of deficiency or refund the agent finds the taxpayer to owe or be owed, respectively. Taxpayers have the right to disagree with a revenue agent's report and can choose to fight the agent's findings through a formal protest to the IRS Office of Appeals division by appealing to the U.S. Tax Court, or by paying the new assessment but then suing for a refund.",investopedia,1,37.31,18.5,0,10.75,22.2,11.36,25.5,21.09
Revenue Bond,"A revenue bond is a category of municipal bond supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium. Revenue bonds that finance income-producing projects are thus secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.",investopedia,1,39.37,13.6,14.6,11.84,14.3,11.11,15.66666667,15.61
Revenue Cap Regulations,"Revenue cap regulation seeks to limit the amount of total revenue that can be earned by a firm operating in an industry with no or few other competitors. An industry such as this, where one or a few companies control the entire production and sale of a good or service, is known as a monopoly or a concentrated industry.",investopedia,1,49.99,13.6,0,8.66,14.2,9.38,19.75,17.22
Revenue Deficit,"A revenue deficit occurs when realized net income is less than the projected net income. This happens when the actual amount of revenue and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditures. This is the opposite of a revenue surplus, which occurs when the actual amount of net income exceeds the projected amount.",investopedia,1,51.89,10.8,14.1,12.24,12.6,8.13,13.33333333,12.55
Revenue Generating Unit (RGU),"A revenue generating unit (RGU) is an individual service subscriber who generates recurring revenue for a company. This is used as a performance measure for management, analysts, and investors. RGUs are tracked by telecom companies, cable companies and other businesses that have a base of subscribers for a service. RGU growth can occur organically or through acquisitions.",investopedia,1,40.04,11.2,13.4,13.56,12,10.72,10.375,13.44
Revenue Officer,"A revenue officer is an individual who collects revenues, such as taxes and duties, on behalf of the government or some agency. The specific duties of a revenue officer depend on the particular organization that employs the individual.",investopedia,1,26.81,14.2,0,12.36,12.6,9.57,13.5,11.81
Revenue Passenger Mile (RPM),"A revenue passenger mile (RPM) is a transportation industry metric that shows the number of miles traveled by paying passengers and is typically an airline traffic statistic. Revenue passenger miles are calculated by multiplying the number of paying passengers by the distance traveled. For example, an airplane with 100 passengers that flies 250 miles has generated 25,000 RPM.",investopedia,1,43.43,12,14.6,14.1,14.3,10.86,13.66666667,13.24
Revenue per Available Room (RevPAR),Revenue per available room (RevPAR) is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. RevPAR is also calculated by dividing a hotel's total room revenue by the total number of available rooms in the period being measured.,investopedia,1,35.27,13.1,14.1,12.13,12.7,10.12,13.16666667,14.62
Revenue per Available Seat Mile (RASM),"Revenue per available seat mile (RASM) is a unit of measurement commonly used to compare the efficiency of various airlines. It is obtained by dividing operating income by available seat miles (ASM). Generally, the higher the RASM, the more profitable the airline under question. Revenue is represented in cents and is not solely limited to ticket sales, as other factors of efficiency and profitability are taken into account.",investopedia,1,45.76,11.1,12.6,12.18,12,10.52,11.25,12.68
Revenue per Employee,Revenue per employee—calculated as a company's total revenue divided by its current number of employees—is an important ratio that roughly measures how much money each employee generates for the firm. The revenue-per-employee ratio is most useful when looking at historical changes in a company's own ratio or when comparing it against that of other companies in the same industry as part of a fundamental analysis.,investopedia,1,21.57,18.3,0,14.11,20.3,10.59,23.75,20.38
Revenue per User (RPU),"Revenue per user (RPU) is a ratio used to express revenue generated by a company on a per-user basis. It is most often used by companies that generate revenue by selling subscription services and measures how robust the product usage is across the customer base. Social media sites that allow free access also use the revenue per user ratio. Since free social media sites generate revenue through ad sales, more users equal more foot traffic to their sites which equates to higher revenues from ad space. Monitoring customer usage and revenue per user is a quick litmus test for these companies to keep in touch with their financial health.",investopedia,1,57.81,10.6,11.2,10.56,12.5,9.21,11.6,10.92
Revenue Recognition,"Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized and determines how to account for it. Typically, revenue is recognized when a critical event has occurred, and the dollar amount is easily measurable to the company.",investopedia,1,22.75,15.8,0,15.44,17,10.96,19.5,21.37
Reversal,"A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart.",investopedia,1,67.55,6.9,11.6,7.41,6.1,7.35,7.3,7.5
Reverse Auction,"A reverse auction is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services. In a regular auction, a seller puts up an item and buyers place bids until the close of the auction, at which time the item goes to the highest bidder. In a reverse auction, the buyer puts up a request for a required good or service. Sellers then place bids for the amount they are willing to be paid for the good or service, and at the end of the auction the seller with the lowest amount wins.",investopedia,1,70.47,9.9,6,6.39,10.9,7.81,12.75,10.78
Reverse Culture Shock,"Reverse culture shock is the emotional and psychological distress suffered by some people when they return home after a number of years overseas. This can result in unexpected difficulty in readjusting to the culture and values of the home country, now that the previously familiar has become unfamiliar.",investopedia,1,30.2,15,0,13.7,15.8,10.09,16,16.27
Reverse ICO,"A reverse initial coin offering (ICO) is a method used by existing, established real-world businesses to issue a token to decentralize its ecosystem, raise funds, and get into cryptocurrency. These enterprises have existing products and services, and they cater to real-world customers.",investopedia,1,33.24,13.8,0,15.2,16.5,11.82,15.5,15.07
Reverse Morris Trust,A reverse Morris trust (RMT) is a tax-optimization strategy in which a company wishing to spin-off and subsequently sell assets to an interested party can do so while avoiding taxes on any gains from such asset disposal.,investopedia,1,33.92,17.7,0,11.38,20.5,11.02,24.5,19.12
Reverse Repurchase Agreement,"A reverse repurchase agreement, or ""reverse repo"", is the purchase of securities with the agreement to sell them at a higher price at a specific future date. For the party selling the security (and agreeing to repurchase it in the future) it is a repurchase agreement (RP) or repo; for the party on the other end of the transaction (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement (RRP) or reverse repo.",investopedia,1,31.38,18.7,0,9.35,20.4,8.79,24.25,18.33
Reverse Stock Split,"A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares. Reducing the total number of outstanding shares in the open market can be pursued for a number of reasons, and often signals a company in distress.",investopedia,1,45.59,13.2,0,11.67,15.1,10.16,16.25,14.91
Reverse Takeover (RTO),A reverse takeover (RTO) is a process whereby private companies can become publicly traded companies without going through an initial public offering (IPO).,investopedia,1,39.67,13.4,0,15.55,17.5,13.02,14.5,12.68
Reverse Triangular Mergers,"A reverse triangular merger is the formation of a new company that occurs when an acquiring company creates a subsidiary, the subsidiary purchases the target company, and the subsidiary is then absorbed by the target company.",investopedia,1,18.02,19.7,0,13.41,21.4,10.25,26,18.84
Revocable Beneficiary,"A revocable beneficiary does not have guaranteed rights to receive compensation from an entity such as an insurance policy or a trust fund. The policy owner reserves the right to make changes to who receives payment, change the terms of the policy, or terminate the policy without the need of revocable beneficiary consent. Most life insurance policies have this feature.",investopedia,1,42.72,12.3,15.5,12.76,13.4,9.1,14.66666667,13.33
Revocable Trust,"A revocable trust is a trust whereby provisions can be altered or canceled dependent on the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.",investopedia,1,55.07,11.7,0,10.62,13.6,9.04,15.75,15.51
Revolver,"A revolver refers to a borrower—either an individual or a company—who carries a balance from month to month, via a revolving credit line. Borrowers are only obligated to make minimum monthly payments, which go toward paying interest and reducing principal debt. Revolvers are used in finance by corporations to fund working capital needs, which are expenses for day-to-day operations such as payroll.",investopedia,1,33.54,13.7,15.9,13.69,14.7,11.79,15.33333333,16.02
Revolving Credit,"Revolving credit is an agreement that permits an account holder to borrow money repeatedly up to a set dollar limit while repaying a portion of the current balance due in regular payments. Each payment, minus the interest and fees charged, replenishes the amount available to the account holder.",investopedia,1,38.66,13.8,0,12.48,14.9,10.75,15,14.6
Revolving Door,"The term ""revolving door"" refers to the movement of high-level employees from public-sector jobs to private-sector jobs and vice versa. The idea is that there is a revolving door between the two sectors as many legislators and regulators become lobbyists and consultants for the industries they once regulated and some private industry heads or lobbyists receive government appointments that relate to their former private posts.",investopedia,1,30.03,17.1,0,15.27,21.3,10.59,24.25,19.15
Revolving Loan Facility,"A revolving loan facility is a form of credit issued by a financial institution that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again. A revolving loan is considered a flexible financing tool due to its repayment and re-borrowing accommodations. It is not considered a term loan because, during an allotted period of time, the facility allows the borrower to repay the loan or take it out again. In contrast, a term loan provides a borrower with funds followed by a fixed payment schedule.",investopedia,1,40.18,13.2,15.6,10.86,12.9,9.14,16,15.22
Ricardian Equivalence,Ricardian equivalence is an economic theory that says that financing government spending out of current taxes or future taxes (and current deficits) will have equivalent effects on the overall economy.,investopedia,1,24.11,17.4,0,15.97,20.6,13.02,23,21.33
Rider,"A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy. Riders provide insured parties with additional coverage options, or they may even restrict or limit coverage. There is an additional cost if a party decides to purchase a rider. Most are low in cost because they involve minimal underwriting. A rider is also referred to as an insurance endorsement. It can be added to policies that cover life, homes, autos, and rental units.",investopedia,1,57.47,8.7,11.9,9.74,8.5,10.03,8.25,9.86
Right of First Offer,"A right of first offer is a contractual obligation that allows the right holder to purchase an asset before the owner tries to sell it to someone else. If the right holder is no longer interested in the property, the seller can then sell it to a third party. Rights of first offer are most commonly used in the real estate industry and the sale of businesses.",investopedia,1,65.76,9.6,11.9,8.19,10.5,8.04,13.5,12.5
Right of First Refusal,"Right of first refusal (ROFR), also known as first right of refusal, is a contractual right to enter into a business transaction with a person or company before anyone else can. If the party with this right declines to enter into a transaction, the obligor is free to entertain other offers. This is a popular clause among lessees of real estate because it gives them preference to the properties in which they occupy. However, it may limit what the owner could receive from interested parties competing for the property.",investopedia,1,48.84,12,13.4,10.57,12.6,8.29,14.375,12.96
Right of Rescission,"The right of rescission is a right, set forth by the Truth in Lending Act (TILA) under U.S. federal law, of a borrower to cancel a home equity loan or line of credit with a new lender, or to cancel a refinance transaction done with another lender other than the current mortgagee, within three days of closing. The right is provided on a no-questions-asked basis, and the lender must give up its claim to the property and refund all fees within 20 days of exercising the right of rescission.",investopedia,1,43.23,18.3,0,9.24,22.3,10.81,27.25,21.4
Right-to-Work Law,"A right-to-work law gives workers the freedom to choose whether or not to join a labor union in the workplace. This law also makes it optional for employees in unionized workplaces to pay for union dues or other membership fees required for union representation, whether they are in the union or not. Right-to-work is also known as workplace freedom or workplace choice.",investopedia,1,67.38,9,9.7,10.85,12.4,8.74,11.66666667,10.86
Rights Offering (Issue),"A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a company's stockholders the right, but not the obligation, to purchase additional shares in the company.",investopedia,1,13.62,25.5,0,13.94,32.5,12,20.75,29.82
Ring-Fence,"A ring-fence is a virtual barrier that segregates a portion of an individual's or company's financial assets from the rest. This may be done to reserve money for a specific purpose, to reduce taxes on the individual or company, or to protect the assets from losses incurred by riskier operations.",investopedia,1,37.64,14.2,0,10.86,14.3,10.56,17.5,17.2
Ripple,"Ripple is a term used to conceptualize the day-to-day fluctuations in stock market prices. It has been discussed throughout the evolution of Dow Theory, a basic framework for technical analysis investing.",investopedia,1,38.82,11.7,0,14.03,12.7,11.54,11.75,15.23
Ripple (Cryptocurrency),"Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012; it was co-founded by Chris Larsen and Jed McCaleb. Ripple's main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.",investopedia,1,40.38,13.2,15.5,13.99,15.5,11.58,15.83333333,15.49
Risk-Adjusted Return,A risk-adjusted return is a calculation of the profit or potential profit from an investment that takes into account the degree of risk that must be accepted in order to achieve it. The risk is measured in comparison to that of a virtually risk-free investment—usually U.S. Treasuries.,investopedia,1,39.16,13.6,0,11.78,14.3,10.51,15.75,16.21
Risk-Adjusted Return On Capital (RAROC),"Risk-adjusted return on capital (RAROC) is a modified return on investment (ROI) figure that takes elements of risk into account. In financial analysis, projects and investments with greater risk levels must be evaluated differently; RAROC thus accounts for changes in an investment’s profile by discounting risky cash flows against less-risky cash flows.",investopedia,1,36.63,14.6,0,15.79,19.1,12.21,19,18.86
Risk Analysis,"Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector. Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the probability of a project's success or failure, and possible future economic states.",investopedia,1,29.52,17.3,0,14.23,20.7,11.73,24.5,20.47
Risk Assessment,"Risk assessment is a general term used across many industries to determine the likelihood of loss on an asset, loan, or investment. Assessing risk is essential for determining how worthwhile a specific investment is and the best process(es) to mitigate risk. It presents the upside reward compared to the risk profile. Risk assessment is important in order to determine the rate of return an investor would need to earn to deem an investment worth the potential risk.",investopedia,1,51.89,10.8,15.2,11.55,12.1,8.9,14.125,13.43
Risk-Averse,The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return.,investopedia,1,43.73,11.9,0,17.52,17.3,12.06,13.5,13.92
Risk-Based Capital Requirement,"Risk-based capital requirement refers to a rule that establishes minimum regulatory capital for financial institutions. Risk-based capital requirements exist to protect financial firms, their investors, their clients, and the economy as a whole. These requirements ensure that each financial institution has enough capital on hand to sustain operating losses while maintaining a safe and efficient market.",investopedia,1,27.11,14.1,17.5,18.16,17.3,10.77,15.66666667,16.05
Risk Control,"Risk control is the set of methods by which firms evaluate potential losses and take action to reduce or eliminate such threats. It is a technique that utilizes findings from risk assessments, which involve identifying potential risk factors in a company's operations, such as technical and non-technical aspects of the business, financial policies and other issues that may affect the well-being of the firm.",investopedia,1,30.54,17,0,14.05,20.1,12.13,22,18.43
Risk-Free Asset,"A risk-free asset is one that has a certain future return—and virtually no possibility of loss. Debt obligations issued by the U.S. Department of the Treasury (bonds, notes, and especially Treasury bills) are considered to be risk-free because the ""full faith and credit"" of the U.S. government backs them. Because they are so safe, the return on risk-free assets is very close to the current interest rate.",investopedia,1,62.88,8.7,11.2,10.5,10.9,9.65,10.375,10.9
Risk-Free Rate Of Return,The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. The real risk-free rate can be calculated by subtracting the current inflation rate from the yield of the Treasury bond matching your investment duration.,investopedia,1,42,12.5,15,12.94,14,9.5,14.66666667,15.38
Risk Management,"In the financial world, risk management is the process of identification, analysis, and acceptance or mitigation of uncertainty in investment decisions. Essentially, risk management occurs when an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment, such as a moral hazard, and then takes the appropriate action (or inaction) given the fund's investment objectives and risk tolerance.",investopedia,1,13.62,19.3,0,15.85,21.8,12.38,26.5,23.43
Risk Measures,"Risk measures are statistical measures that are historical predictors of investment risk and volatility, and they are also major components in modern portfolio theory (MPT). MPT is a standard financial and academic methodology for assessing the performance of a stock or a stock fund as compared to its benchmark index.",investopedia,1,29.18,15.4,0,13.76,16.5,11.82,19,20.4
Risk Neutral,"Risk neutral is a concept used in both game theory studies and in finance. It refers to a mindset where an individual is indifferent to risk when making an investment decision. This mindset is not derived from calculation or rational deduction, but rather from an emotional preference. A person with a risk-neutral approach simply doesn't focus on the risk--regardless of whether or not that is an ill-advised thing to do. This mindset is often situational and can be dependent on price or other external factors.",investopedia,1,54.22,9.9,13,10.96,10.9,9.68,11.5,13.39
Risk-Neutral Measures,"A risk neutral measure is a probability measure used in mathematical finance to aid in pricing derivatives and other financial assets. Risk neutral measures give investors a mathematical interpretation of the overall market’s risk averseness to a particular asset, which must be taken into account in order to estimate the correct price for that asset.",investopedia,1,26.64,16.4,0,14.22,17.9,10.17,17.75,16.09
Risk-Neutral Probabilities,"Risk-neutral probabilities are probabilities of potential future outcomes adjusted for risk, which are then used to compute expected asset values. In other words, assets and securities are bought and sold as if the hypothetical fair, single probability for an outcome were a reality, even though that is not, in fact, the actual scenario.",investopedia,1,27.66,16,0,13.35,17.3,10.91,18.25,17.39
Risk-On Risk-Off,Risk-on risk-off is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk-on risk-off refers to changes in investment activity in response to global economic patterns.,investopedia,1,53.71,10.1,0,13.74,13.6,10.37,11.75,12.71
Risk Parity,Risk parity is a portfolio allocation strategy that uses risk to determine allocations across various components of an investment portfolio. The risk parity strategy modifies the modern portfolio theory (MPT) approach to investing through the use of leverage.,investopedia,1,18.35,15.4,0,16.01,15.6,12.06,17.5,20.23
Risk Premium,A risk premium is the investment return an asset is expected to yield in excess of the risk-free rate of return. An asset's risk premium is a form of compensation for investors. It represents payment to investors for tolerating the extra risk in a given investment over that of a risk-free asset.,investopedia,1,53.92,10,12.5,9.1,9.4,8.14,11.33333333,11.54
Risk Profiles,A risk profile is an evaluation of an individual's willingness and ability to take risks. It can also refer to the threats to which an organization is exposed. A risk profile is important for determining a proper investment asset allocation for a portfolio. Organizations use a risk profile as a way to mitigate potential risks and threats.,investopedia,1,40.04,11.2,13.4,10.49,9.2,9.61,10.375,14.14
Risk-Return Tradeoff,"The risk-return tradeoff states that the potential return rises with an increase in risk. Using this principle, individuals associate low levels of uncertainty with low potential returns, and high levels of uncertainty or risk with high potential returns. According to the risk-return tradeoff, invested money can render higher profits only if the investor will accept a higher possibility of losses.",investopedia,1,34.26,13.5,14.1,14.91,15.3,9.89,13.66666667,13.33
Risk Reversal,"A risk reversal is a hedging strategy that protects a long or short position by using put and call options. This strategy protects against unfavorable price movements in the underlying position but limits the profits that can be made on that position. If an investor is long a stock, they could create a short risk reversal to hedge their position by buying a put option and selling a call option.",investopedia,1,64.75,10,13.6,10.62,12.9,9.08,15,12.18
Risk/Reward Ratio,"The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. Consider the following example: an investment with a risk-reward ratio of 1:7 suggests that an investor is willing to risk $1, for the prospect of earning $7. Alternatively, a risk/reward ratio of 1:3 signals that an investor should expect to invest $1, for the prospect of earning $3 on their investment.",investopedia,1,55.78,11.4,12.2,11.32,14.3,8.47,14.375,12.05
Risk Tolerance,"Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand in their financial planning. Risk tolerance is an important component in investing. You should have a realistic understanding of your ability and willingness to stomach large swings in the value of your investments; if you take on too much risk, you might panic and sell at the wrong time.",investopedia,1,49.15,11.9,15,11.43,13.3,9.51,15.33333333,15.47
Risk-Weighted Assets,Risk-weighted assets are used to determine the minimum amount of capital that must be held by banks and other financial institutions in order to reduce the risk of insolvency. The capital requirement is based on a risk assessment for each type of bank asset.,investopedia,1,49.15,11.9,0,10.68,12.6,10.11,15.5,15.16
Rival Good,"A rival good is a type of product or service that can only be possessed or consumed by a single user. When a good is rival in consumption, it may be subject to strong demand and fierce competition—factors that tend to drive up prices.",investopedia,1,66.07,9.5,0,7.49,10,9.39,12,10.62
Roadshow,"A roadshow is a series of presentations made in various locations leading up to an initial public offering (IPO). The roadshow is a sales pitch or promotion made by the underwriting firm and a company's management team to potential investors before going public. Roadshows generally take place in major cities and are meant to drum up interest in the upcoming offer. Potential investors are introduced to the company, its history, and its key personnel.",investopedia,1,44.24,11.7,14.9,11.78,12,9.68,13.5,14.97
Robber Baron,"A robber baron is one of America’s successful industrialists during the 19th century, which was also known as the Gilded Age. A robber baron is a term that is also sometimes attributed to any successful businessperson whose practices are considered unethical or unscrupulous. This behavior can include employee or environmental abuse, stock market manipulation, or deliberately restricting output to charge higher prices.",investopedia,1,23.09,17.7,0,16.6,21.6,11.29,15.66666667,22.08
Robinson-Patman Act,"The Robinson-Patman Act is a federal law passed in 1936 to outlaw price discrimination. The Robinson-Patman Act is an amendment to the 1914 Clayton Antitrust Act and is supposed to prevent ""unfair"" competition.",investopedia,1,46.27,10.9,0,12.64,12.2,10.68,10.75,10.24
Robo Advisor,"Robo-advisors (also spelled robo-adviser or roboadvisor) are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey and then uses the data to offer advice and automatically invest client assets.",investopedia,1,10.74,18.3,0,19.44,22.2,14.48,20.25,20.41
Robotic Process Automation (RPA),"Robotic process automation (RPA) occurs when basic tasks are automated through software or hardware systems that function across a variety of applications, just as human workers do. The software or robot can be taught a workflow with multiple steps and applications, such as taking received forms, sending a receipt message, checking the form for completeness, filing the form in a folder, and updating a spreadsheet with the name of the form, the date filed, and so on. RPA software is designed to reduce the burden for employees of completing repetitive, simple tasks.",investopedia,1,40.31,15.3,14.1,12.6,18.4,11.34,19,16.63
Robust,"In the world of investing, robust is a characteristic describing a model's, test's, or system's ability to perform effectively while its variables or assumptions are altered. A robust concept will operate without failure and produce positive results under a variety of conditions.",investopedia,1,24.78,15,0,14.62,15.9,12.57,15.5,17.92
Rogue Trader,"A rogue trader is a trader who acts recklessly and independently of others, usually to the detriment of the institution that employs the trader and perhaps clients. Rogue traders typically play with high-risk investments that can produce huge losses or gains.",investopedia,1,50.67,11.3,0,13.11,14,11.2,13.25,14.05
Roll-Down Return,A roll-down return is a strategy for maximizing a bond's overall yield by exploiting the yield curve. It is dependant on the fact that the value of a bond converges to par as its maturity date approaches.,investopedia,1,61.16,9.3,0,8.41,9.2,9.68,12.25,13.89
Roll Forward,"Roll forward refers to extending the expiration or maturity of an option, futures contract, or forward by closing the initial contract and opening a new longer-term contract for the same underlying asset at the then-current market price. A roll forward enables the trader to maintain the position beyond the initial expiration of the contract, since options and futures contracts have finite expiration dates. It is usually carried out shortly before expiration of the initial contract and requires that the gain or loss on the original contract be settled.",investopedia,1,33.28,15.9,14.1,13.82,18.4,10.29,18.33333333,14.9
Roll Yield,"Roll yield is the amount of return generated in the futures market after an investor rolls a short-term contract into a longer-term contract and profits from the convergence of the futures price toward a higher spot or cash price. Roll yield is positive when a futures market is in backwardation, which occurs when a futures contract trades at a higher price as it approaches expiration, compared to when the contract is further away from expiration.",investopedia,1,3.81,31.4,0,12.61,39.8,10.94,22.25,33.2
Rolling Returns,"Rolling returns, also known as ""rolling period returns"" or ""rolling time periods,"" are annualized average returns for a period, ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods, similar to those actually experienced by investors.",investopedia,1,32.22,14.2,0,14.74,16.7,9.75,16.5,16.98
Rollover,"A rollover may entail a number of actions, most popularly the transfer of the holdings of one retirement plan to another without creating a taxable event. A rollover may also entail reinvesting funds from a mature security into a new issue of the same or similar security, or moving a FOREX (FX) position to the following delivery date, in which case the rollover incurs a charge.",investopedia,1,37.98,16.2,0,10.57,17.7,10.3,22,18.05
Rollover Risk,"Rollover risk is a risk associated with the refinancing of debt. Rollover risk is commonly faced by countries and companies when a loan or other debt obligation (like a bond) is about to mature and needs to be converted, or rolled over, into new debt. If interest rates have risen in the meantime, they would have to refinance their debt at a higher rate and incur more interest charges in the future—or, in case of a bond issue, pay out more in interest.",investopedia,1,60.28,11.7,13.6,8.36,13.6,9.77,17.16666667,14.94
Roth 401(k),"A Roth 401(k) is an employer-sponsored investment savings account that is funded with after-tax dollars up to the plan's contribution limit. This type of investment account is well-suited for people who think they will be in a higher tax bracket in retirement than they are now, as withdrawals are tax-free. The traditional 401(k) plan, by contrast, is funded with pretax money, which results in a tax on future withdrawals.",investopedia,1,56.59,11.1,13,11.84,14.6,9.81,14.5,12.1
Roth IRA,"A Roth IRA is an individual retirement account (IRA) that allows qualified withdrawals on a tax-free basis provided certain conditions are satisfied. Established in 1997, it was named after William Roth, a former Delaware Senator.",investopedia,1,36.79,12.5,0,14.09,14,12.63,13.25,17.29
Round Lot,"A round lot is a standard number of securities to be traded on an exchange. In stocks, a round lot is considered 100 shares or a larger number that can be evenly divided by 100. In bonds, a round lot is usually $100,000 worth.",investopedia,1,73.47,6.7,9.7,5.33,5.5,9.03,7.666666667,9.52
Routing Transit Number (RTN),A routing transit number is a nine-digit number used to identify a bank or financial institution when clearing funds for electronic transfers or processing checks in the United States. A routing transit number is also used in online banking and clearinghouses for financial transactions. Only federally chartered and state-chartered banks that are eligible to maintain an account at a Federal Reserve Bank are issued routing transit numbers.,investopedia,1,31.92,14.3,14.6,15.03,16.1,10.63,15.16666667,14.89
Roy's Safety-First Criterion (SFRatio),"Roy's safety-first criterion, also known as the SFRatio, is an approach to investment decisions that sets a minimum required return for a given level of risk. Roy's safety-first criterion allows investors to compare potential portfolio investments based on the probability that the portfolio returns will fall below their minimum desired return threshold.",investopedia,1,28.17,15.8,0,16.02,19.1,11,19.5,16.55
Royalty,"A royalty is a legally binding payment made to an individual or company for the ongoing use of their assets, including copyrighted works, franchises, and natural resources. An example of royalties would be payments received by musicians when their original songs are played on the radio or television, used in movies, performed at concerts, bars, and restaurants, or consumed via streaming services. In most cases, royalties are revenue generators specifically designed to compensate the owners of songs or property when they license out their assets for another party's use.",investopedia,1,32.87,16.1,17.5,14.23,19.2,12.03,21.16666667,19.07
Rule 10b-5,"Rule 10b-5 is a regulation created under the Securities and Exchange Act of 1934 that targets securities fraud. This rule makes it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the process of conducting transactions involving stock and other securities.",investopedia,1,23.6,17.5,0,16.2,21,11.36,23.25,20.07
Rule 10b-18,"Rule 10B-18 is a Securities and Exchange Commission (SEC) rule that is intended to reduce liability for companies (and their affiliated purchasers) when the company repurchases shares of the company's common stock. Rule 10B-18 is considered a safe harbor provision. A safe harbor is a legal provision to reduce or eliminate legal or regulatory liability in certain situations as long as certain conditions are met. If the company abides by the four conditions of Rule 10B-18 when it is repurchasing the shares, the SEC will not deem the transactions in violation of anti-fraud provisions of the Securities Exchange Act of 1934.",investopedia,1,28.81,17.6,19.3,12.89,20.1,10.15,18.5,20.61
Rule 10b5-1,"Rule 10b5-1, established by the Securities and Exchange Commission (SEC) in 2000, allows insiders of publicly-traded corporations to set up a trading plan for selling stocks they own. It is a clarification of Rule 10b-5 (sometimes written as Rule 10b5), created under the Securities and Exchange Act of 1934, which is the primary vehicle for investigation of securities fraud.",investopedia,1,33.07,16,0,13.3,18.7,11.52,21.25,18.58
Rule 144,"Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission (SEC) that sets the conditions under which restricted, unregistered, and control securities can be sold or resold. Rule 144 provides an exemption from registration requirements to sell the securities through public markets if a number of specific conditions are met. The regulation applies to all types of sellers, in addition to issuers of securities, underwriters, and dealers.",investopedia,1,36.79,12.5,14.9,13.8,13.6,10.59,13,13.86
Rule 144A,The term Rule 144A refers to a legal provision that amends restrictions placed on trades of privately placed securities. This safe harbor loosens restrictions set forth by Rule 144 under Section 5 of the Securities Act of 1933 required for sales of securities by the Securities and Exchange Commission (SEC).,investopedia,1,46.1,13,0,12.6,15.5,10.88,17,14
Rule of 70,The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double. The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. The rule is commonly used to compare investments with different annual compound interest rates to quickly determine how long it would take for an investment to grow. The rule of 70 is also referred to as doubling time.,investopedia,1,58.11,10.5,13,7.66,9.9,7.82,13.75,12.79
Rule of 72,"The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.",investopedia,1,39,15.8,0,7.79,14.7,9.17,21,19.05
Rule 72(t),Rule 72(t) allows penalty-free withdrawals from IRA accounts and other tax-advantaged retirement accounts like 401(k) and 403(b) plans. It is issued by the Internal Revenue Service.,investopedia,1,45.09,13.4,0,15.79,20,15.25,7,15.02
Rule of 78,"The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan.",investopedia,1,61.5,11.3,0,7.67,12.1,9.42,17.25,15.13
Rule of Thumb,"A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of practice and experience rather than through scientific research or a theoretical foundation.",investopedia,1,33.95,13.6,15.9,14.39,14.8,11.11,15.16666667,17.3
Run Rate,The run rate refers to the financial performance of a company based on using current financial information as a predictor of future performance. The run rate functions as an extrapolation of current financial performance and assumes that current conditions will continue.,investopedia,1,33.75,13.6,0,15.14,15.3,10.05,16.25,15.03
Runoff Insurance,"Runoff insurance is an insurance policy provision that covers claims made against companies that have been acquired, merged, or have ceased operations. Runoff insurance, also known as closeout insurance, is purchased by the company being acquired and indemnifies—exempts from liability—the acquiring company from lawsuits against the directors and officers of the acquired company.",investopedia,1,0.76,26.3,0,19.05,34.4,12.22,21.25,28.75
Russell 1000 Index,"The term Russell 1000 Index refers to a stock market index that is used as a benchmark by investors. It is a subset of the larger Russell 3000 Index and represents the 1000 top companies by market capitalization in the United States. The Russell 1000 is owned and operated by FTSE Russell Group, which is based in the United Kingdom. The Russell 1000 is considered a bellwether index for large-cap investing.",investopedia,1,55.88,11.4,11.2,10.68,13.3,9.04,13.83333333,12.86
Russell 2000 Index,"The Russell 2000 index measures the performance of the 2,000 smaller companies that are included in the Russell 3000 Index, which itself is made up of nearly all U.S. stocks. The Russell 2000 is widely regarded as a bellwether of the U.S. economy because of its focus on smaller companies that focus on the U.S. market.",investopedia,1,51.52,13,0,9.35,14.8,10.38,17,14.77
Russell 3000 Index,The Russell 3000 Index is a market-capitalization-weighted equity index maintained by FTSE Russell that provides exposure to the entire U.S. stock market.,investopedia,1,23.77,15.4,0,17.23,18.7,14.06,14,14.25
S Corporation (S Subchapter),"An S corporation, also known as an S subchapter, refers to a type of corporation that meets specific Internal Revenue Code requirements. If it does, it may pass income (along with other credits, deductions, and losses) directly to shareholders, without having to pay federal corporate taxes. Usually associated with small businesses (100 or fewer shareholders), S corp status effectively gives a business the regular benefits of incorporation while enjoying the tax-exempt privileges of a partnership.",investopedia,1,29.18,15.4,18.9,14.97,18,12.25,20.16666667,20.67
S&P 500 Index (Standard & Poor's 500 Index),"The S&P 500 Index, or the Standard & Poor's 500 Index, is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the U.S. It is not an exact list of the top 500 U.S. companies by market capitalization because there are other criteria to be included in the index. The index is widely regarded as the best gauge of large-cap U.S. equities. Other common U.S. stock market benchmarks include the Dow Jones Industrial Average, or Dow 30, and the Russell 2000 Index, which represents the small-cap index.",investopedia,1,42.04,14.6,14.6,11.44,17.2,10.52,14,15.74
S&P 500 Dividend Aristocrats Index,The S&P 500 Dividend Aristocrats Index is a list of companies in the S&P 500 with a track record of increasing dividends for at least 25 consecutive years.,investopedia,1,51.52,13,0,9.12,14.3,11.79,20,19.77
Safe Deposit Box,"A safe deposit box (or safety deposit box) is an individually secured container—usually a metal box—that stays in the safe or vault of a federally insured bank or credit union. Safe deposit boxes are used to keep valuables, important documents, and sentimental keepsakes protected. Customers rely on the security of the building and vault to safeguard their contents.",investopedia,1,43.43,12,12.5,13,13.4,10.04,12.33333333,13.24
Safe Harbors,"A safe harbor is a legal provision to sidestep or eliminate legal or regulatory liability in certain situations, provided that certain conditions are met.",investopedia,1,13.28,17.4,0,14.22,16.3,10.75,19,21.27
Safe Haven,"A safe haven is a type of investment that is expected to retain or increase in value during times of market turbulence. Investors seek out safe havens in order to limit their exposure to losses in the event of market downturns. However, what assets are actually deemed safe havens can vary depending on the specific nature of the down market. That means in order for an investment to act as a safe haven, investors must perform ample due diligence.",investopedia,1,59.84,9.8,11.7,9.57,10.6,9.62,12.125,11.46
Sale,"A sale is a transaction between two or more parties in which the buyer receives tangible or intangible goods, services, or assets in exchange for money. In some cases, other assets are paid to a seller. In the financial markets, a sale can also refer to an agreement that a buyer and seller make regarding the price of a security.",investopedia,1,59.64,9.9,11.2,8.24,9.9,8.84,12,12
Sales and Purchase Agreement (SPA),"A sales and purchase agreement (SPA) is a binding legal contract between two parties that obligates a transaction between a buyer and a seller. SPAs are typically used for real estate transactions, but they are found in all areas of business. The agreement finalizes the terms and conditions of the sale, and it is the culmination of negotiations between the buyer and the seller.",investopedia,1,49.86,11.6,12.5,10.79,12.5,10.12,13.33333333,13.52
Sales Lead,"A sales lead is a person or business who may eventually become a client. Sales lead also refers to the data that identifies an entity as a potential buyer of a product or service. Businesses gain access to sales leads through advertising, trade shows, direct mailings, third parties, and other marketing efforts. A sales lead is not really a sales ""prospect"" per se because a business would need to examine and qualify the potential new client further to determine their intent and interest.",investopedia,1,50.36,11.4,13.4,10.62,12.2,9.8,13.625,13.62
Sales Tax,"A sales tax is a consumption tax imposed by the government on the sale of goods and services. A conventional sales tax is levied at the point of sale, collected by the retailer, and passed on to the government. A business is liable for sales taxes in a given jurisdiction if it has a nexus there, which can be a brick-and-mortar location, an employee, an affiliate, or some other presence, depending on the laws in that jurisdiction.",investopedia,1,53.85,12.1,15,9.29,13.5,9.01,17.16666667,14.96
Salvage Value,"Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important component in the calculation of a depreciation schedule.",investopedia,1,36.63,14.6,0,10.57,14.3,8.27,17,13.48
Sampling,"Sampling is a process used in statistical analysis in which a predetermined number of observations are taken from a larger population. The methodology used to sample from a larger population depends on the type of analysis being performed, but it may include simple random sampling or systematic sampling.",investopedia,1,30.2,15,0,13.81,15.9,10.09,16.5,15.43
Sampling Distribution,A sampling distribution is a probability distribution of a statistic obtained from a larger number of samples drawn from a specific population. The sampling distribution of a given population is the distribution of frequencies of a range of different outcomes that could possibly occur for a statistic of a population.,investopedia,1,20.72,16.6,0,13.99,16.4,9.61,18.5,14.8
Sampling Errors,"A sampling error is a statistical error that occurs when an analyst does not select a sample that represents the entire population of data. As a result, the results found in the sample do not represent the results that would be obtained from the entire population.",investopedia,1,48.13,12.3,0,10.28,12.5,9.58,14.5,13.55
Samurai Bond,A Samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.,investopedia,1,35.27,13.1,0,12.65,13.1,12.06,13.5,13.92
Sarbanes-Oxley (SOX) Act of 2002,"The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial reporting by corporations. Also known as the SOX Act of 2002 and the Corporate Responsibility Act of 2002, it mandated strict reforms to existing securities regulations and imposed tough new penalties on lawbreakers.",investopedia,1,33.58,15.8,0,12.89,17.6,12.15,20.5,19.19
Savings Account,"A savings account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs.",investopedia,1,41.19,12.9,0,13.46,14.8,9.11,13.75,13.25
Savings and Loan Crisis (S&L) Crisis,"The Savings and Loan (S&L) Crisis was a slow-moving financial disaster. The crisis came to a head and resulted in the failure of nearly a third of the 3,234 savings and loan associations in the United States between 1986 and 1995.",investopedia,1,59.13,10.1,0,8.59,10.6,9.27,12.75,12.1
Say's Law of Markets,"Say's Law of Markets comes from chapter XV, ""Of the Demand or Market for Products"" of French economist Jean-Baptiste Say's 1803 book, Treatise on Political Economy. It is a classical economic theory that says that the income generated by past production and sale of goods is the source of spending that creates demand to purchase current production. Modern economists have developed varying views and alternative versions of Say's Law.",investopedia,1,48.13,12.3,15,12.94,15.1,12.1,15.83333333,15.58
Scalability,"Scalability is a characteristic of an organization, system, model, or function that describes its capability to cope and perform well under an increased or expanding workload or scope. A system that scales well will be able to maintain or even increase its level of performance or efficiency even as it is tested by larger and larger operational demands.",investopedia,1,33.58,15.8,0,12.6,17.3,11.06,18.5,17.12
Scalping,Scalping is a trading strategy geared towards profiting from minor price changes in a stock's price. Traders who implement this strategy place anywhere from 10 to a few hundred trades in a single day with the belief that small moves in stock price are easier to catch than large ones; traders who implement this strategy are known as scalpers. Many small profits can easily compound into large gains if a strict exit strategy is used to prevent large losses.,investopedia,1,61.7,11.2,13,10.68,14.5,9.74,16.16666667,13.05
Schedule 13D,"Schedule 13D is a form that must be filed with the U.S. Securities and Exchange Commission (SEC) when a person or group acquires more than 5% of any class of a company's equity shares. There are several pieces of relevant information that must be disclosed within 10 days of the transaction. Schedule 13D is also known as a ""beneficial ownership report.""",investopedia,1,64.41,8.1,12.2,9.04,8.9,10.35,10.125,12.02
Schedule 13G,The Securities and Exchange Commission (SEC) Schedule 13G form is an alternative filing for the Schedule 13D form and is used to report a party's ownership of stock which exceeds 5% of a company's total stock issue. Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements. Schedule 13G can be filed in lieu of the SEC Schedule 13D form as long as the filer meets one of several exemptions.,investopedia,1,55.27,11.6,13,9.93,13.1,10.25,15.16666667,14.1
Schedule A (Form 1040 or 1040-SR): Itemized Deductions,Schedule A (Form 1040 or 1040-SR): Itemized Deductions is an Internal Revenue Service (IRS) form for U.S. taxpayers who choose to itemize their tax-deductible expenses rather than take the standard deduction.,investopedia,1,40.01,15.4,0,14.75,21.1,13.32,21.5,18.85
What Is Schedule K-1?,"Schedule K-1 is a federal tax document used to report the income, losses, and dividends of a business' or financial entity's partners or an S corporation's shareholders. The Schedule K-1 document is prepared for each individual partner and is included with the partner’s personal tax return. An S corporation reports activity on Form 1120S, while a partnership reports transactions on Form 1065.",investopedia,1,33.54,13.7,15.9,12.94,14.3,11.28,15.33333333,17.31
Scope,Scope refers to the combined objectives and requirements needed to complete a project. The term is often used in project management. Properly defining the scope of a project allows managers to estimate costs and the time required to finish the project. That's what makes scope management such an important part of a business—it saves both time and money. There are generally two different types of scope in project management. These are project and product scope.,investopedia,1,75.71,5.8,10.5,11.35,9.3,8.68,6.916666667,8.2
Scrips,"A scrip is better known as a substitute or alternative to legal tender. Holding a scrip entitles the bearer to receive something in return. Scrips come in many different forms, primarily as a form of credit, with the document acknowledging the debt. Scrips also represent a temporary document representing fractional shares resulting from a split or spin-off, or they may indicate currency issued by a private corporation such as frequent flier miles.",investopedia,1,44.75,11.5,14.6,12.41,12.4,11.11,13,14.98
Seasonally Adjusted Annual Rate (SAAR),"A seasonally adjusted annual rate (SAAR) is a rate adjustment used for economic or business data, such as sales numbers or employment figures, that attempts to remove seasonal variations in the data. Most data is affected by the time of the year, and adjusting for the seasonality means that more accurate relative comparisons can be drawn between different time periods.",investopedia,1,32.57,16.2,0,12.78,18.1,10.91,23,22
SEC Form S-1,"SEC Form S-1 is the initial registration form for new securities required by the SEC for public companies that are based in the U.S. Any security that meets the criteria must have an S-1 filing before shares can be listed on a national exchange, such as the New York Stock Exchange. Companies usually file SEC Form S-1 in anticipation of their initial public offering (IPO). Form S-1 requires companies to provide information on the planned use of capital proceeds, detail the current business model and competition and provide a brief prospectus of the planned security itself, offering price methodology and any dilution that will occur to other listed securities.",investopedia,1,35.31,15.1,15.6,11.96,16.3,10.21,16.75,15.69
SEC Yield,"The SEC yield is a standard yield calculation developed by the U.S. Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period after the deduction of the fund's expenses. It is also referred to as the ""standardized yield.""",investopedia,1,57.27,8.8,12,10.2,9.3,10.87,8.4,11.89
Second World,"The outdated term ""second world"" included countries that were once controlled by the Soviet Union. Second world countries were centrally planned economies and one-party states. Notably, the use of the term ""second world"" to refer to Soviet countries largely fell out of use in the early 1990s, shortly after the end of the Cold War.",investopedia,1,69.82,8.1,10.5,11.31,11.8,8.56,10.83333333,10.23
Secondary Market,"The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the ""stock market,"" though stocks are also sold on the primary market when they are first issued. The national exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, are secondary markets.",investopedia,1,69.41,8.2,9.7,10.15,11,8.23,10.66666667,10.34
Section 1035 Exchange,"A 1035 exchange is a provision in the Internal Revenue Service (IRS) code allowing for a tax-free transfer of an existing annuity contract, life insurance policy, long-term care product, or endowment for another one of like kind. To qualify for a Section 1035 exchange, the contract or policy owner must also meet certain other requirements.",investopedia,1,35.1,15.2,0,12.25,16.9,10.17,19.75,18.27
Section 1231 Property,"Section 1231 property is a type of property, defined by section 1231 of the U.S. Internal Revenue Code. Section 1231 property is real or depreciable business property held for more than one year.",investopedia,1,68.77,6.4,11.2,9.84,7.8,9.45,6.5,8.04
Section 1245,"Section 1245 is codified in the United States Code (USC) at Title 26-Internal Revenue Code (IRC), Subtitle A-Income Taxes, Chapter 1-Normal Taxes and Surtaxes, Subchapter P-Capital Gains and Losses, Part IV-Special Rules for Determining Capital Gains and Losses, Section 1245-Gain from dispositions of certain depreciable property. This (lengthy!) taxonomy usefully informs us that Section 1245 covers the applicable tax rate for gains from the sale or transfer of depreciable and amortizable property. Let’s dig deeper to learn what kind of property is covered and what tax rate applies to it.",investopedia,1,32.57,16.2,17.1,14.52,20,11.79,21,17.78
Section 1250,Section 1250 of the United States Internal Revenue Code is a rule establishing that the IRS will tax a gain from the sale of depreciated real property as ordinary income if the accumulated depreciation exceeds the depreciation calculated with the straight-line method.,investopedia,1,20.39,20.8,0,15.22,25.5,11.36,30,24.42
Sector,"A sector is an area of the economy in which businesses share the same or related business activity, product, or service. Sectors represent a large grouping of companies with similar business activities, such as the extraction of natural resources and agriculture.",investopedia,1,33.75,13.6,0,13.58,14.4,11.2,15.75,18.93
Sector Breakdown,"A sector breakdown is the mix of sectors within a fund or portfolio, typically expressed as a portfolio percentage. Sector designations can vary depending on the fund’s investment criteria and overall objective.",investopedia,1,38.32,11.9,0,14.85,13.4,12.82,12.5,16.4
Secular Market Trends Occur Over the Long-Term,"In finance, secular is a descriptive word used to refer to market activities that occur over the long term. Secular can also point to specific stocks or stock sectors unaffected by short-term trends. Secular trends are not seasonal or cyclical. Instead, they remain consistent over time.",investopedia,1,59.8,7.8,11.7,11.7,9.5,9.01,7,10.69
Securities And Exchange Board of India (SEBI),The Securities and Exchange Board of India (SEBI) is the most important regulator of securities markets in India. SEBI is the counterpart of the Securities and Exchange Commission (SEC) in the U.S. Its stated objective is “to protect the interests of investors in securities and to promote the development of and to regulate the securities market and for matters connected therewith or incidental thereto.”,investopedia,1,32.94,14,15.9,13.05,14.5,10.12,15.66666667,14.77
Securities Act of 1933,The Securities Act of 1933 was created and passed into law to protect investors after the stock market crash of 1929. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and to establish laws against misrepresentation and fraudulent activities in the securities markets.,investopedia,1,35.1,15.2,0,15.73,19.2,11.32,19.75,19
Securities and Exchange Commission (SEC),"The U.S. Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. It also approves registration statements for bookrunners among underwriting firms.",investopedia,1,16.83,16,17.7,19.2,19.2,11.97,16.75,18.44
Securities Exchange Act of 1934,"The Securities Exchange Act of 1934 (SEA) was created to govern securities transactions on the secondary market, after issue, ensuring greater financial transparency and accuracy and less fraud or manipulation.",investopedia,1,7.19,19.7,0,17.36,22,11.97,24,22.67
Securities Lending,"Securities lending is the practice of loaning shares of stock, commodities, derivative contracts, or other securities to other investors or firms. Securities lending requires the borrower to put up collateral, whether cash, other securities, or a letter of credit.",investopedia,1,26.3,14.4,0,15.14,15.6,10.68,13.75,12.93
Security,"The term ""security"" refers to a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation via stock; a creditor relationship with a governmental body or a corporation represented by owning that entity's bond; or rights to ownership as represented by an option.",investopedia,1,19.2,17.2,0,15.09,18.7,12.4,22.75,21.92
Security Market Line (SML) Definition,"The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.",investopedia,1,12.27,24,0,13.07,28.3,12.43,34,25.6
Seed Capital,"The term seed capital refers to the type of financing used in the formation of a startup. Funding is provided by private investors—usually in exchange for an equity stake in the company or for a share in the profits of a product. Much of the seed capital a company raises may come from sources close to its founders including family, friends, and other acquaintances. Obtaining seed capital is the first of four funding stages required for a startup to become an established business.",investopedia,1,58.82,10.2,14.2,10.39,11.7,9.23,14.125,12.66
Seigniorage,"Seigniorage is the difference between the face value of money, such as a $10 bill or a quarter coin, and the cost to produce it. In other words, the economic cost of producing a currency within a given economy or country is lower than the actual exchange value, which generally accrues to governments who mint the money.",investopedia,1,42.55,14.4,0,9.17,14.6,8.93,18.25,16.31
Self-Directed IRA (SDIRA),"A self-directed individual retirement account (SDIRA) is a type of individual retirement account (IRA) that can hold a variety of alternative investments normally prohibited from regular IRAs. Although the account is administered by a custodian or trustee, it's directly managed by the account holder—the reason it's called ""self-directed.""",investopedia,1,13.28,17.4,0,16.83,19.3,11.41,19.5,19.6
Self Employed Contributions Act (SECA),"The Self-Employed Contributions Act (SECA) tax is a levy from the U.S. government on those who work for themselves, rather than for an outside company. It requires self-employed workers to contribute tax equivalent to both the employer and employee portions of the Federal Insurance Contributions Act (FICA) tax, which funds Social Security and Medicare. ",investopedia,1,35.1,15.2,0,13.7,18.3,11.03,20.25,16.82
Self-Employment,"A self-employed person does not work for a specific employer who pays them a consistent salary or wage. Self-employed individuals, or independent contractors, earn income by contracting with a trade or business directly.",investopedia,1,37.81,12.1,0,14.44,13.7,10.2,13.25,16.3
Self-Regulatory Organization (SRO),"A self-regulatory organization (SRO) is an entity such as a non-governmental organization, which has the power to create and enforce stand-alone industry and professional regulations and standards on its own.",investopedia,1,-1.28,20.9,0,16.55,21.7,11.44,23,21.33
Sell in May and Go Away,"Sell in May and go away is a well-known financial-world adage. It is based on the historical underperformance of some stocks in the ""summery"" six-month period commencing in May and ending in October, compared to the ""wintery"" six-month period from November to April. If an investor follows this strategy, they would divest their equity holdings in May (or at least, the late spring) and invest again in November (or the mid-autumn).",investopedia,1,47.42,12.5,14.6,11.03,14.4,9.04,15.83333333,13.42
Sell-Side,"Sell-side is the part of the financial industry that is involved with the creation, promotion, and sale of stocks, bonds, foreign exchange, and other financial instruments to the public market. The sell-side can also include private capital market instruments such as private placements of debt and equity. Sell-side individuals and firms work to create and service products that are made available to the buy-side of the financial industry.",investopedia,1,48.43,12.1,14.1,14.05,16,9.17,15,12.61
Seller Financing,"Seller Financing is a real estate agreement in which the seller handles the mortgage process instead of a financial institution. Instead of applying for a conventional bank mortgage, the buyer signs a mortgage with the seller.",investopedia,1,26.48,18.5,0,13.76,21.7,11.12,11.5,19.96
"Selling, General, & Administrative Expense (SG&A)","Selling, general and administrative expense (SG&A) is reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses (G&A) of a company. SG&A, also known as SGA, includes all the costs not directly tied to making a product or performing a service. That is, SG&A includes the costs to sell and deliver products and services and the costs to manage the company.",investopedia,1,47.12,12.7,15,10.57,13.9,9.21,16.33333333,13.49
Senior Bank Loan,A senior bank loan is a debt financing obligation issued to a company by a bank or similar financial institution and then repackaged and sold to investors. The repackaged debt obligation consists of multiple loans. Senior bank loans hold legal claim to the borrower's assets above all other debt obligations.,investopedia,1,54.52,9.8,13.6,12,11.3,10.15,11.66666667,13.08
Sensex,"Sensex, otherwise known as the S&P BSE Sensex index, is the benchmark index of India's BSE, formerly known as the Bombay Stock Exchange.) The Sensex is comprised of 30 of the largest and most actively-traded stocks on the BSE, providing a gauge of India's economy. The index's composition is reviewed in June and December each year. Created in 1986, the Sensex is the oldest stock index in India. Analysts and investors use it to observe the cycles of India's economy and the development and decline of particular industries.",investopedia,1,53.61,10.2,12.3,10.15,10.8,10.43,11.4,11.59
Sensitivity Analysis,"A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions. In other words, sensitivity analyses study how various sources of uncertainty in a mathematical model contribute to the model's overall uncertainty. This technique is used within specific boundaries that depend on one or more input variables.",investopedia,1,18.05,15.5,15.9,16.24,15.8,11.67,14.66666667,16
Serial Correlations,"Serial correlation occurs in a time series when a variable and a lagged version of itself (for instance a variable at times T and at T-1) are observed to be correlated with one another over periods of time. Repeating patterns often show serial correlation when the level of a variable affects its future level. In finance, this correlation is used by technical analysts to determine how well the past price of a security predicts the future price.",investopedia,1,45.39,13.3,15,10.45,14.1,9.83,17.16666667,14.96
Series I Bond,"A series I bond is a non-marketable, interest-bearing U.S. government savings bond that earns a combined fixed interest rate and variable inflation rate (adjusted semiannually). Series I bonds are meant to give investors a return plus protection on their purchasing power.",investopedia,1,42.21,12.5,0,14.27,15.5,12.36,14.75,14.05
Series 3,"The Series 3 is an exam, also known as the National Commodities Futures Examination, administered by the Financial Industry Regulatory Authority (FINRA) on behalf of the National Futures Association (NFA). Candidates who pass the exam are eligible to register with the NFA and sell commodity futures contracts and options on commodity futures contracts. The Series 3 is one of a number of exams for investment professionals administered by FINRA, including the Series 7, General Securities Representative Exam, which is required for brokers who wish to sell corporate, government, or other types of securities.",investopedia,1,6.17,20.1,19.6,14.75,20.3,10.78,23.83333333,20.57
Series 6,"The Series 6 is a securities license entitling the holder to register as a company's representative and sell certain types of mutual funds, variable annuities, and insurance. Holders of the Series 6 license are not authorized to sell corporate or municipal securities, direct participation programs, and options. With Series 6, an individual can purchase or sell certain types of mutual funds, variable life insurance, municipal fund securities, variable annuities, and unit investment trusts.",investopedia,1,21.43,16.3,17.9,15.44,17.9,10.68,18.83333333,17.39
Series 9/10,"Series 9/10 refers to a two-part securities exam and license entitling the holder to supervise sales activities at a general securities-oriented branch office. Before taking the Series 9/10 Exams, also known as the General Securities Sales Supervisor Qualification Exams, a candidate must have a Series 7 license.",investopedia,1,22.24,16,0,14.97,17.1,10.51,17.25,16.21
Series 24,"The Series 24 is an exam and license entitling the holder to supervise and manage branch activities at a broker-dealer. It is also known as the General Securities Principal Qualification Examination and was designed to test the knowledge and competency of candidates aiming to become entry-level securities principals. Supervisory activities allowed after passing the exam include regulatory compliance over trading and market-making activities, underwriting, and advertising.",investopedia,1,-1.63,19,18.6,18.16,18.9,11.9,18.33333333,17.89
Series 57,"Series 57, also known as the Securities Trader Representative Exam, is an examination administered by the Financial Industry Regulatory Authority (FINRA). Passing the Series 57 exam is a requirement for those who wish to become professional traders of either equities or convertible debt securities.",investopedia,1,6.84,17.8,0,15.66,17,11.9,17.5,19.71
Series 63,"The Series 63 is a securities exam and license entitling the holder to solicit orders for any type of security in a particular state. To obtain a Series 63 license, the applicant must pass an exam and possess knowledge of ethical practices and fiduciary obligations.",investopedia,1,40.18,13.2,0,11.26,13,11.42,15.75,17
Series 66,"The Series 66 is an exam and license that is meant to qualify individuals as investment advisor representatives or securities agents. The Series 66, also known as the Uniform Combined State Law Examination, covers topics relevant to providing investment advice and effecting securities transactions for clients.",investopedia,1,14.29,17,0,16.08,17.3,11.99,18,18.77
Series B Financing,"Series B financing is the second round of funding for a business through investment, including private equity investors and venture capitalists. Successive rounds of financing a business are consecutively termed Series A, Series B, and Series C financing. The Series B round generally takes place when the company has accomplished certain milestones in developing its business and is past the initial startup stage.",investopedia,1,33.24,13.8,15,14.68,15.4,10.44,14.83333333,14.75
Series EE Bond,"The Series EE Bond (often referred to as a ""Patriot Bond"") is a non-marketable, interest-bearing U.S. government savings bond. These bonds are guaranteed to at least double in value over the typical 20-year initial term. Some Series EE bonds have total interest-paying lives that extend beyond the original maturity date, up to 30 years from issuance. Coupon rates for Series EE Bonds are determined at the time of issuance and are based on the percentage of the long-term Treasury rates.",investopedia,1,59.64,9.9,12.6,11.14,12.6,10.75,12.75,12
Service Charge,A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction.,investopedia,1,64.2,8.2,0,8.99,8.2,9.5,10.25,12.65
Service Sector,"The service sector produces intangible goods, more precisely services instead of goods, and according to the U.S. Census Bureau, it comprises various service industries including warehousing and transportation services; information services; securities and other investment services; professional services; waste management; health care and social assistance; and arts, entertainment, and recreation. Countries with economies centered around the service sector are considered more advanced than industrial or agricultural economies.",investopedia,1,23.46,15.5,17.5,22.4,22.8,12.52,17.5,20.26
Severance Pay,"Severance pay is the compensation and/or benefits an employer provides to an employee after employment is over. Severance packages may include extended benefits, such as health insurance and outplacement assistance to help an employee secure a new position.",investopedia,1,26.81,14.2,0,15.66,15.3,10.81,16.5,19.18
Shadow Banking System,"A shadow banking system is the group of financial intermediaries facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions. Examples of intermediaries not subject to regulation include hedge funds, unlisted derivatives, and other unlisted instruments, while examples of unregulated activities by regulated institutions include credit default swaps.",investopedia,1,-2.64,19.3,18.2,19.67,20.3,10.73,18.5,16.74
Shadow Pricing,The term shadow pricing is used to refer to either one of two things:,investopedia,1,82.65,5.2,0,4.92,4.4,7.71,6,5.6
Share Certificate,A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the number of shares indicated. A share certificate is also referred to as a stock certificate.,investopedia,1,33.92,17.7,0,11.04,19.9,10.59,12.75,20.21
Share Class,"A share class is a designation applied to a specified type of security such as common stock or mutual fund unit. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as ""Class A"" shares and ""Class B"" shares; these carry different rights and privileges. Mutual funds also have share classes, which carry different sales charges, expense ratios, and minimum initial investment requirements.",investopedia,1,47.12,12.7,15.9,12.77,15.5,10.97,17,16.27
Share of Wallet (SOW),"Share of wallet (SOW) is the dollar amount an average customer regularly devotes to a particular brand rather than to competing brands in the same product category. Companies try to maximize an existing customer's share of wallet by introducing multiple products and services to generate as much revenue as possible from each customer. A marketing campaign, for example, may have a stated goal of increasing the brand's wallet share for specific customers at the expense of its competitors.",investopedia,1,36.63,14.6,16.7,13.12,16.6,11.2,18.66666667,18.61
Share Repurchase,A share repurchase is a transaction whereby a company buys back its own shares from the marketplace. A company might buy back its shares because management considers them undervalued. The company buys shares directly from the market or offers its shareholders the option of tendering their shares directly to the company at a fixed price.,investopedia,1,52.9,10.4,15.5,12.36,12,8.85,13.83333333,13.87
Shareholder,"A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Because shareholders are essentially owners in a company, they reap the benefits of a business’ success. These rewards come in the form of increased stock valuations, or as financial profits distributed as dividends. Conversely, when a company loses money, the share price invariably drops, which can cause shareholders to lose money, or suffer declines in their portfolios’ values.",investopedia,1,40.89,13,15.6,12.36,14.4,9.62,15.625,15.62
Shareholder Activist,A shareholder activist is a person who attempts to use their rights as a shareholder of a publicly-traded corporation to bring about change within or for the corporation.,investopedia,1,43.06,14.2,0,12.42,16.8,9.54,19,14.06
Shareholder Equity (SE),"For corporations, shareholder equity (SE), also referred to as stockholders' equity, is the corporation's owners' residual claim on assets after debts have been paid. Shareholder equity is equal to a firm's total assets minus its total liabilities.",investopedia,1,27.32,14,0,14.21,14.8,11.38,14.25,14.97
Shareholder Equity Ratio,"The shareholder equity ratio indicates how much of a company's assets have been generated by issuing equity shares rather than by taking on debt. The lower the ratio result, the more debt a company has used to pay for its assets. It also shows how much shareholders might receive in the event that the company is forced into liquidation.",investopedia,1,51.48,11,14.1,9.63,10.7,9.16,13.5,13.3
Shareholder Value,"Shareholder value is the value delivered to the equity owners of a corporation due to management's ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.",investopedia,1,32.91,18.1,0,12.95,22.3,11.34,28,23.62
Shareholder Value Added (SVA),"Shareholder value added (SVA) is a measure of the operating profits that a company has produced in excess of its funding costs, or cost of capital. The basic calculation is net operating profit after tax (NOPAT) minus the cost of capital, which is based on the company's weighted average cost of capital.",investopedia,1,36.63,14.6,0,10.22,14.5,10.39,18,14.25
Shareholders' Agreement,"A shareholders' agreement, also called a stockholders' agreement, is an arrangement among shareholders that describes how a company should be operated and outlines shareholders' rights and obligations. The agreement also includes information on the management of the company and privileges and protection of shareholders.",investopedia,1,23.77,15.4,0,18.56,19.4,10.47,18,17.89
Shares,"Shares are units of equity ownership interest in a corporation that exist as a financial asset providing for an equal distribution in any residual profits, if any are declared, in the form of dividends. Shareholders may also enjoy capital gains if the value of the company rises.",investopedia,1,39.16,13.6,0,11.26,13.7,10.85,17.75,17.91
Sharing Economy,"The sharing economy is an economic model defined as a peer-to-peer (P2P) based activity of acquiring, providing, or sharing access to goods and services that is often facilitated by a community-based online platform.",investopedia,1,21.06,18.5,0,14.4,21.5,12.93,23.5,21.68
Shell Corporation,"A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not all necessarily illegal, but they are sometimes used illegitimately, such as to disguise business ownership from law enforcement or the public. Legitimate reasons for a shell corporation include such things as a startup using the business entity as a vehicle to raise, funds, conduct a hostile takeover or to go public.",investopedia,1,30.91,14.7,15.5,13.99,15.9,10.43,16.33333333,16.18
Sherman Antitrust Act,"The Sherman Antitrust Act (the Act) is a landmark U.S. law, passed in 1890, that outlawed trusts—groups of businesses that collude or merge to form a monopoly in order to dictate pricing in a particular market. The Act's purpose was to promote economic fairness and competitiveness and to regulate interstate commerce. The Sherman Antitrust Act was the first attempt by the United States Congress to address the use of trusts as a tool that enables a limited number of individuals to control certain key industries.",investopedia,1,42.75,14.3,14.1,11.73,16.6,11.17,17.83333333,16.03
Shooting Star,"A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the low of the day. It appears after an uptrend. Said differently, a shooting star is a type of candlestick that forms when a security opens, advances significantly, but then closes the day near the open again.",investopedia,1,59.64,9.9,10.5,8.36,10,8.05,11.66666667,10
Short (or Short Position),"A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when she believes that the price of that security is likely to decrease in the near future. There are two types of short positions: naked and covered. A naked short is when a trader sells a security without having possession of it.",investopedia,1,59.84,9.8,12.6,7.78,9.2,8.22,12.625,11.97
Short Call,A short call is an options trading strategy in which the trader is betting that the price of the asset on which they are placing the option is going to drop.,investopedia,1,65.39,11.8,0,6.86,13.4,9.25,16.5,13.69
Short Covering,"Short covering refers to buying back borrowed securities in order to close out an open short position at a profit or loss. It requires purchasing the same security that was initially sold short, and handing back the shares initially borrowed for the short sale. This type of transaction is referred to as buy to cover.",investopedia,1,61.36,9.2,12.5,10.15,10.3,9.14,11.83333333,12.41
Short Interest,"Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be expressed as a number or percentage, is an indicator of market sentiment.",investopedia,1,69.11,8.3,0,8.99,9.9,7.9,12,11.81
Short Interest Ratio,The short Interest ratio is a simple formula that divides the number of shares short in a stock by the stock's average daily trading volume.,investopedia,1,54.56,11.9,0,9.46,12.9,10.56,15.5,14.8
Short Put,"A short put refers to when a trader opens an options trade by selling or writing a put option. The trader who buys the put option is long that option, and the trader who wrote that option is short.",investopedia,1,85.52,6.2,0,6.21,7.8,7.44,8.75,7.8
Short Run,"The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable. In economics, it expresses the idea that an economy behaves differently depending on the length of time it has to react to certain stimuli. The short run does not refer to a specific duration of time but rather is unique to the firm, industry or economic variable being studied.",investopedia,1,54.56,11.9,13.6,9.06,12.7,9.93,15.83333333,15.33
Short Sale,"A short sale is the sale of an asset or stock the seller does not own. It is generally a transaction in which an investor sells borrowed securities in anticipation of a price decline; the seller is then required to return an equal number of shares at some point in the future. In contrast, a seller owns the security or stock in a long position.",investopedia,1,55.41,13.6,0,8.02,15.3,9.38,12.83333333,16.69
Short Squeeze,A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradeable security. For a short squeeze to occur the security must have an unusual degree of short-sellers holding positions in it. The short squeeze begins when the price jumps higher unexpectedly. The condition plays out as a significant measure of the short sellers coincidentally decide to cut losses and exit their positions.,investopedia,1,45.46,11.2,12.6,12.12,11.6,8.84,11.375,10.98
Short-Term Debt,"Short-term debt, also called current liabilities, is a firm's financial obligations that are expected to be paid off within a year. It is listed under the current liabilities portion of the total liabilities section of a company's balance sheet.",investopedia,1,34.76,13.3,0,12.47,13.3,10.68,13.25,12.93
Short-Term Investments,"Short-term investments, also known as marketable securities or temporary investments, are financial investments that can easily be converted to cash, typically within 5 years. Many short-term investments are sold or converted to cash after a period of only 3-12 months. Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.",investopedia,1,28.03,13.8,15.9,17.05,16.8,11.41,13.875,14.44
Shortfall,"A shortfall is an amount by which a financial obligation or liability exceeds the required amount of cash that is available. A shortfall can be temporary, arising out of a unique set of circumstances, or it can be persistent, in which case it may indicate poor financial management practices. Regardless of the nature of a shortfall, it is a significant concern for a company and is usually corrected promptly through short-term loans or equity injections.",investopedia,1,46.1,13,16.3,11.96,15,10.14,17.83333333,17.47
Shrinkage,"Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage, and cashier error. Shrinkage is the difference between recorded inventory on a company's balance sheet and its actual inventory. This concept is a key problem for retailers, as it results in the loss of inventory, which ultimately means loss of profits.",investopedia,1,41.7,12.7,14.6,13.46,14.9,9.94,14.5,13.48
Shutdown Points,"A shutdown point is a level of operations at which a company experiences no benefit for continuing operations and therefore decides to shut down temporarily—or in some cases permanently. It results from the combination of output and price where the company earns just enough revenue to cover its total variable costs. The shutdown point denotes the exact moment when a company’s (marginal) revenue is equal to its variable (marginal) costs—in other words, it occurs when the marginal profit becomes negative.",investopedia,1,35.91,14.9,15.9,13.52,17.2,10.09,18.33333333,15.68
Signature Loan,"A signature loan, also known as a “good faith loan” or “character loan,” is a type of personal loan offered by banks and other finance companies that only requires the borrower’s signature and a promise to pay as collateral. A signature loan can typically be used for any purpose the borrower chooses, although the interest rates may be higher than other forms of credit due to the lack of collateral.",investopedia,1,35.95,16.9,0,10.4,18.4,10.34,23.5,19.14
Silent Partner,"A silent partner is an individual whose involvement in a partnership is limited to providing capital to the business. A silent partner is seldom involved in the partnership's daily operations and does not generally participate in management meetings. Silent partners are also known as limited partners, since their liability is typically limited to the amount invested in the partnership.",investopedia,1,26.1,14.5,16.7,14.68,14.7,9.16,15.5,16.69
Silk Route,"The Silk Route was a historic trade route that dated from the second century B.C. until the 14th century A.D. It stretched from Asia to the Mediterranean, traversing China, India, Persia, Arabia, Greece, and Italy.",investopedia,1,79.09,6.6,0,10.9,12,11.72,8.75,8.14
Silo Mentality,"A silo mentality is a reluctance to share information with employees of different divisions in the same company. This attitude is seen as reducing the organization's efficiency and, at worst, contributing to a damaged corporate culture.",investopedia,1,27.83,13.9,0,13.98,13.9,10.67,15.5,19.42
Simple Agreement for Future Tokens (SAFT),"A Simple Agreement for Future Tokens (SAFT) is an investment contract offered by cryptocurrency developers to accredited investors. It is considered a security and, thus, must comply with securities regulations.",investopedia,1,22.41,13.9,0,16.17,14.7,13.33,11.5,16.67
Simple Interest,Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.,investopedia,1,52.19,10.7,0,11.26,11.5,8.32,13.5,12.86
Simple Moving Average (SMA),"A simple moving average (SMA) calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range.",investopedia,1,46.1,13,0,10.39,14.2,10.56,18.5,18
Simple Random Sample,A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen. A simple random sample is meant to be an unbiased representation of a group.,investopedia,1,43.22,12.1,0,8.88,9.8,7.84,12.25,12.93
Simplified Employee Pension (SEP),A simplified employee pension (SEP) is an individual retirement account (IRA) that an employer or a self-employed person can establish. The employer is allowed a tax deduction for contributions made to a SEP IRA and makes contributions to each eligible employee’s plan on a discretionary basis.,investopedia,1,7.87,23.6,0,14.64,27.5,12.1,37,27.97
Sinking Fund,"A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. A sinking fund is established so the company can contribute to the fund in the years leading up to the bond's maturity.",investopedia,1,64.34,10.2,11.2,6.39,9.7,8.82,13.83333333,11.73
Six Sigma,"Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. The method uses a data-driven review to limit mistakes or defects in a corporate or business process. Six Sigma emphasizes cycle-time improvement while at the same time reducing manufacturing defects to a level of no more than 3.4 occurrences per million units or events. In other words, the system is a method to work faster with fewer mistakes.",investopedia,1,53.71,10.1,12.6,11.08,11.3,11.5,11.5,12.71
Skewness,"Skewness refers to a distortion or asymmetry that deviates from the symmetrical bell curve, or normal distribution, in a set of data. If the curve is shifted to the left or to the right, it is said to be skewed. Skewness can be quantified as a representation of the extent to which a given distribution varies from a normal distribution. A normal distribution has a skew of zero, while a lognormal distribution, for example, would exhibit some degree of right-skew.",investopedia,1,51.18,11.1,13.8,9.92,11.3,8.77,13.5,13
Skin In The Game,"Skin in the game is a phrase made popular by renowned investor Warren Buffett referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running. The aphorism is particularly common in business, finance, and gambling and is also used in politics.",investopedia,1,45.59,13.2,0,10.97,14.5,9.86,16.75,14.91
Slippage,Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used. It can also occur when a large order is executed but there isn't enough volume at the chosen price to maintain the current bid/ask spread.,investopedia,1,57.61,10.7,11.2,9.46,11.6,7.84,13,11.22
Small and Mid-size Enterprise (SME),"Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets or a number of employees below a certain threshold. Each country has its own definition of what constitutes a small and medium-sized enterprise (SME). Certain size criteria must be met and occasionally the industry in which the company operates in is taken into account as well.",investopedia,1,43.73,11.9,14.6,12.82,13.4,9.84,13.5,14.62
Small Business Administration (SBA),The Small Business Administration (SBA) is an autonomous U.S. government agency established in 1953 to bolster and promote the economy in general by providing assistance to small businesses. One of the largest functions of the SBA is the provision of counseling to aid individuals trying to start and grow businesses.,investopedia,1,37.64,14.2,0,13.41,16.3,11.19,19,18
Small Caps,"The term small cap describes companies with a relatively small market capitalization. A company's market capitalization is the market value of its outstanding shares. The definition for small cap varies, but generally means a company with $300 million to $2 billion in market capitalization.",investopedia,1,39.63,11.4,13.6,14.03,12.6,9.03,10.66666667,12.24
Smart Beta,Smart beta investing combines the benefits of passive investing and the advantages of active investing strategies.,investopedia,1,29.86,13.1,0,17.98,15.7,12.33,13,13.9
Smart Beta ETF,A smart Beta ETF is a type of exchange-traded fund (ETF) that uses a rules-based system for selecting investments to be included in the fund portfolio. An exchange-traded fund or ETF is a type of fund that tracks an index such as the S&P 500. Smart beta ETFs build on traditional ETFs and tailor the components of the fund's holdings based on predetermined financial metrics.,investopedia,1,57.91,10.6,13.6,9.69,12,11.03,14.16666667,13.6
Smart Contracts,"A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.",investopedia,1,46.47,10.8,11.9,15.66,14.3,11.53,10.5,12.23
Smart Money,"Smart money is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals. Smart money was originally a gambling term that referred to the wagers made by gamblers with a track record of success.",investopedia,1,50.16,11.5,0,13.63,14.9,10.32,13,12.21
Smoot-Hawley Tariff Act,The Smoot-Hawley Tariff Act of 1930 raised U.S. import duties with the goal of protecting American farmers and other industries from foreign competition. The act is now widely blamed for worsening the severity of the Great Depression in the U.S. and around the world.,investopedia,1,57.61,10.7,0,11.31,13.5,11.55,14.5,14.25
Smurf,A smurf is a colloquial term for a money launderer who seeks to evade scrutiny from government agencies by breaking up large transactions into a set of smaller transactions that are each below the reporting threshold. Smurfing is an illegal activity that can have serious consequences.,investopedia,1,39.67,13.4,0,13,14.7,10.61,17,17.03
Social Audits,"A social audit is a formal review of a company's endeavors, procedures, and code of conduct regarding social responsibility and the company's impact on society. A social audit is an assessment of how well the company is achieving its goals or benchmarks for social responsibility.",investopedia,1,31.72,14.4,0,12.65,14.5,10.37,16.25,15.22
Social Economics,"Social economics is a branch of economics—and a social science—that focuses on the relationship between social behavior and economics. Social economics consists of two broad perspectives that, though opposite in their approach, can be thought of as complementary. The first, pioneered by Nobelist Gary Becker, applies the basic theoretical and applied tools of neoclassical microeconomics to areas of human behavior not traditionally considered as part of economics proper, such as crime and punishment, drug abuse, marriage, and family decisions.",investopedia,1,27.86,15.9,18.2,16.66,19.7,11.14,20.16666667,18.11
Social Enterprise,A social enterprise or social business is defined as a business that has specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment. Their profits are principally used to fund social programs.,investopedia,1,31.17,12.6,14.1,14.67,12.7,10.47,11,15.88
Social Entrepreneur,"A social entrepreneur is a person who pursues novel applications that have the potential to solve community-based problems. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives. Social entrepreneurs may believe that this practice is a way to connect you to your life's purpose, help others find theirs, and make a difference in the world (all while eking out a living).",investopedia,1,47.12,12.7,13,12.19,14.8,10.31,15,14.04
Social Justice,"Social justice is a political and philosophical theory which asserts that there are dimensions to the concept of justice beyond those embodied in the principles of civil or criminal law, economic supply and demand, or traditional moral frameworks. Social justice tends to focus more on just relations between groups within society as opposed to the justice of individual conduct or justice for individuals.",investopedia,1,22.58,17.9,0,14.63,20,12.47,22.25,20.85
Social Media,"Social media is a computer-based technology that facilitates the sharing of ideas, thoughts, and information through the building of virtual networks and communities. By design, social media is Internet-based and gives users quick electronic communication of content. Content includes personal information, documents, videos, and photos. Users engage with social media via a computer, tablet, or smartphone via web-based software or applications.",investopedia,1,30.57,12.8,13.8,17.51,16.1,12.16,11.125,13.99
Social Networking,"Social networking is the use of Internet-based social media sites to stay connected with friends, family, colleagues, customers, or clients. Social networking can have a social purpose, a business purpose, or both, through sites like Facebook, Twitter, LinkedIn, and Instagram. Social networking has become a significant base for marketers seeking to engage customers.",investopedia,1,45.05,11.4,12.5,15.48,15.5,10.47,11.5,10.85
Social Responsibility,"Social responsibility means that businesses, in addition to maximizing shareholder value, must act in a manner that benefits society. Social responsibility has become increasingly important to investors and consumers who seek investments that are not just profitable but also contribute to the welfare of society and the environment. However, critics argue that the basic nature of business does not consider society as a stakeholder.",investopedia,1,24.48,15.1,17.1,15.78,16.6,10.37,16.66666667,16.65
Social Sciences,"Social sciences are a group of academic disciplines dedicated to examining society. This branch of science studies how people interact with each other, behave, develop as a culture, and influence the world.",investopedia,1,38.32,11.9,0,13.22,12.3,10.84,12,16.4
Social Security Administration (SSA),"The Social Security Administration (SSA) is a U.S. government agency that administers social programs covering disability, retirement, and survivors' benefits. It was created in 1935 by President Franklin D. Roosevelt. Previously operating under the Department of Health and Human Services, the SSA has operated as a wholly independent agency since 1994.",investopedia,1,20.38,14.6,15.9,15.66,15.1,13.46,13.5,17.78
Social Security Number (SSN),"A Social Security number (SSN) is a numerical identifier assigned to U.S. citizens and some residents to track their income and determine benefits. The Social Security number was created in 1935 as part of The New Deal as a program to provide for retirement and disability benefits for the old and infirm. While the original intention of the program and the individually-assigned identification number was simply to track earnings and provide benefits, it is now also used for a wide range of purposes, such as to identify individuals for tax purposes, to track their credit record, and approve for credit. In the United States, an individual is asked to provide an SSN to obtain credit, open a bank account, obtain government benefits or private insurance, and to buy a home or a car, among many other pursuits.",investopedia,1,28.2,17.8,17.7,11.27,19,9.6,23.66666667,19.27
Social Welfare System,"A social welfare system provides assistance to individuals and families in need. The types and amount of welfare available to individuals and families vary depending on the country, state, or region. In the U.S., the federal government provides grants to each state through the Temporary Assistance for Needy Families (TANF) program.",investopedia,1,45.76,11.1,14.1,13.69,13.4,10.67,12.16666667,11.51
Socially Responsible Investment (SRI),"Socially responsible investing (SRI), also known as social investment, is an investment that is considered socially responsible due to the nature of the business the company conducts. Common themes for socially responsible investments include socially conscious investing. Socially responsible investments can be made into individual companies with good social value, or through a socially conscious mutual fund or exchange-traded fund (ETF).",investopedia,1,17.03,15.9,18.6,17.98,18.2,9.82,17.5,14.02
Société Anonyme (S.A.),"Société anonyme (S.A.) is a French term for a public limited company (PLC) and has many equivalents all over the world. A société anonyme is the equivalent of a corporation in the United States (publicly-traded company or incorporated), a public limited company in the United Kingdom, or an Aktiengesellschaft (AG) in Germany. A société anonyme is a type of business structure that establishes a company as a legal person that can own and transfer property, enter contracts, and be held liable for crimes. One of its key benefits is that it limits the owners’ personal liability for the company’s actions.",investopedia,1,46.1,13,15.6,11.26,14.9,9.61,17.25,15.2
Soft Skills,"Soft skills are character traits and interpersonal skills that characterize a person's relationships with other people. In the workplace, soft skills are considered to be a complement to hard skills, which refer to a person's knowledge and occupational skills. Sociologists may use the term soft skills to describe a person's emotional intelligence quotient (EQ) as opposed to intelligence quotient (IQ).",investopedia,1,42.72,12.3,14.1,14.91,15.7,9.89,13.66666667,14.67
Software-as-a-Service (SaaS),"Software-as-a-Service (SaaS) is a software licensing model in which access to the software is provided on a subscription basis, with the software being located on external servers rather than on servers located in-house.",investopedia,1,29.52,17.3,0,14.92,21.9,10.54,23.5,19.26
Sole Proprietorship,"A sole proprietorship also referred to as a sole trader or a proprietorship, is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business.",investopedia,1,37.98,16.2,0,11.79,18.5,9.1,20.5,16.84
Solvency,"Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency can be an important measure of financial health, since its one way of demonstrating a company’s ability to manage its operations into the foreseeable future. The quickest way to assess a company’s solvency is by checking its shareholders’ equity on the balance sheet, which is the sum of a company’s assets minus liabilities.",investopedia,1,31.21,14.6,17.5,12.6,14.5,9.35,17.83333333,15.58
Solvency Ratio,A solvency ratio is a key metric used to measure an enterprise’s ability to meet its long-term debt obligations and is used often by prospective business lenders. A solvency ratio indicates whether a company’s cash flow is sufficient to meet its long-term liabilities and thus is a measure of its financial health. An unfavorable ratio can indicate some likelihood that a company will default on its debt obligations.,investopedia,1,48.43,12.1,15.9,12.42,14.2,9.41,16.33333333,16.14
Sortino Ratio,"The Sortino ratio is a variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative portfolio returns—downside deviation—instead of the total standard deviation of portfolio returns. The Sortino ratio takes an asset or portfolio's return and subtracts the risk-free rate, and then divides that amount by the asset's downside deviation. The ratio was named after Frank A. Sortino.",investopedia,1,22.75,15.8,15,15.96,17.4,10.5,15.83333333,13.26
Sovereign Wealth Fund (SWF),"A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. SWFs provide a benefit for a country's economy and its citizens.",investopedia,1,37.3,12.3,0,12.93,12.7,11.45,12.5,13.86
Special Drawing Rights (SDR),"Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs augment international liquidity by supplementing the standard reserve currencies.",investopedia,1,13.11,19.5,0,16.6,22.4,12.54,24.25,19.77
Special Economic Zones (SEZ),A special economic zone (SEZ) is an area in a country that is subject to different economic regulations than other regions within the same country. The SEZ economic regulations tend to be conducive to—and attract—foreign direct investment (FDI). FDI refers to any investment made by a firm or individual in one country into business interests located in another country.,investopedia,1,43.02,12.2,15,13.17,13.7,9.7,14.16666667,11.95
Special Power of Attorney,"A special power of attorney is a legal document that authorizes one person, called an agent or an attorney in fact, to act on behalf of another person, known as the principal, under specific, clearly laid-out circumstances.",investopedia,1,25.46,18.9,0,11.5,20.9,10.59,26.5,21.29
Special Purpose Acquisition Company (SPAC),"A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as ""blank check companies,"" SPACs have been around for decades. In recent years, they've become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019. In 2020, as of the beginning of August, more than 50 SPACs have been formed in the U.S. which have raised some $21.5 billion.",investopedia,1,56.59,11.1,14.2,11.55,14.3,10.27,15.25,13.55
Special Purpose Vehicle (SPV),"A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt. For this reason, a special purpose vehicle is sometimes called a bankruptcy-remote entity.",investopedia,1,36.28,12.7,14.6,12.53,12.8,10.09,13,11.64
Special Warranty Deed,"A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn't guarantee against any defects in clear title that existed before they took possession of the property.",investopedia,1,46.1,13,0,13.87,16.5,9.61,16.5,15.6
Specialization,"Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services.",investopedia,1,52.02,12.8,0,10.74,15.3,9.88,18.75,17.55
Speculation,"In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of a substantial gain or other recompense.",investopedia,1,33.58,15.8,0,12.14,16.9,9.7,20.5,18.5
Spiders (SPDR),"Spider (SPDR) is a short form name for a Standard & Poor's depository receipt, an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor's 500 index (S&P 500). Each share of an SPDR contains a 10th of the S&P 500 index and trades at roughly a 10th of the dollar-value level of the S&P 500. SPDRs can also refer to the general group of ETFs to which the Standard & Poor's depositary receipt belongs.",investopedia,1,53.85,12.1,11.2,8.77,13.6,10.04,15.33333333,11.84
Spillover Effect,"Spillover effect refers to the impact that seemingly unrelated events in one nation can have on the economies of other nations. Although there are positive spillover effects, the term is most commonly applied to the negative impact a domestic event has on other parts of the world such as an earthquake, stock market crisis, or another macro event.",investopedia,1,50.5,13.4,0,11.91,16.7,11.06,18,15.74
Spinning Top Candlestick,A spinning top is a candlestick pattern that has a short real body that's vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of the asset. It means that neither buyers nor sellers could gain the upper hand.,investopedia,1,55.95,9.3,11.2,12.52,11.3,8.51,8.666666667,8.73
Spinoff,"When a company creates a new independent company by selling or distributing new shares of its existing business, this is called a spinoff. A spinoff is a type of divestiture. A company creates a spinoff expecting that it will be worth more as an independent entity. A spinoff is also known as a spin out or starbust.",investopedia,1,65.42,7.7,12.2,8.05,7.2,7.95,8.625,9.93
Spoofing,"Spoofing is a type of scam in which criminals attempt to obtain someone's personal information by pretending to be a legitimate business, a neighbor, or some other innocent party.",investopedia,1,25.12,17,0,12.72,17.6,11.61,20.5,19.88
Spot Exchange Rate,"A spot exchange rate is the current price level in the market to directly exchange one currency for another, for delivery on the earliest possible value date. Cash delivery for spot currency transactions is usually the standard settlement date of two business days after the transaction date (T+2).",investopedia,1,14.3,23.2,0,13.48,27.4,9.96,18,25.03
Spot Market,"The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.",investopedia,1,46.78,10.7,14.6,12,11.5,9.36,12,13.9
Spot Rate,"The spot rate is the price quoted for immediate settlement on an interest rate, commodity, a security, or a currency. The spot rate, also referred to as the ""spot price,"" is the current market value of an asset available for immediate delivery at the moment of the quote. This value is in turn based on how much buyers are willing to pay and how much sellers are willing to accept, which usually depends on a blend of factors including current market value and expected future market value.",investopedia,1,42.04,14.6,14.1,9.53,14.9,9.07,18.16666667,15.74
Spot Trade,"A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date. Most spot contracts include the physical delivery of the currency, commodity, or instrument; the difference in the price of a future or forward contract versus a spot contract takes into account the time value of the payment, based on interest rates and the time to maturity. In a foreign exchange spot trade, the exchange rate on which the transaction is based is referred to as the spot exchange rate.",investopedia,1,37.68,16.3,16.3,10.98,18.3,8.76,22,17.32
Spread Betting,"Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security. It involves placing a bet on the price movement of a security. A spread betting company quotes two prices, the bid and ask price (also called the spread), and investors bet whether the price of the underlying security will be lower than the bid or higher than the ask.",investopedia,1,48.84,12,13.6,10.74,12.7,8.98,14.5,11.91
Spreads,"A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.",investopedia,1,73.37,6.7,10.7,7.18,7.2,8.12,8.125,8.63
Stable Value Fund,A stable value fund is a portfolio of bonds that are insured to protect the investor against a decline in yield or a loss of capital. The owner of a stable value fund will continue to receive the agreed-upon interest payments regardless of the state of the economy.,investopedia,1,55.58,11.5,0,9,12,9.1,15,13.77
Stagnation,"Stagnation is a prolonged period of little or no growth in an economy. Real economic growth of less than 2% annually is considered stagnation, and it is highlighted by periods of high unemployment and involuntary part-time employment. Stagnation can occur on a macroeconomic scale or a smaller scale in specific industries or companies. Stagnation can occur as a temporary condition, such as a growth recession or temporary economic shock, or as part of a long-term structural condition of the economy.",investopedia,1,34.26,13.5,17.4,12.65,13.5,9.56,16.25,17
Stakeholder,"A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers. However, with the increasing attention on corporate social responsibility, the concept has been extended to include communities, governments, and trade associations.",investopedia,1,26.81,14.2,17.5,15.2,15.2,10.67,15.83333333,18.83
Stalking-Horse Bid,"A stalking-horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company will choose an entity from a pool of bidders who will make the first bid on the firm's remaining assets. The stalking horse sets the low-end bidding bar so that other bidders can not underbid the purchase price. The term ""stalking horse"" originates from a hunter trying to conceal himself behind either a real or fake horse.",investopedia,1,69.62,8.1,10.1,9.28,10,7.75,10.75,9.56
Standard & Poor's (S&P),"Standard & Poor's (S&P) is a company well known around the world as a creator of financial market indices—widely used as investment benchmarks—a data source, and an issuer of credit ratings for companies and debt obligations. It's perhaps best-known for the popular and often-cited S&P 500 Index.",investopedia,1,48.13,12.3,0,13,15.6,12.33,16.25,13.55
Standard Deduction,"The standard deduction is the portion of income not subject to tax that can be used to reduce your tax bill. The IRS allows you to take the standard deduction if you do not itemize your deductions using Schedule A of Form 1040 to calculate taxable income. The amount of your standard deduction is based on your filing status, age, and whether you are disabled or claimed as a dependent on someone else’s tax return.",investopedia,1,63.02,10.7,11.2,9.23,12.7,9.3,14.5,12.13
Standard Deviation,"A standard deviation is a statistic that measures the dispersion of a dataset relative to its mean. The standard deviation is calculated as the square root of variance by determining each data point's deviation relative to the mean. If the data points are further from the mean, there is a higher deviation within the data set; thus, the more spread out the data, the higher the standard deviation.",investopedia,1,48.43,12.1,13.6,10.62,12.9,8.48,14.66666667,12.02
Standard Error,"The standard error (SE) of a statistic is the approximate standard deviation of a statistical sample population. The standard error is a statistical term that measures the accuracy with which a sample distribution represents a population by using standard deviation. In statistics, a sample mean deviates from the actual mean of a population; this deviation is the standard error of the mean.",investopedia,1,25.08,14.9,15.9,13.05,14.1,8.99,15.33333333,14.73
Standard Industrial Classification (SIC Code),"Standard Industrial Classification (SIC) codes are four-digit numerical codes assigned by the U.S. government that categorize the industries to which companies belong, while also organizing industries by their business activities. The SIC codes were created by the U.S. government in 1937 to classify and analyze economic activity across various industries and government agencies, and to promote uniformity in the presentation of statistical data collected by various government agencies  SIC codes have also been adopted in places outside the U.S., including in the U.K.",investopedia,1,3.47,23.2,0,16.67,27.3,11.92,34.5,25.85
Standard of Living,Standard of living refers to the quantity and quality of material goods and services available to a given population.,investopedia,1,35.27,13.1,0,12.65,12.6,11.23,13.5,16.02
Standardization,Standardization is a framework of agreements to which all relevant parties in an industry or organization must adhere to ensure that all processes associated with the creation of a good or performance of a service are performed within set guidelines.,investopedia,1,22.42,20.1,0,13.76,23.4,11.94,27,23
Standby Letters of Credit,"A standby letter of credit (SLOC) is a legal document that guarantees a bank's commitment of payment to a seller in the event that the buyer–or the bank's client–defaults on the agreement. A standby letter of credit helps facilitate international trade between companies that don't know each other and have different laws and regulations. Although the buyer is certain to receive the goods and the seller certain to receive payment, a SLOC doesn't guarantee the buyer will be happy with the goods. A standby letter of credit can also be abbreviated SBLC.",investopedia,1,48.13,12.3,12.6,11.49,13.8,8.9,14.25,13.11
Stare Decisis,"Stare decisis is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case. Stare decisis ensures that cases with similar scenarios and facts are approached in the same way. Simply put, it binds courts to follow legal precedents set by previous decisions.",investopedia,1,54.52,9.8,13,11.42,10.8,10.15,11.33333333,12.28
Startup,"The term startup refers to a company in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. These companies generally start with high costs and limited revenue, which is why they look for capital from a variety of sources such as venture capitalists.",investopedia,1,58.92,10.2,13,10.39,11.7,9.5,13.33333333,12.8
State-Owned Enterprise (SOE),A state-owned enterprise (SOE) is a legal entity that is created by a government in order to partake in commercial activities on the government's behalf. It can be either wholly or partially owned by a government and is typically earmarked to participate in specific commercial activities.,investopedia,1,22.75,15.8,0,13,15,10.61,19,17.9
Statement of Retained Earnings,"The statement of retained earnings (retained earnings statement) is a financial statement that outlines the changes in retained earnings for a company over a specified period. This statement reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements, and is used by analysts to understand how corporate profits are utilized.",investopedia,1,32.06,16.4,0,15.85,20.7,9.29,21.25,16.79
Statistical Significance,"Statistical significance is a determination by an analyst that the results in the data are not explainable by chance alone. Statistical hypothesis testing is the method by which the analyst makes this determination. This test provides a p-value, which is the probability of observing results as extreme as those in the data, assuming the results are truly due to chance alone. A p-value of 5% or lower is often considered to be statistically significant.",investopedia,1,44.24,11.7,14.2,12.13,12.3,9.25,13,13.89
Statute of Frauds,"The statute of frauds (SOF) is a legal concept that requires certain types of contracts to be executed in writing. The statute covers contracts for the sale of land, agreements involving goods worth over $500, and contracts lasting one year or more.",investopedia,1,67.08,9.1,0,10.73,12.6,9.94,11.5,10.3
Statute of Limitations,"A statute of limitations is a law that sets the maximum amount of time that parties involved in a dispute have to initiate legal proceedings from the date of an alleged offense, whether civil or criminal. However, the length of time the statute allows for a victim to bring legal action against the suspected wrong-doer can vary from one jurisdiction to another and the nature of the offense.",investopedia,1,45.43,15.4,0,10.63,18.1,10.66,22,17.72
Statutory Reserves,Statutory reserves are the funds that state insurance regulators require the insurance companies operating in their state to maintain at any given time. The purpose of statutory reserves is to help ensure that insurance companies have adequate liquidity available to honor all of the legitimate claims made by their policyholders.,investopedia,1,29.18,15.4,0,15.38,17.5,10.25,19,17.2
Step-Up in Basis,"A step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance. The higher market value of the asset at the time of inheritance is considered for tax purposes. When an asset is passed on to a beneficiary, its value is typically more than what it was when the original owner acquired it. The asset receives a step-up in basis so that the beneficiary's capital gains tax is minimized. A step-up in basis is applied to the cost basis of property transferred at death.",investopedia,1,53,10.4,12.7,8.94,9.5,8.01,11.9,12.12
Sterling Overnight Interbank Average Rate (SONIA),"The Sterling Overnight Index Average, abbreviated SONIA, is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling market. It is used for overnight funding for trades that occur in off-hours and represents the depth of overnight business in the marketplace.",investopedia,1,48.13,12.3,0,15.15,16.7,10.96,15.5,16.16
Sticky Wage Theory,"The sticky wage theory hypothesizes that employee pay tends to respond slowly to changes in company performance or to the economy. According to the theory, when unemployment rises, the wages of those workers that remain employed tend to stay the same or grow at a slower rate rather than falling with the decrease in demand for labor. Specifically, wages are often said to be sticky-down, meaning that they can move up easily but move down only with difficulty.",investopedia,1,45.09,13.4,15,10.97,14.7,9.99,17.33333333,15.53
Stipend,"A stipend is a predetermined amount of money prepaid (or less often reimbursed) to certain individuals, such as trainees, interns, and students, to help offset some of their expenses. Stipends are often provided to people who are ineligible to receive a regular salary in exchange for the duties they perform.",investopedia,1,46.1,13,0,12.25,15.6,10.25,16,15.6
Stochastic Modeling,"Stochastic modeling is a form of financial model that is used to help make investment decisions. This type of modeling forecasts the probability of various outcomes under different conditions, using random variables.",investopedia,1,29.86,13.1,0,15.43,13.8,11.83,13,16.4
Stochastic Oscillator,"A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals, utilizing a 0–100 bounded range of values.",investopedia,1,31.51,14.5,16.3,11.32,13.2,11.03,16.66666667,17.32
Stochastic RSI (StochRSI),The Stochastic RSI (StochRSI) is an indicator used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold.,investopedia,1,35.95,16.9,0,12.14,20,11.91,23.5,19.14
Stock,"A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called ""shares.""",investopedia,1,55.58,11.5,0,9.12,12.6,9.43,10.66666667,16.27
Stock Analysis,"Stock analysis is the evaluation of a particular trading instrument, an investment sector, or the market as a whole. Stock analysts attempt to determine the future activity of an instrument, sector, or market.",investopedia,1,37.81,12.1,0,12.47,12.1,10.2,12.75,16.3
Stock Appreciation Right (SAR),"Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a predetermined period. SARs are profitable for employees when the company's stock price rises, which makes them similar to employee stock options (ESOs). However, employees do not have to pay the exercise price with SARs. Instead, they receive the sum of the increase in stock or cash.",investopedia,1,55.24,9.5,13.4,11.6,11.2,9.12,11.25,12.03
Stock Compensation,"Stock compensation is a way corporations use stock options to reward employees. Employees with stock options need to know whether their stock is vested and will retain its full value even if they are no longer employed with that company. Because tax consequences depend on the fair market value (FMV) of the stock, if the stock is subject to tax withholding, the tax must be paid in cash, even if the employee was paid by equity compensation.",investopedia,1,53.85,12.1,13.6,10.16,13.9,7.78,16.16666667,13.92
Stock Exchange Daily Official List (SEDOL),"The stock exchange daily official list (SEDOL) is a seven-character identification code assigned to securities that trade on the London Stock Exchange and various smaller exchanges in the United Kingdom. SEDOL codes are used for unit trusts, investment trusts, insurance-linked securities, and domestic and foreign stocks. SEDOL codes are comparable to CUSIP numbers, which are codes issued by the Committee on Uniform Securities Identification Procedures for stocks traded in the United States.",investopedia,1,38.66,13.8,15.5,16.31,18.3,10.75,16.66666667,15.71
Stock Exchange-Traded Fund (ETF),"The term stock exchange-traded fund (ETF) refers to a security that tracks a particular set of equities. These ETFs trade on exchanges the same way normal stocks do and track equities just like an index. They can track stocks in a single industry or an entire index of equities. Investors who purchase shares of stock exchange ETF can gain exposure to a basket of equities and limited company-specific risk associated with single stocks, providing them with a cost-effective way to diversify their portfolios.",investopedia,1,50.36,11.4,14.6,11.84,13.2,9.8,14.375,14.1
Stock Keeping Unit (SKU),"A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The SKU is composed of an alphanumeric combination of eight-or-so characters. The characters are a code that track the price, product details, and the manufacturer. SKUs may also be applied to intangible but billable products, such as units of repair time in an auto body shop or warranties.",investopedia,1,55.44,9.5,10.8,10.9,10.4,10.02,8.7,9.86
Stock Market Crash,"A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be a side effect of a major catastrophic event, economic crisis, or the collapse of a long-term speculative bubble. Reactionary public panic about a stock market crash can also be a major contributor to it, inducing panic selling that depresses prices even further.",investopedia,1,50.46,11.4,12.5,11.08,12.5,8.74,13,13.44
Stock Quote,"A stock quote is the price of a stock as quoted on an exchange. A basic quote for a specific stock provides information, such as its bid and ask price, last traded price, and volume traded. Investors increasingly access stock quotes online or on mobile devices, such as smartphones, rather than through print media, such as newspapers and magazines. A large number of Internet portals and websites offer delayed stock quotes at no charge, with real-time stock quotes generally restricted to paying subscribers.",investopedia,1,58.82,10.2,11.7,11.78,13.2,9.8,12.625,12.18
Stock Screener,"A stock screener is a set of tools that allow investors to quickly sort through the myriad of available stocks and increasing exchange-traded funds according to the investor’s own criteria. Stock screeners are most typically available on brokerage trading platforms (usually free), but there are also some independent subscription-based stock screeners available. Stock screeners allow investors to employ their own methodology about what makes a stock or ETF valuable (longer-term traders) or spot a potential trading opportunity (shorter-term traders).",investopedia,1,36.32,14.7,15.5,16.95,20.1,10.94,17.83333333,16.6
Stock Symbol (Ticker),"A stock symbol is a unique series of letters assigned to a security for trading purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or fewer letters. Nasdaq-listed securities can have up to five characters. Symbols are just a shorthand way of describing a company's stock, so there is no significant difference between those that have three letters and those that have four or five. Stock symbols are also known as ticker symbols.",investopedia,1,64.3,8.1,10.8,10.15,9.4,8.91,8.5,9.8
Stockbroker,A stockbroker is a professional trader who buys and sells shares on behalf of clients. The stockbroker may also be known as a registered representative or an investment advisor.,investopedia,1,48.3,10.1,0,11.53,10,10.89,10.75,14.08
Stockholders' Equity,"Stockholders' equity, also referred to as shareholders' or owners' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders' equity might include common stock, paid-in capital, retained earnings, and treasury stock.",investopedia,1,32.53,14.1,15.5,15.32,16.9,9.57,15.5,13.6
Stop-Limit Order,"A stop-limit order is a conditional trade over a set timeframe that combines the features of stop with those of a limit order and is used to mitigate risk. It is related to other order types, including limit orders (an order to either buy or sell a specified number of shares at a given price, or better) and stop-on-quote orders (an order to either buy or sell a security after its price has surpassed a specified point).",investopedia,1,40.86,17.1,0,8.54,19,8.83,23.75,18.52
Stop-Loss Order,"A stop-loss order is an order placed with a broker to buy or sell a security when it reaches a certain price. Stop-loss orders are designed to limit an investor’s loss on a position in a security and are different from stop-limit orders. When a stock falls below the stop price the order becomes a market order and it executes at the next available price. For example, a trader may buy a stock and places a stop-loss order 10% below the purchase price. Should the stock drop, the stop-loss order would be activated, and the stock would be sold as a market order.",investopedia,1,62.21,11,11.2,8.19,12.5,7.83,11.6,12.26
Stop Order,"A stop order is an order to buy or sell a security when its price moves past a particular point, ensuring a higher probability of achieving a predetermined entry or exit price, limiting the investor's loss, or locking in a profit. Once the price crosses the predefined entry/exit point, the stop order becomes a market order.",investopedia,1,43.06,14.2,0,10.33,15.5,9.54,18,16.2
Stop Payments,A stop payment is a formal request made to a financial institution to cancel a check or payment that has not yet been processed. A stop payment order is issued by the account holder and can only be enacted if the check or payment has not already been processed by the recipient.,investopedia,1,53.55,12.3,0,8.25,12.2,7.66,15,13.48
Store of Value,"A store of value is an asset, commodity, or currency that maintains its value without depreciating.",investopedia,1,29.86,13.1,0,11.77,11.3,9.36,11,13.9
Straight Line Basis,"Straight line basis is a method of calculating depreciation and amortization. Also known as straight line depreciation, it is the simplest way to work out the loss of value of an asset over time. Straight line basis is calculated by dividing the difference between an asset's cost and its expected salvage value by the number of years it is expected to be used.",investopedia,1,50.16,11.5,13,9.81,11.4,7.94,13.5,12.21
Straight-Through Processing (STP),Straight-through processing is an automated process done purely through electronic transfers with no manual intervention involved. Its popular uses are in payment processing as well as the processing of securities trades. Any company involved with straight-through processing will need to have the necessary systems and technical networking in place to facilitate STP efficiency.,investopedia,1,28.13,13.7,16.3,17.69,16.5,10.47,14.16666667,16.14
Strategic Alliance,"A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.",investopedia,1,40.69,13.1,0,14.33,15.6,11.55,15.5,16.07
Strategic Financial Management,"Strategic financial management means not only managing a company's finances but managing them with the intention to succeed—that is, to attain the company's goals and objectives and maximize shareholder value over time. However, before a company can manage itself strategically, it first needs to define its objectives precisely, identify and quantify its available and potential resources, and devise a specific plan to use its finances and other capital resources toward achieving its goals.",investopedia,1,17.51,19.9,0,16.02,24,11.07,28.25,22.27
Strategic Management,"Strategic management is the management of an organization’s resources to achieve its goals and objectives. Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.",investopedia,1,-0.1,18.4,0,23.44,22.6,11.2,18.25,17.96
Stratified Random Sampling,"Stratified random sampling is a method of sampling that involves the division of a population into smaller sub-groups known as strata. In stratified random sampling, or stratification, the strata are formed based on members' shared attributes or characteristics such as income or educational attainment.",investopedia,1,32.22,14.2,0,16.19,17.4,11.9,15,15.16
"Strength, Weakness, Opportunity, and Threat (SWOT) Analysis","SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.",investopedia,1,19.37,15,0,17.22,17,13.74,15.5,20.53
Structural Unemployment,"Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an economy and exacerbated by extraneous factors such as technology, competition, and government policy. Structural unemployment occurs because workers lack the requisite job skills or live too far from regions where jobs are available and cannot move closer. Jobs are available, but there is a serious mismatch between what companies need and what workers can offer.",investopedia,1,31.21,14.6,15.9,15.73,17.1,10.73,16.5,15.58
Structured Finance,"Structured finance is a heavily involved financial instrument presented to large financial institutions or companies with complicated financing needs who are unsatisfied with conventional financial products. Since the mid-1980s, structured finance has become popular in the finance industry. Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated loans are examples of structured finance instruments.",investopedia,1,1.13,17.9,19.3,23.2,22.1,12.76,17.66666667,20.13
Structured Note,A structured note is a debt obligation that also contains an embedded derivative component that adjusts the security's risk-return profile. The return performance of a structured note will track both the underlying debt obligation and the derivative embedded within it.,investopedia,1,34.26,13.5,0,15.49,15.7,10.16,15,15
Student Loan Forgiveness,"Student loan forgiveness is a release from having to repay federal student loans—in full or in part—that have been borrowed to pay for a postsecondary education. Student debt has reached an all-time high in the U.S., with an estimated 43 million Americans each owing an average of nearly $40,000. Under certain circumstances, however, some of that debt may be discharged or forgiven. Here is how student loan forgiveness works.",investopedia,1,53.92,10,12.6,11.66,11.8,9.53,11.375,12.14
Subjective Probability,"Subjective probability is a type of probability derived from an individual's personal judgment or own experience about whether a specific outcome is likely to occur. It contains no formal calculations and only reflects the subject's opinions and past experience. An example of subjective probability is a ""gut instinct"" when making a trade.",investopedia,1,28.54,13.6,14.6,13.86,13.4,10.87,12.66666667,13.07
Sublease,A sublease is the re-renting of property by an existing tenant to a new third party for a portion of the tenant’s existing lease contract. The sublease agreement may also be called a sublet.,investopedia,1,62.68,8.7,0,8.7,8.8,10.52,10.5,10.33
Subordinated Debt,"Subordinated debt (also known as a subordinated debenture) is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Subordinated debentures are thus also known as junior securities. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.",investopedia,1,41.4,12.8,13.6,12.24,13.7,9.38,14,12.27
Subordination Agreement,A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on payments or declares bankruptcy.,investopedia,1,25.8,14.6,0,14.62,14.7,11.34,15.5,16
Subprime Loan,A subprime loan is a type of loan offered at a rate above prime to individuals who do not qualify for prime-rate loans. Quite often subprime borrowers have been turned down by traditional lenders because of their low credit ratings or other factors that suggest they have a reasonable chance of defaulting on the debt repayment.,investopedia,1,51.52,13,0,10.97,15.6,10.38,17.5,16.2
Subrogation,Subrogation is a term describing a right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.,investopedia,1,55.07,11.7,0,8.94,12.1,8.4,16.25,14.7
Subscription Agreement,"A subscription agreement is an investor's application to join a limited partnership. It is also a two-way guarantee between a company and a new shareholder (subscriber). The company agrees to sell a certain number of shares at a specific price, and in return, the subscriber promises to buy the shares at the predetermined price.",investopedia,1,53.21,10.3,13.6,11.08,11.6,8.62,12.33333333,13.13
Subsidiary Rights,"In the corporate world, a subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company.",investopedia,1,35.61,15,0,10.74,15.1,8.48,20.5,13.76
Substantially Equal Periodic Payment (SEPP),"Substantially Equal Periodic Payment, or SEPP, is a method of distributing funds from an IRA or other qualified retirement plans prior to the age of 59½ that avoids incurring IRS penalties for the withdrawals. Typically, an individual who removes assets from a plan prior to that age will pay an early withdrawal penalty of 10% of the distributed amount.",investopedia,1,41.53,14.8,0,11.91,17,11.79,19.75,18.58
Substitute,"A substitute, or substitutable good, in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar-enough to another product. Put simply, a substitute is a good that can be used in place of another.",investopedia,1,49.65,11.7,0,10.79,12.8,8.74,15.25,14.18
Substitution Effect,"The substitution effect is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises. A product may lose market share for many reasons, but the substitution effect is purely a reflection of frugality. If a brand raises its price, some consumers will select a cheaper alternative. If beef prices rise, many consumers will eat more chicken.",investopedia,1,54.42,9.8,10.7,11.37,10.9,8.95,10.125,10.3
Sukuk,"A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Since the traditional Western interest-paying bond structure is not permissible, the issuer of a sukuk essentially sells an investor group a certificate, and then uses the proceeds to purchase an asset that the investor group has direct partial ownership interest in. The issuer must also make a contractual promise to buy back the bond at a future date at par value.",investopedia,1,42.75,14.3,15.9,12.02,16.7,10.43,19.16666667,16.97
Sum of Squares,"Sum of squares is a statistical technique used in regression analysis to determine the dispersion of data points. In a regression analysis, the goal is to determine how well a data series can be fitted to a function that might help to explain how the data series was generated. Sum of squares is used as a mathematical way to find the function that best fits (varies least) from the data.",investopedia,1,56.29,11.2,13.6,8.94,11.7,8.18,15,13.32
Sum-of-the-Parts Valuation (SOTP),The sum-of-the-parts valuation (SOTP) is a process of valuing a company by determining what its aggregate divisions would be worth if they were spun off or acquired by another company.,investopedia,1,41.03,15,0,12.14,17.9,10.39,22,17.33
Summa Cum Laude,"Summa cum laude is an honorary title used by educational institutions to signify a degree that was earned ""with the highest distinction."" Summa cum laude indicates the greatest distinction of three commonly used types of academic honors, expressed in Latin, recognized in the United States. The other two are called magna cum laude and cum laude, representing degrees earned ""with great distinction"" and ""with distinction,"" respectively.",investopedia,1,37.98,16.2,0,15.1,21.8,11.25,15.33333333,19.26
Sunk Cost,"A sunk cost refers to money that has already been spent and which cannot be recovered. In business, the axiom that one has to ""spend money to make money"" is reflected in the phenomenon of the sunk cost. A sunk cost differs from future costs that a business may face, such as decisions about inventory purchase costs or product pricing. Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.",investopedia,1,59.13,10.1,11.7,9.57,11.1,7.93,12.5,12.1
Superannuation,"A superannuation is an organizational pension program created by a company for the benefit of its employees. It is also referred to as a company pension plan. Funds deposited in a superannuation account will grow, typically without any tax implications, until retirement or withdrawal.",investopedia,1,22.71,13.7,15,13.39,11.8,9.39,11.66666667,14.97
Supplemental Executive Retirement Plan (SERP),A supplemental executive retirement plan (SERP) is a set of benefits that may be made available to top-level employees in addition to those covered in the company's standard retirement savings plan.,investopedia,1,31.55,16.6,0,13.99,19.7,10.78,23.5,21.43
Supply,"Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. This relates closely to the demand for a good or service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits.",investopedia,1,51.52,13,12.5,9.87,14.7,9.35,16.66666667,14.06
Supply Chain,"A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information, and resources. The supply chain also represents the steps it takes to get the product or service from its original state to the customer.",investopedia,1,44.44,11.6,13.6,12.24,12.3,9.71,12.5,13.14
Supply Chain Finance,"Supply chain finance (SCF) is a term describing a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction. SCF methodologies work by automating transactions and tracking invoice approval and settlement processes, from initiation to completion. Under this paradigm, buyers agree to approve their suppliers' invoices for financing by a bank or other outside financier--often referred to as ""factors."" And by providing short-term credit that optimizes working capital and provides liquidity to both parties, SCF offers distinct advantages to all participants. While suppliers gain quicker access to money they are owed, buyers get more time to pay off their balances. On either side of the equation, the parties can use the cash on hand for other projects to keep their respective operations running smoothy.",investopedia,1,39.87,13.4,15,14.63,16.4,10.88,14.8,15.84
Supply Chain Management (SCM),Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.,investopedia,1,7.87,23.6,0,16.26,28.5,12.1,17,26.23
Supply Curve,"The supply curve is a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period. In a typical illustration, the price will appear on the left vertical axis, while the quantity supplied will appear on the horizontal axis.",investopedia,1,38.15,14,0,10.86,13.8,8.72,16.75,16.33
Supply Shock,"A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, resulting in an unforeseen change in price. Supply shocks can be negative, resulting in a decreased supply, or positive, yielding an increased supply; however, they're often negative. Assuming aggregate demand is unchanged, a negative (or adverse) supply shock causes a product's price to spike upward, while a positive supply shock decreases the price.",investopedia,1,39.37,13.6,15.9,13.58,16.1,9.98,16.66666667,15.03
Support (Support Level),"Support, or a support level, refers to the price level that an asset does not fall below for period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. In technical analysis, the simple support level can be charted by drawing a line along the lowest lows for the time period being considered. The support line can be flat or slanted up or down with the overall price trend. Other technical indicators and charting techniques can be used to identify more advanced versions of support.",investopedia,1,60.45,9.6,11.6,9.57,10.4,8.7,11.8,11.01
Supranational,"A supranational organization is a multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members. In short, member states share in decision making on matters that will affect each country's citizens.",investopedia,1,38.15,14,0,14.51,16.9,10.65,16.75,17.15
Surcharge,"A surcharge is an extra fee, charge, or tax that is added on to the cost of a good or service, beyond the initially quoted price. Often, a surcharge is added to an existing tax and is not included in the stated price of the good or service. The charge could reflect a locality's need to collect money for extra services, a hike to defray the cost of increased commodity pricing, such as with a fuel surcharge, or an extra fee on your wireless bill for access to emergency services.",investopedia,1,57.95,12.6,11.2,7.85,14.1,8.81,17,14.67
Surety,The surety is the guarantee of the debts of one party by another. A surety is an organization or person that assumes the responsibility of paying the debt in case the debtor policy defaults or is unable to make the payments.,investopedia,1,50.67,11.3,0,8.47,10,9.66,12.75,12.1
Surplus,"A surplus describes the amount of an asset or resource that exceeds the portion that's actively utilized. A surplus can refer to a host of different items, including income, profits, capital, and goods. In the context of inventories, a surplus describes products that remain sitting on store shelves, unpurchased. In budgetary contexts, a surplus occurs when income earned exceeds expenses paid. A budget surplus can also occur within governments when there's leftover tax revenue after all government programs are fully financed.",investopedia,1,55.03,9.6,10.8,13.74,12.9,10.48,8.9,9.44
Surplus Lines Insurance,"Surplus lines insurance protects against a financial risk that is too high for a regular insurance company to take on. Surplus line insurance can be used by companies or purchased individually. Unlike normal insurance, this insurance can be bought from an insurer not licensed in the insured’s state. However, the surplus lines insurer requires a license in the state where it is based.",investopedia,1,50.16,11.5,15,12.07,13.4,9.19,11.125,12.21
Survivorship Bias,Survivorship bias or survivor bias is the tendency to view the performance of existing stocks or funds in the market as a representative comprehensive sample without regarding those that have gone bust. Survivorship bias can result in the overestimation of historical performance and general attributes of a fund or market index.,investopedia,1,37.13,14.4,0,14.51,17.1,10.78,18.75,17.26
Sustainability,"Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social—also known informally as profits, planet, and people. Increasingly, companies are making public commitments to sustainability through actions like reducing waste, investing in renewable energy, and supporting organizations that work toward a more sustainable future.",investopedia,1,3.63,21.1,0,19.85,25.7,11.66,18.16666667,24.15
Sustainable Growth Rate (SGR),The sustainable growth rate (SGR) is the maximum rate of growth that a company or social enterprise can sustain without having to finance growth with additional equity or debt. The SGR involves maximizing sales and revenue growth without increasing financial leverage. Achieving the SGR can help a company prevent being over-leveraged and avoid financial distress.,investopedia,1,44.44,11.6,14.6,14.79,14.3,11.15,13.16666667,13.14
Swap Execution Facility (SEF),A Swap Execution Facility (SEF) is an electronic platform provided by a corporate entity that allows participants to buy and sell swaps in a regulated and transparent manner.,investopedia,1,17.68,17.8,0,12.83,17.3,12.92,23,24.06
Swaption (Swap Option),"A swaption, also known as a swap option, refers to an option to enter into an interest rate swap or some other type of swap. In exchange for an options premium, the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date.",investopedia,1,52.02,12.8,0,7.78,12.9,9.31,16.25,13.91
Sweat Equity,"The term sweat equity refers to a person or company's contribution toward a business venture or other project. Sweat equity is generally not monetary and, in most cases, comes in the form of physical labor, mental effort, and time. Sweat equity is commonly found in real estate and the construction industry, as well as in the corporate world—especially for startups.",investopedia,1,42.72,12.3,15,11.6,12.7,10.16,14.33333333,15.33
Sweep Account,"A sweep account is a bank or brokerage account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into a money market fund.",investopedia,1,48.13,12.3,0,11.26,13.6,9.24,14,13.55
Swing Trading,Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.,investopedia,1,52.19,10.7,14.6,12.53,12.8,10.67,13.5,14.62
Swingline Loan,"A swingline loan is a short-term loan made by financial institutions that provides businesses with access to funds to cover debt commitments. A swingline loan can be a sub-limit of an existing credit facility or a syndicated credit line, which is financing offered by a group of lenders. Swingline loans typically have short operating durations that can range from five to 15 days on average.",investopedia,1,49.45,11.8,15,11.43,13.2,11.03,15.16666667,16.06
Switching Costs,"Switching costs are the costs that a consumer incurs as a result of changing brands, suppliers, or products. Although most prevalent switching costs are monetary in nature, there are also psychological, effort-based, and time-based switching costs.",investopedia,1,53.21,10.3,0,15.31,15.5,11.55,11,10.53
Symmetrical Distribution,"A symmetrical distribution occurs when the values of variables appear at regular frequencies and often the mean, median, and mode all occur at the same point. If a line were drawn dissecting the middle of the graph, it would reveal two sides that mirror one other.",investopedia,1,56.59,11.1,0,10.39,12.8,9.93,14.5,14.42
Syndicate,"A syndicate is a temporary alliance of businesses that joins together to manage a large transaction, which would be difficult, or impossible, to effect individually. Syndication makes it easy for companies to pool their resources and share risks, as when a group of investment banks works together to bring a new issue of securities to the market. There are different types of syndicates, such as underwriting syndicates, banking syndicates, and insurance syndicates.",investopedia,1,30.2,15,17.9,14.1,16.5,10.31,18.66666667,16.82
Syndicated Loan,"A syndicated loan, also known as a syndicated bank facility, is financing offered by a group of lenders—referred to as a syndicate—who work together to provide funds for a single borrower. The borrower can be a corporation, a large project, or a sovereign government. The loan can involve a fixed amount of funds, a credit line, or a combination of the two.",investopedia,1,50.46,11.4,15,9.57,11.4,8.99,14.66666667,13.44
Synergy,"Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A). Synergy, or the potential financial benefit achieved through the combining of companies, is often a driving force behind a merger.",investopedia,1,42.41,12.4,15.5,11.26,12.5,10.08,14.83333333,14.68
Synthetic,"Synthetic is the term given to financial instruments that are engineered to simulate other instruments while altering key characteristics, like duration and cash flow.",investopedia,1,21.74,16.2,0,17.35,18.8,10.09,21,22.93
Systematic Investment Plan (SIP),"A systematic investment plan (SIP) is a plan in which investors make regular, equal payments into a mutual fund, trading account, or retirement account such as a 401(k). SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA). By using a DCA strategy, an investor buys an investment using periodic equal transfers of funds to build wealth or a portfolio over time slowly.",investopedia,1,46.1,13,15.5,11.96,15.5,10.35,17.16666667,16.4
Systematic Sampling,"Systematic sampling is a type of probability sampling method in which sample members from a larger population are selected according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. Despite the sample population being selected in advance, systematic sampling is still thought of as being random if the periodic interval is determined beforehand and the starting point is random.",investopedia,1,27.86,15.9,17.5,14.39,17.6,9.74,19.5,16.09
"T+1 (T+2,T+3)","T+1 (T+2, T+3) are abbreviations that refer to the settlement date of security transactions. The ""T"" stands for transaction date, which is the day the transaction takes place. The numbers 1, 2, or 3 denote how many days after the transaction date the settlement—or the transfer of money and security ownership—takes place.",investopedia,1,53.92,10,13.6,11.08,11.8,9.35,12,10.77
T Distribution,"The T distribution, also known as the Student’s t-distribution, is a type of probability distribution that is similar to the normal distribution with its bell shape but has heavier tails. T distributions have a greater chance for extreme values than normal distributions, hence the fatter tails.",investopedia,1,39.67,13.4,0,13.76,15.6,9.93,16,13.55
T-Account,"A T-account is an informal term for a set of financial records that uses double-entry bookkeeping. The term describes the appearance of the bookkeeping entries. First, a large letter T is drawn on a page. The title of the account is then entered just above the top horizontal line, while underneath debits are listed on the left and credits are recorded on the right, separated by the vertical line of the letter T.",investopedia,1,61.36,9.2,12.2,9.28,9.8,8.87,11.625,11.7
T-Test,"A t-test is a type of inferential statistic used to determine if there is a significant difference between the means of two groups, which may be related in certain features. It is mostly used when the data sets, like the data set recorded as the outcome from flipping a coin 100 times, would follow a normal distribution and may have unknown variances. A t-test is used as a hypothesis testing tool, which allows testing of an assumption applicable to a population.",investopedia,1,52.53,12.6,13.6,9.93,14.4,9.85,16.83333333,15.24
Tactical Asset Allocation (TAA),Tactical asset allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors. This strategy allows portfolio managers to create extra value by taking advantage of certain situations in the marketplace. It is a moderately active strategy since managers return to the portfolio's original asset mix once reaching the desired short-term profits.,investopedia,1,22.75,15.8,17.1,16.31,17.4,10.96,17.5,17.32
Taft-Hartley Act,"The Taft-Hartley Act is a 1947 U.S. federal law that extended and modified the 1935 Wagner Act. It prohibits certain union practices and requires disclosure of certain financial and political activities by unions. The bill was initially vetoed by President Truman, but Congress overrode the veto.",investopedia,1,47.49,10.4,13.6,12.87,12,13.32,11,14.82
Tag-Along Rights,"Tag-along rights also referred to as ""co-sale rights,"" are contractual obligations used to protect a minority shareholder, usually in a venture capital deal. If a majority shareholder sells his stake, it gives the minority shareholder the right to join the transaction and sell their minority stake in the company. Tag-alongs effectively oblige the majority shareholder to include the holdings of the minority holder in the negotiations so that the tag-along right is exercised.",investopedia,1,29.89,15.1,17.5,14.34,16.9,9.38,18.5,15.2
Taguchi Method of Quality Control,"The Taguchi method of quality control is an approach to engineering that emphasizes the roles of research and development (R&D), and product design and development in reducing the occurrence of defects and failures in manufactured goods.",investopedia,1,26.48,18.5,0,15.56,23.4,13.76,26,22.18
Tail Risk in Investments,"Tail risk is a form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. Tail risks include events that have a small probability of occurring, and occur at both ends of a normal distribution curve.",investopedia,1,51.01,13.2,0,10.57,15.5,10.04,18.25,16.31
Takaful,"Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage. Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another. Takaful policies cover health, life, and general insurance needs.",investopedia,1,36.28,12.7,15.5,14.73,14.4,10.09,13.66666667,13.13
Take or Pay,"Take or pay is a provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount. Take or pay provisions benefit both the buyer and the seller by sharing risk, and can benefit society by facilitating trade and reducing transactions costs.",investopedia,1,36.63,14.6,0,11.44,15.1,10.39,18.5,18.09
Take-Out Loan,A take-out loan is a type of long-term financing that replaces short-term interim financing. Such loans are usually mortgages that are collateralized with assets and have fixed payments that are amortizing.,investopedia,1,55.74,9.3,0,14.44,13.1,10.52,10.75,12.65
Take-Profit Order (T/P),"A take-profit order (T/P) is a type of limit order that specifies the exact price at which to close out an open position for a profit. If the price of the security does not reach the limit price, the take-profit order does not get filled.",investopedia,1,42.72,18.5,0,7.74,21.5,9.03,13.75,20.67
Takeover,"A takeover occurs when one company makes a successful bid to assume control of or acquire another. Takeovers can be done by purchasing a majority stake in the target firm. Takeovers are also commonly done through the merger and acquisition process. In a takeover, the company making the bid is the acquirer and the company it wishes to take control of is called the target.",investopedia,1,63.39,8.5,12.2,9.57,9.1,9.3,10.625,10.21
Tangible Asset,A tangible asset is an asset that has a finite monetary value and usually a physical form. Tangible assets can typically always be transacted for some monetary value though the liquidity of different markets will vary. Tangible assets are the opposite of intangible assets which have a theorized value rather than a transactional exchange value.,investopedia,1,27.52,14,15.9,13.11,12.7,9.14,14.16666667,15.32
Tangible Book Value Per Share (TBVPS),"Tangible book value per share (TBVPS) is a method by which a company’s value is determined on a per-share basis by measuring its equity without the inclusion of any intangible assets. Intangible assets are those that lack physical substance, thus making their valuation a more difficult undertaking than the valuation of tangible assets.",investopedia,1,27.66,16,0,13.52,17.2,10.61,20.25,18.9
Tangible Common Equity (TCE),"Tangible common equity (TCE) is a measure of a company's physical capital, which is used to evaluate a financial institution's ability to deal with potential losses. Tangible common equity is calculated by subtracting intangible assets (including goodwill) and preferred equity from the company's book value.",investopedia,1,14.8,16.8,0,15.9,17.6,11.42,20.25,20.56
Tangible Net Worth,"Tangible net worth is most commonly a calculation of the net worth of a company that excludes any value derived from intangible assets such as copyrights, patents, and intellectual property.",investopedia,1,24.11,17.4,0,13.88,18.9,10.91,22,20
Tangible Personal Property,"Tangible personal property is a tax term describing personal property that can be physically relocated, such as furniture and office equipment. Tangible personal property is always depreciated over either a five- or seven-year period using straight-line depreciation but is eligible for accelerated depreciation as well.",investopedia,1,-2.13,19.1,0,17.82,18.7,9.31,20.25,18.78
Tape Reading,"Tape reading is an old technique that day traders used to analyze the price and volume of a given stock. From roughly the 1860s through the 1960s, stock prices were transmitted over telegraph lines on ticker tape that included a ticker symbol, price, and volume. These technologies were phased out in the 1960s with the rise of personal computers and electronic communication networks (ECNs).",investopedia,1,58.32,10.4,12.5,11.84,13.4,10.12,13.33333333,13.52
Taper Tantrum,"The phrase, taper tantrum, describes the 2013 surge in U.S. Treasury yields, resulting from the Federal Reserve's (Fed) announcement of future tapering of its policy of quantitative easing. The Fed announced that it would be reducing the pace of its purchases of Treasury bonds, to reduce the amount of money it was feeding into the economy. The ensuing rise in bond yields in reaction to the announcement was referred to as a taper tantrum in financial media.",investopedia,1,60.35,9.6,13.4,10.73,11.7,11.16,12.875,13.95
Tapering,Tapering refers to policies that modify traditional central bank activities. Tapering efforts are primarily aimed at interest rates and at controlling investor perceptions of the future direction of interest rates. Tapering efforts may include changing the discount rate or reserve requirements.,investopedia,1,32.19,12.2,15,18.09,14.9,12.4,11.16666667,14.26
Target-Date Fund,"Target-date funds are mutual fund or exchange-traded funds (ETFs) structured to grow assets in a way that is optimized for a specific time frame. The structuring of these funds addresses an investor's capital needs at some future date—hence, the name ""target date."" Most often, investors will use a target date fund to apply to their onset of retirement. However, target-date funds are more frequently being used by investors working towards a future expense, such as a child's college tuition.",investopedia,1,59.84,9.8,13,12.01,13.3,9.62,12.875,11.46
Target Markets,A target market refers to a group of potential customers to whom a company wants to sell its products and services. This group also includes specific customers to whom a company directs its marketing efforts. A target market is one part of the total market for a good or service.,investopedia,1,62.98,8.6,10.5,8.76,8.6,8.57,9,9.08
Targeted Accrual Redemption Note (TARN),A targeted accrual redemption note (TARN) is an exotic derivative that terminates when a limit on coupon payments to the holder is reached.,investopedia,1,39.67,13.4,0,11.78,14,12.33,17.5,19.63
Tax Accounting,"Tax accounting is a structure of accounting methods focused on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code, which dictates the specific rules that companies and individuals must follow when preparing their tax returns.",investopedia,1,40.69,13.1,0,15.66,16.7,11.55,16,16.07
Tax-Advantaged,"The term “tax-advantaged” refers to any type of investment, financial account, or savings plan that is either exempt from taxation, tax-deferred, or that offers other types of tax benefits. Examples of tax-advantaged investments are municipal bonds, partnerships, UITs, and annuities. Tax-advantaged plans include IRAs and qualified retirement plans such as 401(k)s.",investopedia,1,37.3,12.3,15.5,16.53,16.3,12.53,13.16666667,16.21
Tax Avoidance,"Tax avoidance is the use of legal methods to minimize the amount of income tax owed by an individual or a business. This is generally accomplished by claiming as many deductions and credits as are allowable. It may also be achieved by prioritizing investments that have tax advantages, such as buying tax-free municipal bonds. Tax avoidance is not the same as tax evasion, which relies on illegal methods such as underreporting income and falsifying deductions.",investopedia,1,43.93,11.8,13.8,12.13,12.2,9.62,12.875,14.45
Tax Base,"A tax base is a total amount of assets or income that can be taxed by a taxing authority, usually by the government. It is used to calculate tax liabilities. This can be in different forms, including income or property.",investopedia,1,57.98,8.5,12.5,7.53,6.7,8.64,8.333333333,11.32
Tax Benefit,"The term tax benefit refers to a tax law that helps taxpayers reduce their tax liabilities. Tax benefits are often created as a type of incentive for promoting responsible behaviors or commercial activities. These benefits range from deductions to tax credits to exclusions and exemptions. Benefits can cover a variety of areas, such as programs for families, education, employees, and natural disasters. Tax benefits are created through tax regulation, which is determined by federal, state, and local governments.",investopedia,1,30.26,12.9,16.6,14.09,12.8,11.09,13.4,18.55
Tax Brackets,"A tax bracket refers to a range of incomes subject to a certain income tax rate. Tax brackets result in a progressive tax system, in which taxation progressively increases as an individual’s income grows. Low incomes fall into tax brackets with relatively low income tax rates, while higher earnings fall into brackets with higher rates.",investopedia,1,52.9,10.4,11.2,12.13,12,9.42,11.16666667,11.68
Tax Break,A tax break is a reduction of a taxpayer’s total liability. The term is also used to refer to the favorable tax treatment of any class of people in the United States.,investopedia,1,63.7,8.4,0,6.55,6.4,7.88,9,11.4
Tax Credit,"A tax credit is an amount of money that taxpayers can subtract directly from taxes owed to their government. Unlike deductions, which reduce the amount of taxable income, tax credits reduce the actual amount of tax owed. The value of a tax credit depends on the nature of the credit; certain types of tax credits are granted to individuals or businesses in specific locations, classifications, or industries.",investopedia,1,40.38,13.2,14.1,12.54,14.3,9.93,14.83333333,14.89
Tax-Deductible Interest,"Tax-deductible interest is a borrowing expense that a taxpayer can claim on a federal or state tax return to reduce taxable income. Types of interest that are tax deductible include mortgage interest for both first and second (home equity) mortgages, mortgage interest for investment properties, student loan interest, and the interest on some business loans, including business credit cards.",investopedia,1,33.07,16,0,15.27,20,10.72,21.75,17.22
Tax Deduction,A tax deduction is a deduction that lowers a person’s or an organization’s tax liability by lowering their taxable income. Deductions are typically expenses that the taxpayer incurs during the year that can be applied against or subtracted from their gross income to figure out how much tax is owed.,investopedia,1,37.64,14.2,0,11.78,14.6,9.93,18,18
Tax Deed,"The term “tax deed” refers to a legal document granting ownership of a property to a government body when the owner fails to pay any associated property taxes. A tax deed gives the government agency the authority to sell the property to collect the delinquent taxes. Once sold, the property is then transferred to the purchaser. These transactions are called “tax deed sales” and are usually held at auctions. ",investopedia,1,53.71,10.1,13.8,10.79,10.7,9.24,12.25,11.57
Tax Deferred,"Tax-deferred status refers to investment earnings—such as interest, dividends, or capital gains—that accumulate tax-free until the investor takes constructive receipt of the profits. Some common examples of tax-deferred investments include individual retirement accounts (IRAs) and deferred annuities.",investopedia,1,10.4,16.4,0,22.86,21.5,14.37,15.25,18.21
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA),"The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) is federal legislation passed in 1982 to cut the budget deficit through federal spending cuts, tax increases, and reform measures. The legislation reversed some elements of the Economic Recovery Tax Act of 1981 (ERTA). Both pieces of legislation were passed early in the presidency of Ronald Reagan.",investopedia,1,43.73,11.9,14.6,12.76,13.2,11.5,13.5,13.92
Tax-Equivalent Yield,The tax-equivalent yield is the return that a taxable bond would need to equal the yield on a comparable tax-exempt municipal bond. The calculation is a tool that investors can use to compare the returns between a tax-free investment and a taxable alternative.,investopedia,1,49.65,11.7,0,12.13,13.8,9.11,14.25,14.18
Tax Evasion,Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties. To willfully fail to pay taxes is a federal offense under the Internal Revenue Service (IRS) tax code.,investopedia,1,37.6,12.2,14.1,12.12,11.5,11.41,12,15.48
Tax Exempt,"Tax-exempt refers to income or transactions that are free from tax at the federal, state, or local level. The reporting of tax-free items may be on a taxpayer's individual or business tax return and shown for informational purposes only. The tax-exempt article is not part of any tax calculations.",investopedia,1,46.47,10.8,14.1,10.96,10.8,8.96,11.83333333,13.87
Tax-Exempt Interest,"Tax-exempt interest is interest income that is not subject to federal income tax. In some cases, the amount of tax-exempt interest a taxpayer earns can limit the taxpayer's qualification for certain other tax breaks. The most common sources of tax-exempt interest come from municipal bonds or income-producing assets inside of Roth retirement accounts.",investopedia,1,36.59,12.6,15.5,14.27,14.1,10.17,13.5,13.12
Tax Expense,"A tax expense is a liability owed to federal, state/provincial, and/or municipal governments within a given period, typically over the course of a year.",investopedia,1,21.74,16.2,0,12.77,15.9,11.41,18,21.27
Tax Fraud,Tax fraud occurs when an individual or business entity willfully and intentionally falsifies information on a tax return to limit the amount of tax liability. Tax fraud essentially entails cheating on a tax return in an attempt to avoid paying the entire tax obligation. Examples of tax fraud include claiming false deductions; claiming personal expenses as business expenses; using a false Social Security number; and not reporting income.,investopedia,1,23.05,15.7,16.3,14.34,15.8,11.26,16.66666667,17.9
Tax Free,"Tax free refers to certain types of goods and financial securities (such as municipal bonds) that are not taxed. It also refers to earnings that are not taxed. The tax free status of these goods, investments, and income may incentivize individuals and business entities to increase spending or investing, resulting in economic stimulus. Tax free may also be known as tax-exempt.",investopedia,1,55.95,9.3,13,11.42,10.7,9.57,10.625,13.33
Tax-Free Savings Account (TFSA),"A tax-free savings account (TFSA) is an account in which contributions, interest earned, dividends, and capital gains are not taxed, and can be withdrawn tax-free. While it's called a savings account, a TFSA can hold certain investments including mutual funds, securities, and bonds as well as cash. This account is available to individuals ages 18 and older in Canada and can be used for any purpose.",investopedia,1,12.95,27.9,0,12.32,36,12.17,42,31.25
Tax Haven,A tax haven is generally an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment.,investopedia,1,-5.68,20.5,0,15.61,18.2,12.21,20,21.17
Tax Holiday,"A tax holiday is a government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment.",investopedia,1,31.72,14.4,0,13.81,15.2,11.07,17.75,17.89
Tax Identification Number (TIN),"A Tax Identification Number (TIN) is a nine-digit number used as a tracking number by the Internal Revenue Service (IRS). It is required information on all tax returns filed with the IRS. All U.S. tax identification numbers (TIN) or tax I.D. numbers are issued directly by the IRS except Social Security numbers (SSNs), which are issued by the Social Security Administration (SSA). Foreign tax identifying numbers (foreign TIN) are also not issued by the IRS; rather, they are issued by the country in which the non-U.S. taxpayer pays taxes.",investopedia,1,26.31,20.6,0,11.68,25.1,10.63,18.16666667,21.4
Tax Incidence,"Tax incidence (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers. Tax incidence can also be related to the price elasticity of supply and demand. When supply is more elastic than demand, the tax burden falls on the buyers. If demand is more elastic than supply, producers will bear the cost of the tax.",investopedia,1,55.58,11.5,14.1,10.16,13.2,8.34,11.75,14.04
Tax Liability,"Tax liability is the total amount of tax debt owed by an individual, corporation, or other entity to a taxing authority like the Internal Revenue Service (IRS). In other words, it is the total amount of tax you're responsible for paying to the taxman. Tax liabilities are incurred when income is earned, when there is a gain on the sale of an asset, or when another taxable event occurs. No tax liability means a taxpayer's total tax was zero in the prior year, or they did not have to file a tax return.",investopedia,1,48.47,14.2,14.1,8.19,15,9.59,14.375,16.27
Tax Lien,"A tax lien is a legal claim against the assets of an individual or business that fails to pay taxes owed to the government. In general, a lien serves to guarantee payment of a debt such as a loan, or in this case, taxes. If the obligation is not satisfied, the creditor may proceed to seize the assets.",investopedia,1,68.81,8.5,11.9,6.5,8.1,8.95,12,11.17
Tax Lien Certificate,A tax lien certificate is a certificate of claim against a property that has a lien placed upon it as a result of unpaid property taxes. Tax lien certificates are generally sold to investors through an auction process.,investopedia,1,41.37,16.9,0,10.92,20.3,10.92,25,19.41
Tax Loss Carryforward,A tax loss carryforward (or carryover) is a provision that allows a taxpayer to move a tax loss to future years to offset a profit. The tax loss carryforward can be claimed by an individual or a business to reduce any future tax payments.,investopedia,1,57.61,10.7,0,8.01,10.5,9.39,14,13.35
Tax Loss Harvesting,"Tax-loss harvesting is the selling of securities at a loss to offset a capital gains tax liability. This strategy is typically employed to limit the recognition of short-term capital gains. Short-term capital gains are generally taxed at a higher federal income tax rate than long-term capital gains. However, the method may also offset long-term capital gains.",investopedia,1,26.14,16.6,0,14.1,18.7,9.54,14,16.91
Tax Planning,Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success.,investopedia,1,44.44,11.6,14.9,10.85,10.9,9.52,13.375,14.99
Tax Rate,"A tax rate is the percentage at which an individual or corporation is taxed. The United States (both the federal government and many of the states) uses a progressive tax rate system, in which the percentage of tax charged increases as the amount of the person's or entity's taxable income increases. A progressive tax rate results in a higher dollar amount collected from taxpayers with greater incomes.",investopedia,1,48.84,12,15,11.61,13.5,9.22,15.5,14.29
Tax Reform Act of 1986,"The Tax Reform Act of 1986 is a law passed by the United States Congress to simplify the income tax code. To increase fairness and provide an incentive for growth in the economy, the passage of the Act reduced the maximum rate on ordinary income and raised the tax rate on long-term capital gains.",investopedia,1,60.99,11.5,0,8.77,13.4,10.24,16.5,14.5
Tax Refund,A tax refund is a reimbursement to a taxpayer of any excess amount paid to the federal government or a state government.,investopedia,1,49.15,11.9,0,8.53,10.8,8.32,16,14.25
Tax Relief,Tax relief is any government program or policy initiative designed to reduce the amount of taxes paid by individuals or businesses. It may be a universal tax cut or a targeted program that benefits a specific group of taxpayers or bolsters a particular goal of the government.,investopedia,1,39.16,13.6,0,11.15,13.4,10.18,17.75,17.91
Tax Return,"A tax return is a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes. In most countries, tax returns must be filed annually for an individual or business with reportable income, including wages, interest, dividends, capital gains, or other profits.",investopedia,1,31.51,14.5,15.5,13.64,15.7,11.03,16,16.73
Tax Season,"Tax season is the time period, generally between Jan. 1 and April 15 of each year, when individual taxpayers traditionally prepare financial statements and reports for the previous year and submit their tax returns. In the U.S., individuals typically must file their annual tax return by April 15 of the year following any reportable earnings. Tax returns submitted after the end of tax season are subject to late penalty fees and interest charges.",investopedia,1,38.35,13.9,15,12.19,15,10.47,16.5,16.3
Tax Selling,"Tax selling refers to a type of sale in which an investor sells an asset with a capital loss in order to lower or eliminate the capital gain realized by other investments, for income tax purposes. Tax selling allows the investor to avoid paying capital gains tax on recently sold or appreciated assets.",investopedia,1,44.58,13.6,0,10.04,14.1,10.31,17.75,15.13
Tax Shelter,"A tax shelter is a vehicle used by individuals or organizations to minimize or decrease their taxable incomes and, therefore, tax liabilities. Tax shelters are legal, and can range from investments or investment accounts that provide favorable tax treatment, to activities or transactions that lower taxable income through deductions or credits.",investopedia,1,28.67,15.6,0,15.9,18.5,12.33,18.25,18.83
Tax-Sheltered Annuity,"A tax-sheltered annuity is a type of investment vehicle that lets an employee make pretax contributions into a retirement account from income. Because the contributions are pretax, IRS does not tax the contributions and related benefits until the employee withdraws them from the plan. Since the employer can also make direct contributions to the plan, the employee gains the benefit of having additional tax-free funds accruing.",investopedia,1,40.69,13.1,16.7,14.27,15.7,9.51,16.66666667,16.07
Tax Shield,"A tax shield is a reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization, and depreciation. These deductions reduce a taxpayer's taxable income for a given year or defer income taxes into future years. Tax shields lower the overall amount of taxes owed by an individual taxpayer or a business.",investopedia,1,24.48,15.1,16.3,14.91,15.9,11.6,16,17.27
Tax Table,"A tax table is a chart that displays the amount of tax due based on income received. The tax rate in the table may be shown as a discrete amount, a percentage rate, or a combination of both. Tax tables are used by individuals, companies, and estates for both standard income and capital gains.",investopedia,1,70.13,8,10.5,7.42,8.5,8.33,10.66666667,10.16
Tax-to-GDP Ratio,"A tax-to-GDP ratio is a gauge of a nation's tax revenue relative to the size of its economy as measured by gross domestic product (GDP). The ratio provides a useful look at a country's tax revenue because it reveals potential taxation relative to the economy. It also enables a view of the overall direction of a nation's tax policy, as well as international comparisons between the tax revenues of different countries.",investopedia,1,47.42,12.5,14.6,10.62,13.6,9.93,15.83333333,13.99
Tax Treaty,"A tax treaty is a bilateral (two-party) agreement made by two countries to resolve issues involving double taxation of passive and active income of each of their respective citizens. Income tax treaties generally determine the amount of tax that a country can apply to a taxpayer's income, capital, estate, or wealth.  An income tax treaty is also called a Double Tax Agreement (DTA).",investopedia,1,39,15.8,0,11.67,18.5,10.16,20.5,17.8
Tax Wedge,A tax wedge is the difference between before-tax and after-tax wages. The tax wedge measures how much the government ostensibly receives as a result of taxing the labor force.,investopedia,1,56.76,8.9,0,10.72,9.7,9.26,8.75,7.18
Taxable Income,"Taxable income is the portion of an individual’s or a company’s income used to calculate how much tax they owe the government in a given tax year. It can be described broadly as adjusted gross income (AGI) minus allowable itemized or standard deductions. Taxable income includes wages, salaries, bonuses, and tips, as well as investment income and various types of unearned income.",investopedia,1,50.46,11.4,13,12.01,13.3,10.78,13.33333333,13.44
Taxable Wage Base,"The taxable wage base is the maximum amount of earned income that employees must pay Social Security taxes on. Generally, the employee's gross wages will be equal to the taxable wage base. Typically, an employer will handle this calculation and withhold the correct amount of taxes from each of the employee's paychecks; however, the employee is still responsible for reporting the tax.",investopedia,1,42,12.5,15,12.3,13.6,9.76,14.66666667,15.38
Taxation,"Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Paying taxes to governments or officials has been a mainstay of civilization since ancient times.",investopedia,1,15.99,20.5,0,13.7,22.7,13,15.5,26.78
Taxation Without Representation,"The phrase taxation without representation describes a populace that is required to pay taxes to a government authority without having any say in that government's policies. The term has its origin in a slogan of the American colonials against their British rulers: ""Taxation without representation is tyranny.""",investopedia,1,39.16,13.6,0,15.21,17.1,10.18,16.25,13.66
Taxes,"Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional or national. Tax revenues finance government activities, including such public works and services as roads and schools, or programs like Social Security and Medicare. In economics, taxes fall on whomever pays the burden of the tax, whether this is the entity being taxed, such as a business, or the end consumers of the business's goods.",investopedia,1,39.37,13.6,15.5,14.28,16.3,11.56,16.33333333,15.61
Taxpayer,"A taxpayer may be an individual or business entity that is obligated to pay taxes to a federal, state, or local government. Taxes from both individuals and businesses are a primary source of revenue for governments. In the United States, individual taxpayers are usually required to file and pay both federal and state tax returns annually. Businesses must also file annual returns but usually plan for and pay regular estimated tax payments throughout the year.",investopedia,1,35.47,13,15.9,12.18,12.3,9.41,14.375,15.52
Taxpayer Identification Number (TIN),"A taxpayer identification number (TIN) is a unique nine-digit number used to identify an individual, business, or other entity in tax returns and other documents filed with the Internal Revenue Service (IRS). A TIN is typically either a Social Security number or an employer identification number (EIN), depending on the entity that it is being issued to. The TIN is also known as the 95-number or the tax-ID number.",investopedia,1,31.21,14.6,15,11.03,13.8,9.81,15.83333333,15.58
Taylor's Rule,The Taylor rule (sometimes referred to as Taylor's rule or Taylor principle) is an econometric model that describes the relationship between Federal Reserve operating targets and the rates of inflation and gross domestic product growth. The Taylor rule has been interpreted both as a way to forecast Fed monetary policy and as a fixed rule policy to guide monetary policy in response to changes in economic conditions. The rule consists of a formula that relates the Fed's operating target for short-term interest rates to two factors: the deviation between actual and desired inflation rates and the deviation between real GDP growth and the desired GDP growth rates.,investopedia,1,26.78,18.4,18.6,13.3,21.1,11.01,24,20.26
Teacher Retirement System (TRS),The Teacher Retirement System (TRS) is a network of state and city-level organizations that collectively administer pensions and retirement accounts for public education employees within their states.  They also provide educators with help and advice regarding their retirement planning.,investopedia,1,5.5,22.4,0,19.27,28.4,12.33,30,24
"Teachers, Insurance, and Annuity Association (TIAA)","The Teachers, Insurance, and Annuity Association (TIAA) is a financial organization that provides investment and insurance services for those working in education, medicine, culture, and research. TIAA has a history that dates back to the late Andrew Carnegie, whose Carnegie Foundation for the Advancement of Teaching created the initial organization in order to service the pension needs of professors. The financial services company was founded in 1918 with a $1 million endowment from the Carnegie Foundation. It went by the name TIAA-CREF, short for Teachers Insurance and Annuity Association—College Retirement Equities Fund, until 2016, when it rebranded under the shortened name of TIAA.",investopedia,1,28.2,17.8,19.3,16.08,23.1,10.86,18.5,19.55
Technical Analysis,"Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.",investopedia,1,0.76,20.1,0,20.95,23.7,14.05,24,25.49
Technical Analysis of Stocks and Trends,"Technical analysis is the study of historical market data, including price and volume. Using insights from market psychology, behavioral economics, and quantitative analysis, technical analysts aim to use past performance to predict future market behavior. The two most common forms of technical analysis are chart patterns and technical (statistical) indicators.",investopedia,1,20.68,14.5,17.1,17.8,16.5,11.41,14.33333333,17.08
Technical Analyst,"A technical analyst, also known as a chartist or market technician, is a securities researcher or trader who analyzes investments based on past market prices and technical indicators. Technicians believe that short-term price movements are the result of supply and demand forces in the market for a given security.",investopedia,1,38.15,14,0,13.93,16.4,10.97,17.25,17.15
Technical Indicator,"Technical indicators are heuristic or pattern-based signals produced by the price, volume, and/or open interest of a security or contract used by traders who follow technical analysis.",investopedia,1,18.69,17.4,0,15.9,19.6,12.58,20.5,18.21
Technical Job Skills,"Technical job skills, sometimes referred to as hard skills, are specific talents and expertise an individual possesses that help them perform a certain task or job. These skills differ from soft skills, which instead describe character and personality traits.",investopedia,1,43.22,12.1,0,14.85,15,9.87,13.25,14.98
Technical Skills,"Technical skills refer to the specialized knowledge and expertise needed to accomplish complex actions, tasks, and processes relating to computational and physical technology as well as a diverse group of other enterprises. Those who possess technical skills are often referred to as ""technicians"", with the expression referring to audio technicians, electronics technicians, market technicians, computer technicians, engineering technicians, and a variety of other designations.",investopedia,1,5.16,20.5,0,19.91,25.2,12.38,28,24.05
Technocracy,"A technocracy is a model of governance wherein decision-makers are chosen for office based on their technical expertise and background. A technocracy differs from a traditional democracy in that individuals selected to a leadership role are chosen through a process that emphasizes their relevant skills and proven performance, as opposed to whether or not they fit the majority interests of a popular vote.",investopedia,1,22.58,17.9,0,14.69,20.1,11.97,24.25,22.76
"Technology, Media, and Telecom Sector (TMT)","The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. There is a substantial overlap between TMT and the 1990s idea of the new economy. The TMT sector is sometimes also referred to as technology, media, and communications (TMC).",investopedia,1,46.06,11,13,12,12,10.47,11.33333333,13.08
Technology Sector,"The technology sector is the category of stocks relating to the research, development, or distribution of technologically based goods and services. This sector contains businesses revolving around the manufacturing of electronics, creation of software, computers, or products and services relating to information technology.",investopedia,1,7.35,17.6,0,19.84,20.2,12.41,17.75,19.76
Ted Spread,"The TED spread is the difference between the three-month Treasury bill and the three-month LIBOR based in U.S. dollars. To put it another way, the TED spread is the difference between the interest rate on short-term U.S. government debt and the interest rate on interbank loans.",investopedia,1,56.59,11.1,0,11.15,13.9,8.55,15,10.94
Telegraphic Transfers (TT),A telegraphic transfer (TT) is an electronic method of transferring funds utilized primarily for overseas wire transactions. These transfers are used most commonly in reference to Clearing House Automated Payment System (CHAPS) transfers in the U.K. banking system. Telegraphic transfers are also known as telex transfers.,investopedia,1,47.49,10.4,13,15.94,14.6,11.95,10.66666667,13.08
Temporal Method,The temporal method (also known as the historical method) converts the currency of a foreign subsidiary into the currency of the parent company. This technique of foreign currency translation is used when the local currency of the subsidiary is not the same as the currency of the parent company. Differing exchange rates are used depending on the financial statement item being translated.,investopedia,1,40.01,15.4,0,14.17,19.5,9.5,15,17.56
Tenancy at Sufferance,"Tenancy at sufferance is an agreement in which a property renter is legally permitted to live on a property after a lease term has expired but before the landlord demands the tenant vacate the property. If a tenancy at sufferance occurs, the original lease conditions must be met including the payment of any rents. Otherwise, the tenant can be evicted at any time without notice.",investopedia,1,49.45,11.8,14.6,10.44,12.3,9.33,14.83333333,12.99
Tenancy-at-Will,"A tenancy-at-will is a property tenure that can be terminated at any time by either the tenant or the owner/landlord. It exists without a contract or lease and usually does not specify the duration of a tenant’s rental or the exchange of payment. The agreement is governed by state law and the terms can vary by state, though federal law comes into play in cases of discrimination. ",investopedia,1,56.89,11,13.6,9.7,12.1,9.87,14.66666667,14.37
Tenancy by the Entirety,The term tenancy by the entirety refers to a form of shared property ownership that is reserved only for married couples. A tenancy by the entirety permits spouses to jointly own property as a single legal entity. This means that each spouse has an equal and undivided interest in the property.,investopedia,1,54.22,9.9,14.1,9.86,9.6,9.43,12.16666667,12.29
Tenancy in Common (TIC),"Tenancy in common is an arrangement where two or more people share ownership rights in a property or parcel of land. The property may be commercial or residential. When a tenant in common dies, the property passes to that tenant's estate. Each independent owner may control an equal or different percentage of the total property. Also, the tenancy in common partner has the right to leave their share of the property to any beneficiary as a portion of their estate. Contract terms for tenants in common are detailed in the deed, title, or other legally binding property ownership documents.",investopedia,1,54.73,9.7,13,10.61,10.2,8.6,11.25,10.64
Tenants by Entirety (TBE),"Tenants by entirety (TBE) is a method in some states by which married couples can hold the title to a property. In order for one spouse to modify his or her interest in the property in any way, the consent of both spouses is required by tenants by entirety. It also provides that when one spouse passes away the surviving spouse gains full ownership of the property.",investopedia,1,65.76,9.6,13,8.48,10.8,8.75,14.16666667,12.5
Tender,A tender is an invitation to bid for a project or accept a formal offer such as a takeover bid. Tendering usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. The term also refers to the process whereby shareholders submit their shares or securities in response to a takeover offer.,investopedia,1,58.32,10.4,13,11.72,13,10.61,13.66666667,14.15
Tender Offer,A tender offer is a bid to purchase some or all of the shareholders' stock in a corporation. Tender offers are typically made publicly and invite shareholders to sell their shares for a specified price and within a particular window of time. The price offered is usually at a premium to the market price and is often contingent upon a minimum or a maximum number of shares sold.,investopedia,1,48.43,12.1,14.1,9.17,11.4,8.94,15,15.55
Tenkan-Sen (Conversion Line),"Tenkan-Sen, or Conversion Line, is the mid-point of the highest and lowest prices of an asset over the last nine periods. The Tenkan-Sen is part of a larger indicator called the Ichimoku Kinko Hyo, which shows potential support and resistance areas based on different timeframes. Ichimoku Kinko Hyo roughly means ""one look equilibrium chart,"" and is commonly called the Ichimoku Cloud indicator.",investopedia,1,58.92,10.2,13,12.82,14.3,11.03,13.33333333,12.8
Term Deposit,A term deposit is a fixed-term investment that includes the deposit of money into an account at a financial institution. Term deposit investments usually carry short-term maturities ranging from one month to a few years and will have varying levels of required minimum deposits.,investopedia,1,40.69,13.1,0,13.17,14.7,10.11,14.5,15.16
Term Life Insurance,"Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.",investopedia,1,32.57,16.2,0,11.62,17.1,9.07,22,18
Term Loan,"A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and either a fixed or floating interest rate. A term loan is often appropriate for an established small business with sound financial statements. Also, a term loan may require a substantial down payment to reduce the payment amounts and the total cost of the loan.",investopedia,1,58.32,10.4,12.5,9.28,11.1,8.64,13.33333333,13.52
Term Sheet,"A term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment. The term sheet serves as a template and basis for more detailed, legally binding documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is drawn up.",investopedia,1,67.08,9.1,9.7,9.98,11.6,9.69,11.83333333,10.94
Term to Maturity,A bond's term to maturity is the length of time during which the owner will receive interest payments on the investment. When the bond reaches maturity the principal is repaid.,investopedia,1,56.25,9.1,0,9.97,9.1,9.12,9,11.33
Terminal Capitalization Rate,"The terminal capitalization rate, also known as the exit rate, is the rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value.",investopedia,1,44.58,13.6,0,8.83,13.5,9.12,18.75,17.39
Terminal Value (TV),"Terminal value (TV) is the value of an asset, business, or project beyond the forecasted period when future cash flows can be estimated. Terminal value assumes a business will grow at a set growth rate forever after the forecast period. Terminal value often comprises a large percentage of the total assessed value.",investopedia,1,45.46,11.2,13.6,11.08,11.2,9.96,12,12.3
Termination of Employment,Termination of employment refers to the end of an employee’s work with a company. An employee may be terminated from a job of their own free will or following a decision made by the employer.,investopedia,1,53.71,10.1,0,8.12,8.5,8.11,13.25,15
Terms of Employment,"Terms of employment refer to the responsibilities and benefits associated with a job as agreed upon by an employer and employee at the time of hiring. These terms, which may also be referred to as conditions of employment, generally include job responsibilities, work hours, dress code, time off the job, and starting salary. They may also include benefits such as health insurance, life insurance, and retirement plans.",investopedia,1,40.38,13.2,15.5,12.71,14.6,9.69,15.83333333,14.89
Terms of Trade (TOT),Terms of trade (TOT) represent the ratio between a country's export prices and its import prices. How many units of exports are required to purchase a single unit of imports? The ratio is calculated by dividing the price of the exports by the price of the imports and multiplying the result by 100.,investopedia,1,70.43,7.8,9.7,9.1,9.6,10.17,10.16666667,10.1
Tertiary Industry,"The tertiary industry is a technical name for the service sector of the economy, which encompasses a wide range of businesses, including financial institutions, schools, hotels, and restaurants.",investopedia,1,26.14,16.6,0,16.37,20.6,12.92,22,22.63
Testamentary Trust,A testamentary trust is a trust that is established in accordance with the instructions contained in a last will and testament. A will could have more than one testamentary trust. The trustee named is responsible for managing and distributing the trustor's assets to the beneficiaries as directed in the will.,investopedia,1,54.52,9.8,14.1,12.12,11.4,9.2,12,14.68
Tether (USDT),"Tether is a blockchain-based cryptocurrency whose cryptocoins in circulation are backed by an equivalent amount of traditional fiat currencies, like the dollar, the euro, or the Japanese yen, which are held in a designated bank account. Tether tokens, the native tokens of the Tether network, trade under the USDT symbol.",investopedia,1,46.1,13,0,13.99,17.1,11.19,16.5,16.4
Texas Ratio,The Texas ratio was developed to warn of credit problems at particular banks or banks in particular regions. The Texas ratio takes the amount of a bank's non-performing assets and divides this number by the sum of the bank's tangible common equity and its loan loss reserves. A ratio of more than 100 (or 1:1) indicates that non-performing assets are greater than the resources the bank may need to cover potential losses on those assets.,investopedia,1,54.56,11.9,13,10.39,13.9,10.14,15.5,13.73
Tezos,"Tezos (XTZ) is a blockchain network linked to a digital token, which is called a tez or a tezzie. Tezos is not based on the mining of tez. Instead, token holders receive a reward for taking part in its proof-of-stake consensus mechanism.",investopedia,1,74.19,6.4,9.7,7.94,7.6,10.72,7.333333333,8.46
The Greatest Generation,"The Greatest Generation is a term used to describe those Americans who grew up during the Great Depression and fought in World War II, or whose labor helped win it. The term ""the Greatest Generation"" is thought to have been coined by former NBC Nightly News anchor and author Tom Brokaw in his book by the same name.",investopedia,1,67.42,11.1,0,8.72,14.1,8.89,16.5,13.67
Theoretical Ex-Rights Price (TERP),"A theoretical ex-rights price (TERP) is the market price that a stock will theoretically have following a new rights issue. Companies may use a new rights issuance to offer more shares to shareholders, usually at a discounted price. Stock prices are affected by new rights issuance because it increases the number of shares outstanding.",investopedia,1,53.21,10.3,13.6,12.06,12.3,9.21,12.33333333,13.87
Theoretical Value (Of a Right),"The theoretical value (of a right) is the value of a subscription right. During the period of time when a new rights offering is announced up until three days before the subscription rights expire (known as the cum rights period), the value of the right is specific and can easily be calculated. To calculate the value of a right during the window in which it is effective, and investor must be told the subscription price and the number of rights required to buy one share of stock. With that information the value of the right can be calculated using the following formula:",investopedia,1,54.05,12.1,14.6,9.41,13.2,7.84,16,14.51
Theory of Price,The theory of price is an economic theory that states that the price for any specific good or service is based on the relationship between its supply and demand. The theory of price posits that the point at which the benefit gained from those who demand the entity meets the seller's marginal costs is the most optimal market price for that good or service.,investopedia,1,47.46,14.6,0,9.76,16.3,9.17,21,17.8
Theory of the Firm,"In neoclassical economics—an approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand—the theory of the firm is a microeconomic concept that states that a firm exists and make decisions to maximize profits.",investopedia,1,11.93,22,0,17.19,27.2,12.49,31,25.37
There Ain't No Such Thing as a Free Lunch (TANSTAAFL),"There ain't no such thing as a free lunch (TANSTAAFL), also known as ""there is no such thing as a free lunch"" (TINSTAAFL), is an expression that describes the cost of decision-making and consumption. The expression conveys the idea that things appearing free always have some cost paid by somebody, or that nothing in life is truly free.",investopedia,1,67.42,11.1,0,9.99,15.8,7.8,17,14.36
Third Party,"A third party is an individual or entity that is involved in a transaction but is not one of the principals and, thus, has a lesser interest in the transaction. An example of a third party would be the escrow company in a real estate transaction; the escrow party acts as a neutral agent by collecting the documents and money that the buyer and seller exchange when completing the transaction.",investopedia,1,35.95,16.9,0,9.76,17.9,9.43,24,19.14
Third-Party Insurance,Third-party insurance is a policy purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party).,investopedia,1,28.17,15.8,0,14.45,18.6,8.57,20,15.02
Third-Party Transactions,"A third-party transaction is a business deal that involves a person or entity other than the main participants. Typically, it would involve a buyer, a seller, and another party—the third party. The involvement of the third party can vary, based on the type of business transaction.",investopedia,1,55.95,9.3,12.5,10.9,10.4,8.86,10.33333333,10.47
Third World,"Third World is an outdated and derogatory phrase that has been used historically to describe a class of economically developing nations. It is part of a four-part segmentation that was used to describe the world’s economies by economic status. Third World falls behind First World and Second World but was ahead of Fourth World, though Fourth-World countries were hardly recognized at all. Today the preferred terminology is a developing nation, an underdeveloped country, or a low- and middle-income country (LMIC).",investopedia,1,51.18,11.1,13,13.46,14.3,8.58,13,13
Thomas Malthus,"Thomas Robert Malthus was a famous 18th-century British economist known for the population growth philosophies outlined in his 1798 book ""An Essay on the Principle of Population."" In it, Malthus theorized that populations would continue expanding until growth is stopped or reversed by disease, famine, war, or calamity. He is also known for developing an exponential formula used to forecast population growth, which is currently known as the Malthusian growth model.",investopedia,1,38.96,13.7,15.5,14.63,16.8,11.48,16.5,16.24
Three Black Crows,"Three black crows is a phrase used to describe a bearish candlestick pattern that may predict the reversal of an uptrend. Candlestick charts show the day's opening, high, low, and closing prices for a particular security. For stocks moving higher, the candlestick is white or green. When moving lower, they are black or red.",investopedia,1,66.23,7.4,10.1,10.14,9,9.28,7.25,7.62
Three-Sigma Limits,"Three-sigma limits is a statistical calculation where the data are within three standard deviations from a mean. In business applications, three-sigma refers to processes that operate efficiently and produce items of the highest quality.",investopedia,1,28.84,13.5,0,16.35,15.3,12.37,13.5,16.21
Three White Soldiers,Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. These candlesticks should not have very long shadows and ideally open within the real body of the preceding candle in the pattern.,investopedia,1,47.83,12.4,13.6,12.83,14.9,9.08,15,12.75
Thrift Association,"Even though they're not as common as they used to be, thrifts, or savings and loan associations, still play an important part in many consumers' lives. Thrifts also refer to credit unions and mutual savings banks that provide a variety of savings and loan services. Thrifts differ from commercial banks in that they can borrow money from the Federal Home Loan Bank System, which allows them to pay members higher interest.",investopedia,1,55.88,11.4,11.9,11.03,13.8,9.26,14.16666667,12.86
Thrift Bank,"A thrift bank–also just called a thrift–is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers. Thrift banks are also sometimes referred to as Savings and Loan Associations (S&Ls). Thrift banks differ from larger commercial banks, like Wells Fargo or Bank of America, because they usually offer higher yields on savings accounts and provide limited lending services to businesses.",investopedia,1,40.38,13.2,14.1,15.67,16.8,11.58,14.83333333,14.89
Thrift Savings Plan (TSP),"A thrift savings plan (TSP) is a type of retirement investment program open to federal employees and members of the uniformed services, including the Ready Reserve.",investopedia,1,45.09,13.4,0,13.12,16.8,12.82,18,18.09
Throughput,Throughput is the amount of a product or service that a company can produce and deliver to a client within a specified period of time. The term is often used in the context of a company's rate of production or the speed at which something is processed.,investopedia,1,64.54,10.1,0,8.07,10.9,8.83,14.75,13.66
Tick,"A tick is a measure of the minimum upward or downward movement in the price of a security. A tick can also refer to the change in the price of a security from one trade to the next trade. Since 2001 and the advent of decimalization, the minimum tick size for stocks trading above $1 is one cent.",investopedia,1,68.81,8.5,10.5,6.04,7.5,7.59,11.33333333,9.79
Tick Size,"Tick size refers to the minimum price movement of a trading instrument in a market. The price movements of different trading instruments vary, with their tick sizes representing the minimum amount they can move up or down on an exchange.",investopedia,1,59.64,9.9,0,11.02,11.9,8.58,13,12
Ticker Symbol,"A stock symbol is a unique series of letters assigned to a security for trading purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or fewer letters. Nasdaq-listed securities can have up to five characters. Symbols are just a shorthand way of describing a company's stock, so there is no significant difference between those that have three letters and those that have four or five. Stock symbols are also known as ticker symbols.",investopedia,1,64.3,8.1,10.8,10.15,9.4,8.91,8.5,9.8
Tier 1 Capital,Tier 1 capital is used to describe the capital adequacy of a bank and refers to core capital that includes equity capital and disclosed reserves. Equity capital is inclusive of instruments that cannot be redeemed at the option of the holder.,investopedia,1,42.21,12.5,0,10.85,11.9,9.66,15.25,12.1
Tier 1 Capital Ratio,"The tier 1 capital ratio is the ratio of a bank’s core tier 1 capital—that is, its equity capital and disclosed reserves—to its total risk-weighted assets. It is a key measure of a bank's financial strength that has been adopted as part of the Basel III Accord on bank regulation.",investopedia,1,54.56,11.9,0,9.23,12.8,11.19,16,12.4
Tier 1 Common Capital Ratio,"Tier 1 common capital ratio is a measurement of a bank's core equity capital, compared with its total risk-weighted assets, and signifies a bank's financial strength. The Tier 1 common capital ratio is utilized by regulators and investors because it shows how well a bank can withstand financial stress and remain solvent. Tier 1 common capital excludes any preferred shares or non-controlling interests, which makes it differ from the closely-related tier 1 capital ratio.",investopedia,1,37.94,14.1,15.5,13.52,16.4,11.9,17,14.2
Tier 1 Leverage Ratio,The Tier 1 leverage ratio measures a bank's core capital relative to its total assets. The ratio looks specifically at Tier 1 capital to judge how leveraged a bank is based on its assets. Tier 1 capital are those assets that can be easily liquidated if a bank needs capital in the event of a financial crisis. The Tier 1 leverage ratio is thus a measure of a bank's near-term financial health.,investopedia,1,61.67,9.1,12.2,7.83,8.6,9.13,11.5,9.98
Tier 2 Capital,"The term tier 2 capital refers to one of the components of a bank's required reserves. Tier 2 is designated as the second or supplementary layer of a bank's capital and is composed of items such as revaluation reserves, hybrid instruments, and subordinated term debt. It is considered less secure than Tier 1 capital—the other form of a bank's capital—because it's more difficult to liquidate. In the United States, the overall capital requirement is partially based on the weighted risk of a bank's assets.",investopedia,1,50.16,11.5,14.6,11.14,12.9,10.13,14.5,13.64
Tight Monetary Policy,"Tight, or contractionary monetary policy is a course of action undertaken by a central bank such as the Federal Reserve to slow down overheated economic growth, to constrict spending in an economy that is seen to be accelerating too quickly, or to curb inflation when it is rising too fast.",investopedia,1,20.73,22.8,0,11.1,26.3,11.49,35,28
Timber Investment Management Organization (TIMO),"A Timber Investment Management Organization (TIMO) is a management group that aids institutional investors in managing their timberland investment portfolios. A TIMO acts as a broker for institutional clients to find, analyze and acquire investment properties that would best suit their clients.",investopedia,1,33.24,13.8,0,17.23,17.7,10.69,17,16.97
Time Deposit,A time deposit is an interest-bearing bank account that has a pre-set date of maturity. A certificate of deposit (CD) is the best-known example. The money must remain in the account for the fixed term in order to earn the stated interest rate.,investopedia,1,65.42,7.7,10.5,8.17,7.7,7.65,7.833333333,9.44
Time Horizon,"An investment time horizon, or just time horizon, is the period of time one expects to hold an investment until they need the money back. Time horizons are largely dictated by investment goals and strategies. For example, saving for a down payment on a house, for maybe two years, would be considered a short-term time horizon, while saving for college would be a medium-term time horizon, and investing for retirement, a long-term time horizon.",investopedia,1,54.86,11.7,13,11.09,14.6,8.28,15.33333333,13.66
Time in Force,Time in force is a special instruction used when placing a trade to indicate how long an order will remain active before it is executed or expires. These options are especially important for active traders and allow them to be more specific about the time parameters.,investopedia,1,48.13,12.3,0,10.74,12.8,9.24,15,14.42
Times Interest Earned (TIE),The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current income. The formula for a company's TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.,investopedia,1,47.12,12.7,0,9.99,13.2,10.75,16.5,14.6
Time Value of Money (TVM),"The time value of money (TVM) is the concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received. TVM is also sometimes referred to as present discounted value.",investopedia,1,58.32,10.4,11.9,8.94,10.9,8.89,13,12.9
Time-Weighted Rate of Return (TWR),The time-weighted rate of return (TWR) is a measure of the compound rate of growth in a portfolio. The TWR measure is often used to compare the returns of investment managers because it eliminates the distorting effects on growth rates created by inflows and outflows of money. The time-weighted return breaks up the return on an investment portfolio into separate intervals based on whether money was added or withdrawn from the fund.,investopedia,1,55.58,11.5,13,11.78,14.4,9.65,15,12.93
Times-Revenue Method,"The times-revenue method is a valuation method used to determine the maximum value of a company. The times-revenue method uses a multiple of current revenues to determine the ""ceiling"" (or maximum value) for a particular business. Depending on the industry and the local business and economic environment, the multiple might be one to two times the actual revenues. However, in some industries, the multiple might be less than one.",investopedia,1,45.46,11.2,15.6,11.83,12,8.61,13.375,13.3
TINA (There is No Alternative),"There is no alternative, often abbreviated as ""TINA,"" is a phrase that originated with the Victorian philosopher Herbert Spencer and later became a slogan for British Prime Minister Margaret Thatcher in the 1980s. Today, it is often used by investors to explain a less-than-ideal portfolio allocation, usually of stocks, because other asset classes offer even worse returns. This situation and the subsequent decisions of investors can lead to the ""TINA Effect"" whereby stocks rise only because investors have no viable alternative.",investopedia,1,35.61,15,14.6,14.57,18.5,11.02,17.5,16.23
Tit for Tat,"Tit for tat is a game-theory strategy subject to a payoff matrix like that of a prisoner's dilemma. Tit for tat was introduced by Anatol Rapoport, who developed a strategy in which each participant in an iterated prisoner's dilemma follows a course of action consistent with his opponent's previous turn. For example, if provoked, a player subsequently responds with retaliation; if unprovoked, the player cooperates. The tit-for-tat strategy is not exclusive to economics. It is used in many fields, including psychology and sociology. In biology, it is likened to reciprocal altruism.",investopedia,1,27.62,13.9,16.4,13.23,13.4,10.79,14.5,17.39
Title Insurance,"Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. The most common type of title insurance is lender's title insurance, which the borrower purchases to protect the lender. The other type is owner's title insurance, which is often paid for by the seller to protect the buyer's equity in the property.",investopedia,1,48.84,12,15,11.49,13.4,9.22,15.5,13.7
Title Search,"A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims or liens are on the property. A clean title is required for any real estate transaction to go through properly.",investopedia,1,50.16,11.5,0,9.92,11.6,9.94,14,15.07
To Be Announced (TBA),"To be announced, or TBA in bond trading, is a term that describes forward-settling of mortgage-backed securities (MBS) trades. Pass-through securities issued by Freddie Mac, Fannie Mae, and Ginnie Mae trade in the TBA market, and the term TBA is derived from the fact that the actual mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made. These securities are announced 48 hours prior to the established trade settlement date.",investopedia,1,52.53,12.6,14.6,11.44,15.9,10.24,17.5,13.76
Tobacco Tax/Cigarette Tax,"A tobacco or cigarette tax is a tax imposed on all tobacco products by various levels of government, often with the alleged goal of reducing tobacco use or at least generating revenues earmarked to fund related healthcare programs. The terms ""Tobacco Tax"" and ""Cigarette Tax"" are used interchangeably.",investopedia,1,38.66,13.8,0,12.89,15.5,9.76,18,13.77
Tobin Tax,"The Tobin tax is a tax levied on spot currency conversions, with the intention of disincentivizing short-term currency speculation, named after economist James Tobin.",investopedia,1,21.74,16.2,0,16.6,18.6,11.41,19,19.6
Tokyo Price Index (TOPIX),"The Tokyo Price Index—commonly referred to as TOPIX—is a metric for stock prices on the Tokyo Stock Exchange (TSE). TOPIX is a capitalization-weighted index that lists all firms in the ""first section"" of the TSE, a section that organizes all large firms on the exchange into one group. The second section of the TSE pools all of the smaller remaining companies.",investopedia,1,67.79,8.8,10.5,10.79,12.2,9.3,11.83333333,11.4
Tombstone,A tombstone is a written advertisement of a public offering placed by investment bankers who are underwriting the issue. It gives basic details about the issue and lists each of the underwriting groups involved in the deal. The tombstone provides investors with some general information and directs the prospective investors to a link where they can obtain a prospectus.,investopedia,1,51.48,11,11.9,13.11,13.3,10.5,12.16666667,11.27
Tomorrow Next (Tom Next),Tomorrow next (tom next) is a short-term foreign exchange (forex) transaction where a currency is simultaneously bought and sold over two separate business days: those being tomorrow (in one business day) and the following day (two business days from today).,investopedia,1,30.88,18.9,0,13.47,24.4,8.38,27,19
Tontine,"Tontine is the name of an early system for raising capital in which individuals pay into a common pool of money; they receive dividends based on their share of returns from investments made with the pooled money. As members of the group died, they were not replaced with new investors so the proceeds were divided among fewer and fewer members. The surviving investors quite literally profited from the deaths of people they knew—a feature that many considered macabre. Even in their heyday, tontines were regarded as somewhat off-color.",investopedia,1,49.15,11.9,12.6,11.84,13.6,9.57,13.75,12.89
Too Big to Fail,"Too big to fail describes a business or business sector deemed to be so deeply ingrained in a financial system or economy that its failure would be disastrous to the economy. Therefore, the government will consider bailing out the business or even an entire sector—such as Wall Street banks or U.S. carmakers—to prevent economic disaster.",investopedia,1,43.56,14,0,12.65,16.8,11.03,18.75,16.09
Top Line,"The top line is a reference to gross figures reported by a company, such as sales or revenue. It is called the top line because it is displayed at the very top of a company's income statement, and is reserved for the reporting of gross sales or revenue. A company that increases its revenue or sales is said to be generating top-line growth. The opposite of the top line is the bottom line.",investopedia,1,69.82,8.1,11.7,7.37,8.2,8.01,11.375,11.16
Top-Down Analysis,"Top-down investing is an investment analysis approach that analyzes first the macro factors of the economy, such as GDP, employment, taxation, interest rates, etc. before examining micro factors such as specific sectors or further yet companies. This approach prioritizes macroeconomic, national, or market-level factors.",investopedia,1,15.31,16.6,0,17.81,19.3,12.62,18.5,21.53
Top-Down Investing,"Top-down investing is an investment analysis approach that analyzes first the macro factors of the economy, such as GDP, employment, taxation, interest rates, etc. before examining micro factors such as specific sectors or further yet companies. This approach prioritizes macroeconomic, national, or market-level factors.",investopedia,1,15.31,16.6,0,17.81,19.3,12.62,18.5,21.53
Toronto Stock Exchange (TSX),"The term Toronto Stock Exchange (TSX) refers to a Canadian stock exchange located in Toronto, Ontario. Founded in 1861, the TSX is Canada's premier stock exchange with more than 1,500 listed companies, including those from the energy, mining, technology, and real estate sectors. The exchange is also home to international listings and exchange-traded products. It became fully electronic after closing its trading floor in 1997. In 2007, the TSX merged with the Montreal Exchange (MX) to form the TMX Group.",investopedia,1,44.37,13.7,14.1,13.52,17.8,11.47,17,15.18
Tort Law,"Tort law is the area of the law that covers most civil suits. Generally, every claim that arises in civil court, with the exception of contractual disputes, falls under tort law. The concept of this area of law is to redress a wrong done to a person and provide relief from the wrongful acts of others, usually by awarding monetary damages as compensation. The original intent of tort is to provide full compensation for proved harms.",investopedia,1,54.26,12,12.5,9.87,13.6,10.5,11.5,13.8
Total Bond Fund,"A total bond fund is a mutual fund or exchange-traded fund that seeks to replicate a broad bond index. A total bond fund owns many securities across a range of maturities, from both public and private sectors. The most common index used as a benchmark is the Barclays Aggregate Bond Index, which captures Treasury bonds, corporate bonds, municipal bonds and high-grade mortgage-backed securities.",investopedia,1,50.16,11.5,13,12.53,14,10.94,13.5,12.21
Total Cost of Ownership (TCO),The total cost of ownership (TCO) is the purchase price of an asset plus the costs of operation. Assessing the total cost of ownership represents taking a bigger picture look at what the product is and what its value is over time.,investopedia,1,58.62,10.3,0,8.24,10.3,8.81,13,12.21
Total Debt Service Ratio,"The term total debt service (TDS) ratio refers to a debt service measurement that financial lenders use when determining the proportion of gross income that is already spent on housing-related and other similar payments. Lenders consider each potential borrower’s property taxes, credit card balances, and other monthly debt obligations to calculate the ratio of income to debt, and then compare that number to the lender’s benchmark for deciding whether or not to extend credit.",investopedia,1,25.46,18.9,0,14.52,22.9,11.87,25,21.83
Total Debt-to-Capitalization,"The total debt-to-capitalization ratio is a tool that measures the total amount of outstanding company debt as a percentage of the firm’s total capitalization. The ratio is an indicator of the company's leverage, which is debt used to purchase assets.",investopedia,1,34.26,13.5,0,12.59,13.5,9.76,13.5,13
Total-Debt-to-Total-Assets,"Total-debt-to-total-assets is a leverage ratio that defines the total amount of debt relative to assets owned by a company. Using this metric, analysts can compare one company's leverage with that of other companies in the same industry. This information can reflect how financially stable a company is. The higher the ratio, the higher the degree of leverage (DoL) and, consequently, the higher the risk of investing in that company.",investopedia,1,45.46,11.2,13.4,11.95,12.2,9.76,11.875,12.14
Total Enterprise Value (TEV),Total enterprise value (TEV) is a valuation measurement used to compare companies with varying levels of debt. Total enterprise value includes not only a company's equity value but also the market value of its debt while subtracting out cash and cash equivalents.,investopedia,1,33.24,13.8,0,12.71,14,9.94,15,16.02
Total Expense Ratio (TER),"The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses.",investopedia,1,30.7,14.8,0,12.89,15.5,11.86,17.75,18.76
Total Liabilities,"Total liabilities are the combined debts and obligations that an individual or company owes to outside parties. Everything the company owns is classified as an asset and all amounts the company owes for future obligations are recorded as liabilities. On the balance sheet, total assets minus total liabilities equals equity.",investopedia,1,29.14,13.3,14.6,13.86,12.8,10.47,12.33333333,10.68
Total Quality Management (TQM),"Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.",investopedia,1,16.15,18.3,0,16.95,21.2,12.06,23.75,21.29
Total Return,"Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends, and distributions realized over a period. Total return accounts for two categories of return: income including interest paid by fixed-income investments, distributions, or dividends and capital appreciation, representing the change in the market price of an asset.",investopedia,1,14.59,16.9,18.9,16.02,17.6,9.64,19,17.9
Total Return Index,"A total return index is a type of equity index that tracks both the capital gains as well as any cash distributions, such as dividends or interest, attributed to the components of the index. A look at an index's total return displays a more accurate representation of the index's performance to shareholders.",investopedia,1,36.63,14.6,0,11.03,14.8,10.09,18.5,18.09
Total Shareholder Return (TSR),"Total shareholder return (TSR) is a measure of financial performance, indicating the total amount an investor reaps from an investment—specifically, equities or shares of stock. To arrive at its total, usually expressed as a percentage, TSR factors in capital gains and dividends from a stock; it might also include special distributions, stock splits, and warrants. Whichever way it is calculated, TSR means the same thing: the sum total of what a stock has returned to those who invested in it.",investopedia,1,44.37,13.7,15,12.25,16.4,10.29,17.66666667,17.18
Total Utility,"Total utility is the aggregate amount of satisfaction or fulfillment that a consumer receives through the consumption of a specific good or service. Total utility is often compared to marginal utility, which is the satisfaction a consumer receives from consuming one additional unit of a good or service. Total utility helps economists understand the demand for goods and services.",investopedia,1,34.56,13.3,15.9,14.1,14.2,9.43,14.83333333,14.66
Tracker Fund,"A tracker fund is an index fund that tracks a broad market index or a segment thereof. Tracker funds are also known as index funds, designed to offer investors exposure to an entire index at a low cost. These funds seek to replicate the holdings and performance of a designated index, constructed as ETFs or alternative investments to meet the fund’s tracking objective.",investopedia,1,58.62,10.3,11.9,10.62,12.1,10.19,12.83333333,12.84
Tracking Error,"Tracking error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge fund, mutual fund, or exchange-traded fund (ETF) that did not work as effectively as intended, creating an unexpected profit or loss.",investopedia,1,45.09,13.4,0,10.45,14.6,10.39,18.5,17.32
Tracking Stock,A tracking stock is a special equity offering issued by a parent company that tracks the financial performance of a particular segment or division. Tracking stocks will trade in the open market separately from the parent company's stock.,investopedia,1,43.73,11.9,0,12.76,12.8,10.4,14,16.02
Trade Credit,"Trade credit is a business-to-business (B2B) agreement in which a customer can purchase goods without paying cash up front, and paying the supplier at a later scheduled date. Usually, businesses that operate with trade credits will give buyers 30, 60, or 90 days to pay, with the transaction recorded through an invoice.",investopedia,1,53.55,12.3,0,11.9,16,11,16,14.25
Trade Deficit,A trade deficit occurs when a country's imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).,investopedia,1,65.73,7.6,0,7.59,7.1,10.53,7,8.46
Trade Finance,Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Trade finance makes it possible and easier for importers and exporters to transact business through trade. Trade finance is an umbrella term meaning it covers many financial products that banks and companies utilize to make trade transactions feasible.,investopedia,1,34.09,15.6,0,17,20.7,10.59,13.83333333,17.72
Trade Liberalization,"Trade liberalization is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. These barriers include tariffs, such as duties and surcharges, and nontariff barriers, such as licensing rules and quotas. Economists often view the easing or eradication of these restrictions as steps to promote free trade.",investopedia,1,45.05,11.4,14.1,14.27,13.8,10.17,12.5,13.12
Trade Line,A trade line is a record of activity for any type of credit extended to a borrower and reported to a credit reporting agency. A trade line is established on a borrower’s credit report when a borrower is approved for credit. The trade line records all of the activity associated with an account.,investopedia,1,53.51,10.2,13.6,8.58,8.9,8.39,12.16666667,13.12
Trade Sanction,Trade sanctions are laws passed to restrict or abolish trade with certain countries.,investopedia,1,75.2,6,0,13.5,11.2,11.57,5.5,5.2
Trade Secret,A trade secret is any practice or process of a company that is generally not known outside of the company. Information considered a trade secret gives the company a competitive advantage over its competitors and is often a product of internal research and development.,investopedia,1,18.36,21.6,0,13.13,24.8,10.48,16.5,24.87
Trade Signal,"A trade signal is a trigger for action, either to buy or sell a security or other asset, generated by analysis. That analysis can be human generated using technical indicators, or it can be generated using mathematical algorithms based on market action, possibly in combination with other market factors such as economic indicators.",investopedia,1,19.2,17.2,0,13.12,16.8,10.31,20.25,18.15
Trade War,A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.,investopedia,1,39.67,13.4,0,15.03,16.5,10.96,14.5,12.68
Trademark,"The term trademark refers to a recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind. A trademark exclusively identifies a product as belonging to a specific company and recognizes the company's ownership of the brand. Trademarks are generally considered a form of intellectual property and may or may not be registered.",investopedia,1,32.94,14,16.3,13.63,14.9,10.86,16,17.27
Trader,"A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends.",investopedia,1,46.81,12.8,13,10.91,13.8,9.82,15.16666667,13.01
Trading Account,"A trading account can be any investment account containing securities, cash or other holdings. Most commonly, trading account refers to a day trader’s primary account. These investors tend to buy and sell assets frequently, often within the same trading session, and their accounts are subject to special regulation as a result. The assets held in a trading account are separated from others that may be part of a long-term buy and hold strategy.",investopedia,1,52.9,10.4,11.7,11.72,11.8,9.3,11.375,12.25
Trading Book,"A trading book is the portfolio of financial instruments held by a brokerage or bank. Financial instruments in a trading book are purchased or sold for several reasons. For example, they might be bought or sold to facilitate trading actions for customers or to profit from trading spreads between the bid and ask prices, or to hedge against different forms of risk. Trading books can range in size from hundreds of thousands of dollars to tens of billions depending on the size of the institution.",investopedia,1,58.32,10.4,13,10.5,12.1,9.52,13.625,12.28
Trading Desk,"A trading desk is a physical location where transactions for buying and selling securities occur. Depending on the type of financial institution, the trading desk may be filled by traders trading for their own proprietary account, brokers who act as agents matching buyers and sellers, or some mixture of both.",investopedia,1,46.1,13,0,12.71,15.7,11.51,16.5,16.4
Trading Halt,"A trading halt is a temporary suspension of trading for a particular security or securities at one exchange or across numerous exchanges. Trading halts are typically enacted in anticipation of a news announcement, to correct an order imbalance, as a result of a technical glitch, or due to regulatory concerns. When a trading halt is in effect, open orders may be canceled and options still may be exercised.",investopedia,1,39.97,13.3,15.5,11.49,13.5,10.34,16,17.32
Trading House,"A trading house is a business that specializes in facilitating transactions between a home country and foreign countries. A trading house is an exporter, importer and also a trader that purchases and sells products for other businesses. Trading houses provide a service for businesses that want international trade experts to receive or deliver goods or services.",investopedia,1,44.03,11.8,12.5,14.21,13.8,9.92,12,12.48
Trading Platform,"A trading platform is software used for trading: opening, closing, and managing market positions through a financial intermediary such as an online broker. Online trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for maintaining a funded account and/or making a specified number of trades per month. The best trading platforms offer a mix of robust features and low fees.",investopedia,1,48.43,12.1,11.9,12.89,14.6,10.1,13.66666667,13.2
Trading Strategy,A trading strategy is a systematic methodology used for buying and selling in the securities markets. A trading strategy is based on predefined rules and criteria used when making trading decisions.,investopedia,1,38.82,11.7,0,13.45,11.8,11.03,11.75,15.23
Trading Session,"A trading session is a period of time that matches the primary daytime trading hours for a given locale. This phrase will refer to different hours, depending on the markets and locations being discussed. Generally a single day of business in the local financial market, from that market’s opening bell to its closing bell, is the trading session that the individual investor or trader will reference.",investopedia,1,40.69,13.1,13,11.6,13.5,10.23,14,13.65
Traditional IRA,A traditional individual retirement account (IRA) allows individuals to direct pre-tax income toward investments that can grow tax-deferred. The IRS assesses no capital gains or dividend income taxes until the beneficiary makes a withdrawal. Individual taxpayers can contribute 100% of any earned compensation up to a specified maximum dollar amount.,investopedia,1,20.68,14.5,16.3,16.76,15.5,12.04,13.66666667,17.88
Tragedy of the Commons,"The tragedy of the commons is an economics problem in which every individual has an incentive to consume a resource, but at the expense of every other individual -- with no way to exclude anyone from consuming. Initially it was formulated by asking what would happen if every shepherd, acting in their own self-interest, allowed their flock to graze on the common field. If everybody does act in their apparent own best interest, it results in harmful over-consumption (all the grass is eaten, to the detriment of everyone)",investopedia,1,42.04,14.6,15,11.5,16.7,9.25,19,15.74
Trailing 12 Months,"Trailing 12 months (TTM) is a term used to describe the past 12 consecutive months of a company’s performance data, that’s used for reporting financial figures. The 12 months studied do not necessarily coincide with a fiscal-year ending period.",investopedia,1,43.22,12.1,0,12.47,13.2,11.49,14.25,16.01
Trailing Price-to-Earnings (Trailing P/E),Trailing price-to-earnings (P/E) is a relative valuation multiple that is based on the last 12 months of actual earnings. It is calculated by taking the current stock price and dividing it by the trailing earnings per share (EPS) for the past 12 months.,investopedia,1,58.11,10.5,0,9.98,12.4,10.58,14.25,14.18
Trailing Stop,"A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price.",investopedia,1,59.64,9.9,11.2,9.81,11,7.26,12,11.33
Tranches,"Tranches are segments created from a pool of securities—usually debt instruments such as bonds or mortgages—that are divvied up by risk, time to maturity, or other characteristics in order to be marketable to different investors. Each portion or tranche of a securitized or structured product is one of several related securities offered at the same time, but with varying risks, rewards and maturities to appeal to a diverse range of investors.",investopedia,1,26.98,18.3,0,13.53,21.3,11.85,23.25,19.27
Transaction,"A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets. But in business bookkeeping, this plain definition can get complicated. A transaction will be recorded earlier or later depending on whether the company uses accrual accounting rather than cash accounting.",investopedia,1,38.01,12,15,14.38,13.3,10.57,12.5,14.68
Transaction Exposure,"Transaction exposure is the level of uncertainty businesses involved in international trade face. Specifically, it is the risk that currency exchange rates will fluctuate after a firm has already undertaken a financial obligation. A high level of vulnerability to shifting exchange rates can lead to major capital losses for these international businesses.",investopedia,1,20.08,14.8,15.9,16.01,14.9,9.96,13.66666667,16.15
Transaction Fees,"A per-transaction fee is an expense a business must pay each time it processes an electronic payment for a customer transaction. Per-transaction fees vary across service providers, typically costing merchants from 0.5% to 5% of the transaction amount plus certain fixed fees.",investopedia,1,50.16,11.5,0,13.92,15.3,10.69,14,12.21
Transfer Agent,"A transfer agent is a trust company, bank, or similar institution assigned by a corporation for the purposes of maintaining an investor's financial records and tracking each investor's account balance. The transfer agent records transactions, cancels and issues certificates, processes investor mailings, and handles a host of other investor problems, including reissuing lost or stolen certificates.",investopedia,1,26.14,16.6,0,17.7,21.6,12.07,20.5,19.06
Transfer of Risk,A transfer of risk is a business agreement in which one party pays another to take responsibility for mitigating specific losses that may or may not occur. This is the underlying tenet of the insurance industry.,investopedia,1,44.75,11.5,0,10.44,10.6,10.23,12.5,13.87
Transfer on Death (TOD),"The transfer on death designation lets beneficiaries receive assets at the time of the person's death without going through probate. This designation also lets the account holder or security owner specify the percentage of assets each designated beneficiary receives, which helps the executor distribute the person's assets after death. With TOD registration, the named beneficiaries have no access to or control over a person's assets as long as the person is alive.",investopedia,1,30.2,15,14.6,14.34,16.5,9.43,16,15.16
Transfer Payment,"A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple ""payment,"" which in economics refers to a transfer of money in exchange for a product or service.",investopedia,1,57.1,10.9,0,9.06,11.6,7.56,12.25,10.78
Transfer Price,"Transfer price, also known as transfer cost, is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments.",investopedia,1,50.5,13.4,0,11.91,16.9,8.89,16.5,14.36
Transfer Pricing,Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.,investopedia,1,30.2,15,0,15.15,16.9,10.75,19,16.27
Transfer Tax,A transfer tax is a charge levied on the transfer of ownership or title to property from one individual or entity to another.,investopedia,1,39.67,13.4,0,8.71,11.2,8.9,16.5,16.16
Transferable Letters of Credit Work,"A transferable letter of credit is a type of financial guarantee, known as a letter of credit, that additionally allows the first beneficiary to transfer some or all of the credit to another party, which creates a secondary beneficiary. The party that initially accepts the transferable letter of credit from the bank is referred to as the first, or primary beneficiary.",investopedia,1,32.06,16.4,0,12.2,17.7,9.03,20.75,16.79
Translation Exposure,"Translation exposure (also known as translation risk) is the risk that a company's equities, assets, liabilities, or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities, or income in a foreign currency. It is also known as ""accounting exposure.”",investopedia,1,44.44,11.6,14.6,11.72,12.4,9.14,13.16666667,13.14
Transparency,"Although the term transparency is not a financial term or metric per se, it has become increasingly important to consumers and investors over the last several years.",investopedia,1,44.07,13.8,0,12.42,16.3,10.82,18.5,15.24
Transportation Sector,"The transportation sector is a category of companies that provide services to move people or goods, as well as transportation infrastructure. Technically, transportation is a sub-group of the industrials sector according to the Global Industry Classification Standard (GICS). The transportation sector consists of several industries including air freight and logistics, airlines, marine, road and rail, and transportation infrastructure. These industries are further broken down into the sub-industries air freight and logistics, airlines, marine, railroads, trucking, airport services, highways and rail tracks, and marine ports and services.",investopedia,1,25.42,16.8,17.9,19.68,23.6,10.02,15.75,17.06
Transposition Error,"A transposition error describes an event where a bookkeeper accidentally reverses two adjacent digits, when recording transactional data. Although this error may seem small in scale, it often results in substantial financial incongruities that can have a great impact in other areas. Transpositional errors, which tend to occur in accounting firms, brokerages, and other financial services providers, fall under the broader category of transcription errors.",investopedia,1,24.07,15.3,15.9,17,17.9,12.24,15.83333333,16.68
Traunch,"A traunch is one of a series of payments to be paid out over a specified period, subject to certain performance metrics being achieved. It is commonly used in venture capital (VC) circles to refer to the fundraising rounds used to fund startup companies.",investopedia,1,57.61,10.7,0,9.86,12.2,11.19,14,13.35
Travel Expenses,Travel expenses are costs associated with traveling for the purpose of conducting business-related activities. Reasonable travel expenses can generally be deducted by the business when employees incur costs while traveling away from home specifically for business purposes. Those business purposes can include conferences or meetings.,investopedia,1,13.95,15,16.3,19.65,17,11.05,12.83333333,17.56
Traveler's Check,"A traveler’s check (sometimes spelled ""cheque"") is a once-popular but now largely outmoded medium of exchange utilized as an alternative to hard currency and intended to aid tourists. The product is typically used by people on vacation in foreign countries. It offers a safe way to travel overseas without the risks associated with losing cash. The issuing party, usually a bank, provides security against lost or stolen checks.",investopedia,1,45.76,11.1,13,12.64,12.4,11.21,11.5,13.86
Treasury Bills (T-Bills),"A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments.",investopedia,1,35.57,12.9,15,13.17,14,11.9,13.66666667,15.34
Treasury Bond (T-Bond),"Treasury bonds (T-bonds) are government debt securities issued by the U.S. Federal government that have maturities greater than 20 years. T-bonds earn periodic interest until maturity, at which point the owner is also paid a par amount equal to the principal.",investopedia,1,49.11,9.8,13,11.82,10.6,11.25,8.833333333,12.31
Treasury Direct,TreasuryDirect is the online platform through which investors can purchase federal government securities directly from the U.S. Treasury.,investopedia,1,27.83,13.9,0,20.12,19,13.3,14,16.09
Treasury Inflation-Protected Security (TIPS),"Treasury inflation-protected securities (TIPS) are a type of Treasury security issued by the U.S. government. TIPS are indexed to inflation in order to protect investors from a decline in the purchasing power of their money. As inflation rises, TIPS adjust in price to maintain its real value.",investopedia,1,47.08,10.6,11.9,12.06,11.4,10.13,10.16666667,10.54
Treasury Notes,A Treasury note (T-note for short) is a marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.,investopedia,1,53.55,12.3,0,9.12,13.8,12.21,17,15.02
Treasury Stock (Treasury Shares),"Treasury stock, also known as treasury shares or reacquired stock, refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result is that the total number of outstanding shares on the open market decreases. These shares are issued but no longer outstanding and are not included in the distribution of dividends or the calculation of earnings per share (EPS).",investopedia,1,49.45,11.8,14.6,12.71,14.3,9.57,14.83333333,14.22
Treasury Stock Method,"The treasury stock method is an approach companies use to compute the number of new shares that may potentially be created by unexercised in-the-money warrants and options, where the exercise price is less than the current share price. Additional shares obtained through the treasury stock method factor into the calculation of the diluted earnings per share (EPS). This method assumes that the proceeds a company receives from an in-the-money option exercise are used towards repurchasing common shares in the market.",investopedia,1,30.88,18.9,0,14.52,24.5,10.95,17,20.5
Treasury STRIPS,"Treasury STRIPS are bonds that are sold at a discount to their face value. The investor does not receive interest payments but is repaid the full face value when the bonds mature. That is, they mature ""at par.""",investopedia,1,83.96,4.7,6.4,7.29,6.3,8.42,5.666666667,6.13
Treasury Yield,"Treasury yield is the return on investment, expressed as a percentage, on the U.S. government's debt obligations. Looked at another way, the Treasury yield is the effective interest rate that the U.S. government pays to borrow money for different lengths of time.",investopedia,1,50.16,11.5,0,12.01,14,10.32,15,14.11
Treaty Reinsurance,"Treaty reinsurance is insurance purchased by an insurance company from another insurer. The company that issues the insurance is called the cedent, who passes on all the risks of a specific class of policies to the purchasing company, which is the reinsurer.",investopedia,1,41.7,12.7,0,12.13,13.4,9.94,16.5,14.11
Trend,"A trend is the overall direction of a market or an asset's price. In technical analysis, trends are identified by trendlines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend.",investopedia,1,62.01,11.1,0,9.81,13.8,9.78,15,12.71
Trend Analysis,Trend analysis is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data.,investopedia,1,39.67,13.4,0,14.8,16.1,13.02,15.5,14.42
Trend Trading,"Trend trading is a trading style that attempts to capture gains through the analysis of an asset's momentum in a particular direction. When the price is moving in one overall direction, such as up or down, that is called a trend.",investopedia,1,67.59,8.9,0,8.88,10.6,9.27,12.75,11.13
Trendline,Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together or show some data's best fit. The resulting line is then used to give the trader a good idea of the direction in which an investment's value might move.,investopedia,1,65.05,9.9,0,9.64,12.1,8.9,14.5,12.68
Treynor Ratio,"The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio.",investopedia,1,31.55,16.6,0,11.96,18.1,10.78,20.5,18.85
Trial Balance,"A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.",investopedia,1,33.54,13.7,14.1,12.3,13.3,10.01,14,13.44
Triangle,"A triangle is a chart pattern, depicted by drawing trendlines along a converging price range, that connotes a pause in the prevailing trend. Technical analysts categorize triangles as continuation patterns.",investopedia,1,30.87,12.7,0,15.59,13.9,12.8,12,18
Triangular Arbitrage,Triangular arbitrage is the result of a discrepancy between three foreign currencies that occurs when the currency's exchange rates do not exactly match up. These opportunities are rare and traders who take advantage of them usually have advanced computer equipment and/or programs to automate the process.,investopedia,1,31.21,14.6,0,15.67,17,11.99,17,18.77
Trickle-Down Theory,"Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors, and entrepreneurs to stimulate economic growth. The argument hinges on two assumptions: All members of society benefit from growth, and growth is most likely to come from those with the resources and skills to increase productive output.",investopedia,1,45.8,13.2,17.1,14.74,17.7,10.5,18.66666667,16.96
Triggering Event,"A triggering event is a tangible or intangible barrier or occurrence which, once breached or met, causes another event to occur. Triggering events include job loss, retirement, or death, and are typical for many types of contracts. These triggers help to prevent, or ensure, that in the case of a catastrophic change, the terms of an original contract may also change.",investopedia,1,59.33,10,14.1,10.97,12.5,10.34,13.83333333,14.02
Trilemma,"Trilemma is a term in economic decision-making theory. Unlike a dilemma, which has two solutions, a trilemma offers three equal solutions to a complex problem. A trilemma suggests that countries have three options from which to choose when making fundamental decisions about managing their international monetary policy agreements. However, the options of the trilemma are conflictual because of mutual exclusivity, which makes only one option of the trilemma achievable at a given time.",investopedia,1,35.98,12.8,14.2,14.97,14.4,10.17,12.875,14.44
Trillion Cubic Feet (Tcf),"The term trillion cubic feet refers to a volume measurement of natural gas used by the U.S. oil and gas industry. The measurement is usually abbreviated as Tcf. A cubic foot is a nonmetric measurement of volume also used in the U.S. A trillion—written in numerals as 1,000,000,000,000—cubic feet is equivalent to approximately one quad of Btu or a British thermal unit.",investopedia,1,64.2,8.2,12.6,10.32,9.8,10.26,10.5,11.36
Trimmed Mean,"A trimmed mean (similar to an adjusted mean) is a method of averaging that removes a small designated percentage of the largest and smallest values before calculating the mean. After removing the specified outlier observations, the trimmed mean is found using a standard arithmetic averaging formula. The use of a trimmed mean helps eliminate the influence of outliers or data points on the tails that may unfairly affect the traditional mean.",investopedia,1,38.96,13.7,16.3,13,15.1,11.26,17.16666667,17.93
Triple Bottom,A triple bottom is a bullish chart pattern used in technical analysis that's characterized by three equal lows followed by a breakout above the resistance level.,investopedia,1,53.55,12.3,0,12.89,16.2,11,17,16.55
Triple Bottom Line (TBL),"Triple bottom line (TBL), in economics, believes that companies should commit to focusing as much on social and environmental concerns as they do on profits. TBL theory posits that instead of one bottom line, there should be three: profit, people, and the planet. A TBL seeks to gauge a corporation's level of commitment to corporate social responsibility and its impact on the environment over time.",investopedia,1,49.45,11.8,13.6,11.6,13.8,10.3,14.16666667,14.83
Triple Exponential Moving Average (TEMA),"The triple exponential moving average (TEMA) was designed to smooth price fluctuations, thereby making it easier to identify trends without the lag associated with traditional moving averages (MA). It does this by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag.",investopedia,1,29.69,15.2,0,14.39,17.1,10.97,18.75,18.78
Triple Net Lease (NNN),"A triple net lease (triple-Net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance. These payments are in addition to the fees for rent and utilities, and all payments are typically the responsibility of the landlord in the absence of a triple, double, or single net lease.",investopedia,1,44.92,15.6,0,11.21,19.2,10.61,22.25,19.02
Triple Top,"The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset's price. Consisting of three peaks, a triple top signals that the asset may no longer be rallying, and that lower prices may be on the way.",investopedia,1,71.99,9.3,0,7.49,11.2,10.33,14.75,13.88
Triple Witching,"Triple witching is the simultaneous expiration of stock options, stock index futures, and stock index options contracts all on the same trading day. This happens four times a year: on the third Friday of March; June; September; and December. Because three options classes that could share the same underlying expire all on the same day, it can cause increased trading volume and unusual price action in the underlying assets.",investopedia,1,48.13,12.3,11.9,12.19,14.4,9.13,13.83333333,11.52
Troubled Asset Relief Program (TARP),"The Troubled Asset Relief Program (TARP) was an initiative created and run by the U.S. Treasury to stabilize the country’s financial system, restore economic growth, and mitigate foreclosures in the wake of the 2008 financial crisis. TARP sought to achieve these targets by purchasing troubled companies’ assets and stock.",investopedia,1,46.47,10.8,13.6,13.92,13.1,13.15,11.5,13.87
Trough,"A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise.",investopedia,1,53.55,12.3,0,8.88,13.5,9.78,17,15.02
Troy Ounce,"A troy ounce is a unit of measure used for weighing precious metals that dates back to the Middle Ages. Originally used in Troyes, France, one troy ounce is equal to 31.1034768 grams, according to the U.K. Royal Mint. One standard ounce, used to weigh other items such as sugar and grain, is slightly less at 28.35 grams. The troy ounce is retained even today as the standard unit of measurement in the precious metals market to ensure purity standards and other common measures remain consistent over time. The troy ounce is often abbreviated to read ""t oz"" or ""oz t.""",investopedia,1,62.72,10.8,10.1,9,13.1,10.05,11.2,12.5
True Strength Index (TSI),"The true strength index (TSI) is a technical momentum oscillator used to identify trends and reversals. The indicator may be useful for determining overbought and oversold conditions, indicating potential trend direction changes via centerline or signal line crossovers, and warning of trend weakness through divergence.",investopedia,1,8.88,23.2,0,18.64,30.2,14.29,17.75,28.67
Trust,"A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also be a type of closed-end fund built as a public limited company.",investopedia,1,47.15,14.7,15.5,10.05,17.2,10.12,20.83333333,17.87
Trust Company,"A trust company is a legal entity that acts as a fiduciary, agent, or trustee on behalf of a person or business for the purpose of administration, management, and the eventual transfer of assets to a beneficial party. The trust company acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration, and other related arrangements.",investopedia,1,15.14,18.7,0,14.69,20.2,10.84,23.75,20.07
Trust Deed,A trust deed—also known as a deed of trust—is a document sometimes used in real estate transactions in the U.S. It is a document that comes into play when one party has taken out a loan from another party to purchase a property. The trust deed represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off.,investopedia,1,63.02,10.7,13,8.3,11.8,7.82,15.5,13.2
Trust Fund,"A trust fund is an estate planning tool that establishes a legal entity to hold property or assets for a person or organization. A neutral third party, called a trustee, is tasked with managing the assets. Trust funds can hold a variety of assets, such as money, real property, stocks and bonds, a business, or a combination of many different types of properties or assets. Trusts can be formed under a variety of forms and stipulations.",investopedia,1,52.19,10.7,13,9.52,10.5,9.77,12.5,12.34
Trust Indenture,A trust indenture is an agreement in a bond contract made between a bond issuer and a trustee that represents the bondholder's interests by highlighting the rules and responsibilities that each party must adhere to. It may also indicate where the income stream for the bond is derived from.,investopedia,1,55.07,11.7,0,11.32,14.1,9.69,15.75,15.51
Trust Preferred Securities (TruPS),Trust preferred securities (TruPS) were hybrid securities issued by large banks and bank holding companies (BHCs) included in regulatory tier 1 capital and whose dividend payments were tax deductible for the issuer.,investopedia,1,22.08,18.1,0,15.73,21.7,13.61,23,19.05
Trust Property,"Trust property refers to assets that have been placed into a fiduciary relationship between a trustor and trustee for a designated beneficiary. Trust property may include any type of asset, including cash, securities, real estate, or life insurance policies. Trust property is also referred to as ""trust assets"" or ""trust corpus.""",investopedia,1,45.76,11.1,13.6,13.22,13.1,10.67,11.83333333,13.07
Trust Receipts,"A trust receipt is a notice of the release of merchandise to a buyer from a bank, with the bank retaining the ownership title of the released assets. In an arrangement involving a trust receipt, the bank remains the owner of the merchandise, but the buyer is allowed to hold the merchandise in trust for the bank, for manufacturing or sales purposes.",investopedia,1,48.47,14.2,0,9.76,16,8.99,20,16.92
Trustee,"A trustee is a person or firm that holds and administers property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.",investopedia,1,60.48,11.7,0,7.26,12.5,9.88,18.25,17.55
Truth in Lending Act (TILA),"The Truth in Lending Act (TILA) is a federal law enacted in 1968 to help protect consumers in their dealings with lenders and creditors. The TILA was implemented by the Federal Reserve Board through a series of regulations. Some of the most important aspects of the act concern the information that must be disclosed to a borrower before extending credit, such as the annual percentage rate (APR), the term of the loan, and the total costs to the borrower. This information must be conspicuous on documents presented to the borrower before signing and in some cases on the borrower’s periodic billing statements.",investopedia,1,45.59,13.2,15.9,11.44,14.9,10.16,17.5,16.08
TSA PreCheck,"TSA PreCheck is a U.S. government program that allows travelers deemed low-risk by the Transportation Security Administration (TSA), a U.S. Department of Homeland Security agency, to pass through an expedited security screening process at certain U.S. airports. In March 2021 alone, 98% of TSA PreCheck passengers took less than five minutes to pass through security.",investopedia,1,44.44,11.6,14.1,14.16,14.5,11.15,12.83333333,12.41
Turnaround,"When a company that has experienced a period of poor performance moves into a period of a financial recovery, it's called a turnaround. A turnaround may also refer to the recovery of a nation or region's economy after a period of recession or stagnation. Similarly, it can refer to the recovery of an individual whose personal financial situation improves after some time.",investopedia,1,23.09,17.7,0,11.85,17.8,10.01,16.33333333,20.14
Turnkey Asset Management Program (TAMP),"A turnkey asset management program offers a fee-account technology platform that financial advisers, broker-dealers, insurance companies, banks, law firms, and CPA firms can use to oversee their clients’ investment accounts. Turnkey asset management programs are designed to help financial professionals save time and allow them to focus on providing clients with service in their areas of expertise, which may not include asset management tasks like investment research and portfolio allocation. In other words, TAMPs let financial professionals and firms delegate asset management and research responsibilities to another party that specializes in those areas.",investopedia,1,23.09,17.7,19.3,18.11,22.9,11.63,23.5,18.85
Turnkey Business,"A turnkey business is a business that is ready to use, existing in a condition that allows for immediate operation.",investopedia,1,42.72,12.3,0,9.98,11.2,9.37,14,16
Turnkey Property,"A turnkey property is a fully renovated home or apartment building that an investor can purchase and immediately rent out. A turnkey home is often a property purchased from a company that specializes in the restoration of older properties. Those same firms may also offer property management services to buyers, minimizing the amount of time and effort they have to put into the rental.",investopedia,1,49.86,11.6,13.6,11.6,13,9.13,14,12.9
Turnkey Solution,"A turnkey solution is a type of system built end-to-end for a customer that can be easily implemented into a current business process. It is immediately ready to use upon implementation and is designed to fulfill a certain process such as manufacturing (in part or whole), billing, website design, training, or content management.",investopedia,1,36.12,14.8,0,12.36,16.5,10.61,16.75,15.88
Turnover,"Turnover is an accounting concept that calculates how quickly a business conducts its operations. Most often, turnover is used to understand how quickly a company collects cash from accounts receivable or how fast the company sells its inventory.",investopedia,1,43.73,11.9,0,14.16,14,9.15,13.5,12.86
Turnover Ratio,The turnover ratio or turnover rate is the percentage of a mutual fund or other portfolio's holdings that have been replaced in a given year (calendar year or whichever 12-month period represents the fund's fiscal year).,investopedia,1,34.94,17.3,0,12.14,20.8,11.56,24,19.96
Tweezer,"A tweezer is a technical analysis pattern, commonly involving two candlesticks, that can signify either a market top or bottom. Tweezer patterns are reversal patterns and occur when two or more candlesticks touch the same bottom for a tweezer bottom pattern, or when two or more candlesticks touch the same top for a tweezer top pattern.",investopedia,1,43.06,14.2,0,11.73,16.3,8.13,18.5,16.2
Twenty Eight Thirty Six Rule (28/36 Rule),"The term 28/36 rule refers to a common-sense rule used to calculate the amount of debt an individual or household should assume. According to this rule, a household should spend a maximum of 28% of its gross monthly income on total housing expenses and no more than 36% on total debt service, including housing and other debt such as car loans and credit cards. Lenders often use this rule to assess whether to extend credit to borrowers.",investopedia,1,62.31,11,12.5,9.58,13.5,10.04,15.5,13.92
Two and Twenty,"Two and twenty (or ""2 and 20"") is a fee arrangement that is standard in the hedge fund industry and is also common in venture capital and private equity. Hedge fund management companies typically charge clients both a management and a performance fee. ""Two"" means 2% of assets under management (AUM), and refers to the annual management fee charged by the hedge fund for managing assets. ""Twenty"" refers to the standard performance or incentive fee of 20% of profits made by the fund above a certain predefined benchmark. While this lucrative fee arrangement has resulted in many hedge fund managers becoming extremely wealthy, in recent years the fee structure has come under fire from investors and politicians for varying reasons.",investopedia,1,39.34,17.7,18.2,12.08,22.7,10.75,23,20.67
Two-Bin Inventory Control,"Two-bin inventory control is a system used to determine when items or materials used in production should be replenished. When items in the first bin have been depleted, an order is placed to refill or replace them. The second bin is then supposed to have enough items to last until the order for the first bin arrives. In short, the first bin has a minimum of working stock, and the second bin keeps reserve stock or remaining material.",investopedia,1,68.6,8.5,11.7,8.88,10.1,8.65,12,12.42
Two-Tailed Tests,"In statistics, a two-tailed test is a method in which the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values. It is used in null-hypothesis testing and testing for statistical significance. If the sample being tested falls into either of the critical areas, the alternative hypothesis is accepted instead of the null hypothesis.",investopedia,1,48.84,12,14.1,11.61,13.5,10.16,14.83333333,13.7
Two-Way ANOVA,ANOVA stands for analysis of variance and tests for differences in the effects of independent variables on a dependent variable. A two-way ANOVA test is a statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.,investopedia,1,41.19,12.9,0,12.94,14.2,11.31,15.25,16.97
Tying,"Tying is an often illegal arrangement where, in order to buy one product, the consumer must also purchase another product that exists in a separate market. Tying falls under the wider legal umbrella of illegal competition that was originally censured by the Sherman Antitrust Act and refined in later acts. The distinction between tying (illegal) and bundling (legal within limits) is an important one for businesses to understand. Tying is also referred to as ""product tying"" or ""tied selling.""",investopedia,1,42.92,12.2,13.4,12.3,13.3,9.62,13.125,10.96
Type II Errors,"A type II error is a statistical term used within the context of hypothesis testing that describes the error that occurs when one accepts a null hypothesis that is actually false. A type II error produces a false negative, also known as an error of omission. For example, a test for a disease may report a negative result, when the patient is, in fact, infected. This is a type II error because we accept the conclusion of the test as negative, even though it is incorrect.",investopedia,1,58.11,10.5,12.6,8.24,10.6,8.93,13.5,12.32
tZero,tZero (t0) is a distributed ledger platform and cryptocurrency launched by the Internet retail company Overstock. It was developed to give greater legitimacy and oversight to initial coin offerings (ICOs) and to allow companies to create and issue tokenized assets for investors.,investopedia,1,41.7,12.7,0,14.91,15.9,12.95,15,16.02
U-6 (Unemployment) Rate,"The U-6 (Unemployment) rate reveals the percentage of the labor force that is unemployed, underemployed, and discouraged from seeking jobs. It is considered by many economists to be the most revealing measure of a country’s unemployment situation.",investopedia,1,44.24,11.7,0,15.03,14.9,11.81,14.25,17.13
U-Shaped Recovery,"A U-shaped recovery is a type of economic recession and recovery that resembles a U shape when charted. A U-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP, and industrial output. This shape occurs when the economy experiences a sharp decline in these metrics without a clearly defined trough but instead a period of stagnation followed by a relatively healthy rise back to its previous peak. A U-shaped recovery is similar to a V-shaped recovery except that the economy spends a longer time slogging along the bottom of the recession rather than immediately rebounding.",investopedia,1,37.34,14.3,16.8,12.6,15.7,10.21,18,16.46
Uberrimae Fidei Contract,"An uberrimae fidei contract is a legal agreement, common to the insurance industry, requiring the highest standard of good faith during disclosure of all material facts that could influence the decision of the other party. A failure to adhere to uberrimae fidei is grounds for voiding the agreement. Uberrimae fidei is also known as utmost good faith and is simply the Latin translation of this phrase.",investopedia,1,49.15,11.9,14.1,11.89,13.6,10.71,14.66666667,14.25
UBS,"UBS (derived from the Union Bank of Switzerland) is a multinational diversified financial services company headquartered in Zurich and Basel. UBS is involved in virtually all major financial activities, including retail and commercial banking, investment banking, investment management, and wealth management. UBS has a major presence in the United States and has its American headquarters in New York City.",investopedia,1,34.56,13.3,16.3,16.13,16.3,10.77,15.16666667,15.34
UCLA Anderson School of Management,"UCLA Anderson School of Management is the graduate business school of the University of California at Los Angeles (UCLA). Founded in 1935 and located in Los Angeles, California, it is considered one of the most prestigious business schools in the United States.",investopedia,1,41.7,12.7,0,12.3,13.8,9.94,16,16.97
UDAAP,"UDAAP is an acronym referring to unfair, deceptive, or abusive acts or practices by those who offer financial products or services to consumers. UDAAPs are illegal, according to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.",investopedia,1,60.14,9.7,0,13.52,14,12.3,12.75,13.95
Ulcer Index (UI),"The Ulcer Index (UI) is a technical indicator that measures downside risk in terms of both the depth and duration of price declines. The index increases in value as the price moves farther away from a recent high and falls as the price rises to new highs. The indicator is usually calculated over a 14-day period, with the Ulcer Index showing the percentage drawdown a trader can expect from the high over that period.",investopedia,1,54.86,11.7,13.6,9.64,13,10.41,15.66666667,14.2
Ultimate Mortality Table,"An ultimate mortality table lists the percentage of life insurance purchasers expected to still be alive at each given age, beginning with age 0, which represents 100% of the population, up to age 120. Typically, the data is based on a population of life insurance policyholders from either a particular insurance company or group of them, rather than the entire U.S. population.",investopedia,1,0.09,28.7,0,12.78,34,11.81,23.5,31.25
Ultimate Net Loss,"Ultimate net loss is a party's total financial obligation when an insured event occurs. The insured's ultimate net loss from costs such as property damage, medical expenses and legal fees will be offset by the portion of the loss that is paid by the insurance company (usually the amount of the claim that exceeds the insured's deductible, up to the policy maximum). Thus, the insured's loss will often be limited to the policy deductible unless the total loss exceeds the policy maximum.",investopedia,1,43.77,13.9,16.3,10.97,15.6,10,19,16.29
Ultimate Oscillator,The Ultimate Oscillator is a technical indicator that was developed by Larry Williams in 1976 to measure the price momentum of an asset across multiple timeframes. By using the weighted average of three different timeframes the indicator has less volatility and fewer trade signals compared to other oscillators that rely on a single timeframe. Buy and sell signals are generated following divergences. The Ultimately Oscillator generates fewer divergence signals than other oscillators due to its multi-timeframe construction.,investopedia,1,26.51,14.4,16.5,16.3,15.8,10.54,15.125,16.03
Ultimogeniture,"Ultimogeniture, also known as postremogeniture or junior right, is a system of inheritance whereby the youngest son gains possession of his deceased father's estate. Many rural areas of medieval England used this system, as well as parts of France. It often applied to farmland, but sometimes included other types of land in addition to personal property.",investopedia,1,44.03,11.8,12.5,12.94,13.2,11.33,12,13.19
Ultra ETF,"An ultra ETF is a class of exchange-traded fund (ETF) that employs leverage in an effort to amplify the return of a set benchmark. Since first arriving on the scene in 2006, ultra ETFs have grown to include different ETFs with underlying benchmarks ranging from broad market indexes, such as the S&P 500 and Russell 2000, to specific sectors, such as technology, healthcare, and basic materials.",investopedia,1,37.98,16.2,0,11.33,18.7,12.45,21,17.44
Ultra-High Net-Worth Individual (UHNWI),Ultra-high-net-worth individuals (UHNWI) are people with investable assets of at least $30 million. They comprise the wealthiest people in the world and control a tremendous amount of global wealth.,investopedia,1,48.3,10.1,0,14.55,13.4,10.35,8.25,9.94
Ultra-Short Bond Fund,"An ultra-short bond fund is a bond fund that invests only in fixed-income instruments with very short-term maturities. An ultra-short bond fund will invest in instruments with maturities of less than one year. Because of their focus on bonds with very short durations, these portfolios offer minimal interest-rate sensitivity and therefore lower risk and total return potential. This strategy, however, tends to offer higher yields than money market instruments with fewer price fluctuations than a typical short-term fund.",investopedia,1,36.63,14.6,17.1,15.26,18.6,10.39,14.25,16.04
Ultra Vires Acts,Ultra vires acts are any acts that lie beyond the authority of a corporation to perform. Ultra vires acts fall outside the powers that are specifically listed in a corporate charter or law. This can also refer to any action that is specifically prohibited by the corporate charter.,investopedia,1,55.24,9.5,11.9,10.32,9.6,9.04,10.33333333,10.57
Ultrafast Trading,Ultrafast trading is a method of trading stocks by using computers and algorithms to execute trades within milliseconds of market changes.,investopedia,1,41.7,12.7,0,15.03,15.5,13.7,15.5,17.92
Umbrella Insurance Policy,"An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's homeowners, auto, or watercraft insurance. It provides an additional layer of security to those who are at risk of being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy.",investopedia,1,33.24,13.8,16.3,12.71,14.2,11.45,15.83333333,16.02
Umbrella Personal Liability Policy,"An umbrella personal liability policy is extra liability coverage which goes beyond the limits of the insured’s home, auto or other liability coverage. It provides an additional layer of security to those who are at risk of high loss if they injure someone else, or someone’s property. An umbrella policy provides broad coverage, meaning that some claims which would not be covered by a standard policy may have coverage under the umbrella policy.",investopedia,1,17.51,19.9,0,12.95,21.3,9.56,18.16666667,18.44
Umpire Clause,n umpire clause refers to language in an insurance policy that provides for a means of resolution by an unbiased third party if an insurer and an insured cannot agree on the amount of a claim payment. An umpire clause is the same thing as an arbitration clause. The arbitration process requires both the insurance company and the policy holder to hire an appraiser of their choosing to assess the damages and the cost to repair them. The umpire will agree with one or perhaps both of the resulting appraisals and that amount will be used to satisfy the claim.,investopedia,1,54.56,11.9,13.4,9.64,12.9,8.35,15.75,13.6
UN Principles for Responsible Investment (PRI),"The UN Principles for Responsible Investment (PRI) is an international organization that works to promote the incorporation of environmental, social, and corporate governance factors (ESG) into investment decision-making.",investopedia,1,-16.17,22.5,0,21.53,25.2,14.61,25,25.49
Unadjusted Basis,"Unadjusted basis refers to the original cost to purchase an asset. This amount includes not only the initial price the purchaser paid to acquire the asset but also includes other costs such as expenses and liabilities assumed to purchase it. Adjusted basis is a related term, and refers to any adjustments made to the original purchase price of an asset over time. Unadjusted basis is used mostly in accounting nomenclature and is akin to the concept of cost basis.",investopedia,1,51.38,11,13,10.79,11.5,8.82,12.875,12.98
Unaffiliated Investments,"Unaffiliated investments are investment holdings of an insurance company that it neither controls nor shares joint ownership with. Unaffiliated investments can include stocks, bonds, property, and other assets and are often disclosed in the financial statements of insurers.",investopedia,1,18.35,15.4,0,18.16,17.5,12.06,15,16.02
Unallocated Loss Adjustment Expenses (ULAE),"Unallocated loss adjustment expenses (ULAE) are costs incurred by an insurance company that cannot be attributed to the processing of a specific claim. They are among the expenses for which an insurer has to set aside reserve funds, in addition to allocated loss adjustment expenses and contingent commissions.",investopedia,1,30.2,15,0,14.57,16.7,10.75,20,19.6
Unamortized Bond Discount,"An unamortized bond discount is an accounting methodology for certain bonds. The unamortized bond discount is the difference between the par value of a bond—its value at maturity—and the proceeds from the sale of the bond by the issuing company, less the portion that has already been amortized (written off in gradual increments) on the profit and loss statement.",investopedia,1,41.53,14.8,0,12.89,17.8,9.38,19.75,16.55
Unamortized Bond Premium,"An unamortized bond premium refers to the difference between a bond's face value and its sale price. If a bond is sold at a discount, for instance, at 90 cents on the dollar, the issuer must still repay the full 100 cents of face value at par. Since this interest amount has not yet been paid to bondholders, it is a liability for the issuer.",investopedia,1,66.37,9.4,11.2,6.79,9.6,8.36,12.83333333,11.76
Unappropriated Retained Earnings,"Unappropriated retained earnings consist of any portion of a company's retained earnings that are not classified as appropriated retained earnings. Appropriated retained earnings are set aside by the board and are assigned to a specific purpose, such as factory construction, hiring new labor, buying new equipment, or marketing. They will not be distributed to shareholders as dividend payments. Unappropriated retained earnings can be passed on to shareholders in the form of dividend payments.",investopedia,1,35.98,12.8,14.2,15.66,15.1,9.3,12.875,12.8
Unauthorized Insurer,"The term “unauthorized insurer” refers to a fraudulent business that is posing as a legitimate insurance company. As the name suggests, unauthorized issuers are not registered with their state’s insurance regulator, and as such are not permitted to legally sell insurance products.",investopedia,1,33.24,13.8,0,15.32,16,10.32,16.5,16.02
Unbanked,"Unbanked is an informal term for adults who do not use banks or banking institutions in any capacity. Unbanked persons generally pay for things in cash or else purchase money orders or prepaid debit cards. Unbanked persons also typically do not have insurance, pensions, or any other type of professional money-related services. They may take advantage of alternative financial services, such as check-cashing and payday lending, if such services are available to them.",investopedia,1,44.44,11.6,13,13.46,13.3,10.82,12.125,13.35
Unbiased Predictor,"Expectations theory attempts to predict what short-term interest rates will be in the future based on current long-term interest rates. The theory suggests that an investor earns the same interest by investing in two consecutive one-year bond investments versus investing in one two-year bond today. The theory is also known as the ""unbiased expectations theory.""",investopedia,1,44.44,11.6,15.5,14.68,14.4,9.71,13.83333333,12.41
Unbundled Life Insurance Policy,An unbundled life insurance policy is a type of financial protection plan that provides cash to beneficiaries upon a policyholder's death. An unbundled life insurance policy contains a savings and investment component that the policyholder can use during his or her lifetime.,investopedia,1,24.78,15,0,14.62,15.3,9.94,17,17.92
Unbundling,"Unbundling is a process by which a company with several different lines of businesses retains core businesses while selling off, spinning off, or carving out assets, product lines, divisions, or subsidiaries.",investopedia,1,40.01,15.4,0,15.5,21.1,11.8,21.5,14.98
UNC Kenan-Flagler Business School,"UNC Kenan-Flagler Business School is the business school of the University of North Carolina. Founded in 1919 and located in Chapel Hill, North Carolina, the school offers both undergraduate and graduate programs.",investopedia,1,46.78,10.7,0,14.5,13.4,10.84,11.5,12.65
Unchanged,"Unchanged refers to a situation in which the price or rate of a security is the same between two periods. This can be over any time frame including a trading day, week or even as much as a year. Unchanged is a term used universally among equity, fixed-income, futures and options markets. The term also applies to indexes, exchange-traded funds and the net asset value of mutual funds.",investopedia,1,62.68,8.7,12.2,8.76,9.2,8.89,11,11.51
Unclaimed Funds,"Unclaimed funds are money and other assets whose rightful owner cannot be located. Unclaimed funds are typically turned over to the government after a specific period of time has passed. To claim the funds or assets, the designated owner or beneficiary must file a claim; if belonging to an estate, it may require the claimant to prove their rights to the unclaimed property or funds.",investopedia,1,38.49,16,0,11.44,18.1,9.86,13.83333333,17.92
Uncle Block (Cryptocurrency),"Uncle blocks are created on Ethereum-based blockchains, and they are similar to Bitcoin's orphan block.",investopedia,1,64.71,8,0,15.36,14.3,12.8,8.5,11.33
Uncle Sam,"Uncle Sam is a personified representation of either the United States federal government or the United States of America in general. In finances, Uncle Sam can also refer to the taxing authority (i.e., the Internal Revenue Service, or IRS), for instance, one may say: ""I have to pay Uncle Sam a portion of my income to pay for roads and hospitals.""",investopedia,1,40.52,15.2,0,9.35,16.1,9.29,19.75,16.13
Uncollected Funds,"Uncollected funds are the unavailable portion of a bank deposit that comes from checks that have yet to be cleared by the bank. Essentially, uncollected funds are the money that the bank needs to account for before releasing the funds to the customer.",investopedia,1,66.57,9.3,0,10.5,12.2,8.37,13.25,12.32
Uncommitted Facility,"An uncommitted facility is an agreement between a lender and a borrower where the lender agrees to make short-term funding available to the borrower. This is unlike a committed facility that involves clearly defined terms and conditions set forth by the lending institution and imposed on the borrower. Uncommitted facilities are used to finance seasonal or temporary needs of businesses with fluctuating revenues, such as paying creditors to earn trade discounts, single or one-off transactions, and meeting payroll obligations.",investopedia,1,27.86,15.9,17.1,15.55,18.6,11.34,19.16666667,17.61
Unconditional Probability,An unconditional probability is the chance that a single outcome results among several possible outcomes. The term refers to the likelihood that an event will take place irrespective of whether any other events have taken place or any other conditions are present.,investopedia,1,50.16,11.5,0,13.23,14.1,9.19,14,13.16
Unconsolidated Subsidiaries,"An unconsolidated subsidiary is a company that is owned by a parent company but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, an unconsolidated subsidiary appears in the consolidated financial statements of the parent as an investment. This usually applies when the parent company does not have a controlling stake in the subsidiary.",investopedia,1,23.05,15.7,16.3,15.09,16.2,8.48,16.66666667,13.79
Unconstrained Investing,Unconstrained investing is an investment style that does not require a fund or portfolio manager to adhere to a specific benchmark. Unconstrained investing allows managers to pursue returns across many asset classes and sectors.,investopedia,1,37.3,12.3,0,15.37,14.1,12.37,12.5,12.68
Unconventional Cash Flow,"An unconventional cash flow is a series of inward and outward cash flows over time in which there is more than one change in the cash flow direction. This contrasts with a conventional cash flow, where there is only one change in the cash flow direction.",investopedia,1,73.51,8.7,0,9,11.5,6.84,13.5,10.94
Unconventional Oil,"In the oil and gas industry, the term “unconventional oil” refers to crude oil that is obtained through methods other than traditional vertical well extraction.",investopedia,1,46.1,13,0,14.1,16.7,10.56,17.5,18
Uncovered Interest Arbitrage,"Uncovered interest arbitrage is a form of arbitrage that involves switching from a domestic currency that carries a lower interest rate to a foreign currency that offers a higher rate of interest on deposits. With uncovered interest arbitrage, there is a foreign exchange risk implicit in this transaction since the investor or speculator will need to convert the foreign currency deposit proceeds back into the domestic currency sometime in the future.",investopedia,1,18.52,19.5,0,14.34,21.7,10.07,26.75,18.71
Uncovered Interest Rate Parity (UIP),Uncovered interest rate parity (UIP) theory states that the difference in interest rates between two countries will equal the relative change in currency foreign exchange rates over the same period. It is one form of interest rate parity (IRP) used alongside covered interest rate parity.,investopedia,1,40.18,13.2,0,13.7,15.3,9.66,17.75,15.22
Uncovered Option,"In option trading, the term ""uncovered"" refers to an option that does not have an offsetting position in the underlying asset. Uncovered option positions are always written options, or in other words options where the initiating action is a sell order. This is also known as selling a naked option.",investopedia,1,54.52,9.8,11.9,10.5,10.4,9.2,10.66666667,11.48
Undated Issue,An undated issue is a government bond that has no maturity date resulting in interest payments that last into perpetuity.,investopedia,1,25.8,14.6,0,12.01,12.6,10.94,16,18
Under Reporting,Under reporting is a term describing the crime of intentionally reporting less income or revenue than was actually received. Companies and individuals chiefly under report their incomings in an effort to avoid or reduce their respective tax liabilities.,investopedia,1,26.81,14.2,0,15.37,14.8,11.23,14.5,17.07
Underapplied Overhead,The term underapplied overhead refers to a situation that arises when overhead expenses amount to more than what a company actually budgets for in order to run its operations. Underapplied overhead is normally reported as a prepaid expense on a company's balance sheet and is balanced by inputting a debit to the cost of goods sold (COGS) section by the end of the year. Costs of goods sold are the direct cost associated with the production of goods sold by a company. The amount of underapplied overhead is referred to as an unfavorable variance.,investopedia,1,47.62,12.5,14.2,10.68,13.1,9,15.5,14.08
Underbanked,"The term underbanked refers to individuals or families who have a bank account but often rely on alternative financial services such as money orders, check-cashing services, and payday loans rather than on traditional loans and credit cards to manage their finances and fund purchases. This may be because they lack access to convenient, affordable banking services or because they need or prefer to use alternatives to traditional financial services.",investopedia,1,-7.03,31.4,0,16.09,39.6,13.01,47.5,33.4
Undercapitalization,Undercapitalization occurs when a company does not have sufficient capital to conduct normal business operations and pay creditors. This can occur when the company is not generating enough cash flow or is unable to access forms of financing such as debt or equity.,investopedia,1,32.73,14,0,12.42,13.6,10.21,15.75,15.11
Undercast,"Undercast is a type of forecasting error that occurs when estimates turn out to be below realized values. These estimates could apply to sales, an expense line item, net income, cash flow, or any other financial account.",investopedia,1,52.7,10.5,0,10.62,11.2,10.1,12.25,12.81
Underconsumption,Underconsumption is the purchase of goods and services at levels that fall below the available supply.,investopedia,1,55.24,9.5,0,13.63,12.2,10.35,8,8.9
Underemployment,"Underemployment is a measure of employment and labor utilization in the economy that looks at how well the labor force is being utilized in terms of skills, experience, and availability to work. People who are classified as underemployed include those workers who are highly skilled but working in low paying or low skill jobs, and part-time workers who would prefer to be full-time. This is different from unemployment in that the person is working but not at their full capability.",investopedia,1,44.37,13.7,14.1,11.73,15.7,9.9,17,15.68
Underemployment Equilibrium,"Underemployment equilibrium is a condition where underemployment in an economy is persistently above the norm and has entered an equilibrium state. This, in turn, is a result of the unemployment rate being consistently above the natural rate of unemployment or non-accelerating inflation rate of unemployment (NAIRU) due to sustained economic weakness.",investopedia,1,20.21,16.8,0,16.54,19.2,10.16,20.25,18.83
Underfunded Pension Plan,"An underfunded pension plan is a company-sponsored retirement plan that has more liabilities than assets. In other words, the money needed to cover current and future retirements is not readily available. This means there is no assurance that future retirees will receive the pensions they were promised or that current retirees will continue to get their previously established distribution amount. An underfunded pension may be contrasted with a fully-funded or overfunded pension.",investopedia,1,36.28,12.7,14.2,15.14,14.6,9.79,12.75,13.87
Underground Economy,"The underground economy refers to economic transactions that are deemed illegal, either because the goods or services traded are unlawful in nature, or because transactions fail to comply with governmental reporting requirements. Also called the shadow economy, the black market, or the informal economy, the underground economy in the United States is comprised mainly of the sale of street drugs and illegal prostitution. However, other examples of the shadow economy exist as well.",investopedia,1,29.89,15.1,17.9,15.09,17.4,9.82,18.83333333,16.3
Underinsurance,"Underinsurance refers to an insufficient insurance policy. Although a good insurance policy won’t prevent any of life’s calamities, it should make the financial consequences easier to bear. Underinsurance, however, can leave the enrollee liable for a large financial expense if a serious event occurs. Whether it’s a home damaged by a hurricane or fire, or an insured person experiencing a serious disease or accident, insurance should ideally cover enough of the expense that the policyholder can manage the difference.",investopedia,1,34.46,13.4,16.2,14.5,14.8,10.41,15.125,14
Underinsured Motorist Coverage,"Underinsured motorist coverage is an addition to your auto insurance policy. It protects you if you're in an accident involving someone who doesn't have sufficient insurance of their own. In an accident, the insurance of the at-fault person is supposed to compensate the other injured person. If the at-fault party's policy has a limit below the cost of the damages, the injured party's underinsured motorist coverage would cover the rest.",investopedia,1,45.25,11.3,14.2,12.06,12.2,7.89,12.5,11.57
Underinsured Motorist Coverage Limits Trigger,The underinsured motorist coverage limits trigger is one of the two triggers that can be specified by an insured party to protect against losses caused by an accident with a driver who has insufficient insurance.,investopedia,1,27.49,18.1,0,12.66,20,10.79,23.5,19.71
Underinsured Motorist Endorsement,"In the insurance industry, an underinsured motorist endorsement is a type of supplemental insurance commonly purchased as part of an automobile insurance policy. Its purpose is to provide additional coverage to the policyholder in the event of an accident resulting from another driver whose policy does not cover the total costs of the accident.",investopedia,1,18.69,17.4,0,14.16,17.6,10.53,22.5,18.95
Underinvestment Problem,"The underinvestment problem is an agency problem proposed by financial economists that exists between shareholders and debt holders, in which a leveraged company foregoes valuable investment opportunities because debt holders would capture a portion of the benefits of the project, leaving insufficient returns to the equity shareholders.",investopedia,1,-1.62,25.2,0,19.28,31.3,13.02,34.5,26.46
Underlying,"Underlying, when referred to in reference to equity trading, is the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock. The price of the underlying is the main factor that determines the prices of derivative securities, warrants, and convertibles. Therefore, a change in the price of the underlying results in a simultaneous change in the price of the derivative asset linked to it.",investopedia,1,44.78,13.5,16.3,12.07,15.9,10.14,18.5,16.6
Underlying Asset,Underlying asset are the financial assets upon which a derivative’s price is based. Options are an example of a derivative. A derivative is a financial instrument with a price that is based on a different asset.,investopedia,1,50.84,9.2,12.5,10.02,7.8,8.62,7.666666667,10.36
Underlying Debt,Underlying debt is a municipal bond term that relates to an implicit understanding that the debt of smaller government entities might have backing from the creditworthiness of larger government entities in the jurisdiction.,investopedia,1,12.6,19.7,0,17.07,22.6,11.49,26.5,21.68
Underlying Mortality Assumption,Underlying mortality assumptions are projections of expected death rates used by actuaries to estimate insurance premiums and pension obligations.,investopedia,1,-7.04,19,0,21.46,19.8,14.55,19.5,28.65
Underlying Option Security,"An underlying option security is a stock, index, bond, currency, or commodity on which an option's value is based. It is the primary component of how the option gets its value. This is the reason why options are classed as derivatives. They derive their value from the performance or price action of an underlying security.",investopedia,1,49.01,9.9,12.2,9.56,8.5,9.49,8.375,11.34
Underlying Profit,"Underlying profit is a calculation made internally by a company to show what it believes is a more accurate reflection of how much money it generates. The number focuses on regular accounting cycle events and often excludes one-time charges or infrequent occurrences. Underlying profit differs from the required accounting profit that is recorded on financial statements and other mandatory documents that follow preset practices, rules, and regulations.",investopedia,1,31.92,14.3,17.1,16.54,17.4,11.34,17.16666667,17.88
Underlying Retention,Underlying retention is the net amount of risk or liability arising from an insurance policy or policies that is retained by a ceding company after reinsuring the balance amount of the risk or liability. The degree of underlying retention will vary depending on the ceding company's assessment of the risks involved in retaining part of the policy liability and the profitability of the insurance policy.,investopedia,1,21.57,18.3,0,13.65,19.7,10.35,25.75,19.77
Underlying Security,"An underlying security is a stock or bond on which derivative instruments, such as futures, ETFs, and options, are based. It is the primary component of how the derivative gets its value.",investopedia,1,39,15.8,0,10.69,17.7,11.14,11.5,20.3
Underpayment Penalty,"A tax penalty is imposed on an individual for not paying enough of their total estimated tax and withholding due. If an individual has an underpayment of estimated tax, they may be required to pay a penalty. Form 2210 is used to report the payment.",investopedia,1,56.25,9.1,11.2,7.88,7.4,7.89,8.5,9.56
Underperform,"If an investment is underperforming, it is not keeping pace with other securities. In a rising market, for example, a stock is underperforming if it is not experiencing gains equal to or greater to the advance in the S&P 500 Index. In a down market, a stock that is a falling faster than the broader market is an underperformer. ""Underperform"" is also an analyst recommendation assigned to a stock when shares are expected to do slightly worse than the market return. The designation is also known as market ""moderate sell"" or ""weak hold.""",investopedia,1,47.83,12.4,13.4,9.87,12.9,9.21,14.875,14.48
Underpricing,"Underpricing is the practice of listing an initial public offering (IPO) at a price below its real value in the stock market. When a new stock closes its first day of trading above the set IPO price, the stock is considered to have been underpriced.",investopedia,1,42.72,18.5,0,9.53,22.6,9.38,13.25,21.56
Undersubscribed,Undersubscribed is a situation in which the demand for an issue of securities such as an initial public offering (IPO) or another offering of securities is less than the number of shares issued. Undersubscribed offerings are often a matter of overpricing the securities for sale or on account of poor marketing of the securities to potential investors.,investopedia,1,25.63,16.8,0,12.83,17.4,9.21,21.25,17.01
Undertakings Collective Investment in Transferable Securities (UCITS),The Undertakings for the Collective Investment in Transferable Securities (UCITS) is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. UCITS fund providers who meet the standards are exempt from national regulation in individual European countries.,investopedia,1,23.05,15.7,17.5,17.87,18.6,12.66,17.66666667,19.08
Undervalued,"Undervalued is a financial term referring to a security or other type of investment that is selling in the market for a price presumed to be below the investment's true intrinsic value. The intrinsic value of a company is the present value of the free cash flows expected to be made by the company. An undervalued stock can be evaluated by looking at the underlying company's financial statements and analyzing its fundamentals, such as cash flow, return on assets, profit generation, and capital management to estimate the stock's intrinsic value.",investopedia,1,24.11,17.4,18.9,12.25,17.6,9.51,22.66666667,19.11
Underwater,"Underwater is the term for a financial contract or asset that is worth less than its notional value. This item could be an out-of-the-money call option where the stock currently trades above the option's strike price. More commonly though, the term is used in relation to a house, or another substantial asset, which has an outstanding mortgage or loan on the asset that is a larger amount than what the asset is worth.",investopedia,1,63.73,10.4,13.6,10.04,13.3,8.52,15.5,14.1
Underwater Mortgage,"An underwater mortgage is a home purchase loan with a higher principal than the free-market value of the home. This situation can occur when property values are falling. In an underwater mortgage, the homeowner may not have any equity available for credit. An underwater mortgage can potentially prevent a borrower from refinancing or selling the home unless they have the cash to pay the loss out of pocket.",investopedia,1,54.22,9.9,12.6,11.02,10.7,8.89,11.25,12.09
Underweight,Underweight refers to one of two situations in regard to trading and finance. An underweight portfolio does not hold a sufficient amount of a particular security when compared to the weight of that security held in the underlying benchmark portfolio. Underweight can also refer to an analyst's opinion regarding the future performance of a security in scenarios where it is expected to underperform.,investopedia,1,33.24,13.8,17.1,13.4,14.3,10.44,16.5,16.65
Underwithholding,Underwithholding is a term that refers to a specific tax situation in which an individual did not withhold an adequate amount of taxes from their wages during the year to cover the amount of taxes they owe.,investopedia,1,42.38,16.5,0,9.82,18.7,9.31,23.5,20.21
Underwriter,"An underwriter is any party that evaluates and assumes another party's risk for a fee, which often takes the form of a commission, premium, spread, or interest.",investopedia,1,44.07,13.8,0,10.51,15.4,10.82,19.5,18.21
Underwriter Syndicate,An underwriter syndicate is a temporary group of investment banks and broker-dealers who come together to sell new offerings of equity or debt securities to investors. The underwriter syndicate is formed and led by the lead underwriter for a security issue.,investopedia,1,33.75,13.6,0,13.11,13.9,10.43,16.75,16
Underwriters Laboratories (UL),"Underwriters Laboratories (UL) is a global safety science company, the largest and oldest independent testing laboratory in the United States. Underwriters Laboratories tests the latest products and technologies for safety before they are marketed around the world. It tests over 19,000 different products annually, ranging from consumer electronics, alarms and security equipment, to lasers, medical devices, and robotics.",investopedia,1,18.05,15.5,15.9,18.1,18,12.22,14.66666667,15.31
Underwriting,"Underwriting is the process through which an individual or institution takes on financial risk for a fee. This risk most typically involves loans, insurance, or investments. The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium.",investopedia,1,44.44,11.6,14.6,13.29,13.1,10.29,13.16666667,15.32
Underwriting Agreements,An underwriting agreement is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new securities issue.,investopedia,1,26.14,16.6,0,13.7,17.6,10.66,21,19.77
Underwriting Capacity,Underwriting capacity is the maximum amount of liability that an insurance company agrees to assume from its underwriting activities. Underwriting capacity represents an insurer’s ability to retain risk. It's important for an insurance company to calculate and maintain its underwriting capacity so it will be able to pay out claims to customers when needed so as to avoid insolvency.,investopedia,1,26.1,14.5,17.9,14.45,14.5,9.97,16.5,15.34
Underwriting Cycle,"The underwriting cycle refers to fluctuations in the insurance business over a period of time. A typical underwriting cycle spans a number of years, as market conditions for the underwriting business go from boom to bust and back to boom again. An underwriting cycle is also known as an ""insurance cycle.""",investopedia,1,54.22,9.9,13.6,10.84,10.7,7.89,11.83333333,11.51
Underwriting Expenses,"Underwriting expenses are costs and expenditures associated with underwriting activity. Underwriting expenses include a wide range of expenditures, and the exact definition differs for insurers and investment banks. As a major expense category, the lower these expenditures are as a proportion of underwriting activity, the higher the profitability of the insurer or investment bank.",investopedia,1,10.91,16.2,17.9,17.22,16.3,10.38,15.66666667,16.09
Underwriting Fees,"Underwriting fees are monies collected by underwriters for performing underwriting services. Underwriters work in a variety of markets including investments, mortgages, and insurance. In each situation, the underwriter's job varies slightly, yet each collects underwriting fees in exchange for his or her underwriting services.",investopedia,1,22.71,13.7,15.5,18.49,16.3,10.83,12,14.97
Underwriting Group,An underwriting group is a temporary association of investment bankers and broker-dealers who wish to purchase a new issue of securities from an issuer in order to distribute the issue to investors at a profit. The underwriting group shares the risk and aids in the successful distribution of the new securities issue once the issuance goes public.,investopedia,1,34.09,15.6,0,12.42,16.9,10.59,19.75,17.01
Underwriting Income,"Underwriting income is the profit generated by an insurer's underwriting activity over a period of time. Underwriting income is the difference between premiums collected on insurance policies by the insurer and expenses incurred and claims paid out. Huge claims and disproportionate expenses may result in an underwriting loss, rather than income, for the insurer. The level of underwriting income is an accurate measure of the efficiency of an insurer's underwriting activities.",investopedia,1,19.57,15,16.8,15.25,14.6,8.74,14.625,15.01
Underwriting Risk,"Underwriting risk is the risk of loss borne by an underwriter. In insurance, underwriting risk may arise from an inaccurate assessment of the risks associated with writing an insurance policy or from uncontrollable factors. As a result, the insurer's costs may significantly exceed earned premiums.",investopedia,1,30.87,12.7,15,14.09,12.6,11.05,11.83333333,15.78
Underwriting Spread,"An underwriting spread is the difference between the dollar amount that underwriters, such as investment banks, pay an issuing company for its securities and the dollar amount that underwriters receive from selling the securities in the public offering. The underwriting spread is essentially the investment bank's gross profit margin, typically disclosed as a percentage or else in points-per-unit-of-sale.",investopedia,1,-4.32,28.3,0,18,36.3,11.69,22.5,29.41
Underwriting Standards,"Underwriting standards are guidelines established to ensure that safe and secure loans are issued and maintained. The underwriting standards in place help to set benchmarks for how much debt may be issued to a person, the terms of the loans, how much debt a specific company is willing to issue, and what interest rates will be charged.",investopedia,1,51.01,13.2,0,10.97,15.9,9.76,17.25,14.21
Undisclosed Reserves Definition,"Undisclosed reserves include unpublished or ""hidden"" reserves that may not appear on public documents—such as on the balance sheet—but are nonetheless real assets and are considered as such by most banking institutions.",investopedia,1,30.54,17,0,16.84,22.3,10.65,21,19.05
What Is an Undivided Account?,"An undivided account is an initial public offering (IPO) for which there are multiple underwriters, each taking responsibility for placing any shares that remain unsold. That is, each firm agrees to pick up the slack if other underwriters fail to sell the portion of the total number of shares that they have been allocated.",investopedia,1,44.07,13.8,0,11.49,15.7,9.65,17,15.24
Undivided Profit,"Undivided profits refer to gains from current and past years that have not been transferred to a surplus account or distributed as dividends to shareholders. Often times, financial gains or budget surpluses are set aside in a separate account designated as a surplus account, are earmarked for distribution as dividends, or assigned to another purpose such as funding a project.",investopedia,1,32.57,16.2,0,13.65,18.6,10.91,20.5,17.33
Undue Influence,"Undue influence occurs when an individual is able to persuade another's decisions due to the relationship between the two parties. Often, one of the parties is in a position of power over the other due to elevated status, higher education, or emotional ties. The more powerful individual uses this advantage to coerce the other individual into making decisions that might not be in their long-term best interest.",investopedia,1,31.92,14.3,15.9,12.25,14,9.46,16.16666667,15.49
Unearned Discount,"An unearned discount is interest or a fee that has been collected on a loan by a lending institution but has not yet been counted as income (or earnings). Instead, it is initially recorded as a liability. As the life of the loan progresses, proportionate parts of the fee or interest collected up front are removed from the liability side of the balance sheet and counted as income. If the loan is paid off early, the unearned interest portion must be returned to the borrower.",investopedia,1,51.21,13.1,14.6,9.41,14.7,8.76,13.625,15.08
Unearned Income,"Unearned income is income from investments and other sources unrelated to employment. Examples of unearned income include interest from savings accounts, bond interest, alimony, and dividends from stock.  Unearned income, known as a passive source of income, is income not acquired through work.",investopedia,1,40.69,13.1,0,15.66,17.2,10.11,15,15.16
Unearned Interest,"Unearned interest is interest that has been collected on a loan by a lending institution but has not yet been recognized as income (or earnings). Instead, it is initially recorded as a liability. If the loan is paid off early, the unearned interest portion must be returned to the borrower.",investopedia,1,54.52,9.8,13,9.57,9.6,8.57,11.33333333,12.28
Unearned Premium,"An unearned premium is the premium amount that corresponds to the time period remaining on an insurance policy. In other words, it is the portion of the policy premium that has not yet been ""earned"" by the insurance company because the policy still has some time before it expires.",investopedia,1,46.61,12.8,0,9.99,13.2,8.4,18.25,14.7
Unearned Revenue,"Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a ""prepayment"" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.",investopedia,1,48.33,12.2,13.8,8.36,11,8.58,14.875,12.64
Uneconomic Growth,"Uneconomic growth is growth that produces negative externalities which reduce the overall quality of life. This is also known as unsustainable growth, where the negative social and environmental consequences outweigh the short-term value of an extra unit of growth, making it uneconomic.",investopedia,1,33.24,13.8,0,16.01,16.7,9.94,15,15.07
Unemployment Claim,"An unemployment claim is a request for cash benefits after getting laid off from a job. An individual makes an unemployment claim to the government of the state in which they worked to receive temporary payments after losing a job through no fault of their own. An unemployment claim is also known as an ""unemployment insurance claim"" or an ""unemployment compensation claim.""",investopedia,1,50.46,11.4,14.1,11.55,12.8,7.72,14,12.15
Unemployment Compensation,"Unemployment compensation is paid by the state to unemployed workers who have lost their jobs due to layoffs or retrenchment. It is meant to provide a source of income for jobless workers until they can find employment. In order to be eligible for it, certain criteria must be satisfied, such as having worked for a minimum stipulated period and actively looking for employment.",investopedia,1,41.7,12.7,15,11.43,12.8,9.69,14.83333333,16.02
Unemployment Compensation Amendments of 1992,"The Unemployment Compensation Amendments of 1992 are a law in the United States that allows an employee who loses their job to roll over their employer-sponsored retirement savings into a qualified retirement plan, such as an IRA, without tax consequences. The provision allowing former employees to do this was included among other amendments to the Emergency Unemployment Compensation Act of 1991, which at the time extended emergency unemployment benefits.",investopedia,1,19.54,19.1,0,15.68,22.5,10.38,26.75,21.92
Unemployment Income,The term unemployment income refers to an insurance benefit paid as a result of a taxpayer's inability to find gainful employment. Unemployment income is paid from either a federal or state-sponsored fund. The recipient must meet certain criteria in trying to find a job. Employers and employees are assessed a payroll tax to cover the cost of this benefit.,investopedia,1,43.02,12.2,15.5,11.6,12.3,9.7,10.875,15.34
Unemployment Insurance (UI),"Unemployment insurance (UI), also called unemployment benefits, is a type of state-provided insurance that pays money to individuals on a weekly basis when they lose their job and meet certain eligibility requirements. Those who either quit their jobs or were fired for a just cause are not eligible for UI. In other words, someone separated from their job due to a lack of available work and at no fault of their own usually qualifies for unemployment benefits.",investopedia,1,45.39,13.3,15.9,11.44,15,9.42,17.83333333,15.99
Unemployment Rate,"The unemployment rate is the percent of the labor force that is jobless. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is in poor shape and jobs are scarce, the unemployment rate can be expected to rise. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall.",investopedia,1,60.85,9.4,13.4,9.4,10.1,9.2,12.625,12.85
Unencumbered,"Unencumbered refers to an asset or property that is free and clear of any encumbrances, such as creditor claims or liens. An unencumbered asset is much easier to sell or transfer than one with an encumbrance. Examples of common unencumbered assets are houses free from mortgages and other liens, cars with paid off loans/notes, or stocks purchased in a cash account.",investopedia,1,59.33,10,13,11.26,12.4,10.08,13.16666667,12.71
Unfair Claims Practice,"Unfair claims practice is the improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims practices, an insurer tries to reduce its costs. However, this is illegal in many jurisdictions.",investopedia,1,65.42,7.7,11.9,9.1,8.2,9.49,8.5,10.37
Unfair Trade Practice,"Unfair trade practices refer to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentation, false advertising or representation of a good or service, tied selling, false free prize or gift offers, deceptive pricing, and noncompliance with manufacturing standards. Such acts are considered unlawful by statute through the Consumer Protection Law, which opens up recourse for consumers by way of compensatory or punitive damages. An unfair trade practice is sometimes referred to as “deceptive trade practices” or “unfair business practices.”",investopedia,1,32.43,14.2,14.2,17.23,18.1,10.53,14.625,14.7
Unfavorable Variance,"Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected. The sooner an unfavorable variance is detected, the sooner attention can be directed towards fixing any problems.",investopedia,1,37,12.4,14.6,15.08,14.2,10.57,12.66666667,13.84
Unfunded Pension Plan,An unfunded pension plan is an employer-managed retirement plan that uses the employer's current income to fund pension payments as they become necessary. This is in contrast to an advance funded pension plan where an employer sets aside funds systematically and in advance to cover any pension plan expenses such as payments to retirees and their beneficiaries.,investopedia,1,34.09,15.6,0,13.76,18.1,10.59,18.75,17.01
Unicameral System,"A unicameral system is a government with one legislative house or chamber. Unicameral is the Latin word that describes a single-house legislative system. Countries with unicameral governments include Armenia, Bulgaria, Denmark, Hungary, Monaco, Ukraine, Serbia, Turkey, and Sweden. Unicameral systems became more popular during the 20th century and some countries, including Greece, New Zealand, and Peru, switched from a bicameral to a unicameral system.",investopedia,1,29.86,13.1,14.6,16.41,15.4,11.09,12,12.03
Unicorn,"Unicorn is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion. The term was first popularized by venture capitalist Aileen Lee, founder of CowboyVC, a seed-stage venture capital fund based in Palo Alto, California.",investopedia,1,39.16,13.6,0,11.49,14.2,10.85,15.75,13.66
Unified Managed Account (UMA),"A unified managed account (UMA) is a professionally managed private investment account that can include multiple types of investments all in a single account. Investments may include mutual funds, stocks, bonds, and exchange-traded funds. Unified managed accounts are often rebalanced on a specified schedule.",investopedia,1,31.17,12.6,13,16.12,14.5,11.18,10.33333333,12.24
Unified Managed Household Account (UMHA),"A unified managed household account (UMHA) is a privately managed account that consolidates multiple unaffiliated products including mutual funds, ETFs, and individual securities. The account allows immediate family members, such as parents and children, to access the account. This type of account allows for ease of administration for the financial institution and greater transparency for the investing family.",investopedia,1,18.05,15.5,16.3,17.4,17.2,12.22,15,17.38
Unified Payment Interface (UPI),A Unified Payment Interface (UPI) is a smartphone application that allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction.,investopedia,1,36.59,12.6,14.1,14.15,13.9,11.37,12.5,14.63
Unified Tax Credit,"A unified tax credit is a certain amount of assets that each person is allowed to gift to other parties without having to pay gift, estate, or generation-skipping transfer taxes. The credit is afforded to every man, woman, and child in America by the Internal Revenue Service (IRS).",investopedia,1,47.12,12.7,0,10.33,13.6,9.43,14,12.1
Uniform Bank Performance Report (UBPR),"The Uniform Bank Performance Report (UBPR) is an analytical tool created by the Federal Financial Institutions Examination Council (FFIEC) to help supervise and examine financial institutions. The UBPR serves as an analysis of the impact that management and economic conditions can have on a bank's balance sheet. It examines liquidity, adequacy of capital and earnings, and other factors that could damage the stability of the bank.",investopedia,1,23.77,15.4,17.9,14.16,15.9,10.95,17.66666667,19.1
Uniform Bill of Lading,"A uniform bill of lading is an agreement between an exporter and a carrier regarding property to be transported. The uniform bill of lading provides basic information about the shipment such as the shipper and recipient's names and the shipment's origin and destination. In addition, the document establishes the terms of the carrier's liability, transport time frame, how to file a claim for a lost or damaged shipment, how insurance will be applied in the event of a claim and how the shipment may be stored or disposed of if the shipment is refused or is not deliverable.",investopedia,1,46.74,14.9,15.5,11.15,18,10.58,21,18.79
Uniform Commercial Code (UCC),The Uniform Commercial Code (UCC) is a standardized set of laws and regulations for transacting business. Then UCC code was established because it was becoming increasingly difficult for companies to transact business across state lines given the various state laws.,investopedia,1,42.72,12.3,0,15.08,15.3,10.16,15,17
Uniform Consumer Credit Code (UCCC),The Uniform Consumer Credit Code (UCCC) is a code of conduct that governs consumer credit transactions. It provides guidelines for laws related to the purchase and use of all types of credit products from mortgages to credit cards. It is intended to protect consumers who use credit from fraud and misinformation.,investopedia,1,62.68,8.7,9.7,11.77,11.4,10.67,8.833333333,9.94
Uniform Distribution,"In statistics, uniform distribution refers to a type of probability distribution in which all outcomes are equally likely. A deck of cards has within it uniform distributions because the likelihood of drawing a heart, a club, a diamond, or a spade is equally likely. A coin also has a uniform distribution because the probability of getting either heads or tails in a coin toss is the same.",investopedia,1,48.84,12,13,10.62,12.7,7.81,14.16666667,11.91
Uniform Gifts to Minors Ac (UGMA),"The Uniform Gifts to Minors Act (UGMA), developed in 1956 and revised in 1966, allows individuals to give or transfer assets to underage beneficiaries—traditionally, parents and their children, respectively. The amount is free of gift tax, up to a certain amount. The assets are usually placed in UGMA accounts on behalf of minors, eliminating the need for an attorney to establish a special trust fund. UGMA funds are also subject to special tax treatment.",investopedia,1,44.24,11.7,11.7,11.89,12.3,10.32,11.5,12.81
Uniform Individual Accident and Sickness Policy Provisions Act,A Uniform Individual Accident and Sickness Policy Provisions Act is legislation that every U.S. state has passed into law in some form. It stipulates that individual health insurance policies must contain certain provisions in order to be valid.,investopedia,1,35.27,13.1,0,14.45,14.4,9.57,14,13.92
Uniform Partnership Act (UPA),The Uniform Partnership Act (UPA) provides governance for business partnerships in several U.S. states. The UPA also offers regulations governing the dissolution of a partnership when a partner dissociates.,investopedia,1,16.66,18.1,0,17.94,22.1,11.61,11.75,21.26
"Uniform Policy Provisions, Health Insurance","Uniform policy provisions refer to a set of clauses, some mandatory and some optional, that insurance companies include in written insurance policies. Each state has a uniform individual accident and sickness policy provisions law which dictates precisely the provisions that must appear in an insurance policy. In general, the state requires 12 mandatory provisions and gives the insurance company discretion to include any of 11 optional provisions when writing a policy.",investopedia,1,22.04,16.1,19.3,15.44,17.2,8.82,19.83333333,14.55
Uniform Premarital Agreement Act,"Adopted by 26 states, the Uniform Premarital and Marital Agreements Act—drafted by the National Conference of Commissioners on Uniform State Laws in 1983—helped bring consistency to contracts signed by two parties entering a marriage. The act allows the parties to a prenuptial agreement to choose which state's statutes for marital law will cover the agreement.",investopedia,1,35.1,15.2,0,15.38,18.9,11.32,18.75,16.09
Uniform Prudent Investor Act (UPIA),"The Uniform Prudent Investor Act (UPIA) is a standard that sets out guidelines for trustees to follow when investing trust assets on behalf of a trustor. It also applies to financial professionals who make recommendations or place trades on behalf of clients. It is an update to the former ""Prudent Man"" standard intended to reflect the changes that have occurred in investment practice since the late 1960s.",investopedia,1,57.3,10.8,11.2,12.02,13.8,10.87,13.16666667,12.5
Uniform Rules for Demand Guarantees (URDG),The Uniform Rules for Demand Guarantees (URDG) refers to a set of international guidelines produced by the International Chamber of Commerce (ICC) and adopted in 1991. These guidelines set forth generally agreed-upon rules governing securing payments and meeting performance guarantees in contracts among global trading partners.,investopedia,1,7.87,23.6,0,18.81,30.9,13.81,31,23.62
Uniform Securities Act,The Uniform Securities Act is a model law created as a starting point for state-level securities regulation. The purpose of the Uniform Securities Act is to deal with securities fraud at the state level and to assist the Securities and Exchange Commission (SEC) in enforcement and regulation.,investopedia,1,30.7,14.8,0,12.77,15,8.5,16.75,13.66
Uniform Simultaneous Death Act,"The term Uniform Simultaneous Death Act refers to a law used in some states to determine inheritance in cases where two or more people die around the same time. According to the act, the assets of two or more people who have no will and die within a 120-hour period can be passed down to their relatives rather than from one estate to another. This act is used to avoid double administrative costs.",investopedia,1,63.73,10.4,12.5,8.65,11.9,8.3,14.83333333,13.56
Uniform Transfer Tax,Uniform transfer tax is the combination of federal estate taxes and federal gift taxes into a single tax.,investopedia,1,36.28,12.7,0,10.44,10.6,8.92,12,11.64
Uniform Transfers to Minors Act (UTMA),"The Uniform Transfers to Minors Act (UTMA) allows a minor to receive gifts—such as money, patents, royalties, real estate, and fine art—without the aid of a guardian or trustee. A UTMA account allows the gift giver or an appointed custodian to manage the minor's account until the latter is of age. UTMA also shields the minor from tax consequences on the gifts, up to a specified value.",investopedia,1,48.84,12,11.2,10.04,12.4,9.46,13.16666667,11.91
Unilateral Contracts,"A unilateral contract is a contract agreement in which an offeror promises to pay after the occurrence of a specified act. In general, unilateral contracts are most often used when an offeror has an open request in which they are willing to pay for a specified act.",investopedia,1,47.62,12.5,0,9.7,12.3,7.83,15.75,12.8
Unilateral Transfer,"A unilateral transfer is a one-way transfer of money, goods, or services from one party to another. It is often used to describe payments made by a government to their citizens, or from one country to another country in the form of foreign aid. In these cases, the supplier of funds receives nothing in return from the recipient. A unilateral transfer differs from a bilateral transfer, such as bilateral trade, which involves reciprocal economic benefit for both parties to a transaction.",investopedia,1,42.41,12.4,13.8,11.2,12.5,8.35,13.625,12.56
Uninsurable Peril,"Uninsurable peril are events for which insurance coverage is not available or for which insurers are unlikely to underwrite policies. An uninsurable peril is typically an event that has a high risk of occurrence, meaning the probability of a payout is high and expected. Perils that insurers are unwilling to cover are often catastrophic in nature.",investopedia,1,35.57,12.9,15.5,12.65,12.5,10.49,14,15.34
Uninsurable Property,"Uninsurable property is a home that is not eligible for insurance through the Federal Housing Administration (FHA) because it is in need of extensive repairs. An uninsurable property is typically ineligible for a mortgage through the FHA; however, in certain cases, the individual purchasing the home may qualify for alternative FHA financing options.",investopedia,1,10.74,18.3,0,15.32,18.7,10.91,22.25,21.17
Uninsurable Risk,"Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss or a situation in which the insurance would be against the law. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss. Many states offer insurance for otherwise uninsurable risks through their ""high-risk pools."" However, lifetime benefits may be capped, and premiums may be expensive.",investopedia,1,48.13,12.3,15.9,12.54,14.7,9.13,12.375,15
Uninsured Certificate of Deposit,"An uninsured certificate of deposit is a certificate of deposit (CD) which is not insured against losses. Due to the lack of insurance, these CDs yield a higher interest rate, as the purchaser assumes all of the risk. In the event that the financial institution or entity that issued the CD goes bankrupt, the purchaser loses the investment.",investopedia,1,60.35,9.6,13.6,10.33,11.3,10.58,13,13.24
Uninsured Motorist Coverage (UM),"Uninsured motorist (UM) coverage is a component of an auto insurance policy that provides coverage when the policyholder is in an accident with someone who does not have insurance. It is an add-on to a standard auto policy and pays for injuries to the policyholder and passengers, and in some instances for damage to property, if the other driver is legally responsible for the accident but uninsured. In some states, it is required that auto insurance policies include uninsured motorist coverage.",investopedia,1,35.61,15,16.3,12.83,16.8,8.87,18.83333333,14.75
Unintentional Tort,"An unintentional tort is a type of unintended accident that leads to injury, property damage, or financial loss. In the event of an unintentional tort, the person who caused the accident did so inadvertently and typically because they were not being careful. The person who caused the accident is considered negligent because they failed to exercise the same degree of care that a reasonable person would have in the same situation.",investopedia,1,38.96,13.7,15.9,12.07,14.4,9.04,16.83333333,15.68
Unique Three River,"The unique three river is a candlestick chart pattern that predicts a bullish reversal, although there is some evidence that it could act as a bearish continuation pattern. The unique three river pattern is composed of three price candles. If the price moves higher after the pattern, then it is considered a bullish reversal. If the price moves lower after the pattern, then it is a bearish continuation pattern.",investopedia,1,62.38,8.9,10.7,10.84,10.7,7.93,10.375,9.24
Unit Benefit Formula,"The unit benefit formula is a method of calculating an employer's contribution to an employee's defined benefit plan or pension plan based on years of service. Although a retirement plan that uses a unit benefit formula can reward employees for remaining at the company longer, it can also be more costly to implement for the employer.",investopedia,1,34.6,15.4,0,11.49,16.1,10.95,21.5,19.06
Unit Cost,"A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with cost of goods sold (COGS).",investopedia,1,71.14,7.6,0,7.65,8.4,9.12,10.5,10.33
Unit Investment Trust (UIT),"A unit investment trust (UIT) is an investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time. It is designed to provide capital appreciation and/or dividend income. Unit investment trusts, along with mutual funds and closed-end funds, are defined as investment companies.",investopedia,1,44.44,11.6,15.5,13.63,13.8,11.43,13.83333333,13.87
Unit Linked Insurance Plan (ULIP),"A unit linked insurance plan (ULIP) is a multi-faceted product issued by insurance companies that combine insurance coverage and investment exposure in a single offering. This product requires policyholders to make regular premium payments, part of which are utilized to provide insurance coverage, while the remaining portions are pooled with assets from other policyholders, then invested in equity and debt instruments, much like mutual funds.",investopedia,1,13.11,19.5,0,16.6,22.5,12.78,26.25,21.62
Unit of Production,"The unit of production method is a method of calculating the depreciation of the value of an asset over time. It becomes useful when an asset's value is more closely related to the number of units it produces rather than the number of years it is in use. This method often results in greater deductions being taken for depreciation in years when the asset is heavily used, which can then offset periods when the equipment experiences less use.",investopedia,1,53.55,12.3,13,9.99,13.8,9.18,16,14.5
Unit Sales,The unit sales number on a balance sheet represents the total sales of a product in a given period. This sales information is used to determine the price point that allows for the greatest profit per unit considering the actual cost of production.,investopedia,1,49.65,11.7,0,10.1,11.8,10.58,14.25,15.11
Unit Trust (UT),"A unit trust is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual unit owners instead of reinvesting them back into the fund. Mutual funds are investments that are made up of pooled money from investors, which hold various securities, such as bonds and equities. However, a unit trust differs from a mutual fund in that a unit trust is established under a trust deed, and the investor is effectively the beneficiary of the trust.",investopedia,1,42.75,14.3,15.5,11.2,16,9.68,18.83333333,16.5
Unitary Thrift,"A unitary thrift is a chartered holding company that controls a single thrift entity. Historically unitary thrifts could engage in a broader range of activities than bank holding companies, however, they have come under increasing restrictions since the 2008 financial crisis.",investopedia,1,33.75,13.6,0,15.66,16,11.59,14.75,15.03
United Nations (UN),"The United Nations, commonly referred to by its initial: UN, is an international nonprofit organization formed in 1945 to increase political and economic cooperation among its member countries.",investopedia,1,9.22,18.9,0,16.6,20.5,13.48,21,21.2
United Nations Commission on International Trade Law (UNCITRAL),"The United Nations Commission on International Trade Law (UNCITRAL) was established as a subsidiary body of the U.N. General Assembly (UNGA) in 1966. It is the core legal body of the U.N,'s system in the field of international trade law. The official function of the UNCITRAL is the modernization and harmonization of rules on international business. The organization is responsible for helping to facilitate international trade and investment.",investopedia,1,40.75,11,13,13.33,11.6,10.12,8.8,11.91
United Nations Global Compact,"The United Nations Global Compact is a strategic initiative that supports global companies that are committed to responsible business practices in the areas of human rights, labor, the environment, and corruption. This UN-led initiative promotes activities that contribute to sustainable development goals to create a better world.",investopedia,1,22.24,16,0,17.93,19.3,12.87,17.25,17.91
United States Agency for International Development (USAID),"The term United States Agency for International Development (USAID) refers to an international development agency run by the United States government. The organization provides international development and humanitarian assistance in a number of areas to developing nations while promoting American interests, U.S. national security, and economic prosperity abroad.  USAID was established in 1961 and works in more than 100 countries.",investopedia,1,-1.79,21.1,0,18.58,23.2,11.88,24.75,20.72
United States Aircraft Insurance Group (USAIG),"United States Aircraft Insurance Group (USAIG) is the nation's first aviation insurance company, founded in 1928 by World War I flying ace Reed McKinley Chambers and pilot David C. Beebe. The United States Aircraft Insurance Group was founded when Chambers realized a need for aviation insurance after the airline company that he had formed, Florida Airways, faced bankruptcy when four airplanes were lost to storms and one accident in 1926. Florida Airways had earned the first private air mail contract awarded by the United States government.",investopedia,1,42.34,14.5,15.5,13.65,18.1,10.57,19,13.81
United States Department of Agriculture (USDA),"The United States Department of Agriculture (USDA) is the federal agency that proposes programs and implements policies and regulations related to American farming, forestry, ranching, food quality, and nutrition.",investopedia,1,8.2,19.3,0,18.92,23.1,13.24,24.5,24.01
United States Government Life Insurance (USGLI),"United States Government Life Insurance (USGLI) is a type of life insurance that was offered by the United States government between 1919 and 1951. This measure, which was originally intended to support veterans who served during World War I, formed part of a broader set of policies known as the War Risk Insurance program.",investopedia,1,52.53,12.6,0,11.67,15.9,9.65,17.5,13.76
United States Natural Gas Fund (UNG),"The United States Natural Gas Fund (UNG) is an exchange traded fund (ETF) with the stated goal of following the movement of natural gas prices. It is the largest natural gas ETF with shares available on the NYSE Arca. The fund provides access to investing in natural gas without having to invest in the futures market, which is a complicated and risky route for the regular investor.",investopedia,1,57.3,10.8,12.5,9.75,12,9.93,13.83333333,11.31
United States Treasury (UST),"UST is the abbreviation for the United States Treasury, the federal government division that manages U.S. finances. UST is commonly used to reference debt that is issued by the United States.",investopedia,1,55.74,9.3,0,11.6,10.8,11.03,10.75,12.65
United States Treasury Money Mutual Funds,"A United States Treasury money mutual fund is a mutual fund that pools money from investors to purchase low-risk government securities. A United States Treasury money mutual fund is a type of mutual fund that invests primarily or exclusively in U.S. government debt, such as Treasury bills and repurchase agreements. U.S. Treasury money mutual funds are a leading investment for investors seeking to preserve principal or invest cash temporarily.",investopedia,1,39.67,13.4,15.5,14.05,15.9,10.73,16.16666667,13.84
United States V. The South-Eastern Underwriter Association,"The term United States v. The South-Eastern Underwriters Association refers to a landmark U.S. Supreme Court case involving the federal antitrust statute and the insurance industry. The case was decided on June 5, 1944. The Supreme Court ruled that the industry is subject to regulation by the United States Congress, under the Commerce Clause. This means that the court determined insurance to be a business that crosses state lines and is, therefore, subject to antitrust laws. Congress passed a law a year later exempting the insurance industry from federal scrutiny.",investopedia,1,53.21,10.3,13.3,12.99,13.1,9.97,12.2,12.09
Unitholder,"A unitholder is an investor who owns one or more units in an investment trust or master limited partnership (MLP). A unit is equivalent to a share, or piece of interest. Unitholders are afforded specific rights that are outlined in the trust declaration, which governs the trust's actions.",investopedia,1,63.7,8.4,12.5,10.73,10.3,11.01,10.66666667,13.07
Unitized Endowment Pool (UEP),A Unitized Endowment Pool (UEP) is a form of endowment investing that allows multiple endowments to invest in the same pool of assets.,investopedia,1,48.13,12.3,0,10.51,13,10.96,16.5,16.16
Unitized Fund,"A unitized fund is a type of investment fund structure that uses pooled money to invest with individually reported unit values for investors. Assets in the pool are managed to a specific objective, often with concentration in one stock. Investors are provided with a daily unitized value for their portion of the investment.",investopedia,1,53.51,10.2,12.5,11.95,11.8,10.47,11.5,12.36
Unitranche Debt,"Unitranche debt or financing represents a hybrid loan structure that combines senior debt and subordinated debt into one loan, allowing banks to compete better against private debt funds. The borrower of this kind of debt typically pays an interest rate that falls in between the interest rates that each type of loan would command individually.",investopedia,1,43.56,14,0,13.41,17.2,11.6,18.25,16.82
Units Per Transaction (UPT),"Units per transaction (UPT) is a sales metric often used in the retail sales sector to measure the average number of items that customers are purchasing in any given transaction. The higher the UPT, the more items customers are purchasing for every visit.",investopedia,1,58.11,10.5,0,11.02,12.9,9.48,13.25,11.39
Unisex Legislation Definition,"In the insurance industry, the term “unisex legislation” refers to laws and legal decisions that made it illegal for insurance companies to charge different rates to men and women within certain types of insurance. The term is mainly used in relation to the group insurance policies which companies offer to their employees.",investopedia,1,36.63,14.6,0,13.12,16.3,10.09,20,16.55
Unissued Stock,"Unissued stock are company shares that do not circulate, nor have they been put up for sale to either employees or the general public. As such, companies do not print stock certificates for unissued shares. Unissued shares are normally held in a company's treasury. Their number typically has no bearing on shareholders.",investopedia,1,58.28,8.4,12.2,11.06,9.4,7.93,8,11.35
Universal Banking,"Universal banking is a system in which banks provide a wide variety of comprehensive financial services, including those tailored to retail, commercial, and investment services. Universal banking is common in some European countries, including Switzerland.",investopedia,1,28.33,13.7,0,18.21,17.2,12.63,13.75,16.14
Universal Default,"The term “universal default” refers to a provision found in some credit cards’ cardholder agreements. According to this provision, the credit card company is permitted to increase the interest rate on the credit card if the cardholder fails to make their minimum monthly payment.",investopedia,1,40.69,13.1,0,13.46,14.8,10.11,16,15.16
Universal Healthcare Coverage,"Universal healthcare coverage refers to systems in which all residents of a particular geographical area or country have health insurance. An early example of universal healthcare coverage is Germany in the 1880s, when Chancellor Otto von Bismarck introduced a series of bills guaranteeing access to healthcare. Today, most industrialized nations—including France, Switzerland, and the United Kingdom, but not the United States—provide universal healthcare coverage for their citizens.",investopedia,1,12.09,19.9,0,19.04,24.9,12.13,25.75,21.76
Universal Life Insurance,"Universal life (UL) insurance is permanent life insurance with an investment savings element and low premiums that are similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums).",investopedia,1,29.86,13.1,16.3,15.43,14.5,9.69,13.33333333,13.9
Universal Market Integrity Rules (UMIR),"Universal Market Integrity Rules (UMIR) are a set of rules governing trading practices in Canada. These rules are set out by an independent regulator, the Investment Industry Regulatory Organization of Canada (IIROC). UMIR were established to promote fair, equitable, and efficient markets. Prior to the formation of the UMIR, each individual exchange was responsible for governing its trading practices. By making these practices universal, Canadian exchanges ensure equal fairness and improve investor confidence in all the exchanges.",investopedia,1,34.97,13.2,15.6,16.53,16.5,10.75,11.5,16.55
Universe of Securities,"A universe of securities generally refers to a set of securities that share a common feature. Security universes can be used for different purposes. Institutionally, investment managers typically specify a universe of securities that defines some of the investing parameters for a managed fund. Broadly, investors may choose to allocate different portions of their personal portfolio based on various security universes with different risk-reward characteristics.",investopedia,1,12.63,15.5,16.8,17.4,15.6,11.49,13.875,16.37
University of Miami School of Business Administration,"The University of Miami Patti and Allan Herbert Business School—often referred to simply as the “Miami Herbert Business School”—is a business school located at the University of Miami in Coral Gables, Florida.",investopedia,1,22.08,18.1,0,15.21,20.8,10.65,23,17.8
Unlawful Loan,An unlawful loan is a loan that fails to comply with—or contravenes—any provision of prevailing lending laws. Examples of unlawful loans include loans or credit accounts with excessively high interest rates or that exceed the legal size limits that a lender is permitted to extend.,investopedia,1,40.18,13.2,0,13.29,14.6,12.47,15.75,16.11
Unlevered Beta,"Beta is a measure of market risk. Unlevered beta (or asset beta) measures the market risk of the company without the impact of debt. 'Unlevering' a beta removes the financial effects of leverage thus isolating the risk due solely to company assets. In other words, how much did the company's equity contribute to its risk profile.",investopedia,1,44.03,11.8,13,10.15,11,10.49,12.33333333,12.48
Unlevered Cost of Capital,"Unlevered cost of capital is an analysis using either a hypothetical or an actual debt-free scenario to measure a company's cost to implement a particular capital project (and in some cases used to assess an entire company). Unlevered cost of capital compares the cost of capital of the project using zero debt as an alternative to a levered cost of capital investment, which means using debt as a portion of the total capital required.",investopedia,1,25.46,18.9,0,11.38,20.3,10.17,27,19.66
Unlevered Free Cash Flow (UFCF),Unlevered free cash flow (UFCF) is a company's cash flow before taking interest payments into account. Unlevered free cash flow can be reported in a company's financial statements or calculated using financial statements by analysts.,investopedia,1,36.79,12.5,0,14.38,14.1,9.47,13.75,15
Unlimited Liability,"Unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets, which is different than the popular limited liability business structure.",investopedia,1,22.24,16,0,15.5,17.1,10.85,17.25,16.21
Unlimited Liability Corporation (ULC),"An unlimited liability corporation (ULC) is a corporate structure used in Canada that allows shareholders to be liable if the company declares bankruptcy. Sometimes ex-shareholders are also liable, depending on how recently they sold their stock. Despite this disadvantage, the structure of a ULC can be preferable in certain circumstances due to the tax benefits granted to shareholders of these companies.",investopedia,1,33.95,13.6,15.9,14.97,15.5,10.34,15.16666667,15.99
Unlimited Marital Deduction,"The unlimited marital deduction is a provision in the U.S. Federal Estate and Gift Tax Law that allows an individual to transfer an unrestricted amount of assets to their spouse at any time, including at the death of the transferor, free from tax. The unlimited marital deduction is considered an estate preservation tool because assets can be distributed to surviving spouses without incurring estate or gift tax liabilities.",investopedia,1,31.51,14.5,17.1,13.12,14.8,10.1,17.33333333,17.9
Unlimited Risk,Unlimited risk refers to a situation where there is potential for unlimited losses on a trade or in a particular investment. Any time an asset's price can move indefinitely against a trader's position means they are facing unlimited risk. A short trade is an example of a strategy with unlimited risk.,investopedia,1,45.76,11.1,14.6,10.38,10.2,8.81,12.5,13.86
Unlisted Security,"An unlisted security is a financial instrument that is not traded on a formal exchange because it does not meet listing requirements. Trading of unlisted securities is done on the over-the-counter (OTC) market and they are often called OTC securities. Market makers, or dealers, facilitate the buying and selling of unlisted securities on the OTC market.",investopedia,1,35.57,12.9,14.6,12.76,13.1,9.36,13.33333333,12.48
Unlimited Tax Bond,Unlimited tax bonds are municipal bonds guaranteed by the full faith and credit of a government that can levy taxes until the debt is repaid.,investopedia,1,46.1,13,0,9.93,13.1,10.56,16.5,14.8
Unlisted Trading Privileges (UTP),Unlisted trading privileges (UTP) refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange. Regulation for unlisted trading privileges is detailed in the Unlisted Trading Privileges Act of 1994.,investopedia,1,32.22,14.2,0,13.58,15.1,9.75,16.5,15.16
Unmatched Book,Maturity mismatch is a term used to describe situations when there's a disconnect between a company's short-term assets and its short-term liabilities—specifically more of the latter than the former. Maturity mismatches can also occur when a hedging instrument and the underlying asset's maturities are misaligned.,investopedia,1,14.8,16.8,0,16.89,18.1,11.42,16.25,17.89
Unofficial Strike,An unofficial strike is a work stoppage by union members that is not endorsed by the union and that does not follow the legal requirements for striking. Workers engaging in unofficial strikes have little legal recourse if they are fired and do not receive strike pay. An unofficial strike is also called a wildcat strike or an unofficial industrial action.,investopedia,1,51.18,11.1,11.9,11.14,11.9,9.1,12.33333333,10.67
Unpaid Dividend,An unpaid dividend is a dividend that is due to be paid to shareholders but has not yet been distributed. Unpaid dividends exist because of timing differences between the record date–the time at which existing shareholders become eligible to receive the upcoming dividend–and the payment date–when the dividend is actually paid.,investopedia,1,37.13,14.4,0,14.39,17,8.62,19.25,17.26
Unqualified Audit,An unqualified audit reflects business financial statements that are transparent and compliant with generally accepted accounting principles (GAAP). An unqualified opinion is given after thorough research considering all accompanying financial documents. Any possible remaining discrepancies with the audit would stem from information that could not be obtained by the auditor. An unqualified report analyzes the internal systems of control as well as the details in the organization's books.,investopedia,1,20.38,14.6,16.5,18.09,16.5,11.45,14,17.39
Unqualified Opinion,"An unqualified opinion is an independent auditor's judgment that a company's financial statements are fairly and appropriately presented, without any identified exceptions, and in compliance with generally accepted accounting principles (GAAP). An unqualified opinion is the most common type of auditor's report. Like any auditor’s opinion, it does not judge the financial position of the company or interpret financial data. It indicates that as a result of the testing done during the audit, the independent auditor has enough information to conclude that the company's financial statements conform to GAAP and fairly present the company's financial position for the statement time frame. It is issued when the auditor believes that all changes, accounting policies and their application and effects, have accurately been disclosed.",investopedia,1,21.33,16.3,18.2,16.08,18.3,10.28,20.25,16.97
Unquoted Public Company,"An unquoted public company, also known as an unlisted public company, is a firm that has issued equity shares that are no longer traded on a stock exchange.",investopedia,1,43.06,14.2,0,9.12,14.3,9.54,19,15.49
Unrealized Gain,"An unrealized gain is a potential profit that exists on paper, resulting from an investment. It is an increase in the value of an asset that has yet to be sold for cash, such as a stock position that has increased in value but still remains open.",investopedia,1,64.54,10.1,0,7.2,10.4,8.5,14.25,13.66
Unrealized Loss,"An unrealized loss is a ""paper"" loss that results from holding an asset that has decreased in price, but not yet selling it and realizing the loss. An investor may prefer to let a loss go unrealized in the hope that the asset will eventually recover in price, thereby at least breaking even or posting a marginal profit. For tax purposes, a loss needs to be realized before it can be used to offset capital gains.",investopedia,1,54.26,12,13,8.19,12.2,9.25,15.66666667,13.8
Unrecaptured Section 1250 Gain,"Unrecaptured section 1250 gain is an Internal Revenue Service (IRS) tax provision where previously recognized depreciation is recaptured into income when a gain is realized on the sale of depreciable real estate property. Unrecaptured section 1250 gains are taxed at a maximum 25% tax rate, or less in some cases, as of 2019. Unrecaptured section 1250 gains are calculated on a worksheet within Schedule D instructions, and they are reported on the Schedule D and carried through to the taxpayer's 1040.",investopedia,1,21.91,20.3,0,13.48,23.6,11.69,28.75,23.61
Unrecorded Deed,"An unrecorded deed refers to the situation where the title to a property, usually real estate, is not registered with the appropriate public records department.",investopedia,1,29.18,15.4,0,13.87,16.7,11.19,19.5,21.2
Unregistered Shares,"Unregistered shares, also known as restricted stock, are securities that are not registered with the Securities and Exchange Commission (SEC). They are usually issued through private placements, Regulation D offerings, or employee stock benefit plans as compensation for professional services, or in exchange for funding a startup company.",investopedia,1,21.74,16.2,0,17.47,19.4,12.06,19,19.6
Unrelated Business Taxable Income (UBTI),Unrelated business taxable income (UBTI) is income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity but is needed to generate a small portion of income.,investopedia,1,34.26,13.5,0,11.43,12.5,10.16,14.5,15
Unrestricted Cash,Unrestricted cash refers to cash that is readily available to be spent for any purpose and has not been pledged as collateral for a debt obligation or other purpose.,investopedia,1,50.5,13.4,0,10.51,15.3,9.98,18.5,17.12
Unrestricted Net Assets,"Unrestricted net assets are donations to nonprofit organizations that have no strings attached. That is, the assets may be used by the organization for general expenses or any legitimate expenditure.",investopedia,1,30.87,12.7,0,14.43,12.8,10.17,12,16.67
Unsatisfied Judgment Fund,An unsatisfied judgment fund is the amount of money set aside by certain states to cover uncompensated expenses related to bodily injuries sustained in motor vehicle accidents where the responsible driver is unable to pay for the damages. The unsatisfied judgment fund is used to help the injured and not-at-fault driver pay for medical bills related to the accident.,investopedia,1,33.07,16,0,13.3,18,9.65,21.25,17.9
Unscheduled Property Floater,"The importance of having adequate property insurance coverage can’t be overstated. One way to make sure you have the coverage you need is with an unscheduled property floater, an addition to an existing property insurance policy that provides coverage for personal property items that have not been individually itemized or valued.",investopedia,1,28.67,15.6,0,14.63,17.3,10.47,21.75,19.61
Unsecured,"Unsecured loans or lines of credit (LOC) are loans where lending happens without the backing of equal value collateral. Collateral is property or other valuable assets which a borrower offers as a way to secure the loan. In an unsecured loan, the lender will loan funds based on other borrower qualifying factors. These qualifying factors include the credit history, income, work status, and other existing debts.",investopedia,1,46.27,10.9,12.6,12.41,11.9,9.96,11,10.24
Unsecured Creditors,"An unsecured creditor is an individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because it will have nothing to fall back on should the borrower default on the loan. If a borrower fails to make a payment on a debt that is unsecured, the creditor cannot take any of the borrower's assets without winning a lawsuit first.",investopedia,1,36.46,16.7,0,11.04,18.7,9.7,15.83333333,19.02
Unsecured Debt,"Unsecured debt refers to loans that are not backed by collateral. If the borrower defaults on the loan, the lender may not be able to recover their investment because the borrower is not required to pledge any specific assets as security for the loan.",investopedia,1,57.61,10.7,0,9.75,11.8,10.47,15,15.16
Unsecured Loan,"An unsecured loan is a loan that doesn't require any type of collateral. Instead of relying on a borrower's assets as security, lenders approve unsecured loans based on a borrower’s creditworthiness. Examples of unsecured loans include personal loans, student loans, and credit cards.",investopedia,1,40.04,11.2,14.1,13.68,12.3,11.69,10.83333333,14.09
Unsecured Note,An unsecured note is a loan that is not secured by the issuer's assets. Unsecured notes are similar to debentures but offer a higher rate of return. Unsecured notes provide less security than a debenture. Such notes are also often uninsured and subordinated. The note is structured for a fixed period.,investopedia,1,61.12,7.3,9.9,9.08,6.8,9.1,5.5,8
Unskilled Labor,"Unskilled labor is used to refer to a segment of the workforce associated with a limited skill set or minimal economic value for the work performed. Unskilled labor is generally characterized by a lower educational attainment, such as a high school diploma, GED or lack thereof, and typically results in smaller wages. Work that requires no specific education level or specialized experience is often available to the unskilled labor force.",investopedia,1,30.91,14.7,15,13.23,15.2,11.78,16,16.75
Unsolicited Application,An unsolicited application is a request for life insurance coverage that is made by an individual rather than an insurance agent or broker. Insurers generally scrutinize these applications because of the likelihood of self-selection. Self-selection refers to the probability that individuals with poorer risks will seek insurance on their own instead of through an insurance professional.,investopedia,1,9.22,18.9,0,17.12,20.6,10.66,15.33333333,21.2
Unsolicited Bid,"An unsolicited bid is an offer made by an individual, investors, or a company to purchase a company that is not actively seeking a buyer. Unsolicited bids may sometimes be referred to as hostile bids if the target company doesn't want to be acquired. They usually come up when a potential acquirer sees value in the target company.",investopedia,1,43.43,12,14.1,9.52,10.5,8.95,13.33333333,11.86
Unsponsored ADR,"An unsponsored ADR is an American depositary receipt (ADR) issued by a depositary bank without the involvement, participation, or consent of the foreign company it represents ownership in.",investopedia,1,17.68,17.8,0,15.32,19.7,11.23,23,19.77
Unstated Interest Paid,"Unstated interest paid is the amount of money the Internal Revenue Service (IRS) assumes has been paid to the seller of an item that has been sold on an installment basis. Unstated interest must be calculated in some cases when you have sold an item on installment basis, but have charged the customer little or no interest. Because interest income must sometimes be treated differently than other types of income, it may be necessary to estimate which portion of an installment payment is actually interest income.",investopedia,1,42.34,14.5,16.3,12.02,16.6,8.73,19.66666667,15.67
Unsterilized Foreign Exchange Intervention,"The term unsterilized foreign exchange intervention refers to how a country's monetary authorities influence exchange rates and its money supply—by not purchasing foreign or by not selling domestic currencies or assets. This kind of approach is considered passive to exchange rate fluctuations, allowing for fluctuations in the monetary base.",investopedia,1,21.23,16.4,0,17.35,19.1,11.3,19.25,18.78
Unsubordinated Debt,"Unsubordinated debt, also known as a senior security or senior debt, refers to a type of obligation that must be repaid before any other form of debt. So, holders of unsubordinated debt have the first claim over a company's assets or earnings if the debtor goes bankrupt or insolvent. Because unsubordinated debt comes with a guarantee of repayment, they are considered less risky than other types of debt.",investopedia,1,48.43,12.1,13.6,11.26,13.4,9.87,14.66666667,13.79
Unsubscribed,"Stock shares from an initial public offering (IPO) that are not purchased, or subscribed, ahead of the official release date, are labeled unsubscribed.",investopedia,1,56.59,11.1,0,14.05,16.5,11.64,14.5,14.42
Unsuitable Investment (Unsuitability),"An unsuitable investment is when an investment— such as a stock or bond—does not meet the objectives and means of an investor. The investment strategy may also be unsuitable. For example, the portfolio asset mix could be wrong, or the investments purchased may be too aggressive or too low-risk for what the client needs or wants.",investopedia,1,60.95,9.4,14.1,10.56,11,9.08,13,13.19
Unusual Item,"An unusual item is a nonrecurring or one-time gain or loss that is not considered part of normal business operations. Unusual gains or losses may be recorded on the income statement as a separate component of income from continuing operations, or alternatively, may be identified in the footnotes to the financial statements or the management discussion and analysis (MD&A) section of the annual report.",investopedia,1,22.08,18.1,0,13.41,19.6,10.9,24,20.93
Unweighted Index,"An unweighted index is comprised of securities with equal weight within the index. An equivalent dollar amount is invested in each of the index components. For an unweighted stock index, one stock's performance will not have a dramatic effect on the performance of the index as a whole.",investopedia,1,55.24,9.5,13,10.73,10,8.71,11,12.23
Unwind,"To unwind is to close out a trading position, with the term tending to be used when the trade is complex or large. Unwinding also refers to the correction of a trading error, since correcting a trading error may be complex or require multiple steps or trades. For example, a broker mistakenly sells part of a position when an investor wanted to add to it. The broker would have to unwind the transaction by first buying the sold shares and then purchasing the shares that should have been purchased in the first place.",investopedia,1,64.75,10,12.2,9.23,11.8,9.04,14.125,13.19
Up/Down Gap Side-by-Side White Lines,"The side-by-side white lines pattern is a three-candle continuation pattern that occurs on candlestick charts. The up version is a large up (white or green) candle followed by a gap and then two more white candles of similar size to each other. The down version is a large down (black or red) candle followed by two white candles of similar size. When the pattern occurs, which is rare, it is expected that the price will continue moving in the current trend direction, down or up, as the case may be.",investopedia,1,65.56,9.7,11.7,8.59,11.4,7.38,13.5,10.78
Up-Front Mortgage Insurance (UFMI),"Up-front mortgage insurance is an insurance premium that is collected, typically on Federal Housing Administration (FHA) loans, at the time the loan is initially made. Though similar, it is not quite the same as private mortgage insurance (PMI), which is collected by a conventional private mortgage lender each month when a buyer's down payment on a home is less than 20% of the purchase price. Up-front mortgage premiums are added to a pool of money that is used to help entities, such as the FHA, insure loans for certain borrowers.",investopedia,1,49.49,13.8,15.9,10.98,16.9,9.34,20,17.33
Up-Market Capture Ratio,The up-market capture ratio is the statistical measure of an investment manager's overall performance in up-markets. It is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen.,investopedia,1,35.27,13.1,0,13.4,13.6,10.4,14.5,13.92
Up Volume,"Up volume generally refers to an increase in the volume of shares traded in either a market or security that leads to an increase in value. Overall, volume can be influenced by a number of factors and may have various effects.",investopedia,1,50.67,11.3,0,8.59,10.2,9.66,12.25,12.1
Upfront Pricing,Upfront pricing refers to the interest rates and limits established for a borrower in a credit card’s underwriting and issuance.,investopedia,1,42.72,12.3,0,14.04,14.2,14.1,14,16
Upgrade,An upgrade refers to the positive change in an analyst's outlook of a particular security's valuation based primarily on that security's improving fundamentals.,investopedia,1,5.83,18.2,0,16.83,18.3,13.02,20.5,23.11
Uphold,"Uphold is a cloud-based financial service platform that enables individuals to securely move, convert, hold and transact in various assets. Uphold offers 27 fiat currencies, 43 cryptocurrencies, and four types of precious metals.",investopedia,1,37.81,12.1,0,15.83,14.9,13.55,11.25,13.87
Upper Class,"The term upper class refers to a group of individuals who occupy the highest place and status in society. These people are considered the wealthiest, lying above the working and middle class in the social hierarchy. Individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources. While the upper class makes up a small percentage of the overall population, it controls a disproportionately large amount of the overall wealth.",investopedia,1,50.67,11.3,13,11.84,12.8,9.27,13.25,13.57
Upper Management,"Upper management includes individuals and teams that are responsible for making the primary decisions within a company. Personnel considered to be part of a company's upper management are at the top of the corporate ladder and carry a degree of responsibility greater than lower level personnel. Upper management members are imbued with powers given by the company's shareholders or board of directors. Examples of upper management personnel include CEOs, CFOs and COOs.",investopedia,1,27.83,13.9,15.9,14.09,13.8,10.23,14,14.42
UPREIT,"UPREIT means umbrella partnership real estate investment trust. An UPREIT is a unique REIT structure that allows property owners to exchange their property for share ownership in the UPREIT. However, UPREITs are generally subject to Internal Revenue Code (IRC) Section 721 exchanges.",investopedia,1,31.89,12.3,15,14.72,12.7,11.85,11.33333333,13.22
Upside,"Upside refers to the potential increase in value, measured in monetary or percentage terms, of an investment. Analysts commonly use either technical analysis or fundamental analysis techniques to predict the future price of an investment, particularly stock prices. A higher upside means that the stock has more value than is currently reflected in the stock price.",investopedia,1,35.57,12.9,15.5,14.21,14,10.49,14,16.05
Upside/Downside Gap Three Methods,"The Gap Three Methods is a three-bar Japanese candlestick pattern that indicates a continuation of the current trend. It is a variant of the Upside Tasuki Gap pattern, but the third candle completely closes the gap between the first two candles.",investopedia,1,59.13,10.1,0,11.72,12.8,9.66,12.75,12.1
Upside/Downside Ratio,The upside/downside ratio is a market breadth indicator that shows the relationship between the volumes of advancing and declining issues on an exchange. Investors typically use this indicator to determine the momentum of the market at any given time.,investopedia,1,14.97,20.9,0,14.86,24,11.24,14.25,22.78
Upside Gap Two Crows,"The upside gap two crows pattern is a three-day candlestick chart formation that signals an upward price move may be running out of momentum and could reverse lower. Since the pattern involves three specific candles in a certain order, the pattern is not very common.",investopedia,1,57.1,10.9,0,11.26,13.2,8.96,13.25,11.67
Upside Tasuki Gap,An Upside Tasuki Gap is a three-bar candlestick formation that is commonly used to signal the continuation of the current trend.,investopedia,1,41.7,12.7,0,12.01,13.3,10.69,14.5,14.11
Upstairs Market,"The term upstairs market refers to a network that exists between large firms and institutional investors. This network involves large trades or block orders. Trades in these transactions are not submitted through a stock exchange, which means they are not visible to other market participants. These orders are carried out directly between buyers and sellers, with professional brokers acting as intermediaries. The size of the order made in the upstairs market accounts for a big portion of the market's trading volume.",investopedia,1,55.03,9.6,10.4,13.34,12.2,9.51,8.7,10.43
Upstart,"An upstart is a person who has risen in social rank and/or economic status, but who has yet to be widely accepted by other individuals in the newly found social and economic class.",investopedia,1,37.98,16.2,0,8.77,16.2,10.06,20.5,16.84
Upstream,"Upstream is a term for the operations stages in the oil and gas industry that involve exploration and production. Oil and gas companies can generally be divided into three segments: upstream, midstream, and downstream. Upstream firms deal primarily with the exploration and initial production stages of the oil and gas industry.",investopedia,1,45.76,11.1,14.1,13.34,12.7,9.43,12.16666667,13.07
Upstream Capital Costs Index (UCCI),"The Upstream Capital Costs Index (UCCI) is a proprietary metric index that tracks the composite capital cost of materials, facilities, equipment, and personnel for oil and natural gas producing projects. Cambridge Energy Research Associates (CERA), now owned by IHS Markit, owns and manages the index.",investopedia,1,31.72,14.4,0,14.74,16.7,13.52,16.75,17
Upstream Guarantee,"An upstream guarantee, also known as a subsidiary guarantee, is a financial guarantee in which the subsidiary guarantees its parent company's debt.",investopedia,1,32.22,14.2,0,14.91,16.6,9.75,17,16.07
Uptick Rule,"The Uptick Rule (also known as the ""plus tick rule"") is a rule established by the Securities and Exchange Commission (SEC) that requires short sales to be conducted at a higher price than the previous trade.",investopedia,1,51.86,15,0,10.22,19.3,10.25,23,19.96
Uptick Volume,The term uptick volume refers to the volume of shares traded while a stock price rises. It is one of many indicators used by investors to make buy and sell decisions.,investopedia,1,81.12,5.8,0,7.89,7.3,8.99,7.75,8.78
Uptrend,"An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.",investopedia,1,71.34,7.5,9.5,9.86,9.6,8.71,8.625,9.11
Urban Development Act Of 1970,The Urban Development Act of 1970 is legislation enforced through the U.S. Department of Housing and Urban Development (HUD) that introduced the Federal Experimental Housing Allowance Program and Community Development Corporation.,investopedia,1,13.44,15.2,0,18.91,16.7,13.06,12.75,16.52
U.S. Agency for International Development (USAID),"The U.S. Agency for International Development (USAID) is an independent federal agency that provides civilian aid to foreign countries. By providing development and humanitarian assistance, the agency aims to further American interests abroad while improving lives in the developing world.",investopedia,1,17.34,15.8,0,18.56,18.5,12.52,16,18
U.S. Department of Health and Human Services (HHS),"The Department of Health and Human Services (HHS) is a Cabinet-level government department that provides health and human services and promotes research in social services, medicine, and public health. It achieves this through 11 agencies that manage more than 100 programs. The agencies include the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA) and the Administration for Children and Families (ACF).",investopedia,1,49.15,11.9,12.5,15.14,17,10.71,13.66666667,11.22
U.S. Department of Housing and Urban Development (HUD),The Department of Housing and Urban Development (HUD) is a U.S. government agency created in 1965 as part of then-President Lyndon Johnson’s Great Society agenda to expand America’s welfare state. Its primary mission is improving affordable homeownership opportunities to support the housing market and homeownership in inner-city areas.,investopedia,1,13.28,17.4,0,17.12,19,13.71,19,18.77
U.S. Department of Veterans Affairs,"The U.S. Department of Veterans Affairs, established in 1988 by then-President Ronald Reagan, elevated the previous Veterans Administration to a Cabinet-level executive department. This move gave the department a new name that allowed it to still be referred to by its longtime acronym, the “VA.”",investopedia,1,31.72,14.4,0,14.34,16.2,11.42,17.25,16.11
U.S. Dollar Index (USDX),"The U.S. dollar index (USDX) is a measure of the value of the U.S. dollar relative to the value of a basket of currencies of the majority of the U.S.'s most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies.",investopedia,1,44.58,13.6,0,9.52,14.5,9.42,16.75,15.13
U.S. House Financial Services Committee,The U.S. House Financial Services Committee is the congressional committee responsible for monitoring and writing legislation for the financial services and housing-related industries in the United States. All committee members are elected members of the U.S. House of Representatives.,investopedia,1,24.44,13.1,14.6,17.5,14.9,10.35,10.5,14.43
U.S.-Mexico Trade Agreement,"The United States-Mexico-Canada Agreement, also known as the USMCA, is a trade deal between the three nations which was signed on November 30, 2018. The USMCA replaced the North American Free Trade Agreement (NAFTA), which had been in effect since January of 1994. Under the terms of NAFTA, tariffs on many goods passing between North America's three major economic powers were gradually phased out. By 2008, tariffs on various agricultural and textiles products, automobiles, and other goods were reduced or eliminated.",investopedia,1,35.61,15,14.1,13.58,17.9,10.43,17.16666667,14.75
U.S. Savings Bonds,"A U.S. savings bond is a government bond offered to its citizens to help fund federal spending, and which provides savers with a guaranteed, although modest, return. These bonds are issued with zero coupon at a discount with an implied fixed rate of interest over a fixed period of time.",investopedia,1,54.56,11.9,0,9.81,13.5,11.82,15.5,14
U.S. Savings Bond Adjustment,"According to Treasury Direct, interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. Bonds typically earn interest, which is the amount that a bond can be redeemed for above its face value. The face value is the bond's original purchase price. The interest on savings bonds is also subject to federal gift, estate, and excise taxes. On the state level, the tax on the interest applies for estates or inheritances.",investopedia,1,63.09,8.6,11.2,9.28,9.4,8.84,10.3,9.53
U.S. Treasury,"The U.S. Treasury, created in 1789, is the government department responsible for issuing all Treasury bonds, notes and bills. Among the government departments operating under the U.S. Treasury umbrella are the Internal Revenue Service (IRS), the U.S. Mint, the Bureau of the Fiscal Service, and the Alcohol and Tobacco Tax and Trade Bureau.",investopedia,1,45.05,11.4,14.6,12.64,13.4,10.17,12.83333333,13.12
Usance,"In international trade, usance is the allowable period of time, permitted by custom, between the date of the bill and its payment. The usance of a bill varies between countries, often ranging from two weeks to two months. It is also the interest charged on borrowed funds. Usance is derived from the action of usury, as well as the use of goods for economic purposes.",investopedia,1,63.39,8.5,10.7,8.64,8.6,9.3,8.875,10.83
USC Marshall School of Business,"The business school at the University of Southern California (USC), the Marshall School of Business offers a wide variety of both undergraduate and graduate programs and many of its degrees have been ranked highly by various financial publications. The Marshall School of Business now boasts more than 67,000 alumni worldwide.",investopedia,1,37.64,14.2,0,14.45,17.2,11.19,16.5,16.4
USD,"The USD is the abbreviation for the U.S. Dollar, the official currency of United States of America and the world's primary reserve currency.",investopedia,1,51.34,9,0,10.01,8.5,10.39,7.75,11.56
USDA Streamlined Refinancing,USDA streamlined refinancing refers to a simplified mortgage-refinancing option offered through the United States Department of Agriculture (USDA). The USDA streamlined refinancing is intended for homeowners who purchased their homes using a USDA-issued home loan.,investopedia,1,28.33,13.7,0,19.72,18.4,11.72,13.25,13.86
Use and Occupancy (U&O),The term use and occupancy (U&O) refers to a real estate agreement between two parties that allows one party to use and/or occupy a property before ownership is transferred from one side to the other. A U&O provides some security if and when complications arise due to financing problems or when there are delays in the closing process. Some governments require U&Os whenever properties are sold to secure the rights of all parties involved.,investopedia,1,46.4,12.9,13.6,11.15,14.3,10.62,15.66666667,14.74
Use Tax,"Use tax is a sales tax on purchases made outside one's state of residence for taxable items that will be used, stored or consumed in one's state of residence and on which no tax was collected in the state of purchase. If the purchase would have been taxed if it was made in the purchaser’s state of residence, then use tax is due.",investopedia,1,64.88,12,0,7.61,14.5,8.21,18.25,14.5
Useful Life,"The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue Service (IRS) employs useful life estimates to determine the amount of time during which an asset can be depreciated. There are a variety of factors that can affect useful life estimates, including usage patterns, the age of the asset at the time of purchase and technological advances.",investopedia,1,44.78,13.5,14.6,11.44,15.3,9.54,17.16666667,16.09
User Fee,A user fee is a sum of money paid as a necessary condition to gain access to a particular service or facility. Examples of user fees could include highway tolls or parking garages.,investopedia,1,54.73,9.7,0,8.06,7.9,10.68,10.75,12.66
"Usual, Customary, and Reasonable Fees","Usual, customary and reasonable (UCR) fees are out-of-pocket fees that a health insurance policyholder must pay for services. UCR fees are based on the services provided to policyholders, as well as the area of the country where the services are being provided.",investopedia,1,50.16,11.5,0,12.42,14.1,9.19,14.5,14.11
Usufruct,A usufruct is a legal right accorded to a person or party that confers the temporary right to use and derive income or benefit from someone else's property. It is a limited real right that can be found in many mixed and civil law jurisdictions. A usufructuary is the person holding the property by usufruct.,investopedia,1,61.36,9.2,12.5,8.99,9.4,8.85,11.83333333,12.41
Usury Laws,Usury laws are regulations governing the amount of interest that can be charged on a loan. Usury laws specifically target the practice of charging excessively high rates on loans by setting caps on the maximum amount of interest that can be levied. These laws are designed to protect consumers.,investopedia,1,63.39,8.5,11.9,11.19,10.4,10.25,10.5,11.42
Usury Rate,"The term usury rate refers to a rate of interest that is considered to be excessive as compared to prevailing market interest rates. They are often associated with unsecured consumer loans, particularly those relating to subprime borrowers.",investopedia,1,35.78,12.9,0,14.21,13.8,11.38,14.25,17.13
Utilitarianism,"Utilitarianism is a theory of morality, which advocates actions that foster happiness or pleasure and opposes actions that cause unhappiness or harm. When directed toward making social, economic, or political decisions, a utilitarian philosophy would aim for the betterment of society as a whole. Utilitarianism would say that an action is right if it results in the happiness of the greatest number of people in a society or a group.",investopedia,1,30.91,14.7,17.1,12.65,14.8,9.3,17.66666667,17.32
Utilities Industry ETF,"The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas. It is a large sector, and an important part of the U.S. economy, with a market capitalization of over $1.5 trillion (as of March 2021).",investopedia,1,47.12,12.7,0,10.33,14.2,11.41,16,14.6
Utilities Sector,"The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas. It is a large sector, and an important part of the U.S. economy, with a market capitalization of over $1.5 trillion (as of March 2021).",investopedia,1,47.12,12.7,0,10.33,14.2,11.41,16,14.6
Utility,"Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer's utility is impossible to measure and quantify. However, some economists believe that they can indirectly estimate what is the utility for an economic good or service by employing various models.",investopedia,1,35.27,13.1,16.4,13.11,13.3,9.4,14.9,14.76
Utility Patent,"A utility patent is a patent that covers the creation of a new or improved—and useful—product, process, or machine. A utility patent, also known as a ""patent for invention,"" prohibits other individuals or companies from making, using, or selling the invention without authorization. When most people refer to a patent, they are most likely referring to a utility patent.",investopedia,1,51.48,11,13.6,12.18,13.3,8.9,13.16666667,11.95
Utility Revenue Bond,"A utility revenue bond, also known as an essential service bond, is a type of municipal bond issued to finance a public utility that repays bondholders directly from project revenues rather than a general tax fund.",investopedia,1,34.94,17.3,0,11.67,20,11.56,25,19.96
Utilization Fee,"A utilization fee is a regular, periodic fee assessed by a lender against a borrower. The fee is based on the amount of credit actually used by a borrower in a revolving line of credit or term loan.",investopedia,1,60.65,9.5,0,6.85,8,9.15,13,13.92
UTXO,"The term UTXO refers to the amount of digital currency someone has left remaining after executing a cryptocurrency transaction such as bitcoin. The letters stand for unspent transaction output. Each bitcoin transaction begins with coins used to balance the ledger. UTXOs are processed continuously and are responsible for beginning and ending each transaction. Although confirmation of transaction results in the removal of spent coins from the UTXO database, a record of the spent coins still exists on the ledger.",investopedia,1,55.44,9.5,12.7,14.15,12.6,9.62,10.7,10.88
V-Shaped Recovery,"V-shaped recovery is a type of economic recession and recovery that resembles a ""V"" shape in charting. Specifically, a V-shaped recovery represents the shape of a chart of economic measures economists create when examining recessions and recoveries. A V-shaped recovery involves a sharp rise back to a previous peak after a sharp decline in these metrics.",investopedia,1,44.03,11.8,15.9,12.88,13.2,10.2,14.33333333,15.34
V2X (Vehicle-to-Vehicle or Vehicle-to-Infrastructure),"Vehicle-to-everything (V2X) is a technology that allows vehicles to communicate with moving parts of the traffic system around them. Also known as connected-vehicle-to-everything communication, it has several components.",investopedia,1,-1.96,17,0,20.06,18,11.1,11,15.6
VA Loan,"A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs (previously the Veterans Administration). The VA sets the qualifying standards, dictates the terms of the mortgages offered, and guarantees a portion of the loan, but doesn't actually offer the financing.",investopedia,1,37.64,14.2,0,14.1,17.1,11.51,17.5,17.2
Vacancy Rate,"The vacancy rate is the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time.",investopedia,1,41.03,15,0,9.82,15.6,10.39,20,18.67
Vacation Home,"A vacation home is a secondary dwelling, other than the owner's principal residence, and is used primarily for recreational purposes including vacations or holidays. Also known as a recreational or secondary property or residence, a vacation home is often situated in a different location from the owner's primary residence. Because vacation homes are only used at certain times of year, many owners rent out these dwellings when they are not using them.",investopedia,1,38.66,13.8,17.5,13.12,15.6,9.43,18.33333333,16.82
Validation Code,"A validation code—also known as a CVV, CV2, or CVV2 code—is a series of three or four numbers located on the front or back of a credit card. It is intended to provide an additional layer of security for credit card transactions that take place online or over the phone.",investopedia,1,54.56,11.9,0,8.07,11.8,9.93,15.5,14.8
Valoren Number,A valoren number is an identification number assigned to financial instruments in Switzerland. These numbers are similar to the CUSIP numbers that are used in Canada and the U.S. A typical valoren number is between six to nine digits in length.,investopedia,1,57.57,8.6,10.5,10.55,9,9.71,7.5,10.36
Valuable Papers Insurance,"Valuable papers insurance is a special type of property-casualty insurance. Valuable papers insurance reimburses the policyholder for the monetary value of any valuable papers such as wills, trusts, or corporate charters that are lost for any reason, though it cannot actually replace these papers. It is often purchased by corporations, small businesses, and wealthy people.",investopedia,1,27.52,14,14.1,15.61,15.2,10,12.83333333,14.59
Valuation,"Valuation is the analytical process of determining the current (or projected) worth of an asset or a company. There are many techniques used for doing a valuation. An analyst placing a value on a company looks at the business's management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets, among other metrics.",investopedia,1,32.06,16.4,0,12.14,18,10.59,13.83333333,16.79
Valuation Analysis,"Valuation analysis is a process to estimate the approximate value or worth of an asset, whether its a business, equity, fixed income security, commodity, real estate, or other assets. The analyst may use different approaches to valuation analysis for different types of assets, but the common thread will be looking at the underlying fundamentals of the asset.",investopedia,1,17.17,17.9,0,13.06,17.9,10.59,21.75,19.12
Valuation Clause,The valuation clause is a provision in some insurance policies that specify the amount of money the policyholder will receive from the insurance provider if a covered hazard event occurs. This clause stipulates a fixed amount to be paid in the event of a loss for an insured property.,investopedia,1,63.53,10.5,0,11.44,14.1,10.01,16.25,15.51
Valuation Mortality Table,A valuation mortality table is a statistical chart that is used by insurance companies to calculate the statutory reserve and cash surrender values of life insurance policies. A mortality table shows the death rate at any given age in terms of the number of deaths that occur for every thousand individuals of that age; it provides statistics regarding the likelihood that a person of a given age will live X number of years. This allows the insurance company to assess risks in policies.,investopedia,1,34.9,15.3,16.3,11.2,15.5,9.77,19.16666667,16.86
Valuation Period,The valuation period is the interval at the end of a given period of time during which value is determined for variable investment options. Valuation is the calculation of a product’s value and is typically done by appraisers at the end of each business day.,investopedia,1,40.18,13.2,0,10.33,12.2,8.61,16.75,17
Valuation Premium,"A valuation premium is a life insurance calculation that determines the charges for premiums based on the company's liabilities. Insurance companies charge monthly premiums or fees to their policyholders, and in exchange, provide financial coverage for an event, such as death. The premiums that are collected from their customers—called reserves—are usually held in short-term term investments.",investopedia,1,27.11,14.1,17.5,17.11,16.5,11.33,15.66666667,18.19
Valuation Reserve,Valuation reserves are assets that insurance companies set aside per state law to mitigate the risk of declines in the value of investments they hold. They function as a hedge to an investment portfolio and ensure that an insurance company remains solvent.,investopedia,1,50.16,11.5,0,12.13,13.2,11.07,15,15.07
Value,"Value is the monetary, material, or assessed worth of an asset, good, or service. ""Value"" is attached to a myriad of concepts including shareholder value, the value of a firm, fair value, and market value. Some of the terms are well-known business jargon, and some are formal terms for accounting and auditing standards of reporting to the Securities and Exchange Commission (SEC).",investopedia,1,40.01,15.4,0,11.73,18.4,10.27,20.5,18.85
Value Added,"The term ""value-added"" describes the economic enhancement a company gives its products or services before offering them to customers. Value-added helps explain why companies are able to sell their goods or services for more than they cost to produce. Adding value to products and services is very important as it provides consumers with an incentive to make purchases, thus increasing a company's revenue and bottom line.",investopedia,1,49.15,11.9,13.6,13.23,15,9.75,14.33333333,13.65
Value Added Monthly Index (VAMI),"A value added monthly index (VAMI) tracks the monthly performance of a hypothetical $1,000 investment, assuming reinvestment, over a period of time.",investopedia,1,23.77,15.4,0,14.33,16.7,14.06,17,19.71
Value-Added Network (VAN),"A value-added network (VAN) is a private, hosted service that provides companies with a secure way to send and share data with its counterparties. Value-added networks were a common way to facilitate electronic data interchange (EDI) between companies. As the Internet created competition for this service with the advent of secure email, VANs responded by expanding their service offerings to include things like message encryption, secure email, and management reporting.",investopedia,1,30.91,14.7,15.9,15.44,17.4,11.56,16.66666667,17.32
Value-Added Resellers (VAR),"A value-added reseller is a firm that enhances the value of third-party products by adding customized products or services for resale to end-users. Value-added resellers play a prominent role in the information technology (IT) industry, providing additional hardware, installation services, consulting, troubleshooting, or other related products or services on top of core products.",investopedia,1,27.66,16,0,17.7,21.2,11.8,19.25,18.9
Value-Added Tax (VAT),"A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.",investopedia,1,65.9,11.6,0,6.92,13.5,8.26,17.25,14.17
Value at Risk (VaR),"Value at risk (VaR) is a statistic that measures and quantifies the level of financial risk within a firm, portfolio or position over a specific time frame. This metric is most commonly used by investment and commercial banks to determine the extent and occurrence ratio of potential losses in their institutional portfolios.",investopedia,1,36.63,14.6,0,13.12,16.5,12.21,19.5,20.4
Value Averaging,"Value averaging (VA) is an investing strategy that works like dollar-cost averaging (DCA) in terms of making steady monthly contributions, but differs in its approach to the amount of each monthly contribution. In value averaging, the investor sets a target growth rate or an amount of their asset base or portfolio each month, and then adjusts the next month's contribution according to the relative gain or shortfall made on the original asset base.",investopedia,1,34.43,17.5,0,12.54,21.3,10.85,24.75,19.53
Value-Based Pricing,"Value-based pricing is a strategy of setting prices primarily based on a consumer's perceived value of a product or service. Value pricing is customer-focused pricing, meaning companies base their pricing on how much the customer believes a product is worth.",investopedia,1,42.72,12.3,0,13.63,14.4,9.37,12.5,11
Value Chain,"A value chain is a business model that describes the full range of activities needed to create a product or service. For companies that produce goods, a value chain comprises the steps that involve bringing a product from conception to distribution, and everything in between—such as procuring raw materials, manufacturing functions, and marketing activities.",investopedia,1,27.15,16.2,0,15.26,18.8,10.82,19,16.73
Value Change,"The term value change refers to a daily adjustment made to the price of a company's stock. This change reflects the number of outstanding shares issued and currently held by investors. This figure is updated on a daily basis. Since the number of shares held by investors changes daily, this number can be updated every day to reflect the changes. It allows a group of stocks to be equally weighted and more easily evaluated by investors, analysts, and other financial professionals.",investopedia,1,63.49,8.4,11.6,10.55,10,8.73,10.3,11.42
Value Deflation,"Value deflation, or shrinkflation, occurs when retailers and service providers cut their costs and sell smaller packages, give out smaller portions, or generally provide less for the same price so as to maintain the same sticker price. Businesses may do this as a way of stealthily raising prices when costs are rising and consumers are particularly price conscious. Economy-wide value deflation is actually a form of price inflation to the extent that it results in lower real consumption at the same price level. Value deflation can lead to an understatement of the rate of inflation and the cost of living if it is not accounted for in the calculation of price indexes.",investopedia,1,43.06,14.2,14.9,11.61,16.2,9.4,16,16.2
Value Engineering,"Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.",investopedia,1,14.46,14.8,15.2,17.74,15.3,11.16,11.75,16.14
Value Fund,"A value fund is a fund that follows a value investing strategy and seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics. Value investing is often compared with growth investing, which focuses on emerging companies with high growth prospects.",investopedia,1,47.62,12.5,0,13.76,15.6,10.85,16.25,15.36
Value Investing,"Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors actively ferret out stocks they think the stock market is underestimating. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company's long-term fundamentals. The overreaction offers an opportunity to profit by buying stocks at discounted prices—on sale.",investopedia,1,44.24,11.7,13.8,14.21,13.9,9.89,12.75,14.97
Value Line Composite Index,"The Value Line Composite Index is a stock index containing approximately 1,700 companies from the NYSE, American Stock Exchange, Nasdaq, Toronto, and over-the-counter markets. The Value Line Composite Index has two forms: The Value Line Geometric Composite Index (the original equally weighted index) and the Value Line Arithmetic Composite Index (an index which mirrors changes if a portfolio held equal amounts of stock.) These indexes are typically published in the Value Line Investment Survey, created by Arnold Bernhard, the founder, and CEO of Value Line Inc.",investopedia,1,19.37,21.2,0,15.51,27,11.46,30,22.32
Value Network,A value network is a set of connections between organizations and/or individuals interacting with each other to benefit the entire group. A value network allows members to buy and sell products as well as share information. These networks can be visualized with a simple mapping tool showing nodes (members) and connectors (relationships).,investopedia,1,37,12.4,13,13.63,13.3,9.96,11.66666667,13.84
Value Network Analysis,Value network analysis is the assessment of an organization's members and the interactions of these members within a value network. Value network analysis is usually done by visualizing relationships using a chart or web.,investopedia,1,28.84,13.5,0,14.15,13.3,9.59,12.5,15.04
Value of Risk (VOR),Value of risk (VOR) is the financial benefit that a risk-taking activity will bring to the stakeholders of an organization. It requires the organization to determine whether an activity will help to move it closer to completing its objectives.,investopedia,1,14.97,20.9,0,13.53,23.2,10.83,15.25,23.81
Value Proposition,"A value proposition refers to the value a company promises to deliver to customers should they choose to buy their product. A value proposition is part of a company's overall marketing strategy. The value proposition provides a declaration of intent or a statement that introduces a company's brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.",investopedia,1,48.84,12,15,12.07,13.9,9.69,15.5,13.7
Value Reporting Form,A value reporting form is an insurance form businesses complete to provide information to their insurance company in order to receive variable coverage amounts.,investopedia,1,21.74,16.2,0,16.13,17.7,10.75,19,17.93
Value Stock,"A value stock refers to shares of a company that appears to trade at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors.",investopedia,1,37.98,16.2,0,10.57,17.9,10.54,21.5,18.05
Value Trap,"A value trap is a stock or other investment that appears to be cheaply priced because it has been trading at low valuation metrics, such as multiples in terms of price to earnings (P/E), price to cash flow (P/CF), or price to book value (P/B) for an extended time period. A value trap can attract investors who are looking for a bargain because they seem inexpensive relative to historical valuation multiples of the stock or relative to those of industry peers or the prevailing market multiple. The danger of a value trap presents itself when the stock continues to languish or drop further after an investor buys into the company.",investopedia,1,24.11,23.6,0,10.64,28.7,10.96,21.66666667,26.36
Valued Marine Policy Definition,"A valued marine policy is a type of marine insurance coverage that places a specific value on the insured property, such as the hull or cargo of a shipping vessel, prior to a claim being made. In the event of a loss, a valued marine policy will pay a specified, pre-determined amount—provided, of course, that there are no traces of fraud.",investopedia,1,48.98,14,0,9.01,15.3,10.84,19.75,17.45
Valued Policy Law (VPL),"Valued policy law (VPL) is a legal statute that requires insurance companies to pay the full value of a policy to the insured in the event of a total loss. Valued policy law does not consider the actual cash value of the insured property at the time of the loss; instead, the law mandates total payment.",investopedia,1,51.52,13,0,8.07,13.4,9.25,18,15.49
Vancouver Stock Exchange (VAN) Definition,"The Vancouver Stock Exchange (VAN/VSE) is a now-defunct stock exchange formerly located in Vancouver, British Columbia, Canada. It was incorporated in 1907 as the third-largest marketplace in Canada behind the Toronto Stock Exchange (TSX) and Montreal Stock Exchange. Stocks listed on this exchange were denoted by a .V following the ticker symbol.",investopedia,1,45.46,11.2,13.6,14.09,14.1,11.17,12,13.07
Vandalism and Malicious Mischief Insurance,"Vandalism and malicious mischief insurance is insurance coverage that protects against losses sustained as a result of vandals. This type of insurance is included in most basic commercial and homeowner policies. It is an important insurance component for properties that are not occupied during well-known periods of the day, such as churches and schools. These structures can become target when they are unoccupied because vandals know there is a reduced risk of being caught.",investopedia,1,37.94,14.1,16.3,14.28,16.7,10.41,13.25,16.37
Vanguard Exchange-Traded Funds,Vanguard exchange-traded funds (ETFs) are a class of funds offered by Vanguard. Exchange-traded funds combine the diversification of mutual funds with a lower investment minimum required. Vanguard also offers real-time pricing. ETFs are traded the same way that individual stocks are traded.,investopedia,1,43.9,9.7,11.2,14.53,11.8,10.17,6.25,8.96
Vanilla Option,"A vanilla option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a given timeframe. A vanilla option is a call option or put option that has no special or unusual features. Such options are standardized if traded on an exchange such as the Chicago Board Options Exchange.",investopedia,1,57.91,10.6,11.9,10.1,12,9.09,13.16666667,12.99
Vanilla Strategy,"A vanilla strategy is a common or popular approach to investing or decision making in business. Although the concept is relatively basic, many investors succeed by sticking with a simple, proven strategy such as passive investing through broad exchange traded funds. Similarly, businesses can succeed through plain vanilla strategies such as focusing business lines in areas where there is a clear competitive advantage. In business, however, a vanilla strategy must allow for some innovation as competitive advantage can weaken over time for many products and services.",investopedia,1,32.73,14,14.9,14.79,15.9,10.03,15,13.72
What Is a Vanishing Premium?,"A vanishing premium is a periodic fee paid for an insurance policy that continues until the cash value of the policy grows enough to cover the fee. At that point, the premium ""vanishes"" as payments are no longer necessary, but are instead covered by the policy's internal value and dividend stream.",investopedia,1,37.13,14.4,0,10.45,14.2,9.86,19.25,18.83
Vanishing Premium Policy Definition,"A vanishing premium policy is a form of permanent life insurance in which the holder can use dividends from the policy to pay its premiums. Over time, the cash value of the policy increases to the point where dividends earned by the policy equal the premium payment. At this point, the premium is said to disappear, or vanish.",investopedia,1,51.89,10.8,15.9,8.99,10.1,7.59,14.66666667,13.93
VantageScore,"VantageScore is a consumer credit rating product developed by the top three credit bureaus, Equifax, TransUnion, and Experian, in 2006 as an alternative to the FICO score, created by the Fair Isaac Corporation in 1989.",investopedia,1,35.95,16.9,0,13.99,21.8,13.04,22.5,19.71
Variability,"Variability, almost by definition, is the extent to which data points in a statistical distribution or data set diverge—vary—from the average value, as well as the extent to which these data points differ from each other. In financial terms, this is most often applied to the variability of investment returns. Understanding the variability of investment returns is just as important to professional investors as understanding the value of the returns themselves. Investors equate a high variability of returns to a higher degree of risk when investing.",investopedia,1,32.73,14,14.9,13.75,14.9,9.29,15,13.25
Variable Annuitization,"Variable Annuitization is an annuity option in which the amount of income payments received by the policyholder will vary according to the investment performance of the annuity. Variable annuitization is one option that can be selected by the policyholder during the annuitization phase of a contract, which is the phase in which the policyholder exchanges the accumulated value of the annuity for a stream of regular income payments guaranteed for life or guaranteed for a specified number of years.",investopedia,1,14.46,21.1,0,14.05,23.5,9.59,28.75,21.37
Variable Annuity,"A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. Sub accounts and mutual funds are conceptually identical, but sub accounts don't have ticker symbols that investors can easily type into a fund tracker for research purposes. Among annuities, variable annuities differ from fixed annuities, which provide a specific and guaranteed return.",investopedia,1,39.97,13.3,15.9,13.64,15.3,11.5,16.33333333,16.14
Variable Benefit Plan,A variable-benefit plan is a type of retirement plan in which the payout changes depending on how well the plan's investments perform.,investopedia,1,57.61,10.7,0,11.72,13.8,11.9,15,16.07
Variable Cost,"A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume—they rise as production increases and fall as production decreases. Examples of variable costs include a manufacturing company's costs of raw materials and packaging—or a retail company's credit card transaction fees or shipping expenses, which rise or fall with sales. A variable cost can be contrasted with a fixed cost.",investopedia,1,42.41,12.4,15.6,13.46,14.1,10.49,14.875,15.03
Variable Cost-Plus Pricing,"Variable cost-plus pricing is a pricing method whereby the selling price is established by adding a markup to total variable costs. The expectation is that the markup will contribute to meeting all or a part of the fixed costs and yield some level of profit. Variable cost-plus pricing is particularly useful in competitive scenarios, such as contract bidding, but it is not suitable in situations where fixed costs are a major component of total costs.",investopedia,1,54.56,11.9,12.5,11.78,14.9,9.93,15.16666667,14.27
Variable Cost Ratio,The variable cost ratio is a calculation of the costs of increasing production in comparison to the greater revenues that will result from the increase. An estimate of the variable cost ratio allows a company to aim for the optimal balance between increased revenues and increased costs of production.,investopedia,1,46.61,12.8,0,12.71,15.1,10.01,16.25,14.7
Variable Coupon Renewable Note (VCR),A variable coupon renewable note (VCR) is a renewable fixed income security with variable coupon rates that are periodically reset. The renewable note is a type of debt security with a weekly maturity. The principal of this security is reinvested automatically at new interest rates every week it matures.,investopedia,1,38.01,12,14.6,12.24,11.4,10.25,12.16666667,13.05
Variable Death Benefit,"Variable death benefit refers to the amount paid to a decedent's beneficiary that is based on the performance of an investment account within a variable universal life insurance policy, a financial product that functions as both insurance and an investment. This variable amount is in addition to a guaranteed death benefit, which is constant.",investopedia,1,35.61,15,0,13.76,17.5,10.24,20,18.21
Variable Interest Entities (VIE),"A variable interest entity (VIE) refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights. Characteristics include a structure where equity investors do not have sufficient resources to support the ongoing operating needs of the business. In most cases, the VIE is used to protect the business from creditors or legal action. A business that is the primary beneficiary of a VIE must disclose the holdings of that entity as part of its consolidated balance sheet.",investopedia,1,40.69,13.1,14.2,11.89,13.6,10.47,14.75,14.71
Variable Interest Rate,A variable interest rate (sometimes called an “adjustable” or a “floating” rate) is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically.,investopedia,1,22.42,20.1,0,12.78,22.8,10.75,27,21
Variable Life Insurance,"Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds.",investopedia,1,31.55,16.6,0,16.26,21.7,12.31,23.5,20.14
Variable Overhead,"Variable overhead is a term used to describe the fluctuating manufacturing costs associated with operating businesses. As production output increases or decreases, variable overhead expenses move in kind. Variable overhead differs from the general overhead expenditures associated with administrative tasks and other functions that have fixed budgetary requirements.",investopedia,1,12.94,15.4,15.5,20.47,17.9,11.01,12.66666667,16.4
Variable Overhead Efficiency Variance,"Variable overhead efficiency variance refers to the difference between the true time it takes to manufacture a product and the time budgeted for it, as well as the impact of that difference. It arises from variance in productive efficiency.",investopedia,1,51.68,10.9,0,12.3,12.7,9.06,13.25,11.9
Variable Overhead Spending Variance,"A spending variance is the difference between the actual amount of a particular expense and the expected (or budgeted) amount of an expense. To understand what variable overhead spending variance is, it helps to know what a variable overhead is. Variable overhead is a cost associated with running a business that fluctuates with operational activity. As production output increases or decreases, variable overheads move in tandem. Overheads are typically a fixed cost, for example, administrative expenses. Variable overheads, on the other hand, are tied to production levels.",investopedia,1,39.84,11.3,13,14.09,12.5,9.07,10.25,12.7
Variable Prepaid Forward Contracts,A variable prepaid forward contract is a strategy used by stockholders to cash in some or all of their shares while deferring the taxes owed on the capital gains. The sale agreement is not immediately finalized but the stockholder collects the money.,investopedia,1,50.16,11.5,0,11.31,12.5,10.32,14,14.11
Variable Price Limit,"A variable price limit is a type of circuit breaker used to maintain orderly trading conditions. It is associated with the commodities futures markets, which are known for their occasionally high levels of volatility.",investopedia,1,45.76,11.1,0,13.28,12.6,11.91,11.5,13.86
Variable-Rate Certificate of Deposit,"A variable-rate certificate of deposit (CD) is a product offered by banks and credit unions that has a fixed term but a fluctuating interest rate. Several factors determine this CD's rate, such as the prime rate, the consumer price index (CPI), treasury bills, or a market index. The basis for the amount paid out is on a percentage difference between the beginning index and the final index. The Federal Deposit Insurance Corporation (FDIC) protects variable-rate and other CDs.",investopedia,1,45.09,13.4,15,12.07,16.2,10.8,13,14.5
Variable-Rate Demand Bond,"A variable-rate demand bond is a type of municipal bond (muni) with floating coupon payments that are adjusted at specific intervals. The bond is payable to the bondholder upon demand following an interest rate change. Generally, the current money market rate is used to set the interest rate, plus or minus a set percentage, which may result in a change in coupon payments over time.",investopedia,1,49.45,11.8,14.1,10.44,12.6,9.81,14.5,13.6
Variable Rate Demand Note (VRDN),"A variable-rate demand note (VRDN) is a debt instrument that represents borrowed funds that are payable on demand and accrue interest based on a prevailing money market rate, such as the prime rate. The interest rate applicable to the borrowed funds is specified from the outset of the debt and is typically equal to the specified money market rate plus an extra margin.",investopedia,1,47.96,14.4,0,11.09,17.4,10.21,20.75,17.04
Variable Rate Mortgage,"A variable rate mortgage is a type of home loan in which the interest rate is not fixed. Instead, interest payments will be adjusted at a level above a specific benchmark or reference rate, such as the London Interbank Offered Rate (LIBOR) + 2 points. Lenders can offer borrowers variable rate interest over the life of a mortgage loan. They can also offer a hybrid adjustable-rate mortgage (ARM), which includes both an initial fixed period followed by a variable rate that resets periodically thereafter.",investopedia,1,50.36,11.4,12.6,11.37,13,9.8,13.25,12.18
Variable Ratio Write,The variable ratio write is an options strategy defined by an investor or trader holding a long position in the underlying asset while simultaneously writing multiple call options at varying strike prices. It is essentially a ratio buy-write strategy.,investopedia,1,34.76,13.3,0,13.92,14,11.49,13.25,13.95
Variable Survivorship Life Insurance,Variable survivorship life insurance is a type of variable life insurance policy that covers two individuals and pays a death benefit to a beneficiary only after both people have died. It may pay out a benefit prior to the first policyholder's death if the policy has a living benefit rider. The living benefit rider is often automatically included in life insurance policies at no cost. This rider allows access to a certain amount of policy death benefit in the case of terminal illness as defined in the policy.,investopedia,1,32.22,14.2,15.6,10.56,12.4,8.32,15.75,13.35
Variable Universal Life Insurance (VUL),"Variable universal life (VUL) is a type of permanent life insurance policy with a built-in savings component that allows for the investment of the cash value. Like standard universal life insurance, the premium is flexible. VUL insurance policies typically have both a maximum cap and minimum floor on the investment return associated with the savings component.",investopedia,1,35.57,12.9,16.7,13.92,13.8,9.64,15,16.05
Variance Equation,"The term variance refers to a statistical measurement of the spread between numbers in a data set. More specifically, variance measures how far each number in the set is from the mean and thus from every other number in the set. Variance is often depicted by this symbol: σ2. It is used by both analysts and traders to determine volatility and market security. The square root of the variance is the standard deviation (σ), which helps determine the consistency of an investment’s returns over a period of time.",investopedia,1,53.61,10.2,12.3,9.68,10.1,9,11.4,12.49
Variance Inflation Factor,"Variance inflation factor (VIF) is a measure of the amount of multicollinearity in a set of multiple regression variables. Mathematically, the VIF for a regression model variable is equal to the ratio of the overall model variance to the variance of a model that includes only that single independent variable. This ratio is calculated for each independent variable. A high VIF indicates that the associated independent variable is highly collinear with the other variables in the model.",investopedia,1,43.43,12,13,13.58,13.7,8.7,12.625,12.4
Vasicek Interest Rate Model,"The Vasicek interest rate model (or simply the Vasicek model) is a mathematical method of modeling interest rate movements based on market risk, time, and long-term equilibrium interest rate values.",investopedia,1,24.11,17.4,0,14.81,20.1,11.44,21,17.33
Vault Receipt Definition,"A vault receipt is a legal document given to the owner of a futures contract whose underlying asset is stored in a vault. They are usually used for precious metals such as gold and silver, which are valuable enough to justify storing them in a secured facility.",investopedia,1,56.08,11.3,0,9.17,11.8,10.18,14.25,13.66
Veblen Good,"A Veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol. A Veblen good has an upward-sloping demand curve, which runs counter to the typical downward-sloping curve. However, a Veblen good is generally a high-quality, coveted product, in contrast to a Giffen good, which is an inferior product that does not have easily available substitutes.",investopedia,1,39.67,13.4,15.5,11.84,14.3,9.81,16.16666667,15
VeChain,VeChain is a blockchain platform designed to enhance supply chain management and business processes. Its goal is to streamline these processes and information flow for complex supply chains through the use of distributed ledger technology (DLT).,investopedia,1,53.21,10.3,0,15.6,15,11.11,12,12.76
Vega Neutral,Vega neutral is a method of managing risk in options trading by establishing a hedge against the implied volatility of the underlying asset.,investopedia,1,39.67,13.4,0,12.54,14.2,13.7,15.5,16.16
Vehicle Excise Duty (VED),"Vehicle excise duty (VED) is a tax paid for most UK-driven and parked vehicles. VED does not fit the standard definition of a tax levied at the point of manufacture. For cars registered from April 2017 onwards, rates paid in the first year are related to the vehicle's carbon dioxide emissions, though subsequent payments are not.",investopedia,1,51.52,13,0,10.68,15.8,11.23,12.33333333,16.91
Velocity of Money,"The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. It also refers to how much a unit of currency is used in a given period of time. Simply put, it's the rate at which consumers and businesses in an economy collectively spend money.",investopedia,1,63.19,8.5,12.2,6.49,6.8,8.04,10.75,11.45
Vendor,"A vendor is a party in the supply chain that makes goods and services available to companies or consumers. The term ""vendor"" is typically used to describe the entity that is paid for goods that are provided, rather than the manufacturer of the goods itself. However, it is possible for a vendor to operate as both a supplier (or seller) of goods and a manufacturer.",investopedia,1,49.45,11.8,13.6,8.76,11.2,8.11,14.16666667,12.99
Vendor Financing,Vendor financing is a financial term that describes the lending of money by a vendor to a customer who uses that capital to purchase that specific vendor's product or service offerings.,investopedia,1,40.01,15.4,0,12.14,17.8,10.78,20.5,17.56
What Is a Vendor Note?,"A vendor note is a short-term loan a vendor makes to a customer that is secured by goods the customer buys from the vendor. A vendor note is classified as a form of ""vendor finance"" or ""vendor financing,"" which is a type of lending that usually takes the form of a deferred loan made by a vendor. Vendor notes are most likely to be employed when a vendor has more confidence in a customer's business prospects than a traditional lender (a bank) would.",investopedia,1,60.28,11.7,10.5,7.96,13.4,8.62,15.5,13.49
Vendor Take-Back Mortgage,"A vendor take-back mortgage is a unique kind of mortgage where the seller of the home extends a loan to the buyer to secure the sale of the property. Sometimes referred to as a seller take-back mortgage, this type of loan can benefit both the buyer and the seller. The buyer might be able to purchase property above his bank-determined financing limit, and the seller can get his property sold.",investopedia,1,64.75,10,11.2,9.29,12.1,8.18,13.66666667,11.61
How to Use a Venn Diagram,A Venn diagram is an illustration that uses circles to show the relationships among things or finite groups of things. Circles that overlap have a commonality while circles that do not overlap do not share those traits.,investopedia,1,61.16,9.3,0,11.08,11.1,9.68,11.25,11.72
Venture Capital,"Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions. However, it does not always take a monetary form; it can also be provided in the form of technical or managerial expertise. Venture capital is typically allocated to small companies with exceptional growth potential, or to companies that have grown quickly and appear poised to continue to expand.",investopedia,1,30.91,14.7,17.4,13.99,16,10.23,17.875,17.06
Venture-Capital-Backed IPO,The term venture capital-backed IPO refers to the initial public offering of a company that was previously financed by private investors. These offerings are considered a strategic plan by venture capitalists to recover their investments in the company. Investors normally wait for an opportune time to issue this type of initial public offering in order to maximize their return on investment (ROI).,investopedia,1,33.54,13.7,15.9,13.87,14.7,10.52,15.33333333,15.38
Venture Capital Funds,Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.,investopedia,1,26.81,14.2,0,19.78,19.1,12.89,15,16.02
Venture Capital Trust (VCT),"A venture capital trust (VCT) is a publicly-listed, closed-end fund found in the United Kingdom. designed as a way for individual investors to gain access to venture capital investments via capital markets. Venture capital trusts operate by seeking out potential venture capital investments in small unlisted firms to generate higher-than-average, risk-adjusted returns for its investors. Numerous venture capital trusts are listed on the London Stock Exchange (LSE), which invests in companies that may not even be listed on the exchange itself.",investopedia,1,35.61,15,17.1,15.26,19.2,10.82,19.5,15.74
Venture Capitalist (VC),A venture capitalist (VC) is a private equity investor that provides capital to companies exhibiting high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.,investopedia,1,39.67,13.4,0,13.18,14.9,11.64,16.5,15.29
Venture Philanthropy,"Venture philanthropy is the application or redirection of principles of traditional venture capital (VC) financing to achieve philanthropic endeavors. Often, it is exercised in the context of charitable startups, green companies, or B corporations, as the venture capitalists offering funding to these types of firms will have the greatest breadth of experience in these areas.",investopedia,1,18.18,17.6,0,16.25,20,12.75,21.75,21.91
Verge (XVG),"Verge (XVG) is an open-source, decentralized cryptocurrency that claims to offer completely anonymous transactions by obfuscating the location and the Internet Protocol (IP) address of the transacting participants. Verge trades on leading cryptocurrency exchanges with the symbol XVG.",investopedia,1,7.53,21.7,0,20.37,28.7,13.83,30,25.73
Versioning,"Versioning (also known as ""quality discrimination"") is a business practice in which a company produces different models of essentially the same product and then charges different prices for each model. Versioning a product gives the consumer the option of purchasing a higher valued model for more money or a lower-valued model for less money. In this way, the business is attempting to attract higher prices based on the value a customer perceives.",investopedia,1,38.66,13.8,14.1,12.83,15.3,9.65,15.66666667,12.93
Vertical Analysis,"Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. Thus, line items on an income statement can be stated as a percentage of gross sales, while line items on a balance sheet can be stated as a percentage of total assets or liabilities, and vertical analysis of a cash flow statement shows each cash inflow or outflow as a percentage of the total cash inflows.",investopedia,1,38.32,18.1,0,9.94,20.7,9.91,26,18.84
Vertical Equity,Vertical equity is a method of collecting income tax in which the taxes paid increase with the amount of earned income. The driving principle behind vertical equity is that those who have the ability to pay more taxes should contribute more than those who are not.,investopedia,1,56.59,11.1,0,10.39,12.5,8.55,15.5,14.42
Vertical Integration,"Vertical integration is a strategy whereby a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain. Vertical integration benefits companies by allowing them to control processes, reduce costs and improve efficiencies. However, vertical integration has disadvantages, including the significant amounts of capital investment required.",investopedia,1,3.16,17.1,18.6,19.25,17.9,12.09,16,18.46
Vertical Line Charting Definition and Example,"Vertical line charting is a technique used by technical traders and market technicians to track the price moves of a security. In vertical line charting, the price action over a specified period is summarized by a vertical bar. The security's high and low prices for the period are denoted by the top and bottom of the line, respectively, while its opening and closing prices are indicated by short horizontal bars to the left and right of the vertical bar, respectively.",investopedia,1,44.37,13.7,16.7,10.86,15,9.11,19,16.68
Vertical Market,"A vertical market is a market encompassing a group of companies and customers that are all interconnected around a specific niche. Companies in a vertical market are attuned to that market’s specialized needs and generally do not serve a broader market. As such, vertical markets typically have their own set of business standards. They may also have high barriers to entry for new companies.",investopedia,1,46.78,10.7,13.4,11.77,10.8,8.87,11.25,12.03
Vertical Merger,"A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service. Most often, the merger is effected to increase synergies, gain more control of the supply chain process, and ramp up business. A vertical merger often results in reduced costs and increased productivity and efficiency.",investopedia,1,13.62,25.5,0,13.25,31.6,11.73,12.16666667,27.01
Vertical Spread,"A vertical spread involves the simultaneous buying and selling of options of the same type (i.e., either puts or calls) and expiry, but at different strike prices. The term 'vertical' comes from the position of the strike prices.",investopedia,1,60.65,9.5,0,10.5,11.9,11.23,12,11.81
Vertical Well,"A vertical well is a technique for accessing an underground reserve of oil or natural gas that involves drilling vertically into the ground. Drilling wells vertically is a traditional method of oil extraction, as compared to their more modern counterpart, directional drilling.",investopedia,1,41.7,12.7,0,14.74,15.5,11.07,15.5,16.97
Very Small Aperture Terminal (VSAT),A very small aperture terminal (VSAT) is a two-way ground station that transmits and receives data from satellites. A VSAT is less than three meters tall and is capable of both narrow and broadband data to satellites in orbit in real-time. The data can then be redirected to other remote terminals or hubs around the planet.,investopedia,1,69.41,8.2,10.5,10.04,10.7,9.08,11,10.34
Vested Benefit,"A vested benefit is a financial package granted to employees who have met the term of service required to receive a full, instead of partial, benefit. As an incentive to stay with a company, employers sometimes offer their employees benefits whereby they acquire the full amount gradually or suddenly, as they accumulate more time with the company.",investopedia,1,5.16,26.7,0,12.84,31.3,10.62,20.75,29.12
Vested Benefit Obligation (VBO),Vested benefit obligation (VBO) refers to the actuarial present value of the pension plan that has been earned by employees and is one measure of a firm's pension fund liability.,investopedia,1,41.03,15,0,11.33,17,11.44,20,18.67
Vested Interest,"A vested interest generally refers to a personal stake or involvement in a project, investment, or outcome. In finance, a vested interest is the lawful right of an individual or entity to gain access to tangible or intangible property such as money, stocks, bonds, mutual funds, and other securities at some point in the future. There is usually a vesting period or time span before the claimant may gain access to the asset or property.",investopedia,1,37.64,14.2,16.3,10.33,13.9,11.19,17.83333333,17.47
Vesting,"Vesting is a legal term that means to give or earn a right to a present or future payment, asset, or benefit. It is most commonly used in reference to retirement plan benefits when an employee accrues nonforfeitable rights over employer-provided stock incentives or employer contributions made to the employee's qualified retirement plan account or pension plan.",investopedia,1,34.09,15.6,0,13.52,18.1,10.59,21.25,20.52
Veterans Administration,"Founded at the height of the Great Depression, in 1930, the Veterans Administration was formerly an independent government agency. It became U.S. Cabinet level in 1989 with the title Department of Veterans Affairs. Commonly referred to as ""the VA,"" the organization provides patient care, benefits, and essential services to veterans of the U.S. armed forces and their families.",investopedia,1,39.84,11.3,14.2,13.04,12.1,11.16,11,13.39
Veterans Group Life Insurance (VGLI),"Veterans group life insurance pays cash to the beneficiaries of a deceased member of the armed forces who had completed their service. Veterans Group Life Insurance (VGLI) is for service members who have completed their service and wish to continue to have life insurance coverage carried over from their Servicemembers' Group Life Insurance (SGLI) policy. They have one year and 120 days from the date they become veterans to exercise this option, and VGLI is a renewable term policy.",investopedia,1,44.78,13.5,16.7,12.25,16,9.14,18.83333333,15.58
Vetting,"Vetting is the process of thoroughly investigating an individual, company, or other entity before making a decision to go forward with a joint project. A background review is an example of a vetting process for a potential employee. Once vetted, a well-informed decision can be made.",investopedia,1,47.49,10.4,13.6,11.24,10.6,9.2,11,13.08
Viager,"A ""viager"" is a real estate transaction, popular in France, where the buyer makes a down payment and then a series of payments for as long as the seller is alive.",investopedia,1,56.93,13,0,7.09,14.1,10.27,17.5,14.98
Viatical Settlement,"A viatical settlement is an arrangement in which someone who is terminally or chronically ill sells their life insurance policy at a discount from its face value for ready cash. In exchange for the cash, the seller of the life insurance policy relinquishes the right to leave the policy's death benefit to a beneficiary of their choice.",investopedia,1,42.55,14.4,0,11.32,16.1,8.65,20.75,18.42
Viator,"A viator is a person who has been diagnosed with a terminal or life-threatening illness and decides to sell their life insurance policy. In doing so, viators receive a portion of the death benefits while they are still alive.",investopedia,1,51.68,10.9,0,9.92,10.9,9.46,13.75,16.01
Vicarious Liability,Vicarious liability is a situation in which one party is held partly responsible for the unlawful actions of a third party. The third party also carries his or her own share of the liability. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party and is negligent in carrying out that responsibility and exercising that control.,investopedia,1,31.51,14.5,15.5,11.49,13.4,8.01,16,14.96
Vice Fund,"The Vitium Global Fund, formerly the Vice Fund, is a mutual fund managed by USA Mutuals that focuses its investments on vice industries often considered socially irresponsible investments or ""sin stocks.”",investopedia,1,14.63,18.9,0,15.1,20.5,13.32,25.5,24.01
Video Conferencing,"Video conferencing is a technology that allows users in different locations to hold face-to-face meetings without having to move to a single location together. This technology is particularly convenient for business users in different cities or even different countries because it saves time, expenses, and hassles associated with business travel. Uses for video conferencing include holding routine meetings, negotiating business deals, and interviewing job candidates.",investopedia,1,15.61,16.5,16.7,18.16,18.8,10.79,16.5,15.45
Vienna Stock Exchange (WBAG) .VI,"The Vienna Stock Exchange is the sole securities exchange in Austria and operates the market data hub for Central and Eastern European markets. Operated by the company Wiener Börse AG, the name of the company that operates the exchange. It considers itself a customer and market-oriented company that plays a vital role in Austria’s capital market.",investopedia,1,35.57,12.9,15,12.53,12.5,9.92,13.66666667,13.19
Vintage,"Vintage is a slang term used by mortgage-backed security (MBS) traders and investors to refer to an MBS that is seasoned over some time period. An MBS typically has a maturity of around 30 years, and a particular issue's ""vintage"" exposes the holder to less prepayment and default risk, although this decreased risk also limits price appreciation.",investopedia,1,42.55,14.4,0,11.73,16.9,11.98,18.75,17.01
Vintage Year,"The term ""vintage year"" refers to the milestone year in which the first influx of investment capital is delivered to a project or company. This marks the moment when capital is committed by a venture capital fund, a private equity fund or a combination of sources. Investors may cite the vintage year in order to gauge a potential return on investment (ROI).",investopedia,1,58.92,10.2,14.1,9.75,11.5,9.76,14,12.15
Viral Marketing,"Viral marketing seeks to spread information about a product or service from person to person by word of mouth or sharing via the internet or email. The goal of viral marketing is to inspire individuals to share a marketing message to friends, family, and other individuals to create exponential growth in the number of its recipients.",investopedia,1,34.6,15.4,0,11.49,16,9.54,19,15.49
Viral Website,"A viral website is a website receiving an abnormally large amount of web traffic, usually within a limited span of time, due to word of mouth, link sharing, and social media sharing. Viral sites typically become popular through being shared on social media or forwarded to friends and family, who then forward it to their own network, causing traffic to the site to grow exponentially.",investopedia,1,38.49,16,0,11.27,18.1,10.84,20.75,17.92
Virtual Assistant,"A virtual assistant is an independent contractor who provides administrative services to clients while operating outside of the client's office. A virtual assistant typically operates from a home office but can access the necessary planning documents, such as shared calendars, remotely.",investopedia,1,16.83,16,0,16.94,17.2,11.97,17.25,19.91
Virtual Currency,"Virtual currency is a type of unregulated digital currency that is only available in electronic form. It is stored and transacted only through designated software, mobile or computer applications, or through dedicated digital wallets, and the transactions occur over the internet through secure, dedicated networks. Virtual currency is considered to be a subset of the digital currency group, which also includes cryptocurrencies, which exist within the blockchain network.",investopedia,1,23.05,15.7,18.2,16.89,18,11.5,18.33333333,17.32
Virtual Data Room (VDR),"A virtual data room (VDR), also known as a deal room, is a secure online repository for document storage and distribution. It is typically utilized during the due diligence process preceding a merger or acquisition to review, share, and disclose company documentation.",investopedia,1,11.93,22,0,14,25.1,12.49,15,24.42
Virtual Good,"A virtual good is an intangible asset that is traded in a virtual economy, such as in online games. Virtual goods are by definition nonphysical; their value is determined solely by what users are willing to pay for them.",investopedia,1,51.68,10.9,0,9.17,10.3,9.46,13.75,13.95
Virtual Office,"A virtual office gives businesses a physical address and office-related services without the overhead of a long lease and administrative staff. With a virtual office, employees can work from anywhere but still have things like a mailing address, phone answering services, meeting rooms, and videoconferencing.",investopedia,1,31.72,14.4,0,16.25,17.6,10.02,15.75,16.11
Virtual Reality,"Virtual reality (VR) refers to a computer-generated simulation in which a person can interact within an artificial three-dimensional environment using electronic devices, such as special goggles with a screen or gloves fitted with sensors. In this simulated artificial environment, the user is able to have a realistic-feeling experience.",investopedia,1,4.82,18.6,0,17.12,19.1,13.05,19,20.43
Vis Major,"Vis major is a Latin term that means ""superior force"" and describes an irresistible natural occurrence that causes damage or disruption and that is neither caused by nor preventable by humans—even when exercising the utmost skill, care, diligence, or prudence.",investopedia,1,30.88,18.9,0,14.52,24.6,12.73,27,22
Visa Card,"A Visa card is a payment card that uses the Visa network and is branded by Visa. The company began with just credit cards, but it has since branched out to include debit, prepaid, and gift cards as well. Although Visa cards bear the Visa symbol, they are not issued by the company itself. Instead, they are issued by partnered financial institutions.",investopedia,1,72.66,7,8.8,8.64,8.3,8.48,7.75,7.49
Visibility,"The term ""visibility"" is used to portray the extent to which a company's management or analysts can estimate future performance. Visibility can range from low to high or from the near-term to the long-term.",investopedia,1,54.22,9.9,0,10.73,11,9.12,12,13.86
Visible Supply,"Visible supply is the amount of a good or commodity that is currently being stored or transported that is available to be bought or sold. This supply is important as it identifies a definite quantity of goods available for purchase or delivery upon the assignment of futures contracts. For instance, all of the wheat held in granaries or storage facilities, along with the wheat being transported from farms constitutes part of the visible supply.",investopedia,1,46.4,12.9,15.5,11.96,14.7,9.34,17,15.83
Vision Care Insurance,"Vision care insurance will often cover routine eye health expenses such as eye exams, contact lens fittings, contact lenses, and eyeglass lenses and frames and may provide a discount on LASIK procedures. The plan may cover the cost of these items in full, up to a preset limit, or it may require the policyholder to pay a flat fee or percentage fee to share the expense with the insurer.",investopedia,1,44.92,15.6,0,9.53,17.6,10.84,20.25,17.28
VIX (CBOE Volatility Index),"The Cboe Volatility Index (VIX) is a real-time index that represents the market's expectations for the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants.",investopedia,1,45.39,13.3,15,11.96,15.9,10.45,17.16666667,15.47
VIX Option,"A VIX option is a non-equity index option that uses the CBOE Volatility Index as its underlying asset. Call and put VIX options are both available. The call options hedge portfolios against a sudden market decline, and put options hedge against a rapid reversal of short positions on the S&P 500 index. These options thus allow traders and investors to speculate on future moves in volatility.",investopedia,1,63.19,8.5,10.7,10.73,10.3,10.91,9,10.84
Vladimir Lenin,Vladimir Ilyich Lenin was the architect of Russia’s 1917 Bolshevik revolution and the first leader of what became the Union of Soviet Socialist Republics (USSR). Through violent means he imposed a system of Marxist socialism called communism on the former empire that attempted a redistribution of wealth intended to abolish the aristocracy and create a more equitable society for the masses.,investopedia,1,32.06,16.4,0,14.52,19.4,13.17,22.75,22.04
Vocational Degree,"A vocational degree is an academic certificate awarded to students who have completed the degree requirements for a specific trade or career. Vocational degrees are popular because they typically require less time to complete than a traditional degree program (e.g., associate or bachelor's degree), and upon completion, the student is often ready to begin working the trade. A college undergraduate degree focuses on developing an individual's all-around intelligence and critical-thinking skills, but may not prepare an individual for a specific job. However, vocational degrees offer training for careers, such as medical coding and billing, auto mechanics, cosmetology, electrical work, and legal secretary work.",investopedia,1,11.45,18.1,18.2,16.37,19.5,11.51,19.25,19.64
Voice-over-Internet Protocol (VoIP),"Voice-over-Internet Protocol (VoIP) is communications technology that allows users to interact by audio through an Internet connection, rather than through an analog connection. Voice-over-Internet Protocol converts the voice signal used in traditional phone technology into a digital signal that travels through the Internet instead of through analog telephone lines.",investopedia,1,12.77,17.6,0,19.96,21.7,10.33,19.25,16.33
Void Contract,"A void contract is a formal agreement that is effectively illegitimate and unenforceable from the moment it is created. A void contract differs from a voidable contract because, while a void contract is one that was never legally valid to begin with (and will never be enforceable at any future point in time), voidable contracts may be legally enforceable once underlying contractual defects are corrected. At the same time, void contracts and voidable contracts can be nullified for similar reasons.",investopedia,1,44.37,13.7,14.1,13.06,16.8,9.3,17,15.68
Void Transaction,A void transaction is a transaction that is canceled by a merchant or vendor before it settles through a consumer's debit or credit card account.,investopedia,1,54.56,11.9,0,10.62,13.9,10.56,14.5,11.6
Voidable Contract,A voidable contract is a formal agreement between two parties that may be rendered unenforceable for a number of legal reasons. Reasons that can make a contract voidable include:,investopedia,1,56.76,8.9,0,11.71,10.2,9.8,6.75,7.18
Volatility Arbitrage,"Volatility arbitrage is a trading strategy that attempts to profit from the difference between the forecasted future price-volatility of an asset, like a stock, and the implied volatility of options based on that asset.",investopedia,1,28.51,17.7,0,14.34,21.3,10.9,24,18.31
Volatility Quote Trading,"Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index.",investopedia,1,38.32,11.9,13,12.53,11.5,8.71,11,10.57
Volatility Ratio,The volatility ratio is a technical measure used to identify price patterns and breakouts. In technical analysis it uses true range to gain an understanding of how a security’s price is moving on the current day in comparison to its past volatility.,investopedia,1,41.7,12.7,0,11.14,12.4,9.57,15,15.07
Volume,"Volume is the amount of an asset or security that changes hands over some period of time, often over the course of a day. For instance, stock trading volume would refer to the number of shares of a security traded between its daily open and close. Trading volume, and changes to volume over the course of time, are important inputs for technical traders.",investopedia,1,67.08,9.1,10.5,8.94,10.9,8.19,12.16666667,10.3
Volume Analysis,"Volume analysis is the examination of the number of shares or contracts of a security that have been traded in a given time period. Volume analysis is used by technical analysts as one of many factors that inform their trading decisions. By analyzing trends in volume in conjunction with price movements, investors can determine the significance of changes in a security's price.",investopedia,1,42,12.5,15,12.01,13.1,10.52,14.66666667,16.02
Volume Discount,A volume discount is an economic incentive to encourage individuals or businesses to purchase goods in multiple units or in large quantities. The seller or manufacturer rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume discounts allow businesses to purchase additional inventory at reduced cost and allow sellers or manufacturers to reduce inventories by selling more units to bulk buyers who are incentivized by the lower price.,investopedia,1,37.34,14.3,15.9,13.52,16.2,10.92,17.66666667,17.49
Volume of Trade,"Volume of trade is the total quantity of shares or contracts traded for a specified security. It can be measured on any type of security traded during a trading day. Volume of trade or trade volume is measured on stocks, bonds, options contracts, futures contracts, and all types of commodities.",investopedia,1,62.98,8.6,10.5,10.15,10.1,9.83,9,9.88
Volume Price Trend Indicator (VPT),"The volume price trend (VPT) indicator helps determine a security’s price direction and strength of price change. The indicator consists of a cumulative volume line that adds or subtracts a multiple of the percentage change in a share price’s trend and current volume, depending upon the security’s upward or downward movements.",investopedia,1,19.71,23.2,0,14.87,29.9,12.05,17.75,25.89
Volume Weighted Average Price (VWAP),"The volume weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security.",investopedia,1,29.19,21.6,0,10.75,26.1,10.85,15,21.6
Volumetric Production Payment (VPP),"A Volumetric Production Payment (VPP) is a type of structured investment that involves the owner of an oil or gas interest selling or borrowing money against a specific volume of production associated with that field or property. The investor or lender receives a stated monthly quota – often in raw output, which is then marketed by the VPP buyer – or, a specified percentage of the monthly production achieved at the given property.",investopedia,1,25.97,18.7,0,11.62,20.2,11.07,25.25,20.63
Voluntary Accidental Death and Dismemberment Insurance (VAD&D),Voluntary accidental death and dismemberment insurance (VAD&D) is a financial protection plan that provides a beneficiary with cash in the event that the policyholder is accidentally killed or loses a specific body part. VAD&D is a limited form of life insurance and is generally less expensive than a full life insurance policy.,investopedia,1,28.17,15.8,0,13.35,16.8,10.7,21,21.17
Voluntary Accumulation Plan,"A voluntary accumulation plan offers a mutual fund investor a way to accumulate a large number of shares over time by investing a manageable fixed-dollar amount on a regular schedule, usually monthly. The small investor gets the opportunity to take advantage of the dollar-cost averaging strategy.",investopedia,1,22.75,15.8,0,14.16,15.9,11.64,18.5,19.63
Voluntary Bankruptcy,Voluntary bankruptcy is a type of bankruptcy where an insolvent debtor brings the petition to a court to declare bankruptcy because they are unable to pay off their debts. Both individuals and businesses are able to use this approach.,investopedia,1,51.68,10.9,0,11.55,12,9.87,13.75,13.95
Voluntary Compliance,"Voluntary compliance refers to the principle that citizens will cooperate with their government by filing honest and accurate annual returns. The U.S. income tax system operates under this assumption, though not without checks and balances.",investopedia,1,36.79,12.5,0,15.72,15.1,12.17,13.75,17.29
Voluntary Conveyance,"Voluntary conveyance refers to an elective transfer of title from one individual to another without adequate consideration. Consideration refers to compensation which is expected in return for the property. Without it, the conveyor should be prepared to offer a legal explanation for the transfer.",investopedia,1,31.17,12.6,14.1,15.07,13.1,9.75,11,14.06
Voluntary Employees' Beneficiary Association (VEBA),"Voluntary Employees’ Beneficiary Association (VEBA) is a type of mutual organization that provides life, illness, accident, medical, and similar benefits to members, their dependents, or their beneficiaries.",investopedia,1,-15.16,22.1,0,19.96,23.6,14.33,25.5,27.1
Voluntary Employees Beneficiary Association Plan,"A Voluntary Employees' Beneficiary Association (VEBA) plan is a type of tax-exempt trust used by its members and eligible dependents to pay for eligible medical expenses. The plan is typically funded by an employer. Depending on the company plan employee contributions may or may not be mandatory, although individual elections are not permitted.",investopedia,1,19.67,14.9,17.5,13.92,13.7,11.37,15.16666667,19.16
Voluntary Export Restraint (VER),A voluntary export restraint (VER) is a trade restriction on the quantity of a good that an exporting country is allowed to export to another country. This limit is self-imposed by the exporting country.,investopedia,1,54.22,9.9,0,10.55,10.6,9.12,12,11.51
Voluntary Foreclosure,"A voluntary foreclosure is a foreclosure proceeding that is initiated by a borrower who is unable to continue making loan payments on a property, in an attempt to avoid further payments and prevent involuntary foreclosure and eviction. Borrowers may choose this option if their mortgage is significantly underwater.",investopedia,1,21.74,16.2,0,15.03,16.9,11.08,18.5,18.77
Voluntary Lien,"A voluntary lien is a claim that one person has over the property of another as security for the payment of a debt. Liens are attached to the property and not to a person. A voluntary lien is contractual or consensual, meaning that the lien is created by an action taken by the debtor, such as a mortgage loan to buy real estate.",investopedia,1,58.62,10.3,13,6.85,9,8.69,13.5,12.21
Voluntary Life Insurance,Voluntary life insurance is a financial protection plan that provides a cash benefit to a beneficiary upon the death of the insured. It’s an optional benefit offered by employers. The employee pays a monthly premium in exchange for the insurer’s guarantee of payment upon the insured’s death. Employer sponsorship generally makes premiums for voluntary life insurance policies less expensive than individual life insurance policies sold in the retail market.,investopedia,1,22.75,15.8,18.6,15.55,16.8,11.18,14.125,19.63
Voluntary Liquidation,A voluntary liquidation is a self-imposed wind-up and dissolution of a company that has been approved by its shareholders. Such a decision will happen once a company's leadership decides that the company has no reason to continue operating. It is not ordered by a court (not compulsory).,investopedia,1,47.08,10.6,15,11.19,10.6,9.12,12.16666667,14.79
Voluntary Plan Termination,"Voluntary plan termination is the discontinuance of a defined-benefit plan by an employer. Since an employer is not legally required to provide a retirement plan to employees, it can terminate an established plan.",investopedia,1,37.81,12.1,0,13.69,12.8,10.68,13.25,17.51
Voluntary Reserve,A voluntary reserve is a sum of cash that is held by an insurance company over and above any minimum required by government regulators.,investopedia,1,47.12,12.7,0,9.87,12.6,8.77,18,16.27
Voluntary Simplicity,"Voluntary simplicity is a lifestyle choice that minimizes the needless consumption of material goods and the pursuit of wealth for its own sake. It is sometimes referred to as ""simple living,"" ""the simple life,"" or ""downshifting."" People embrace voluntary simplicity to create less complicated and more meaningful lives for themselves and their families, and to reduce the negative impact that unnecessary consumption can have on the environment.",investopedia,1,40.38,13.2,15.9,14.97,16.5,9.93,16.16666667,16.08
Voluntary Termination,"Voluntary termination may refer to a variety of actions, but most commonly, it refers to an employee's decision to leave a job on their own accord. It differs from a layoff or a firing, in which the decision to end employment was made by the employer or another party, rather than the employee.",investopedia,1,44.58,13.6,0,8.71,13.3,9.42,18.75,17.39
Voluntary Trust,"A voluntary trust is a type of living trust that is created during the lifetime of the trustor and is also known as an inter vivos trust. In a voluntary trust, the trustor retains the legal title of the gift transferred to the beneficiary, even though the beneficiary has actual title and possession and ability to carry out actions of the trust. A voluntary trust is also defined as an obligation arising out of a personal confidence reposed in, and voluntarily accepted by, one individual for the benefit of another. This is in contrast to an involuntary trust, which is created by law.",investopedia,1,45.29,13.4,15.6,9.87,13.7,9.06,17,15.76
Vomma,"Vomma is the rate at which the vega of an option will react to volatility in the market. Vomma is part of the group of measures, such as delta, gamma, and vega, known as the ""Greeks"" which are used in options pricing.",investopedia,1,75.54,7.9,0,5.92,8.8,8.81,11,9.35
Voodoo Accounting,"The term voodoo accounting refers to a creative and unethical method of accounting that artificially inflates figures found on a company's financial statements. Voodoo accounting employs numerous accounting gimmicks to boost the bottom line by inflating revenue, concealing expenses, or both.",investopedia,1,25.29,14.8,0,17.64,17.8,12.36,16.25,16.98
Voodoo Economics,"Voodoo economics is a derogatory phrase used by George H.W. Bush in reference to President Ronald Reagan's economic policies, which came to be known as ""Reaganomics.""",investopedia,1,75.2,6,0,11.93,10.8,12.78,8,12.89
Vortex Indicator (VI),A vortex indicator (VI) is an indicator composed of two lines - an uptrend line (VI+) and a downtrend line (VI-). These lines are typically colored green and red respectively. A vortex indicator is used to spot trend reversals and confirm current trends.,investopedia,1,57.27,8.8,11.2,9.74,9.4,9.59,8.166666667,9.41
Vostro Account,"A vostro account is an account a correspondent bank holds on behalf of another bank. These accounts are an essential aspect of correspondent banking in which the bank holding the funds acts as custodian for or manages the account of a foreign counterpart. For example, if a Spanish life insurance company approaches a U.S. bank to manage funds on the Spanish life insurer's behalf, the account is deemed by the holding bank as a vostro account of the insurance company.",investopedia,1,44.37,13.7,15,10.74,14.9,9.5,17.66666667,14.68
Voting Shares,"Voting shares are those shares that give the stockholder the right to vote on matters of corporate policymaking. Owning voting shares also allows a vote on who should be on the company’s board of directors. In most instances, a company's common stock represents voting shares.",investopedia,1,57.1,10.9,0,12.42,14.2,9.66,8.833333333,15.22
Voting Trust,"A voting trust is a legal trust created to combine the voting power of shareholders by temporarily transferring their shares to the trustee. In exchange for their shares, shareholders receive certificates indicating they are beneficiaries of the trust. The trustee is often obligated to vote in accord with the wishes of these participating shareholders.",investopedia,1,44.75,11.5,14.1,14.32,13.8,9.21,12.66666667,13.87
Voting Trust Agreements,"A voting trust agreement is a contractual agreement in which shareholders with voting rights transfer their shares to a trustee, in return for a voting trust certificate. This gives the voting trustees temporary control of the corporation.",investopedia,1,52.7,10.5,0,14.1,13.7,10.53,11.75,12.81
Voting Trust Certificate,"A voting trust certificate is a document issued by a limited-life trust of a corporation established to give temporary voting control of a corporation to one or a few individuals. A voting trust certificate is issued to a stockholder in exchange for his or her common stock, and represents all of the normal rights of a shareholder (e.g., receiving dividends) except the right to vote. The life of a voting trust certificate in many cases ranges from two to five years, at which point the common stock, with voting rights, is returned to the shareholder.",investopedia,1,47.76,14.5,16.3,10.63,17.2,9.2,21.16666667,17.73
Voucher,A voucher is a document used by a company’s accounts payable department to gather and file all of the supporting documents needed to approve the payment of a liability. A voucher is essentially the backup document for accounts payable. Accounts payable are the short-term bills owed by companies to vendors and suppliers.,investopedia,1,45.46,11.2,13.6,12.12,11.7,9.96,12,13.84
Voucher Check,"A voucher check is a combination of a check and a voucher, also known as ""remittance advice,"" which includes pertinent information about the parties to the transaction and thus creates an auditable paper trail about that check's payment.",investopedia,1,32.91,18.1,0,12.95,22.3,11.34,24,20.46
Voyage Policies,"A voyage policy is marine insurance coverage for risks to a ship's cargo during a specific voyage. Unlike most insurance policies it is not time-based but expires when the ship arrives at its destination. It covers only the cargo, not the ship that carries it.",investopedia,1,56.25,9.1,11.2,9.21,8.7,10.35,8.5,10.44
Vulture Capitalist,A vulture capitalist is an investor who seeks to extract value from companies in decline. The goal is to swoop in when sentiment is low–and the company is trading at a rock bottom price–and take whatever action is necessary to engineer a quick turnaround and sell it on for a profit.,investopedia,1,54.05,12.1,0,9.29,12.8,9.55,16.25,14.12
Vulture Fund,"A vulture fund is an investment fund that seeks out and buys securities in distressed investments, such as high-yield bonds in or near default, or equities that are in or near bankruptcy. The goal is to 'swoop in' and pick up underpriced shares that are perceived to have been oversold to make high-risk but potentially high-reward bets.",investopedia,1,59.47,12,0,10.68,16,11.14,18.25,16.31
VWAP Cross,A VWAP cross is a trading indicator that occurs when a security’s price crosses the volume-weighted average price (VWAP).,investopedia,1,43.73,11.9,0,12.94,13.6,12.06,13.5,13.92
VXN (CBOE Nasdaq Volatility Index),"The CBOE Nasdaq Volatility Index (VXN) is a measure of market expectations of 30-day volatility for the Nasdaq 100 index, as implied by the prices of options listed on this index. The Chicago Board Options Exchange (CBOE) launched the VXN on January 23, 2001.",investopedia,1,57.61,10.7,0,10.27,12.9,10.47,13,10.62
W-2 Form,"Form W-2, also known as the Wage and Tax Statement, is the document an employer is required to send to each employee and the Internal Revenue Service (IRS) at the end of the year. A W-2 reports employees' annual wages and the amount of taxes withheld from their paychecks. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government.",investopedia,1,56.89,11,13.6,10.16,12.7,9.64,14.66666667,13.2
W-4 Form,"Form W-4 is an Internal Revenue Service (IRS) tax form that is filled out by employees to indicate their tax situation to their employer. The W-4 form tells the employer the amount of tax to withhold from an employee's paycheck based on their marital status, number of allowances and dependents, and other factors. The W-4 is also called an Employee's Withholding Allowance Certificate.",investopedia,1,50.16,11.5,14.6,11.6,13.4,10.69,14.5,14.75
W-8 Form,"W-8 forms are Internal Revenue Service (IRS) forms that foreign individuals and businesses must file to verify their country of residence for tax purposes, certifying that they qualify for a lower rate of tax withholding. Although the W-8 forms are issued by the IRS, they are submitted only to payers or withholding agents, not to the IRS. Failure to submit the form may result in a withholding at the full 30% rate that applies to foreign entities.",investopedia,1,45.39,13.3,15,10.33,14.3,10.45,17.16666667,15.99
W-9 Form,"A W-9 form is an Internal Revenue Service (IRS) tax form that is used to confirm a person's name, address, and taxpayer identification number (TIN) for employment or other income-generating purposes. The confirmation can be requested for either an individual defined as a U.S. citizen or a person defined as a resident alien.",investopedia,1,27.66,16,0,11.49,16.1,10.91,18.75,18.15
W-Shaped Recovery,"A W-shaped recovery refers to an economic cycle of recession and recovery that resembles the letter W in charting. A W-shaped recovery represents the shape of the chart of certain economic measures such as employment, gross domestic product (GDP), industrial output, and others.",investopedia,1,41.19,12.9,0,13.34,15.2,11.68,16.25,16.04
Wage Assignment,"Wage assignment is the act of taking money directly from an employee's paycheck in order to pay back a debt obligation. Wage assignments may be either voluntary or involuntary, depending on the situation.",investopedia,1,29.52,17.3,0,13.36,20,11.02,12.75,24.11
Wage Earner Plan (Chapter 13 Bankruptcy),"A wage earner's plan, known more formally as Chapter 13 bankruptcy, enables individuals with a regular income to restructure their obligations to repay their debt over time.",investopedia,1,35.61,15,0,14.16,18.1,11.99,19.5,19.69
Wage Expense,A wage expense is the cost incurred by companies to pay hourly employees. This line item may also include payroll taxes and benefits paid to employees. A wage expense may be recorded as a line item in the expense portion of the income statement. This is a type of variable cost.,investopedia,1,75.4,5.9,8.8,7.53,6.2,9.23,6.375,7.47
Wage-Price Spiral,"The wage-price spiral is a macroeconomic theory used to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. The wage-price spiral suggests that rising wages increase disposable income raising the demand for goods and causing prices to rise. Rising prices increase demand for higher wages, which leads to higher production costs and further upward pressure on prices creating a conceptual spiral.",investopedia,1,49.86,11.6,13,16.36,17.2,10.12,13.66666667,13.52
Wage Push Inflation,"Wage push inflation is an overall rise in the cost of goods that results from a rise in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a circular effect on the wage increase; eventually, as goods and services in the market overall increase, higher wages will be needed to compensate for the increased prices of consumer goods.",investopedia,1,60.69,11.6,11.2,11.09,15.5,9.03,15.66666667,13.85
Waiting Period,A waiting period is the amount of time an insured must wait before some or all of their coverage comes into effect. The insured may not receive benefits for claims filed during the waiting period. Waiting periods may also be known as elimination periods and qualifying periods.,investopedia,1,47.08,10.6,13,10.79,9.8,8.45,10.83333333,11.39
Waiver,A waiver is a legally binding provision where either party in a contract agrees to voluntarily forfeit a claim without the other party being liable.,investopedia,1,37.64,14.2,0,11.55,14.4,11.19,14.5,13.2
Waiver of Demand,"A waiver of demand is a legal agreement given by a party who has endorsed a check or a bank draft. It states that, should the original issuer of the check or draft default, the endorser will take responsibility for honoring that check or draft on the issuer’s behalf.",investopedia,1,63.53,10.5,0,8.48,11.9,9.36,14.25,13.07
Waiver of Coinsurance Clause,"A waiver of coinsurance clause is a provision in an insurance contract stating that the insurer will not require the policyholder to pay coinsurance, or a percentage of the total claim, under certain conditions.",investopedia,1,28.51,17.7,0,13.36,20.3,11.82,25,21.84
Waiver of Exemption,"A waiver of exemption was a provision in a consumer credit contract or loan agreement which allowed creditors to seize, or threaten the seizure, of specific personal possessions or property. The property attached by the loan could include a borrower's primary place of residence. Lenders could enact this clause, even if state law held the property exempt from seizure.",investopedia,1,51.48,11,14.6,12.71,13.3,11.3,13.83333333,14.66
Waiver of Notice,"A waiver of notice is a document individuals sign which legally waives their rights to receive formal notices regarding certain probate issues. For example, let's assume a family patriarch named Charley passes away, and that his estate is meant to be distributed among his three children: Michael, Sally, and Melissa, who are his sole heirs. Under normal circumstances, the probate court must issue a public notice regarding proceedings pertaining to the probate of Charley's will. However, if Michael, Sally, and Melissa--all of whom have deeply vested interests in Charley's assets, consent to waivers of notice, an appointed administrator or executor may attend in their places. By sending such representatives in their stead, courts can accelerate the the probate process, thus benefitting Charley's heirs by ultimately allowing them to receive their inheritances faster, as a result.",investopedia,1,44.07,13.8,15.1,14.28,18.4,11.06,16.5,16.43
Waiver of Premium for Disability,"Waiver of premium for disability is a provision in an insurance policy that states the insurance company will not require the insured to pay the premium if they are seriously injured. Insurance companies can vary in their definition of a disability, and policies can vary on when and for how long they will waive a premium in the event of a disability. It is important to note that insurance companies may charge a higher premium to include this waiver in the policy.",investopedia,1,43.77,13.9,17.9,10.28,14.6,8.46,20.33333333,14.82
Waiver of Premium for Payer Benefit,A waiver of premium for payer benefit rider in an insurance policy states the insurance company will not require the payor to pay premiums to maintain the plan under certain conditions. The life insurance company operates as a payor when there is an event that qualifies under the waiver of premium for payer benefit.,investopedia,1,35.61,15,0,11.15,15.1,9.07,20.5,16.73
Waiver of Premium Rider,"A waiver of premium rider is an insurance policy clause that waives premium payments if the policyholder becomes critically ill, seriously injured, or disabled. Other stipulations may apply, such as meeting specific health and age requirements. Policyholders may want to purchase a waiver if they are concerned about making ends meet if they are injured on the job, for example.",investopedia,1,2.12,27.9,0,14.17,33.9,12.4,14,31.33
Waiver of Restoration Premium,"In the insurance industry, a waiver of restoration premium is a legal clause stating that the policyholder will not be charged an additional fee, or “restoration premium,” if their coverage continues after paying out a claim.",investopedia,1,26.48,18.5,0,13.3,21.4,12.44,26,22.18
Waiver of Subrogation,"A waiver of subrogation is a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party. Typically, insurers charge an additional fee for a waiver of subrogation endorsement. Many construction contracts and leases include a waiver of subrogation clause.",investopedia,1,-8.72,27.9,0,15.91,32.2,13.04,13.66666667,30.49
Walk-Away Lease,A walk-away lease is an auto lease that allows the lessee to return the car at the end of the lease period without any financial obligations based on the car’s residual value.,investopedia,1,47.46,14.6,0,9.06,15.8,9.66,21,17.8
Walk-Through Test,"A walk-through test is a procedure used during an audit of an entity's accounting system to gauge its reliability. A walk-through test traces a transaction step-by-step through the accounting system from its inception to the final disposition. However, walk-throughs aren’t required for accountants but can be instrumental in addressing weaknesses and problems.",investopedia,1,37,12.4,15,15.89,15.3,10.57,13,15.38
Wall of Worry,"Wall of worry is the financial markets' periodic tendency to surmount a host of negative factors and keep ascending. Wall of worry is generally used in connection with the stock markets, referring to their resilience when running into a temporary stumbling block, rather than a permanent impediment to a market advance.",investopedia,1,37.13,14.4,0,13.06,16.1,10.47,18.25,18.83
Wall Street,"Wall Street is literally a street located in New York City—at the southern end of Manhattan, to be precise. But figuratively, Wall Street is much more: a synonym for the financial industry and the firms within it. This connotation has its roots in the fact that so many brokerages and investment banks historically have established HQs in and around the street, all the better to be close to the New York Stock Exchange (NYSE).",investopedia,1,54.86,11.7,14.1,10.04,13.4,9.13,16,15.83
Wall Street Journal Prime Rate,The Wall Street Journal Prime Rate is an aggregate average of the various prime rates that 10 of the largest banks in the United States charge to their highest credit quality customers for loans with relatively short-term maturities. This combined rate is obtained by way of a market survey and published regularly by The Wall Street Journal (WSJ).,investopedia,1,50.5,13.4,0,11.91,16.7,11.06,18,16.43
Wallflower,"A wallflower describes a stock in which the investment community has lost interest, resulting in low trading volumes.",investopedia,1,44.75,11.5,0,13.98,13.8,11.55,13,16.09
Wallpaper,"Wallpaper is the name given to stocks, bonds, and other securities that have become worthless. This colloquialism saw its beginnings when stocks and bonds existed as printed, physical certificates rather than digital identifying information stored on a brokerage's server.",investopedia,1,34.76,13.3,0,16.77,16.7,11.49,15.25,19.08
Walmart Effect,The Walmart Effect is a term used to refer to the economic impact felt by local businesses when a large company like Walmart (WMT) opens a location in the area. The Walmart Effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Walmart stores into their territories for these reasons.,investopedia,1,40.99,12.9,14.6,12.59,14.1,11.03,14.83333333,14.83
Walras' Law,"Walras's law is an economic theory, which states that the existence of excess supply in one market must be matched by excess demand in another market so that both factors are balanced out. Walras's law asserts that an examined market must be in equilibrium if all other markets are in equilibrium. Keynesian economics, by contrast, assumes that one market can be out of balance without a ""matching"" imbalance elsewhere.",investopedia,1,48.13,12.3,13.6,11.67,14,9.58,14.83333333,13.84
Walrasian Market,A Walrasian Market is an economic model of a market process in which orders are collected into batches of buys and sells and then analyzed to determine a clearing price that will decide the market price. This is also referred to as a call market.,investopedia,1,57.1,10.9,0,8.77,11,9.31,13.25,12.56
Wanton Disregard,Wanton disregard is a legal term that denotes an individual's extreme lack of care for the well-being or rights of another individual.,investopedia,1,32.22,14.2,0,11.72,13.8,11.19,16,14.25
War Bond,"A war bond is a debt security issued by a government to finance military operations during times of war or conflict. Because war bonds offered a rate of return below the market rate, investment was achieved by making emotional appeals to patriotic citizens to lend the government money.",investopedia,1,38.66,13.8,0,11.55,14,10.42,16.5,15.43
War Chest,"War Chest is a colloquial term for the reserves of cash set aside or built up by a company to take advantage of an unexpected opportunity. While a war chest is typically used for acquisitions of other companies or businesses, it can also be used as a buffer against adverse events during uncertain times. A war chest is often invested in short-term investments, such as treasury bills and bank deposits, which can be accessed on-demand.",investopedia,1,46.1,13,15,10.39,13.8,9.3,16.83333333,15.87
War Damage Insurance,"The War Damage Corporation was an initiative launched by the United States government during World War II. First established in 1941, the purpose of the program was to provide American citizens with insurance against the risk of property damage due to war.",investopedia,1,50.16,11.5,0,12.01,13.2,9.57,14.5,14.11
War Economy,"War economy is the organization of a country's production capacity and distribution during a time of conflict. A war economy must make substantial adjustments to its consumer production to accommodate defense production needs. In a war economy, governments must choose how to allocate their country’s resources very carefully in order to achieve military victory while also meeting vital domestic consumer demands.",investopedia,1,25.49,14.7,17.1,15.9,16.1,10.34,16.16666667,16.64
War Exclusion Clause,"A war exclusion clause in an insurance policy specifically excludes coverage for acts of war, such as invasions, insurrections, revolutions, military coups, and terrorism. A war exclusion clause in an insurance contract refers to the protection of an insurer who will not be obligated to pay for losses caused by war-related events. Insurance companies commonly exclude coverage perils on which they cannot afford to pay claims.",investopedia,1,40.69,13.1,17.9,13.98,15.6,11.43,17.66666667,18.5
War Risk Insurance,"War risk insurance is an insurance policy that provides financial protection to the policyholder against losses from events such as invasions, insurrections, riots, strikes, revolutions, military coups, and terrorism.",investopedia,1,8.2,19.3,0,19.91,23.9,14.33,25.5,25.39
Warehouse Bond,"A warehouse bond provides financial protection for individuals or businesses storing goods in a storage facility. The bond gives protection for any losses if the event the storage facility fails to live up to the contract terms. If the operator of the warehouse fails to meet its contractual obligations, a third-party surety company, acting as an intermediary, will compensate the client for loss.",investopedia,1,39.5,15.6,0,14.63,20.3,11.21,15.16666667,18.95
Warehouse Financing,"Warehouse financing is a form of inventory financing that involves a loan made by a financial institution to a company, manufacturer, or processor. Existing inventory, goods, or commodities are transferred to a warehouse and used as collateral for the loan. Warehouse financing is most often used by smaller privately-owned firms, particularly those in commodities-related businesses, that do not have access to other options.",investopedia,1,24.78,15,16.7,15.2,16.3,9.94,16.16666667,16.65
Warehouse Lending,Warehouse lending is a line of credit given to a loan originator. The funds are used to pay for a mortgage that a borrower uses to purchase property. The life of the loan generally extends from its origination to the time it is sold on the secondary market either directly or through securitization.,investopedia,1,53.51,10.2,11.9,9.1,9.4,9.28,11.16666667,12.36
Warehouse Receipt,"A warehouse receipt is a type of documentation used in the futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility. Warehouse receipts are important because they serve as proof that the commodity is in the warehouse and that the proper documentation has been verified. Commodities need to meet specific quality standards in order to be traded as a futures contract, and the warehouse receipts play a role in verifying that the necessary requirements have been met.",investopedia,1,34.29,15.5,16.7,13.12,17.4,10.06,19.83333333,17.44
Warehouse-to-Warehouse Clause,A warehouse-to-warehouse clause is a provision in an insurance policy that provides for coverage of cargo in transit from one warehouse to another. A warehouse-to-warehouse clause usually covers cargo from the moment it leaves the origin warehouse until the moment it arrives at the destination warehouse. Separate coverage is necessary to insure goods before and after the transit process.,investopedia,1,34.56,13.3,14.6,14.79,15,9.43,13.83333333,12.63
Warehouser's Liability Form,"A warehouser’s liability form is a document that describes the obligations of a storage facility toward its customers. Warehouse owners and operators can be held liable if the goods being stored in their warehouse are destroyed, damaged, or stolen. Thus, the warehouser's liability insurance exists to protect owners and operators against the costs of legal defense, damage awards, and other expenses related to a damage claim.",investopedia,1,40.69,13.1,14.1,13.75,15.4,10.95,14.66666667,14.25
Warehousing,"Warehousing is an intermediate step in a collateralized debt obligation (CDO) transaction that involves purchasing loans or bonds that will serve as collateral in a contemplated CDO transaction. The warehousing period typically lasts three months, and it comes to an end upon closing of the transaction when they are ultimately securitized and sold as part of the CDO.",investopedia,1,33.58,15.8,0,13.94,18.3,10.79,22,19.88
Warm Calling,"Warm calling is the solicitation of a potential customer with whom a sales representative in particular, or his firm in general, has had prior contact. It refers to a sales call, visit or email that is preceded by some sort of contact with the prospect, such as a direct mail campaign, an introduction at a business event or a referral.",investopedia,1,49.49,13.8,0,9.41,15.3,9.34,19,16.67
Warm Card,"A warm card is a type of bank card that provides restricted access to a business account. It is given to an employee who needs to have limited access to a company's financial accounts. Typically, these cards allow deposits but not withdrawals.",investopedia,1,65.73,7.6,11.2,9.33,8.2,9.59,8,11.31
Warning Bulletin,"The warning bulletin is a list of canceled, past due, or stolen credit cards. Created by the two biggest credit card vendors, MasterCard and Visa, and issued weekly in paper format, the list is now online and updated in real time. The vendors instruct merchants to obtain authorization before accepting the cards listed and engage certain protocols when collecting cards that have been flagged for improper use.",investopedia,1,48.84,12,12.5,12.25,14,11.11,13.83333333,13.7
Warrant Coverage,"Warrant coverage is an agreement between a company and one or more shareholders where the company issues a warrant equal to some percentage of the dollar amount of an investment. Warrants, similar to options, allow investors to acquire shares at a designated price.",investopedia,1,49.65,11.7,0,12.42,13.9,9.84,14.75,14.18
Warrant Premium,A warrant premium is the difference between the current traded price of a warrant and its minimum value. A warrant's minimum value is the difference between its exercise price and the current traded price of its underlying stock.,investopedia,1,43.73,11.9,0,11.72,12,7.9,13,11.81
Warranty,A warranty is a type of guarantee that a manufacturer or similar party makes regarding the condition of its product. It also refers to the terms and situations in which repairs or exchanges will be made if the product does not function as originally described or intended.,investopedia,1,47.62,12.5,0,10.68,13,10.85,16.25,17.06
Warranty Deed,"A warranty deed is a document often used in real estate that provides the greatest amount of protection to the purchaser of a property. It pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it.",investopedia,1,56.08,11.3,0,11.03,13.4,9.84,15.75,15.36
Warranty of Title,"A warranty of title is a guarantee by a seller to a buyer that the seller has the right to transfer ownership and no one else has rights to the property. In addition, a warranty of title may be used to guarantee that no other party has copyright, patent or trademark rights in the property being transferred.",investopedia,1,51.01,13.2,0,8.25,13.6,8.65,18.25,14.91
Warsaw Stock Exchange (WSE),"The Warsaw Stock Exchange (WSE) is the largest stock exchange in Central and Eastern Europe and one of the most recognized financial institutions in Poland. It runs financial and commodities markets to trade instruments such as company shares, bonds, derivatives, and spot and forward contracts for electricity and natural gas.",investopedia,1,46.1,13,0,14.68,17.4,10.56,17.5,15.6
Wash,"A wash is a series of transactions that result in a net sum gain of zero. An investor, for example, can lose $100 on one investment and gain $100 in another investment. That's a wash. But the tax implications can be complicated for the investor.",investopedia,1,68.47,6.5,10.7,6.3,5.2,7.71,6.375,8.96
Wash-Out Round,"A wash-out round (also known as ""burn-out round"" or ""cram-down deal"") is when a round of new financing usurps control of previous equity holders. When such financing is done, the new issuance drastically dilutes the ownership stake of previous investors and owners. New investors are thus able to take control of the company because the previous owners are in desperate need of more financing to avoid bankruptcy. Wash-out rounds are most often associated with smaller companies or with startup ventures that lack financial stability or a strong management team.",investopedia,1,48.84,12,14.9,13.06,14.9,9.71,15.375,14.31
Wash Sale,"A wash sale is a transaction in which an investor seeks to maximize tax benefits by selling a losing security at the end of a calendar year so they can claim a capital loss on taxes that year. The investor's intent is likely to repurchase the security again after the start of the new year, if possible even lower than where they sold. Such wash sales are a method investors have historically considered to recognize a tax loss without limiting their exposure to opportunity they perceive in owning a particular security. The IRS uses the wash-sale rule to eliminate the incentive to arbitrarily sell and reacquire the same security around the end of the calendar years.",investopedia,1,42.04,14.6,16.5,10.69,15.6,9.57,17,16.77
Wash-Sale Rule,"The wash-sale rule is an Internal Revenue Service (IRS) regulation that prevents a taxpayer from taking a tax deduction for a security sold in a wash sale. The rule defines a wash sale as one that occurs when an individual sells or trades a security at a loss and, within 30 days before or after this sale, buys a ""substantially identical"" stock or security, or acquires a contract or option to do so. A wash sale also results if an individual sells a security, and the individual's spouse or a company controlled by the individual buys a substantially equivalent security.",investopedia,1,29.22,17.5,17.1,10.17,17.7,9.55,22.66666667,17.32
Wash Trading,"Wash trading is a process whereby a trader buys and sells a security for the express purpose of feeding misleading information to the market. In some situations, wash trades are executed by a trader and a broker who are colluding with each other, and other times wash trades are executed by investors acting as both the buyer and the seller of the security. Wash trading is illegal under U.S. law, and the IRS bars taxpayers from deducting losses that result from wash trades from their taxable income.",investopedia,1,42.04,14.6,14.1,10.51,15.6,10.88,18.16666667,15.74
Wassily Leontief,"Wassily Leontief was a Nobel Prize-winning Russian-American economist and professor who contributed several insightful theories to economics. Leontief’s Nobel Prize research focused on input-output analysis, which breaks down the sectors of the economy and discusses how changes in one sector of the economy can affect other sectors.",investopedia,1,22.24,16,0,17.7,19.1,12.87,18.75,17.91
Wasting Asset,A wasting asset is an item that has a limited life span and irreversibly declines in value over time. Such depreciating fixed assets could be vehicles and machinery.,investopedia,1,57.27,8.8,0,10.32,8.8,10.53,8.5,11.31
Wasting Trust Definition,"A wasting trust is so named because its assets are depleted over time as plan participants receive payouts as required under the plan. The trust receives no new contributions, so the principal declines. A wasting trust may also refer to income trusts which hold depleting assets, such as oil and gas assets.",investopedia,1,62.38,8.9,10.5,10.44,10.4,8.75,10.33333333,10.77
Watchlist,A watchlist is a set of securities that are monitored for potential trading or investing opportunities.,investopedia,1,29.86,13.1,0,13.98,12.5,11.34,13,18.9
Water Damage Insurance,"Water damage insurance is a type of protection provided in most homeowners insurance policies against sudden and accidental water damage. Water damage insurance does not cover damage resulting from the homeowners' negligence or failure to maintain the home in good repair. Moreover, flooding usually requires a separate policy if available.",investopedia,1,29.14,13.3,15,15.6,14.3,10.15,12.66666667,14.68
Water Damage Legal Liability Insurance,Water damage legal liability insurance refers to a type of policy that provides financial protection to a person or business that unintentionally causes water damage to the property of another.,investopedia,1,7.19,19.7,0,14.81,19.3,11.44,23,21.33
Water Exclusion Clause,"A water exclusion clause is a restriction in homeowners and renter's insurance policies that denies coverage for some water-related claims. Events that are likely to fall under a water exclusion clause include damage caused by flood, tsunamis, standing water, groundwater, and drain or sewage backups.",investopedia,1,48.64,12.1,0,15.38,16.9,11.42,15.25,15.22
Water Quality Improvement Act of 1970,The Water Quality Improvement Act of 1970 was a piece of U.S. legislation that expanded the federal government's authority over water quality standards and water polluters.,investopedia,1,19.71,17,0,14.92,18.2,12.21,21,21.17
Water Rights,Water rights pertain to the legal rights of property owners to access and use bodies of water adjacent to lands they hold. Different types of waters rights exist based on various forms of water that border or exist on a property.,investopedia,1,59.13,10.1,0,9.17,10.5,10.43,12.75,11.13
Watercraft Insurance,"Watercraft insurance is an umbrella term for three types of insurance: boat insurance, yacht insurance, and personal watercraft insurance. It protects against damages to vessels powered by a motor that has horsepower of at least 25 miles per hour (mph). Examples of the types of costs covered by watercraft insurance policies include physical loss or damage to the boat, theft of the boat, and towing.",investopedia,1,49.45,11.8,15.5,12.01,13.9,10.06,15.5,12.37
Watered Stock,"Watered stock referred to shares of a company that were issued at a much greater value than the value implied by a company's underlying assets, usually as part of a scheme to defraud investors. The last known case of watered stock issuance occurred decades ago, as stock issuance structure and regulations have evolved to put a stop to the practice.",investopedia,1,49.49,13.8,0,10.86,16.3,10.39,17.5,14.67
Waterfall Concept,The term “waterfall concept” refers to a popular estate planning strategy in which a whole-life insurance policy is transfered一or “rolled over”一from the policyholder to their child or grandchild.,investopedia,1,34.6,15.4,0,17.41,20.8,12.36,21,19.77
Waterfall Payment,"Waterfall payment structures require that higher-tiered creditors receive interest and principal payments, while the lower-tiered creditors receive principal payments after the higher-tiered creditors are paid back in full. Debtors typically structure these schemes into such tranches to prioritize the highest-principal loans first because they are also likely the most expensive.",investopedia,1,20.72,16.6,0,20.72,22.3,10.88,18,15.6
Wave,"The term Elliott Wave Theory refers to a theory in technical analysis used to describe price movements in the financial market. The theory was developed by Ralph Nelson Elliott after he observed and identified recurring, fractal wave patterns. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as riding a wave. A large, strong movement by homeowners to replace their existing mortgages with new ones that have better terms is called a refinancing wave.",investopedia,1,49.15,11.9,13.8,12.47,14.1,10.47,11.6,13.8
Weak AI,"Weak artificial intelligence (AI)—also called narrow AI—is a type of artificial intelligence that is limited to a specific or narrow area. Weak AI simulates human cognition. It has the potential to benefit society by automating time-consuming tasks and by analyzing data in ways that humans sometimes can’t. Weak AI can be contrasted to strong AI, a theoretical form of machine intelligence that is equal to human intelligence.",investopedia,1,37.5,12.2,15.2,12.99,12.3,10.13,12.875,15.08
Weak Dollar,"A weak dollar refers to a downward price trend in the value of the U.S. dollar relative to other foreign currencies. The most commonly compared currency is the Euro, so if the Euro is rising in price compared to the dollar, the dollar is said to be weakening at that time. Essentially, a weak dollar means that a U.S. dollar can be exchanged for smaller amounts of foreign currency. The effect of this is that goods priced in U.S. dollars, as well as goods produced in non-US countries, become more expensive to U.S. consumers.",investopedia,1,64.54,10.1,11.2,8.71,12.1,9,13.75,12.38
Weak Form Efficiency,"Weak form efficiency claims that past price movements, volume and earnings data do not affect a stock’s price and can’t be used to predict its future direction. Weak form efficiency is one of the three different degrees of efficient market hypothesis (EMH).",investopedia,1,50.16,11.5,0,12.01,13.4,10.32,13.5,11.26
Weak Hands,Weak hands is the term often used to describe traders and investors who lack conviction in their strategies or lack the resources to carry them out. It also refers to a futures trader that never intends to take or provide delivery of the underlying commodity or index.,investopedia,1,56.08,11.3,0,10.16,12.6,10.18,13.75,12.8
Weak Longs,Weak longs are investors who hold a long position and are quick to exit that position at the first sign of weakness. This type of investor is typically trying to capture upside potential in a given security but is not willing to take much loss. These investors will quickly close their positions when a trade does not move in their favor.,investopedia,1,67.79,8.8,11.2,9.23,10.5,7.49,12.16666667,11.4
Weak Shorts,"Weak shorts refer to traders or investors who hold a short position in a stock or other financial asset who will close it out at the first indication of price strength. Weak shorts are typically investors with limited financial capacity, which may preclude them from taking on too much risk on a single short position. A weak short will generally have a tight stop-loss order in place on the short position to cap the loss on the short trade in case it goes against the trader. Weak shorts are conceptually similar to weak longs, though the latter employ long positions.",investopedia,1,54.6,13.9,15,10.34,17.5,8.76,15.75,17.32
Weak Sister,Weak sister is a slang term for an element that undermines an entire system. The term can either refer to a single individual or a specialized group that is considered to be the weak and undependable link in an integrated process.,investopedia,1,50.67,11.3,0,9.34,10.6,9.66,13.75,15.03
Wealth Added Index (WAI),"Wealth Added Index (WAI) is a metric designed by Stern Value Managament, a consulting firm, that attempts to measure value created (or destroyed) for shareholders by a company. According to this calculation method, wealth is created only if the returns of a company, inclusive of share price gains and dividends, exceed its cost of equity.",investopedia,1,35.1,15.2,0,12.13,16.9,11.32,19.75,17.55
Wealth Effect,"The wealth effect is a behavioral economic theory suggesting that people spend more as the value of their assets rise. The idea is that consumers feel more financially secure and confident about their wealth when their homes or investment portfolios increase in value. They are made to feel richer, even if their income and fixed costs are the same as before.",investopedia,1,59.33,10,12.5,10.79,11.8,9.04,12.83333333,13.37
Wealth Management,"Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. Using a consultative process, the advisor gleans information about the client's wants and specific situation, and then tailors a personalized strategy that uses a range of financial products and services.",investopedia,1,29.69,15.2,0,16.66,18.6,12.91,18.75,19.6
Wealth Psychologist,"A wealth psychologist is a mental health professional who specializes in issues relating specifically to wealthy individuals. Wealth psychologists are also called money psychologists or wealth counselors. Wealth psychologists help their ultra-rich clients deal with issues such as the guilt they feel about being wealthy, or advise on inheritance issues and counsel parents on how to raise children who are not spoiled by money.",investopedia,1,41.4,12.8,14.1,15.43,16.2,9.63,14.33333333,13.52
Wealth Tax,"Wealth tax is a tax based on the market value of assets owned by a taxpayer. Although many developed countries choose to tax wealth, the United States has historically relied on taxing annual income to raise revenue.",investopedia,1,61.16,9.3,0,10.79,11,9.68,11.25,11.72
Wear and Tear Exclusion,"A wear and tear exclusion is a provision in an insurance policy that states that the normal deterioration of the insured object is not covered by the insurance policy. Insurance is designed only to protect against unforeseen losses. If insurance covered inevitable losses, insurers would have to raise their premiums dramatically to cover the expenses.",investopedia,1,35.98,12.8,15.5,13.81,13.4,9.42,13.83333333,14.59
Wearable Technology,"Wearable technology, also known as ""wearables"", is a category of electronic devices that can be worn as accessories, embedded in clothing, implanted in the user's body, or even tattooed on the skin. The devices are hands-free gadgets with practical uses, powered by microprocessors and enhanced with the ability to send and receive data via the Internet.",investopedia,1,34.6,15.4,0,12.77,17.7,11.23,19,18.34
Weather Future,"Weather future is a type of weather derivative where the payoffs are based on the aggregate difference in the measured weather variable, usually the recorded temperature, over a fixed period.",investopedia,1,32.57,16.2,0,14.05,19,11.97,21,18.67
Weather Insurance,"The term weather insurance refers to a form of financial protection against losses or damages incurred because of adverse, measurable weather conditions. These conditions generally include wind, snow, rain/thunderstorms, fog, and undesirable temperatures.",investopedia,1,29.35,13.3,0,20.24,18.7,11.63,13.25,17.51
Web 2.0,"Web 2.0 describes the current state of the web, which has more user-generated content and usability for end-users compared to its earlier incarnation, Web 1.0. In general, Web 2.0 refers to the Internet applications that have transformed the digital era in the aftermath of the dotcom bubble.",investopedia,1,39.16,13.6,0,12.13,15,11.86,16.25,16.21
Web Syndication,Web syndication is a marketing strategy for websites that equates to a right or license to broadcast or distribute content from one site to another. The most common example of web syndication describes a content licensing arrangement between two or more Internet companies in which one company provides content to be published and promoted on another company's website.,investopedia,1,33.58,15.8,0,14.28,18.5,10.79,22,19.19
Wedge,"A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling and differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts.",investopedia,1,66.27,9.4,13,9.11,11.2,9.8,13.875,14.24
Wednesday Scramble,Bank reserves are the cash minimums that financial institutions must have on hand in order to meet central bank requirements. This is real paper money that must be kept by the bank in a vault on-site or held in its account at the central bank. Cash reserves requirements are intended to ensure that every bank can meet any large and unexpected demand for withdrawals.,investopedia,1,58.32,10.4,11.9,9.92,11.6,7.9,13,12.27
Weekend Effect,The weekend effect is a phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday.,investopedia,1,19.71,17,0,14.45,17.3,11.61,18,18.09
Weekly Chart,"A weekly chart is the data series of price actions for a traded security where each candle, bar, or point on a line, represents the price summary for a single week of trading. Candlestick charts and bar charts are the most common types of charts used by traders and investors.",investopedia,1,63.02,10.7,0,8.77,12.5,9.3,14.5,12.4
Weekly Mortgage Applications Survey,The Weekly Mortgage Applications Survey is conducted each week by the Mortgage Bankers Association (MBA) to aggregate and analyze U.S. mortgage application activity.,investopedia,1,14.29,17,0,17.82,19.4,14.39,18.5,21.37
Weekly Premium Insurance,Weekly premium insurance is a type of financial protection where the payments that the insured makes in return for coverage are paid weekly.,investopedia,1,39.67,13.4,0,12.54,14.2,11.64,16.5,17.9
Wei,"Wei is the smallest denomination of ether—the cryptocurrency coin used on the Ethereum network. One ether = 1,000,000,000,000,000,000 wei (1018). The other way to look at it is one wei is one quintillionth of an ether.",investopedia,1,84.98,4.3,8.8,10.19,9.3,9.63,6,8.11
Weighted,"Weighted is a description of adjustments to a figure to reflect different proportions or ""weights"" of components that make up that figure. A weighted average, for example, takes into account the proportional relevance of each component instead of measuring each individual component equally. The Dow Jones Industrial Average (DJIA) is a price-weighted average that compares each security based on the stock's price relative to the sum of all the stocks' prices. The S&P 500 Index and Nasdaq Composite Index, on the other hand, are based on market capitalization, where each company is measured relative to its market value.",investopedia,1,38.15,14,16.5,13.12,16.1,10.49,17.75,16.33
Weighted Alpha,"Weighted alpha measures the performance of a security over a certain period, usually a year, but with relatively more importance given to recent activity compared to earlier performance.",investopedia,1,9.22,18.9,0,15.32,19.3,12.36,23,22.63
Weighted Average Cost of Capital (WACC),"The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.",investopedia,1,39.67,13.4,0,12.42,15,9.58,17,14.42
Weighted Average Cost of Equity (WACE),"Weighted average cost of equity (WACE) is a way to calculate the cost of a company's equity that gives different weight to different types of equities according to their proportion in the corporate structure. Instead of lumping retained earnings, common stock, and preferred stock together, WACE provides a more accurate idea of a company's total cost of equity.",investopedia,1,33.58,15.8,0,12.89,17.8,11.06,22,17.81
Weighted Average Coupon (WAC),"The weighted average coupon (WAC) is a measurement of the rate of return on a pool of mortgages that is sold to investors as a mortgage-backed security (MBS). The underlying mortgages are repaid at different lengths of time, so the WAC represents its return at the time it was issued and may differ from its WAC later.",investopedia,1,51.01,13.2,0,8.88,14.5,10.04,17.75,14.91
Weighted Average Credit Rating,"The weighted average credit rating (WACR) relates to the weighted average rating regarding all bonds in a bond fund. This rating procedure provides investors with an idea as to a fund's credit quality. It also helps to identify the overall risk involved with a bond portfolio. The lower the weighted average credit rating, the riskier a bond fund is. The weighted average credit rating is designated in letter rating form, including AAA, BBB, or CCC.",investopedia,1,56.25,9.1,11.6,10.26,9.7,10.28,8.7,10.27
Weighted Average Life (WAL),"The weighted average life (WAL) is the average length of time that each dollar of unpaid principal on a loan, a mortgage, or an amortizing bond remains outstanding. Calculating WAL shows an investor, an analyst, or a portfolio manager how many years it will take to receive roughly half of the amount of the outstanding principal. The formula is useful in measuring the credit risk associated with fixed-income securities.",investopedia,1,39.67,13.4,16.3,11.96,14.2,10.27,16.83333333,15.58
Weighted Average Loan Age (WALA),The weighted average loan age (WALA) measures the average age of the loans in a pool of mortgage-backed securities (MBS). The weights are based on the dollar amount of each loan at each maturity in proportion to the aggregate total of the pool and can be weighted on the remaining principal balance dollar figure or the nominal value of the loan.,investopedia,1,48.98,14,0,9.82,15.9,10.07,20.25,17.45
Weighted Average Market Capitalization,"The weighted average market capitalization refers to a type of stock market index construction that is based on the market capitalization of the index's constituent stocks. Large companies would, therefore, account for a greater portion of an index than smaller stocks. This means the movement of an index would depend on a small set of stocks.",investopedia,1,60.95,9.4,10.5,12.53,12.6,9.36,11,10.34
Weighted Average Maturity (WAM),"Weighted average maturity (WAM) is the weighted average amount of time until the maturities on mortgages in a mortgage-backed security (MBS). This term is used more broadly to describe maturities in a portfolio of debt securities, including corporate debt and municipal bonds. The higher the WAM, the longer it takes for all of the mortgages or bonds in the portfolio to mature. WAM is used to manage debt portfolios and to assess the performance of debt portfolio managers.",investopedia,1,45.09,13.4,16.3,11.78,15.6,10.39,13.75,16.04
Weighted Average Rating Factor (WARF),The weighted average rating factor (WARF) is a measure that is used by credit rating companies to indicate the credit quality of a portfolio. This measure aggregates the credit ratings of the portfolio's holdings into a single rating. WARFs are most often calculated for collateralized debt obligations (CDOs).,investopedia,1,38.32,11.9,13.6,13.34,12.5,11.01,11.33333333,14.73
Weighted Average Remaining Term (WART),"Weighted Average Remaining Term (WART) is a metric that captures the average time to maturity of a portfolio of asset-backed securities (ABS). Also known as the weighted average maturity, WART is often used in relation to mortgage-backed securities (MBS).",investopedia,1,26.3,14.4,0,13.34,14.5,10.68,15.75,13.95
Weightless Economy,"The term weightless economy refers to the trade in intangible or abstract products and services such as consulting, software, and professional services. The weightless economy sells ideas, information, expertise, or services.",investopedia,1,38.82,11.7,0,17.57,15.9,11.54,11.25,13.94
Welfare,"Welfare refers to a range of government programs that provide financial or other aid to individuals or groups who cannot support themselves. Welfare programs are typically funded by taxpayers and allow people to cope with financial stress during rough periods of their lives. In most cases, people who use welfare will receive a biweekly or monthly payment. The goals of welfare vary, as it looks to promote the pursuance of work, education, or, in some instances, a better standard of living.",investopedia,1,50.87,11.2,11.7,11.6,12.7,9.91,12.375,11.58
Welfare and Pension Plans Disclosure Act (WPPDA),"The Welfare Pensions Plan and Disclosure Act (WPPDA) was a 1950s-era law that gave the U.S. Department of Labor regulatory authority over private employee benefits plans for the first time. In an effort to increase transparency, the WPPDA mandated that employers and labor unions provide plan descriptions and financial reports to the government. It was intended to make plan sponsors more accountable to participants and beneficiaries for the financial health of the plans.",investopedia,1,44.44,11.6,15.6,13.92,13.6,11.25,13.875,16.09
Welfare Economics,"Welfare economics is the study of how the allocation of resources and goods affects social welfare. This relates directly to the study of economic efficiency and income distribution, as well as how these two factors affect the overall well-being of people in the economy. In practical terms, welfare economists seek to provide tools to guide public policy to achieve beneficial social and economic outcomes for all of society. However, welfare economics is a subjective study that depends heavily on chosen assumptions regarding how welfare can be defined, measured, and compared for individuals and society as a whole.",investopedia,1,29.89,15.1,16.5,13.7,16.1,10.38,17.625,16.73
Welfare Loss Of Taxation,Welfare loss of taxation refers to a decrease in economic and social well-being caused by the imposition of a new tax. It is the total cost to society incurred just by the process of transferring purchasing power from taxpayers to the taxing authority.,investopedia,1,49.65,11.7,0,10.62,12.3,10.95,15.25,16.04
Welfare State,"The term ""welfare state"" refers to a type of governing in which the national government plays a key role in the protection and promotion of the economic and social well-being of its citizens. A welfare state is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions of a good life. Social Security, federally mandated unemployment insurance programs, and welfare payments to people unable to work are all examples of the welfare state.",investopedia,1,24.82,17.1,18.6,13.47,18.3,10.83,22,20.81
Wellbore,"A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources, including oil, gas, or water. A wellbore is the actual hole that forms the well. A wellbore can be encased by materials such as steel and cement, or it may be uncased. The motivation for drilling a wellbore is usually to extract oil or gas for a protracted period of time.",investopedia,1,62.38,8.9,12.2,7.13,7.8,8.84,11.125,12.72
Wellness Program,"An organizational approach to improving individual health, wellness programs include activities such as company-sponsored exercise, weight-loss competitions, educational seminars, tobacco-cessation programs, and health screenings that are designed to help employees eat better, lose weight, and improve overall physical health.",investopedia,1,-18.88,25.6,0,24.67,33,13.67,31.5,26.88
Wells Notice,"A Wells Notice is a notification issued by regulators to inform individuals or companies of completed investigations where infractions have been discovered. It usually takes the form of a letter, which notifies recipients both of the broad nature of the violations uncovered as well as the nature of the enforcement proceedings to be initiated against the recipient.",investopedia,1,17.17,17.9,0,14.28,18.4,11.14,22.75,23.33
West African CFA Franc (XOF),"The West African CFA franc (XOF) is the shared currency of eight independent states in West Africa. The XOF uses both coins and banknotes, with the franc subdivided into 100 centimes. The Central Bank of West African States, located in Dakar, Senegal, regulates the currency. The members that use the West African CFA France consist of the West African Economic and Monetary Union and include Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Together, these countries have a spending power that exceeds over 78 billion dollars.",investopedia,1,65.76,9.6,12.6,12.89,15,11.84,11.1,12.52
West Texas Intermediate (WTI),"West Texas Intermediate (WTI) crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil because it contains around 0.34% sulfur, making it ""sweet,"" and has a low density (specific gravity), making it ""light.""",investopedia,1,68.44,10.7,0,8.19,14.4,9.54,16.5,14.06
Western Account,"A western account is a type of agreement among underwriters (AAU) in which each underwriter agrees to share responsibility for only a specific portion of the overall new issuance. They are the opposite of an “eastern account,” in which each underwriter shares responsibility for the entire issuance.",investopedia,1,39.16,13.6,0,13.64,15.7,9.51,15.75,13.66
Wet Loan,"A wet loan is a mortgage in which the funds realize at—or with the completion of—a loan application. Submission of other required documentation for closing the property, such as surveys and title searches, happens after the dispersion of funds.",investopedia,1,43.22,12.1,0,12.76,13.2,10.27,13.25,14.98
Wharton School,"The Wharton School of the University of Pennsylvania—often referred to simply as “Wharton”—is one of the most prestigious business schools in the world. In 2021, Wharton's Master of Business Administration (MBA) program tied for first place with Stanford University in a global survey of best business schools by U.S. News & World Report.",investopedia,1,53.92,10,10.5,13.57,13.3,9.96,10.5,10
Whartonite,"Whartonite is a colloquial term used to refer to graduates of the The Wharton School of the University of Pennsylvania. Because of the Wharton School's reputation in the financial sector, the term Whartonite is often associated with professionals in industries such as investment banking, investment management, private equity, and venture capital.",investopedia,1,20.21,16.8,0,16.13,18.8,11.09,19.75,19.61
When Issued (WI),"When issued (WI) is a transaction that is made conditionally because a security has been authorized but not yet issued. Treasury securities, stock splits, and new issues of stocks and bonds are all traded on a when-issued basis.",investopedia,1,52.19,10.7,0,10.79,11.8,10.4,12,12.86
Whipsaw,"Whipsaw describes the movement of a security when, at a particular time, the security's price is moving in one direction but then quickly pivots to move in the opposite direction. There are two types of whipsaw patterns. The first involves an upward movement in a share price, which is then followed by a drastic downward move causing the share's price to fall relative to its original position. The second type occurs when a share price drops in value for a short time and then suddenly surges upward to a positive gain relative to the stock's original position.",investopedia,1,55.27,11.6,13.8,10.68,13.7,9.07,15.625,13.43
Whisper Number,"A whisper number refers to the purported, unofficial, and unpublished earnings per share (EPS) forecasts of professional traders and fund managers on Wall Street. The whisper number can also be applied to any news or data release in any market",investopedia,1,59.64,9.9,0,11.72,12.7,10.55,12,12
Whisper Stock,A public company's shares can briefly become a whisper stock if rumors circulate that the company is the target of a takeover offer. The whispers will probably be followed by an immediate surge in trading volume and an increase in its share price.,investopedia,1,58.11,10.5,0,9.98,11.8,10.21,13.25,12.32
Whistleblower,"A whistleblower is anyone who has and reports insider knowledge of illegal activities occurring in an organization. Whistleblowers can be employees, suppliers, contractors, clients, or any individual who becomes aware of illegal business activities. Whistleblowers are protected from retaliation under various programs created by the Occupational Safety and Health Administration (OSHA), Sarbanes Oxley Act, and the Securities and Exchange Commission (SEC). The protection of federal employees is under the Whistleblower Protection Act of 1989.",investopedia,1,10.4,16.4,18,18.56,17.8,11.38,16,18.75
White Candlestick,A white candlestick depicts a period where the security's price has closed at a higher level than where it had opened. It is a point on a security's candlestick chart representing a bullish period.,investopedia,1,54.22,9.9,0,9.74,9.8,8.19,12,10.33
White Collar,"A white-collar worker belongs to a class of employees known for earning higher average salaries doing highly skilled work, but not by performing manual labor at their jobs. White-collar workers historically have been the ""shirt and tie"" set, defined by office jobs and management, and not ""getting their hands dirty.""",investopedia,1,54.56,11.9,0,12.83,16.3,10.56,15.5,14.8
White-Collar Crime,"White-collar crime is a nonviolent crime committed for financial gain. According to the FBI, a key agency that investigates these offenses, ""these crimes are characterized by deceit, concealment, or violation of trust."" The motivation for these crimes is ""to obtain or avoid losing money, property, or services or to secure a personal or business advantage.""",investopedia,1,44.44,11.6,15,13.52,13.9,11.15,13.5,16.77
White Elephant,"A white elephant is something whose cost of upkeep is not in line with its usefulness or value. From an investment perspective, the term refers to an asset, property, or business that is so expensive to operate and maintain that it is extremely difficult to actually make a profit from it.",investopedia,1,54.05,12.1,0,9.64,13.4,9.24,17.25,17.26
White Knight,"A white knight is a hostile takeover defense whereby a 'friendly' individual or company acquires a corporation at fair consideration when it is on the verge of being taken over by an 'unfriendly' bidder or acquirer. The unfriendly bidder is generally known as the ""black knight.""",investopedia,1,39.67,13.4,0,11.49,14,9.58,15.5,14.42
White Label Product,"White label products are sold by retailers with their own branding and logo but the products themselves are manufactured by a third party. White labeling occurs when the manufacturer of an item uses the branding requested by the purchaser, or marketer, instead of its own. The end product appears as though it has been produced by the purchaser.",investopedia,1,51.89,10.8,11.9,11.02,11.6,9.49,12,11.86
White List States,"White list states maintain a list of insurance companies that can use unauthorized insurers to provide supplemental coverage, or coverage that is not part of the to riskier entities.",investopedia,1,33.58,15.8,0,13.7,18.1,10.52,22.5,21.26
White Paper,"A white paper, also written as ""whitepaper"", is an informational document usually issued by a company or not-for-profit organization to promote or highlight the features of a solution, product, or service that it offers or plans to offer. White papers are also used as a method of presenting government policies and legislation and gauging public reaction.",investopedia,1,26.14,16.6,0,13.18,17.9,10.95,19.5,16.91
White Shoe Firm,"A ""white shoe firm"" is an old-fashioned term for the most prestigious, well-established businesses and companies in elite professions. The term originally was used only to refer to legal practices—""white shoe law firm"" was a common variation—but now may be used to describe those in other fields, such as investment banking and management consulting.",investopedia,1,44.07,13.8,0,13.81,18,10.53,18.5,18.21
White Squire,"A white squire is an investor or friendly company that buys a stake in a target company to prevent a hostile takeover. This is similar to a white knight defense, except the target firm does not have to give up its independence as it does with the white knight, because the white squire only buys a partial share in the company.",investopedia,1,57.44,12.8,0,8.31,14.4,8.51,17.75,13.51
Whitemail,"Whitemail is a defensive strategy that a takeover target can use to try to thwart a hostile takeover attempt. Whitemail involves the target firm issuing a large number of shares at below-market prices, which are then sold to a friendly third party.",investopedia,1,67.08,9.1,0,11.14,12.6,9.57,12.5,11.26
Whitewash Resolution,"Whitewash resolution is a European term used in conjunction with the Companies Act of 1985, which refers to a resolution that must be passed before a target company in a buyout situation can give financial assistance to the buyer of the target. A whitewash resolution occurs when directors of the target company must swear that the company will be able to pay its debts for a period of at least 12 months. Oftentimes, an auditor must then confirm the company's solvency.",investopedia,1,44.07,13.8,17.1,10.51,14.7,9.85,19.5,17.22
Whole Life Annuity,"A whole life annuity, also known as a life annuity, is a financial product sold by insurance companies; it pays monthly, quarterly, semi-annual, or annual payments to a person for as long as they live, beginning at a stated age. Annuities are usually purchased by investors who want to secure an income stream during retirement.",investopedia,1,35.1,15.2,0,10.86,15.8,10.17,19.75,17.55
Whole Life Annuity Due,"A whole life annuity due is a financial product sold by insurance companies that requires annuity payments at the beginning of each monthly, quarterly, or annual period, as opposed to at the end of the period. This is a type of annuity that will provide the holder with payments during the distribution period for as long as they live. After the annuitant passes on, the insurance company retains any funds remaining.",investopedia,1,38.96,13.7,16.7,10.8,13.4,9.26,17.5,15.11
Whole-Life Cost,"Whole-life cost is the total expense of owning an asset over its entire life, from purchase to disposal, as determined by financial analysis. It is also known as the life-cycle cost, the lifetime cost, ""cradle to grave,"" or ""womb to tomb."" Whole-life cost includes purchase and installation, design and building costs, operating costs, maintenance, associated financing costs, depreciation, and disposal costs.",investopedia,1,42.41,12.4,14.6,13.98,15.8,10.6,14.16666667,14.68
Whole Life Insurance,"Whole life insurance provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate on a tax-advantaged basis. These policies may be known as “traditional” life insurance.",investopedia,1,38.32,11.9,14.6,13.34,12.2,9.36,12,13.9
Whole Loan,"A whole loan is a single loan issued to a borrower. Lenders of whole loans often sell them in the secondary market to institutional portfolio managers and agencies, such as Freddie Mac and Fannie Mae. Lenders sell their whole loans to reduce their risk. Rather than keeping a loan on their books for 15 or 30 years, by selling the whole loan to an institutional buyer, the lender can almost immediately recoup the principal.",investopedia,1,69.62,8.1,10.1,9.69,10.1,10.1,10.75,10.1
Wholesale Banking,"Wholesale banking refers to banking services sold to large clients, such as other banks, other financial institutions, government agencies, large corporations, and real estate developers. It is the opposite of retail banking, which focuses on individual clients and small businesses. Wholesale banking services include currency conversion, working capital financing, large trade transactions, mergers and acquisitions, consultancy, and underwriting, among other services.",investopedia,1,17.03,15.9,16.7,20.36,20.5,11.63,15.83333333,17.96
Wholesale Energy,"Wholesale energy is a term referring to the bulk purchase and sale of energy products—primarily electricity, but also steam and natural gas—in the wholesale market by energy producers and energy retailers. Other participants in the wholesale energy market include financial intermediaries, energy traders, and large consumers. Wholesale energy markets developed following the deregulation and restructuring of utilities and electricity markets around the world in the 1990s.",investopedia,1,15.31,16.6,18.6,18.16,18.8,9.99,18.33333333,16.68
Wholesale Insurance,"Wholesale insurance refers to coverage for employer groups that are too small to qualify for true group coverage. A wholesale insurance policy is also known as franchise insurance. It covers an entire group, though individual policies are written for each person that is to be insured. These kinds of policies are offered by nonadmitted carriers, or insurance companies that aren't approved by the state's insurance department.",investopedia,1,46.27,10.9,14.2,13.51,12.6,9.72,12,12.66
Wholesale Money,"Wholesale money refers to the large sums of money lent by financial institutions in the money markets. This wholesale banking encompasses the market for tradable securities, such as Treasury bills, commercial paper, bankers’ acceptances, foreign or brokered deposits, certificates of deposit, bills of exchange, repo agreements, federal funds, and short-lived mortgage and asset-backed securities.",investopedia,1,27.15,16.2,0,18.57,22.1,13.16,18.5,16.73
Wholesale Trade,"Wholesale trade is an economic indicator that measures the value in U.S. dollars of all merchant wholesalers' sales and inventories. Wholesale trade is one component of business sales and inventories. Only those firms that sell to governments, institutions, and other businesses are considered part of wholesale trade.",investopedia,1,47.08,10.6,13,15.02,13.7,10.13,10.83333333,13.09
Wholesaling,"Wholesaling is the act of buying goods in bulk from a manufacturer at a discounted price and selling to a retailer for a higher price, for them to repackage and in turn resell in smaller quantities at an even higher price to consumers. Due to the large quantities purchased from the manufacturer at a discounted price, the wholesaler can also pass on this discount to retailers. The retailer sells at a price that reflects the overall cost of doing business.",investopedia,1,52.83,12.5,13.6,10.16,14.2,9.11,16.66666667,13.68
Wholly Owned Subsidiary,"A wholly owned subsidiary is a company whose common stock is 100% owned by another company, the parent company. Whereas a company can become a wholly owned subsidiary through an acquisition by the parent company or having been spun off from the parent company, a regular subsidiary is 51% to 99% owned by the parent company.",investopedia,1,43.06,14.2,0,10.16,15.2,8.13,19,12.63
Whoops,"Whoops is a negative slang word used at one time in history for the former Washington Public Power Supply System (WPPSS). Formed in the 1950s to ensure consistent electrical power for the Pacific Northwest, WPPSS did not succeed on many fronts—hence, its nickname of ""Whoops.""",investopedia,1,57.1,10.9,0,11.9,14.1,11.42,14.25,13.44
Wide Basis,"A wide basis is a condition found in the futures market whereby the local cash price of a commodity is relatively far from its futures price. It is the opposite of a narrow basis, in which the local cash price and futures prices are very close together.",investopedia,1,56.08,11.3,0,8.19,11,7.83,14.25,12.8
Wide Economic Moat,"A wide economic moat is a type of sustainable competitive advantage possessed by a business that makes it difficult for rivals to wear down its market share. The term economic moat was made popular by the investor Warren Buffett and is derived from the water-filled moats that surrounded medieval castles. The wider the moat, the more difficult it would be for an invader to reach the castle.",investopedia,1,57.3,10.8,14.1,10.8,12.7,9.93,14.83333333,13.7
Wide-Ranging Days,Wide-ranging days describe the price range of a stock on a particularly volatile day of trading. Wide-ranging days occur when the high and low prices of a stock are much further apart than they are on a typical day. Some technical analysts identify these days by using the volatility ratio.,investopedia,1,71.44,7.4,11.2,9.8,9.6,9.2,10.33333333,11.48
Wide Variety,"The wide variety strategy is a merchandising strategy that relies on an impressive range of goods to draw customers into the store. The old-fashioned five-and-dime store is a classic example of a wide variety strategy. In modern times, the controlled chaos of a dollar store may best illustrate the concept.",investopedia,1,54.52,9.8,14.1,11.66,11.3,9.52,12,11.48
Widely Held Fixed Investment Trust (WHFIT),A widely held fixed investment trust (WHFIT) is a type of unit investment trust (UIT) with at least one interest held by a third party. Investors who purchase shares of the trust receive any regular payments of interest or dividends earned on the equities or bonds held in trust.,investopedia,1,63.53,10.5,0,9.64,13,10.33,15.75,13.88
Widow-and-Orphan Stock,"Widow-and-orphan stock refers to an equity investment that often pays a high dividend and is generally considered low risk. Widow-and-orphan stocks usually are found in non-cyclical sectors such as utilities and consumer staples, which tend to hold up better during economic downturns.",investopedia,1,33.24,13.8,0,15.32,16.4,12.57,16,16.02
Widow Maker,"In the world of markets, a widow maker is an investment that results in large, potentially devastating losses. It can also refer to a trade that results in a loss for virtually everyone who tries it. In colloquial usage, a widow maker refers to anything with the potential to kill someone quickly. The phrase has historically been used in forestry and medicine.",investopedia,1,55.74,9.3,11.2,9.86,9.1,8.99,8.75,10.72
Widow's Allowance,"A widow’s allowance is traditionally an allowance of funds or personal property received by a widow after her husband's death to meet her immediate requirements. This financial process is also known as a widower or surviving civil partner’s allowance, depending upon the parties involved.",investopedia,1,32.22,14.2,0,14.5,15.8,11.9,15.5,16.98
Widow's Exemption,"A widow’s exemption refers to a reduction of tax burdens on a taxpayer following the death of a spouse. State laws vary, but generally allow for a reduction in taxes for a surviving spouse for a certain period, which often comes in the form of a reduction in property taxes. On a federal level, widows and widowers receive tax relief from estate and inheritance windfalls.",investopedia,1,49.45,11.8,15,9.69,11.7,10.06,15.16666667,14.83
Wilcoxon Test,"The Wilcoxon test, which can refer to either the Rank Sum test or the Signed Rank test version, is a nonparametric statistical test that compares two paired groups. The tests essentially calculate the difference between sets of pairs and analyzes these differences to establish if they are statistically significantly different from one another.",investopedia,1,36.12,14.8,0,14.63,17.9,10.91,19.25,17.39
Wild Card Option,A wild card option is a type of option that is embedded in certain Treasury securities. It permits the seller of a Treasury bond to postpone delivery of its underlying asset until after regular trading hours.,investopedia,1,44.75,11.5,0,9.97,10.2,11.11,11.5,12.76
Wildcat Banking,"Wildcat banking refers to the banking industry in parts of the United States from 1837 to 1865, when banks were established in remote and inaccessible locations. During this period, banks were chartered by state law without any federal oversight. Less stringent regulations on the banking industry at the time led to this period, also being referred to as the Free Banking Era.",investopedia,1,50.46,11.4,13,11.72,12.9,9.5,13.33333333,12.8
Wildcat Drilling,"Wildcat drilling, a form of high-risk exploratory drilling, is the process of drilling for oil or natural gas in unproven or fully exploited areas that either have no concrete historic production records or have been completely exhausted as a site for oil and gas output.",investopedia,1,42.72,18.5,0,12.49,24.9,11.48,28.5,23.33
Wildcatting,Wildcatting informally refers to a practice instituted by the Securities and Exchange Commission (SEC) that calls for the review of an entire industry whenever critical problems are found within one or two companies in that industry.,investopedia,1,18.02,19.7,0,14.75,22.5,12,28,23.29
Wilder's DMI (ADX),"Wilder’s DMI (ADX) consists of three indicators that measure a trend’s strength and direction. Three lines compose the Direction Movement Index (DMI): ADX (black line), DI+ (green line), and DI- (red line). The Average Directional Index (ADX) line shows the strength of the trend. The higher the ADX value, the stronger the trend. The color of the lines can be altered, but black, green, and red are the default in most software.",investopedia,1,82.24,5.4,8.8,8.87,9.2,8.96,7.2,7.43
Will,"A will, also known as a last will and testament, is a legally enforceable declaration of how a person wants their property and assets distributed after death. In a will, a person can also recommend a guardian for their minor children and make provisions for any surviving pets.",investopedia,1,55.58,11.5,0,10.33,13.2,9.43,16,16.27
William Cavanaugh III,"William Cavanaugh III is an American businessman with a long history of leadership positions in the energy production and real estate industries. He currently serves as a Lead Director on the Board of Directors of the Duke Realty, an American real estate investment trust (REIT), based in Indianapolis, Indiana.",investopedia,1,29.69,15.2,0,13.29,16.1,11.62,20.25,20.41
William Dillard II,"William Dillard II is the chair of the board and chief executive officer (CEO) of Dillard's Inc., a chain of department stores based in Little Rock, Arkansas. He's the oldest son of William T. Dillard, the founder of Dillard Department Stores. He began his career at Dillard's in 1967 and became executive vice president in 1973. From 1977 to 1998, he served as president and chief operating officer (COO). In 1998, he was named CEO of Dillard's. In 2002, Dillard II also became the chair.",investopedia,1,76.11,5.6,10,7.99,7.1,8.88,6.5,7.19
William F. Sharpe,"William Forsyth Sharpe is an American economist who won the 1990 Nobel Prize in Economic Sciences, along with Harry Markowitz and Merton Miller, for developing models to assist with investment decision making.",investopedia,1,39,15.8,0,15.04,20.8,13.61,22,19.05
William H. Gross,"Legendary bond investor who founded Pacific Investment Management Company (PIMCO), the largest bond fund in the world as of 2014. William H. Gross is notably known in the investment world as the king of bonds.",investopedia,1,70.63,7.8,0,10.44,10.9,11.72,11.25,10.43
William J. O'Neil,"William J. O’Neil is a noted investor, stockbroker, and author. He is known for being one of the first investors to incorporate computers into his research and investment decision-making process. O’Neil also founded the influential investment publication Investor’s Business Daily.",investopedia,1,41.06,10.8,12.5,15.94,13.7,11.01,8.333333333,12.32
Williams %R,"Williams %R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams %R may be used to find entry and exit points in the market. The indicator is very similar to the Stochastic oscillator and is used in the same way. It was developed by Larry Williams and it compares a stock’s closing price to the high-low range over a specific period, typically 14 days or periods.",investopedia,1,67.08,9.1,12.6,9.57,11.5,10.32,13.25,13.16
Williams Act,"The Williams Act is a federal law enacted in 1968 that defines the rules of acquisitions and tender offers. It came in response to a wave of hostile takeover attempts from corporate raiders, making cash tender offers for stocks they owned. Cash tender offers threatened to destroy value by forcing shareholders to tender shares on a shortened timetable.",investopedia,1,60.35,9.6,10.5,12.01,12.4,10.86,11.33333333,11.17
Willie Sutton Rule,"The Willie Sutton Rule is based on a statement by notorious American bank robber Willie Sutton, who, when asked by a reporter about why he stole from banks, answered: “Because that's where the money is.”",investopedia,1,52.87,14.6,0,10.34,18.8,9.43,19.5,15.14
Wilshire 5000 Total Market Index (TMWX),"The Wilshire 5000 Total Market Index (TMWX) is a broad-based market capitalization-weighted index composed of 3,451 publicly traded companies that meet the following criteria:",investopedia,1,21.74,16.2,0,19.03,21,14.7,16,14.6
Win/Loss Ratio,"The win/loss ratio is the ratio of the total number of winning trades to the number of losing trades. It does not take into account how much was won or lost, but simply if they were winners or losers.",investopedia,1,77.06,7.4,0,6.21,7.9,7.84,8.75,7.8
Windfall Profits,"Windfall profits are large, unexpected gains resulting from lucky circumstances. Such profits are generally well above historical norms and may occur due to factors such as a price spike or supply shortage that are either temporary in nature or longer-lasting. Windfall profits are generally reaped by an entire industry sector but can also find their way to an individual company.",investopedia,1,42.72,12.3,14.1,13.34,13.9,10.42,13.66666667,13.33
Windfall Tax,"A windfall tax is a tax levied by governments against certain industries when economic conditions allow those industries to experience above-average profits. Windfall taxes are primarily levied on companies in the targeted industry that have benefited the most from the economic windfall, most often commodity-based businesses.",investopedia,1,22.75,15.8,0,17.93,18.9,10.96,19,20.5
Winding Up,"Winding up is the process of dissolving a company. While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders. The term is used primarily in Great Britain, where it is synonymous with liquidation, which is the process of converting assets to cash.",investopedia,1,63.9,8.3,12.6,10.15,9.6,8.68,10.625,12.03
Window Dressing,"Window dressing is a strategy used by mutual fund and other portfolio managers to improve the appearance of a fund’s performance before presenting it to clients or shareholders. To window dress, the fund manager sells stocks with large losses and purchases high-flying stocks near the end of the quarter or year. These securities are then reported as part of the fund's holdings.",investopedia,1,50.46,11.4,14.6,11.89,13.1,10.01,14.33333333,14.73
Window Guaranteed Investment Contract,"Window guaranteed investment (WGIC) contracts are a type of investment plan in which the investor makes a series of payments to an insurance company and is guaranteed a return on investment. This type of guaranteed investment contract (GIC) differs from other GICs in that the investor makes principal payments in installments over time, rather than in one lump sum up front. Investors use window guaranteed investment contracts with 401(k) plans and other defined contribution pension plans.",investopedia,1,45.8,13.2,15.5,14.22,17.2,9.67,17.33333333,13.28
Window of Opportunity,"A window of opportunity is a short, often fleeting time period during which a rare and desired action can be taken. Once the window closes, the opportunity may never come again. In a competitive market with many participants seeking to maximize tangible or intangible value for their constituents—whether owners, other shareholders, employees, or perhaps their community—the window will shut fast as soon as a good deal is recognized.",investopedia,1,39.97,13.3,14.6,13.64,15.3,9.41,15.33333333,15.55
Windstorm Insurance,"Windstorm insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by gales, winds, hail, and other gusty hazards. A subset of storm insurance, windstorm insurance is usually offered in the form of a rider on a standard casualty insurance policy through the extended coverage endorsement.",investopedia,1,20.21,16.8,0,15.9,18.6,11.4,19.75,17.26
Winner-Takes-All Market,"A winner-takes-all market refers to an economy in which the best performers are able to capture a very large share of the available rewards, while the remaining competitors are left with very little. The prevalence of winner-takes-all markets widens wealth disparities because a select few are able to capture increasing amounts of income that would otherwise be more widely distributed throughout the population.",investopedia,1,39.5,15.6,0,14.98,20.6,9.96,21.25,17.68
Winner's Curse,"The winner's curse is a tendency for the winning bid in an auction to exceed the intrinsic value or true worth of an item. The gap in auctioned versus intrinsic value can typically be attributed to incomplete information, emotions, or a variety of other subjective factors that may influence bidders.",investopedia,1,37.64,14.2,0,11.67,14.8,11.51,17.5,17.2
Winsorized Mean,"Winsorized mean is a method of averaging that initially replaces the smallest and largest values with the observations closest to them. This is done to limit the effect of outliers or abnormal extreme values, or outliers, on the calculation.",investopedia,1,51.68,10.9,0,12.3,12.9,11.08,12.25,12.93
Wire Fraud,"Wire fraud is a type of fraud that involves the use of some form of telecommunications or the internet. These can include a phone call, a fax, an email, a text, or social media messaging, among many other forms. Wire fraud is punishable by prison and/or fines.",investopedia,1,80.92,5.9,9.7,7.71,7.8,9.45,8.166666667,9.68
Wire Room,"Wire rooms are facilities used by financial institutions to process fund transfers and order requests on behalf of clients. Typical tasks performed by wire room staff include receiving trade orders from brokers and other registered representatives, transmitting those orders to the exchange floor or the firm's trading department, and relaying notices of executed trade orders back to the brokers involved.",investopedia,1,32.57,16.2,0,16.37,20.8,12.49,20.5,19.33
Wire Transfers,A wire transfer is an electronic transfer of funds via a network that is administered by hundreds of banks and transfer service agencies around the world. The transfer can also be made in cash at a cash office.,investopedia,1,69.11,8.3,0,8.82,9.5,8.32,10.5,9.71
Wirehouse,"A wirehouse is a term used to describe a full-service broker-dealer. Modern-day wirehouses range from small regional brokerages to large institutions with global footprints. The term was coined when brokerage firms were connected to their branches primarily through private telephone and telegraph wires. This network connection enabled branches to have instantaneous access to the same market information as the head office, thereby allowing brokers to provide up-to-date stock quotes and market news to clients.",investopedia,1,44.24,11.7,13.8,16.42,15.8,11.38,12.75,13.35
Wirehouse Broker,"A wirehouse broker is a non-independent broker working for a wirehouse firm, or a firm with multiple branches such as a national brokerage house. The four largest and most well-known wirehouse full-service brokerage firms today are Morgan Stanley, Bank of America’s Merrill Lynch, UBS, and Wells Fargo. A wirehouse is an archaic term used to describe a broker-dealer. Modern-day wirehouses can range from small regional brokerages to giant institutions with offices around the world.",investopedia,1,52.7,10.5,13.4,13.81,13.9,10.74,12.5,12.81
Wisconsin School of Business,"Wisconsin School of Business is the business school of the University of Wisconsin at Madison. Founded in 1900, the school offers both undergraduate and graduate programs.",investopedia,1,41.36,10.7,0,14.2,11.9,9.75,8.5,11.35
Wisdom of Crowds,"Wisdom of crowds is the idea that large groups of people are collectively smarter than individual experts when it comes to problem-solving, decision-making, innovating, and predicting.",investopedia,1,28.17,15.8,0,17.12,20.4,12.82,19,18.09
Witching Hour,The witching hour is the last hour of trading on the third Friday of each month when options and futures on stocks and stock indexes expire. This period is often characterized by heavy volumes as traders close out options and futures contracts before expiry. Positions are then often re-opened in contracts that expire at a later date.,investopedia,1,60.65,9.5,9.7,10.79,11.2,9.29,10.83333333,10.41
With Approved Credit (WAC),"A with approved credit statement, or WAC statement for short, is a qualifier used in advertisements. It is intended to clarify that the offer being promoted is conditional on the buyer having an adequate credit rating.",investopedia,1,36.28,12.7,0,11.25,11.5,10.23,12.5,14.98
With Benefit of Survivorship,With benefit of survivorship refers to a legal agreement where property co-owners automatically receive full ownership when another co-owner dies. This process avoids legal hassles involved with estate settlements.,investopedia,1,31.38,12.5,0,18.55,16,13.07,10.75,14.08
With Discretion,"With discretion is a term that refers to an order type executed by a floor broker or trader according to their best judgment. A with discretion order allows for greater customization and flexibility to try and achieve the best price for the trade. Brokers may also refer to a with discretion order as a ""not-held order,"" which gives price and time discretion.",investopedia,1,56.93,13,0,10.8,16.9,9.25,13,15.63
Withdrawal,"A withdrawal involves removing funds from a bank account, savings plan, pension, or trust. In some cases, conditions must be met to withdraw funds without penalty, and penalty for early withdrawal usually arises when a clause in an investment contract is broken.",investopedia,1,50.16,11.5,0,12.3,13.8,9.94,13.5,13.16
Withdrawal Benefits,Withdrawal benefits refer to the rights of employees with pension or other retirement plans to cash out any accumulated funds upon leaving an employer.,investopedia,1,30.2,15,0,13.7,15.7,12.06,18,19.6
"Withdrawal Credits, Pension Plan",A withdrawal credit in a pension plan refers to the portion of an individual’s retirement assets in a qualified pension plan that the employee is entitled to withdraw when they leave a job.,investopedia,1,37.98,16.2,0,10.75,17.5,11.02,22.5,20.47
Withdrawal Penalty,"A withdrawal penalty refers to any penalty incurred by an individual for early withdrawal from an account that is either locked in for a stated period, as in a time deposit at a financial institution, or where such withdrawals are subject to penalties by law, such as from an individual retirement account (IRA).",investopedia,1,17.68,24,0,11.39,28.2,10.44,34.5,25.73
Withdrawal Plan,"A withdrawal plan is a financial plan that allows a shareholder to withdraw money from a mutual fund or other investment account at predetermined intervals. Often, this type of plan is used to fund expenses during retirement. However, it may be used for other purposes as well.",investopedia,1,47.08,10.6,14.1,10.32,9.5,9.12,11.5,14.79
Withholding,"Withholding is the portion of an employee's wages that is not included in their paycheck but is instead remitted directly to the federal, state, or local tax authorities. Withholding reduces the amount of tax employees must pay when they submit their annual tax returns. The employee's income, marital status, number of dependents, and number of jobs all determine the amount withheld.",investopedia,1,42.41,12.4,15.5,12.65,13.8,10.34,14.83333333,15.99
Withholding Allowance,"Withholding allowance refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck. In practice, employees in the United States use Internal Revenue Service (IRS) Form W-4, Employee’s Withholding Certificate to calculate and claim their withholding allowance.",investopedia,1,41.19,12.9,0,16.71,17.8,12.05,16.25,16.97
Withholding Tax,"A withholding tax is the amount an employer withholds from an employee’s wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year. It also is a tax levied on income (interest and dividends) from securities owned by a nonresident alien, as well as other income paid to nonresidents of a country. Withholding tax is levied on the vast majority of people who earn income from a trade or business in the United States.",investopedia,1,57.81,10.6,13.4,9.63,11.7,8.53,14.125,13.78
Without Evidence of Insurability,"Without evidence of insurability means an insurance provider underwrote a policy, such as for life or health insurance, without verifying that the policyholder was eligible for that coverage. Some group plans may not require proof of insurability if the applicant applies during the open enrollment period. Also, providers of plans offering lower or limited benefits may not need evidence of a policyholder's insurability. Also, convertible life insurance will not require additional evidence on conversion.",investopedia,1,18.86,15.2,17.4,16.19,15.6,10.1,15.5,17.67
Without Recourse,"Without recourse is a phrase that has several meanings. In a general sense, without recourse pertains to when the buyer of a promissory note or other negotiable instrument assumes the risk of default. No recourse means that the person cannot obtain a judgment against, or reimbursement from, a defaulting or opposing party.",investopedia,1,53.92,10,12.5,12.12,11.9,9.35,11.33333333,11.54
WM/Reuters Benchmark Rates,"WM/Reuters FX benchmark rates are spot and forward foreign exchange rates that are used as standard rates for portfolio valuation and performance measurement. The WM/Reuters Closing Spot Rate service was introduced in 1994 to provide standard forex rates that would enable portfolio valuations to be compared more accurately against each other and financial benchmarks, without having to account for currency differentials.",investopedia,1,32.06,16.4,0,17.53,22,11.36,20.75,18.76
Wolfe Wave,A Wolfe Wave is a chart pattern composed of five wave patterns in price that imply an underlying equilibrium price. Investors who use this system time their trades based upon the resistance and support lines indicated by the pattern.,investopedia,1,60.14,9.7,0,11.43,11.9,10.68,11.75,11.9
Word-of-Mouth Marketing,"Word-of-mouth marketing (WOM marketing) is when a consumer's interest in a company's product or service is reflected in their daily dialogues. Essentially, is it is free advertising triggered by customer experiences—and usually, something that goes beyond what they expected. Word-of-mouth marketing can be encouraged through different publicity activities set up by companies, or by having opportunities to encourage consumer-to-consumer and consumer-to-marketer communications. Also referred to as ""WOMM"" or ""word-of-mouth advertising,"" WOM marketing includes buzz, viral, blog, emotional, and social media marketing.",investopedia,1,8.57,17.1,18.5,19.14,20,10.88,17.375,17.01
Worden Stochastics,"The Worden Stochastics indicator represents the percentile rank of the most recent closing price compared to all of the other closing values over a specified lookback period. Traders use the indicator to determine if a particular security is overbought or oversold, to provide trade signals, and spot divergences that could signal a price reversal.",investopedia,1,35.61,15,0,14.28,17.8,11.99,18.5,17.47
Wordpress (CMS),"WordPress is a popular open-source content management system (CMS). Although it was originally associated mainly with personal blogs, it has since become used for a wide variety of websites, including professional publications and e-commerce platforms.",investopedia,1,28.33,13.7,0,17.22,16.7,13.98,13.25,17.29
Work Cells,"A work cell is a logical and strategic arrangement of resources in a business environment. These arrangements are put into place to organize and improve process flow, increase efficiency, reduce costs, and eliminate wastage.",investopedia,1,45.76,11.1,0,14.15,13.5,10.98,12,15.04
Work Ticket,"A work ticket is a form that shows the time spent by an employee working on a particular job. It is used as a basis for billing the costs of direct labor to customers, and may also be used for calculating wages of employees who are paid by the hour. In the context of accounting for the hours an employee works, a work ticket is also known as ""time card"" or a ""timesheet,"" which are more commonly used. In the context of recording how many hours a worker has put into a specific task, the term ""work order"" may be used as well.",investopedia,1,70.67,9.8,11.2,6.33,11,7.98,14.5,13.04
Workable Indication,"Workable indication is a pricing technique, stated as a range, which allows a dealer or broker flexibility when offering to buy or sell a particular debt instrument. It primarily applies to the municipal bond market.",investopedia,1,36.79,12.5,0,11.95,11.8,12.63,12.25,15
Workers' Compensation,Workers' compensation is a government-mandated system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Workers' compensation is a type of insurance that offers employees compensation for injuries or disabilities sustained as a result of their employment.,investopedia,1,0.42,24.4,0,17.65,29.2,12.54,16.75,25.11
Workers' Compensation Coverage A,"Workers' compensation coverage A refers to an insurance policy that protects employees under state laws and provides medical care, death, disability, and rehabilitation benefits for workers who are injured or killed while on the job. The insurer agrees to pay all compensation and benefits related to the insured employer's state's workers' compensation laws without any regard to liability. Workers' compensation coverage premiums are based on the employer's payroll and the type of duties its employees perform.",investopedia,1,20.42,16.7,18.2,15.61,18.5,11.12,19.66666667,17.49
Workers' Compensation Coverage B,"Workers' Compensation Coverage B is an insurance policy that covers medical care, lost income, and rehabilitation costs for employees who are injured on the job. It provides coverage to employees when the employer is liable.",investopedia,1,28.33,13.7,0,13.11,12.9,11.27,13.75,16.14
Workflow,"Workflow describes the steps in a business work process, through which a piece of work passes from initiation to completion; and how these steps can be executed and automated according to a set of procedural rules. Organizations use workflow to coordinate tasks, improve organizational efficiency, add responsiveness, and drive profitability. Workflow may be sequential, with each step contingent upon completion of the previous one, or parallel, with multiple steps occurring simultaneously.",investopedia,1,22.04,16.1,17.9,16.6,18.4,10.59,18.5,20.18
Working-Age Population,The working-age population is the total population in an area that is considered able and likely to work based on the number of people in a predetermined age range. The working-age population measure is used to give an estimate of the total number of potential workers within an economy.,investopedia,1,46.61,12.8,0,11.09,14,9.04,16.25,14.7
Working Capital (NWC),"Working capital, also known as net working capital (NWC), is the difference between a company’s current assets, such as cash, accounts receivable (customers’ unpaid bills), and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable. NWC is a measure of a company's liquidity and refers to the difference between operating current assets and operating current liabilities. In many cases, these calculations are the same and are derived from company cash plus accounts receivable plus inventories, less accounts payable, and less accrued expenses.",investopedia,1,24.82,17.1,17.9,15.68,20.5,9.58,21.33333333,16.72
Working Capital Loan,"A working capital loan is a loan that is taken to finance a company's everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company's short-term operational needs.",investopedia,1,49.65,11.7,0,11.31,13.4,8.74,14.75,12.32
Working Capital Management,Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to the best effect.,investopedia,1,9.22,18.9,0,15.15,18.8,12.36,22,19.77
Working Capital Turnover,"Working capital turnover is a ratio that measures how efficiently a company is using its working capital to support sales and growth. Also known as net sales to working capital, working capital turnover measures the relationship between the funds used to finance a company's operations and the revenues a company generates to continue operations and turn a profit.",investopedia,1,25.12,17,0,13.59,18,9.98,21,15.74
Working Class,"Working class is a socioeconomic term used to describe persons in a social class marked by jobs that provide low pay, require limited skill, or physical labor. Typically, working-class jobs have reduced education requirements. Unemployed persons or those supported by a social welfare program are often included in the working class.",investopedia,1,45.76,11.1,13.6,13.92,13.3,10.98,11.83333333,13.86
Working Control,"Working control occurs when a minority shareholder, or group of them, has enough voting power to influence or determine corporate policy. Working control exists in corporations with widely dispersed share ownership where no single individual has a majority interest, meaning ownership of 51% or more of the voting shares.",investopedia,1,-3.65,25.9,0,15.45,29.5,12.83,18.25,28.58
Working Interests,"Working interest is a term for a type of investment in oil and gas drilling operations in which the investor is directly liable for a portion of the ongoing costs associated with exploration, drilling, and production. As part of the investment, working interest owners also fully participate in the profits of any successful wells. This stands in contrast to royalty interests, in which an investor's cost is usually limited to the initial investment, also resulting in a lower potential for large profits.",investopedia,1,35.31,15.1,17.5,12.42,16.6,10.96,20,18.72
Working Ratio,"The working ratio measures a company's ability to recover operating costs from annual revenue. It is calculated by taking total annual expenses, excluding depreciation and debt-related expenses, and dividing it by the annual gross income.",investopedia,1,11.41,16,0,16.24,15.6,13.08,15.75,19.57
Working Tax Credit (WTC),"The Working Tax Credit (WTC) is a state benefit offered to individuals living in the United Kingdom who work and have a low income. It was introduced in April 2003 as a means-tested benefit, a central part of the welfare state in the United Kingdom. A means-tested benefit is a payment that is available to people who can demonstrate that their income and capital are below specified limits.",investopedia,1,56.89,11,12.5,10.16,12.5,8.25,14,11.43
Workout Agreement,"A workout agreement is a contract mutually agreed to between a lender and borrower to renegotiate the terms on a loan that is in default, often in the case of a mortgage that is in arrears. Generally, the workout includes waiving any existing defaults and restructuring the loan’s terms and covenants.",investopedia,1,54.05,12.1,0,11.32,14.7,11.09,15.75,14.91
Workout Market,"The workout market is an estimation of what trading prices will adjust to within the foreseeable future, known as a market maker prediction.",investopedia,1,39.67,13.4,0,12.25,14.2,11.64,14.5,14.42
Workout Period,"A workout period is the period of time when temporary yield discrepancies occur between fixed income securities and are subsequently adjusted. A workout period can be viewed as a sort of reset period, in which bond issuers and credit rating agencies review outstanding fixed income issues and adjust or disseminate any information that the public can use to rectify discrepancies in price or yield; or, to correct any inefficiencies in the market and best reflect the risk/reward profile of the bond compared with similar bonds in the market.",investopedia,1,18.36,21.6,0,13.19,24.9,11.2,30,23.05
Works-in-Progress,"The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion. WIP refers to the raw materials, labor, and overhead costs incurred for products that are at various stages of the production process. WIP is a component of the inventory asset account on the balance sheet. These costs are subsequently transferred to the finished goods account and eventually to the cost of sales.",investopedia,1,53.92,10,13.8,13.8,13.4,10.67,12.125,13.3
World Bank Group,"The World Bank Group is the world's most prominent development bank, with a stated mandate and mission to reduce world poverty. It has 189 member countries and is headquartered in Washington, D.C. The CEO of the World Bank Group as of June 2021 is David Malpass.",investopedia,1,72.87,6.9,9.7,8.63,8.5,10.57,8,9.6
World Economic Forum (WEF),"The World Economic Forum (WEF) is an international organization headquartered in Geneva, Switzerland, that brings together its membership of political and business leaders on a yearly basis to discuss major issues concerning the world political economy. These include but are not limited to issues of politics, economics, social, and environmental concerns.",investopedia,1,11.75,18,0,17,19.8,12.64,19.75,19.61
World Economic Outlook (WEO),The World Economic Outlook (WEO) is a report by the International Monetary Fund (IMF) that analyzes key parts of the IMF's surveillance of economic developments and policies in its member countries. It also projects developments in the global financial markets and economic systems.,investopedia,1,41.19,12.9,0,14.97,16.3,11.68,15.75,15.11
World Equity Benchmark Series (WEBS),The World Equity Benchmark Series (WEBS) was an international fund traded on the American Stock Exchange. It was introduced in 1996 by Morgan Stanley and was a type of hybrid security that possesses qualities of both open-end and closed-end funds.,investopedia,1,51.18,11.1,0,12.01,13.1,11.73,13.5,14
World Federation of Stock Exchanges,"The World Federation of Stock Exchanges, more commonly known as the World Federation of Exchanges, is an international trade group that supports the interests of regulated securities exchanges around the world and promotes widespread access to financial markets and the safety and soundness of the global financial system.",investopedia,1,5.84,24.4,0,16.49,29.6,11.28,33,25.03
World Fund,"A world fund is a type of mutual fund or other investment company that invests in securities that are traded in several different countries, including the United States. This type of fund is sometimes also referred to as a global fund. However, that name should not be confused with the Global Fund, which is a specific international organization dedicated to fighting the spread of infectious diseases, such as AIDS, malaria, and tuberculosis.",investopedia,1,38.66,13.8,15.5,12.36,15,9.65,16.66666667,15.16
World Gold Council (WGC),"The World Gold Council or the WGC is a nonprofit association of the world's leading gold producers. A market development organization for the gold industry, the World Gold Council includes 33 members and many members are gold mining companies. The WGC was established to promote the use of and demand for gold through marketing, research, and lobbying. Headquartered in London, the WGC covers the markets which comprise about three-quarters of the world's annual gold consumption.",investopedia,1,52.39,10.6,13.8,13.29,13.4,10.67,12.875,14.45
World Insurance,"World insurance is a type of commercial liability policy with extended global coverage. World insurance provides coverage in the event the policyholder is sued anywhere in the world. In general, however, commercial liability policies have a geographic limit for coverage.",investopedia,1,15.68,14.4,15.9,14.78,12.6,10.22,11.66666667,13.32
World Trade Organization (WTO),"Created in 1995, the World Trade Organization (WTO) is an international institution that oversees the global trade rules among nations. It superseded the 1947 General Agreement on Tariffs and Trade (GATT) created in the wake of World War II.",investopedia,1,51.68,10.9,0,12.3,13.2,11.08,13.25,12.93
WorldCom,"WorldCom was not just the biggest accounting scandal in the history of the United States—it was also one of the biggest bankruptcies of all time. The revelation that telecommunications giant WorldCom had cooked its books came on the heels of the Enron and Tyco frauds, which had rocked the financial markets. However, the scale of the WorldCom fraud put even them in the shade.",investopedia,1,58.32,10.4,11.9,10.73,12.4,8.89,13,11.65
Worldwide Coverage,"Worldwide coverage is a characteristic of some insurance policies provided by insurance companies that globally covers the insured business or individual against loss or damage. Worldwide coverage ensures that no matter where an individual's personal property is lost, stolen, or damaged, they will be covered for any associated losses. It also covers certain aspects of financial loss to a business.",investopedia,1,25.8,14.6,15.5,15.03,15.3,10.42,14.66666667,16
Worldwide Income,"In the United States, worldwide income describes an aggregation of a taxpayer's domestic and foreign income. Worldwide income is income earned anywhere in the world and is used to determine taxable income. In the U.S., citizens and resident aliens are subject to tax on worldwide income.",investopedia,1,55.95,9.3,11.2,11.88,11.2,9.2,8.666666667,11.34
Worthless Securities,"Worthless securities have a market value of zero. Worthless securities can include stocks or bonds that are either publicly traded or privately held. These securities, along with any securities that an investor has abandoned, result in a capital loss for the owner and can be claimed as such when filing taxes.",investopedia,1,54.22,9.9,11.2,11.42,11.1,9.12,10.5,8.37
W.P. Carey School of Business,"The W.P. Carey School of Business is a business school that is part of the Arizona State University System. Previously known as the Arizona State University Department of Commerce, it received its current name following a $50 million donation by the W.P. Carey Foundation.",investopedia,1,49.15,11.9,0,11.84,14.1,9.75,14.5,13.35
Wrap Account,"A wrap account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually. The fee is based on total assets under management (AUM). It is comprehensive, covering all administrative, commission, and management expenses for the account.",investopedia,1,38.32,11.9,15,12.87,12.1,11.01,12.33333333,16.4
Wrap-Around Insurance Program,"A wrap-around insurance program is a policy that provides punitive damages coverage for employment practices liability claims. Should a legal recompense in excess of compensatory damages be awarded to a plaintiff to punish a defendant and deter them from committing future punitive actions, this form of insurance will help to cover those costs.",investopedia,1,36.12,14.8,0,14.74,18,11.8,18.25,17.39
Wrap-Around Loan,A wrap-around loan is a type of mortgage loan that can be used in owner-financing deals. This type of loan involves the seller’s mortgage on the home and adds an additional incremental value to arrive at the total purchase price that must be paid to the seller over time.,investopedia,1,63.53,10.5,0,8.94,12.3,8.72,13.75,12.25
Wrap Fee,"The term wrap fee refers to a comprehensive charge levied by an investment manager or investment advisor to a client for providing a bundle of services. These services may include investment advice, investment research, and brokerage services. Wrap fees allow an investment professional to charge one straightforward fee rather than imposing multiple charges on their clients. By doing so, they are able to simplify the process for both themselves and their customers. Wrap fees apply to all-inclusive accounts called wrap accounts.",investopedia,1,55.03,9.6,13,14.15,13,10.09,11.1,11.91
Wrap-Up Insurance,Wrap-up insurance is a liability policy that serves as all-encompassing insurance that protects all contractors and subcontractors working on large projects costing over $10 million. The two types of wrap-up insurance are owner-controlled and contractor-controlled.,investopedia,1,28.33,13.7,0,20.07,18.9,11.27,13.75,15
Wraparound Mortgage,"A wraparound mortgage is a type of junior loan which wraps or includes, the current note due on the property. The wraparound loan will consist of the balance of the original loan plus an amount to cover the new purchase price for the property. These mortgages are a form of secondary financing. The seller of the property receives a secured promissory note, which is a legal IOU detailing the amount due. A wraparound mortgage is also known as a wrap loan, overriding mortgage, agreement for sale, a carry-back, or all-inclusive mortgage.",investopedia,1,61.46,9.2,10.8,10.44,10.8,8.88,10.9,10.36
Writ,"The term writ refers to a formal, legal document that orders a person or entity to perform or to cease performing a specific action or deed. Writs are drafted by judges, courts, or other entities that have administrative or judicial jurisdiction. These documents are part of common law and are often issued after a judgment is made, giving those involved in a suit the ability to carry out the judgment. Writs can take many forms including summonses, writs of execution, writs of habeas corpus, warrants, and orders.",investopedia,1,49.35,11.8,13.4,10.56,12.7,10.71,14.125,14.7
Writ of Attachment,"A writ of attachment is a form of prejudgment process in which a court orders the attachment or seizure of property described in the writ. The property is seized and held in the custody of an appointed official, such as a U.S. Marshal or law enforcement officer, under court supervision.",investopedia,1,62.98,8.6,13.6,9.57,9.5,9.83,11.66666667,12.28
Writ of Execution,"A writ of execution is a court order that puts in force a judgment of possession and directs law enforcement personnel to begin the transfer of property as the result of a legal judgment. Property may include assets, money, or real property.",investopedia,1,50.16,11.5,0,9.81,11.5,10.32,14,13.16
Writ of Seizure and Sale,"A writ of seizure and sale is an order issued by a court that allows the petitioner (usually a creditor) to take ownership of a property from a borrower. Once the property has been seized by the creditor, it can be sold, usually at auction.",investopedia,1,57.1,10.9,0,7.49,10.4,8.96,15.75,14.33
Write-Down,"A write-down is an accounting term for the reduction in the book value of an asset when its fair market value (FMV) has fallen below the carrying book value, and thus becomes an impaired asset. The amount to be written down is the difference between the book value of the asset and the amount of cash that the business can obtain by disposing of it in the most optimal manner.",investopedia,1,52.87,14.6,0,8.25,16.7,8.3,20.5,16.86
Write-Off,"A write-off is an accounting action that reduces the value of an asset while simultaneously debiting a liabilities account. It is primarily used in its most literal sense by businesses seeking to account for unpaid loan obligations, unpaid receivables, or losses on stored inventory. Generally it can also be referred to broadly as something that helps to lower an annual tax bill.",investopedia,1,33.54,13.7,14.6,12.07,13.2,10.52,14.33333333,16.02
Write-Up,"A write-up is an increase made to the book value of an asset because its carrying value is less than fair market value. A write-up generally occurs if a company is being acquired and its assets and liabilities are restated to fair market value, under the purchase method of M&A accounting. It may also occur if the initial value of the asset was not recorded properly, or if an earlier write-down in its value was too large. An asset write-up is the opposite of a write-down, and both are non-cash items.",investopedia,1,56.79,11,11.7,8.54,11.4,8.41,13.625,12.64
Writer,"A writer (sometimes referred to as a grantor) is the seller of an option who opens a position to collect a premium payment from the buyer. Writers can sell call or put options that are covered or uncovered. An uncovered position is also referred to as a naked option. For example, the owner of 100 shares of stock can sell a call option on those shares to collect a premium from the buyer of the option; the position is covered because the writer owns the stock that underlies the option and has agreed to sell those shares at the strike price of the contract. A covered put option would involve being short the shares and writing a put on them. If an option is not covered the option writer theoretically faces the risk of very large losses if the underlying moves against them.",investopedia,1,64.24,10.2,10.9,8.42,11.4,8.13,14.75,11.48
Written-Down Value,"Written-down value is the value of an asset after accounting for depreciation or amortization. In short, it reflects the present worth of a resource owned by a company from an accounting perspective. This value is included on the company's balance sheet in its financial statements.",investopedia,1,47.79,10.3,13.6,12.06,11,8.94,10.83333333,12.22
Written Premium,"Written premium is an accounting term in the insurance industry used to describe the total amount that customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums factor in the amount of premium charged for a policy that has already become effective, regardless of what portions have been earned. Written premiums are the principal source of an insurance company's revenues.",investopedia,1,38.66,13.8,17.1,13.41,15.6,10.09,18,16.82
Wrongful Dishonor,"The term wrongful dishonor refers to a bank's failure to honor a valid negotiable instrument such as a check or draft that has been presented to it for payment. If the instrument is valid and there are enough funds to cover it, a bank's failure to honor the instrument within the time period stipulated by the Uniform Commercial Code (UCC) would constitute wrongful dishonor.",investopedia,1,47.46,14.6,0,10.98,17.6,9.66,21.5,17.8
Wrongful Termination Claim,"A wrongful termination claim is filed in a court of law by someone who believes they were unjustly or illegally fired from their job. Wrongful termination claims involve an alleged violation of federal or state anti-discrimination laws, oral and written employment agreements/contracts, or labor laws, including collective bargaining laws or whistleblower laws. Employees who feel their termination was a form of sexual harassment or in retaliation for having filed a complaint against the employer may also file a wrongful termination claim.",investopedia,1,27.15,16.2,17.9,15.61,19,11.02,20.16666667,18.7
X-Efficiency,"X-efficiency refers to the degree of efficiency maintained by firms under conditions of imperfect competition. Efficiency in this context means a company getting the maximum outputs from its inputs, including employee productivity and manufacturing efficiency. In a highly competitive market, firms are forced to be as efficient as possible to ensure strong profits and continued existence. This is not true in situations of imperfect competition, such as with a monopoly or duopoly.",investopedia,1,19.37,15,16.8,14.96,14.5,10.67,14.75,16.09
X-Mark Signature,"An X-mark signature is made by a person in lieu of an actual signature. Due to illiteracy or disability, a person may be unable to append a full signature in name to a document as an attestation that its content has been reviewed and approved. In order to be legally valid, the X-mark signature must be witnessed.",investopedia,1,52.19,10.7,13,8.18,9.3,9.01,12.5,11.81
XBRL (eXtensible Business Reporting Language),"XBRL or eXtensible Business Reporting Language is a software standard that was developed to improve the way in which financial data is communicated, making it easier to compile and share this data. Notably, eXtensible Business Reporting Language is an implementation of XML (extensible markup language), which is a specification that is used for organizing and defining data online.",investopedia,1,16.66,18.1,0,15.1,19.4,10.25,20.5,17.81
XCD (Eastern Caribbean Dollar),"XCD is the symbol for the Eastern Caribbean dollar, which is the official currency shared by eight Caribbean island countries: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.",investopedia,1,31.89,18.5,0,15.15,25.1,12.86,26.5,21.75
XD,XD is a symbol used to signify that a security is trading ex-dividend. It is an alphabetic qualifier that acts as shorthand to tell investors key information about a specific security in a stock quote. Sometimes X alone is used to indicate that the stock is trading ex-dividend.,investopedia,1,55.24,9.5,13.6,10.21,9.6,9.69,11.33333333,13.07
Xenocurrency,"The term xenocurrency refers to any currency that is traded in markets outside of its domestic borders. Its name derives from the Greek prefix “xeno”, meaning “foreign”.",investopedia,1,66.23,7.4,0,12.23,10.3,11.91,7.25,9.84
Xetra,"Xetra is a trading technology platform that is operated by Frankfurter Wertpapierbörse (FWB), the Frankfurt Stock Exchange. It offers electronic trading in stocks, funds, bonds, warrants, and commodities contracts.",investopedia,1,33.58,15.8,0,19.1,23.6,13.79,8.75,18.5
XML (Extensible Markup Language),"Extensible Markup Language (XML) is a flexible markup language for structured electronic documents. Extensible Markup Language (XML) is a programming language commonly used by data-exchange services (like blog feeds) to send information between otherwise incompatible systems. It is readable by both humans and computers and is based on SGML (standard generalized markup language), an international standard for electronic documents. Many other languages, such as RSS and XHTML, are based on XML.",investopedia,1,44.95,11.4,14.2,16.06,15.8,10.52,12.625,13.32
XRT,XRT is an extension printed after the ticker symbol for a stock. It indicates that the stock is trading on an ex-rights basis. (XRT is an abbreviation for the word ex-rights.) Ex-rights means that the buyer of the stock does not have the rights to purchase more shares at a lower price anymore because those rights have expired. XRT is printed on the ticker tape—or displayed on the electronic ticker—for clarity and to avoid disputes or confusion about where the rights currently remain.,investopedia,1,67.28,9,11.2,10.56,12.1,9.23,12.375,11.69
Y,Y is a letter that appears on a stock symbol specifying that a particular stock is an American depositary receipt (ADR). A stock symbol (also known as a ticker symbol) is a unique series of letters that are a shorthand way of identifying a company's specific stock. A stock symbol can include a letter at the end of the symbol that conveys information about that stock's trading status. These symbols help investors differentiate one type of investment from another.,investopedia,1,51.38,11,12.6,10.44,11.6,10.02,12.625,12.48
Y-Share,"Y-shares are an institutional share class offered in open-end mutual funds. Targeting institutional investors, the share class often has a high minimum investment, beginning at approximately $25,000. This share class also offers the benefit of waived or limited load charges and lower comparative total annual fees.",investopedia,1,39.03,11.6,14.6,15.01,13.9,12.29,11.66666667,14.82
Y2K,"Y2K is the shorthand term for ""the year 2000."" Y2K was commonly used to refer to a widespread computer programming shortcut that was expected to cause extensive havoc as the year changed from 1999 to 2000.",investopedia,1,70.13,8,0,9.16,9.8,10.67,11.5,12.76
Yacht Insurance,"A yacht, it’s fair to say, is a luxury item and so particularly in need of protection. Yacht insurance is an insurance policy that provides indemnity liability coverage for a sailing vessel. It includes liability coverage for bodily injury or damage to the property of others and damage to personal property on the vessel. Depending on the insurance provider, this insurance could also include gas delivery, towing, and assistance if your yacht gets stranded.",investopedia,1,35.78,12.9,15.9,12.24,12.4,10.32,14.25,14.97
Yale School of Management,"Yale School of Management (Yale SOM) is Yale University's graduate business school. Yale School of Management offers both MBA and Ph.D. level programs and is known for, among other things, its focus on finance and ethics. The school introduced a new kind of integrated curriculum that combines a brief period of foreign study with organizational and employee analysis.",investopedia,1,51.89,10.8,14.1,12.82,13.5,11.13,13.33333333,14.62
Yankee Bond,"A Yankee bond is a debt obligation issued by a foreign entity, such as a government or company, which is traded in the United States and denominated in U.S. dollars.",investopedia,1,41.03,15,0,8.66,14.9,11.44,20,16
Yankee CD,A Yankee certificate of deposit (CD) is a type of CD that is issued in the United States by a branch of a foreign bank. Yankee CDs are denominated in U.S. dollars and are used by foreign banks to raise capital from U.S. investors.,investopedia,1,66.07,9.5,0,6.33,9.6,9.39,12.5,10.62
Yankee Certificate of Deposit,A Yankee certificate of deposit (CD) is a type of CD that is issued in the United States by a branch of a foreign bank. Yankee CDs are denominated in U.S. dollars and are used by foreign banks to raise capital from U.S. investors.,investopedia,1,66.07,9.5,0,6.33,9.6,9.39,12.5,10.62
Yard,"The term ""yard"" is a financial term meaning one billion. The term is derived from the term ""milliard,"" which is used in some European languages and is equivalent to the number one billion used in American English.",investopedia,1,69.62,8.1,0,9.34,10.3,7.97,11.25,10.64
Year-End Bonus,"A year-end bonus (sometimes called a ""Christmas bonus"") is a reward paid to an employee at the end of the year. Many year-end bonuses are tied to performance metrics, and the amount can vary depending on whether certain milestones are met. Year-end bonuses are usually made up of lump-sum payments used to reward the individual for hard work and dedication.",investopedia,1,68.1,8.7,11.2,10.39,12,8.58,12,12
Year-Over-Year (YOY),Year-Over-Year (YOY) is a frequently used financial comparison for comparing two or more measurable events on an annualized basis.,investopedia,1,35.27,13.1,0,15.37,15.8,12.06,15.5,20.23
Year to Date (YTD),"Year to date (YTD) refers to the period of time beginning the first day of the current calendar year or fiscal year up to the current date. YTD information is useful for analyzing business trends over time or comparing performance data to competitors or peers in the same industry. The acronym often modifies concepts such as investment returns, earnings and net pay.",investopedia,1,50.46,11.4,14.1,10.79,12.2,9.76,14,14.09
Yearly Probability of Dying,Yearly probability of dying is a numerical figure that depicts the likelihood of someone dying per year. The yearly probability of dying is determined by looking at a mortality table which shows the rate of death at each age in terms of the number of deaths per thousand. The data in the chart is determined by dividing the number of people dying during a given year by the number of people alive at the beginning of that same year.,investopedia,1,44.78,13.5,13,8.77,12.8,7.74,16.16666667,13.56
Yearly Probability of Living,"The yearly probability of living is a statistical concept that measures the likelihood that a given person, or group of people, will survive for one more year. It is widely used in the insurance industry to underwrite life insurance contracts. Generally speaking, older individuals will have a lower yearly probability of living and will therefore likely be charged higher insurance premiums.",investopedia,1,33.95,13.6,14.6,13.69,14.4,10.08,14.16666667,14.02
Yearly Rate of Return Method,"The yearly rate of return method, commonly referred to as the annual percentage rate, is the amount earned on a fund throughout an entire year. The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year. This method is also referred to as the annual rate of return or the nominal annual rate.",investopedia,1,53.85,12.1,13.6,8.01,12,8.19,16.16666667,13.92
Yearly Renewable Term (YRT),"A yearly renewable term is a one-year term life insurance policy. This type of policy gives policyholders a quote for the year the coverage is bought. When someone buys a yearly renewable term insurance policy, the premium quoted is for a one-year term, starting in the current year.",investopedia,1,63.7,8.4,13.6,10.55,10.1,9.04,11.33333333,11.4
Yearly Renewable Term Plan of Reinsurance,The yearly renewable term plan of reinsurance is a type of life reinsurance where mortality risks of an insurance company are transferred to a reinsurer through a process referred to as cession.,investopedia,1,39,15.8,0,12.83,18.7,11.14,23,19.05
Years Certain Annuity,"A years certain annuity is a retirement income product that pays the holder a continuous periodic income, generally monthly, for a specified number of years. Like all annuities, it is used to provide a steady income during retirement. However, what makes a years certain annuity unique is that it provides that income for a predetermined length of time regardless of how long the annuitant lives.",investopedia,1,40.99,12.9,15,11.72,13.5,9.33,15.16666667,14.83
Year's Maximum Pensionable Earnings (YMPE),The Canadian government sets the year's maximum pensionable earnings (YMPE) figure. The YMPE determines the maximum amount on which to base contributions to the Canada or Quebec Pension Plan (C/QPP). The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year. ,investopedia,1,55.24,9.5,13.6,13.45,12.7,9.69,11.33333333,12.23
Yellow Knight,"A yellow knight is a company that was orchestrating a hostile takeover attempt, but then backs out of it and proposes a merger of equals with the target company instead.",investopedia,1,57.95,12.6,0,10.98,16.3,10.39,19,14.67
Yellow Sheets,"Yellow sheets, published by NQB, are bulletins which contain information, such as yield, volume, high, low, closing, and bid-ask spread, for corporate bonds listed on the over-the-counter (OTC) market.",investopedia,1,50.5,13.4,0,14.92,21.2,12.15,17.5,14.36
Yen ETF,"A yen ETF is an exchange traded fund (ETF) that tracks the relative value of Japan’s currency, the Japanese yen (JPY), in the foreign exchange (forex) market against a basket of other currencies or a single currency such as the U.S. dollar (USD). This is achieved by investing primarily in yen-backed assets, including short-term debt instruments and bonds, or simply holding the spot currency in interest-bearing accounts.",investopedia,1,37.47,16.4,0,12.83,20.6,12.37,22.25,18.77
Yield-Based Option,A yield-based option allows investors to buy or sell calls and puts on the yield of a security rather than its price.,investopedia,1,74.53,8.3,0,7.49,10.1,10.47,12,10.62
Yield Basis,"The yield basis is a method of quoting the price of a fixed-income security as a yield percentage, rather than as a dollar value. This allows bonds with varying characteristics to be easily compared. The yield basis is calculated by dividing the coupon amount paid annually by the bond purchase price.",investopedia,1,54.22,9.9,12.5,10.38,10.2,10.36,11.16666667,12.29
Yield Curve Risk,"The yield curve risk is the risk of experiencing an adverse shift in market interest rates associated with investing in a fixed income instrument. When market yields change, this will impact the price of a fixed-income instrument. When market interest rates, or yields, increase, the price of a bond will decrease, and vice versa.",investopedia,1,61.67,9.1,12.5,11.19,11.7,9.79,11.66666667,10.9
Yield Equivalence,"Yield equivalence is the interest rate on a taxable security that would generate a return equivalent to the return of a tax-exempt security, and vice versa.",investopedia,1,36.63,14.6,0,11.78,15.5,11,20,18.09
Yield Maintenance,Yield maintenance is a sort of prepayment penalty that allows investors to attain the same yield as if the borrower made all scheduled interest payments up until the maturity date. It dictates that borrowers pay the rate differential between the loan interest rate and the prevailing market interest rate on the prepaid capital for the period remaining to loan maturity.,investopedia,1,32.57,16.2,0,13.18,18,10.12,22,18.67
Yield on Cost (YOC),"Yield on cost (YOC) is a measure of dividend yield calculated by dividing a stock's current dividend by the price initially paid for that stock. For example, if an investor purchased a stock five years ago for $20, and its current dividend is $1.50 per share, then the YOC for that stock would be 7.5%.",investopedia,1,60.48,11.7,0,7.78,13.6,10.17,17.25,14.64
Yield on Earning Assets,The yield on earning assets is a popular financial solvency ratio that compares a financial institution’s interest income to its earning assets. Yield on earning assets indicates how well assets are performing by looking at how much income they bring in.,investopedia,1,42.21,12.5,0,12.71,13.4,9.66,14.25,15.03
Yield Pickup,Yield pickup is the additional interest rate an investor receives by selling a lower-yielding bond and buying a higher-yielding bond. The yield pickup is done to improve the risk-adjusted performance of a portfolio.,investopedia,1,46.27,10.9,0,13.69,13,12.11,11.75,12.66
Yield Spread,"A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings, issuer, or risk level, calculated by deducting the yield of one instrument from the other. This difference is most often expressed in basis points (bps) or percentage points.",investopedia,1,40.18,13.2,0,13.81,15.7,11.42,15.75,15.22
Yield Spread Premium,"A yield spread premium also called a ""YSP"" is a form of compensation that a mortgage broker, acting as the intermediary, receives from the original lender for selling an interest rate to a borrower that is above the lender's par rate for which the borrower qualifies.",investopedia,1,33.25,20.1,0,10.87,24.3,12.1,31,24.49
Yield Tilt Index Fund,"A yield tilt index fund is a type of fund that invests in stocks or securities that mirrors the holdings of a market index but contains a higher weighting towards higher-yielding investments. A yield tilt index fund can be a mutual fund, which is a basket of securities that are actively managed by a portfolio or fund manager.",investopedia,1,50.5,13.4,0,9.93,15,10.25,18.5,15.05
Yield to Average Life,Yield-to-average life is the calculation of a bond's yield based on the average maturity rather than the stated maturity date of the issue. This yield replaces the stated final maturity with the average life maturity. Average life is also called the weighted average maturity (WAM) or weighted average life (WAL).,investopedia,1,37.64,14.2,0,12.71,16.1,9.3,12.33333333,12.4
Yield to Call,"Yield to call (YTC) is a financial term that refers to the return a bondholder receives if the bond is held until the call date, which occurs sometime before it reaches maturity. This number can be mathematically calculated as the compound interest rate at which the present value of a bond's future coupon payments and call price is equal to the current market price of the bond.",investopedia,1,45.93,15.2,0,9.99,17.4,9.78,19.75,16.98
Yield to Maturity (YTM),"Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.",investopedia,1,55.27,11.6,13,7.72,11.5,8.95,15.16666667,13.56
Yield to Worst (YTW),Yield to worst is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting. It is a type of yield that is referenced when a bond has provisions that would allow the issuer to close it out before it matures. Early retirement of the bond could be forced through a few different provisions detailed in the bond’s contract—most commonly callability.,investopedia,1,54.56,11.9,14.1,10.33,13.4,9.09,16.16666667,13.73
Yield Variance,"Yield variance is the difference between actual output and standard output of a production or manufacturing process, based on standard inputs of materials and labor. The yield variance is valued at standard cost. Yield variance is generally unfavorable, where the actual output is less than the standard or expected output, but it can be that output expects expectations as well.",investopedia,1,42.72,12.3,13.6,13.05,13.7,9.37,13.33333333,13.33
Yo-Yo,"Yo-yo is a slang term for a very volatile market. The name comes from the movements of a yo-yo toy; in a yo-yo market, security prices continually go up and down.",investopedia,1,81.12,5.8,0,5.8,6.4,8.48,7.75,8.78
York Antwerp Rules,The York Antwerp Rules are a set of maritime regulations concerning protocols surrounding jettisoned cargo.,investopedia,1,30.87,12.7,0,17.68,15.3,14.91,12.5,19.33
Yugen Kaisha (YK),"Yugen kaisha (YKA) is a type of limited liability company that could be established in Japan from 1940 through early 2006. The Companies Act enacted in Japan in June 2005 abolished the YK business form. The law changed most YKs into KKs, or kabushiki kaisha, a joint stock company, which is the most common business form in Japan. The corporation law also changed the corporate governance of YKs.",investopedia,1,71.14,7.6,12.2,9.97,10.1,10.05,11,11.51
Yuppie,"Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, affluence, and business success. They are often preppy in appearance and like to show off their success by their style and possessions.",investopedia,1,57.27,8.8,11.2,11.42,9.9,9.22,8,11.31
Advertising,"Many firms advertise their goods or services, but are they wasting economic resources? Some economists reckon that advertising merely manipulates consumer tastes and creates desires that would not otherwise exist. By increasing product differentiation and encouraging brand loyalty advertising may make consumers less price sensitive, moving the market further from perfect competition towards imperfect competition (see monopolistic competition) and increasing the ability of firms to charge more than marginal cost. Heavy spending on advertising may also create a barrier to entry, as a firm entering the market would have to spend a lot on advertising too.",economist,1,21.74,16.2,17.1,16.54,18.3,10.75,18,16.68
Agency costs,"These can arise when somebody (the principal) hires somebody else (the agent) to carry out a task and the interests of the agent conflict with the interests of the principal. An example of such principal-agent problems comes from the relationship between the shareholders who own a public company and the managers who run it. The owners would like managers to run the firm in ways that maximise the value of their shares, whereas the managers' priority may be, say, to build a business empire through rapid expansion and mergers and acquisitions, which may not increase their firm's share price.",economist,1,46.44,15,14.6,11.62,18.7,9.42,20.5,16.43
Agricultural policy,"Countries often provide support for their farmers using trade barriers and subsidy because, for example:",economist,1,39.33,11.5,0,16.17,14.3,12.8,8.5,11.33
Agriculture,"Farming around the world continues to become more productive while generally accounting for a smaller share of employment and national income, although in some poor countries it remains the sector on which the country and its people depend. Farming, forestry and fishing in 1913 accounted for 28% of employment in the United States, 41% in France and 60% in Japan, but only 12% in the UK. Now the proportion of the workforce employed in such activities has dropped below 6% in these and most other industrialised countries.",economist,1,50.5,13.4,14.1,11.67,16.7,10.34,18.16666667,16.2
Aid,See international aid.,economist,1,9.21,12.7,0,11.15,11.5,9.05,1.5,14.53
Altruism,"It is often alleged that altruism is inconsistent with economic rationality, which assumes that people behave selfishly. Certainly, much economic analysis is concerned with how individuals behave, and homo economicus (economic man) is usually assumed to act in his or her self-interest. However, self-interest does not necessarily mean selfish. Some economic models in the field of behavioural economics assume that self-interested individuals behave altruistically because they get some benefit, or utility, from doing so. For instance, it may make them feel better about themselves, or be a useful insurance policy against social unrest, say. Some economic models go further and relax the traditional assumption of fully rational behaviour by simply assuming that people sometimes behave altruistically, even if this may be against their self-interest. Either way, there is much economic literature about charity, international aid, public spending and redistributive taxation.",economist,1,17.34,15.8,16.6,16.42,16.8,9.48,12.66666667,15.71
Amortisation,"The running down or payment of a loan by instalments. An example is a repayment mortgage on a house, which is amortised by making monthly payments that over a pre-agreed period of time cover the value of the loan plus interest. With loans that are not amortised, the borrower pays only interest during the period of the loan and then repays the sum borrowed in full.",economist,1,57.61,10.7,12.5,8.65,11,8.79,13.66666667,12.44
Animal spirits,"The colourful name that keynes gave to one of the essential ingredients of economic prosperity: confidence. According to Keynes, animal spirits are a particular sort of confidence, ""naive optimism"". He meant this in the sense that, for entrepreneurs in particular, ""the thought of ultimate loss which often overtakes pioneers, as experience undoubtedly tells us and them, is put aside as a healthy man puts aside the expectation of death"". Where these animal spirits come from is something of a mystery. Certainly, attempts by politicians and others to talk up confidence by making optimistic noises about economic prospects have rarely done much good.",economist,1,50.77,11.2,14.8,13.11,14.2,9.14,14.2,13.65
Arbitrage pricing theory,"This is one of two influential economic theories of how assets are priced in the financial markets. The other is the capital asset pricing model. The arbitrage pricing theory says that the price of a financial asset reflects a few key risk factors, such as the expected rate of interest, and how the price of the asset changes relative to the price of a portfolio of assets. If the price of an asset happens to diverge from what the theory says it should be, arbitrage by investors should bring it back into line.",economist,1,56.29,11.2,13.8,8.83,11.5,8.87,15.125,13.62
Asian crisis,"During 1997-98, many of the East Asian tiger economies suffered a severe finanical and economic crisis. This had big consequences for the global financial markets, which had become increasingly exposed to the promise that Asia had seemed to offer. The crisis destroyed wealth on a massive scale and sent absolute poverty shooting up. In the banking system alone, corporate loans equivalent to around half of one year's GDP went bad - a destruction of savings on a scale more usually associated with a full-scale war. The precise cause of the crisis remains a matter of debate. Fingers have been pointed at the currency peg adopted by some countries, and a reduction of capital controls in the years before the crisis. Some blamed economic contagion. The crisis brought an end to a then widespread belief that there was a distinct ""Asian way"" of capitalism that might prove just as successful as capitalism in America or Europe. Instead, critics turned their fire on Asian cronyism, ill-disciplined banking and lack of transparency. In the years following the crisis, most of the countries involved have introduced reforms designed to increase transparency and improve the health of the banking system, although some (such as South Korea) went much further than others (such as Indonesia).",economist,1,58.82,10.2,12.3,12.01,13.4,9.75,10.16666667,12.17
Assets,Things that have earning power or some other value to their owner.,economist,1,76.22,5.6,0,7.93,6.1,6.86,5,4.8
Asymmetric shock,"When something unexpected happens that affects one economy (or part of an economy) more than the rest. This can create big problems for policymakers if they are trying to set a macroeconomic policy that works for both the area affected by the shock and the unaffected area. For instance, some economic areas may be oil exporters and thus highly dependent on the price of oil, but other areas are not. If the oil price plunges, the oil-dependent area would benefit from policies designed to boost demand that might be unsuited to the needs of the rest of the economy. This may be a constant problem for those responsible for setting the interest rate for the euro given the big differences--and different potential exposures to shocks--among the economies within the euro zone.",economist,1,53.34,12.3,14.8,10.97,14.9,9.88,16,15.37
Auctions,"Going, going, gone. Holding an auction can be an extremely efficient way for a seller to set the price of its products, especially if it does not have much information about how much people may be willing to pay for them. Auctions fascinate economists, especially those who specialise in game theory. They have long been a feature of the sale of art and antiques in the rooms of firms such as Sotheby's and Christie's. But in recent years they have played a growing role in other parts of the economy, ranging from the allocation of government-controlled broadcasting bandwidth to the awarding of work to subcontractors by governments and big firms using competitive tendering, and even more recently the sale of goods over the Internet.",economist,1,54.76,11.8,14,11.09,14.3,9.83,12.4,15.08
Austrian economics,"A brand of neo-classical economics established in Vienna during the late 19th century and the first half of the 20th century. It was strongly opposed to Marxism and, more broadly, to the use of economic theories to justify government intervention in the economy. Prominent members included Friedrich hayek, Joseph schumpeter and Ludwig von Mises. It gave birth to the definition of economics as the science of studying human behaviour as a relationship between ends and scarce means that have alternative uses. Austrian economic thinking was characterised by attributing all economic activity, including the behaviour of apparently impersonal institutions, to the wishes and actions of individuals. It did this by examining choices in terms of their opportunity cost (that is, what is the next best use of resources to that which is being considered?) and by analysing the impact of timing on decision making.",economist,1,38.86,13.8,16.9,13.47,15.7,11.44,16,17.63
Average,"A number that is calculated to summarise a group of numbers. The most commonly used average is the mean, the sum of the numbers divided by however many numbers there are in the group. The median is the middle value in a group of numbers ranked in order of size. The mode is the number that occurs most often in a group of numbers. Take the following group of numbers: 1, 2, 2, 9, 12, 13, 17",economist,1,72.76,6.9,9.9,5.16,5.5,7.68,8.1,8.76
Barriers to entry (or exit),How firms keep out competition--an important source of incumbent advantage. There are four main sorts of barriers.,economist,1,54.39,7.8,0,12.72,9.9,11.49,5.75,12.81
Basel 1 and 2,"An attempt to reduce the number of bank failures by tying a bank's capital adequacy ratio to the riskiness of the loans it makes. For instance, there is less chance of a loan to a government going bad than a loan to, say, an internet business, so the bank should not have to hold as much capital in reserve against the first loan as against the second. The first attempt to do this worldwide was by the Basel committee for international banking supervision in 1988. However, its system of judging the relative riskiness of different loans was crude. For instance, it penalised banks no more for making loans to a fly-by-night software company in Thailand than to Microsoft; no more for loans to South Korea, bailed out by the IMF in 1998, than to Switzerland. In 1998, ""Basel 2"" was proposed, using much more sophisticated risk classifications. However, controversy over these new classifications, and the cost to banks of administering the new approach, led to the introduction of Basel 2 being delayed until (at least) 2005.",economist,1,54.46,11.9,13.3,10.16,13.9,9.01,15.75,12.99
Basis point,"One one-hundredth of a percentage point. Small movements in the interest rate, the exchange rate and bond yields are often described in terms of basis points. If a bond yield moves from 5.25% to 5.45%, it has risen by 20 basis points.",economist,1,82.65,5.2,8.8,7.42,7.2,10.72,7,7.5
Bear,"An investor who thinks that the price of a particular security or class of securities (shares, say) is going to fall; the opposite of a bull.",economist,1,53.55,12.3,0,7.78,12.6,9.18,17,16.55
Behavioural economics,"A branch of economics that concentrates on explaining the economic decisions people make in practice, especially when these conflict with what conventional economic theory predicts they will do. Behaviourists try to augment or replace traditional ideas of economic rationality (homo economicus) with decision-making models borrowed from psychology. According to psychologists, people are disproportionately influenced by a fear of feeling regret and will often forgo benefits even to avoid only a small risk of feeling they have failed. They are also prone to cognitive dissonance, often holding on to a belief plainly at odds with new evidence, usually because the belief has been held and cherished for a long time. Then there is anchoring: people are often overly influenced by outside suggestion. People apparently also suffer from status quo bias: they are willing to take bigger gambles to maintain the status quo than they would be to acquire it in the first place.",economist,1,37.34,14.3,15.5,13.76,16.7,10.5,18.5,16.7
Big Mac index,"The Big Mac index was devised by Pam Woodall of The Economist in 1986, as a light-hearted guide to whether currencies are at their ""correct"" level. It is based on one of the oldest concepts in international economics, purchasing power parity (PPP), the notion that a dollar, say, should buy the same amount in all countries. In the long run, argue ppp fans, currencies should move towards the exchange rate, which equalises the prices of an identical basket of goods and services in each country. In this case, the basket is a McDonalds' Big Mac, which is produced in more than 100 countries. The Big Mac PPP is the exchange rate that would leave hamburgers costing the same in the United States as elsewhere. Comparing actual exchange rates with PPP signals whether a currency is undervalued or overvalued. Some studies have found that the Big Mac index is often a better predictor of currency movements than more theoretically rigorous models.",economist,1,56.69,11,12.8,10.68,13.1,9.11,15,13.41
Black economy,"If you pay your cleaner or builder in cash, or for some reason neglect to tell the taxman that you were paid for a service rendered, you participate in the black or underground economy. Such transactions do not normally show up in the figures for GDP, so the black economy may mean that a country is much richer than the official data suggest. In the United States and the UK, the black economy adds an estimated 5-10% to GDP; in Italy, it may add 30%. As for Russia, in the late 1990s estimates of the black economy ranged as high as 50% of GDP.",economist,1,62.01,11.1,12.6,6.91,11.6,9.03,15.25,13.48
Black-Scholes,"A formula for pricing financial options. Its invention allowed a previously undreamed of precision in the pricing of options (which had hitherto been done using crude rules of thumb), and probably made possible the explosive growth in the markets for options and other derivatives that took place after the formula became widely used in the early 1970s. Myron Scholes and Robert Merton were awarded the nobel prize for economics for their part in devising the formula; their co-inventor, Fischer Black (1938-95), was ineligible, having died.",economist,1,34.29,15.5,16.7,13.23,18.1,11.36,19.83333333,17.91
Boom and bust,See business cycle.,economist,1,59.97,5.6,0,5.35,6.8,9.05,0.5,1.2
Bounded rationality,"A theory of human decision making that assumes that people behave rationally, but only within the limits of the information available to them. Because their information may be inadequate (bounded) they make take decisions that appear to be irrational according to traditional theories about homo economicus (economic man). (See also behavioural economics.)",economist,1,19.71,17,0,15.9,19.2,11.3,20,20.4
Bretton Woods,"A conference held at Bretton Woods, New Hampshire, in 1944, which designed the structure of the international monetary system after the second world war and set up the imf and the world bank. It was agreed that the exchange rates of IMF members would be pegged to the dollar, with a maximum variation of 1% either side of the agreed rate. Rates could be adjusted more sharply only if a country's balance of payments was in fundamental disequilibrium. In August 1971 economic troubles and the cost of financing the Vietnam war led the American president, Richard Nixon, to devalue the dollar. This shattered confidence in the fixed exchange rate system and by 1973 all of the main currencies were floating freely, at rates set mostly by market forces rather than government fiat.",economist,1,53.14,12.4,13.3,10.86,14.8,10.09,15.75,14.8
Business confidence,"How the people who run companies feel about their organisations' prospects. In many countries, surveys measure average business confidence. These can provide useful signs about the current condition of the economy, because companies often have information about consumer demand sooner than government statisticians do.",economist,1,39.63,11.4,13.6,17.57,15.3,10.47,10.66666667,13.15
Business cycle,"Boom and bust. The long-run pattern of economic growth and recession. According to the Centre for International Business Cycle Research at Columbia University, between 1854 and 1945 the average expansion lasted 29 months and the average contraction 21 months. Since the second world war, however, expansions have lasted almost twice as long, an average of 50 months, and contractions have shortened to an average of only 11 months. Over the years, economists have produced numerous theories of why economic activity fluctuates so much, none of them particularly convincing. A Kitchin cycle supposedly lasted 39 months and was due to fluctuations in companies' inventories. The Juglar cycle would last 8-9 years as a result of changes in investment in plant and machinery. Then there was the 20-year Kuznets cycle, allegedly driven by house-building, and, perhaps the best-known theory of them all, the 50-year kondratieff wave.  hayek tangled with keynes over what caused the business cycle, and won the nobel prize for economics for his theory that variations in an economy's output depended on the sort of capital it had. Taking a quite different tack, in the late 1960s Arthur Okun, an economic adviser to presidents Kennedy and Johnson, proclaimed that the business cycle was ""obsolete"". A year later, the American economy was in recession. Again, in the late 1990s, some economists claimed that technological innovation and globalisation meant that the business cycle was a thing of the past. Alas, they were soon proved wrong.",economist,1,50.87,11.2,14.9,12.47,13.7,9.84,12.5,14.21
Buyer's market,A market in which supply seems plentiful and prices seem low; the opposite of a seller's market.,economist,1,62.68,8.7,0,8.7,9.3,10.05,10.5,11.51
Cannibalise,"Eating people is wrong. Eating your own business may not be. FIRMS used to be reluctant to launch new products and SERVICES that competed with what they were already doing, as the new thing would eat into (cannibalise) their existing business. In today's innovative, technology-intensive economy, however, a willingness to cannibalise is more often seen as a good thing. This is because INNOVATION often takes the form of what economists call creative destruction (see SCHUMPETER), in which a superior new product destroys the market for existing products. In this environment, the best course of action for successful firms that want to avoid losing their market to a rival with an innovation may be to carry out the creative destruction themselves.",economist,1,51.18,11.1,13.3,12.36,13.3,8.84,11.16666667,13
Capacity,"The amount a company or an economy can produce using its current equipment, workers, CAPITAL and other resources at full tilt. Judging how close an economy is to operating at full capacity is an important ingredient of MONETARY POLICY, for if there is not enough spare capacity to absorb an increase in DEMAND,   PRICES are likely to rise instead. Measuring an economy's OUTPUT GAP - how far current OUTPUT is above or below what it would be at full capacity - is difficult, if not impossible, which is why even the best-intentioned CENTRAL BANK can struggle to keep down INFLATION. When there is too much spare capacity, however, the result can be DEFLATION, as FIRMS and employees cut their prices and wage demands to compete for whatever demand there may be.",economist,1,38.69,15.9,16.8,10.8,17.7,9.65,22.66666667,17.26
Capital adequacy ratio,"The ratio of a BANK’s CAPITAL to its total ASSETS, required by regulators to be above a minimum (“adequate”) level so that there is little RISK of the bank going bust. How high this minimum level is may vary according to how risky a bank’s activities are.",economist,1,56.08,11.3,0,8.19,11.3,9.51,15.25,13.66
Capital asset pricing model,"A method of valuing ASSETS and calculating the COST OF CAPITAL (for an alternative, see ARBITRAGE PRICING THEORY). The capital asset pricing model (CAPM) has come to dominate modern finance.",economist,1,39.33,11.5,0,11.88,11.4,11.75,11,12.67
Capital controls,"government-imposed restrictions on the ability of CAPITAL to move in or out of a country. Examples include limits on foreign INVESTMENT in a country's FINANCIAL MARKETS, on direct investment by foreigners in businesses or property, and on domestic residents' investments abroad. Until the 20th century capital controls were uncommon, but many countries then imposed them. Following the end of the second world war only Switzerland, Canada and the United States adopted open capital regimes. Other rich countries maintained strict controls and many made them tougher during the 1960s and 1970s. This changed in the 1980s and early 1990s, when most developed countries scrapped their capital controls.",economist,1,53.51,10.2,13.8,14.15,13.8,10.03,11.5,12.36
Capital flight,"When CAPITAL flows rapidly out of a country, usually because something happens which causes investors suddenly to lose confidence in its economy. (Strictly speaking, the problem is not so much the MONEY leaving, but rather that investors in general suddenly lower their valuation of all the assets of the country.) This is particularly worrying when the flight capital belongs to the country’s own citizens. This is often associated with a sharp fall in the EXCHANGE RATE of the abandoned country’s currency.",economist,1,35.61,15,15.5,13,16.9,9.26,18.16666667,15.74
Capital intensive,A production process that involves comparatively large amounts of CAPITAL; the opposite of LABOUR INTENSIVE.,economist,1,30.87,12.7,0,17.68,15.6,12.8,12.5,16.67
Capital structure,"The composition of a company’s mixture of DEBT and EQUITY financing. A firm’s debt-equity ratio is often referred to as its GEARING. Taking on more debt is known as gearing up, or increasing lever age. In the 1960s, Franco Modigliani and Merton Miller (1923–2000) published a series of articles arguing that it did not matter whether a company financed its activities by issuing debt, or equity, or a mixture of the two. (For this they were awarded the NOBEL PRIZE FOR ECONOMICS.) But, they said, this rule does not apply if one source of financing is treated more favourably by the taxman than another. In the United States, debt has long had tax advantages over equity, so their theory implies that American FIRMS should finance themselves with debt. Companies also finance themselves by using the PROFIT they retain after paying dividends.",economist,1,59.53,9.9,12.8,10.73,12.1,9.9,12.6,12.01
CAPM,See CAPITAL ASSET PRICING MODEL.,economist,1,32.56,10,0,9.6,7.4,13.36,2.5,2
Catch-up effect,"In any period, the economies of countries that start off poor generally grow faster than the economies of countries that start off rich. As a result, the NATIONAL INCOME of poor countries usually catches up with the national income of rich countries. New technology may even allow DEVELOPING COUNTRIES  to leap-frog over industrialised countries with older technology. This, at least, is the traditional economic theory. In recent years, there has been considerable debate about the extent and speed of convergence in reality.",economist,1,46.37,10.9,13,13.05,12.3,8.88,11.2,12.9
Ceteris paribus,"Other things being equal. Economists use this Latin phrase to cover their backs. For example, they might say that “higher interest rates will lead to lower inflation, ceteris paribus”, which means that they will stand by their prediction about INFLATION only if nothing else changes apart from the rise in the INTEREST   RATE.",economist,1,61.97,9,11.9,11.54,11.6,8.98,11.16666667,10.85
Charity,"“Bah! Humbug”, was Scrooge’s opinion of charitable giving. Some economists reckon charity goes against economic rationality. Some have argued that the popularity of charitable giving is proof that people are not economically rational. Others argue that it shows that ALTRUISM is something that people get pleasure (UTILITY) from, and so are willing to spend some of their INCOME on it. An interesting question is the extent to which the state is competing with private charity when it redistributes money from rich to poor or spends more on health care and whether this is inefficient.",economist,1,52.39,10.6,13.3,12.47,12.6,9.1,12.6,13.05
Chicago School,"A fervently free-market economic philosophy long associated with the University of Chicago. At times, especially when KEYNESIAN ECONOMICS was the orthodoxy in much of the world, the Chicago School was regarded as a bastion of unworldly extremism. However, from the late 1970s it came to be regarded as mainstream by many and Chicago trained economists often played a crucial part in the implementation of policies of low INFLATION  and market LIBERALISATION that swept the world during the 1980s and 1990s. By 2003, boasted the University of Chicago, some 22 of the 49 then winners of the NOBEL PRIZE FOR ECONOMICS had been faculty members, students or researchers there.",economist,1,35.61,15,16.2,12.65,16.6,10.39,17.5,17.1
Classical dichotomy,See MONETARY NEUTRALITY.,economist,1,-24.64,17.4,0,15.03,14.6,14.31,2.5,27.87
Classical economics,"The dominant theory of economics from the 18th century to the 20th century, when it evolved into NEO-CLASSICAL ECONOMICS. Classical economists, who included Adam SMITH, David RICARDO and John Stuart Mill, believed that the pursuit of individual self-interest produced the greatest possible economic benefits for society as a whole through the power of the INVISIBLE HAND. They also believed that an economy is always in EQUILIBRIUM or moving towards it.",economist,1,30.91,14.7,17.9,14.1,16.1,11.33,18.33333333,18.46
Coase theorem,See EXTERNALITY.,economist,1,-49,20.6,0,10,14.9,11.63,1,20.8
Commoditisation,"The process of becoming a COMMODITY. Micro­chips, for example, started out as a specialised technical innovation, costing a lot and earning their makers a high PROFIT on each chip. Now chips are largely homogeneous: the same chip can be used for many things, and any manufacturer willing to invest in some fairly standardised equip ment can make them. As a result, COMPETITION is fierce and PRICES and profit margins are low. Some economists argue that in today's economy the faster pace of innovation will make the process of commoditisation increasingly common.",economist,1,53,10.4,12.7,12.13,12.2,10.61,11.9,12.55
Common goods,See TRAGEDY OF THE COMMONS.,economist,1,100.24,0.5,0,3.8,2.7,10.2,1.5,2
Comparative advantage,"Paul Samuelson, one of the 20th century's greatest economists, once remarked that the principle of comparative advantage was the only big idea that ECONOMICS had produced that was both true and surprising. It is also one of the oldest theories in economics, usually ascribed to DAVID RICARDO. The theory underpins the economic case for FREE TRADE. But it is often misunderstood or misrepresented by opponents of free trade. It shows how countries can gain from trading with each other even if one of them is more efficient - it has an ABSOLUTE ADVANTAGE - in every sort of economic activity. Comparative advantage is about identifying which activities a country (or firm or individual) is most efficient at doing.",economist,1,43.43,12,15.5,11.84,12.4,9.49,14.4,15.31
Competition,"The more competition there is, the more likely are FIRMS to be efficient and PRICES to be low. Economists have identified several different sorts of competition. PERFECT COMPETITION is the most competitive market imaginable in which everybody is a price taker. Firms earn only normal profits, the bare minimum PROFIT necessary to keep them in business. If firms earn more than this (excess profits) other firms will enter the market and drive the price level down until there are only normal profits to be made.",economist,1,54.22,9.9,12.3,10.96,10.7,7.64,11.1,10.56
Competitive advantage,Something that gives a firm (or a person or a country) an edge over its rivals.,economist,1,80.62,6,0,4.52,5.4,7.39,7,6.4
Competitiveness,"Real economists don't talk about competitiveness,' said Paul Krugman, a much-respected contemporary economist. Real businessmen and real politicians talk about it all the time, however. Many FIRMS have undergone savage downsizing to remain competitive, and governments have set up numerous committees to examine how to sharpen their countries' economic performance.",economist,1,29.14,13.3,16.3,17.8,16.7,11.41,13.66666667,18.68
Complementary goods,"When you buy a computer, you will also need to buy software. Computer hardware and software are therefore complementary goods: two products, for which an increase (or fall) in DEMAND for one leads to an increase (fall) in demand for the other. Complements are the opposite of SUBSTITUTE GOODS. For instance, Microsoft Windows-based  personal computers and Apple Macs are substitutes.",economist,1,56.25,9.1,12.6,12.11,11.4,9.38,10.25,12
Compound interest,"If a deposit account of $100 earns an INTEREST RATE of 10% a year, then at the end of the year the account will contain $110. If all of that money is left in the account, then the 10% interest will be paid on the $110, so at the end of the second year $11 of interest will be added, making $121 in all. This is known as compound interest. By contrast, SIMPLE INTEREST pays the 10% only on the original sum in the account.",economist,1,75.24,8.1,10.1,4.53,7.8,7.11,12.125,9.46
Concentration,"The tendency of a market to be dominated by a few big FIRMS. A high degree of concentration may be evidence of ANTITRUST problems, if it reflects a lack of COMPETITION. Traditionally, economists examined whether there was too much concentration using the HERFINDAHL-HIRSCHMAN INDEX, which is determined by adding the squares of the market shares of all firms involved. A low Herfindahl indicated many competitors and thus great difficulty in exercising MARKET POWER; a high Herfindahl, however, suggested a concentrated market in which PRICE rises are easier to sustain. More recently, antitrust authorities have placed less emphasis on concentration. One reason is that it is hard to define the market in which concentration should be measured. Instead, antitrust authorities have turned their attention to finding examples of firms earning excessive profits or holding back INNOVATION, although this too raises tricky conceptual and practical questions.",economist,1,42.11,12.5,15,14.74,15.4,10.58,14.4,14.91
Conditionality,"When there are strings attached, for example, to INTERNATIONAL AID or loans from the IMF or WORLD BANK. The delivery of the MONEY may be made subject to the GOVERNMENT of the country implementing economic or political reforms desired by the donor or lender.",economist,1,57.61,10.7,0,10.39,12.5,9.75,14.5,14.25
Consumer confidence,"How good consumers feel about their economic prospects. Measures of average consumer confidence can be a useful, though not infallible, indicators of how much consumers are likely to spend. Combined with measures such as business confidence, it can shed light on overall levels of economic activity.",economist,1,47.49,10.4,12.5,13.39,12.2,8.86,10.33333333,11.34
Consumer prices,"What people are usually thinking of when they worry about INFLATION. The PRICES paid by whoever finally consumes goods or SERVICES, as opposed to prices paid by FIRMS at various stages of the production process (see, for example, FACTORY PRICES).",economist,1,51.18,11.1,0,11.72,13,10.16,14,14
Consumer surplus,"The difference between what a consumer would be willing to pay for a good or service and what that consumer actually has to pay. Added to PRODUCER SURPLUS, it provides a measure of the total economic benefit of a sale.",economist,1,59.64,9.9,0,8.24,9.6,8.18,12.5,12
Contagion,"The domino effect, such as when economic problems in one country spread to another. (See Asian crisis.)",economist,1,62.68,8.7,0,10.38,11.2,10.05,10.5,9.15
Contestable market,"A market in which an inefficient firm, or one earning excess profits, is likely to be driven out by a more efficient or less profitable rival. A market can be contestable even if it is dominated by a single firm, which appears to enjoy a MONOPOLY with MARKET POWER, and the new entrant exists only as potential COMPETITION (see ANTITRUST).",economist,1,41.03,15,0,9.59,15.6,9.6,18,16
Convergence,See CATCH-UP EFFECT and DEVELOPING COUNTRIES.,economist,1,48.47,8,0,15.88,13,11.83,3,9.07
Corruption,"Being corrupt is not just bad for the soul, it also harms the economy. Research has found that in countries with a lot of corruption, less of their GDP goes into INVESTMENT and they have lower GROWTH rates. Corrupt countries invest less in education, a sector of the economy that pays big economic dividends but small bribes, than do clean countries, thereby reducing their HUMAN CAPITAL. They also attract less FOREIGN DIRECT INVESTMENT.",economist,1,61.36,9.2,12.2,11.08,11.3,9.52,11.625,11.16
Cost of capital,"The amount a firm must pay the owners of CAPITAL for the privilege of using it. This includes INTEREST payments on corporate DEBT, as well as the dividends generated for shareholders. In deciding whether to proceed with a project, FIRMS should calculate whether the project is likely to generate sufficient revenue to cover all the costs incurred, including the cost of capital. Calculating the cost of EQUITY capital can be tricky (see CAPITAL ASSET PRICING MODEL and BETA).",economist,1,51.68,10.9,14.9,11.66,12.3,10.88,14,14.47
Cost-benefit analysis,"A method of reaching economic decisions by comparing the costs of doing something with its benefits. It sounds simple and common-sensical, but, in practice, it can easily become complicated and is much abused. With careful selection of the assumptions used in cost-benefit analysis it can be made to support, or oppose, almost anything. This is particularly so when the decision being con templated involves some cost or benefit for which there is no market PRICE or which, because of an EXTERNALITY, is not fully reflected in the market price. Typical examples would be a project to build a hydroelectric dam in an area of outstanding natural beauty or a law to require factories to limit emissions of gases that may cause ill-health. (See SHADOW PRICE.)",economist,1,46.1,13,15.4,11.44,14.9,9.93,14,17.04
Creative destruction,See SCHUMPETER.,economist,1,77.91,2.9,0,7.1,12.5,11.63,0,0.8
Credit creation,"Making loans. Often the amount of credit creation is subject to REGULATION. Lenders may have limits on the amount of loans they can make relative to the ASSETS they have, so that they run little RISK of BANKRUPTCY (see Basel 1 and 2 and CAPITAL ADEQUACY RATIO). A CENTRAL BANK tries to keep the amount of credit creation below the level at which it would increase the MONEY SUPPLY so much that INFLATION accelerates. This was never easy to get right even when most lending was by BANKS, but it has become much harder with the recent growth of non-bank lending, such as by credit-card com­panies and retailers. Missing text",economist,1,60.48,11.7,12.2,9.41,14.3,9.59,14.25,13.55
Credit crunch,"When BANKS suddenly stop lending, or BOND market LIQUIDITY evaporates, usually because creditors have become extremely RISK AVERSE.",economist,1,27.83,13.9,0,18.21,17.4,14.18,15,20.53
Crony capitalism,"An approach to business based on looking after yourself by looking out for your own. At least until the crisis of the late 1990s, some Asian companies, and even governments, were notable for awarding contracts only to family and friends. This was often a form of CORRUPTION, resulting in economic inefficiency.",economist,1,54.22,9.9,11.9,11.19,11.1,9.43,10.83333333,11.51
Crowding out,"When the state does something it may discourage, or crowd out, private-sector attempts to do the same thing. At times, excessive GOVERNMENT borrowing has been blamed for low private-sector borrowing and, consequently, low INVESTMENT and (because the economic returns on public borrowing are typically lower than those on private DEBT, especially corporate debt) slower economic GROWTH. This has become less of a concern in recent years as government indebtedness has declined and, because of GLOBALISATION, FIRMS have become more able to raise CAPITAL outside their home country. Crowding out may also come from state spending on things that might be provided more efficiently by the private sector, such as health care, or even through CHARITY, redistribution.",economist,1,33.58,15.8,16.8,14.69,19.3,9.57,17.25,16.77
Currency board,"A means by which some countries try to defend their currency from speculative attack. A country that introduces a currency board commits itself to converting its domestic currency on demand at a fixed EXCHANGE RATE. To make this commit ment credible, the currency board holds RESERVES of foreign currency (or GOLD or some other liquid ASSET) equal at the fixed rate of exchange to at least 100% of the value of the domestic currency that is issued.",economist,1,53.85,12.1,14.6,10.51,14.2,8.81,16.83333333,13.4
Currency peg,When a GOVERNMENT announces that the EXCHANGE RATE of its currency is fixed against another currency or currencies. (See also CURRENCY BOARD.),economist,1,40.69,13.1,0,13.58,15.5,7.6,17,12.44
"De Soto, Hernando","A Peruvian economist who advocates establishing formal property rights for the poor to help them rapidly escape from poverty. In books such as The Other Path and The Mystery of Capital, he argued that, in developing countries, capitalism will thrive in the long run only if legal systems change so that most of the people feel that the law is on their side. One of the best ways to achieve this is to give full legal protection to the de facto property rights that are observed informally by the poor, such as when a community recognises that a certain family is entitled to occupy a particular piece of land.",economist,1,43.09,16.3,16.7,9.59,18.4,9.64,21.33333333,19.66
Deadweight cost/loss,"The extent to which the value and impact of a tax, tax relief or SUBSIDY is reduced because of its side-effects. For instance, increasing the amount of tax levied on workers’ pay will lead some workers to stop working or work less, so reducing the amount of extra tax to be collected. However, creating a tax relief or subsidy to encourage people to buy life insurance would have a deadweight cost because people who would have bought insurance anyway would benefit.",economist,1,52.53,12.6,14.1,10.1,14.5,8.68,17.16666667,14.75
Debt forgiveness,"Cancelling or rescheduling a borrower's debts to lessen the pain of the DEBT burden. Debt forgiveness is increasingly viewed as the best way to relieve the financial problems facing poorer countries. Some of these countries have to pay so much in INTEREST each year to foreign lenders that they  have little MONEY left to spend on the long-term solutions to their POVERTY, such as educating their workers and building a modern INFRASTRUCTURE. In 1998 the WORLD BANK calculated that around 40 of the world's poorest countries had an 'unsustainably high' debt burden: the present value of their total debts was more than 220% of their EXPORTS.",economist,1,53.04,12.4,12.2,11.61,15.6,10.02,15,14.37
Debt-equity ratio,See CAPITAL STRUCTURE.,economist,1,34.59,9.2,0,11.15,11.5,9.05,1.5,1.2
Deposit insurance,"Protection for your SAVINGS, in case your BANK goes Bust. Arrangements vary around the world, but in most countries deposit insurance is required by the GOVERNMENT and paid for by banks (and, ultimately, their customers), which contribute a small slice of their ASSETS to a central, usually government-run, insurance fund. If a bank defaults, this fund guarantees its customers' deposits, at least up to a certain amount. By reassuring banks' customers that their cash is protected, deposit insurance aims to prevent them from panicking and causing a bank run, and thereby reduces SYSTEMIC RISK. The United States introduced it in 1933, after a massive bank panic led to widespread BANKRUPTCY, deepening its DEPRESSION.",economist,1,57,10.9,14,13,15.2,10.07,13,14
Derivatives,"Financial ASSETS that 'derive' their value from other assets. For example, an option to buy a SHARE is derived from the share. Some politicians and others responsible for financial REGULATION blame the growing use of derivatives for increasing VOLATILITY in asset PRICES, and for being a source of danger to their users. Economists mostly regard derivatives as a good thing, allowing more precise pricing of financial RISK and better RISK MANAGEMENT. However, they concede that when derivatives are misused the LEVERAGE that is often an integral part of them can have devastating consequences. So they come with an economists' health warning: if you don't understand it, don't use it.",economist,1,53,10.4,13.6,12.18,12.5,9.32,11.5,12.42
Developing countries,"A euphemism for the world's poor countries, also known, often optimistically, as emerging economies. Some four-fifths of the world's 6 billion people already live in developing countries, many of them in abject POVERTY. Developing countries  account for less than one-fifth of total world GDP.",economist,1,56.55,9,8.8,13.62,12.7,9.39,7.333333333,7.7
Development economics,"Spawned by the end of the colonial era in the 1950s and 1960s, a whole branch of economic theory grew up around the question of how to promote economic development in poor countries. The proposition on which development economics was built was that poor countries were intrinsically different from rich ones and so needed their own set of economic models. Some development economists argued, for instance, that the self-interested, rational individual (HOMO ECONOMICUS) did not exist in traditional tribal societies. They claimed that because many poor countries had large agricultural populations and were often dependent on a few COMMODITY EXPORTS for foreign exchange earnings, economic policies that suited rich countries would not work for them. With hindsight, much of this was misguided, and policies based on it had disastrous effects. Development economists believed that the state had to play a big role in fostering modernisation. Instead, the result was huge, inefficient ­bureaucracies riddled with CORRUPTION, massive BUDGET deficits and rampant INFLATION. During the 1990s, most governments of DEVELOPING COUNTRIES started to reverse these policies and undo the damage they had done by introducing policies based on similar economic models to those that had worked in rich countries. However, the sequencing of these new policies seemed to make a big difference to how well they worked.  Doing the right things in the right order is crucial.",economist,1,37.64,14.2,15.3,14.1,16.8,9.79,18,15.16
Diminishing returns,"The more you have, the smaller is the extra benefit you get from having even more; also known as diseconomies of scale (see ECONOMIES OF SCALE). For instance, when workers have a lot of CAPITAL giving them a little more may not increase their PRODUCTIVITY anywhere near as much as would giving the same amount to workers who currently have little or no capital. This underpins the CATCH-UP      EFFECT, whereby there is (supposedly) convergence between the rates of GROWTH of DEVELOPING COUNTRIES and developed ones. In the NEW ECONOMY, some economists argue, capital may not suffer from diminishing returns, or at least the amount of diminishing will be much smaller. There may even be ever increasing returns.",economist,1,47.72,12.4,13.7,11.44,14,8.44,16.25,13.8
Direct taxation,"Taxes levied on the INCOME or wealth of an individual or company. Contrast with INDIRECT TAXATION. In much of the world, direct tax rates fell during the 1980s and 1990s, partly because some economists argued that high rates of tax on income discouraged people from working, and that high rates of tax on PROFIT encouraged companies to move to countries with lower rates. Furthermore, high rates of INCOME TAX were viewed as politically unpopular. Even so, although rates were cut, because both personal income and corporate profits grew steadily throughout this period the total amount collected via direct taxation continued to rise. Economists often disagree about which of direct taxes or indirect taxes are the least inefficient method of taxation.",economist,1,51.18,11.1,13.8,12.76,13.4,9.37,13.4,13.33
Discounted cashflow,"How much less is a sum of MONEY due in the future worth today? The answer is found by ­discounting the future cashflow, using an INTEREST RATE that reflects the fact that money in future is worth less than money now, because money now could be invested and earn INTEREST, whereas future money cannot. FIRMS use discounted cashflow to judge whether an INVESTMENT project is worthwhile. The interest rate is a means of reflecting the OPPORTUNITY COST of tying up money in the investment project. To test whether an investment makes economic sense the INCOME must be discounted so that it can be measured against the costs. If the present value of the benefits exceeds the costs, the investment is a good one.",economist,1,59.13,10.1,12.2,9.81,11.2,7.61,12.6,11.13
Diseconomies of scale,See ECONOMIES OF SCALE.,economist,1,118.18,-2.3,0,4.35,4.1,11.73,1,1.6
Division of labour,People are better off specialising than trying to be jacks of all trades and ending up masters of none. The logic of dividing the workforce into different crafts and professions is the same as that underpinning the case for FREE TRADE: everybody benefits from doing those things in which they have a COMPARATIVE ADVANTAGE and using INCOME from doing so to meet their other needs.,economist,1,46.95,14.8,0,11.15,17.7,9.38,20.75,17.31
Dollarisation,"When a country's own MONEY is replaced as its citizens' preferred currency by the US dollar. This can be a deliberate GOVERNMENT policy or the result of many private choices by buyers and sellers (for instance, at the first sign of trouble, investors across Latin America generally flee into dollars). When it is government policy, dollarisation is, in essence, a beefed up CURRENCY _x0001__x0001__x0001__x0001__x0001_BOARD.",economist,1,49.86,11.6,14.1,13.46,15.8,10.12,14.33333333,12.27
Dominant firm,"A firm with the ability to set PRICES in its market (see MONOPOLY, OLIGOPOLY and ANTITRUST).",economist,1,63.7,8.4,0,8.87,9.2,10.35,11,13.9
ECB,See EUROPEAN CENTRAL BANK.,economist,1,50.5,7.2,0,8.7,7.7,11.73,2,11.6
Economic and monetary union,"In January 1999, 11 of the 15 countries in the EUROPEAN UNION merged their national currencies into a single European currency, the EURO. This decision was motivated partly by politics and partly by hoped-for economic benefits from the creation of a single, integrated European economy. These benefits included currency stability and low INFLATION, underwritten by an independent EUROPEAN CENTRAL BANK (a particular boon for countries with poor inflation records, such as Italy and Spain, but less so for traditionally low-inflation Germany). Furthermore, European businesses and individuals stood to save from handling one currency rather than many. Comparing PRICES and WAGES across the euro zone became easier, increasing COMPETITION by making it easier for companies to sell throughout the euro-zone and for consumers to shop around.",economist,1,20.72,16.6,19.1,15.26,17.9,10.81,16.6,18.32
Economic indicator,"A statistic used for judging the health of an economy, such as GDP per head, the rate of UNEMPLOYMENT or the rate of INFLATION. Such statistics are often subject to huge revisions in the months and years after they are first published, thus causing difficulties and embarrassment for the economic policymakers who rely on them.",economist,1,43.56,14,0,11.26,15.7,10.46,18.25,17.55
Economic man,"At the heart of economic theory is homo economicus, the economist's model of human behaviour. In traditional CLASSICAL ECONOMICS and in NEO-CLASSICAL ECONOMICS it was assumed that people acted in their own self-interest. Adam SMITH argued that society was made better off by everybody pursuing their selfish interests through the workings of the INVISIBLE HAND. However, in recent years, mainstream economists have tried to include a broader range of human motivations in their models. There have been attempts to model ALTRUISM and CHARITY. BEHAVIOURAL ECONOMICS has drawn on psychological insights into human behaviour to explain economic phenomena.",economist,1,29.65,13.1,15,14.9,13.6,10.95,12.41666667,14.32
Economic sanctions,"A way of punishing errant countries, which is currently more acceptable than bombing or invading  them. One or more restrictions are imposed on international trade with the targeted country in order to persuade the target's GOVERNMENT to change a policy. Possible sanctions include limiting export or import trade with the target; constraining INVESTMENT in the target; and preventing TRANSFERS of MONEY involving citizens or the government of the target. Sanctions can be multi­lateral, with many countries acting together, perhaps under the auspices of the United Nations, or unilateral, when one country takes action on its own.",economist,1,30.2,15,15.9,14.63,16.8,10.42,17,16.27
Effective exchange rate,See TRADE-WEIGHTED EXCHANGE RATE.,economist,1,75.88,3.7,0,17.4,15.9,7.78,1,1.6
Efficiency wages,WAGES that are set at above the market clearing rate so as to encourage workers to increase their PRODUCTIVITY.,economist,1,60.65,9.5,0,10.79,11.1,9.57,11.5,11.81
Efficient market hypothesis,"You can't beat the market. The efficient market hypothesis says that the PRICE of a financial ASSET reflects all the INFORMATION available and responds only to unexpected news. Thus prices can be regarded as optimal estimates of true investment value at all times. It is impossible for investors to predict whether the price will move up or down (future price movements are likely to follow a RANDOM WALK), so on AVERAGE an investor is unlikely to beat the market. This belief underpins ­ARBITRAGE PRICING THEORY, the CAPITAL ASSET PRICING MODEL and concepts such as BETA.",economist,1,52.19,10.7,13.3,11.31,11.8,10.23,12.7,13.49
Emerging markets,See DEVELOPING COUNTRIES.,economist,1,9.21,12.7,0,16.95,16.2,14.31,1.5,14.53
Endogenous,Inside the economic model; the opposite of EXOGENOUS (see also GROWTH).,economist,1,43.39,9.9,0,11.58,10.2,11.36,7.5,15.31
Engel's law,"People generally spend a smaller share of their BUDGET on food as their INCOME rises. Ernst Engel, a Russian statistician, first made this observation in 1857. The reason is that food is a necessity, which poor people have to buy. As people get richer they can afford better-quality food, so their food spending may increase, but they can also afford LUXURIES beyond the budgets of poor people. Hence the share of food in total spending falls as incomes grow.",economist,1,63.9,8.3,9.4,9.57,9.2,9.02,8.1,9.36
Environmental economics,"Some people think CAPITALISM is wholly bad for the environment as it is based on consuming scarce resources. They want less CONSUMPTION and greater reliance on renewable resources. They oppose FREE TRADE because they favour self-sufficiency (AUTARKY), or at least so-called FAIR TRADE, and because they believe it encourages poorer countries to destroy their natural resources in order to get rich quick. Although few professional economists would share these views, in recent years many attempts have been made to incorporate environmental concerns within mainstream economics.",economist,1,41.4,12.8,13.4,15.66,16.6,10.82,13.875,14.64
Equity risk premium,"The extra reward investors get for buying a SHARE over what they get for holding a less risky ASSET, such as a government BOND. Modern financial theory assumes that the premium will be just big enough on AVERAGE to compensate the investor for the extra RISK. However, studies have found that the average equity premium over many years has been much larger than appears to be justified by the average riskiness of shares. To solve this so-called equity premium puzzle, some economists have suggested that investors may have greater risk aversion towards shares than traditional theory assumes. Some claim that the past equity premium was mismeasured, or reflected an unrepresentative sample of share PRICES. Others suggest that the high premium is evidence that the EFFICIENT MARKET HYPOTHESIS does not apply to the stockmarket. Some economists think that the premium fell to more easily explained levels during the 1990s. Nobody really knows which, if any, of these interpretations is right.",economist,1,51.28,11.1,14.9,12.53,13.2,9.49,13.8,12.99
Euro Zone,The economy comprising all the countries that have adopted the euro. There is much debate among economists about whether the euro zone is in fact an optimal currency area.,economist,1,65.22,7.8,0,10.32,9,10.89,8.75,12.7
European Central Bank,"The CENTRAL BANK of the EUROPEAN UNION, responsible since January 1999 for setting the official short-term INTEREST RATE in countries using the EURO as their domestic currency. In this role, the European Central Bank (ECB) replaced national central banks such as Germany's Bundesbank, which became local branches of the ECB.",economist,1,37.64,14.2,0,13.87,17,11.51,17.5,16.4
Evolutionary economics,"A Darwinian approach to ECONOMICS, sometimes called institutional economics. Following the tradition of SCHUMPETER, it views the economy as an evolving system and places a strong emphasis on dynamics, changing structures (including technologies, institutions, beliefs and behaviour) and DISEQUILIBRIUM processes (such as INNOVATION, selection and imitation).",economist,1,5.83,18.2,0,20.95,22.1,13.7,20.5,23.11
Excess returns,"Getting more money from an economic INVESTMENT than you needed to justify investing. In PERFECT COMPETITION, the FACTORS OF PRODUCTION earn only normal RETURNS, that is, the minimum amount of WAGES, PROFIT, INTEREST or RENT needed to secure their use in the economic activity in question, rather than in an alternative. Excess returns can only be earned for more than a short period when there is MARKET FAILURE, especially MONOPOLY, because otherwise the existence of excess returns would quickly attract COMPETITION, which would drive down returns until they were normal.",economist,1,32.57,16.2,16.7,13.7,18.9,9.69,20.66666667,18.22
Exchange controls,"Limits on the amount of foreign currency that can be taken into a country, or of domestic currency that can be taken abroad.",economist,1,56.59,11.1,0,8.25,10.9,8.21,14.5,12.68
Exogenous,"Outside the model. For instance, in traditional NEO-CLASSICAL ECONOMICS, models of GROWTH rely on an exogenous factor. To keep growing, an eco­nomy needs continual infusions of technological progress. Yet this is a force that the neo-classical model makes no attempt to explain. The rate of technological progress comes from outside the model; it is simply assumed by the economic modellers. In other words, it is exogenous. New growth theory tries to calculate the rate of technological progress inside the economic model by mapping its relationship to factors such as HUMAN CAPITAL, free markets, COMPETITION and GOVERNMENT expenditure. Thus, in these models, growth is ­ENDOGENOUS.",economist,1,41.36,10.7,12.4,13.15,11.4,10.35,7.75,10.58
Expected returns,"The CAPITAL GAIN plus INCOME that investors think they will earn by making an INVESTMENT, at the time they invest.",economist,1,68.1,8.7,0,9.69,10.9,7.79,12,10
Expenditure tax,"A tax on what people spend, rather than what they earn or their wealth. Economists often regard it as more efficient than other taxes because it may discourage productive economic activity less; it is not the creating of INCOME and wealth that is taxed, but the spending of it. It can be a form of INDIRECT TAXATION, added to the PRICE of a good or service when it is sold, or DIRECT TAXATION, levied on people's income minus their SAVINGS over a year.",economist,1,60.28,11.7,13.6,8.19,13.4,8.24,17.16666667,15.42
Export credit,"Loans to boost EXPORTS. In many countries these are subsidised by a GOVERNMENT keen to encourage exports. Typically, the CREDIT comes in two forms: loans to foreign buyers of domestic produce; and guarantees on loans made by BANKS to domestic companies so they can produce the exports that should pay off the loan. This effectively insures producers against non-payment. When governments compete aggressively with export credits to win business for domestic FIRMS the sums involved can become large. The economic benefit of export credits is unclear at the best of times. This may be because they are largely motivated by political goals.",economist,1,56.66,9,12,12.06,10.6,10.09,8.428571429,10.94
Factor cost,"A measure of OUTPUT reflecting the costs of the factors of production used, rather than market prices, which may differ because of indirect tax and subsidy (see gdp).",economist,1,51.52,13,0,10.8,15.9,10.66,17,15.49
Factors of production,"The ingredients of economic activity: land, labour, capital and enterprise.",economist,1,10.56,14.3,0,17.2,14.7,12.03,9,20
Factory prices,"The prices charged by producers to wholesalers and retailers. Because these prices are eventually passed on to the end customer, changes in factory prices, also known as producer prices, can be a leading indicator of consumer price inflation.",economist,1,52.19,10.7,0,13.23,13.5,9.98,13,13.92
Fair trade,"Many politicians and NGOs argue that free trade is not enough; it should also be fair. On the face of it, fairness is self-evidently a good thing. However, fairness, in trade as in beauty, lies in the eye of the beholder. Frederic Bastiat, a 19th-century French satirist, once observed that the sun offered unfair competition to candle makers. If windows could be boarded up during the day, he argued, more jobs could be created making candles. American trade unions complain that Mexicans' lower wages, say, give them an unfair advantage. Mexicans say they cannot compete fairly against more productive American counterparts. Both sides are wrong. Mexicans are paid less than Americans largely because they are, in general, less productive. There is nothing unfair about that; indeed, it helps to make trade mutually beneficial. The mutual benefits of trade also disprove the fair traders' other complaint, that free trade harms poor countries. (See comparative advantage.)",economist,1,57.27,8.8,11.7,11.77,10.7,9.15,8.142857143,10.28
FDI,See foreign direct investment.,economist,1,33.58,9.6,0,14.5,12.4,11.73,2,11.6
Financial centre,"A place in which an above-average amount of financial business takes place. The big ones are New York, London, Tokyo and Frankfurt. Small ones such as Dublin, Bermuda, Luxembourg and the Cayman Islands also play an important part in the global financial system. globalisation and the increase in electronic trading has raised concerns about whether there will be as much need for financial centres in the 21st century as there was in the 19th and 20th centuries. So far, the evidence suggests that the biggest, at least, will remain important.",economist,1,57.1,10.9,12.6,11.44,13.6,10.19,14,12.11
Financial instrument,"Certificate of ownership of a financial asset, such as a bond or a share.",economist,1,65.73,7.6,0,6.14,5.8,9.97,9,14.17
Financial intermediary,A middleman. An individual or institution that brings together investors (the source of funds) and users of funds (such as borrowers). May be increasingly at risk of disintermediation.,economist,1,40.35,11.1,0,13.22,12,11.1,10.5,14.17
Financial markets,See capital markets and money markets.,economist,1,48.47,8,0,10.08,7.5,6.57,3,2.4
Fine tuning,"A favourite government policy in the keynesian-dominated 1950s and 1960s, involving frequent adjustments to fiscal policy and/or monetary policy to alter the level of demand to keep the economy growing at a steady rate. The trouble was and is, partly because of the inadequacies of economic forecasting, that these frequent adjustments were and are often mistaken, making the economy's growth path more, rather than less, erratic. In the 1990s, fine tuning was increasingly shunned by central banks and governments, which stopped trying to manage short-term demand and instead aimed to pursue long-term macroeconomic goals, which required fewer adjustments to policy. Or so they claimed. In practice, there continued to be some attempted fine tuning.",economist,1,39.87,13.4,15.4,14.39,16.3,10.58,23.66666667,15.44
First-mover advantage,"The early bird gets the worm. game theory shows that being the first to enter a market or to introduce an innovation can be a huge advantage, not just because the first firm in can erect barriers to entry, but also because potential rivals may be discouraged from committing the resources necessary to compete successfully. However, this advantage may sometimes be cancelled out by the benefits enjoyed by followers, such as the chance to avoid--and learn from--the mistakes made by the first mover. (See incumbent advantage.)",economist,1,27.83,20.1,0,12.43,24.2,10.54,29.5,23.25
Fiscal drag,"A nice little earner for the state. Fiscal drag is the tendency of revenue from taxation to rise as a share of GDP in a growing economy. Tax allowances, progressive tax rates and the threshold above which a particular rate of tax applies usually remain constant or are changed only gradually. By contrast, when the economy grows, income, spending and corporate profit rise. So the tax-take increases too, without any need for government action. This helps slow the rate of increase in demand, reducing the pace of growth, making it less likely to result in higher inflation. Thus fiscal drag is an automatic stabiliser, as it acts naturally to keep demand stable.",economist,1,55.24,9.5,11.8,10.21,9.8,9.65,8,11.4
Fiscal neutrality,"When the net effect of taxation and public spending is neutral, neither stimulating nor dampening demand. The term can be used to describe the overall stance of fiscal policy: a balanced budget is neutral, as total tax revenue equals total public spending. It can also refer more narrowly to the combined impact of new measures introduced in an annual budget: the budget can be fiscally neutral if any new taxes equal any new spending, even if the overall stance of the budget either boosts or slows demand.",economist,1,42.04,14.6,12.5,10.86,15.9,9.98,17.16666667,15.28
Fixed costs,"Production costs that do not change when the quantity of output produced changes, for instance, the cost of renting an office or factory space. Contrast with variable costs.",economist,1,65.73,7.6,0,11.53,10.1,9.97,7.5,8.46
Foreign direct investment,"Investing directly in production in another country, either by buying a company there or establishing new operations of an existing business. This is done mostly by companies as opposed to financial institutions, which prefer indirect investment abroad such as buying small parcels of a country's supply of shares or bonds. Foreign direct investment (FDI) grew rapidly during the 1990s before slowing a bit, along with the global economy, in the early years of the 21st century. Most of this investment went from one oecd country to another, but the share going to developing countries, especially in Asia, increased steadily.",economist,1,37.84,14.1,15.9,13.12,16,10.61,17.375,15.98
Forward contracts,See derivatives.,economist,1,-6.7,14.7,0,10,14.9,11.63,1,20.8
Free lunch,There's no such thing. See opportunity cost.,economist,1,67.92,4.7,0,4.62,5.9,8.32,1.25,7.11
Free riding,"Getting the benefit of a good or service without paying for it, not necessarily illegally. This may be possible because certain types of goods and services are actually hard to charge for--a firework display, for instance. Another way to look at this may be that the good or service has a positive externality. However, there can sometimes be a free-rider problem, if the number of people willing to pay for the good or service is not enough to cover the cost of providing it. In this case, the good or service might not be produced, even though it would be beneficial for the economy as a whole to have it. public goods are often at risk of free riding; in their case, the problem can be overcome by financing the good by imposing a tax on the entire population.",economist,1,51.72,13,13,8.36,13.7,7.63,12,14.57
Free trade,"The ability of people to undertake economic transactions with people in other countries free from any restraints imposed by governments or other regulators. Measured by the volume of imports and exports, world trade has become increasingly free in the years since the second world war. A fall in barriers to trade, as a result of the general agreement on tariffs and trade and its successor, the world trade organisation, has helped stimulate this growth. The volume of world merchandise trade at the start of the 21st century was about 17 times what it was in 1950, and the world's total output was not even six times as big.  The ratio of world exports to gdp had more than doubled since 1950. Of this, trade in manufactured goods was worth three times the value of trade in services, although the share of services trade was growing fast.",economist,1,58.76,12.3,13,10.34,15.6,9.41,16,15.52
Frictional unemployment,"That part of the jobless total caused by people simply changing jobs and taking their time about it, because they are spending time on job search or are taking a break before starting with a new employer. There is likely to be some frictional unemployment even when there is technically full employment, because most people change jobs from time to time.",economist,1,57.44,12.8,0,10.86,16.5,8.51,17.75,15.48
"Friedman, Milton","Loved and loathed; perhaps the most influential economist of his generation. He won the nobel prize for economics in 1976, one of many chicago school economists to receive that honour. He has been recognised for his achievements in the study of consumption, monetary history and theory, and for demonstrating how complex policies aimed at economic stabilisation can be.",economist,1,51.89,10.8,14.6,13.23,13.6,10.58,13.66666667,15.31
Fungible,"You can't tell them apart. Something is fungible when any one single specimen is indistinguishable from any other. Somebody who is owed $1 does not care which particular dollar he gets. Anything that people want to use as money must be fungible, whether it be gold bars, beads or shells.",economist,1,75.71,5.8,9.5,8.51,7.2,7.73,6.5,8.2
"G7, G8, G10, G21, G22, G26","I don't want to belong to any club that will accept me as a member, quipped Groucho Marx. But the world's politicians are desperate to join the economic clubs that are the Group of Seven (G7), G8, G10 and so on. Being a member shows that, economically speaking, your country matters. Alas, beyond making politicians feel good, there has not been much evidence in recent years that they do anything useful, apart from letting government officials and journalists talk to each other about economics and politics, usually in beautiful locations with lots of fine food and drink on hand.",economist,1,54.76,11.8,13,10.45,14,9.17,15.375,13.96
Game theory,"How to win at Twister? No, but maybe at monopoly. Game theory is a technique for analysing how people, firms and governments should behave in strategic situations (in which they must interact with each other), and in deciding what to do must take into account what others are likely to do and how others might respond to what they do. For instance, competition between two firms can be analysed as a game in which firms play to achieve a long-term competitive advantage (perhaps even a monopoly). The theory helps each firm to develop its optimal strategy for, say, pricing its products and deciding how much to produce; it can help the firm to anticipate in advance what its competitor will do and shows how best to respond if the competitor does something unexpected. It is particularly useful for understanding behaviour in monopolistic competition.",economist,1,47.32,12.6,14.8,11.09,13.9,8.79,13,15.11
GATT,See general agreement on tariffs and trade and world trade organisation.,economist,1,51.85,8.8,0,13.73,10.6,8.49,6.5,8.04
GDP,"Gross domestic product, a measure of economic activity in a country. It is calculated by adding the total value of a country's annual output of goods and services. GDP = private consumption + investment + public spending + the change in inventories + (exports - imports). It is usually valued at market prices; by subtracting indirect tax and adding any government subsidy, however, GDP can be calculated at factor cost. This measure more accurately reveals the income paid to factors of production. Adding income earned by domestic residents from their investments abroad, and subtracting income paid from the country to investors abroad, gives the country's gross national product (GNP).",economist,1,37.1,12.4,13.8,13.8,13.7,10.62,11.66666667,13.09
General Agreement on Tariffs and Trade,"Or GATT, the vehicle for promoting international free trade, through a series of rounds of negotiations between the governments of trading countries. The first GATT round began in 1945. The last led to the establishment of the world trade organisation in 1995.",economist,1,57.27,8.8,11.9,11.71,10.1,9.59,8.333333333,12.27
General equilibrium,"Economic perfection. This is when demand and supply are in balance (the market is in equilibrium) for each and every good and service in the economy. Nobody thinks that real-world economies can ever be that perfect; at best there is ""partial equilibrium"". But most economists think that general equilibrium is something worth aspiring to.",economist,1,53.21,10.3,13.6,11.95,12.4,8.33,12.33333333,11.64
Generational accounting,"A relatively new way of analysing fiscal policy by identifying the financial costs and benefits of government policies to people of different ages, now living or yet to be born. Fiscal policy can distribute resources between different generations, sometimes deliberately and often inadvertently. At any moment in time, one generation may be in work and paying taxes that support other generations (those at school or retired) that are not working. Over its lifetime, one generation's mix of taxes paid and benefits received may differ sharply from that of another generation. Politicians are often tempted to ignore the needs of future generations (who, clearly, cannot vote at the time) in order to win the support of current generations, for instance by borrowing heavily to fund current spending. More fundamentally, because it incorporates all the tax and spending, current and future, to which a government is committed, generational accounting is a much better guide to whether fiscal policy is sustainable than measures such as the budget deficit, which looks only at taxes and spending in the current year.",economist,1,33.28,15.9,16.1,13.47,18.4,9.49,13.8,16.04
Giffen goods,"Named after Robert Giffen (1837-1910), a good for which demand increases as its price rises. But such goods may not exist in the real world.",economist,1,75.71,5.8,0,7.35,6.7,9.94,6.25,8.2
Gini coefficient,"An inequality indicator. The Gini coefficient measures the inequality of income distribution within a country. It varies from zero, which indicates perfect equality, with every household earning exactly the same, to one, which implies absolute inequality, with a single household earning a country's entire income. Latin America is the world's most unequal region, with a Gini coefficient of around 0.5; in rich countries the figure is closer to 0.3.",economist,1,37,12.4,13,13.28,13.3,10.9,11.625,11.56
Global public goods,"Public goods that cannot be provided by one country acting alone but only by the joint efforts of many (strictly, all) countries. Some economists, along with global institutions such as the UN, reckon that such goods include international law and law enforcement, a stable global financial system, an open trading system, health, peace and enviromental sustainability.",economist,1,34.6,15.4,0,14.28,18.9,10.38,18,16.91
Globalisation,"A buzz word that refers to the trend for people, firms and governments around the world to become increasingly dependent on and integrated with each other. This can be a source of tremendous opportunity, as new markets, workers, business partners, goods and services and jobs become available, but also of competitive threat, which may undermine economic activities that were viable before globalisation.",economist,1,31.55,16.6,0,14.57,20.1,11.03,20.5,18.85
gni,"Short for gross national income, a term now used instead of gnp in national accounts.",economist,1,64.71,8,0,8.81,8.3,8.59,8.5,8.67
Gold,"For much of human history gold has been an important ingredient of economic activity. But its importance declined during the 20th century and may continue to shrink in future. The gold standard, which fixed exchange rates to the value of gold during the 19th and early 20th centuries, has been long abandoned. central banks, which in 2000 still owned 30,000 tonnes, over one-quarter of all the gold ever mined, no longer feel the need to have large reserves of the metal to support the value of their currency. It does not pay them any interest, though they may earn a little by lending it to bullion dealers. So they have started to sell.",economist,1,65.46,9.7,11.2,9.35,11.8,9.51,15,11.87
Golden rule,"Over the economic cycle, a government should borrow only to invest and not to finance current spending. This rule is certainly a prudent approach to fiscal policy, provided that governments are honest in describing spending as investment, that they invest in appropriate things and do so efficiently, and that they are careful to avoid crowding out superior private investment. But there are other fiscal policy options that may make as much sense. See, for example, balanced budget.",economist,1,43.43,12,13.8,12.65,13.1,9.72,13.125,12.91
Government bonds,See bonds and gilts.,economist,1,118.18,-2.3,0,0,0.6,11.73,1,1.6
Government expenditure,"Spending by national and local government and some government-backed institutions. See fiscal policy, golden rule and budget.",economist,1,29.01,11.3,0,16.49,13,11.49,5.75,10.46
Government revenue,See taxation.,economist,1,35.61,8.8,0,1.3,7.8,11.63,1,20.8
"Greenspan, Alan","The most famous of all central bank bosses, so far. A former jazz musician turned economist, he became chairman of the board of governors of America's Federal Reserve in 1987, shortly before Wall Street crashed. In 2003, he was reappointed until 2005. He won admirers for delivering monetary policy that helped to bring down inflation and create the conditions for strong economic growth. Some people considered him the nearest thing capitalism had to God. In 1996, he famously wondered aloud whether rising share prices were the result of ""irrational exuberance"". Economists debate whether history will judge him a failure because he did not prevent the growth of a huge bubble in America's economy.",economist,1,55.13,9.6,13.3,11.77,11.1,10.72,9,13.52
Gresham's law,"Bad money drives out good. One of the oldest laws in economics, named after Sir Thomas Gresham, an adviser to Queen Elizabeth I of England. He observed that when a currency has been debased and a new one is introduced to replace it, the new one will be hoarded and effectively taken out of circulation, while the old one will continue to be used for transactions, to be got rid of as fast as possible.",economist,1,63.02,10.7,13.6,7.67,11.6,9.09,15.83333333,14.8
Gross domestic product,See gdp.,economist,1,120.21,-3.1,0,-13.21,-4,11.63,0,0.8
Gross national product,See gnp.,economist,1,120.21,-3.1,0,-13.21,-4,11.63,0,0.8
Growth,"What economic activity is all about, but how can it be made to happen? Economists have plenty of theories, but none of them has all the answers.",economist,1,74.69,6.2,0,6.6,5.9,7.23,7.75,11.33
Hard currency,"MONEY you can trust. A hard currency is expected to retain its value, or even benefit from APPRECIATION, against softer currencies. This makes it a popular choice for people involved in international transactions. The dollar, D-MARK, sterling and the Swiss franc each became a hard currency, if only some of the time, during the 20th century.",economist,1,57.27,8.8,12.2,10.72,9.7,9.41,8.5,12.03
"Hayek, Friedrich","An influential economist of the Austrian school, who won the NOBEL PRIZE FOR ECONOMICS in 1974 for his theory of the BUSINESS CYCLE many years after this body of work seemed to have been disproved by KEYNES. Born in 1899, Hayek attended his home-town University of Vienna after the first world war. He was attracted to SOCIALISM until he read a pioneering Austrian economist, Ludwig von Mises, on the subject, after which, he said, 'the world was never the same again'.",economist,1,52.53,12.6,15,9.93,14.7,9.85,17.83333333,16.23
Hedge funds,"These bogey-men of the FINANCIAL MARKETS are often blamed, usually unfairly, when things go wrong. There is no simple definition of a hedge fund (few of them actually HEDGE). But they all aim to maximise their absolute returns rather than relative ones; that is, they concentrate on making as much MONEY as possible, not (like many mutual funds) simply on outperforming an index. Although they are often accused of disrupting financial markets by their SPECULATION, their willingness to bet against the herd of other investors may push security prices closer to their true fundamental values, not away.",economist,1,46.81,12.8,15.2,12.31,15.3,10.21,16.625,15.91
Herfindahl-Hirschman index,"A warning signal of possible MONOPOLY. ANTITRUST economists often gauge the COMPETITIVENESS of an industry by measuring the extent to which its OUTPUT is concentrated among a few FIRMS. One such measure is a Herfindahl-Hirschman index. To calculate it, take the market share of each firm in the industry, square it, then add them all up. If there are 100 equal-sized firms (a market with close to PERFECT COMPETITION) the index is 100. If there are four equal-sized firms (possible OLIGOPOLY) it will be 2,500. The higher the Herfindahl number, the more concentrated is MARKET POWER.",economist,1,66.03,7.5,10.9,10.49,9.4,8.59,7.714285714,9.23
Homo economicus,See ECONOMIC MAN.,economist,1,59.97,5.6,0,1.52,3.6,9.05,1.5,14.53
Horizontal equity,One way to keep TAXATION fair. Horizontal equity means that people with a similar ability to pay taxes should pay the same amount. (See EQUITY and VERTICAL EQUITY.),economist,1,48.81,9.9,0,9.45,8.6,8.28,11,14.17
Hot money,"money that is held in one currency but is liable to switch to another currency at a moment’s notice in search of the highest available RETURNS, thereby causing the first currency’s EXCHANGE RATE to plummet. It is often used to describe the money invested in currency markets by speculators.",economist,1,46.61,12.8,0,11.32,14.1,9.04,16.25,13.88
House prices,"When they go through the roof it is usually a warning sign that an economy is overheating. House prices often rise after INTEREST RATE reductions, which lower mortgage payments and thus give buyers the ability to fund a larger amount of borrowing and so offer a higher price for their new home. Strangely, people often regard house-price INFLATION as good news, even though it creates as many losers as gainers. They argue that rising house prices help to boost consumer confidence, and are part of the WEALTH EFFECT: as house prices rise, people feel wealthier and so spend more. However, against this must be set a negative wealth effect. An increase in house prices makes many people worse off, such as first-time buyers and anyone planning to trade up to a better property.",economist,1,65.86,9.6,11.5,10.15,12.5,8.77,15.25,12.49
Human Development Index,"The 'good life' guide. Calculated since 1990 by the United Nations Development Programme, the Human Development Index quantifies a country's development in terms of such things as education, length of life and clean water, as well as INCOME. Since the mid-1970s, the quality of life for humans throughout the world has improved enormously overall. America's human development index rose by around one-tenth between 1975 and 2001, for example. More spectacularly, during the same period, China's rose by around 40% and Indonesia's by nearly 50%. Even so, in 2001, some 54 countries were poorer than in 1990, and in 34, mostly in Africa and the former Soviet Union, life expectancy had fallen, reversing an impressive long-term trend, largely because of the HIV/AIDS epidemic and crime. Some 21 countries had a lower overall human development index in 2003 than in 1990.",economist,1,51.28,11.1,12.8,11.78,13.2,10.76,10.66666667,12.56
Hyper-inflation,"Very, very bad. Although people debate when, precisely, very rapid INFLATION turns into ­hyper-inflation (a 100% or more increase in PRICES a year, perhaps?) nobody questions that it wreaks huge economic damage. After the first world war, German prices at one point were rising at a rate of 23,000% a year before the country’s economic system collapsed, creating a political opportunity grasped by the Nazis. In former Yugoslavia in 1993, prices rose by around 20% a day. Typically, hyper-inflation quickly leads to a complete loss of confidence in a country’s currency, and causes people to search for other forms of MONEY that are a better store of value. These may include physical ASSETS, GOLD and foreign currency. Hyper-inflation might be easier to live with if it was stable, as people could plan on the basis that prices would rise at a fast but predictable rate. However, there are no examples of stable hyper-inflation, precisely because it occurs only when there is a crisis of confidence across the economy, with all the behavioural unpredictability this implies.",economist,1,49.25,11.8,12.8,11.49,13.8,9.14,12.4,11.96
ILO,"Short for International Labour Organisation, founded in 1919 as part of the Treaty of Versailles, which created the League of Nations. In 1946, it became the first specialised agency of the UN. Based in Geneva, it formulates international LABOUR standards, setting out desired minimum rights for workers: freedom of association; the right to organise and engage in collective bargaining; equality of opportunity and treatment; and the abolition of forced labour. It also compiles international labour statistics. One reason for its formation was the hope that international labour standards would stop countries using lower standards to gain a COMPETITIVE ADVANTAGE. From the 1980s onwards, the ILO approach came under attack as attention turned to the costs of high labour standards, notably slower economic GROWTH. Universal minimum labour standards might also work against FREE TRADE. Imposing rich-country labour standards on poorer countries might help keep the rich rich and the poor poor.",economist,1,43.93,11.8,13.2,14.68,14.5,10.15,13.8,12.59
IMF,"Short for International Monetary Fund, referee and, when the need arises, rescuer of the world's FINANCIAL SYSTEM. The IMF was set up in 1944 at BRETTON WOODS, along with the WORLD BANK, to supervise the newly established fixed EXCHANGE RATE system. After this fell apart in 1971-73, the IMF became more involved with its member countries' economic policies, doling out advice on FISCAL POLICY and MONETARY POLICY as well as microeconomic changes such as PRIVATISATION, of which it became a forceful advocate. In the 1980s, it played a leading part in sorting out the problems of DEVELOPING COUNTRIES' mounting DEBT. More recently, it has several times co-ordinated and helped to finance assistance to countries with a currency crisis.",economist,1,47.52,12.5,14.3,12.42,15.1,11.36,16,14.86
Income tax,"A much-loathed method of TAXATION based on earnings. It was first collected in 1797 by the Dutch Batavian Republic. In the UK it was introduced in 1799 as a “temporary” measure to finance a war against Napoleon, abolished in 1816 and reintroduced, forever, in 1842. In most countries, people do not pay it until their INCOME exceeds a minimum threshold, and richer people pay a higher rate of income tax than poorer people. Since the 1980s, the unpopularity with voters of high rates of income tax and concern that high rates discourage valuable economic activity have led many governments to reduce income-tax rates. However, this has not necessarily reduced the amount of total revenue collected in income tax (see LAFFER CURVE). Nor do governments that have reduced income tax rates always cut other sorts of taxes; on the contrary, they have often increased them sharply to make up for any revenue lost as a result of lower rates of income tax.",economist,1,56.59,11.1,12,10.68,13.1,9.68,12.6,12.68
Incumbent advantage,"The importance of being there already. FIRMS that are in a market can have a significant COMPETITIVE ADVANTAGE over aspiring entrants to that market, for instance, through having the opportunity to erect barriers to entry. (See FIRST-MOVER ADVANTAGE.)",economist,1,35.27,13.1,0,14.16,14.6,9.98,13.5,14.97
Index numbers,"Economists love to compile indices aggregating lots of individual data, so they can analyse broad trends in the behaviour of an economy. INFLATION is measured by an index of consumer (retail) PRICES. There are indices of all sorts of things that are bought and sold of which perhaps the best known are share price indices like the Dow Jones Industrial Average or FTSE-100. The main challenges in compiling an index are what, exactly, to include in it and what weight to give the different things that are included. A particularly tricky question is how to change an index over time. Measures of inflation are based on the price of a basket of things bought by a typical consumer. As the quality and choice of products in the basket change over time, the inflation index ought to take this into account. How, exactly, is much debated.",economist,1,61.56,9.2,12.2,9.28,10,8.89,12.8,11.65
Indirect taxation,"Taxes that do not come straight out of a person's pay packet or ASSETS, or out of company PROFIT. For example, a CONSUMPTION tax, such as VALUE-ADDED tax (see EXPENDITURE TAX). Contrast with DIRECT TAXATION, such as INCOME TAX. Indirect taxation has become increasingly popular with politicians because it may be less noticeable to people paying it than income tax and is harder to avoid paying.",economist,1,54.73,9.7,12.2,10.38,10.4,9,10.75,11.45
Inelastic,"When the SUPPLY or DEMAND for something is insensitive to changes in another variable, such as PRICE. (See ELASTICITY.)",economist,1,52.19,10.7,0,12.01,13.1,9.57,12.5,11.81
Inequality,"Does economic GROWTH create more or less equality? Do unequal societies grow more or less slowly than equal ones? Economists have debated these questions for as long as anyone can remember. One problem is to agree which sort of inequality matters: equality of outcome (that is, INCOME) or of opportunity? Another is how then to measure it. Equality of opportunity, which, in theory, should make a difference to growth, because it is about giving people the chance to make the most of their HUMAN CAPITAL, is probably beyond the ability of statisticians to analyse rigorously. The most often used measure of income inequality is the GINI COEFFICIENT.",economist,1,47.49,10.4,13.3,10.72,10.1,8.08,9,11.35
Inferior goods,"Products that are less in demand as consumers get richer. For NORMAL GOODS, DEMAND increases as consumers have more to spend.",economist,1,77.74,5,0,9.43,7.4,8.67,4.75,6.1
Inflation target,"The goal of monetary policy in many countries is to ensure that inflation is neither too high nor too low. It became fashionable during the 1990s to set a country's central bank an explicit rate of inflation to target. By 1998, some 54 central banks had an inflation target, compared with just eight at the end of 1990, the year in which New Zealand's Reserve Bank became the first to be set a target. In most industrialised countries, the target, or, typically, the mid-point of a target range, for consumer-price inflation is between 1% and 2.5%. The reason it is not zero is that official price indices overstate inflation, and that the countries would prefer a little inflation to any deflation.",economist,1,55.37,11.5,13,9.75,13.2,9.01,12.2,12.66
Information,"The oil that keeps the economy working smoothly. Economic EFFICIENCY is likely to be greatest when information is comprehensive, accurate and cheaply available. Many of the problems facing economies arise from people making decisions without all the information they need. One reason for the failure of the COMMAND ECONOMY is that GOVERNMENT planners were not good at gathering and processing information. Adam SMITH's metaphor of the INVISIBLE HAND is all about how, in many cases, free markets are much more efficient at processing information on the needs of all the participants in an economy than is the visible, and often dead, hand of state planners. ASYMMETRIC INFORMATION, when one party to a deal knows more than the other party, can be a serious source of inefficiency and MARKET FAILURE. Uncertainty can also impose large economic costs. The internet, by greatly increasing the availability and lowering the price of information, is helping to boost economic efficiency. But there are inefficiencies the internet will not be able to solve. Uncertainty will remain a huge source of economic inefficiency. Alas, potentially the most useful information, about what will happen in the future, is never available until it is too late.",economist,1,44.85,11.5,14,12.47,12.5,8.53,14,11.83
Insider trading,"A practice that was made illegal in the United States in 1934 and in the UK in 1980, and is now banned (for SHARES, at least) in most countries. Insider trading involves using INFORMATION that is not in the public domain but that will move the PRICE of a share, BOND or currency when it is made public. An insider trade takes place when someone with privileged, confidential access to that information trades to take advantage of the fact that prices will move when the news gets out. This is frowned on because investors may lose confidence in FINANCIAL MARKETS if they see insiders taking advantage of advantageous ASYMMETRIC INFORMATION to enrich themselves at the expense of outsiders. But some economists reckon that insider trading leads to more efficient markets: by transmitting the inside information to the market, it makes the price of, say, a company's shares more accurate. This may be true, but most financial regulators are willing to sacrifice a degree of accuracy in pricing to ensure that outsiders (the great majority of investors) feel they are being treated fairly.",economist,1,49.18,13.9,15.5,11.5,17.1,9.74,15.25,16.74
Institutional economics,See EVOLUTIONARY ECONOMICS.,economist,1,-24.64,17.4,0,20.83,19.3,14.31,2.5,27.87
Institutional investors,"The big hitters of the FINANCIAL MARKETS: pension funds, fund-management companies, INSURANCE companies, investment BANKS, HEDGE FUNDS, charitable endowment trusts. In the United States, around half of publicly traded SHARES are owned by institutions and half by individual investors. In the UK, institutions own over two-thirds of listed shares. This gives them considerable clout, including the ability to move the PRICES in financial markets and to call company bosses to account. But because institutions mostly invest other people's MONEY, they are themselves prone to AGENCY COSTS, sometimes acting against the best long-term interests of the people who trust them with their     SAVINGS.",economist,1,42.31,12.4,14,15.08,15.9,10.84,13.6,13.26
Intangible assets,"Valuable things, even though you cannot drop them on your foot - an idea, say, especially one protected by a PATENT; an effective corporate culture; HUMAN CAPITAL; a popular brand. Contrast with TANGIBLE ASSETS.",economist,1,46.27,10.9,0,12.12,12.2,10.68,12,13.87
Intellectual capital,The part of a country's or a firm's CAPITAL or an individual's HUMAN CAPITAL that consists of ideas rather than something more physical. It can often be protected through PATENTS or other intellectual property laws.,economist,1,45.25,11.3,0,11.6,11.7,9.92,12.25,12.71
Interest rate,"INTEREST is usually expressed at an annual rate: the amount of interest that would be paid during a year divided by the amount of money loaned. Developed economies offer many different interest rates, reflecting the length of the loan and the riskiness and wealth of the borrower. People often use the term 'interest rate' when they mean the short-term interest rate charged to BANKS. For instance, when a CENTRAL BANK raises or cuts interest rates, it changes only the PRICE it charges to banks borrowing money overnight, expressed as an annual rate. BOND YIELDS are a better measure of the interest rate on loans that do not have to be repaid for many years. Unlike short-term interest rates, bond yields are determined not by central bankers but by the SUPPLY and DEMAND for MONEY, which is heavily influenced by the expected rate of INFLATION.",economist,1,55.58,11.5,14.3,10.68,13.6,8.88,13.2,13.77
International aid,"A helping hand for poor countries from rich countries. This, at least, is the intention. In practice, in many cases aid has done little good for its intended recipients (improved health care is a notable exception) and has sometimes made matters worse. Poor countries that receive lots of aid grow no faster, on average, than those that receive very little. By contrast, perhaps the most successful aid programme ever - the MARSHALL PLAN for rebuilding Europe after the second world war - involved rich countries giving to other hitherto rich countries.",economist,1,61.87,9.1,10.4,11.6,12,8.42,10.7,10.72
International Labour Organisation,See ILO.,economist,1,120.21,-3.1,0,-13.21,-4,11.63,0,0.8
International Monetary Fund,See IMF.,economist,1,120.21,-3.1,0,-13.21,-4,11.63,0,0.8
International trade,See FREE TRADE.,economist,1,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
Invisible trade,"EXPORTS and IMPORTS of things you cannot touch or see: SERVICES, such as banking or advertising and other intangibles, such as copyrights. Invisible trade accounts for a growing slice of the value of world trade.",economist,1,62.17,8.9,0,11.08,11.3,9.47,10.25,10.43
Inward investment,Investment from abroad; the opposite of OUTWARD INVESTMENT (see FOREIGN DIRECT INVESTMENT).,economist,1,33.92,11.5,0,18.55,16,9.5,9,11.47
J-curve,"The shape of the trend of a country’s trade balance following a DEVALUATION. A lower EXCHANGE RATE initially means cheaper EXPORTS and more expensive IMPORTS, making the current account worse (a bigger DEFICIT or smaller surplus). After a while, though, the volume of exports will start to rise because of their lower PRICE to foreign buyers, and domestic consumers will buy fewer of the costlier imports. Eventually, 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.",economist,1,53,10.4,11.2,11.66,11.8,9.05,11.1,10.8
Job search,"The time taken 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.",economist,1,71.65,7.4,0,10.03,9.8,6.37,10.25,10.24
Joint supply,"Some products or production processes have more than one use. For instance, cows can both provide milk and be eaten. If farmers increase the number of cows they own in response to an increase in DEMAND for milk, they are also likely to increase, a little later, the supply of meat, causing beef prices to fall.",economist,1,69.41,8.2,7.8,8.3,9.3,8.51,9,8.91
"Keynes, John Maynard","A much quoted, great British economist, not famous for holding the same opinion for long. Born in 1883, he studied at Cambridge but came to reject much of the CLASSICAL ECONOMICS and NEO-CLASSICAL ECONOMICS associated with that university. Keynes helped set up the BRETTON WOODS framework, but he is best known for his General Theory of Employment, Interest and Money, published in 1936 in the depths of the Great Depression. This invented modern MACROECONOMICS. It argued that economies could sometimes be stable (in EQUILIBRIUM) even when they did not have FULL EMPLOYMENT, but that a GOVERNMENT could remedy this under-employment problem by increasing PUBLIC SPENDING and/or reducing TAXATION, thereby increasing the level of aggregate DEMAND in the economy. Many politicians picked up on these ideas. As President Richard Nixon observed in 1971, 'We are all Keynesians now.' However, it is much debated whether Keynes would have supported the way many of them put his thoughts into practice.",economist,1,51.58,10.9,14.2,12.76,13.5,10.44,13.8,13.45
Keynesian,"A branch of ECONOMICS, based, often loosely, on the ideas of KEYNES, characterised by a belief in active GOVERNMENT and suspicion of market outcomes. It was dominant in the 30 years following the second world war, and especially during the 1960s, when FISCAL POLICY became bigger-spending and looser in most developed countries as policymakers tried to kill off the BUSINESS CYCLE. During the 1970s, widely blamed for the rise in INFLATION, Keynesian policies gradually gave way to monetarism and microeconomic policies that owed much to the NEO-CLASSICAL ECONOMICS that Keynes had at times opposed. Even so, the idea that PUBLIC SPENDING and TAXATION have a crucial role to play in managing DEMAND, in order to move towards FULL EMPLOYMENT, remained at the heart of MACROECONOMIC POLICY in most countries, even after the monetarist and supply-side revolution of the 1980s and 1990s. Recently, a school of new, more pro-market Keynesian economists has emerged, believing that most markets work, but sometimes only slowly.",economist,1,38.79,15.8,17.4,13.41,19.9,10.73,17,18.59
Kleptocracy,"Corrupt, thieving GOVERNMENT, in which the politicians and bureaucrats in charge use the powers of the state to feather their own nests. Russia in the years immediately after the fall of COMMUNISM was a clear-cut example, with Mafia-friendly GOVERNMENT members allocating themselves valuable SHARES during the PRIVATISATION of state-owned companies, accepting bribes from foreign businesses, not collecting taxes from “helpful” companies and siphoning off INTERNATIONAL AID into their personal OFFSHORE    BANK accounts.",economist,1,9.56,20.9,0,18.46,25.7,12,27,21.62
Kondratieff wave,"A 50 year-long BUSINESS CYCLE, named after Nikolai Kondratieff, a Russian economist. He claimed to have identified cycles of economic activity lasting half a century or more in his 1925 book, The Long Waves in Economic Life. Because this implied that CAPITALISM was, ultimately, a stable system, in contrast to the Marxist view that it was self-destructively unstable, he ended up in one of Stalin's prisons, where he died. Alas, there is little hard evidence to support Kondratieff's conclusion.",economist,1,42.92,12.2,13.8,12.18,13.4,11.01,13.375,14.5
Labour intensive,A production process that involves comparatively large amounts of LABOUR; the opposite of CAPITAL INTENSIVE.,economist,1,30.87,12.7,0,17.68,15.6,12.8,12.5,16.67
Labour market flexibility,"A flexible LABOUR market is one in which it is easy and inexpensive for FIRMS to vary the amount of labour they use, including by changing the hours worked by each employee and by changing the number of employees. This often means minimal REGULATION of the terms of employment (no MINIMUM WAGE, say) and weak (or no) trade UNIONS. Such flexibility is characterised by its opponents as giving firms all the power, allowing them to fire employees at a moment's notice and leaving workers feeling insecure.",economist,1,50.8,13.3,15.9,10.75,15.8,9.83,19.33333333,17.99
Labour theory of value,"The notion that the value of any good or service depends on how much LABOUR it uses up. First suggested by ADAM SMITH, it took a central place in the philosophy of KARL MARX. Some neo-classical economists disagreed with this theory, arguing that the PRICE of something was independent of how much labour went into producing it and was instead determined solely by SUPPLY and DEMAND.",economist,1,57.61,10.7,13,10.04,12.2,10.23,14,14.25
Laffer curve,"Legend has it that in November 1974 Arthur Laffer, a young economist, drew a curve on a napkin in a Washington bar, linking AVERAGE tax rates to total tax revenue. Initially, higher tax rates would increase revenue, but at some point further increases in tax rates would cause revenue to fall, for instance by discouraging people from working. The curve became an icon of supply-side ECONOMICS. Some economists said that it proved that most governments could raise more revenue by cutting tax rates, an argument that was often cited in the 1980s by the tax-cutting governments of Ronald Reagan and Margaret Thatcher. Other economists reckoned that most countries were still at a point on the curve at which raising tax rates would increase revenue. The lack of empirical evidence meant that nobody could really be sure where the United States and other countries were on the Laffer curve. However, after the Reagan administration cut tax rates revenue fell at first. American tax rates were already low compared with some countries, especially in continental Europe, and it remains possible that these countries are at a point on the Laffer curve where cutting tax rates would pay.",economist,1,55.17,11.6,13,11.78,14.6,8.33,16,12.84
Lagging indicators,Old news. Some economic statistics move weeks or months after changes in the BUSINESS CYCLE or INFLATION. They may not be a reliable guide to the current state of an economy or its future path. Contrast with LEADING INDICATORS.,economist,1,66.74,7.2,11.2,9.32,7.9,9.95,7.5,11.35
Laissez-faire,"Let-it-be ECONOMICS: the belief that an economy functions best when there is no interference by GOVERNMENT. It can be traced to the 18th-century French physiocrats, who believed in government according to the natural order and opposed MERCANTILISM. ADAM SMITH and others turned it into a central tenet of CLASSICAL ECONOMICS, as it allowed the INVISIBLE HAND to operate efficiently. (But even they saw a need for some limited government role in the economy.) In the 19th century, it inspired the British political movement that secured the repeal of the Corn Laws and promoted FREE TRADE, and gave birth to The Economist in 1843. In the 20th century, laissez-faire was often seen as synonymous with supporting MONOPOLY and allowing the BUSINESS CYCLE to boom and bust, and it came off second best against KEYNESIAN policies of interventionist government. However, mounting evidence of the inefficiency of state intervention inspired the free market policies of Ronald Reagan and Margaret Thatcher in the 1980s, both of whom stressed the importance of laissez-faire.",economist,1,43.06,14.2,17.1,13.23,17.8,10.76,17.5,17.15
Land tax,"Henry George, a 19th-century American eco­nomist, believed that taxes should be levied only on the value of LAND, not on LABOUR or CAPITAL. This 'single tax', he asserted in his book, PROGRESS AND POVERTY, would end UNEMPLOYMENT, POVERTY, INFLATION and INEQUALITY. Many countries levy some tax on land or property values, although George's single tax has never been fully implemented. This is mainly because of fears that it would drive down land PRICES too much or discourage efforts to improve the quality (that is, the economic value) of land. George addressed this concern by arguing that the tax should be levied only against the value of 'unimproved' land. Certainly, a land tax has obvious advantages: it is simple and cheap to levy; evasion is all but impossible; and it penalises owners who do not put their land to work.",economist,1,56.39,11.2,13,10.74,13.6,9.44,12.6,13.31
Law and economics,"Laws can be an important source of economic ­EFFICIENCY - or inefficiency. Early economists such as ADAM SMITH often wrote about the economic impact of legal matters. But ECONOMICS subsequently focused more narrowly on things monetary and commercial. It was only in the 1940s and 1950s, at the University of Chicago Law School, that the discipline of law and economics was born. It is now a substantial branch of economics and has had an impact beyond the ivory towers.",economist,1,55.64,9.4,13.3,10.9,10,9.67,11.1,12.39
LBO,See LEVERAGED BUY-OUT.,economist,1,59.97,5.6,0,9.23,11.5,9.05,0.5,1.2
Leading indicators,"Economic crystal balls. Also known as cyclical ­indicators, these are groups of statistics that point to the future direction of the economy and the BUSINESS CYCLE. Certain economic variables, fairly consistently, precede changes in GDP and certain others precede changes in INFLATION. In some countries, statisticians combine the various different leading indicators into an overall leading index of economic GROWTH or inflation. However, there is not necessarily any causal relationship between the leading indicators and what they are predicting, which is why, like other crystal balls, they are fallible. Contrast with LAGGING INDICATORS.",economist,1,38.82,11.7,13.8,15.83,14.2,10.01,11.25,11.36
Leveraged buy-out,"Buying a company using borrowed MONEY to pay most of the purchase PRICE. The DEBT is secured against the ASSETS of the company being acquired. The INTEREST will be paid out of the company’s future cashflow. Leveraged buy-outs (LBOs) became popular in the United States during the 1980s, as public DEBT markets grew rapidly and opened up to borrowers that would not previously have been able to raise loans worth millions of dollars to pursue what was often an unwilling target. Although some LBOs ended up with the borrower going bust, in most cases the need to meet demanding interest bills drove the new managers to run the firm more efficiently than their predecessors. For this reason, some economists see LBOs as a way of tackling AGENCY COSTS associated with corporate governance.",economist,1,57.61,10.7,12.7,10.97,12.9,9.99,12.2,12.74
Liberal economics,LAISSEZ-FAIRE    CAPITALISM by another name.,economist,1,-52.05,21.8,0,18.88,15.9,13.36,4.5,10
Liberalisation,A policy of promoting LIBERAL ECONOMICS by limiting the role of GOVERNMENT to the things it can do to help the market economy work efficiently. This can include PRIVATISATION and DEREGULATION.,economist,1,38.82,11.7,0,12.35,11,10.52,12.75,17.81
Life,"Human life is priceless. But this has not stopped economists trying to put a financial value on it. One reason is to help FIRMS and policymakers to make better decisions on how much to spend on costly safety measures designed to reduce the loss of life. Another is to help insurers and courts judge how much compensation to pay in the event of, say, a fatal accident.",economist,1,62.88,8.7,11.2,7.94,8.1,8.48,10.375,10.3
Life-cycle hypothesis,"An attempt to explain the way that people split their INCOME between spending and saving, and the way that they borrow. Over their lifetime, a typical person's income varies by far more than how much they spend. On AVERAGE, young people have low incomes but big spending commitments: on investing in their HUMAN CAPITAL through education and training, building a family, buying a home, and so on. So they do not save much and often borrow heavily. As they get older their income generally rises, they pay off their mortgage, the children leave home and they prepare for retirement, so they sharply increase their saving and INVESTMENT. In retirement, their income is largely or entirely from state benefits and the saving and investment they did when working; they spend most or all of their income, and, by selling off ASSETS, often spend more than their income.",economist,1,55.27,11.6,12.2,10.68,13.9,8.19,12,12.73
Liquidity preference,"The proportion of their ASSETS that FIRMS and in­dividuals choose to hold in varying degrees of ­LIQUIDITY. The more cash they have, the greater is their desire for liquidity.",economist,1,56.76,8.9,0,10.95,9.7,8.71,8.25,9.94
Lock-in,See PATH DEPENDENCE.,economist,1,59.97,5.6,0,7.32,8.3,9.05,1.5,14.53
Lump of labour fallacy,"One of the best-known fallacies in ECONOMICS is the notion that there is a fixed amount of work to be done - a lump of LABOUR - which can be shared out in different ways to create fewer or more jobs. For instance, suppose that everybody worked 10% fewer hours. FIRMS would need to hire more workers. Hey presto, UNEMPLOYMENT would shrink.",economist,1,73.17,6.8,9.5,7.94,7.8,9.38,8,8
Lump-sum tax,"A tax that is the same amount for everybody, regardless of INCOME or wealth. Some economists argue that this is the most efficient form of TAXATION, as it does not distort incentives and thus it has no DEADWEIGHT COST. This is because each person knows that whatever they do they will have to pay the same amount. It is also cheap to administer, as there is no complex process of measuring each person's INCOME and ASSETS in order to calculate their tax bill. However, because rich and poor people pay the same, the tax may be perceived as unfair - as Margaret Thatcher found out when she introduced a lump-sum 'poll tax', a decision that was later to play a large part in her ousting as British prime minister.",economist,1,62.41,10.9,12.7,8.71,12.8,8.61,12.2,13.99
Luxuries,"Goods and SERVICES that have a high ELASTICITY of DEMAND. When the PRICE of, say, a Caribbean holiday rises, the number of vacations demanded falls sharply. Likewise, demand for Caribbean holidays rises significantly as AVERAGE    INCOME increases, certainly by more than demand for many NORMAL GOODS. Contrast this with necessities, such as milk or bread, which people usually demand in quite similar quantities whatever their income and whatever the price.",economist,1,36.79,12.5,14.9,13.51,13.3,9.24,13,14.43
Macroeconomic policy,"Top-down policy by GOVERNMENT and CENTRAL BANKS, usually intended to maximise GROWTH while keeping down INFLATION and UNEMPLOYMENT. The main instruments of macroeconomic policy are changes in the rate of INTEREST and MONEY SUPPLY, known as MONETARY POLICY, and changes in TAXATION and PUBLIC SPENDING, known as FISCAL POLICY. The fact that unemployment and inflation often rise sharply, and that growth often slows or GDP falls, may be evidence of poorly executed macro­economic policy. However, BUSINESS CYCLES may simply be an unavoidable fact of economic life that macroeconomic policy, however well conducted, can never be sure of conquering.",economist,1,29.69,15.2,18.2,14.68,17.2,10.33,19.25,16.33
Marginal,"The difference made by one extra unit of something. Marginal revenue is the extra revenue earned by selling one more unit of something. The marginal PRICE is how much extra a consumer must pay to buy one extra unit. Marginal UTILITY is how much extra utility a person gets from consuming (or doing) an extra unit of something. The marginal product of LABOUR is how much extra OUTPUT a firm would get by employing an extra worker, or by getting an existing worker to put in an extra hour on the job. The marginal PROPENSITY to consume (or to save) measures by how much a household's CONSUMPTION (SAVINGS) would increase if its INCOME rose by, say, $1. The marginal tax rate measures how much extra tax you would have to pay if you earned an extra dollar.",economist,1,68.5,8.6,11.2,8.07,9.6,7.26,10.33333333,9.88
Market capitalisation,The market value of a company’s SHARES: the quoted share PRICE multiplied by the total number of shares that the company has issued.,economist,1,56.59,11.1,0,10.28,12.6,8.9,14.5,12.68
Market failure,When a market left to itself does not allocate resources efficiently. Interventionist politicians usually allege market failure to justify their interventions. Economists have identified four main sorts or causes of market failure.,economist,1,35.23,11,12.5,17.26,13.3,11.57,7,14.28
Market forces,"Shorthand for the pressures from buyers and sellers in a market, rather than those coming from a GOVERNMENT planner or from REGULATION.",economist,1,57.61,10.7,0,12.24,14,9.03,13,10.62
Market power,"When one buyer or seller in a market has the ability to exert significant influence over the quantity of goods and SERVICES traded or the PRICE at which they are sold. Market power does not exist when there is PERFECT COMPETITION, but it does when there is a MONOPOLY, MONOPSONY or OLIGOPOLY.",economist,1,53.55,12.3,0,9.46,13.4,9.48,16.5,15.78
Marshall Plan,"Probably the most successful programme of INTERNATIONAL AID and nation building in history. It was named after General George Marshall, an American secretary of state, who at the end of the second world war proposed giving aid to Western Europe to rebuild its war-torn economies. North America gave around 1% of its GDP in total between 1948 and 1952; most of it came from the United States and the rest from Canada. The Americans left it to the Europeans to work out the details on allocating aid, which may be why, according to most economic analyses, it achieved more success than latter day aid programmes in which most of the decisions on how the MONEY is spent are made by the donors. The main institution through which aid was administered was the Organisation for European Economic Co-operation (OEEC), which in 1961 became the OECD. Nowadays, whenever there is a proposal for the international community to rebuild an economy damaged by war, such as Iraq's in 2003, you are sure to hear the phrase 'new Marshall Plan'.",economist,1,50.2,13.5,14.8,10.57,16,9.67,15.75,15.81
"Marshall, Alfred","A British economist (1842-1924), who developed some of the most important concepts in MICRO­ECONOMICS. In his best-known work, Principles of Economics, he retained the emphasis on the importance of costs, which was standard in CLASSICAL ECONOMICS. But he added to it, helping to create NEO-CLASSICAL ECONOMICS, by explaining that the OUTPUT and PRICE of a product are determined by both SUPPLY and DEMAND, and that MARGINAL costs and benefits are crucial. He was the first economist to explain that demand falls as price increases, and that therefore the DEMAND CURVE slopes downwards from left to right. He was also first with the concept of PRICE ELASTICITY of demand and CONSUMER SURPLUS.",economist,1,48.94,11.9,14.3,12.13,14.3,10,13.6,13.56
"Marx, Karl","Much followed, and much misunderstood, German economist (1818–83). His two best-known works were the Communist Manifesto, written in 1848 with Friedrich Engels, and Das Kapital, in four volumes published between 1867 and 1910. Most of his economic assumptions were drawn from orthodox CLASSICAL ECONOMICS, but he used them to reach highly unorthodox conclusions. Although claimed and blamed as the inspiration of some of the most virulently anti-market governments the world has ever seen, he was not wholly against CAPITALISM. Indeed, he praised it for rescuing millions of people from “the idiocy of rural life”. Even so, he thought it was doomed. A shortage of DEMAND would concentrate economic power and wealth in ever fewer hands, producing an ever-larger and more miserable proletariat. This would eventually rise up, creating a “dictatorship of the proletariat” and leading eventually to a “withering away” of the state. Marx thought that this version of history was inevitable. So far, history has proved him wrong, largely because capitalism has delivered a much better deal to the masses than he believed it would.",economist,1,53.61,10.2,13.8,12.76,12.8,10.25,11.5,13.18
Mean reversion,"The tendency for subsequent observations of a random variable to be closer to its mean than the current observation. For example, if the current number is 7, the average is 5, and there is mean reversion, then the next observation is likelier to be 6 than 8.",economist,1,47.62,12.5,0,8.42,11.6,10.18,16.25,16.21
Medium term,"Somewhere between SHORT-TERMISM, which is bad, and the LONG RUN, lies the hallowed ground of the medium term – far enough away to discourage myopic behaviour by decision makers but close enough to be meaningful. But not many governments say exactly how long they think the medium term is.",economist,1,63.53,10.5,0,10.74,13.9,8.72,15.75,14.7
Menu costs,"How much it costs to change PRICES. Just as a restaurant has to print a new menu when it changes the price of its food, so many other FIRMS face a substantial outlay each time they cut or raise what they charge. Such menu costs mean that firms may be reluctant to change their prices every time there is a shift in the balance of SUPPLY and DEMAND, so there will be STICKY PRICES and the market for their OUTPUT will be in DISEQUILIBRIUM. The Internet may sharply reduce menu costs as it allows prices to be changed at the click of a mouse, which may improve EFFICIENCY by keeping markets more often in EQUILIBRIUM.",economist,1,67.62,11,10.1,8.25,13.5,8.36,13.5,13.61
Mergers and acquisitions,"When two businesses join together, either by merging or by one company taking over the other. There are three sorts of mergers between FIRMS: HORIZONTAL INTEGRATION, in which two similar firms tie the knot; VERTICAL INTEGRATION, in which two firms at different stages in the SUPPLY chain get together; and DIVERSIFICATION, when two companies with nothing in common jump into bed. These can be a voluntary marriage of equals; a voluntary takeover of one firm by another; or a hostile takeover, in which the management of the target firm resists the advances of the buyer but is eventually forced to accept a deal by its current owners. For reasons that are not at all clear, merger activity generally happens in waves. One possible explanation is that when SHARE    PRICES are low, many firms have a MARKET CAPITALISATION that is low relative to the value of their ASSETS. This makes them attractive to buyers (see TOBIN). In theory, the different sorts of mergers have different sorts of potential benefits. However, the damning lesson of merger waves stretching back over the past 50 years is that, with one big ex ception - the spate of LEVERAGED BUY-OUTS in the United States during the 1980s - they have often failed to deliver benefits that justify the costs.",economist,1,44.58,13.6,14.7,10.91,15.1,9.42,22.33333333,14.56
Minimum wage,"A minimum rate of pay that FIRMS are legally obliged to pay their workers. Most industrial countries have a minimum wage, although certain sorts of workers are often exempted, such as young people or part-timers. Most economists reckon that a minimum wage, if it is doing what it is meant to do, will lead to higher UNEMPLOYMENT than there would be without it. The main justification offered by politicians for having a minimum wage is that the wage that would be decided by buyers and sellers in a free market would be so low that it would be immoral for people to work for it. So the minimum wage should be above the market-clearing wage, in which case fewer workers would be demanded at that wage than would be hired at the market wage. How many fewer will depend on how far the minimum wage is above the market wage.",economist,1,63.02,10.7,11.9,8.48,12.1,7.93,15,12.13
Misery index,"The sum of a country’s INFLATION and UNEMPLOYMENT rates. The higher the score, the greater is the economic misery.",economist,1,70.29,5.8,0,9.31,7.1,10.76,5.25,10.12
Mixed economy,"A market economy in which both private-sector FIRMS and firms owned by GOVERNMENT take part in economic activity. The proportions of public and private enterprise in the mix vary a great deal among countries. Since the 1980s, the public role in most mixed economies declined as NATIONALISATION gave way to PRIVATISATION.",economist,1,54.22,9.9,13,12.58,12,10.05,11.5,12.29
Mobility,"The easier it is for the FACTORS OF PRODUCTION to move to where they are most valuable, the more efficient the allocation of the world's scarce resources is likely to be and the faster GDP will grow. Apart from continental drift, LAND is immobile. CAPITAL has long been extremely mobile within countries, and, with the rise of GLOBALISATION, it is now able to move easily around the world. ENTERPRISE is mobile, although to what extent depends on the particular ENTREPRENEUR. Some members of the LABOUR market zoom around the world to work; others will not move to the next town.",economist,1,59.64,9.9,12.3,9.81,11.2,9.05,12.6,12.8
Modelling,"When economists make a number of simplified assumptions about how the economy, or some part of it, behaves, and then see what this implies in various different scenarios. MILTON FRIEDMAN argued that economic models should not be judged on the basis of the validity of their assumptions, but on the accuracy of their predictions. An expert billiards player, he said, may not know the laws of physics, but acts as if he knows such laws. So his behaviour could be predicted accurately with a model that assumes he knows the laws of physics. Likewise, the behaviour of people making economic decisions may be accurately predicted by a model that assumes their goal is, say, PROFIT MAXIMISATION, even if they are not actually conscious of this being their goal. The more complex the thing being modelled, the harder it is to get right. Economic FORECASTING has a poor overall track record. The more micro­economic the thing being modelled, the more likely it is that a model can be designed that will deliver accurate predictions.",economist,1,58.01,10.5,13.8,10.62,12.6,8.63,13.4,13.03
Modern portfolio theory,One of the most important and influential economic theories about finance and INVESTMENT. Modern portfolio theory is based upon the simple idea that DIVERSIFICATION can produce the same TOTAL RETURNS for less RISK. Combining many financial ASSETS in a portfolio is less risky than putting all your investment eggs in one basket. The theory has four basic premises.,economist,1,48.3,10.1,13.4,12.4,10.7,10.07,10.5,12.01
Monetary neutrality,"Changes in the MONEY SUPPLY have no effect on real economic variables such as OUTPUT, real INTEREST rates and UNEMPLOYMENT. If the CENTRAL BANK doubles the money supply, the PRICE level will double too. Twice as many dollars means half as much bang for the buck. This theory, a core belief of CLASSICAL ECONOMICS, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables do not necessarily affect the real economy. Today few economists think that pure monetary neutrality exists in the real world, at least in the short run. Inflation does affect the real economy because, for instance, there may be STICKY PRICES or MONEY ILLUSION.",economist,1,52.29,10.7,13.3,10.73,11.3,9.12,11.16666667,13.01
Money illusion,"When people are misled by INFLATION into thinking that they are getting richer, when in fact the value of MONEY is declining. Whether, and how much, people are fooled by inflation is much debated by economists. Money illusion, a phrase coined by KEYNES, is used by some economists to argue that a small amount of inflation may not be a bad thing  and could even be beneficial, helping to “grease the wheels” of the economy. Because of money illusion, workers like to see their nominal WAGES rise, giving them the illusion that their circumstances are improving, even though in real (inflation-adjusted) terms they may be no better off. During periods of high inflation double-digit pay rises (as well as, say, big increases in the value of their homes) can make people feel richer even if they are not really better off. When inflation is low, GROWTH in real incomes may hardly register.",economist,1,54.26,12,14.3,10.16,14,8.32,16.25,13.8
Money markets,"Any market where MONEY and other liquid ASSETS (such as TREASURY BILLS) can be lent and borrowed for between a few hours and a few months. Contrast with CAPITAL MARKETS, where longer-term CAPITAL changes hands.",economist,1,70.63,7.8,0,10.61,11,10.37,8.75,7
Money supply,"The amount of MONEY available in an economy. In the heyday of MONETARISM in the early 1980s, economists pounced upon the monthly (in some countries, even weekly) MONEY-SUPPLY numbers for clues about future INFLATION. CENTRAL BANKS aim to manage DEMAND by controlling the SUPPLY of money through OPEN-MARKET OPERATIONS, RESERVE REQUIREMENTS and changing the rate of INTEREST (to be exact, the DISCOUNT RATE).",economist,1,41.7,12.7,13.6,13.29,14.9,11.19,13.83333333,13.48
Moral hazard,"One of two main sorts of MARKET FAILURE often associated with the provision of INSURANCE. The other is ADVERSE SELECTION. Moral hazard means that people with insurance may take greater risks than they would do without it because they know they are protected, so the insurer may get more claims than it bargained for. (See also DEPOSIT INSURANCE, LENDER OF LAST RESORT, IMF and WORLD BANK.)",economist,1,57.61,10.7,12.5,10.39,12.7,9.27,13.66666667,12.44
Most-favoured nation,"Equal treatment, at least, in international trade. If country A grants country B the status of most-favoured nation, it means that B's EXPORTS will face TARIFF that are no higher (and also no lower) than those applied to any other country that A calls a most-favoured nation. This will be the most favourable tariff treatment available to IMPORTS.",economist,1,68.81,8.5,6.4,10.62,11.8,9.22,9,8.41
NAFTA,"Short for North American Free-Trade Agreement. In 1993, the United States, Mexico and Canada agreed to lower the barriers to trade among the three economies. The formation of this regional TRADE AREA was opposed by many politicians in all three countries. In the United States and Canada, in particular, there were fears that NAFTA would result in domestic job losses to cheaper locations in Mexico. In the early years of the agreement, however, most studies found that the economic gains far outweighed any costs.",economist,1,62.88,8.7,11.6,11.37,11.1,9.73,10.6,10.53
Nation building,"Creating a country that works out of one that does not - because the old order has collapsed (as in the former Soviet Union), or been destroyed by war (Iraq), or never really functioned in the first place (Afghanistan). To transform a failed country can involve establishing order through the rule of law and creating legitimate government and other effective social institutions, as well as a credible currency and a functioning market economy. Nation building is rarely easy, and often fiendishly difficult, especially where there are deep ethnic, religious or political divisions in the population or the country has no history of ever functioning effectively. Outside expertise, such as from the world bank, and money (as in, most famouly, the Marshall Plan) can help, but they are no guarantee of success.",economist,1,38.49,16,17.1,12.6,19.5,9.86,23,18.85
National income,"Shorthand for everything that is produced, earned or spent in a country (see GDP and GNP).",economist,1,80.62,6,0,8.18,8.7,9.36,8,6.4
Negative income tax,"A way of building redistribution into the TAXATION system by taking MONEY from people with high incomes and paying it to people with low incomes. Because it takes place automatically through the tax system, it may attach less stigma to the receipt of financial help than some other forms of WELFARE assistance. However, it may also discourage recipients from working to increase their INCOME (see POVERTY TRAP), which is why some countries have introduced a form of negative income tax that is available only to the working poor. In the United States, this is known as the earned income tax credit.",economist,1,45.8,13.2,12.2,11.03,14.4,8.8,15,13.68
Neo-classical economics,"The school of ECONOMICS that developed the free-market ideas of CLASSICAL ECONOMICS into a full-scale model of how an economy works. The best-known neo-classical economist was ALFRED MARSHALL, the father of MARGINAL analysis. Neo-classical thinking, which mostly assumes that markets tend towards EQUILIBRIUM, was attacked by KEYNES and became unfashionable during the Keynesian-dominated decades after the second world war. But, thanks to economists such as MILTON FRIEDMAN, many neo-classical ideas have since become widely accepted and uncontroversial.",economist,1,26.51,14.4,14.9,17.58,17.5,10.95,13.875,14.99
Net present value,"A measure used to help decide whether or not to proceed with an INVESTMENT. Net means that both the costs and benefits of the investment are in cluded. To calculate net present value (NPV), first add together all the expected benefits from the investment, now and in the future. Then add together all the expected costs. Then work out what these future benefits and costs are worth now by adjusting future cashflow using an appropriate DISCOUNT RATE. Then subtract the costs from the benefits. If the NPV is negative, then the investment cannot be justified by the EXPECTED RETURNS. If the NPV is positive, it can, although it pays to make comparisons with the NPVs of alternative investment opportunities before going ahead.",economist,1,64.41,8.1,12.8,10.14,9.5,7.76,8.714285714,10.05
Network effect,"When the value of a good to a consumer changes because the number of people using it changes. For instance, owning a phone becomes more valuable as more people are plugged into the telephone network. Network effects are sometimes called network EXTERNALITY, although this implies, often wrongly, that the benefits from being part of a network are a sort of MARKET FAILURE. They give a huge COMPETITIVE ADVANTAGE to the firm that owns the network. This INCUMBENT ADVANTAGE arises because a new entrant must persuade people to join a network that starts with fewer members, and thus may be less valuable to them than the network they are currently in. This is why markets for products with network effects are often dominated by only a few firms or a single MONOPOLY. Some economists argue that many recent technological innovations, notably the Internet, have large positive network effects, which make possible much higher PRODUCTIVITY and growth than in the past.",economist,1,48.43,12.1,11.8,11.84,13.8,9.23,11.2,12.6
Neutrality,See FISCAL NEUTRALITY and MONETARY NEUTRALITY.,economist,1,-10.76,16.3,0,17.85,13.7,11.83,5,15.73
New economy,"In the last years of the 20th century, some economists argued that developments in information technology and GLOBALISATION had given birth to a new economy (first, in the United States), which had a higher rate of PRODUCTIVITY and GROWTH than the old economy it replaced. Some went further, adding that in the new economy INFLATION was dead, the BUSINESS CYCLE abolished and the traditional rules of ECONOMICS were redundant. These claims were highly controversial. Other economists pointed out that similar predictions had been made during earlier periods of rapid technological change, yet the nature of economics was not fundamentally altered.",economist,1,37.64,14.2,16.8,14.1,16.9,10.4,18.25,17.6
New growth theory,See GROWTH.,economist,1,120.21,-3.1,0,-4.51,3.1,11.63,0,0.8
New trade theory,"Although most economists support FREE TRADE, in the 1970s a growing number of them became increasingly puzzled by the large differences between the predictions of free trade theory and real-world trade flows. Their solution to this puzzle is known as new trade theory.",economist,1,49.65,11.7,0,12.65,14.1,9.11,14.75,14.18
NGO,"Short for non-government organisation. Although such groups have existed for generations (in the early 1800s, the British and Foreign Anti-Slavery Society played a powerful part in abolishing slavery laws), recent social and economic shifts have given these typically voluntary, non-profit, 'issue-driven' organisations new life. The collapse of COMMUNISM, the spread of democracy, technological change and economic integration (GLOBALISATION, in short) have each helped NGOs grow. Globalisation itself has exacerbated a host of worries about the environment, LABOUR rights, human rights, consumer rights, and so on. Democratisation and technological progress have revolutionised the way in which citizens can unite to express their disquiet.",economist,1,25.39,14.8,16.6,17.69,18.3,11.92,15.4,16
Nobel prize for economics,"The sixth annual prize established in memory of Alfred Nobel. Strictly speaking, this is not a fully fledged Nobel prize, as it was not mentioned in Nobel’s will, unlike the five prizes established earlier for peace, literature, medicine, chemistry and physics. Still, the title of Nobel laureate and the $1m award stumped up each year by Sweden’s CENTRAL BANK make it worth winning. Since 1969, when its first (joint) winners hailed from Norway and the Netherlands, it has been won mostly by American economists, many of them of the CHICAGO SCHOOL.",economist,1,65.25,9.8,11.7,11.2,13.7,10.15,13.625,12.2
Nominal value,"The value of anything expressed simply in the MONEY of the day. Since INFLATION means that money can lose its value over time, nominal figures can be misleading when used to compare values in different periods. It is better to compare their real value, by adjusting the nominal figures to remove the inflationary distortions.",economist,1,53.21,10.3,13,11.08,11.3,7.75,12,12.39
Non-price competition,"Trying to win business from rivals other than by charging a lower PRICE. Methods include ADVERTISING, slightly differentiating your product, improving its quality, or offering free gifts or discounts on subsequent purchases. Non-price competition is particularly common when there is an OLIGOPOLY, perhaps because it can give an impression of fierce rivalry while the FIRMS are actually colluding to keep prices high.",economist,1,33.54,13.7,15.5,15.26,15.9,12.05,15,17.31
Normal goods,"When average INCOME increases, the DEMAND for normal goods increases, too. The opposite of INFERIOR GOODS.",economist,1,37.98,10,0,11.9,9.4,9.95,5.5,13.2
Normative economics,"economics that tries to change the world, by suggesting policies for increasing economic WELFARE.  The opposite of POSITIVE ECONOMICS, which is content to try to describe the world as it is, rather than prescribe ways to make it better.",economist,1,40.35,17.3,0,11.85,21.9,10.43,13.25,21.75
NPV,See NET PRESENT VALUE.,economist,1,92.8,1.3,0,2.9,2.9,0.2,1,1.6
Null hypothesis,"A statement that is being put to the test. In ECONOMETRICS, economists often start with a null hypothesis that a particular variable equals a particular number, then crunch their data to see if they can prove or disprove it, according to the laws of STATISTICAL SIGNIFICANCE. The null hypothesis chosen is often the reverse of what the experimenter actually believes; it may be put forward to allow the data to contradict it.",economist,1,47.12,12.7,14.6,10.97,13.7,9.21,16,15.16
OECD,"The Organisation for Economic Co-operation and Development, a Paris-based club for industrialised countries and the best of the rest. It was formed in 1961, building on the Organisation for European Economic Co-operation (OEEC), which had been established under the MARSHALL PLAN. By 2003, its membership had risen to 30 countries, from an original 20. Together, OECD countries produce two-thirds of the world's goods and SERVICES. The OECD provides a policy talking shop for governments. It produces forests-worth of documents discussing public policy ideas, as well as detailed empirical analysis. It also publishes reports on the economic performance of individual countries, which usually contain lots of valuable information even if they are rarely very critical of the policies implemented by a member GOVERNMENT.",economist,1,36.89,12.4,14.6,14.5,14.2,10.97,10.42857143,13.85
Okun's law,"A description of what happens to UNEMPLOYMENT when the rate of GROWTH of GDP changes, based on empirical research by Arthur Okun (1928-80). It predicts that if GDP grows at around 3% a year, the jobless rate will be unchanged. If it grows faster, the unemployment rate will fall by half of what the growth rate exceeds 3% by; that is, if GDP grows by 5%, unemployment will fall by 1 percentage point. Likewise, a lesser, say 2%, increase in GDP would be associated with a half a percentage point increase in the jobless rate. This relationship is not carved in stone, as it merely reflects the American economy during the period studied by Okun. Even so, in most econo mies Okun's Law is a reasonable rule of thumb for estimating the likely impact on jobs of changes in OUTPUT.",economist,1,64.75,10,11.9,8.48,11.7,9.64,11.8,12.18
OPEC,"The Organisation of Petroleum Exporting Countries, a CARTEL set up in 1960 that wrought havoc in industrialised countries during the 1970s and early 1980s by forcing up oil prices (which quadrupled in a few weeks during 1973-74 alone), resulting in high INFLATION and slow GROWTH. A lot of productive CAPITAL equipment that had been viable at lower oil prices proved to be unprofitable to run at the higher prices and was shut down. Some economists reckon that MARKET FORCES would have driven up oil prices anyway and that OPEC merely capitalised on the opportunity. Since the early 1980s, OPEC's influence has waned. Many firms have switched to production methods that need less oil, or less energy altogether. Non-OPEC producers such as the UK have brought new oil fields on stream. And some individual members of the cartel have broken ranks by failing to restrict their oil production, resulting in lower oil prices.",economist,1,57.91,10.6,12.8,11.43,13.3,10.11,15.75,13.15
Open economy,"An economy that allows the unrestricted flow of people, CAPITAL, goods and SERVICES across its borders; the opposite of a CLOSED ECONOMY.",economist,1,40.69,13.1,0,12.24,14.4,9.75,16,14.25
Optimal currency area,"A geographical area within which it would pay to have a single currency. An optimal currency area can come in many sizes. Some may span several countries and others may be smaller than an individual country. The benefits of having one currency are lower foreign exchange and currency HEDGING costs and more transparent pricing (because every PRICE is expressed in the same currency). But unless the single currency is used within an optimal currency area, these benefits may be dwarfed by the costs. A single currency means a single MONETARY POLICY  and no opportunity for one part of the currency area to change its EXCHANGE RATE with the other parts. This can be a big problem if a country or region is likely to suffer from ASYMMETRIC SHOCKS that affect it differently from the rest of the single-currency area, because it will no longer be able to respond by loosening its national monetary policy or devaluing its currency. This may not be an insuperable problem if workers in the affected country are able and willing to move freely to other countries; if WAGES and prices are flexible and can adjust to the shock; or if FISCAL POLICY can shift resources to areas hurt by a shock from areas that are not hurt. For a currency area to be optimal, ideally asymmetric shocks should be rare, implying that the economies involved are on similar BUSINESS CYCLES and have similar structures. Moreover, the single monetary policy should affect all the constituent parts in the same way (an INTEREST    RATE cut should not, say, reduce UNEMPLOYMENT in one part and increase INFLATION in another). There should be no cultural, linguistic or legal barriers to LABOUR mobility across frontiers; there should be wage flexibility; and there should be some system for transferring resources to regions that are suffering. In practice, few of the parts of the world that have a single currency are optimal currency areas, probably including the EURO ZONE, although having a single currency often makes them become gradually more alike and thus more optimal.",economist,1,42.45,14.4,16,11.5,16.2,8.92,11.66666667,15.29
Optimum,"As good as it gets, given the constraints you are operating within. For the concept of optimum to mean anything, there must be both a goal, say, to maximise economic WELFARE, and a set of constraints, such as an available stock of scarce economic resources. Optimising is the process of doing the best you can in the circumstances.",economist,1,68.81,8.5,11.2,9.23,10.5,8.95,11.66666667,11.17
Output,The fruit of economic activity: whatever is produced by using the FACTORS OF PRODUCTION.,economist,1,31.89,12.3,0,12.35,10.8,12.23,11,17.03
Output gap,"How far an economy’s current OUTPUT is below what it would be at full CAPACITY. On average, INFLATION rises when output is above potential and falls when output is below potential. However, in the short run, the relationship between inflation and the output gap can deviate from the longer-term pattern and can thus be misleading. Alas for policymakers – because nobody really knows what an economy’s potential output is, the size and even the direction of the output gap can easily be misdiagnosed, which can contribute to serious errors in MACROECONOMIC POLICY.",economist,1,39.67,13.4,16.5,12.13,14.2,9.24,17,15.72
Outward investment,Investing abroad; the opposite of INWARD    INVESTMENT.,economist,1,-3.32,15.5,0,16.54,13,15.26,5.5,19.94
Over the counter,"In the case of drugs, those that can be purchased without a prescription from a doctor. In the case of financial SECURITIES, those that are bought or sold through a private dealer or BANK rather than on a financial exchange.",economist,1,68.1,8.7,0,8.99,10.4,7.39,12,11
Overheating,When an economy is growing too fast and its productive CAPACITY cannot keep up with DEMAND. It often boils over into INFLATION.,economist,1,60.31,7.6,0,8.97,6.8,9.21,6.5,11.67
Pareto efficiency,"A situation in which nobody can be made better off without making somebody else worse off. Named after Vilfredo Pareto (1843–1923), an Italian economist. If an economy’s resources are being used inefficiently, it ought to be possible to make somebody better off without anybody else becoming worse off. In reality, change often produces losers as well as winners. Pareto efficiency does not help judge whether this sort of change is economically good or bad.",economist,1,56.45,9.1,11.2,11.53,10.5,8.21,8.4,10.24
Paris Club,"The name given to the arrangements through which countries reschedule their official DEBT; that is, money borrowed from other governments rather than BANKS or private FIRMS. The club is based on Avenue Kléber in Paris. Its members are the 19 founders of the OECD as well as Russia. Other institutions such as the WORLD BANK attend in an ­informal role. Rescheduling requires the consensus agreement of members and must not favour one CREDITOR nation over another. Private debt re­scheduling takes place through the London Club.",economist,1,73.98,6.5,9.7,11.82,10.2,10.29,7.416666667,9.44
Patents,"In 1899 the commissioner of the American Office of Patents recommended that his office be abolished because “everything that can be invented has been invented”. The fact that there has been so much INNOVATION during the subsequent 100 years may owe something to the existence of patents. Economists reckon that if people are going to spend the time and MONEY needed to think up and develop new products, they need to be fairly confident that if the idea works they will earn a decent PROFIT. Patents help achieve this by granting the inventor a temporary MONOPOLY over the idea, to stop it being stolen by imitators who have not borne any of the development RISK and costs. Like any monopoly, patents create inefficiency because of the lack of COMPETITION to produce and sell the product. So economists debate how long patent protection should last.  There is also debate about which sorts of innovation require the encouragement of a potential monopoly to make them happen. Furthermore, the pace of innovation in some industries has sharply reduced the number of years during which a patent is valuable. Some economists say that this shows that patents do not play a large part in the process of innovation.",economist,1,54.05,12.1,14.4,11.2,14.5,8.85,16.25,14.32
Path dependence,"History matters. Where you have been in the past determines where you are now and where you can go in future. Indeed, even small, apparently trivial, differences in the path you have taken can have huge consequences for where you are and can go. In ECONOMICS, path dependence refers to the way in which apparently insignificant events and choices can have huge consequences for the development of a market or an economy.",economist,1,55.58,11.5,14.6,10.51,13.4,8.12,16,14.6
Peak pricing,"When CAPACITY is fixed and DEMAND varies during a time period, it may make sense to charge above-AVERAGE    PRICES when demand peaks. Because this will divert some peak demand to cheaper off-peak periods, it will reduce the total amount of capacity needed at the peak and reduce the amount of capacity lying idle at off-peak times, thus resulting in a more efficient use of resources. Peak pricing is common in SERVICES with substantial fixed capacity, such as electricity supply and rail transport, as anybody who pays higher fares to travel during rush hours knows only too well.",economist,1,38.69,15.9,14.1,11.5,18.1,10.45,19.83333333,15.81
Percentage point,"A unit of size, a one-hundredth of the total. Not to be confused with percentage change. When something increases by 1 percentage point this may be quite different from a 1% increase. For instance, if GDP grew last year by 1% and this year by 2%, the GROWTH rate this year increased by 1 percentage point compared with last year (the difference between 1% and 2%) and also by 100% (2% is double 1%). A 1% increase would mean that the growth rate this year was only 1.01%.",economist,1,78.99,6.6,9.9,6.26,8,7.38,10.2,7.95
Percentile,"Part of the “ile” family that signposts positions on a scale of numbers (see also QUARTILE). The top percentile on, say, the distribution of INCOME, is the richest 1% of the POPULATION.",economist,1,63.7,8.4,0,8.87,9.2,9.86,9,10.15
Permanent income hypothesis,"Over their lives, people try to spread their spending more evenly than their INCOME. The permanent income hypothesis, developed by MILTON FRIEDMAN, says that a person's spending decisions are guided  by what they think over their lifetime will be their AVERAGE (also known as permanent) income. A sharp increase in short-term income will not result in an equally sharp increase in short-term CONSUMPTION. What if somebody unexpectedly comes into money, say by winning the lottery? The permanent income hypothesis suggests that people will save most of any such WINDFALL GAINS. Reality may be somewhat different. (See LIFE-CYCLE HYPOTHESIS.)",economist,1,46.47,10.8,11.9,13.4,12.8,8.8,10.5,9.79
Pigou effect,"Named after Arthur Pigou (1877-1959), a sort of WEALTH EFFECT resulting from DEFLATION. A fall in the PRICE level increases the REAL VALUE of people's SAVINGS, making them feel wealthier and thus causing them to spend more. This increase in DEMAND can lead to higher employment.",economist,1,64.41,8.1,10.5,10.37,10.1,10.23,8.333333333,10.47
Plaza Accord,"On September 22nd 1985, finance ministers from the world's five biggest economies - the United States, Japan, West Germany, France and the UK - announced the Plaza Accord at the eponymous New York hotel. Each country made specific promises on economic policy: the United States pledged to cut the federal deficit, Japan promised a looser [economics-term KEY-""MONETARY POLICY""]monetary policy[/economics-term] and a range of financial-sector reforms, and Germany proposed tax cuts. All countries agreed to intervene in currency markets as necessary to get the dollar down. Perhaps not surprisingly, not all the promises were kept (least of all the American one on deficit cutting), but even so the plan turned out to be spectacularly successful. By the end of 1987, the dollar had fallen by 54% against both the D-mark and the yen from its peak in February 1985. This sharp drop led to a new fear: of an uncontrolled dollar plunge. So in 1987 another big international plan, the Louvre Accord, was hatched to stabilise the dollar. Again specific policy pledges were made (the United States to tighten fiscal policy, Japan to loosen monetary policy). Again the participants promised currency intervention if major currencies moved outside an agreed, but unpublished, set of ranges. The dollar promptly rose.",economist,1,50.67,11.3,13.3,12.53,14.1,9.66,16.5,12.1
Positional goods,"Things that the Joneses buy. Some things are bought for their intrinsic usefulness, for instance, a hammer or a washing machine. Positional goods are bought because of what they say about the person who buys them. They are a way for a person to establish or signal their status relative to people who do not own them: fast cars, holidays in the most fashionable resorts, clothes from trendy designers. By necessity, the quantity of these goods is somewhat fixed, because to increase SUPPLY too much would mean that they were no longer positional. What would owning a Rolls-Royce say about you if everybody owned one? Fears that the rise of positional goods would limit GROWTH, since by definition they had to be in scarce supply, have so far proved misplaced. Entrepreneurs have come up with ever more ingenious ways for people to buy status, thus helping developed economies to keep growing.",economist,1,69.21,8.3,11.2,10.5,11.1,9.17,10.16666667,11
Positive economics,"ECONOMICS that describes the world as it is, rather than trying to change it. The opposite of NORMATIVE ECONOMICS, which suggests policies for increasing economic WELFARE.",economist,1,49.82,9.5,0,13.5,11.5,10.35,8.5,12.89
Poverty trap,Another name for the UNEMPLOYMENT TRAP.,economist,1,48.47,8,0,11.07,8.3,6.57,4,9.07
PPP,See PURCHASING POWER PARITY.,economist,1,8.2,13.1,0,11.6,10,11.73,3,21.6
Precautionary motive,"Keeping some MONEY handy, just in case. One of three motives for holding money identified by KEYNES, along with the transactional motive (having the cash to pay for planned purchases) and the speculative motive (you think ASSET prices are going to fall, so you sell your assets for cash).",economist,1,63.53,10.5,0,10.33,13.9,9.36,14.25,13.07
Predatory pricing,"Charging low PRICES now so you can charge much higher prices later. The predator charges so little that it may sustain losses over a period of time, in the hope that its rivals will be driven out of business. Clearly, this strategy makes sense only if the predatory firm is able eventually to establish a MONOPOLY. Some advocates of anti-DUMPING policies say that cheap IMPORTS are examples of predatory pricing. In practice, the evidence gives little support for this view. Indeed, in general, predatory pricing is quite rare. It is certainly much less common in practice than it might appear from the propaganda of FIRMS that are under pricing pressure from more efficient competitors.",economist,1,63.39,8.5,12,10.96,10.5,9.43,8.142857143,10.73
Preference,What consumers want (see REVEALED PREFERENCE).,economist,1,56.93,6.8,0,15.88,13.7,11.83,3,9.07
Present value,See NET PRESENT VALUE.,economist,1,92.8,1.3,0,2.9,2.9,0.2,1,1.6
Price discrimination,"When a firm charges different customers different PRICES for the same product. For producers, the perfect world would be one in which they could charge each customer a different price: the price that each customer would be willing to pay. This would maximise PRODUCER SURPLUS. This cannot happen, not least because sellers do not know how much any individual would pay.",economist,1,72.87,6.9,10.1,10.84,10.1,7.5,8.125,8.09
Price elasticity,"A measure of the responsiveness of DEMAND to a change in PRICE. If demand changes by more than the price has changed, the good is price-elastic. If demand changes by less than the price, it is price-inelastic. Economists also measure the ELASTICITY of demand to changes in the INCOME of consumers.",economist,1,75.4,5.9,9.5,9.03,7.7,7.06,6.625,8.26
Price mechanism,The process by which markets set PRICES.,economist,1,106.67,0.1,0,7.37,5,10.75,2.5,2.8
Price regulation,"When PRICES of, say, a PUBLIC UTILITY are regulated, giving producers an incentive to maximise their profits by reducing their costs as much as possible. Contrast with RATE OF RETURN REGULATION.",economist,1,47.28,10.5,0,12.18,11.2,10.01,11.25,13.94
Price/earnings ratio,"A crude method of judging whether SHARES are cheap or expensive; the ratio of the market PRICE of a share to the company's earnings (PROFIT) per share. The higher the price/earnings (P/E) ratio, the more investors are buying a company's shares in the expectation that it will make larger profits in future than now. In other words, the higher the P/E ratio, the more optimistic investors are being.",economist,1,65.35,9.8,10.5,9.87,12.8,9.87,13,11.43
Principal-agent theory,See AGENCY COSTS.,economist,1,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
Prisoners' dilemma,"A favourite example in GAME THEORY, which shows why co-operation is difficult to achieve even when it is mutually beneficial. Two prisoners have been arrested for the same offence and are held in different cells. Each has two options: confess, or say nothing. There are three possible outcomes. One could confess and agree to testify against the other as state witness, receiving a light sentence while his fellow prisoner receives a heavy sentence. They can both say nothing and may be lucky and get light sentences or even be let off, owing to lack of firm evidence. Or they may both confess and probably get lighter individual sentences than one would have received had he said nothing and the other had testified against him. The second outcome would be the best for both prisoners. However, the RISK that the other might confess and turn state witness is likely to encourage both to confess, landing both with sentences that they might have avoided had they been able to co-operate in remaining silent. In an OLIGOPOLY, FIRMS often behave like these prisoners, not setting PRICES as high as they could do if they only trusted the other firms not to undercut them. As a result, they are worse off.",economist,1,60.85,9.4,11.7,9.98,10.6,7.93,8.142857143,11.38
Private equity,"When a firm’s SHARES    are held privately and not traded in the public markets. Private equity includes shares in both mature private companies and, as VENTURE CAPITAL,     in newly started businesses. As it is less liquid than publicly traded EQUITY,      investors in private equity expect on average to earn a higher EQUITY RISK PREMIUM from it.",economist,1,27.11,14.1,13.6,11.31,11.6,10.49,12.66666667,11.77
Privatisation,"Selling state-owned businesses to private investors. This policy was associated initially with Margaret Thatcher's government in the 1980s, which privatised numerous companies, including PUBLIC UTILITY businesses such as British Telecom, British Gas, and electricity and water companies. During the 1990s, privatisation became a favourite policy of governments all over the world.",economist,1,28.84,13.5,16.7,18.79,17.5,11.29,14.16666667,15.43
Probability,"How likely something is to happen, usually expressed as the ratio of the number of ways the outcome may occur to the number of total possible outcomes for the event. For instance, each time you throw a dice there are six possible outcomes, but in only one of these can a six come up. Thus the probability of throwing a six on any given throw is one in six. The fact that you threw a six last time does not alter the one-in-six probability of throwing a six next time (see RISK).",economist,1,65.05,9.9,9.5,6.74,9.9,7.52,12.75,10.07
Producer prices,See FACTORY PRICES.,economist,1,59.97,5.6,0,5.35,6.8,9.05,1.5,1.2
Producer surplus,"The difference between what a supplier is paid for a good or service and what it cost to SUPPLY. Added to CONSUMER SURPLUS, it provides a measure of the total economic benefit of a sale.",economist,1,62.17,8.9,0,7.13,7.8,8.56,10.75,10.43
Profit margin,A firm’s PROFIT expressed as a percentage of its turnover or sales.,economist,1,76.22,5.6,0,8.4,6.6,12.13,6,8.13
Profit maximisation,"The presumed goal of FIRMS. In practice, business people often trade off making as much profit as possible against other goals, such as building business empires, being popular with staff and enjoying life. The growing popularity in recent years of paying bosses with SHARES in their firm may have reduced the AGENCY COSTS that arise because they are the hired hands of shareholders, making them more likely to pursue profit maximisation.",economist,1,55.88,11.4,11.2,12.48,14.8,10.37,13.83333333,12.3
Progressive taxation,TAXATION that takes a larger proportion of a taxpayer's INCOME the higher the income is. (See VERTICAL EQUITY.),economist,1,36.28,12.7,0,11.08,12.2,11.55,14,18.31
Propensity,"ECONOMICS abounds with propensities to do various things: consume, save, invest, import, and so on. In each case, it is important to distinguish between the AVERAGE propensity and the MARGINAL one. The average propensity to consume is simply total CONSUMPTION divided by total INCOME. The marginal propensity to consume measures how much of each extra dollar of income is consumed: the percentage change in consumption divided by the percentage change in income. The value of the marginal propensity to consume, which determines the MULTIPLIER, is harder to predict than the value of the average propensity to consume.",economist,1,43.32,12,15.6,13.11,13.6,8.34,14.5,12.71
Prospect theory,"A theory of 'irrational' economic behaviour. Prospect theory holds that there are recurring biases driven by psychological factors that influence people's choices under uncertainty. In particular, it assumes that people are more motivated by losses than by gains and as a result will devote more energy to avoiding loss than to achieving gain. The theory is based on the experimental work of two psychologists, Daniel Kahneman (who won a nobel prize for economics for it) and Amos Tversky (1937-96). It is an important component of BEHAVIOURAL ECONOMICS.",economist,1,45.35,11.3,14.8,12.64,12.6,11.21,12.9,14.78
Public goods,"Things that can be consumed by everybody in a society, or nobody at all. They have three characteristics. They are:",economist,1,69.79,6,0,7.92,6.2,7.29,5.5,8
Public spending,"Spending by national and local GOVERNMENT and some government-backed institutions. See FISCAL POLICY, golden rule and BUDGET.",economist,1,29.01,11.3,0,16.49,13,11.49,5.75,10.46
Public utility,"A firm providing essential services to the public, such as water, electricity and postal services, usually involving elements of NATURAL MONOPOLY. Food is essential, but because it is provided in a competitive market, food SUPPLY is not usually regarded as a public utility. Because public utilities have some MONOPOLY power, they are typically subject to some REGULATION by GOVERNMENT, such as PRICE controls and perhaps an obligation to provide their services to everybody, even to those who cannot afford to pay a market price (the universal service obligation). Public utilities are often owned by the state, although this has become less common as a result of PRIVATISATION.",economist,1,27.35,16.1,17.4,13.23,17.2,9.1,18.5,17.08
Public-private,"Using private firms to carry out aspects of government. This has become increasingly popular since the early 1980s as governments have tried to obtain some of the benefits of the private sector without going as far as full privatisation. The gains have been greatest when services have been allocated to private firms through competitive bidding. They have been smallest, and arguably even negative, in cases when the main contribution of the private firm has been to raise finance. That is because governments can usually borrow more cheaply than private firms, so when they ask them to raise money the question that springs to mind is: are they doing this to make their public borrowing look smaller?",economist,1,56.39,11.2,12.3,11.9,14,9.14,12.4,13.07
Q theory,See TOBIN.,economist,1,77.91,2.9,0,-7.41,0.8,11.63,0,0.8
Quantity theory of money,The foundation stone of MONETARISM. The theory says that the quantity of MONEY available in an economy determines the value of money. Increases in the MONEY SUPPLY are the main cause of INFLATION. This is why Milton FRIEDMAN claimed that 'inflation is always and everywhere a monetary phenomenon'.,economist,1,50.84,9.2,13,11.3,9.1,10.15,8,13.97
Queueing,"Market failure? Not necessarily. Usually a queue reflects a PRICE that is set too low, so that DEMAND exceeds SUPPLY, so some customers have to wait to buy the product. But a queue may also be the result of deliberate rationing by a producer, perhaps to attract attention - by a restaurant that wants to appear popular, say. Customers may regard a queue, such as a waiting list for health treatment, as a fairer way to distribute the product than using the PRICE MECHANISM.",economist,1,51.82,12.9,12.5,9.41,14.5,9.77,16.66666667,14.45
R squared,An indicator of the reliability of a relationship identified by REGRESSION ANALYSIS. An R2 of 0.8 indicates that 80% of the change in one variable is explained by a change in the related variable.,economist,1,45.76,11.1,0,9.57,9.6,10.98,12.5,16.21
Random walk,"Impossible to predict the next step. EFFICIENT MARKET THEORY says that the PRICES of many financial ASSETS, such as SHARES, follow a random walk. In other words, there is no way of knowing whether the next change in the price will be up or down, or by how much it will rise or fall. The reason is that in an efficient market, all the INFORMATION that would allow an investor to predict the next price move is already reflected in the current price. This belief has led some economists to argue that investors cannot consistently outperform the market. But some economists argue that asset prices are predictable (they follow a non-random walk) and that markets are not efficient.",economist,1,68.4,8.6,11.5,9.63,10.8,8.09,12,10.59
Rate of return,"A way to measure economic success, albeit one that can be manipulated quite easily. It is calculated by expressing the economic gain (usually PROFIT) as a percentage of the CAPITAL used to produce it. Deciding what number to use for profit is rarely simple. Likewise, totalling up how much capital was used can be tricky, especially if it is expanded to include INTANGIBLE ASSETS and HUMAN CAPITAL. When FIRMS are evaluating a project to decide whether to go ahead with it, they estimate the project's expected rate of return and compare it with their COST OF CAPITAL. (See NET PRESENT VALUE and DISCOUNT RATE.)",economist,1,50.36,11.4,14.3,10.21,12,9.22,13.8,13.7
Rate of return regulation,"An approach to REGULATION often used for a PUBLIC UTILITY to stop it exploiting MONOPOLY power. A public utility is forbidden to earn above a certain RATE OF RETURN decided by the regulator. In practice, this often encourages the utility to be inefficient, slow to innovate and quick to spend money on such things as big offices and executive jets, to keep down its PROFIT and thus the rate of return. Contrast with PRICE       REGULATION.",economist,1,43.93,11.8,13.8,9.92,10.5,8.57,12.875,13.39
Ratings,"A guide to the riskiness of a FINANCIAL INSTRUMENT provided by a ratings agency, such as Moody's, Standard and Poor's and Fitch IBCA. These measures of CREDIT quality are mostly offered on marketable GOVERNMENT and corporate DEBT. A triple-A or A++ rating represents a low risk of DEFAULT; a C or D rating an extreme risk of, or actual, default. Debt PRICES and YIELDS often (but not always) reflect these ratings. A triple-A BOND has a low yield. High-yielding bonds, also known as junk bonds, usually have a rating that suggests a high risk of default.",economist,1,63.7,8.4,10.9,8.81,9.1,10.35,8.833333333,10.15
Rational expectations,"How some economists believe that people think about the future. Nobody can predict the future perfectly; but rational expectations theory assumes that, over time, unexpected events (SHOCKS) will cancel out each other and that on average people's expectations about the future will be accurate. This is because they form their expectations on a rational basis, using all the INFORMATION available to them optimally, and learn from their mistakes. This is in contrast to other theories of how people look ahead, such as ADAPTIVE EXPECTATIONS, in which people base their predictions on past trends and changes in trends, and BEHAVIOURAL ECONOMICS, which assumes that expectations are somewhat irrational as a result of psychological biases.",economist,1,34.29,15.5,16.2,14.28,18.7,9.79,16.75,16.98
Rationality,See ECONOMIC MAN.,economist,1,59.97,5.6,0,1.52,3.6,9.05,1.5,14.53
Real balance effect,Falling INFLATION and INTEREST rates lead to higher spending (see WEALTH EFFECT).,economist,1,50.84,9.2,0,14.2,12,13.44,7,11.47
Real options theory,"A newish theory of how to take INVESTMENT decisions when the future is uncertain, which draws parallels between the real economy and the use and valuation of financial options. It is becoming increasingly fashionable at business schools and even in the boardroom.",economist,1,41.7,12.7,0,12.94,14,10.69,16,17.92
Real terms,A measure of the value of MONEY that removes the effect of INFLATION. Contrast with NOMINAL VALUE.,economist,1,62.85,6.6,0,7.97,5.5,8.7,4.25,8.11
Reciprocity,"Doing as you are done by. A grants B certain privileges on the condition that B grants the same privileges to A. Most international economic agreements, for example, on trade, include binding reciprocity requirements.",economist,1,51.55,8.9,12.5,11.93,9.7,10.23,7.333333333,12.76
Reflation,Policies to pump up DEMAND and thus boost the level of economic activity. Monetarists fear that such policies may simply result in higher INFLATION.,economist,1,50.84,9.2,0,11.59,9.1,11.47,7,11.47
Regional policy,"A policy intended to boost economic activity in a specific geographical area that is not an entire country and, typically, is in worse economic shape than nearby areas. It can include offering FIRMS incentives to provide jobs in the region, such as SOFT LOANS, grants, lower taxes, cheap LAND and buildings, subsidised LABOUR and worker training. Is it necessary? A region's problems should be somewhat self-correcting. After all, simple theories of SUPPLY and DEMAND would suggest that firms will move to areas of low WAGES and high UNEMPLOYMENT to take advantage of cheaper labour and surplus workers, or that workers will move away from such areas to where more and better-paid jobs exist. But some economic theories suggest that rather than moving to areas where wages are lowest, firms often cluster together with other successful businesses. Regional policy may need to be extremely generous to tempt firms to give up the advantages of being in a cluster.",economist,1,48.74,12,14.1,12.02,13.9,9.88,13,14.06
Regression analysis,"Number-crunching to discover the relationship between different economic variables. The findings of this statistical technique should always be taken with a pinch of salt. How big a pinch can vary considerably and is indicated by the degree of STATISTICAL SIGNIFICANCE and R SQUARED. The relationship between a dependent variable (GDP, say) and a set of explanatory variables (DEMAND, INTEREST rates, CAPITAL, UNEMPLOYMENT, and so on) is expressed as a regression equation.",economist,1,36.49,12.6,14.9,14.21,14.2,10.3,13.125,13.32
Regulatory arbitrage,"Exploiting loopholes in REGULATION, and perhaps making the regulation useless in the process. This is often done by international investors that use DERIVATIVES to find ways around a country’s financial regulations.",economist,1,30.36,12.9,0,16.47,14.4,10.52,11.25,13.94
Regulatory capture,"Gamekeeper turns poacher or, at least, helps poacher. The theory of regulatory capture was set out by Richard Posner, an economist and lawyer at the University of Chicago, who argued that “REGULATION is not about the public interest at all, but is a process, by which interest groups seek to promote their private interest ... Over time, regulatory agencies come to be dominated by the industries regulated.” Most economists are less extreme, arguing that regulation often does good but is always at RISK of being captured by the regulated firms.",economist,1,32.87,16.1,16.7,12.2,17.6,10.25,20.66666667,17.27
Regulatory failure,When REGULATION generates more economic costs than benefits.,economist,1,21.06,12.3,0,18.05,13.8,13.9,7,23.2
Regulatory risk,"A RISK faced by private-sector FIRMS that regulatory changes will hurt their business. In competitive markets, regulatory risk is usually small. But in NATURAL MONOPOLY industries, such as electricity distribution, it may be huge. To ensure that regulatory risk does not deter private firms from offering their services, a GOVERNMENT wishing to change its regulations may have good reason to compensate private firms that suffer losses as a result of the change.",economist,1,44.75,11.5,14.2,13.22,13.1,9.57,12.75,12.76
Relative income hypothesis,"People often care more about their relative well being than their absolute well being. Someone who prefers a $100 a week pay rise when a colleague gets $50 to both of them getting a $200 increase, for example. Poor people may consume more of their INCOME than rich people do because they want to reduce the gap in their CONSUMPTION levels. The relative income hypothesis, set out by James Duesenberry, says that a household's consumption depends partly on its income relative to other families. Contrast with PERMANENT INCOME HYPOTHESIS.",economist,1,53.41,10.2,12,10.9,11.2,8.78,11.3,10.72
Rent-seeking,"Cutting yourself a bigger slice of the cake rather than making the cake bigger. Trying to make more money without producing more for customers. Classic examples of rent-seeking, a phrase coined by an economist, Gordon Tullock, include:",economist,1,67.45,6.9,8.8,11.93,10.1,9.37,6.166666667,8.16
Replacement cost,What it would cost today to replace a FIRM's existing ASSETS.,economist,1,68.77,6.4,0,7.35,5.9,9.92,5.5,8.04
Replacement rate,"The fertility rate required in a country to keep its population steady. In rich countries, this is usually reckoned to be 2.1 children per woman, the extra 0.1 reflecting the likelihood that some children will die before their parents. In poorer countries with higher infant mortality, the replacement rate may be much higher. In may countries, since the early 1990s the fertility rate has fallen below the replacement rate. There has been much debate about why, and much agreement that, if this trend continues, those countries may face long-term problems such as a relatively growing proportion of retired older people having to be supported by a relatively shrinking proportion of younger people.",economist,1,48.74,12,13,12.71,14.5,9.54,12.4,12.89
Required return,The minimum EXPECTED RETURN you require from an INVESTMENT to be willing to go ahead with it.,economist,1,62.68,8.7,0,8.35,8.4,8.19,11.5,13.86
Rescheduling,Changing the payment schedule for a DEBT by agreement between borrower and lender. This is usually done when the borrower is struggling to make payments under the original schedule. Rescheduling can involve reducing INTEREST ­payments but extending the period over which they are collected; putting back the date of repayment of the loan; reducing interest payments but increasing the amount that has to be repaid eventually; and so on. The rescheduling may or may not require the lender to bear some financial loss. The rescheduling may or may not require the lender to bear some financial loss. The rescheduling of loans to countries usually takes place through the Paris Club and London Club.,economist,1,60.85,9.4,12.7,12.18,12.3,8.48,11,11.77
Reservation wage,The lowest WAGE for which a person will work.,economist,1,96.18,2.1,0,4.14,2.4,7.59,3.5,3.6
Reserve currency,A foreign currency held by a GOVERNMENT or CENTRAL BANK as part of a country’s RESERVES. Outside the United States the dollar is the most widely used reserve currency. Everywhere the EURO is increasingly widely used.,economist,1,59.3,8,10.5,10.48,8.3,8.18,6.666666667,7.02
Reserve ratio,The fraction of its deposits that a BANK holds as RESERVES.,economist,1,85.69,4,0,6.82,5,9.92,4.5,4.4
Reserve requirements,Regulations governing the minimum amount of RESERVES that a BANK must hold against deposits.,economist,1,57.27,8.8,0,14.43,12.1,9.97,9,14.17
Reserves,"MONEY in the hand, available to be used to meet planned future payments or if some other need arises. FIRMS may put their reserves in a BANK, as a deposit. For a bank, reserves are those deposits it retains rather than lending them out.",economist,1,81.93,5.5,3.1,6.78,6.6,7.95,6.333333333,5.88
Residual risk,"When you buy an ASSET you become exposed to a bundle of different RISKs. Many of these risks are not unique to the asset you own but reflect broader possibilities, such as that the stockmarket average will rise or fall, that INTEREST rates will be cut or increased, or that the GROWTH rate will change in an entire economy or industry. Residual  risk, also known as alpha, is what is left after you take out all the other shared risk exposures. Exposure to this risk can be reduced by DIVERSIFICATION. Contrast with SYSTEMATIC RISK.",economist,1,60.85,9.4,12,9.11,9.9,8.94,11.8,12.2
Restrictive practice,"A general term for anything done by a firm, or FIRMS, to inhibit COMPETITION. Generally against the law. (See ANTITRUST and CARTEL.)",economist,1,60.31,7.6,0,8.97,7.9,9.21,6.5,9.85
Returns,The rewards for doing business. Returns usually refer to PROFIT and can be measured in various ways (see RATE OF RETURN and TOTAL RETURNS).,economist,1,59.3,8,0,8.92,7.3,10.81,6,8.13
Revealed preference,"An example of a popular joke among economists: two economists see a Ferrari. 'I want one of those,' says the first. 'Obviously not,' replies the other. To get a smile out of this it is necessary (but not, alas, sufficient) to know about revealed preference. This is the notion that what you want is revealed by what you do, not by what you say. Actions speak louder than words. If the economist had really wanted a Ferrari he would have tried to buy one, if he did not own one already.",economist,1,78.38,6.8,11.2,6.62,8.1,8.01,11.1,10.8
"Ricardo, David","The third of 17 children of a wealthy banker, David Ricardo (1772-1823) was disinherited at the age of 21 after he married a Quaker against the wishes of his parents. He became a stockbroker and did so well that he retired at 42 to concentrate on writing and politics.",economist,1,63.53,10.5,0,8.36,12,10.01,14.75,13.88
Risk averse,"Someone who thinks RISK is a four-letter word. Risk-averse investors are those who, when faced with two investments with the same EXPECTED RETURN but two different risks, prefer the one with the lower risk.",economist,1,71.14,7.6,0,10.9,11,9.12,9,9.15
Risk management,"The process of bearing the RISK you want to bear, and minimising your exposure to the risk you do not want. This can be done in several ways: not doing things that carry a particular risk; HEDGING; DIVERSIFICATION; and buying INSURANCE.",economist,1,59.13,10.1,0,9.46,11.3,9.66,13.25,13.08
Risk neutral,Someone who is insensitive to RISK. Risk-neutral investors are indifferent between an INVESTMENT with a certain outcome and a risky investment with the same EXPECTED RETURNS but an uncertain outcome. Such people are few and far between.,economist,1,58.99,8.1,11.2,12.57,10.2,8.94,7.166666667,10.33
Risk premium,The extra RETURN that investors require to hold a risky ASSET instead of a risk-free one; the difference between the EXPECTED RETURNS from a risky INVESTMENT and the risk-free rate. (See EQUITY RISK PREMIUM.),economist,1,36.97,16.6,0,11.96,19.8,9.97,22,18.31
Risk seeking,Someone who cannot get enough RISK. ­Risk-seeking investors prefer an INVESTMENT with an uncertain outcome to one with the same EXPECTED RETURNS and certainty that it will deliver them.,economist,1,42.04,14.6,0,14.11,18.6,11.06,19.5,18.5
Risk-free rate,"The RATE OF RETURN earned on a risk-free ASSET. This is a crucial component of MODERN PORTFOLIO theory, which assumes the existence of both risky and risk-free assets. The risk-free asset is usually assumed to be a GOVERNMENT BOND, and the risk-free rate is the YIELD on that bond, although in fact even a Treasury is not entirely without risk. In modern portfolio theory, the risk-free rate is lower than the EXPECTED RETURN on the risky asset, because the issuer of the risky asset has to offer RISK AVERSE investors the expectation of a higher return to persuade them to forgo the risk-free asset.",economist,1,53.55,12.3,12.6,9.87,14.1,9.18,15.25,13.48
Safe harbour,Protection from the rough seas of REGULATION. Laws and regulations often include a safe harbour clause that sets out the circumstances in which otherwise regulated FIRMS or individuals can do something without regulatory oversight or interference.,economist,1,27.83,13.9,0,16.24,15.3,11.55,13.5,16.09
Satisficing,"Settling for what is good enough, rather than the best that is possible. This may occur in any situation in which decision makers are trying to pursue more than one goal at a time. CLASSICAL ECONOMICS and NEO-CLASSICAL ECONOMICS assume that individuals, FIRMS and GOVERNMENTS try to achieve the OPTIMUM, best possible outcome from their decisions. Satisficing assumes they decide for each goal a level of achievement that would be good enough and try to find a way to achieve all of these sub-optimal goals at once. This approach to decision making is commonplace in behavioural economics. It can be regarded as a realist's theory of how decisions are taken. The concept was invented by Herbert Simon (1916-2001), a Nobel ­prize-winning economist, in his book, Models of Man, in 1957.",economist,1,52.6,10.5,13.5,11.02,11.6,9.54,11.16666667,12.36
Savings,"Any INCOME that is not spent. Ultimately, savings are the source of INVESTMENT in an economy, although domestic savings may be supplemented by CAPITAL from foreign savers or themselves be invested abroad.",economist,1,46.78,10.7,0,13.05,12.1,10.35,11.5,13.9
Say's law,"SUPPLY creates its own DEMAND. So argued a French economist, Jean-Baptiste Say (1767-1832), and many classical and neo-classical economists since. KEYNES argued against Say, making the case for the use of FISCAL POLICY to boost demand if there is not enough of it to produce FULL EMPLOYMENT.",economist,1,64,8.2,11.9,11.31,10.9,10.46,10.16666667,10.54
Scenario analysis,"Testing your plans against various possible scenarios to see what might happen should things not go as you hope. Scenario analysis is an important technique in RISK MANAGEMENT, helping FIRMS and especially financial institutions to ensure that they do not take on too much RISK. Its usefulness does of course depend on risk managers coming up with the right scenarios.",economist,1,51.18,11.1,14.1,12.18,12.8,9.37,13.66666667,13.33
"Schumpeter, Joseph","After growing up in the Austro-Hungarian empire, in which he worked as an itinerant lawyer, Joseph Schumpeter (1883-1950) became an academic in 1909. He was appointed Austrian minister of finance in 19 19, presiding over a period of HYPER-INFLATION. He then became president of a small Viennese BANK, which collapsed. He returned to academia in Bonn in 1925 and in the 1930s joined the faculty of Harvard.",economist,1,54.42,9.8,13,10.67,10.8,12.01,11.375,13.88
SDR,"Short for special drawing rights. Created in 1967, the SDR is the IMF's own currency. Its value is based on a portfolio of widely used currencies.",economist,1,71.1,5.5,9.7,6.52,4.8,10.75,4.666666667,9.63
Search costs,"The cost of finding what you want. The economic cost of buying something is not simply the PRICE you pay. Finding what you want and ensuring that it is competitively priced can be expensive, be it the financial cost of physically getting to a marketplace or the OPPORTUNITY COST of time spent fact-finding. Search costs mean that people often take decisions without all the relevant INFORMATION, which can result in inefficiency. Technological changes such as the internet may sharply reduce search costs, and thus lead to more efficient decision making.",economist,1,53.21,10.3,13.3,11.83,11.9,9.09,12.2,14.31
Seasonally adjusted,"There are seasonal patterns in many economic activities; for instance, there is less construction in winter than in summer, and spending in shops soars as Christmas approaches. To reveal underlying trends, statistics reflecting only part of the year are often adjusted to iron out seasonal variations.",economist,1,39.67,13.4,0,14.51,16.3,10.61,17,17.9
Second-best theory,"As we do not live in a perfect world, how useful are economic theories based on the assumption  that we do? Second-best theory, set out in 1956 by Richard Lipsey and Kelvin Lancaster (1924-99), looks at what happens when the assumptions of an economic model are not fully met. They found that in situations where not all the conditions are met, the second-best situation - that is, meeting as many of the other conditions as possible - may not result in the OPTIMUM solution. Indeed, reckoned Lipsey and Lancaster, in general, when one optimal equilibrium condition is not satisfied all of the other equilibrium conditions will change.",economist,1,44.78,13.5,16.5,11.15,15.4,9.15,17.5,16.23
Secondary market,"A market in second-hand FINANCIAL INSTRUMENTS. BONDS and SHARES are first sold in the primary market, for instance, through an initial public offering. After that, their new owners often sell them in the secondary market. The existence of liquid secondary markets can encourage people to buy in the primary market, as they know they are likely to be able to sell easily should they wish.",economist,1,63.39,8.5,11.7,10.44,10.1,8.09,10.375,10.83
Securitisation,"Turning a future cashflow into tradable, BOND-like SECURITIES. Creating such ASSET-backed securities became a lucrative business for financial FIRMS during the 1990s, as they invented new securities based on cashflow ranging from future mortgage and credit-card payments to BANK loans, movie revenue and even the royalties on songs by David Bowie (so-called Bowie-bonds). Securitisation has many benefits, at least in­theory. Issuers gain instant access to MONEY for which they would otherwise have to wait months or years, and they can shed some of the RISK that their expected revenue will not materialise. By selling securitised loans, investment banks are able to finance their customers without tying up large amounts of CAPITAL. Investors can hold a new sort of asset, less risky than unsecured bonds, giving them the risk-reducing benefit of DIVERSIFICATION. But there are dangers. The future cashflow underlying the securities may flow earlier or later than promised, or not at all.",economist,1,43.73,11.9,13.4,13.81,14.1,10.4,13.6,12.6
Seignorage,"Traditionally, the PROFIT rulers made from allowing metals to be turned into coins. Now it refers in a loosely defined way to the power of a country whose notes and coins are held by another country as a RESERVE CURRENCY.",economist,1,59.64,9.9,0,8.65,10,9.76,12,11
Seller's market,A market in which the seller seems to have the upper hand and so can charge a higher PRICE than in a BUYER'S MARKET.,economist,1,72.5,9.1,0,5,8.8,7.46,12,9.6
Seniority,"The order in which CREDITORS are entitled to be repaid. In the event of a BANKRUPTCY, senior DEBT must be paid off before junior debt. Because junior debt has a lower chance of being repaid than senior debt, it carries more RISK, and thus typically pays a higher YIELD.",economist,1,71.85,7.3,9.7,7.89,8,9.28,8.5,9.79
Sequencing,"Shorthand for implementing economic reforms in the right order. In recent years, this has become a hot topic in development economics. Some economists argue that introducing the right policies alone is not enough to revive a malfunctioning economy; reforms must be implemented in the right sequence. Thus they debate when in the reform process there should be, say, privatisation of state enterprises, and in which order, or the lifting of capital controls or other trade barriers. Other economists dispute whether there is a right sequence.",economist,1,54.22,9.9,12.7,12.87,12.4,9.87,11.3,12.45
Services,"Products of economic activity that you can’t drop on your foot, ranging from hairdressing to websites. In most countries, the share of economic activity accounted for by services rose steadily during the 20th century at the expense of AGRICULTURE and MANUFACTURING. More than two-thirds of OUTPUT in OECD countries, and up to four-fifths of employment, is now in the services sector.",economist,1,50.87,11.2,13.6,12.59,13.7,10.34,13.5,13.37
Shadow price,"The true economic PRICE of an activity: the OPPORTUNITY COST. Shadow prices can be calculated for those goods and SERVICES that do not have a market price, perhaps because they are set by GOVERNMENT. Shadow pricing is often used in COST-BENEFIT ANALYSIS, where the whole purpose of the analysis is to capture all the variables involved in a decision, not merely those for which market prices exist.",economist,1,48.84,12,13,11.09,13.1,8.51,14.16666667,13.1
Shareholder value,"Putting shareholders first; the notion that all business activity should aim to maximise the total value of a company’s SHARES. Some critics argue that concentrating on shareholder value will be harmful to a company’s other STAKEHOLDERS, such as employees, suppliers and customers.",economist,1,41.7,12.7,0,15.2,16,10.69,15,16.02
Sharpe ratio,"A rough guide to whether the rewards from an INVESTMENT justify the RISK, invented by Bill Sharpe, a winner of the NOBEL PRIZE FOR ECONOMICS and co-creator of the CAPITAL ASSET PRICING MODEL. You simply divide the past  RETURN on the investment (less the RISK-FREE RATE) by its STANDARD DEVIATION, the simplest measure of risk. The higher the Sharpe ratio is the better, that is, the greater is the return per unit of risk. However, as it is a backward-looking measure, based on what an investment has done in the past, the Sharpe ratio does not guarantee similar performance in future.",economist,1,54.26,12,13.4,9.87,13.8,9.43,15.75,13.29
Shock,An unexpected event that affects an economy (see ASYMMETRIC SHOCK).,economist,1,44.41,9.6,0,13.14,10.9,12.03,7,16
Short-termism,"Doing things that make you better off in the short-run but worse off in the end. After the bursting of the stockmarket bubble and the failure of Enron at the start of the 2000s, much like during the 1980s, accusations of short-termism were often made against the stockmarket-focused CAPITALISM of the United States and the UK. During the bubble, it was claimed, investors had become too focused on short-term profits and changes in share prices, and failed to probe deeply enough into long-term performance. As a result, managers did things that made their profits look as good as possible in the short run, often to the detriment of their company's long-term health. Indeed, many firms engaged in misleading and even fraudulent accounting practices to inflate short-term profits. In the 1980s and early 1990s, the complaint took a slightly different form, and was arguably less convincing, namely that short-termism caused lower levels of INVESTMENT by businesses than in countries where the stockmarket was less important, such as Germany and Japan.",economist,1,51.31,13.1,13,12.42,17.2,9.43,14.25,13.88
Shorting,"Selling a SECURITY, such as a SHARE, that you do not currently own, in the expectation that its PRICE will fall by the time the security has to be delivered to its new owner. If the price does fall, you can buy the security at the lower price, deliver it to whoever you sold it to and make a PROFIT. The RISK is that the price rises, leaving you with a loss.",economist,1,64.04,10.3,12.5,5.4,9.4,7.24,14.66666667,12.93
Signalling,"A solution to one of the biggest sources of MARKET FAILURE: ASYMMETRIC INFORMATION. Often the biggest problem facing sellers is how to convince buyers that what they are selling is as good as they say it is. This problem arises in situations where the qualities of the thing being sold cannot be observed easily by buyers, who thus fear that sellers may be conning them. In such situations, an answer may be for sellers to do something that shows they mean what they say about quality. This something is what economists call signalling.",economist,1,61.06,9.4,10.8,9.92,10.3,8.29,11.1,10.88
Simple interest,INTEREST calculated only on the initial amount ­borrowed or invested. Contrast with COMPOUND INTEREST.,economist,1,30.53,10.7,0,16.07,12,11.88,4.5,11.37
"Smith, Adam","The founder of ECONOMICS as we know it. Born in Kirkcaldy, Fife, Adam Smith (1723-90) was educated at Glasgow and Oxford, and in 1751 became professor of logic at Glasgow University. Eight years later he made his name by publishing the THEORY OF MORAL SENTIMENTS. His 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations, is the bible of CLASSICAL ECONOMICS. He emphasised the role of specialisation (the DIVISION OF LABOUR), TECHNICAL PROGRESS and CAPITAL INVESTMENT as the main engines of economic GROWTH. Above all, he stressed the importance of the INVISIBLE HAND, the way in which self-interest pursued in free markets leads to the most efficient use of economic resources and makes everybody better off in the process.",economist,1,58.92,10.2,14.1,10.85,12.5,10.9,11.33333333,14.09
Social benefits/costs,The overall impact of an economic activity on the WELFARE of society. Social benefits/costs are the sum of private benefits/costs arising from the activity and any EXTERNALITIES.,economist,1,32.39,12.1,0,13.91,11.8,11.32,10.25,12.81
Social capital,"The amount of community spirit or trust that an economy has gluing it together. The more social capital there is, the more productive the economy will be. Yet, curiously, one of the best-known books to address the role of social capital, ""Bowling Alone"", by Robert Putnam of Harvard University, pointed out that Americans were far less likely to be members of community organisations, clubs or associations in the 1990s than they were in the 1950s. He illustrated his thesis by charting the decline of bowling leagues. Yet the American economy has gone from strength to strength. This has led some economists to question whether social capital is really as important as the theory suggests, and others to argue that membership of bowling leagues and other community organisations is simply not a good indicator of the amount of social capital in a country.",economist,1,47.42,12.5,15,11.55,14.1,8.82,11,13.14
Social market,"The name given to the economic arrangements devised in Germany after the second world war. This blended market CAPITALISM, strong LABOUR protection and union influence, and a generous WELFARE state. The phrase has also been used to describe attempts to make capitalism more caring, and to the use of market mechanisms to increase the EFFICIENCY of the social functions of the state, such as the education system or prisons. More broadly, it refers to the study of the different social institutions underpinning every market economy.",economist,1,41.4,12.8,13.8,12.65,14,9.89,14.125,14.17
Soft currency,A currency that is expected to drop in value relative to other currencies.,economist,1,41.36,10.7,0,9.03,7.5,9.14,10.5,17.51
Soft dollars,The value of research services that brokerage companies provide “free” to INVESTMENT managers in exchange for the investment managers’ business. Economists disagree on whether or not such hidden payments are economically inefficient.,economist,1,29.86,13.1,0,18.67,16.3,11.34,12,15.15
Soft loan,A loan provided at below the market INTEREST RATE. Soft loans are used by international agencies to encourage economic activity in DEVELOPING COUNTRIES and to support non-commercial activities.,economist,1,23.43,13.5,0,15.88,13.5,12.23,11.5,18.46
Sovereign risk,The RISK that a GOVERNMENT will default on its DEBT or on a loan guaranteed by it.,economist,1,79.6,6.4,0,4.58,5.3,8.19,10.5,9.15
Speculative motive,See PRECAUTIONARY MOTIVE.,economist,1,9.21,12.7,0,16.95,16.2,14.31,1.5,14.53
Spot price,"The PRICE quoted for a transaction that is to be made on the spot, that is, paid for now for delivery now. Contrast spot markets with FORWARD CONTRACTS and futures markets, where payment and/or delivery will be made at some future date. Also contrast with long-term contracts, in which a price is agreed for repeated transactions over an extended time period and which may not involve immediate payment in full.",economist,1,56.29,11.2,12.5,10.62,13.3,8.18,14.33333333,13.32
Spread,The difference between one item and another. A much used term in FINANCIAL MARKETS. Examples are the differences between:,economist,1,56.62,6.9,10.5,9.97,7.3,8.1,3.833333333,8.84
Stabilisation,"GOVERNMENT policies intended to smooth the economic cycle, expanding DEMAND when UNEMPLOYMENT is high and reducing it when INFLATION threatens to increase. Doing this by FINE TUNING has mostly proved harder than KEYNESIAN policymakers expected, and it has become unfashionable. However, the use of automatic stabilisers remains widespread. For instance, social handouts from the state usually increase during tough times, and taxes increase (FISCAL DRAG), boosting government revenue, when the economy is growing.",economist,1,35.98,12.8,14.9,16.71,16.1,12.11,13.375,14.99
Stability and Growth Pact,"Budgetary rules agreed to by Euro Zone countries as a condition of joining the euro. The pact stipulates that all the countries will run a balanced budget in normal times. A government that runs a fiscal deficit bigger than 3% of GDP must take swift corrective action. And if any country breaches the 3% limit for more than three years in a row, it becomes liable to fines of billions of euros. The pact was supposed to be a powerful political symbol that euro-using countries would not cheat each other. However, Portugal became the first country to break the deficit limit by notching up 4.1% in 2001. When, in 2002, France and Germany also exceeded the 3% limit, some EU members were outraged and others lobbied for the pact to be modified or even scrapped.",economist,1,68.81,8.5,10.3,8.82,10.1,10.32,8.833333333,9.79
Stakeholders,"All the parties that have an interest, financial or otherwise, in a company, including shareholders, CREDITORS, bondholders, employees, customers, management, the community and GOVERNMENT. How these different interests should be catered for, and what to do when they conflict, is much debated. In particular, there is growing disagreement between those who argue that companies should be run primarily in the interests of their shareholders, in order to maximise shareholder value, and those who argue that the wishes of shareholders should sometimes be traded off against those of other stakeholders.",economist,1,32.87,16.1,19.3,15.62,20.5,9.72,22.83333333,19.52
Standard deviation,A measure of how far a variable moves over time away from its AVERAGE (mean) value.,economist,1,80.62,6,0,5.97,6.6,7.39,8,8.9
Standard error,A measure of the possible error in a statistical estimate.,economist,1,35.95,10.7,0,9.08,6.6,8.87,7,12
Statistical significance,"There are lies, damned lies and statistics, said Benjamin Disraeli, a British prime minister. Certainly, even if the result of number crunching is statistically significant, it does not actually mean it is true. But it does mean it is much more likely to be true than false. Statistical significance means that the PROBABILITY of getting that result by chance is low. The most commonly used measure of statistical significance is that there must be a 95% chance that the result is right and only a 1 in 20 chance of the result occurring randomly.",economist,1,60.85,9.4,12.7,9.98,10.7,8.26,12.2,12.2
Sterilised intervention,"When a GOVERNMENT or CENTRAL BANK buys or sells some of its RESERVES of foreign currency this can affect the country’s MONEY        SUPPLY. Selling reserves decreases the supply of the domestic currency; buying reserves increases the domestic money supply. Governments or central banks can sterilise (that is, cancel out) this effect of foreign exchange intervention on the money supply by buying or selling an equivalent amount of SECURITIES. For example, if the GOVERNMENT increases reserves by buying foreign currency the domestic money supply will increase, unless it sells securities such as TREASURY BILLS to mop up the extra DEMAND.",economist,1,29.38,15.3,14.9,13.7,16.3,9.17,16.625,13.56
Sticky prices,"Petrol-pump PRICES do not change every time the oil price changes, and holiday prices and standard hotel rates are fixed for months. Sticky prices are slow to change in response to changes in SUPPLY or DEMAND. As a result there is, at least temporarily, DISEQUILIBRIUM in the market. The causes of stickiness include MENU COSTS, inadequate information, consumers' dislike of frequent price changes and long-term contracts with fixed prices. Prices change only when the cost of leaving them unchanged exceeds the expense of adjusting them. In FINANCIAL MARKETS, prices move all the time because the cost of quoting the wrong price can be huge. In other industries, the penalty may be much less severe. Small disequilibria in, say, the pricing of hotel rooms will not make much difference. So hotel prices are often sticky.",economist,1,73.27,6.7,9.4,11.01,10.2,8.62,8.666666667,8.65
Stochastic process,"A process that exhibits random behaviour. For instance, Brownian motion, which is often used to describe changes in SHARE prices in an EFFICIENT MARKET (the RANDOM WALK), is a stochastic process.",economist,1,64.2,8.2,0,12,11.4,10.01,8.25,10.07
Stress-testing,A process for exploring how a portfolio of ASSETS and/or liabilities would fare in extreme adverse conditions. A useful tool in RISK MANAGEMENT.,economist,1,51.34,9,0,11.52,9.3,11.07,7.25,13.3
Structural adjustment,"A programme of policies designed to change the structure of an economy. Usually, the term refers to adjustment towards a market economy, under a programme approved by the IMF and/or WORLD BANK, which often supply structural adjustment funds to ease the pain of transition. Such policies are much criticised in the developing world, sometimes with good reason.",economist,1,52.19,10.7,12.5,12.76,13.1,9.29,12.16666667,11.81
Structural unemployment,"The hardest sort of UNEMPLOYMENT to cure because it is caused by the structure of an economy rather than by changes in the economic cycle. Contrast with cyclical unemployment, which can, in theory  if not always in practice, be cut without sparking INFLATION by stimulating faster economic GROWTH. Structural unemployment can be reduced only by changing the economic structures causing it, for instance, by removing rules that limit LABOUR MARKET FLEXIBILITY.",economist,1,38.96,13.7,14.6,14.05,16.1,11.04,15.83333333,13.99
Substitute goods,"Goods for which an increase (or fall) in DEMAND for one leads to a fall (or increase) in demand for the other – Coca-Cola and Pepsi, perhaps.",economist,1,60.99,11.5,0,6.22,12.1,8.48,14.5,10.8
Sunk costs,"When what is done cannot be undone. Sunk costs are costs that have been incurred and cannot be reversed, for example, spending on ADVERTISING or researching a product idea. They can be a barrier to entry. If potential entrants would have to incur similar costs, which would not be recoverable if the entry failed, they may be scared off.",economist,1,64.91,7.9,10.7,8.75,8.2,9.19,8.125,10.67
Supply curve,A graph of the relationship between the PRICE of a good and the amount supplied at different prices. (See also DEMAND CURVE.),economist,1,66.07,9.5,0,9.11,11.8,8.32,13,10.62
Supply-side policies,"Increasing economic GROWTH by making markets work more efficiently. In the 1980s, Ronald Reagan and Margaret Thatcher championed supply-side policies as they attacked KEYNESIAN         DEMAND management. Pumping up demand without making markets work better would simply lead to higher INFLATION; economic growth would increase only when markets were able to operate more freely. Thus they pursued policies of DEREGULATION, LIBERALISATION and PRIVATISATION and encouraged FREE TRADE. To reduce UNEMPLOYMENT, they tried to increase the EFFICIENCY of the jobs market by cutting the rate of INCOME TAX and attacking legal  and other impediments to LABOUR MARKET FLEXIBILITY. The results of these programmes are much debated. In particular, the belief, apparently supported by the LAFFER CURVE, that cutting tax rates would increase tax revenue did not always stand up well to real-world testing. Even so, it is now recognised that supply-side reforms are a crucial element in an effective economic policy.",economist,1,35.68,12.9,14,14.85,14.5,10.49,11.5,13.88
Sustainable growth,"A term much used by environmentalists, meaning economic GROWTH that can continue in the long term without non-renewable resources being used up or pollution becoming intolerable. Mainstream economists use the term, too, to describe a rate of growth that an economy can sustain indefinitely without causing a rise in INFLATION.",economist,1,29.18,15.4,0,14.45,17.2,10.25,18,18
Systematic risk,"The RISK that remains after DIVERSIFICATION, also known as market risk or undiversifiable risk. It is systematic risk that determines the RETURN earned on a well-diversified portfolio of ASSETS.",economist,1,31.38,12.5,0,14.55,12.8,9.8,10.25,14.08
Systemic risk,"The RISK of damage being done to the health of the FINANCIAL SYSTEM as a whole. A constant concern of BANK regulators is that the collapse of a single bank could bring down the entire financial system. This is why regulators often organise a rescue when a bank gets into financial difficulties. However, the expectation of such a rescue may create a MORAL HAZARD, encouraging banks to behave in ways that increase systemic risk. Another concern of regulators is that the ­RISK MANAGEMENT methods used by banks are so similar that they may increase systemic risk by creating a tendency for crowd behaviour. In particular, problems in one market may cause banks in general to liquidate positions in other markets, causing a vicious cycle of LIQUIDITY being withdrawn from the financial system as everybody rushes for the emergency exit at once. (See CAPITAL ASSET PRICING MODEL.)",economist,1,38.35,13.9,15,11.55,14.3,9.38,13.2,14.1
Tax arbitrage,"Creating FINANCIAL INSTRUMENTS or transactions that allow the parties involved to exploit loopholes in or differences between their tax exposures, so that all involved pay less tax.",economist,1,35.61,15,0,15.9,19.1,10.82,19.5,19.69
Tax avoidance,"Doing everything possible within the law to reduce your tax bill. Learned Hand, an American judge, once said: “There is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible … nobody owes any public duty to pay more than the law demands.” Contrast with TAX EVASION.",economist,1,53.55,12.3,0,9.46,13.6,8.57,16.5,11.94
Tax base,"The thing or amount to which a tax rate applies. To collect INCOME TAX, for example, you need a meaningful definition of INCOME. Definitions of the tax base can vary enormously, over time and among countries, especially when tax breaks are taken into account. As a result, a country with a comparatively high tax rate may not have a high TAX BURDEN if it has a more narrowly defined tax base than other countries. In recent years, the political unpopularity of high tax rates has lead many governments to lower rates and at the same time broaden the tax base, often leaving the tax burden unchanged.",economist,1,58.42,10.4,11.6,9.11,11.1,8.41,12.2,12.63
Tax burden,"Total tax paid in a period as a proportion of total INCOME in that period. It can refer to personal, corporate or national income.",economist,1,50.84,9.2,0,6.95,5.6,8.84,8,13.13
Tax competition,"Low-tax policies pursued by some countries in the hope of attracting international businesses and CAPITAL. Economists usually favour COMPETITION in any form. But some say that tax competition is often a beggar-thy-neighbour policy, which can reduce another country's TAX BASE, or force it to change its mix of taxes, or stop it taxing in the way it would like.",economist,1,51.48,11,14.1,11.43,12.5,9.16,13.5,12.63
Tax efficient,"From the point of view of the taxpayer, the way of undertaking an economic activity that results in the lowest (legitimate) tax bill.",economist,1,39.67,13.4,0,9.99,12.8,9.58,16.5,17.9
Tax evasion,"Paying less tax than you are legally obliged to. Contrast with TAX AVOIDANCE. There may be a thin line between the two, but as Denis Healey, a former British chancellor, once put it, “The difference between tax avoidance and tax evasion is the thickness of a prison wall.”",economist,1,80.62,6,7.8,8.76,8.7,8.38,7.666666667,7.23
Tax haven,"A country or designated zone that has low or no taxes, or highly secretive BANKS, and often a warm climate and sandy beaches, which make it attractive to foreigners bent on TAX AVOIDANCE or even TAX EVASION.",economist,1,42.38,16.5,0,9.47,18.8,10.59,22.5,19.12
Technical progress,"A crucial ingredient of economic GROWTH. Economists often used to take a certain rate of technological progress for granted, but in new ENDOGENOUS growth theory they make more effort to measure accurately and better understand what causes differences in the rate of technical change.",economist,1,40.69,13.1,0,13.98,15.2,10.11,16,16.98
Third way,"An economic philosophy espoused by some leftish political leaders in the late 20th century, including Bill Clinton and Tony Blair. According to the rhetoric, it is not CAPITALISM and not SOCIALISM, but a third (pragmatic) way. Many have therefore found it rather hard to pin down. It was earlier used to describe Sweden’s economic model.",economist,1,57.47,8.7,12.6,11.01,9.7,10.35,8.625,12.79
Tiger economies,"The fast-growing developing economies of Asia, at least before their crisis in the late 1990s.",economist,1,64.71,8,0,11.88,11.2,10.7,8.5,8.67
Time series,"Several measurements of a variable taken at regular intervals, such as daily, monthly, quarterly, and so on. They are often used by economists in search of trends that they hope will let them predict future movements in the variable.",economist,1,60.14,9.7,0,10.85,11.9,9.06,12.75,12.93
Time value of money,"The idea that a dollar today is worth more than a dollar in the future, because the dollar in the hand today can earn INTEREST during the time until the future dollar is received.",economist,1,53.89,14.2,0,7.9,15.8,6.72,18,14.78
"Tobin, James","A Nobel prize-winning economist, James Tobin (1918-2002) theorised that FIRMS would continue to invest as long as the value of their SHARES exceeded the replacement cost of their ASSETS. The ratio of the market value of a firm to the net REPLACEMENT COST of the firm's assets is known as 'Tobin's Q'. If Q is greater than 1, then it should pay the firm to expand, as the PROFIT it should expect to make from its assets (reflected in the share PRICE) exceeds the cost of the assets. If Q is less than 1, the firm would be better off selling its assets, which are worth more than shareholders currently expect the firm to earn in profit by retaining them.",economist,1,57.95,12.6,12.2,8.19,14.5,9.2,14.25,15
Trade,See FREE TRADE.,economist,1,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
Trade area,"In a globalising economy, it is perhaps surprising that countries increasingly trade with their nearest neighbours. One explanation is geography: as countries have lowered their TARIFF barriers, the relatively greater importance of transport costs makes proximity matter more. According to NEW TRADE THEORY, this also produces gains from ECONOMIES OF SCALE. But another reason for the fast growth in trade among nearby countries may be less benign. The proliferation of regional trade agreements may be causing neighbours to trade with each other when it would be more efficient for them to export to and import from afar.",economist,1,51.78,10.9,13.3,13.63,13.8,9.97,12.9,13.53
Trade cycle,See BUSINESS CYCLE.,economist,1,59.97,5.6,0,5.35,6.8,9.05,0.5,1.2
Trade deficit/surplus,An excess of IMPORTS over EXPORTS is a trade deficit. An excess of exports over imports is a trade surplus. (See BALANCE OF PAYMENTS.),economist,1,76.22,5.6,0,7.47,6.4,8.84,5,4.8
Trade unions,See UNIONS.,economist,1,120.21,-3.1,0,-4.51,3.1,11.63,0,0.8
Trade-weighted exchange rate,A country’s EXCHANGE RATE with the currencies of its trading partners weighted by the amount of trade done by the country in each currency.,economist,1,64.04,10.3,0,10.8,13.3,8.77,14,12.93
Tragedy of the commons,"A 19th-century amateur mathematician, William Forster Lloyd, modelled the fate of a common pasture shared among rational, UTILITY-maximising herdsmen. He showed that as the POPULATION increased the pasture would inevitably be destroyed. This tragedy may be the fate of all sorts of common resources, because no individual, firm or group has meaningful PROPERTY RIGHTS that would make them think twice about using so much of it that it is destroyed.",economist,1,47.83,12.4,13,13.58,15.7,11.33,14.66666667,15.03
Transaction costs,"The costs incurred during the process of buying or selling, on top of the PRICE of whatever is changing hands. If these costs can be reduced, the PRICE MECHANISM will operate more efficiently.",economist,1,63.19,8.5,0,9.86,9.7,10.2,10.25,11.45
Transfer pricing,"The PRICES assumed, for the purposes of calculating tax liability, to have been charged by one unit of a multinational company when selling to another (foreign) unit of the same firm. FIRMS spend a fortune on advisers to help them set their transfer prices so that they minimise their total tax bill. For instance, by charging low transfer prices from a unit based in a high-tax country that is selling to a unit in a low-tax country, a firm can record a low PROFIT in the first country and a high profit in the second. In theory, however, transfer prices are supposed to be set according to the arm's-length principle: that they should be the same as would be charged if the sale was to a business unconnected in any way to the selling firm. But when there is no genuinely independent market with which to compare transfer prices, what an arm's length price would be can be a matter of great debate and an opportunity for firms that want to lower their tax bill.",economist,1,52.87,14.6,13,8.77,17.3,8.17,14.75,16.74
Transfers,"Payments that are made without any good or service being received in return. Much PUBLIC SPENDING goes on transfers, such as pensions and WELFARE benefits. Private-sector transfers include charitable donations and prizes to lottery winners.",economist,1,51.14,9,9.7,14.83,12.1,10.98,6.166666667,8.11
Transition economies,"Former communist economies that, with varying degrees of enthusiasm, have embraced CAPITALISM.",economist,1,25.46,12.7,0,20.52,17.2,14.76,8,14.8
Transmission mechanism,The process by which changes in the MONEY SUPPLY affect the level of total DEMAND in an economy.,economist,1,70.13,8,0,7.54,8.2,10.67,9,9.42
Treasury bills,A form of short-term GOVERNMENT         DEBT. Treasury bills usually mature after three months. They are used for managing fluctuations in the government’s short-run cash needs. Most government borrowing takes the form of longer-term BONDS.,economist,1,37.47,10.1,10.7,13.42,10.4,10.56,5,9.28
Uncertainty,See information.,economist,1,-6.7,14.7,0,10,14.9,11.63,1,20.8
Underground economy,See BLACK ECONOMY.,economist,1,59.97,5.6,0,3.43,5.2,9.05,1.5,14.53
Unemployment trap,"When unemployed people who receive benefits, either from the GOVERNMENT or from private CHARITY, are deterred from taking a new job because the reduction or removal of benefit if they do will make them worse off. Also known as the POVERTY TRAP, it can be addressed, to an extent, by continuing to pay benefit for a while to unemployed people returning to work. (See WELFARE TO WORK.)",economist,1,45.93,15.2,0,9.88,17.6,8.6,21.75,17.58
Unions,"In developed countries, at least, trade union membership and influence has declined over the past three decades. Fewer WAGES are now set by collective bargaining, and far fewer working days are lost to strikes. Unions, which are in effect a CARTEL of workers, probably make UNEMPLOYMENT higher than it would be without them, as collective bargaining often pushes wages above the level that would bring LABOUR SUPPLY and DEMAND into EQUILIBRIUM. These higher wages increase supply and reduce demand, with the result that there are more jobless people. Unions thus deepen a conflict between those in the labour market who are insiders, that is, union members, and those who are outsiders, typically non-unionised, poorly paid or jobless people. However, unions can combat the excessive market power of some FIRMS, particularly when the firms (or a GOVERNMENT) dominate a particular job market. They can support workers who are badly treated by management. They may sometimes provide an efficient, and thus valuable, channel for communication between workers and managers, particularly in countries such as Germany, where conflict between management and unions is viewed as unhealthy.",economist,1,48.23,12.2,12.8,13.76,15.7,9.69,12,12.88
Value at risk,"Value at risk models, widely used for RISK MANAGEMENT by BANKS and other financial institutions, use complex computer algorithms to calculate the maximum that the institution could lose in a single day's trading. These models seem to work well in normal conditions but not, alas, during financial crises, which is arguably when it is most necessary to know how much value is at RISK.",economist,1,39,15.8,0,11.62,18.1,10.4,21.5,19.05
Variable costs,"Part of a firm’s production costs that changes according to how much OUTPUT it produces. Contrast with FIXED COSTS. Examples include some purchases of raw materials and workers’ overtime payments. In the long run, most costs can be varied.",economist,1,69.99,5.9,10.1,10.41,7.7,11.01,5.375,10.07
Velocity of circulation,"The speed with which MONEY whizzes around the economy, or, put another way, the number of times it changes hands. Technically, it is measured as GNP divided by the MONEY SUPPLY (pick your own definition). It is an important ingredient of the QUANTITY THEORY OF MONEY.",economist,1,55.95,9.3,13,8.98,9,9.2,10.66666667,12.21
Venture capital,"PRIVATE EQUITY to help new companies grow. A valuable alternative source of finance for ENTREPRENEURS, who might otherwise have to rely on a loan from a probably RISK AVERSE bank manager. The United States has by far the world's biggest venture capital industry. Some economists reckon that this is why more innovative new firms have become successful there. As legend has it, with a bright idea, a garage to work in and some venture capital, anybody can create a Microsoft. However, the bursting of the dotcom bubble in 2000 threw American venture capital into a severe recession, damaging its reputation for financing profitable innovation.",economist,1,53.92,10,13.8,11.77,11.6,9.5,11.5,12.3
Visible trade,"Physical EXPORTS and IMPORTS, such as coal, computer chips and cars. Also known as merchandise trade. Contrast with INVISIBLE TRADE. (See BALANCE OF PAYMENTS.)",economist,1,63.36,6.4,9.7,11.27,9.3,11.27,4.333333333,9.87
Voluntary unemployment,"Unemployment through opting not to work, even though there are jobs available. This is the joblessness that remains when there is otherwise FULL EMPLOYMENT. It includes FRICTIONAL UNEMPLOYMENT as a result of people changing jobs, people not working while they undertake JOB SEARCH and ­people who just do not want to work.",economist,1,62.38,8.9,11.9,12.12,11.8,8.44,11,10.77
Wage drift,"The difference between basic pay and total earnings. Wage drift consists of things such as overtime payments, bonuses, PROFIT share and performance-related pay. It usually increases during periods of strong GROWTH and declines during an economic downturn.",economist,1,50.53,9.3,11.2,15.24,12.6,12.35,7.166666667,11.41
Wages,"The PRICE of LABOUR. In theory, wages ought to change so that the SUPPLY and DEMAND in the labour market are always in EQUILIBRIUM. In practice, wages are often sticky, especially in a downward direction: when demand for labour falls, wages do not fall. In this situation, the fall in demand results in higher involuntary UNEMPLOYMENT. Trade UNIONS may use collective bargaining to keep wages above the market-clearing rate. Furthermore, many governments impose a MINIMUM WAGE that employers must pay.",economist,1,57.98,8.5,11.9,11.41,10.1,9.23,8,11.32
Wealth effect,"As people get wealthier, they consume more. This wealth effect has important consequences for MONETARY POLICY. When there is an INTEREST RATE increase, future INCOME from ASSETS such as EQUITIES must be discounted at a higher rate than before. As a result their owners feel poorer and spend less. A cut in interest rates has the opposite effect. Economists disagree on the wealth ELASTICITY of CONSUMPTION: how much consumer spending would rise if wealth increased by, say, 1%. Different consumers may have different wealth elasticity. If most of the increase in wealth goes to poorer people this may have a different wealth effect than if most of it went to people who are already wealthy. The source of the wealth increase may also matter. If SHARE         PRICES rise or interest rates fall, consumers may be slow to spend out of their increased wealth if they think the increase may be temporary. However, if they think a sharp rise in share prices is permanent and the stockmarket then tumbles, the result may be that consumption falls by enough to cause a RECESSION. The wealth effect of rising HOUSE PRICES is particularly uncertain.",economist,1,63.8,8.3,11.5,10.38,9.8,7.57,7.25,9.92
Wealth tax,"In most countries, the majority of wealth is concentrated in a fairly small number of hands. This makes a wealth tax appealing to politicians, as it should allow substantial amounts of revenue to be raised from comparatively few people, allowing the TAX BURDEN on the majority of the POPULATION to be kept down. It also appeals because it promotes meritocracy by making it harder to be born with a silver spoon in your mouth. A wealth tax reduces the disparities in wealth rather than INCOME that are the biggest determinant of how the scales are weighted for succeeding generations. What could be better than a tax that produces lots of money for the GOVERNMENT and strikes most voters as being extremely fair?",economist,1,55.17,11.6,13,10.68,13.6,8.99,15.75,14.02
Weightless economy,"At the start of the 21st century, the total OUTPUT of the American economy weighed roughly the same as it did 100 years earlier. Yet the value of that output, in REAL TERMS, was 20 times greater. Output is increasingly weightless, produced from INTELLECTUAL CAPITAL rather than physical materials. Production has shifted from steel, heavy copper wire and vacuum tubes to microprocessors, fine fibre-optic cables and transistors. SERVICES have increased their share of GDP. This weightless or dematerialised economy, most economists agree, is not just lighter but also more efficient.",economist,1,47.79,10.3,13,12.98,11.9,10.7,10.5,12.22
Welfare economics,Economics with a heart. The study of how different forms of economic activity and different methods of allocating scarce resources affect the well being of different individuals or countries. WELFARE economics focuses on questions about EQUITY as well as EFFICIENCY.,economist,1,32.6,12,14.6,14.31,12,10.61,10.66666667,13.32
Welfare to work,"Active LABOUR market policies, in which GOVERNMENT handouts to the unemployed come with strings attached, designed to get the recipient off welfare and back to work as quickly as possible.",economist,1,41.03,15,0,13.47,18.5,10.39,19,14.67
Windfall gains,"INCOME you do not expect, such as winning a lottery prize. Economists have long argued about whether people are likely to save such windfalls or spend them. According to the PERMANENT INCOME HYPOTHESIS, favoured by most economists, people save the lion's share of windfall gains. But real life often contradicts this; ask any lottery winner.",economist,1,65.93,7.5,10.1,11.42,10,8.34,7.375,9.16
Windfall profit,"A controversial concept, often used by politicians to justify imposing a TAX on PROFIT that in theory is earned unexpectedly, through circumstances beyond the control of the company concerned, and is thus deemed undeserved and ripe for the taking by the tax authorities. As the profits were neither expected nor a result of the efforts of the firm, taxing them should not harm the firm's incentives to maximise future profits. The problem comes when greedy politicians start claiming that profits are windfalls when in fact they are deserved and expected. Then taxing them sends a signal to FIRMS that they should not try too hard to make profits, as if they do too well they will not get to keep the profits anyway. If this became widely believed, effort would probably decline and economic GROWTH would be slower.",economist,1,51.92,12.9,12.7,11.03,15.5,10.04,15.5,14.52
Winner-takes-all markets,"No time for losers. In certain jobs, the market pays  individuals not according to their absolute performance but according to their performance relative to others. The INCOME of window cleaners depends upon how many windows they clean, but investment bankers' pay may depend upon their performance ranking. Slightly more talented window cleaners will make only a small difference to the transparency of their customers' windows, but in the markets for selling BONDS that slight edge can mean everything. Rewards at the top are therefore disproportionately high, and rewards below the top are disproportionately low. People in these professions are often willing to work for very little just to have the chance to compete for the top job and the jackpot that comes with it.",economist,1,50.46,11.4,12.5,12.53,13.5,8.48,11,11.51
Withholding tax,"A tax that is collected at source, before the taxpayer has seen the INCOME or CAPITAL to which the tax applies. In other words, that part of the income or capital due in tax is withheld from the taxpayer, who therefore cannot easily avoid paying the tax. Withholding taxes are frequently imposed on INTEREST and DIVIDENDS.",economist,1,52.49,10.6,13.6,9.75,10.4,9.08,12.66666667,12.48
World Trade Organisation,"Bête noire of anti-globalisation protesters. The World Trade Organisation is the governing body of international trade, setting and enforcing the rules of trade and punishing offenders. Established during the Uruguay Round of talks under the GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT), it opened for business in 1995 with a membership of 132 countries (rising to 146 by 2003). Countries used to break GATT rules with impunity. They seem to be finding it harder to do so under the WTO. Even so, protestors complain that it does not promote fair trade but does promote the interest of rich countries over poorer one. Supporters of free trade, including The Economist, reckon that all countries are better off as part of a well-regulated international trading system, and that the WTO is the most likely source of the good regulation that is needed.",economist,1,59.64,9.9,12.8,11.37,12.4,9.59,10.66666667,13.14
X-efficiency,"Producing OUTPUT at the minimum possible cost. This is not enough to ensure the best sort of economic EFFICIENCY, which maximises society's total CONSUMER plus PRODUCER SURPLUS, because the quantity of output produced may not be ideal. For instance, a MONOPOLY can be an X-efficient producer, but in order to maximise its PROFIT it may produce a different quantity of output than there would be in a surplus-maximising market with PERFECT COMPETITION.",economist,1,38.66,13.8,16.3,12.83,15.4,10.31,17.33333333,16.27
Yield curve,"Shorthand for comparisons of the INTEREST RATE on GOVERNMENT _x0001__x0001__x0001__x0001__x0001__x0001__x0001__x0001_BONDS of different maturity. If investors think it is riskier to buy a bond with 15 years until it matures than a bond with five years of life, they will demand a higher interest rate (YIELD) on the longer-dated bond. If so, the yield curve will slope upwards from left (the shorter maturities) to right. It is normal for the yield curve to be positive (upward sloping, left to right) simply because investors normally demand compensation for the added RISK of holding longer-term SECURITIES. Historically, a downward-sloping (or inverted) yield curve has been an indicator of RECESSION on the horizon, or, at least, that investors expect the CENTRAL BANK to cut short-term interest rates in the near future. A flat yield curve means that investors are indifferent to maturity risk, but this is unusual. When the yield curve as a whole moves higher, it means that investors are more worried that INFLATION will rise for the foreseeable future and therefore that higher interest rates will be needed. When the whole curve moves lower, it means that investors have a rosier inflationary outlook.",economist,1,55.68,11.4,13.2,12.6,15.7,9.04,13,13.12
Yield gap,"A way of comparing the performance of BONDS and SHARES. The gap is defined as the AVERAGE         YIELD on equities minus the average yield on  bonds. Because shares are usually riskier investments than bonds, you might expect them to have a higher yield. In practice, the yield gap is often negative, with bonds yielding more than equities. This is not because investors regard equities as safer than bonds (see EQUITY RISK PREMIUM). Rather, it is that they expect most of the benefit from buying shares to come from an increase in their PRICE (CAPITAL appreciation) rather than from DIVIDEND payments. Bond investors usually expect more of their gains to come from coupon payments. They also worry that INFLATION will erode the REAL VALUE of future coupons, making them value current payments more highly than those due in years to come. Moreover, the usefulness of the dividend yield as a guide to the performance of shares has declined since the early 1990s, as increasingly companies have chosen to return cash to shareholders by buying back their own shares rather than paying out bigger dividends.",economist,1,59.33,10,12.7,11.02,12.2,8.79,11,12.05
Zero-sum game,"When the gains made by winners in an economic transaction equal the losses suffered by the losers. It is identified as a special case in GAME THEORY. Most economic transactions are in some sense positive-sum games. But in popular discussion of economic issues, there are often examples of a mistaken zero-sum mentality, such as “PROFIT comes at the expense of WAGES”, “higher PRODUCTIVITY means fewer jobs”, and “IMPORTS mean fewer jobs here”.",economist,1,53.21,10.3,14.2,11.6,11.9,10.89,12.75,13.87
Adjustable-rate mortgage (ARM),A mortgage that permits the lender to periodically adjust the interest rate on the basis of changes in a specified index.,6_8_louis,1,41.7,12.7,0,10.33,11.7,12.2,13.5,14.11
Adjusted gross income,Gross income minus specific adjustments.,6_8_louis,1,15.64,12.3,0,18.88,15,16.52,3.5,18
Allocation,"Ways in which to distribute goods, services or resources.",6_8_louis,1,79.26,4.4,0,11.22,8.7,11.1,4.5,8.04
Alt-A (Alternative A) mortgage,"A non-standard mortgage owed by a borrower characterized by a strong credit history but with fewer traditional features—for example, reduced documentation, low down payment, or non-owner occupier.",6_8_louis,1,1.77,19.7,0,18.22,21.7,13.16,22.5,19.69
Alternatives,The different possibilities to choose from in a given situation.,6_8_louis,1,27.49,11.9,0,12.56,9.5,7.29,7,12
Annual percentage rate (APR),The percentage cost of credit on an annual basis and the total cost of credit to the consumer. APR combines the interest paid over the life of the loan and all fees that are paid up front.,6_8_louis,1,78.08,7,0,6.21,7.2,8.82,10.75,10.64
Appropriation act,A law allowing federal programs or agencies to borrow money and make payments from the Treasury. Congress considers regular appropriation acts annually. These acts fund federal government operations for the coming fiscal year.,6_8_louis,1,34.93,11.1,13,15.12,11.8,10.88,7.5,12.88
Appropriations,Legal authority provided by Congress to federal agencies to spend funds from the U.S. Treasury.,6_8_louis,1,47.79,10.3,0,12.29,11.5,14.91,10.5,14
Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF),"A Federal Reserve lending facility that provides funding to U.S. depository institutions and bank holding companies to finance their purchases of high-quality asset-backed commercial paper (ABCP) from money market mutual funds under certain conditions. The AMLF was closed on February 1, 2010.",6_8_louis,1,16.32,16.2,0,16.3,17.3,14.45,16.5,17.92
Asset-backed commercial paper (ABCP),"Short-term debt that is typically limited to a fixed maturity of between 1 and 270 days. The proceeds of ABCP issuance are used primarily to purchase various assets, such as trade receivables, consumer debt receivables, auto and equipment loan leases, and collateralized debt obligations. (See also: Commercial paper.)",6_8_louis,1,30.2,15,0,14.45,17.2,12.06,17,17.1
Asset-backed security (ABS),"In general, a money or capital market instrument, usually marketable (that is, transferable to third-parties in market transactions), that has specific financial assets generating the cash flow from which the instrument will be paid. (See also: Commercial mortgage-backed security and Residential mortgage-backed security.)",6_8_louis,1,-6.02,24.8,0,19.63,30.8,11.28,38.5,26.5
Auction,A sale of property to the highest bidder.,6_8_louis,1,71.82,5.2,0,4.31,2.6,9.95,4,8.2
Automated teller machine (ATM) card,A form of debit card used in a cash machine to access an account by using a code or personal identification number.,6_8_louis,1,57.61,10.7,0,7.25,9.7,9.03,13,12.44
Automatic stabilizers,"A standing policy that activates automatically without intervention, usually during a recession.",6_8_louis,1,-25.31,19.8,0,21.97,17.9,13.44,12,24.8
Automatic transfer,An online payment that is automatically deducted from the account balance on a recurring basis.,6_8_louis,1,30.87,12.7,0,13.04,11.5,10.7,10.5,14
Automation,"Automatically controlled operation of an apparatus, process, or system by mechanical or electronic devices that take the place of human labor.",6_8_louis,1,16.32,16.2,0,15.61,16.4,12.95,15.5,17.92
Bank account register,A tool in which an account holder lists his or her initial balance in an account and then records all debits and credits in order to maintain an accurate record of account activity and an accurate balance.,6_8_louis,1,42.38,16.5,0,9.64,18.6,9.31,21.5,16.96
Bank failure,Occurs when banks are unable to meet depositors' demands for their money.,6_8_louis,1,59.3,8,0,10.83,8.9,10.81,6,8.13
Bank holding company,"A company that owns, or has controlling interest in, one or more banks. The Federal Reserve is responsible for regulating and supervising bank holding companies, even if the bank owned by the holding company is under the primary supervision of a different federal agency.",6_8_louis,1,32.22,14.2,0,12.13,14,10.11,17.5,16.98
Bank panic,"Occurs when a bank run begins at one bank and spreads to others, causing people to lose confidence in banks.",6_8_louis,1,68.1,8.7,0,7.95,9.5,10.16,11,10
Bank run,Occurs when many depositors rush to the bank to withdraw their money at the same time.,6_8_louis,1,72.16,7.2,0,7.83,7.5,7.39,8,8.9
Bankruptcy trustee,"An independent person appointed to administer a bankruptcy case, collect assets, and pay creditors.",6_8_louis,1,14.97,14.7,0,16.52,14.5,12.23,12,19.89
Banks,Businesses that accept deposits and make loans.,6_8_louis,1,64.37,6,0,13.17,9.7,10.75,3.5,8.51
Bank statement,A statement given to account holders by a bank or credit union to keep them informed of all transactions they made during the statement period. These statements are sent on a regular basis or posted online.,6_8_louis,1,61.67,9.1,0,9.63,9.9,9.79,10.5,10.53
Benefits,Things favorable to a decision maker; rewards gained from an action/activity.,6_8_louis,1,26.47,12.3,0,15.29,12.8,15.67,7.5,15.31
Boom,"A period characterized by sustained increases in several economic indicators—for example, output, investment, and employment.",6_8_louis,1,-19.9,19.8,0,23.48,20.9,14.91,16.5,27.33
Borrowing,Taking money with a promise to repay the money in the future.,6_8_louis,1,67.76,6.8,0,5.5,4.2,5.55,5,4.8
Boycott,A method of protest where people show a business that they are angry by refusing to buy the goods or services it produces.,6_8_louis,1,73.51,8.7,0,7.96,10.6,8.21,12.5,10.94
Budget deficit,Government expenditures exceed revenues.,6_8_louis,1,-34.11,19,0,29,24.1,15.68,3,11.6
Budget functions,"A spending classifications system used for federal budgeting that identifies a specific national need (e.g., national defense or health); includes sub functions.",6_8_louis,1,15.31,16.6,0,17.81,19.5,14.06,18,19.71
Budget surplus,"Government collections (taxes and fees) exceed government spending (expenditures) for a given period, usually a fiscal year.",6_8_louis,1,11.92,15.8,0,17.22,17,12.84,14.5,16.21
Capital (financial),The funds invested in a bank that are available to absorb loan losses or other problems and therefore protect depositors. Capital includes all equity and some types of debt. Bank regulators have developed two definitions of capital for supervisory purposes: Tier 1 capital can absorb losses while a bank continues operating. Tier 2 capital may be of limited life and may carry an interest obligation or other characteristics of a debt obligation; therefore it provides less protection to depositors than tier 1 capital.,6_8_louis,1,33.44,13.8,16.5,12.82,13.8,9.99,15.875,15.55
Capital investment,"The purchase of physical capital goods (e.g., buildings, tools and equipment) that are used to produce goods and services.",6_8_louis,1,60.65,9.5,0,12.36,13.8,12.06,11.5,9.71
Capital ratio (banking system),Total assets minus total liabilities as a percentage of total assets.,6_8_louis,1,18.01,13.5,0,12.1,9.3,11.36,6.5,11.67
Capital resources,Goods that have been produced and are used to produce other goods and services. They are used over and over again in the production process. Also called capital goods and physical capital.,6_8_louis,1,77.53,5.1,9.7,9.43,7,7.62,5.666666667,6.78
Cash advance,"A short-term loan from a bank or alternative lender that features fast approval and quick funding, but it often comes with higher fees than other options.",6_8_louis,1,62.01,11.1,0,11.15,14.9,10.39,14,11.94
Cash flow,"Income (dollars coming in, usually from working) minus expenses (dollars going out, usually to buy goods and services).",6_8_louis,1,36.28,12.7,0,13.05,14.3,9.79,12,11.64
Certificate of deposit (CD),A savings alternative in which money is left on deposit for a stated period of time to earn a specific interest rate.,6_8_louis,1,49.15,11.9,0,7.78,10.1,8.32,15,16.07
Chained 2012 dollars,A dollar measure that is adjusted for price changes occurring since 2012; measuring expenditures in chained dollars allows comparison of dollar amounts from different years.,6_8_louis,1,29.18,15.4,0,17.12,19.1,12.46,18.5,18
Chapter 11 bankruptcy protection,"The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. Business owners and individuals can also seek relief in Chapter 11.",6_8_louis,1,30.16,13,15,14.27,12.9,10.13,12.16666667,15.64
Chapter 7,A type of bankruptcy that requires individuals unable to pay their debts to sell his or her assets to pay creditors. Also known as “liquidation” or “straight” bankruptcy.,6_8_louis,1,57.27,8.8,0,11.36,9.6,9.41,8.5,11.31
Character,A borrower's reputation for paying bills and debts based on past behavior.,6_8_louis,1,50.84,9.2,0,11.3,9.3,13.44,8,14.8
Characteristics of money,"Important features money should have. Money should be portable, durable, divisible, generally acceptable, relatively scarce, and uniform.",6_8_louis,1,20.55,12.5,0,19.57,16.4,11.49,6.25,15.16
Checkable deposits,Deposits in accounts against which checks can be written.,6_8_louis,1,87.72,3.3,0,11.86,8.7,9.35,3.5,3.6
Check-cashing services,"Businesses that provide services such as cashing all types of checks, including payroll, insurance, tax refund, settlement, and government and Social Security payments. These businesses may also provide other services, such as payday loans, money orders, and money wires.",6_8_louis,1,34.76,13.3,0,15.9,16.4,11.49,13.25,11.9
Checking account,An account held at a bank or credit union in which account owners deposit funds. Account owners have the privilege of writing checks on their accounts and are able to use ATM cards and debit cards to access funds.,6_8_louis,1,77.06,7.4,0,8.47,9.5,9.06,10.25,8.83
Choice,A decision made between two or more possibilities or alternatives.,6_8_louis,1,27.49,11.9,0,13.72,10.4,8.87,7,16
Clearing banks,"Financial institutions that clear trades in government securities, agency securities, and other money market instruments for non-bank dealers.",6_8_louis,1,2.44,17.4,0,21.4,20.3,11.55,15,16.09
Coin,"Money, usually minted from some combination of metals.",6_8_louis,1,29.52,11.1,0,13.01,10.3,11.93,5,13.2
Coincidence of wants,Each participant in an exchange is willing to trade what he or she has in exchange for what the other participant is willing to trade.,6_8_louis,1,63.02,10.7,0,8.3,11.8,1.87,14.5,11.6
Collateralized obligations (CDO),Collateralized debt obligation: A security that represents a claim on cash flows generated by a pool of debt obligations.,6_8_louis,1,35.27,13.1,0,13.58,13.6,12.06,15.5,20.23
Collateralized loan obligation (CLO): A security that represents a claim on cash flows generated by a pool of loans.,Collateralized mortgage obligation (CMO): A security that represents a claim on cash flows generated by a pool of mortgages.,6_8_louis,1,35.27,13.1,0,13.87,14.4,12.89,14.5,18.13
Collections (government),Government income from taxes imposed on businesses and individuals and fees assessed on activities and services provided by the government.,6_8_louis,1,17.34,15.8,0,17.23,16.8,11.73,16,16
Collision insurance,Vehicle insurance that provides coverage for repair or replacement when damage is due to an accident with another vehicle or object.,6_8_louis,1,24.78,15,0,13.4,14.2,9.19,17.5,16.02
Commercial Paper Funding Facility (CPFF),"A Federal Reserve lending facility designed to provide a liquidity backstop to U.S. issuers of commercial paper. The CPFF is intended to improve liquidity in short-term funding markets and thereby contribute to greater availability of credit for businesses and households. The CPFF was discontinued February 1, 2010.",6_8_louis,1,30.16,13,14.1,14.9,13.4,13.15,11.5,13.94
Commercial mortgage-backed security (CMBS),A security that relies for payment on cash flows generated by a pool of commercial mortgage debt obligations. (See also: Asset-backed security and Residential mortgage-backed security),6_8_louis,1,11.25,18.2,0,17.12,20.4,11.61,22,18.09
Competitive markets,Markets in which there are many buyers and many sellers so that each has a negligible impact on market prices.,6_8_louis,1,68.1,8.7,0,8.82,10,9.37,11,10
Comprehensive insurance,Vehicle insurance that provides coverage for theft or damage that is not from a collision.,6_8_louis,1,47.79,10.3,0,11.13,9.9,10.7,11.5,16.67
Congress,"The legislative body of the U.S. government, consisting of the Senate and the House of Representatives.",6_8_louis,1,46.78,10.7,0,12.87,12.5,10.35,12,13.9
Consequences,The results of an action. They can be intended or unintended.,6_8_louis,1,65.89,5.4,0,4.68,3.2,9.65,2.75,9.47
Conservatorship,"A conservatorship is the legal process (for entities that are not eligible for Bankruptcy Court reorganization) in which a person or entity is appointed to establish control and oversight of a company to put it in a sound and solvent condition. In a conservatorship, the powers of the company’s directors, officers, and shareholders are transferred to the designated conservator.",6_8_louis,1,16.15,18.3,0,14.17,18.9,10.99,23.25,21.97
Consumer goods,Goods and services that are used for current consumption.,6_8_louis,1,79.26,4.4,0,11.86,8.7,9.35,4.5,8.04
Consumer price index (CPI),A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.,6_8_louis,1,64.04,10.3,0,8.88,11.8,8.77,13,11.27
Consumers,People who buy goods and services to satisfy their wants.,6_8_louis,1,78.25,4.8,0,8.5,6.2,8.87,5,8
Consumer sovereignty,The ability to influence what is produced and consumed in an economy through consumption activities.,6_8_louis,1,30.87,12.7,0,15.01,13.1,11.75,12.5,19.33
Core Consumer Price Index,The consumer price index (CPI) excluding food and energy.,6_8_louis,1,53.88,8,0,10.58,8.7,12.86,5.5,12.49
Core inflation,See Core Consumer Price Index.,6_8_louis,1,83.32,2.9,0,7.28,5.6,13.36,1.5,2
Costs,Things unfavorable to a decisionmaker.,6_8_louis,1,-1.29,14.7,0,16.56,13.1,13.36,3.5,18
Coupon (of bonds),The regular payments received by the buyer of a bond.,6_8_louis,1,69.79,6,0,6.18,4.3,12.03,5,8
Credit card,"Cards that represent an agreement between a lender—the institution issuing the card—and the cardholder. Credit cards may be used repeatedly to buy products or services or to borrow money on credit. Credit cards are issued by banks, savings and loan associations, retail stores, and other businesses.",6_8_louis,1,47.49,10.4,11.9,13.39,12.2,10.23,9,12.21
Credit counseling service,A service for consumers with credit problems; offers counseling about how to work out debt obligations.,6_8_louis,1,55.24,9.5,0,13.63,12.5,11.34,9,11.4
Credit default swap (CDS),"A type of derivative that allows a buyer to hedge against default of a counterparty. A CDS buyer agrees to pay a counterparty (the seller) a periodic premium in return for insurance against a “credit event” such as a default on a specified, underlying obligation.",6_8_louis,1,40.18,13.2,0,10.62,12.8,11.07,15.75,16.11
Credit history,A person's payment activity over a period of time.,6_8_louis,1,45.42,9.2,0,6.7,5.1,9.35,5.5,12.49
Credit rating agencies,"Firms that rate the quality of bonds and other financial securities. These ratings are used by investors to assess the probability of default. Well-known rating agencies include Moody’s, Standard & Poor’s, and Fitch Ratings. Firms in this business must meet standards enforced by the Securities and Exchange Commission.",6_8_louis,1,51.04,9.1,10.1,14.13,11.7,10.94,6.5,8.98
Credit report,A loan and bill payment history kept by a credit bureau and used by financial institutions and other potential creditors to determine the likelihood that a future debt will be repaid.,6_8_louis,1,31.55,16.6,0,11.73,17.3,10.78,22.5,20.14
Credit reporting bureau,An organization that compiles credit information on individuals and businesses and makes it available to businesses for a fee.,6_8_louis,1,26.81,14.2,0,15.37,14.8,12.06,14.5,16.02
Credit responsibilities,Refers to the actions or behaviors in which people should engage when they use credit.,6_8_louis,1,73.17,6.8,0,9.56,8.7,9.64,7.5,8.67
Credit rights,Refers to the protections put in place by law to help people obtain and maintain credit.,6_8_louis,1,72.16,7.2,0,8.52,8,9.36,8,8.9
Credits,"Additions or deposits to an account. In a bank account register, credits are added to the balance.",6_8_louis,1,71.31,5.4,0,7.62,5.5,9.63,4.25,8.11
Credit score,"A number based on information in a credit report, which indicates a person's credit risk.",6_8_louis,1,47.79,10.3,0,9.97,9.6,10.7,8.5,11.33
Credit union,A nonprofit financial institution that is owned by its members.,6_8_louis,1,44.41,9.6,0,11.98,9,12.03,7,16
Criteria,A set of standards to consider when choosing among alternatives.,6_8_louis,1,52.87,8.4,0,12.56,9.5,10.45,6,12
Debit card,A plastic card similar to a credit card that allows money to be withdrawn or payments made directly from the holder's bank account.,6_8_louis,1,56.59,11.1,0,9.99,12.4,10.27,13.5,12.68
Debits,"Charges to or withdrawals from an account. In a bank account register, debits are subtracted from the balance.",6_8_louis,1,70.8,5.6,0,9.94,7.4,9.35,4.5,8.04
Decisionmaking,Deciding among choices (alternatives or options).,6_8_louis,1,14.63,12.7,0,18.78,16.1,14.46,4,15.73
Decisionmaking grid,A table used to evaluate alternatives based on criteria for the purpose of making a decision.,6_8_louis,1,38.32,11.9,0,10.32,9.6,10.35,12,16.4
Defined-benefit retirement funds,Money for retirement maintained by the government for government employees.,6_8_louis,1,27.49,11.9,0,18.94,14.7,8.87,8,12
Demographic data,"Statistical data about the characteristics of a population. Examples include age, gender, and income of the people within a population.",6_8_louis,1,19.03,13.1,0,13.72,10.9,10.45,6.5,12
Depository institution,"A financial institution such as a savings bank, commercial bank, savings and loan association, or credit union that is legally allowed to accept monetary deposits from consumers.",6_8_louis,1,27.15,16.2,0,14.8,18.6,11.41,18.5,18.21
Determinants of demand,"Factors that cause the demand curve to shift, such as changes in consumer income, consumer tastes and preferences, prices of related goods, number of buyers in the market, and consumer expectations.",6_8_louis,1,48.47,14.2,0,13.65,19.6,10.78,18.5,16.27
Determinants of supply,"Factors that cause the supply curve to shift, such as changes in input prices, taxes or subsidies, technology, producer expectations, and the number of sellers.",6_8_louis,1,46.1,13,0,13.18,16.7,12.46,16.5,16.4
Direct deposit,An electronic transaction in which money is deposited directly into a payee's bank account from a payer's bank account.,6_8_louis,1,43.73,11.9,0,12.65,13.1,9.57,13.5,16.02
Dischargeable debt,Debts (liabilities) that can be eliminated (wiped out) through a bankruptcy proceeding.,6_8_louis,1,33.92,11.5,0,16.17,14.4,12.13,9,18.13
Discouraged worker,Someone who is not working and is not looking for work because of a belief that there are no jobs available to him or her.,6_8_louis,1,79.94,8.3,0,5.52,9.5,8.03,12.5,10
Disposable income,The amount of a person's paycheck that is available to spend or save.,6_8_louis,1,92.12,3.6,0,6.37,5.7,7.93,5.5,5.2
Divisible,Easily divided into smaller amounts.,6_8_louis,1,15.64,12.3,0,14.24,11.2,16.52,3.5,18
Division of labor,"An approach to completing a complex task that breaks the project into a number of smaller, simpler tasks, which are assigned to individuals who generally perform only these duties.",6_8_louis,1,33.58,15.8,0,13.12,17.8,12.15,17.5,15.74
Down payment,A sum of money put toward the purchase price to reduce the amount of money borrowed.,6_8_louis,1,72.16,7.2,0,7.07,6.9,7.39,7,6.4
Durable,Something that is long lasting.,6_8_louis,1,83.32,2.9,0,8.44,6.5,7.04,1.5,2
Economic equality,A more equal distribution of goods and services to citizens. Also known as economic equity.,6_8_louis,1,55.4,7.4,0,9.35,6.5,9.27,4.75,13.67
Economic equity,A more equal distribution of goods and services to citizens. Also known as economic equality.,6_8_louis,1,55.4,7.4,0,10.11,7.1,9.27,4.75,13.67
Economic growth,A sustained rise over time in a nation's production of goods and services.,6_8_louis,1,75.2,6,0,8.63,7.5,9.14,6.5,8.28
Economic wants,Desires that can be satisfied by consuming goods and services. Also known as wants.,6_8_louis,1,72.83,4.8,0,8.24,5.6,9.62,3.5,8.51
Educational attainment,"Highest level of education a student completes (high school, college, graduate).",6_8_louis,1,34.93,11.1,0,15.81,14,11.36,6.5,11.67
Elements of a contract,"Competent parties, consideration, and mutual agreement are the elements of a contract that must be present to make the contract legal and enforceable. Competent parties are individuals involved in a contract who must be able to understand the conditions of the contract. Consideration refers to the fact that each party of a contract gives up something in exchange for what the other party is providing. Mutual agreement means that each party to the contract must be clear about the essential details, rights, and obligations of the contract.",6_8_louis,1,49.35,11.8,13.8,12.59,14.1,8.17,14.375,13.32
Emissions tax,Firms can pollute as much as they would like as long as they pay the tax for each unit of pollution.,6_8_louis,1,92.46,5.6,0,4.53,7,7.69,11.5,10.3
Employment rate,The percentage of the labor force that is employed.,6_8_louis,1,79.26,4.4,0,8.03,5.6,11.1,4.5,8.04
Energy,"Fuel used to power the economy. Energy is harvested from nonrenewable resources such as fossil fuels (natural gas, coal, oil) or renewable resources such as solar, wind, or geothermal heat.",6_8_louis,1,47.79,10.3,0,11.53,11.2,10.17,11,15.33
Entrepreneurs,"Individuals who are willing to take risks in order to develop new products and start new business. They recognize opportunities, enjoy working for themselves, and accept challenges.",6_8_louis,1,40.85,10.9,0,14.55,12.4,9.57,7.75,11.33
Equal interval,"When data are divided into equal-size, ranges or intervals, the method of categorizing the data.",6_8_louis,1,39.33,11.5,0,12.29,11.8,10.7,10.5,14
Equilibrium price,The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.,6_8_louis,1,69.28,6.2,0,10.53,8,9.42,6.25,9.91
Exchange Stabilization Fund (ESF),"A U.S. Treasury Department fund that typically holds three types of assets: U.S. dollars, foreign currencies, and special drawing rights (SDRs). The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and SDR assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury.",6_8_louis,1,50.46,11.4,13.6,12.36,14.2,11.28,13.66666667,14.09
Exchanges (noun),"Institutions established for buyers and sellers to trade goods, services, resources, and/or money.",6_8_louis,1,41.36,10.7,0,17.97,16.3,11.57,7.5,11.35
Exempt property,Property a debtor is allowed to keep when filing for bankruptcy.,6_8_louis,1,68.77,6.4,0,9.49,7.2,11.36,6.5,11.67
Expected rate of return,The amount you anticipate receiving on an investment based on the probable rates of return (often based on how the asset performed in the past).,6_8_louis,1,54.56,11.9,0,10.16,13.7,9.93,16.5,16.4
Expenditures,Money spent to buy goods and services.,6_8_louis,1,89.75,2.5,0,5.75,3.6,6.24,2.5,2.8
Expenses,"The costs people incur for goods and services. Expenses are often categorized as fixed, variable, and periodic. Fixed expenses are those that occur each month in a regular amount, such as rent, car payments, and mortgage payments. Variable expenses are those that change from one time period to the next, such as food, clothing, gasoline, and entertainment. Periodic expenses are those that occur several times a year, such as car insurance and life insurance payments.",6_8_louis,1,56.25,9.1,12.3,11.53,10.9,7.75,10.1,9.73
FDIC loss-sharing arrangement,"Loss sharing is a feature that the Federal Deposit Insurance Corporation (FDIC) first introduced into selected purchase and assumption (P&A) transactions used to resolve failed insured depository institutions in 1991. The original goals of loss sharing were to (1) sell as many assets as possible to the acquiring bank and (2) have the nonperforming assets managed and collected by the acquiring bank in a manner that aligned the interests and incentives of the acquiring bank and the FDIC. Under loss sharing, the FDIC agrees to absorb a significant portion of the loss—typically 80 percent—on a specified pool of assets while offering even greater loss protection in the event of financial catastrophe; the acquiring bank is liable for the remaining portion of the loss.",6_8_louis,1,21.4,20.5,20.3,13.59,23.9,11.7,23.66666667,23.88
FICO credit score,"The most widely used credit score. FICO stands for Fair Isaac Corp., the company that developed this system of credit evaluation. FICO scores vary but generally range between 500 and 850. The higher the score, the more likely a borrower is to repay loans/debts.",6_8_louis,1,68.77,6.4,9.5,9.2,7.4,11,5.75,8.04
Face value (of bonds),The dollar amount paid to the bond holder when a bond matures.,6_8_louis,1,84.68,4.4,0,6.02,4.6,6.86,5,4.8
Fannie Mae,Fannie Mae is a government-sponsored enterprise (GSE) established as a federal agency in 1938 and chartered by Congress as a private company in 1968. Fannie Mae’s chartered mission is to provide liquidity and stability to the U.S. housing and mortgage markets by operating in the U.S. secondary mortgage market. The full legal name for Fannie Mae is the Federal National Mortgage Association.,6_8_louis,1,42,12.5,14.1,12.76,14.1,11.79,14,13.44
Federal Deposit Insurance Corp. (FDIC),"A U.S. government agency that insures deposits in banks and thrift institutions and supervises state-chartered, non-Federal Reserve member banks.",6_8_louis,1,18.35,15.4,0,19.67,19.5,15.38,14.5,13.92
Federal Home Loan Banks,"A system of 12 regional banks with a primary mission to meet credit and financial service needs of local communities. Chartered by Congress in 1932 to promote a healthy mortgage finance system. Home loan banks are privately owned, wholesale banks without publicly traded stock.",6_8_louis,1,56.55,9,10.5,12.46,11,12.26,8,10.43
Federal Housing Finance Agency,"An independent regulatory agency of the executive branch of the U.S. government that regulates the 12 Federal Home Loan Banks, Fannie Mae, and Freddie Mac.",6_8_louis,1,29.18,15.4,0,12.25,15.8,13.72,18.5,18
Federal Insurance Contributions Act (FICA) tax,A tax or required contribution that most workers and employers pay. FICA is a payroll tax used to fund Social Security and Medicare.,6_8_louis,1,59.8,7.8,0,8.8,6.8,11.07,6.25,9.82
Federal Reserve Act,The 1913 act of Congress establishing the Federal Reserve System.,6_8_louis,1,44.41,9.6,0,13.14,9.9,13.61,6,12
Federal Reserve Districts,Twelve regions in the United States that are represented by a reserve bank.,6_8_louis,1,66.74,7.2,0,9.5,7.9,7.93,6.5,8.28
Federal Reserve limited liability companies,"Companies (Maiden Lane) formed by the Federal Reserve Bank of New York under the authority of Section 13(3) of the Federal Reserve Act to acquire certain assets of Bear Stearns, AIG and AIG subsidiaries and to manage those assets to minimize disruption to financial markets.",6_8_louis,1,25.8,20.8,0,12.49,25.1,12.89,29.5,23.33
Federal Trade Commission,"An independent agency of the United States federal government that maintains fair and free competition, enforces federal antitrust laws, and educates the public about identity theft.",6_8_louis,1,28.17,15.8,0,17.35,20,11.61,20,18.09
Federal income tax,"The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.",6_8_louis,1,39.33,11.5,0,13.27,12.1,10.17,11.5,12.67
Fees,"Money charged to review your application for credit or to service your credit account, such as maintenance fees or late fees. Banks often charge fees for servicing bank accounts, including overdraft fees and charges for using a non-bank ATM.",6_8_louis,1,60.14,9.7,0,12.18,12.9,10.27,11.75,11.9
File a return,"To mail or transmit a taxpayer's information in specified format about income and tax liability. The return can be filed on paper, electronically, or by telephone to an IRS service center.",6_8_louis,1,47.28,10.5,0,11.08,10.3,8.99,10.25,12.65
Final goods and services,Goods and services sold to end users and have been purchased for final use and not for resale or further processing.,6_8_louis,1,75.54,7.9,0,8.94,10.6,9.19,11.5,10.3
Financial crisis,"An event characterized by a sudden, widespread demand for safe liquid assets that prevents the financial system, including banks and other financial institutions, from operating normally.",6_8_louis,1,11.25,18.2,0,18.28,20.9,13.43,20,19.63
Financial institution,"A business that provides services to make deposits to or withdrawals from an account, take out a loan, invest, or exchange currency.",6_8_louis,1,57.61,10.7,0,10.91,13.4,9.03,12,10.62
Financial investment,"Placing money in a savings account or in any number of financial assets, such as stocks, bonds, or mutual funds, with the intention of making a financial gain.",6_8_louis,1,51.52,13,0,9.35,14.8,9.54,18,15.49
Financial literacy,Having knowledge of financial matters and applying that knowledge to one's life.,6_8_louis,1,50.84,9.2,0,14.2,11.7,10.81,7,11.47
Fixed-rate mortgage (FRM),A mortgage loan in which the interest rate does not change during the entire term.,6_8_louis,1,81.63,5.6,0,8.05,7.4,7.54,7.5,8.67
Flat tax,A tax system in which all levels of income are taxed at the same rate.,6_8_louis,1,90.09,4.4,0,3.41,3.6,7.54,6.5,6
Food stamps,The Supplemental Nutrition Assistance Program (SNAP) allowing low-income individuals to buy nutritious food and health-care products.,6_8_louis,1,-3.99,17.8,0,23.37,21.3,12.33,15,21.4
Foreclose,To take possession of a mortgaged property as a result of the borrower's failure to make mortgage payments.,6_8_louis,1,53.21,10.3,0,10.79,11.1,11.55,12,13.87
Form 1040,The standard Internal Revenue Service (IRS) form that taxpayers use to file their annual income tax returns.,6_8_louis,1,54.22,9.9,0,12.82,12.6,10.98,11.5,13.86
Four-firm concentration ratio,The market share held by the four largest firms in an industry. Larger concentration ratios generally indicate less competition. The maximum value for concentration ratios is 100%.,6_8_louis,1,36.96,10.3,11.9,13.19,9.9,10.52,5.833333333,12.49
Fractile interval,"When data are divided into intervals so that there is the same number, or nearly the same number, of data points in each interval, the method of categorizing the data.",6_8_louis,1,41.03,15,0,9.24,15.2,8.81,19,17.33
Fractional reserve banking system,A banking system in which the amount of reserves that banks hold is less than the value of their customers' deposits.,6_8_louis,1,75.54,7.9,0,8.94,10.8,9.19,10.5,8.4
Free rider,A person who receives benefits from something for which he or she doesn’t pay.,6_8_louis,1,74.19,6.4,0,8.63,7.4,7.71,7,8.46
Functions of money,"Activities that can be carried out through the use of money. Activities include medium of exchange, unit of account, and store of value.",6_8_louis,1,59.8,7.8,0,9.26,7.7,7.64,5.75,6.34
Generally acceptable (money),An item that people will take as payment for their work or as payment for goods and services.,6_8_louis,1,87.05,5.6,0,6.61,7.4,6.28,8,7.2
Goods,Objects that satisfy people's wants.,6_8_louis,1,49.48,7.6,0,13.08,11.2,16.52,2.5,10
Government expenditures,"Purchases by government of goods and services, as well as transfer payments made by government. Government expenditures are part of a government’s budget.",6_8_louis,1,42.88,10.1,0,14.07,11.4,9.01,7.75,9.82
Government spending,"Spending by all levels of government on goods and services. This includes, for example, spending on the military, schools, and highways. Government spending is a component of gross domestic product and does not include transfer payments.",6_8_louis,1,59.3,8,11.2,13.27,11,10.81,7,9.24
Government-sponsored enterprises (GSEs),"Enterprises that were established and chartered by the federal government for public policy purposes. GSEs include the Federal Home Loan Banks, the Agricultural Credit Bank and Farm Credit Banks, and the Federal Agricultural Mortgage Corporation. With the exception of Fannie Mae and Freddie Mac, which were taken into conservatorship by the federal government on September 7, 2008, GSEs are private companies and their securities are not backed by the full faith and credit of the federal government.",6_8_louis,1,28.47,15.7,17.9,14.45,17.4,10.04,19.5,15.99
Gross domestic product (GDP),"The total market value, expressed in dollars, of all final goods and services produced in an economy in a given year.",6_8_louis,1,58.62,10.3,0,8.7,10.8,9.94,11.5,10.3
Gross pay,The amount people earn per pay period before any deductions or taxes are paid.,6_8_louis,1,65.73,7.6,0,8.63,7.4,8.84,8,11.31
Hard skills,"Specific, teachable abilities such as math, reading, writing, typing and so on.",6_8_louis,1,50.84,9.2,0,12.28,11.3,10.81,7,11.47
Health insurance,Insurance that pays for medical and surgical expenses incurred by the insured.,6_8_louis,1,42.38,10.3,0,13.73,10.9,13.44,9,18.13
Hedge fund,"Although there is no precise legal definition, the term ""hedge fund"" generally refers to a pooled investment vehicle that is privately organized, administered by a professional investment manager, and not widely available to the public. The assets, investment strategies, and risk profiles of funds that meet this broad definition are quite diverse. In no sense are hedge funds an ""asset class"" such as stocks, bonds, commodities, or real estate. While some hedge funds pursue investment strategies similar to those pursued by private equity funds, the strategies of the sector as a whole are quite varied. Some hedge funds are highly leveraged, while many use little or no leverage.",6_8_louis,1,49.55,11.7,13.3,12.65,14.5,10.26,13.2,12.71
Home Owners Equity Protection Act (HOEPA),"A 1994 amendment to HMDA that provides certain protections to mortgage borrowers. These include protecting consumers from unfair, abusive, or deceptive mortgage lending and servicing practices, ensuring that mortgage advertisements provide accurate and balanced information, and providing consumers with transaction-specific disclosures early enough to use while shopping for a mortgage.",6_8_louis,1,12.26,17.8,0,21.41,22.9,12.77,18.5,20.4
Homeowner's equity,"The owner's interest in a property, calculated as the current fair market value of the property less the amount of existing liens. The appraised, or carrying value, of a property minus the amount of existing liens.",6_8_louis,1,44.75,11.5,0,10.32,11,8.92,13,12.76
Housing market,The market for buying homes. Housing is often an indicator for the overall health of the economy.,6_8_louis,1,62.85,6.6,0,7.62,5.2,9.63,4.25,8.11
Human resources,The quantity and quality of human effort directed toward producing goods and services. Also known as labor.,6_8_louis,1,45.93,9,0,11.04,8,11.49,5.25,12.81
Identity theft,"A form of stealing that results in someone gaining access to another person's personal information (such as name, address, driver's license number, credit card numbers, date of birth, birthplace, or Social Security number) to commit all or any of the following crimes: gaining access to bank accounts to steal money, making purchases with credit or debit cards, opening credit, or engaging in other criminal behavior.",6_8_louis,1,-2.97,29.8,0,13.77,36.6,12.69,41.5,30.31
Incentives,Perceived benefits that encourage certain behaviors.,6_8_louis,1,6.17,13.9,0,23.65,18.4,14.46,5,22.4
Income distribution,The way income is distributed among individuals in a society.,6_8_louis,1,35.95,10.7,0,10.82,8.1,8.87,7,16
Inflation rate,The percentage increase in the average price level of goods and services over a period of time.,6_8_louis,1,62.68,8.7,0,9.05,9,9.12,11.5,13.86
Installment credit,"A loan given in a lump sum for a specific purchase or investment. The loan is paid back with regularly scheduled payments, which include interest. Examples include home loans, car loans, or business loans.",6_8_louis,1,68.47,6.5,10.5,9.84,8.1,8.84,6.333333333,10.4
Interbank funding markets,"In the United States, the market for bank reserves, which is an overnight loan of federal funds between depository institutions.",6_8_louis,1,42.72,12.3,0,13.46,14.2,8.58,13,14
Intermediary,One who stands between two parties to facilitate a transaction; a mediator.,6_8_louis,1,42.38,10.3,0,11.82,9.7,10.81,8,14.8
Intermediate good,"A man-made good that is used to produce another good or service, becoming part of that good or service.",6_8_louis,1,69.11,8.3,0,7.78,9.1,5.41,11.5,7.6
Investment (financial),An asset purchased with the hope that it will gain value and provide a financial return.,6_8_louis,1,72.16,7.2,0,8.52,8,8.38,8,8.9
Investment banking company,"A firm that engages in the origination, underwriting, and marketing of new securities that are issued in the credit markets.",6_8_louis,1,34.26,13.5,0,12.3,13.3,11.73,14,16
Investment-grade securities,Bonds that have been deemed to have a relatively low probability of default. These securities are generally rated Baa (or BBB) and above.,6_8_louis,1,51.34,9,0,9.55,7.9,10.39,6.75,11.56
Investment in human capital,"The efforts people put forth to acquire human capital. These efforts include education, experience, and training.",6_8_louis,1,37.98,10,0,14.46,11.4,10.94,4.5,8.2
Jumbo loan,"A loan that exceeds the mortgage amount eligible for purchase by Fannie Mae or Freddie Mac. Also called a ""nonconforming loan"".",6_8_louis,1,60.82,7.4,0,9.66,7.8,11.68,5.25,8.01
LIBOR index,"An index used to determine interest rate changes for certain ARM plans, based on the average interest rate at which international banks lend to or borrow funds in the London interbank market.",6_8_louis,1,39,15.8,0,11.96,18.1,11.14,22,19.05
Labor,The quantity and quality of human effort directed toward producing goods and services. Also known as human resources.,6_8_louis,1,45.42,9.2,0,12.5,9.3,11.1,5.5,12.49
Law of supply,"As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls.",6_8_louis,1,69.62,8.1,0,7.2,8.3,6.69,10.25,8.48
Lawsuit,A claim by a person or entity against another person or entity brought to a court of law for legal resolution.,6_8_louis,1,50.16,11.5,0,7.31,9.3,7.69,14.5,12.21
Legacy benefits,Benefits that accrue over time.,6_8_louis,1,66.4,5.2,0,8.44,6.5,10.2,2.5,10
Legend,Reference area on a map.,6_8_louis,1,83.32,2.9,0,0.32,-0.2,10.2,2.5,10
Liability insurance,Insurance coverage for injuries or damages the insured person causes to others.,6_8_louis,1,42.38,10.3,0,14.2,11.3,13.44,7,11.47
Liar loan,"An industry term for a low- or no-documentation loan, typically Alt-A or subprime, where there is a suspicion the borrower, mortgage broker, or loan officer may have fraudulently overstated the income and/or assets to qualify for a larger loan. These loans are typically ""stated income"" or ""stated asset"" loans, where the lender does not verify the income and instead records income based on the borrower's verbal statement.",6_8_louis,1,29.01,17.5,0,12.89,20.5,10.95,22.75,19.37
Liquid asset,An asset that is easily convertible to cash with relatively little loss of value in the conversion process.,6_8_louis,1,44.75,11.5,0,11.08,11.1,9.79,13,16.09
Loan guarantee,A contract binding a third party to pay off a loan if the borrower defaults.,6_8_louis,1,73.17,6.8,0,5.73,5.5,8.59,7.5,8.67
Manufacture,"To make or process goods, especially in large quantities and by means of industrial machines.",6_8_louis,1,56.25,9.1,0,11.88,10.9,9.64,10.5,14
Marginal benefits,The additional satisfaction a consumer receives by consuming an additional unit of a good or service.,6_8_louis,1,29.86,13.1,0,13.22,11.9,10.35,12,13.9
Marginal costs,The additional cost of producing an additional unit.,6_8_louis,1,29.52,11.1,0,12.25,9.1,9.95,6,13.2
Marginally attached workers,People who are willing and able to work who have either held a job or searched for a job within the past 12 months but are not actively seeking work. These people are not counted in the unemployment numbers (by the Bureau of Labor Statistics) since they are not actively seeking work.,6_8_louis,1,62.01,11.1,0,8.54,12.7,8.57,15,12.71
Marginal satisfaction/marginal utility,The extra satisfaction from consuming 1 more unit of some good or service.,6_8_louis,1,66.74,7.2,0,9.03,7.5,9.14,7.5,11.35
Margin call,"Margin refers to borrowing money using securities or other collateral that fluctuates in value. If the value of the collateral falls below the lender's maintenance requirement, the lender generally will ""make a margin call"", which means it will require the deposit of additional collateral.",6_8_louis,1,32.22,14.2,0,14.33,16,10.11,16,16.07
Market economy,"An economic system in which decisions about what goods and services are produced, how they are produced, and who gets them are made by buyers and sellers who meet to exchange goods, services, and resources. The buyers and sellers decide the prices of goods, services, and resources.",6_8_louis,1,64.54,10.1,0,11.15,14,8.16,12.75,11.1
Market price,The price at which buyers and sellers trade a good or service in the marketplace where the quantity demanded equals the quantity supplied. Also known as the market clearing price or the equilibrium price.,6_8_louis,1,62.68,8.7,0,11.25,10.8,8.66,11,11.51
Mark-to-market,An accounting rule (Financial Accounting Standards Board [FASB] 157) that requires companies to value assets at prices determined in the marketplace.,6_8_louis,1,33.24,13.8,0,16.94,18,12.95,16.5,17.92
Maximum employment,The highest level of employment that an economy can sustain while maintaining a stable inflation rate.,6_8_louis,1,38.32,11.9,0,13.63,12.2,10.35,12,16.4
Means test,Determines the level of a person’s current income or assets—to see if the debtor has sufficient income or assets to pay his or her debts.,6_8_louis,1,46.1,13,0,9,12.4,9.3,16.5,14.8
Medicare,A federal health care program that pays for certain medical and hospital costs for people aged 65 and older (and for some people who are under the age of 65 and disabled); part of Social Security.,6_8_louis,1,43.4,16.2,0,8.6,17.6,9.81,22,17.73
Medicare tax,"A payroll tax that is part of FICA, collected from most employees and employers to fund the hospital insurance provided under the Medicare system. Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.",6_8_louis,1,43.43,12,14.1,12.82,13.2,10.04,13.33333333,13.93
Medium-term notes,"Debt securities issued by corporations, with typical maturities between 5 and 10 years; however, the maturity may be as short as 1 year. Usually issued at floating rates.",6_8_louis,1,40.35,11.1,0,10.72,9.6,12.23,10.5,14.17
Metropolitan statistical area (MSA),"A densely populated geographic region, with a city at its core, having strong economic ties.",6_8_louis,1,47.79,10.3,0,11.13,10.6,11.75,10.5,14
Money market mutual fund,A mutual fund (SEC-registered investment fund) that invests primarily in money market instruments and/or other short-term debt instruments. All money market mutual funds must hold assets with a weighted average maturity of no more than 90 days.,6_8_louis,1,35.78,12.9,0,14.21,14.3,11.38,13.75,14.97
Money order,A certificate that is backed by cash and issued by a government or bank. The buyer of a good buys the money order and sends it to the seller of the good. The seller can then cash the money order.,6_8_louis,1,83.36,4.9,7.8,4.05,3.6,7.06,6.333333333,6.32
Monoline bond insurers,A financial guaranty (insurance) company that guarantees all scheduled interest and principal payments on the bonds it insures and writes no other line of insurance.,6_8_louis,1,29.18,15.4,0,15.03,17.6,11.82,20.5,19.6
Mortgage-related assets,"Generally defined to be whole mortgage loans, mortgage-backed securities (MBS), collateralized debt obligations (CDOs) that contain MBS, or derivative instruments that refer to any of the above, such as credit default swaps. Many of these assets are held on the balance sheets of financial institutions.",6_8_louis,1,40.18,13.2,0,14.97,16.9,12.82,15.75,16.11
Mutual fund,A company that pools investors' money and then issues shares to its investors.,6_8_louis,1,66.74,7.2,0,10.37,9,10.35,6.5,5.2
Mutually beneficial trade,"In order for a trade to be mutually beneficial among each party involved, the price of the good or service must fall between the opportunity costs of producers involved in the trade. Importers will pay no more for goods or services than what it costs to produce them, while exporters will sell goods or services for no less than what it costs to produce them.",6_8_louis,1,55.41,13.6,0,9.3,16.2,7.68,18.25,15.46
Natural resources,Things that occur naturally in and on the earth that are used to produce goods and services.,6_8_louis,1,71.14,7.6,0,8,8.1,9.12,8.5,9.15
Negative amortization,An increase in the balance of a loan caused by adding unpaid interest to the loan balance; this occurs when the payment does not cover the interest due.,6_8_louis,1,59.98,11.8,0,8.48,13.6,8.97,16,12.63
Negative equity,A situation in which a borrower's mortgage principal is greater than the value of the house.,6_8_louis,1,55.24,9.5,0,9.63,9.2,9.36,11,13.9
Nest egg,"An amount of money saved for a special occasion, such as retirement or buying a house.",6_8_louis,1,72.16,7.2,0,7.42,7.5,9.36,9,11.4
Net pay,Gross pay minus deductions and taxes.,6_8_louis,1,56.93,6.8,0,9.15,6.7,14.46,3,9.07
Nominal gross domestic product,"The total market value of all final goods and services produced in an economy in a given year, expressed using the current year's price for goods and services. Also known as current-dollar GDP.",6_8_louis,1,63.19,8.5,0,9.86,9.8,9.24,8.25,7.81
Nondischargeable debt,A type of debt that cannot be eliminated (wiped out) through a bankruptcy proceeding.,6_8_louis,1,57.27,8.8,0,10.72,9.8,11.1,9,14.17
Nonexempt property,Property a debtor filing for bankruptcy must forfeit (give up) to pay creditors.,6_8_louis,1,58.28,8.4,0,10.83,9.7,11.57,8.5,14.43
Non-interest-bearing account,"An account in which no interest is paid on the principal, which is the amount of deposit or account balance. Also called zero-interest account.",6_8_louis,1,59.3,8,0,9.85,8.1,7.52,6.5,8.13
Non-recourse loans,"A loan (debt) that is secured by a pledge of collateral (could apply to any type of collateral), for which the lender agrees to rely solely on the collateral if the borrower fails to make the required payments of principal and interest.",6_8_louis,1,37.31,18.5,0,9.71,21.4,11.73,27,20.61
Northern Rock,A U.K. bank that was taken into temporary public ownership in February 2008. The bank concentrated primarily on mortgage lending to individuals for the purpose of home ownership.,6_8_louis,1,31.89,12.3,0,12.58,11,10.53,10.5,12.74
Office of Management and Budget,"The implementation and enforcement arm of presidential policy government-wide that carries out its mission through five critical processes, most notably budget development and execution.",6_8_louis,1,-3.65,19.7,0,21.7,22.6,12.72,21,22.93
Open market operations,"The buying and selling of government securities through primary dealers by the Federal Reserve. When the securities are bought or sold, reserves in the banking system are increased or decreased, respectively.",6_8_louis,1,38.82,11.7,0,14.96,13.4,11.03,10.75,11.36
Option ARM (pay-option ARM),"An adjustable-rate mortgage (ARM) that gives the borrower a set of choices of how much interest and principal to pay each month. This may result in negative amortization. The option period is typically limited, for example, to five years.",6_8_louis,1,49.82,9.5,13.6,10.37,9.2,10.76,8.833333333,14.43
Originate-to-distribute model,"A business model where lenders intend to securitize or sell loans that they originate. In contrast to portfolio lending, under this model, lender income is generated by fees paid by the buyers of the loans, rather than from payments made by borrowers.",6_8_louis,1,58.62,10.3,0,11.02,12.6,9.94,13,13.16
Overdraft fee,The penalty associated with an overdraft.,6_8_louis,1,31.55,10.4,0,12.98,9.8,11.83,3,9.07
Payday loan,"A small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday. May also be called a paycheck advance or a payday advance.",6_8_louis,1,65.22,7.8,0,7.94,7.4,8.17,7.75,9.94
Penalties,Negative incentives that make people worse off.,6_8_louis,1,55.91,7.2,0,13.17,9.7,8.5,4.5,14.23
Per capita gross domestic product,Gross domestic product (GDP) divided by the total population of a country.,6_8_louis,1,42.38,10.3,0,10.83,9.3,13.44,8,14.8
Per capita measure,The same as an average-person or a mean-person measure.,6_8_louis,1,53.88,8,0,9.31,7.7,5.84,5.5,8.04
Per capita personal income,"The total income earned by individuals in a state, region, or country during a year, divided by the population of the state, region, or country.",6_8_louis,1,46.1,13,0,9.46,13.7,8.67,15.5,14.8
Peril,"In insurance, a specific risk or cause of loss.",6_8_louis,1,79.26,4.4,0,4.78,3.5,9.35,5.5,12.49
Personal consumption expenditures,A measurement of goods and services purchased by U.S. residents.,6_8_louis,1,61.33,7.2,0,11.4,9.5,13.61,6,12
Petition,"All required documentation that will begin a bankruptcy proceeding (e.g., bankruptcy forms, schedules, statements, plan) plus payment of the court filing fee.",6_8_louis,1,40.69,13.1,0,16.48,18.9,13.34,15,14.25
Phishing,"When someone attempts to get your personal information by pretending to work for a legitimate or legitimate-sounding organization, such as a bank or the government.",6_8_louis,1,20.72,16.6,0,14.8,17.4,9.3,19.5,18
Physical capital,Goods that have been produced and are used to produce other goods and services. They are used over and over again in the production process. Also called capital goods and capital resources.,6_8_louis,1,77.53,5.1,8.8,9.61,7.2,7.62,5.333333333,5.53
Portable,Easy to carry.,6_8_louis,1,93.81,0.9,0,-4.29,-1.2,0.15,0.5,1.2
Portfolio,A list or collection of financial assets that an individual or company holds.,6_8_louis,1,41.36,10.7,0,10.37,8.6,10.35,10.5,14.43
Positive externality,A benefit to a third party arising from a transaction between two parties unrelated to the third party.,6_8_louis,1,44.75,11.5,0,9.8,10.1,8.92,12,13.87
Preferences,An indication of our likes or dislikes; preferences help us make choices.,6_8_louis,1,59.3,8,0,10.83,8.9,10.81,7,11.47
Preferred stock (equity),"Equity (ownership) shares in a firm that have a senior claim over common shareholders on the assets of a firm in the event of bankruptcy. A firm must pay preferred dividends on these shares, according to a contractually specified schedule at a rate that is either fixed or floating, before it can pay dividends to common shareholders.",6_8_louis,1,51.01,13.2,0,10.68,15.8,10.31,19.25,17.01
Price controls,A restriction on a market that sets the price above or below the market equilibrium.,6_8_louis,1,64.71,8,0,8.81,8.1,7.54,8.5,11.33
Price stability,A low and stable rate of inflation maintained over an extended period of time.,6_8_louis,1,57.27,8.8,0,8.63,7.4,8.84,9,14.17
Primary Dealer Credit Facility (PDCF),An overnight Federal Reserve loan facility that provides funding to primary dealers in exchange for any eligible collateral.,6_8_louis,1,19.37,15,0,16.59,15.5,12.42,14,18.31
Primary credit rate,"The interest rate charged by the Federal Reserve for primary credit loans to depository institutions. Because primary credit is the Federal Reserve's main discount window program, the Federal Reserve at times uses the term ""discount rate"" to mean the primary credit rate. Discount rates are established by each Reserve Bank's board of directors, subject to the review and determination of the Board of Governors.",6_8_louis,1,41.4,12.8,15,13.52,14.9,9.87,15,14.15
Primary dealers,Banks and securities broker-dealers that trade in U.S. government securities with the Federal Reserve Bank of New York.,6_8_louis,1,44.75,11.5,0,13.98,14.3,12.42,14,11.64
"Private good, ""me-only"" good",A good or service that benefits (satisfies) the person who buys it; a good or service that you can’t use unless you pay for it.,6_8_louis,1,71.48,9.5,0,5.98,10.5,7.4,14.5,13.2
Private-label securities,"In the housing-finance business, a mortgage-backed security or other bond created and sold by a company other than a government-sponsored enterprise. Private-label securities frequently are collateralized by loans that are ineligible for purchase by Fannie Mae or Freddie Mac.",6_8_louis,1,17.84,15.6,0,17.06,17.1,13.11,15.75,14.98
Producers,People who make goods and services.,6_8_louis,1,90.77,2.1,0,7.18,5.1,6.57,2,2.4
Production,The process of using resources and intermediate goods to make goods and provide services.,6_8_louis,1,57.27,8.8,0,13.22,11.1,11.1,7,8.46
Productive resources,"The natural, human, and capital resources used to make goods and services. Also known as factors of production.",6_8_louis,1,62.34,6.8,0,9.94,7.7,9.35,5,8.04
Proportional (Flat) Tax,A taxing system that takes the same percentage of tax at all income levels.,6_8_louis,1,74.19,6.4,0,7.42,6.4,9.97,7,8.46
"Public good, ""shared"" good",A good or service that benefits (satisfies) many people at one time; a good or service that people can use even if they don’t pay for it.,6_8_louis,1,69.45,10.3,0,5.98,11.4,6.73,15.5,13.76
Purchasing power,The amount of goods and services that a unit of currency can buy.,6_8_louis,1,92.12,3.6,0,5.03,4.3,7.93,6.5,8.28
Quantity supplied,The amount of a good or service that businesses are willing and able to sell at a specific price.,6_8_louis,1,77.57,7.2,0,6.56,7.7,6.24,11.5,11.81
Real gross domestic product (GDP),The total market value of all final goods and services produced in an economy in a given year calculated by using a base year's price for goods and services; nominal gross domestic product (GDP) adjusted for inflation.,6_8_louis,1,33.92,17.7,0,11.04,20.2,11.87,24.5,21.29
Real rate of return,The rate of return on the investment minus the inflation rate.,6_8_louis,1,68.77,6.4,0,8.45,6.3,8.49,6.5,11.67
Real value,A measure of money that removes the effect of inflation.,6_8_louis,1,61.33,7.2,0,7.92,5.7,8.87,5,8
Reciprocal currency (swap) arrangements,"Short-term reciprocal arrangements between a Federal Reserve Bank and a foreign central bank. By drawing on a swap the foreign central bank obtains dollars that can be used to conduct foreign exchange intervention in support of its currency or to lend to its domestic banking system to satisfy temporary liquidity demands. For the duration of the swap, the Federal Reserve Bank obtains an equivalent amount of foreign currency along with a commitment from the foreign central bank to repurchase the foreign currency at a preset exchange rate.",6_8_louis,1,33.58,15.8,16.3,13.36,17.8,9.61,19.83333333,17.58
Recycle,To collect used materials and use them to produce new goods.,6_8_louis,1,68.77,6.4,0,7.35,5.5,8.49,5.5,8.04
Reduce,To produce and consume fewer goods.,6_8_louis,1,73.85,4.5,0,7.18,5.1,11.83,2,2.4
Refine,"To develop production methods that use fewer intermediate goods and less energy and, therefore, use fewer natural resources and produce less waste.",6_8_louis,1,32.22,14.2,0,15.14,16.6,11.9,16,17.89
Relative frequency,"The number of times that an outcome has occurred, divided by the total number of completed trials.",6_8_louis,1,54.22,9.9,0,9.74,9.8,10.98,10.5,11.51
Relatively scarce,An item that is scarce in relation to people's desire for it.,6_8_louis,1,84.68,4.4,0,5.03,4.2,9.5,6,8.13
Rent controls,A type of price control that typically sets the rental rate for an apartment below the market rate.,6_8_louis,1,70.13,8,0,8.52,9,8.92,9,9.42
Rent-to-own contract,"A contract that allows consumers to get immediate delivery on new furniture, appliances, or other items. There is no down payment or credit check required. If the consumer keeps the rental item for a minimum amount of time, there is no penalty charged for returning it. If the renter misses a payment, the contract requires that he or she return the item.",6_8_louis,1,72.66,7,10.1,9.16,8.6,9.5,8.25,9.43
Repossess,To retake possession of something when the buyer fails to make payments.,6_8_louis,1,67.76,6.8,0,10.83,8.5,10.81,6,8.13
Required reserves,"Funds that a depository institution is required to maintain in the form of vault cash, or—if vault cash is insufficient to meet the requirement—in the form of a balance maintained directly with a Reserve Bank or indirectly with a pass-through correspondent bank.",6_8_louis,1,28.85,19.7,0,13.71,24.3,10.98,28,23.47
Reserve maintenance period,The period of time that reserve balance requirements and contractual clearing balances need to be met (only on average).,6_8_louis,1,43.73,11.9,0,12.94,13.4,11.23,13.5,16.02
Residential mortgage-backed security (RMBS),A security that relies for payment on cash flows generated by a pool of residential mortgage debt obligations. (See also: Asset-backed security and Commercial mortgage-backed security.),6_8_louis,1,11.25,18.2,0,17.12,20.5,11.61,22,18.09
Resources,"The natural, capital, and human resources used to produce goods and services. Also known as productive resources.",6_8_louis,1,54.39,7.8,0,12.37,9.7,9.63,4.75,8.11
Retail,The resale of new and used goods to general consumers.,6_8_louis,1,78.25,4.8,0,6.76,4.8,7.29,5,4
Retirement Plan 401(k),A retirement plan sponsored by an employer that allows employees of a company to save and invest for their own retirement on a tax-deferred basis. Employers may use 401(k) plans as a means of distributing company stock to employees.,6_8_louis,1,51.68,10.9,0,10.85,11.7,9.87,14.25,12.93
Reuse,To use goods more than once or to use goods in new ways.,6_8_louis,1,109.04,1.3,0,1.03,1,5.5,5.5,5.2
Revenue (government),The income received by government from taxes and other nontax sources.,6_8_louis,1,60.31,7.6,0,12.62,9.7,9.92,5.5,4.4
Revolving credit,"A line of available credit that is usually designed to be used repeatedly, with a preapproved credit limit. The amount of available credit decreases and increases as funds are borrowed and then repaid with interest.",6_8_louis,1,53.71,10.1,0,11.95,11.7,10.37,11.25,12.71
Rewards,Positive incentives that make people better off.,6_8_louis,1,38.99,9.6,0,14.04,10.3,8.5,4.5,14.23
Risk-reward relationship,"The idea that there is a direct relationship between risk of the loss of principal and the expected rate of return. The higher the risk of loss of principal for an investment, the greater the potential reward. Conversely, the lower the risk of loss of principal for an investment, the lower the potential reward.",6_8_louis,1,61.67,9.1,13.6,9.63,10.2,7.45,12.33333333,11.64
Salary,"Income earned for providing human resources (labor) in the market. Salaries are generally an annual amount paid monthly or bimonthly for a specified number of hours, usually 40 hours per week.",6_8_louis,1,55.74,9.3,0,11.77,11,12.05,10.75,13.94
Save,To keep money to spend in the future.,6_8_louis,1,88.74,2.9,0,1.41,0.2,6.01,3,3.2
Saving,Income not spent on current consumption or taxes. Saving involves giving up some current consumption for future consumption.,6_8_louis,1,45.42,9.2,0,14.76,11,9.35,5,5.82
Saving rate,The percentage of your income that you save.,6_8_louis,1,80.28,4.1,0,6.45,4.4,6.01,4,8.2
Savings account,An account with a bank or credit union in which people can deposit their money for future use and earn interest.,6_8_louis,1,67.08,9.1,0,7.83,9.7,7.69,11.5,10.3
Savings and loan associations,Financial institutions with a federal or state charter that accept savings deposits and invest the bulk of those deposits in mortgages.,6_8_louis,1,41.7,12.7,0,14.21,14.9,10.69,13.5,14.11
Savings goal,A good or service that you want to buy in the future.,6_8_louis,1,93.14,3.3,0,1.67,1.1,5.55,5,4.8
Savings plan,"A schedule listing tasks that, when completed, will allow a saver to reach a savings goal.",6_8_louis,1,72.16,7.2,0,8.52,8.7,9.36,8,8.9
Second mortgage,A mortgage that has a lien position subordinate to the first mortgage.,6_8_louis,1,59.3,8,0,9.85,7.7,9.5,7,11.47
Secured debt,A loan that is backed with collateral; a loan for which the lender requires and the borrower offers property as a guarantee of repayment.,6_8_louis,1,55.58,11.5,0,10.1,12.9,10.75,17,17.93
Security deposit,Money paid by a tenant to a landlord that the landlord holds during the occupancy and may use to pay for any damage or unpaid rent when the lease ends or must otherwise return to the tenant. State laws dictate how soon it must be repaid after the lease ends.,6_8_louis,1,71.48,9.5,0,7.03,10.8,8.03,13.5,10.8
Self-interest,The pursuit of personal gain.,6_8_louis,1,66.4,5.2,0,6.12,4.6,10.2,2.5,10
Senior debt,"If the issuer of a debt security goes bankrupt, senior debt must be repaid before other creditors receive any payment. Senior debt is often secured by collateral on which the lender has a first lien.",6_8_louis,1,62.17,8.9,0,9.28,9.5,9.47,10.25,10.43
Senior secured debt,"Generally, refers to borrowing by a financial or nonfinancial firm that is secured by real (physical) assets and has prior claim to incoming cash flows before other debt.",6_8_louis,1,34.6,15.4,0,11.78,16.6,12.92,20,19.77
Shortage,When the quantity demanded of a good or service exceeds the quantity supplied at a particular price.,6_8_louis,1,45.76,11.1,0,10.73,10.3,9.12,12.5,13.86
Short selling,"The selling of a stock or other security not owned by the seller. In effect, the seller is betting that the price of the security will fall. A ""naked"" short sale is an unhedged position.",6_8_louis,1,76.52,5.5,8.8,5.72,4.8,8.28,5.833333333,6.97
Short-term savings goal,"Goods or services to be bought within a short time, such as a few weeks or months.",6_8_louis,1,96.52,4,0,4.23,5.3,8.19,7.5,6.8
Sit-in,A type of protest where people refuse to buy the business's goods and services and block others from making purchases by taking all of the seats in a restaurant or blocking the entrance to a business.,6_8_louis,1,60.32,13.8,0,9.59,18.1,9.81,19,15.51
Social Security tax,"A payroll tax that is part of FICA (Federal Insurance Contributions Act) and is collected from most employees and employers to fund Social Security, which provides old-age, survivors', and disability income.",6_8_louis,1,23.09,17.7,0,14.92,21,12.31,23.5,22.72
Soft skills,"Interpersonal skills such as communication (verbal, written), teamwork, dependability, problem solving, leadership, time management, creativity, and so on.",6_8_louis,1,-6.02,18.6,0,23.37,23.7,14.18,15,20.53
Special purpose districts,"Government entities existing to support a special function, such as fire protection, libraries, or mass transit.",6_8_louis,1,38.32,11.9,0,16.12,15.1,13.31,12,13.9
Special purpose vehicle (SPV),"A legal entity (usually a limited liability company) created to fulfill narrow or temporary objectives. The SPV exists to hold the assets and issue a new set of claims on the assets, making the SPV sponsor remote from any bankruptcy associated with the pool of assets. The SPV typically holds a portfolio of various assets such as mortgages, loans, or corporate bonds. This portfolio is sliced into different components (called tranches).",6_8_louis,1,36.49,12.6,14.9,11.6,11.8,11.19,13.125,15.01
Spending,Using some or all of your income to buy things you want now.,6_8_louis,1,92.12,3.6,0,2.83,2.4,6.71,5.5,5.2
Standard,"A requirement that must be met in order for trade to take place. For example, there may be requirements related to safety, health, or the environment.",6_8_louis,1,66.74,7.2,0,8.63,7.7,7.32,8,12.89
Standard of living,A measure of the goods and services available to each person in a country; a measure of economic well-being. Also known as per capita real GDP (gross domestic product).,6_8_louis,1,56.76,8.9,0,8.92,8.6,9.26,7.75,8.56
Stimulus,Actions taken by a government or a central bank that are intended to encourage economic activity and growth.,6_8_louis,1,36.28,12.7,0,11.42,11.4,10.67,14,16.09
Stock exchange,A market in which stocks are bought and sold.,6_8_louis,1,104.64,0.9,0,4.14,2.4,5.84,3.5,3.6
Stress test,"An assessment of capital adequacy conducted by U.S. federal bank and thrift supervisors. The purpose of the stress test (formally, a capital assessment) is to determine if the largest U.S. banking organizations have sufficient capital buffers to withstand the impact of an economic environment that is more challenging than is currently anticipated.",6_8_louis,1,19.71,17,0,15.26,18.6,12.21,22,21.17
Structured investment vehicle (SIV),"A special purpose entity that invests in a variety of financial assets and is funded by short- or medium-term borrowings—for example, asset-backed commercial paper (ABCP).",6_8_louis,1,20.72,16.6,0,15.5,18.8,14.35,19.5,19.6
Subordinate financing,Any mortgage or other lien with lower priority than the first mortgage.,6_8_louis,1,59.3,8,0,10.37,8.1,9.5,6,8.13
Subprime mortgage loan,"The classification ""subprime"" generally is a lender-given designation for loans extended to borrowers with some sort of credit impairment, say, due to missing installment payments on debt or the lack of a credit history. Along with an individual's credit rating, characteristics of the mortgage loan can contribute to a lender classifying a loan as subprime—features such as limited or no documentation about income or assets, high loan-to-value ratios, or high payment-to-income ratios.",6_8_louis,1,18.02,19.7,0,15.62,23.8,11.12,27,21.62
Sunk cost,A cost that has already been incurred and cannot be recovered.,6_8_louis,1,68.77,6.4,0,8.45,6.3,7.05,5.5,8.04
Supplemental Nutrition Assistance Program (SNAP),"A government program that helps low-income individuals and households purchase food. Formerly known as food stamps, the program now uses electronic swipe cards.",6_8_louis,1,51.34,9,0,15.35,12.6,11.76,7.25,9.82
Taxable income,"Adjusted gross income minus allowable tax exemptions, deductions, and credits; the amount of income that is subject to income tax.",6_8_louis,1,42.72,12.3,0,13.75,14.7,10.16,14,16
Tax credit,An amount directly deducted from the total tax owed.,6_8_louis,1,62.34,6.8,0,8.67,6.1,11.1,5.5,12.49
Tax exemption,Amount allowed by the IRS that can be deducted from taxable income to reduce the amount of income tax owed. There are two types: personal and dependency. The personal exemption is for the taxpayer; the dependency exemption is based on the number of dependents the taxpayer has. The exemption amount is a set amount that changes from year to year.,6_8_louis,1,64.71,8,12.6,9.27,8.6,8.06,10.25,10
Technological advance,An advance in overall knowledge in a specific area; also known as technological change.,6_8_louis,1,48.81,9.9,0,11.94,10.5,11.1,8,11.31
Technological capability,Refers to the ability to provide organizations with technological strength and gives opportunity to create competitive advantage.,6_8_louis,1,3.46,17,0,20.65,18.4,14.7,14.5,20.92
Technology,The application of knowledge to the production of goods and services.,6_8_louis,1,60.31,7.6,0,12.1,9.3,9.92,6.5,11.67
Term Asset-Backed Securities Lending Facility (TALF),"A Federal Reserve funding facility that supports the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA). Under the TALF, the Federal Reserve Bank of New York (FRBNY) lends up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The FRBNY lends an amount equal to the market value of the ABS less a ""haircut"" secured at all times by the ABS. The U.S. Treasury Department—under the Troubled Assets Relief Program (TARP) of the Emergency Economic Stabilization Act of 2008—provides $20 billion of credit protection to the FRBNY in connection with the TALF. The TALF ended in December 2009.",6_8_louis,1,45.49,13.3,14,12.48,16.2,11.57,15.5,14.62
Term Auction Facility (TAF),"A Federal Reserve program that auctions term funds (typically funds of 28- or 84-day maturity) to depository institutions. All depository institutions that are eligible to borrow under the primary credit program are eligible to participate in TAF auctions. All advances must be fully collateralized. The last auction was March 8, 2010.",6_8_louis,1,24.64,13,13,13.21,11.3,10.77,8.375,12.18
Term Securities Lending Facility (TSLF),"A Federal Reserve loan facility that promotes liquidity in Treasury and other collateral markets by offering Treasury securities held by the System Open Market Account (SOMA) for loan over a one-month term against other program-eligible general collateral. Securities loans are awarded to primary dealers based on a competitive single-price auction. The TALF was closed February 1, 2010.",6_8_louis,1,26.81,14.2,15,15.49,15.4,11.5,13.83333333,13.92
Term Securities Lending Facility (TSLF) and TSLF Options Program (TOP),"A Federal Reserve lending program that offers options to the primary dealers to draw upon short-term, fixed-rate Term Securities Lending Facility (TSLF) loans from the System Open Market Account (SOMA) portfolio in exchange for program-eligible collateral. The program is intended to enhance the effectiveness of TSLF by offering added liquidity over periods of heightened collateral market pressures, such as quarter-end dates.",6_8_louis,1,15.14,18.7,0,17.18,22.2,12.4,21.75,20.07
Term repurchase (repo) agreements (transactions),The sale of securities to an investor with an agreement to repurchase them at an agreed-upon price and date. The FOMC uses repos of eligible securities to vary the quantity of banking system reserves as part of its implementation of monetary policy.,6_8_louis,1,41.7,12.7,0,11.02,12.4,11.07,14.5,15.07
The Truth in Lending Act,A federal law that requires the disclosure of information about the cost of credit. Both the finance charges and annual percentage rate (APR) must be displayed prominently on forms and statements.,6_8_louis,1,55.74,9.3,0,12.76,11.5,11.54,10.75,13.94
Too-big-to-fail,"Government practices that protect large banking organizations from the normal discipline of the marketplace because of concerns that such institutions are so important to markets and their positions so intertwined with those of other banks that their failure would be unacceptably disruptive, financially and economically.",6_8_louis,1,0.42,24.4,0,19.16,30.2,11.83,34.5,26.89
Trade barrier - government imposed,"Any action government takes to make trade more difficult. See tariffs, quotas, embargo, and standards.",6_8_louis,1,55.4,7.4,0,12.43,10,11.38,4.25,8.33
Trade barrier - natural,"Any barrier imposed by nature such as distance, mountains, rough terrain, high temperatures, or rough seas.",6_8_louis,1,55.24,9.5,0,13.98,13.7,12.33,9,11.4
Trade-off,Giving up some of one thing in order to gain some of something else.,6_8_louis,1,91.11,4,0,4.52,4.1,0.69,6,5.6
Trade routes,The paths traders use to reach the people with whom they are trading or to send the goods and resources they are trading.,6_8_louis,1,81.97,7.5,0,7.72,10.3,7.52,11.5,9.2
Transfer payments,"Payments by governments to people who do not supply goods, services, or labor in exchange for the payments.",6_8_louis,1,61.67,9.1,0,10.44,11.1,8.92,9,9.42
Transfer programs,Government programs designed to improve economic equity.,6_8_louis,1,5.15,14.3,0,20.66,15.7,13.01,5.5,14.23
Travelers checks,Checks issued by a financial institution which function as cash but are protected against loss or theft.,6_8_louis,1,62.68,8.7,0,12.12,11.5,10.98,11.5,13.86
Tri-party repurchase agreement,"A repurchase transaction involving three parties: an investor, a financial institution, and a clearing bank, which acts as an intermediary. In these transactions, which usually involve large amounts of cash and securities, the investor deposits money with the clearing bank, which then lends it to another institution.",6_8_louis,1,39.16,13.6,0,15.5,17.6,10.18,17.25,17.06
Troubled assets,"Under the Emergency Economic Stabilization Act, Congress authorized the Treasury to use up to $700 billion to purchase ""troubled assets"" (i) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary of the Treasury determines promotes financial market stability; and (ii) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.",6_8_louis,1,-67.25,52.5,0,15.51,65,15.12,73,56
Truth-in-Lending Act (Regulation Z),A federal law intended to promote the informed use of consumer credit by requiring disclosure about its terms and costs. Creditors are required to disclose the cost of credit as a dollar amount (the finance charge) and as an annual percentage rate (APR).,6_8_louis,1,58.11,10.5,0,10.5,12.5,10.95,14.25,15.11
U.S. Treasury securities,"Bonds, notes, and other debt instruments sold by the U.S. Treasury to finance U.S. government operations.",6_8_louis,1,63.36,6.4,0,10.45,9.1,12.92,4.5,8.2
Unemployment compensation,A program providing cash benefits for a specified period of time to workers who lose a job through no fault of their own. Also known as unemployment insurance.,6_8_louis,1,57.27,8.8,0,9.04,7.8,8.84,9,14.17
Unemployment insurance (compensation),A program providing cash benefits for a specified period of time to workers who lose a job through no fault of their own.,6_8_louis,1,65.05,9.9,0,7.72,10.3,8.9,15.5,16.16
Uninsured motorist insurance,Insurance coverage that pays for your damages when you are involved in a car accident with someone who does not have liability insurance.,6_8_louis,1,39.67,13.4,0,11.78,13.6,8.9,16.5,14.42
Utility/Satisfaction,The total satisfaction received from consuming goods and services.,6_8_louis,1,36.96,10.3,0,17.66,13.4,12.86,5.5,12.49
Volunteering,"Performing an activity, task, or service for another person or organization without being paid.",6_8_louis,1,14.97,14.7,0,14.84,13.2,7.71,11,14.17
"W-2 form, Wage and Tax Statement",A summary of a person's earnings and tax withholdings for an entire year. Employers must provide a W-2 to employees by the end of January for the previous year's employment to report annual income and withholding on the employees' tax returns.,6_8_louis,1,42.21,12.5,0,10.56,12.1,11.2,15.25,16.98
Wage garnishment,A court order imposed on an employer to withhold a portion of an employee’s wages to be sent to a person or business to whom the employee owes money.,6_8_louis,1,58.96,12.2,0,7.32,12.7,9.43,17.5,15.74
Wants,Desires that can be satisfied by consuming goods and services.,6_8_louis,1,61.33,7.2,0,11.4,8.5,10.45,6,12
Waste,The unavoidable material that remains after something has been consumed or produced.,6_8_louis,1,42.38,10.3,0,16.63,13.2,10.81,7,11.47
Wholesale,The selling of goods in large quantities to be retailed by others.,6_8_louis,1,76.22,5.6,0,7.93,6.1,9.5,6,8.13
Withholding allowance,"The amount of money that an employer withholds from an employee's paycheck. This money is deposited for the government on behalf of the individual taxpayer. (It will be credited against the employee's tax liability when he or she files a tax return.) Employers withhold money for federal income taxes, Social Security taxes, and state and local income taxes in some states and localities.",6_8_louis,1,41.7,12.7,15,11.84,13.4,9.44,14.83333333,15.38
Workout,"A workout is a process where the terms of a loan are modified or the lender agrees to some forbearance in order to avoid default, foreclosure or bankruptcy",6_8_louis,1,59.98,11.8,0,9.35,14.1,11.23,18,16.91
Ability-to-pay principle,The idea that taxes should be levied on a person according to how well that person can shoulder that burden.,9_12_louis,1,68.1,8.7,0,8.24,9.5,7.79,11,10
Absolute good,A value that cannot be traded off against other things that are highly valued by individuals. Many moral or ethical laws are considered to be absolute goods by the supporters (or advocates) of such laws.,9_12_louis,1,53.71,10.1,0,9.74,10.1,9.92,11.75,13.86
Actual output (real GDP),"The amount that an economy actually produces, as measured by real GDP.",9_12_louis,1,50.84,9.2,0,9.38,7.7,10.81,7,11.47
Administered rate,An interest rate that is set directly rather than being influenced by the market forces of supply and demand.,9_12_louis,1,60.65,9.5,0,10.21,10.6,9.57,12.5,13.92
Agency debt,"Direct debt obligations issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, which are government-sponsored enterprises (GSEs).",9_12_louis,1,42.72,12.3,0,16.36,17.5,14.1,14,14
Aggregate demand curve,A graphical depiction of the amounts of real output (gross domestic product [GDP]) that buyers collectively desire to purchase at each possible price level.,9_12_louis,1,30.2,15,0,13.93,16.7,12.06,17,16.27
Aggregate supply curve,A graphical depiction of the amounts of real output (gross domestic product [GDP]) that businesses will choose to produce at each possible price level.,9_12_louis,1,47.12,12.7,0,12.77,15.7,11.41,17,16.27
Algorithm,"A process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.",9_12_louis,1,35.27,13.1,0,12.65,13.1,12.06,14.5,16.02
Annuity equation,"FV = (A/i)[(1+i)n - 1], where:",9_12_louis,1,75.88,3.7,0,-4.36,10,19.62,2,1.6
FV = Future value is the amount that's not known but will be solved in the calculation. It's the amount wanted in the future.,A = Annuity; annuities are the initial and subsequent payments (which must be the same amount).,9_12_louis,1,56.25,9.1,0,11.13,11.2,10.7,11,14
"i = Interest rate, which has a great effect on future value. The interest rate in the formula must be written in decimal form, such as 0.03 instead of 3%.","n = This is the number of periods, where ""n"" is the number of equal deposits that will be made.",9_12_louis,1,77.57,7.2,0,4.41,6.9,7.9,11,9.71
Balance of trade,"The difference between a country's total exports and total imports. Also known as ""net exports"".",9_12_louis,1,55.4,7.4,0,10.11,8.1,8.22,3.25,3
Bank suspensions,Banks closed to the public because of financial difficulties.,9_12_louis,1,45.42,9.2,0,14.47,10.8,11.1,5.5,12.49
Binary map,A map with regions divided into two classes.,9_12_louis,1,63.36,6.4,0,6.45,4.4,9.95,4,8.2
Bond yield,"The average return from owning a bond. It depends on the price paid for the bond, its coupon payments, and time to maturity.",9_12_louis,1,76.72,5.4,0,6.24,5.2,9.01,5.75,8.08
Capital account,That part of a country’s balance of payments that records movements of capital into and out of a country.,9_12_louis,1,69.11,8.3,0,8.99,9.6,8.73,10.5,7.6
Card-not-present (CNP) transaction,"A card transaction in which the card itself is not physically present. The cardholder provides information including the card number, expiration date, name of cardholder, and security code to a merchant.",9_12_louis,1,38.82,11.7,0,13.86,12.6,9.5,11.75,15.23
Card-present (CP) transaction,A face-to-face card transaction in which the card is physically swiped or inserted into a card reader terminal.,9_12_louis,1,44.75,11.5,0,11.77,12.2,8.92,13,16.09
Card reader,A device designed to read or decode the encoding on plastic cards.,9_12_louis,1,67.76,6.8,0,7.93,6.1,12.13,6,8.13
Choropleth map,"A map that uses shading, color, or symbols to convey a quantity or property for an area.",9_12_louis,1,62.68,8.7,0,5.97,7,10.98,10.5,11.51
Citation (of data),"A short description of data, including their author, title, distributor, persistent identifier, and date.",9_12_louis,1,14.97,14.7,0,17.74,16.5,11.1,12,19.89
Clearinghouse,"An institution where mutual claims and accounts are settled, as between banks.",9_12_louis,1,50.84,9.2,0,13.27,10.9,12.13,7,11.47
Commercial paper,"A short-term, unsecured promissory note issued by an industrial or commercial firm, a financial company, or a foreign government. Typically, maturity is 90 to 180 days.",9_12_louis,1,32.9,11.9,0,12.17,11,12.18,11,15.97
Complement (resources),Productive inputs that are used jointly with other inputs in the production process.,9_12_louis,1,58.28,8.4,0,13.5,11.2,10.35,7.5,11.35
Contract,"An exchange, promise, or agreement between two parties that is enforceable by law. For example, a car buyer agrees to pay the amount financed at an agreed-upon interest rate for the length of the contract.",9_12_louis,1,70.63,7.8,0,9.74,10.4,9.02,10.25,10.43
Contraction,A period when real GDP declines; a period of economic decline.,9_12_louis,1,43.39,9.9,0,7.93,6.3,11.36,7.5,11.67
Contractionary monetary policy,Actions taken by the Federal Reserve to increase interest rates and thereby discourage spending by consumers and businesses.,9_12_louis,1,36.28,12.7,0,16.59,15.5,14.18,13,16.09
Co-payment (co-pay),"A set dollar amount the customer pays, with the insurance company paying the difference.",9_12_louis,1,57.27,8.8,0,12.35,10.8,7.71,9,8.46
Cost of living,The amount of income needed to achieve a given living standard.,9_12_louis,1,68.77,6.4,0,8.97,6.8,8.49,4.5,4.4
Coverage,How much risk or liability is protected with an insurance policy.,9_12_louis,1,34.93,11.1,0,10.01,7.6,11.36,8.5,18.95
Current population survey,A statistical survey carried out by the U.S. Bureau of Labor Statistics.,9_12_louis,1,48.47,8,0,7.18,5.5,14.46,3,9.07
Cyclical unemployment,Unemployment associated with recessions in the business cycle.,9_12_louis,1,-4.33,15.9,0,19.5,15,11.93,6,18.2
Deferral,Postponed until a later time.,9_12_louis,1,66.4,5.2,0,6.12,4.6,10.2,1.5,2
Delinquency rate,"In general, the delinquency rate refers to a percentage determined by dividing the number of loans that have delinquent payments by the number of total loans.",9_12_louis,1,45.09,13.4,0,12.25,15.7,10.39,18,16.55
Digital object identifier (DOI),An internet address that allows the reader of a data citation to access the data directly from the source.,9_12_louis,1,52.19,10.7,0,9.28,9.9,10.4,12.5,13.92
Diminishing marginal utility,"Occurs when marginal utility becomes smaller as a person consumes more units of a product. As someone consumes additional units of a product, the marginal utility derived from each additional unit declines.",9_12_louis,1,38.32,11.9,0,13.63,12.3,10.35,11,10.15
Discount window,Federal Reserve lending to depository institutions to support the liquidity and stability of the banking system and the effective implementation of monetary policy.,9_12_louis,1,-11.1,20.5,0,18.57,19.1,14.39,20.5,24.85
Discretionary income,The portion of personal income available for spending after taxes and basic essentials have been deducted.,9_12_louis,1,38.32,11.9,0,15.08,13.4,12.33,11,13.9
Discretionary spending,Government spending authorized by Congress on an annual basis.,9_12_louis,1,28.5,11.5,0,15.11,11.3,12.86,6.5,12.49
Domestic,Inside a particular country.,9_12_louis,1,8.2,13.1,0,11.6,10,7.78,2,11.6
Dual mandate,The Federal Reserve's responsibility to use monetary policy to promote maximum employment and stable prices.,9_12_louis,1,5.49,16.2,0,17.68,15.6,13.85,13.5,22
EMV chip specifications,"Specifications developed by Europay, MasterCard, and Visa defining requirements for using chip cards worldwide.",9_12_louis,1,14.97,14.7,0,21.51,18.5,15.61,12,19.89
Earned income,Earned income is the money you get for the work you do. There are two ways to get earned income: You work for someone who pays you or you own or run a business or farm.,9_12_louis,1,95.51,4.4,0,3.36,4.9,5.85,8,7.2
Earned income tax credit,A refundable federal tax credit for low-income working people designed to reduce poverty and encourage labor force participation.,9_12_louis,1,10.91,16.2,0,17.86,16.9,14.18,14,16.09
Economic freedom,"Answers the question, “Do I get to decide where to live, what job to have, how to spend and save my money, and so on?” Economic freedom means allowing students to choose career paths, workers to change jobs and join unions, consumers to choose how to spend and save their money, people to start businesses and close businesses, people to travel as they wish to, and so on.",9_12_louis,1,27.84,26.3,0,8.96,33.7,9.8,38,28.96
Economic models,Simple depictions of complex ideas.,9_12_louis,1,49.48,7.6,0,13.08,10.3,13.36,2.5,10
Economic security,"Answers the question, “How do we protect people from risks in society?” Economic security means protecting consumers, producers, and resource owners from risks that exist in society. Each society must decide from which uncertainties individuals can and should be protected, and whether individuals, employers, or government (taxpayers) should provide or pay for this. These risks might include unemployment, disability, identify theft or fraud, destruction of property by natural disasters, financial failure for individuals or businesses, and so on.",9_12_louis,1,19.71,17,19.3,16.95,20.1,11.2,21,20.14
Economic stability,"Answers the question, “How do we keep the economy stable so that people feel secure and can plan?” Economic stability means maintaining stable prices and full employment and keeping economic growth reasonably smooth and steady. Price stability means avoiding inflation or deflation. Full employment occurs when an economy’s scarce resources, especially labor, are fully utilized.",9_12_louis,1,35.98,12.8,15,16.24,15.6,10.86,13.5,14.59
Efficient market hypothesis (EMH),The theory that the current price of a stock in a corporation reflects all relevant information about the stock’s current and future earnings prospects.,9_12_louis,1,38.66,13.8,0,13.93,15.9,11.41,16,16.27
Elastic currency,"Currency whose supply can be increased or decreased to meet the demands of the economy, and used by a central bank to provide financial stability and achieve economic goals.",9_12_louis,1,42.04,14.6,0,11.91,16.6,12.15,19.5,18.5
Elastic demand,"The type of demand that exists when the percentage change in quantity demanded is greater than the percentage change in price; that is, consumers are very sensitive to a change in the price of a good or service.",9_12_louis,1,49.83,15.8,0,9.41,19.1,9.26,24,19.41
Elasticity of demand,The ratio of the percentage change in quantity demanded of a good or service to the percentage change in its price; a measure of the responsiveness of buyers to a change in the price of a good or service.,9_12_louis,1,48.81,16.1,0,7.73,18.1,8,24.5,19.7
Electronic benefit transfer (EBT),An electronic system that allows a recipient to receive financial benefits from the government via a debit card. The recipient uses the EBT card to make purchases from retailers.,9_12_louis,1,39.84,11.3,0,11.71,10.2,10.89,11.25,14.08
Equilibrium wage,The wage at which the quantity of labor supplied and quantity of labor demanded are equal.,9_12_louis,1,55.24,9.5,0,9.28,8.7,9.36,11,11.4
Excess reserves,Amount of funds held by a depository institution in its account at a Federal Reserve Bank in excess of its required reserve balance and its contractual clearing balance.,9_12_louis,1,34.6,15.4,0,12.25,16.4,10.66,18,16.91
Excludability,The property of a good or service whereby the seller can keep nonbuyers from obtaining the good or service.,9_12_louis,1,60.65,9.5,0,9.57,10.1,8.73,12.5,13.92
Exempt (from withholding),"Free from withholding of federal income tax. A person must meet certain income, tax liability, and dependency criteria. This does not exempta person from other kinds of tax withholding, such as the Social Security tax.",9_12_louis,1,42.68,10.2,12.5,11.06,9.2,8.28,7.5,12.68
Expansionary monetary policy,Actions taken by the Federal Reserve to lower interest rates and thereby encourage spending by consumers and businesses.,9_12_louis,1,36.28,12.7,0,15.31,14.5,14.18,13,16.09
Explicit cost,"A cost that involves actually laying out money. A direct expense that a business incurs, such as rent, salaries, wages, or utility bills.",9_12_louis,1,68.26,6.6,0,9.03,7.9,10.39,5.75,8.08
Federal student loan,A loan provided by the government to postsecondary students and their parents to assist in paying for education.,9_12_louis,1,44.75,11.5,0,12.7,12.4,10.67,13,13.87
Financial asset,A contract that states the conditions under which one party (a person or institution) promises to pay another party cash at some point in the future.,9_12_louis,1,53.55,12.3,0,9.99,14,7.96,16,13.48
Fiscal agent,A person or organization serving as another's financial representative.,9_12_louis,1,-22.27,18.6,0,20.27,16,12.86,7.5,21.38
Flexible exchange rate,A system in which supply and demand determine exchange rates.,9_12_louis,1,61.33,7.2,0,10.82,8.1,12.03,5,8
Full-time employment,"Although defined by the U.S. Bureau of Labor Statistics as employment of 35 hours or more in a week, the matter of ""full-time employment"" is generally determined by the employer.",9_12_louis,1,56.25,9.1,0,9.56,9.5,11.22,10.5,12.67
Future value,The value of an asset or cash at a specified date in the future that is equal in value to a specified sum today.,9_12_louis,1,64.04,10.3,0,4.3,8,6.8,14,11.27
Future value equation,"FV=PV (1+i)n, where:",9_12_louis,1,119.19,-2.7,0,-2.38,8.3,19.58,0.5,1.2
"i = Interest rate, which has a great effect on future value. The interest rate in this formula must be written in decimal form, such as 0.03 instead of 3%.","n = This is the number of periods (such as years) money is saved and interest is applied. If money were to be saved for 3, 5, 7 or 10 years, then 3, 5,7, or 10 would be ""n"" in the calculation.",9_12_louis,1,76.05,7.7,0,2.27,6.2,9.27,12,11.13
Gainful employment,"A job, especially one taken after graduation, that is suited to the ability and potentiality of the one employed.",9_12_louis,1,35.27,13.1,0,10.79,11.6,9.57,13.5,16.02
General-purpose reloadable (GPR) prepaid card,A prepaid card that is branded as a “general-purpose” reloadable (GPR) card. A prepaid GPR card allows consumers to reload the card with additional funds and even set up direct deposits to the card.,9_12_louis,1,71.14,7.6,0,9.74,9.9,9.59,8.5,7.98
Government securities,"Bonds, notes, and other debt instruments sold by a government to finance its expenditures.",9_12_louis,1,57.27,8.8,0,12.81,11.5,11.1,9,11.31
Government securities auction,A sale of government securities in which competitive bidding determines their yield.,9_12_louis,1,33.92,11.5,0,16.63,13.2,10.81,9,14.8
Gross income,The total amount earned before any adjustments are subtracted.,9_12_louis,1,53.88,8,0,15.11,11.3,11.1,5.5,12.49
Gross private investment,"Spending by businesses on machinery, factories, equipment, tools, and construction of new buildings.",9_12_louis,1,41.36,10.7,0,18.84,17,12.78,10.5,14.43
IRA (individual retirement account),"A retirement account that allows individuals to direct pretax or after-tax income, up to specific annual limits, toward investments that can grow.",9_12_louis,1,15.31,16.6,0,14.62,16.3,10.47,17,17.89
Implicit cost,"An indirect cost that does not require an outlay of money; it is measured by the value, in dollar terms, of forgone benefits.",9_12_louis,1,56.59,11.1,0,7.96,11.2,9.58,13.5,12.68
Index fund,A mutual fund with the objective to match the composite investment performance of a large group of stocks or bonds such as those represented by the Standard and Poor’s 500 index.,9_12_louis,1,48.47,14.2,0,10.8,16.5,11.8,21.5,20.14
Index number,A number used to represent the change in value of a magnitude (frequently of price levels) between the base date and a different date. Indices typically have a value of 100 on the base date.,9_12_louis,1,62.17,8.9,0,7.6,8.3,7.66,11.25,11.57
Inefficiency,A condition that results when production of goods and services involves wasted resources or when it is possible to reallocate resources in a way that would generate greater consumer satisfaction.,9_12_louis,1,32.57,16.2,0,15.21,19.6,11.44,21,18.67
Inelastic demand,"The type of demand that exists when the percentage change in quantity demanded is less than the percentage change in price; that is, consumers are not very sensitive to a change in the price of a good or service.",9_12_louis,1,48.81,16.1,0,8.72,19.1,8.81,24.5,19.7
Initial Public Offering (IPO),A company’s first sale of stock to the public.,9_12_louis,1,87.72,3.3,0,4.78,2.9,5.84,4.5,8.04
Institutions,A self-sustaining system of shared beliefs about how parties interact.,9_12_louis,1,44.41,9.6,0,15.46,12.3,13.61,6,12
Interest rate effect,The effect on consumer spending and investment spending caused by a change in the aggregate price level on the purchasing power of consumers' and firms' money holdings.,9_12_louis,1,44.07,13.8,0,12.89,16.8,10.82,16.5,15.24
Internalizing the externality,Altering incentives so that individuals and firms incorporate the costs and benefits that have been shifted to third parties into their decisionmaking.,9_12_louis,1,23.77,15.4,0,16.71,17.4,11.9,17,19.71
Investment banker,Someone who works with a business to determine how much money should be raised to accomplish the goals of the business and the price and number of shares that should be sold to reach those financial goals.,9_12_louis,1,59.3,14.2,0,9.64,18.6,8.46,21.5,18.04
Investors,People of institutions who provide money or other assets to a company in return for possible financial gain in the future.,9_12_louis,1,33.24,13.8,0,10.62,12,8.44,14.5,12.21
Keynesian multiplier effect,"An effect where an increase (or decrease) in a component of aggregate demand (i.e., consumption, investment, or government spending) produces an increase (or decrease) in national income that is greater than the initial increase (or decrease) in the component. This greater-than-proportional change in national income is the result of chain reactions that generate more (or less) activity than the original increase (or decrease).",9_12_louis,1,31.04,16.8,0,15.27,21.8,10.21,22.25,18.95
Labor force participation rate,"The number of people who are either employed or are actively looking for work, usually expressed as a percentage.",9_12_louis,1,52.19,10.7,0,11.08,11.6,9.57,12.5,13.92
Labor market,The exchange of labor by workers who want to sell labor and businesses that want to purchase labor. (Also known as the job market).,9_12_louis,1,64.04,10.3,0,8.13,11.8,7.46,13,11.27
Lags,"The time between the recognition of an economic problem, the negotiation and implementation of a solution, and the realization of results in the economy.",9_12_louis,1,21.74,16.2,0,13.7,16.1,10.75,19,21.27
Loanable funds,Money made available to borrowers through the actions of savers.,9_12_louis,1,69.79,6,0,12.56,9.5,10.45,5,8
Loanable funds market,"A virtual market that consists of (i) borrowers, including money demanders, consumers, and firms who want loans to buy goods and services or invest in capital or inventory; and (ii) savers, such as money suppliers, households, and firms that save money. It is the market in which the supply and demand for loanable funds determines the interest rate.",9_12_louis,1,42.04,14.6,0,11.33,16.9,10.79,19,17.12
Long-term savings goals,Goods or services you want to buy in a year or longer.,9_12_louis,1,101.6,2.1,0,2.13,1.4,6.86,5,4.8
Magnetic stripe,A magnetic stripe on the back of a plastic card that activates card information stored on the card which swiped through a card reader; also called a magnetic strip or magstripe.,9_12_louis,1,56.93,13,0,10.46,16.4,9.76,19.5,16.27
Mandatory spending,Government spending required by current law.,9_12_louis,1,48.47,8,0,15.88,12.2,11.83,3,2.4
Marginal utility,The change in total usefulness or satisfaction a person derives from consuming one more unit of a product. The benefit gained from consuming one additional unit of a good or service.,9_12_louis,1,55.74,9.3,0,10.5,9.4,9.5,10.75,12.65
Market (marketplace),"Buyers and sellers coming together to exchange goods, services, and/or resources.",9_12_louis,1,43.39,9.9,0,16.86,14.4,9.92,5.5,4.4
Market basket,A selected group of consumer goods and services whose prices are tracked for calculating a consumer price index and measuring the cost of living.,9_12_louis,1,55.58,11.5,0,12.25,14.5,10.09,15,14.6
Maturity (of bonds),The time period during which a bond makes coupon payments.,9_12_louis,1,78.25,4.8,0,9.08,6.6,12.03,5,8
Means-tested,Programs in which eligibility depends on the level of one’s current income or assets.,9_12_louis,1,40.35,11.1,0,11.53,9.8,11.1,7,8.46
Median value,The middle number of a set of numbers; the number that divides numerically ordered data into two equal halves.,9_12_louis,1,52.19,10.7,0,10.21,10.9,9.57,10.5,9.71
Metadata,Information describing a data series.,9_12_louis,1,-1.29,14.7,0,15.4,12.2,16.52,3.5,18
Microloan,"A small, short-term loan at low interest, often used by self-employed individuals or entrepreneurs for start-up expenses, inventory, or equipment.",9_12_louis,1,25.8,14.6,0,17.23,18.5,10.16,15,16
Money creation,An increase in the money supply generated by the banking system through the lending of reserves.,9_12_louis,1,55.24,9.5,0,11.42,10.4,11.34,8,8.9
Money neutrality,"An economic theory stating that, in the long run, changes in the money supply cause changes in variables, such as price and wages, but not in unemployment or real (or inflation-adjusted) variables, such as real GDP (gross domestic product) and real consumption.",9_12_louis,1,28.85,19.7,0,12.49,24.3,11.36,27,23.47
Mortgage debt,A debt owed for loans for homes and real estate.,9_12_louis,1,95.17,2.5,0,3.28,1.9,12.03,4,4
NASDAQ,The National Association of Securities Dealers Automated Quotations system—a stock exchange where trades are made electronically.,9_12_louis,1,-3.99,17.8,0,23.37,20.2,13.31,14,21.4
Negative externality,A negative side effect that results when the production or consumption of a good or service affects the welfare of people who are not the parties directly involved in a market exchange.,9_12_louis,1,39,15.8,0,11.04,17.2,10.16,20,17.8
Nonexcludability,The inability to keep nonpayers (free riders) from obtaining benefits from a certain good or service.,9_12_louis,1,38.32,11.9,0,12.53,11.9,9.36,12,16.4
Non-liquid asset,An asset that is not easily convertible into cash with relatively little loss of value in the conversion process.,9_12_louis,1,43.73,11.9,0,11.43,11.6,9.57,13.5,16.02
Nonprofit school,"Any public school, including public colleges and schools not a part of the public school system, that operates with no intention of making a profit.",9_12_louis,1,54.56,11.9,0,11.09,14.4,9.3,15.5,14.8
Nonrivalry (in consumption),The property of a good or service whereby one person's benefit from a certain good or service does not reduce the benefit available to others.,9_12_louis,1,46.1,13,0,9.93,13.3,9.3,15.5,13.2
Open data,Data exempt from U.S. copyright laws and free for everyone to use without restriction.,9_12_louis,1,57.27,8.8,0,11.13,10.1,12.23,8,8.46
Output potential,Points along the production possibilities frontier.,9_12_louis,1,14.63,12.7,0,22.67,17.7,14.46,4,15.73
Overdraft service,Provided by financial institutions to generally approve and pay overdraft transactions when the account holder does not have enough funds to cover the transactions in return for a fee.,9_12_louis,1,33.58,15.8,0,14.28,18.4,9.98,20.5,18.5
Payroll deduction,Amounts subtracted from gross pay.,9_12_louis,1,83.32,2.9,0,11.92,9.3,13.36,2.5,10
Per capita,Per person. Determined by dividing the total quantity by the total population.,9_12_louis,1,25.46,12.7,0,13.27,10.9,12.13,9,18.13
Permanent insurance,"A policy that does not expire until death, or age 100.",9_12_louis,1,77.23,5.2,0,3.69,2.9,8.49,5.5,8.04
Persistent identifier (of data),Internet address where data can be viewed or downloaded.,9_12_louis,1,53.88,8,0,11.22,8.2,11.1,5.5,12.49
Personal identification number (PIN),A required code known only by the cardholder that is used to make transactions; the PIN is entered into a terminal and sent to an authorizing entity to verify the account.,9_12_louis,1,40.01,15.4,0,9.3,15.5,9.76,21.5,20.14
Personal income,"The income that individuals receive from all sources, including wages and salaries, dividends and interest, rents, profits, and transfer payments.",9_12_louis,1,34.26,13.5,0,17.81,18.5,13.31,14,16
Personal saving rate,"The ratio of personal saving to disposable personal income; the fraction of income, after taxes, that is saved.",9_12_louis,1,44.75,11.5,0,11.42,12.2,10.67,12,11.64
Pigovian tax,A tax used to correct for a negative externality.,9_12_louis,1,45.42,9.2,0,6.7,4.5,7.59,5.5,12.49
Point-of-sale (POS) terminal,An electronic device for the acceptance of payment cards; POS refers to the area or location where customers can pay for their purchases.,9_12_louis,1,56.59,11.1,0,11.49,13.6,11.64,15.5,16.16
Policy lags,"The time between the recognition of an economic problem, the negotiation and implementation of a solution, and the realization of results in the economy.",9_12_louis,1,21.74,16.2,0,13.7,16.1,10.75,19,21.27
Policy rate,"The interest rate that is used by a central bank to set and communicate its monetary policy stance (or position). In the United States, the Federal Reserve uses the federal funds rate as the policy rate.",9_12_louis,1,53.21,10.3,0,8.7,9.6,9.35,13,13.87
Potential GDP,The real output an economy can produce when it fully employs its available resources.,9_12_louis,1,57.27,8.8,0,11.53,9.8,11.1,7,8.46
Poverty threshold,The dollar amount the U.S. Census Bureau uses to determine a family's or person's poverty status.,9_12_louis,1,63.36,6.4,0,8.25,6.7,13.9,3.5,5.7
Present bias,Choosing what makes one happy in the moment.,9_12_louis,1,80.28,4.1,0,6.45,4.4,7.98,3,3.2
Present value equation,"PV=FV [1/(1+i)n], where:",9_12_louis,1,119.19,-2.7,0,-0.46,14.6,19.58,0.5,1.2
"PV = Present value, the amount that's not known but will be solved in the calculations. It's the amount needed today to achieve a determined future goal.","FV = Future value, the amount of money wanted in the future. It is the amount that will be reduced at a determined interest rate to calculate the present value.",9_12_louis,1,65.22,7.8,0,7.53,7.1,8.71,8,9.94
"i = Interest rate, which has a great effect on present value. The interest rate in this formula must be written in decimal form, such as 0.03 instead of 3%.",n = The number of interest payments during a specified time; the number of times interest is applied.,9_12_louis,1,45.76,11.1,0,10.03,10.3,10.98,12,11.51
Primary market,"The market in which new stocks and bonds, in the form of initial public offers (IPOs), are issued.",9_12_louis,1,78.59,6.8,0,6.9,8.8,9.79,8,7.2
Private (or nonpublic) school,"A school owned and operated by an individual; religious institution; partnership; or a corporation other than the state, a subdivision of the state, or the federal government and that is supported primarily with nonpublic funds.",9_12_louis,1,10.57,20.5,0,14.46,22.2,11.24,29.5,26.57
"Private, for-profit college",A college managed and governed by private organizations or corporations with the goal of earning profit.,9_12_louis,1,38.32,11.9,0,14.32,12.8,11.34,9,11.4
Private-label prepaid card,"A merchant-specific card that can be used only at a particular merchant or chain of merchants (e.g., Sears or JC Penney); a card issued by and used for purchases at a retailer. Private-label cards cannot be used on a general-purpose card network.",9_12_louis,1,58.62,10.3,0,9.52,12.1,11.07,13.5,12.21
Production possibilities frontier,A graphic representation of output combinations that can be produced given an economy's available resources and technology.,9_12_louis,1,11.92,15.8,0,18.27,16.7,12.84,12.5,16.21
Productive capacity,The maximum output an economy can produce with the current level of available resources.,9_12_louis,1,48.81,9.9,0,12.81,10.8,12.23,8,11.31
Proprietary data,Data subject to U.S. copyright laws; the author can restrict the distribution of the data.,9_12_louis,1,56.25,9.1,0,9.97,9.9,11.75,7.5,8.67
Public school,A school that receives monetary support from public funds.,9_12_louis,1,62.34,6.8,0,12.5,9.3,11.1,4.5,8.04
Qualified distribution,A reason you may withdraw money from a Roth IRA without the withdrawal being subject to tax.,9_12_louis,1,62.68,8.7,0,8,8.1,8.19,8.5,9.15
Quantitative easing (QE),A monetary policy in which a central bank makes large-scale asset purchases designed to bolster financial market conditions.,9_12_louis,1,36.28,12.7,0,16.24,15.5,14.18,14,18.31
Real,"Monetary values, wages, or prices, adjusted for inflation and measured in constant prices—that is, in prices of a given or base period. Real monetary values are obtained by adjusting nominal wages or prices with a price measure such as the CPI.",9_12_louis,1,59.13,10.1,0,10.73,12.3,9.66,13.75,14.05
Real asset,A tangible item that has intrinsic value due to its substance and properties.,9_12_louis,1,58.28,8.4,0,10.37,8.6,10.35,8.5,14.43
Relative price,The cost of a good or service in terms of another good or service.,9_12_louis,1,82.65,5.2,0,3.65,3.4,5.46,7,5.6
Relative scarcity,"Demand for a resource, good, or service relative to the available supply of that resource, good, or service.",9_12_louis,1,61.67,9.1,0,10.15,11.4,8.92,9,9.42
Reloadable card,A prepaid card that allows the cardholder to add more funds (money) to the card.,9_12_louis,1,81.63,5.6,0,6.49,6.8,8.59,7.5,8.67
Reservation rate,The lowest rate of return that banks are willing to accept for lending out funds.,9_12_louis,1,81.63,5.6,0,7.65,7.1,8.59,6.5,6
Reserve requirement,The percentage of a bank's deposits it is required by law to hold.,9_12_louis,1,83.66,4.8,0,5.03,4.6,9.14,6.5,8.28
Reserves (bank),The sum of cash that banks hold in their vaults and the deposits they maintain with Federal Reserve banks.,9_12_louis,1,77.57,7.2,0,9.28,9.9,9.57,10.5,9.71
Retained earnings,"A portion of a company’s profit used as savings, to pay off debt, or to reinvest in the company.",9_12_louis,1,69.11,8.3,0,5.63,7.4,8.73,11.5,9.71
Retirement,"Permanently leaving a job, career, occupation, or active working life.",9_12_louis,1,27.49,11.9,0,14.3,12.3,12.03,6,12
Rivalry (in consumption),The property of a good or service whereby consumption by one party excludes other parties from obtaining the benefit.,9_12_louis,1,43.73,11.9,0,12.65,12.6,10.4,13.5,16.02
Rule of law,Concept that holds that government and its officers must exercise their power according to established regulations and legal principles.,9_12_louis,1,26.81,14.2,0,18.45,17.3,12.06,16.5,20.23
Seasonal unemployment,Unemployment caused by changes in the weather or seasons.,9_12_louis,1,62.34,6.8,0,11.86,8.7,11.1,4.5,8.04
Secured loan,A loan that is backed with collateral; a loan for which the lender requires and the borrower offers property as a guarantee of repayment.,9_12_louis,1,55.58,11.5,0,10.1,12.9,10.75,17,17.93
Shoe-leather costs,The figurative costs of replacing shoes more often because of increased trips to the bank. This would occur during times of inflation when there is a real cost associated with holding currency in non-interest-bearing checking accounts.,9_12_louis,1,36.28,12.7,0,13.98,13.8,11.99,12,13.87
Short-run aggregate supply curve,A graphical depiction of the relationship between the aggregate price level and the quantity of aggregate output supplied.,9_12_louis,1,27.83,13.9,0,15.95,15,10.67,15,18.31
Signal,A way to reveal credible information to another party.,9_12_louis,1,28.5,11.5,0,9.94,7.1,9.35,6.5,12.49
Skill premium,The difference between the average earnings of those with a four-year college degree and those without.,9_12_louis,1,55.24,9.5,0,13.63,12.5,7.39,9,8.9
Skimming,An illegal method of stealing credit card information by using a small electronic device that scans and stores credit card data. The stolen credit card information can be used to make fraudulent purchases or clone new cards.,9_12_louis,1,52.7,10.5,0,11.89,11.7,11.38,12.25,12.81
SmartPay Program,The world's largest government charge card and commercial payment program that allows authorized government employees to make purchases on behalf of the U.S. government.,9_12_louis,1,30.2,15,0,17.35,19.2,12.06,19,16.27
Social Security income,The monthly monetary amount received by retired workers who paid into the Social Security system while they worked.,9_12_louis,1,44.75,11.5,0,13.69,13.2,12.42,11,11.64
Socially optimal quantity,The quantity of goods produced that takes private and social costs into account.,9_12_louis,1,66.74,7.2,0,11.7,9.7,11.57,6.5,8.28
Soft inquiry,"Any check of a person’s credit report that occurs when the person’s credit is not being reviewed by a prospective lender. Examples include inquiries as part of a background check, a person checking his or her own score, and checks by a financial institution with which a person already does business.",9_12_louis,1,54.05,12.1,0,10.97,14.4,8.93,15.25,13.34
Stigma,A stain on one's reputation; a mark or token of disgrace.,9_12_louis,1,68.77,6.4,0,4.74,4.2,11.36,5.5,8.04
Stimulus packages,"Combinations of tax cuts, subsidies, and increases in government spending.",9_12_louis,1,27.49,11.9,0,17.2,14.2,12.03,8,16
Stock market index,A collection of stocks chosen to represent a particular part of the market.,9_12_louis,1,49.82,9.5,0,9.5,7.9,9.14,8.5,14.43
Stock mutual fund,A mutual fund that buys stock in order to make profits for the investors.,9_12_louis,1,74.19,6.4,0,6.55,5.8,9.97,7,8.46
Student loan default,A student loan with no likelihood of being repaid.,9_12_louis,1,62.34,6.8,0,7.39,5.1,9.35,4.5,8.04
Stylized fact,An economic phenomenon consistently described by data but not systematically defined by theory.,9_12_louis,1,-9.41,17.8,0,18.43,15.1,14,11.5,20.58
Subsidized loan,A loan in which the government pays the interest on the loan for a specific time.,9_12_louis,1,72.16,7.2,0,5.97,6,7.39,11,11.4
Substitute (resource),Productive inputs that can be used in place of one another.,9_12_louis,1,68.77,6.4,0,6.82,5,7.05,6.5,8.04
Tax deductions,A fixed amount or percentage permitted by taxation authorities that a taxpayer could subtract from his or her gross income to reduce taxable income.,9_12_louis,1,38.66,13.8,0,13,15.1,11.41,17,17.93
Tax refund,Money owed to taxpayers when their total tax payments are greater than the total tax. Refunds are received from the government.,9_12_louis,1,69.28,6.2,0,10.24,7.8,9.42,5.25,6.1
Term insurance,"A policy providing coverage for a specific time period, such as 10 years. When the policy term ends, the insurance expires.",9_12_louis,1,52.36,8.6,0,8.56,6.9,11.68,7.75,15.63
Time series data,A collection of observations of data items obtained through repeated measurements over time.,9_12_louis,1,41.36,10.7,0,17.1,14,12.78,10.5,17.51
Trade deficit,The difference that results when the value of a country’s imports exceeds the value of its exports.,9_12_louis,1,62.68,8.7,0,10.38,10.1,9.12,8.5,6.8
Trade surplus,The difference that results when the value of a country’s exports exceeds the value of its imports.,9_12_louis,1,62.68,8.7,0,10.38,10.1,9.12,8.5,6.8
Transfer,"A one-way payment for which no money, good, or service is given or exchanged.",9_12_louis,1,74.19,6.4,0,7.01,7.1,5.46,6,5.6
Treasuries,"The collective name for the bills, bonds, and notes issued by the U.S. Treasury on behalf of the federal government.",9_12_louis,1,69.79,6,0,7.92,6.4,12.03,5.5,8
Underemployed,Wanting a full-time job but having only a part-time job; being overqualified for a job and receiving less pay than would be earned at a job requiring a higher skill level.,9_12_louis,1,48.47,14.2,0,8.95,15.5,8.74,18.5,16.27
Underemployment (resource),A situation that occurs when scarce resources are not put to their highest-valued use in the production of goods and services.,9_12_louis,1,58.62,10.3,0,11.43,12.9,10.69,13.5,12.21
Unintended consequences,The unexpected and unplanned results of a decision or action.,9_12_louis,1,44.41,9.6,0,10.82,8.1,12.03,6,12
Universal resource locator (URL),An internet address that allows the reader of a data citation to access the data directly from a website.,9_12_louis,1,43.73,11.9,0,8.99,9.6,10.4,12.5,13.92
Unsecured loan,A loan not backed with collateral.,9_12_louis,1,73.85,4.5,0,6.25,4.3,9.2,3,9.07
Volatile,Likely to change in a sudden or extreme way.,9_12_louis,1,87.72,3.3,0,3.51,1.9,5.84,3.5,3.6
"W-4 form, Employee's Withholding Allowance Certificate",A form completed by the employee and used by the employer to determine the amount of income tax to withhold.,9_12_louis,1,59.64,9.9,0,8.24,9.5,8.58,14,16
Willingness to pay,The maximum amount that a buyer will pay for a good or service.,9_12_louis,1,83.66,4.8,0,4.16,3.5,6.71,6.5,8.28
Budget (elementary),A plan for keeping track of your money.,pre_louis,1,88.74,2.9,0,2.86,1.4,6.01,3,3.2
Business (elementary),An organization that produces the goods and services that are sold to consumers in the market.,pre_louis,1,63.7,8.4,0,10.73,9.8,8.38,8,8.9
Capital resources (elementary),"Goods that are made by people and used to produce other goods and services. Examples of capital goods are tools, machines, and buildings.",pre_louis,1,76.72,5.4,0,9.55,7.9,8.33,5.75,6.34
Circular flow of economy (elementary),"Exchange of resources, goods, and money.",pre_louis,1,73.85,4.5,0,10.08,9,6.57,2,2.4
Collateral (elementary),Something of value that a bank is able to keep if a borrower fails to repay a loan.,pre_louis,1,78.59,6.8,0,3.36,4.9,6.28,9,9.42
Command economy (elementary),An economic system where the government owns the resources and decides what goods and services are produced. The government also decides on price.,pre_louis,1,59.8,7.8,0,12.28,9.7,9.01,6.25,6.34
Competition (elementary),When there are many buyers and sellers of a product. Sellers compete with other sellers to sell products to buyers. Buyers compete with other buyers for goods and services.,pre_louis,1,70.09,5.9,3.1,9.43,6.8,7.38,3.833333333,3.88
Complements (elementary),"Goods that are used together, such as paper and markers.",pre_louis,1,78.25,4.8,0,7.34,5.7,5.71,5,4
Costs of production,The amount producers pay for the resources used to produce a product.,pre_louis,1,76.22,5.6,0,9.38,7.3,9.5,6,8.13
Criteria (elementary),Things that are really important to think about when making a decision.,pre_louis,1,59.3,8,0,10.37,8.1,6.86,8,8.13
Debt (elementary),The money a person owes when they borrow.,pre_louis,1,80.28,4.1,0,4.31,2.6,6.01,3,3.2
Division of labor (elementary),Having people complete one small part of a larger task when producing a good or service.,pre_louis,1,72.16,7.2,0,8.52,8,7.39,8,8.9
Expenses (elementary),Money spent on goods and services.,pre_louis,1,90.77,2.1,0,6.25,4.3,6.57,2,2.4
External costs,Happen when a person does something that benefits himself or herself that unintentionally makes another person worse off.,pre_louis,1,36.28,12.7,0,15.6,14.8,7.16,12,11.64
Human resources (elementary),People who do mental and/or physical work to produce goods and services.,pre_louis,1,59.3,8,0,10.37,8.5,9.5,6,8.13
Incentive (elementary),A reward that makes people bettor off or penalty that makes people worse off.,pre_louis,1,74.19,6.4,0,8.23,7.1,7.71,6,5.6
Income (elementary),Payment people earn for the work they do.,pre_louis,1,88.74,2.9,0,4.31,2.6,0.4,3,3.2
Interest (elementary),Money paid to customers for keeping their money at the bank. Interest is also money customers pay to banks for loans received from the bank.,pre_louis,1,75.71,5.8,0,8.28,6.7,8.05,5.75,6.6
Intermediate good (elementary),Goods made by people that become part of another good. The thread used to make a shirt and the flour used to make cookies are intermediate goods.,pre_louis,1,83.15,5,0,7.24,6.1,1.25,6.75,6.88
Lender (elementary),Someone who gives money or some item to a borrower and expects the borrower to repay the money or return the item.,pre_louis,1,57.61,10.7,0,6.96,9.5,7.6,13,10.62
Loan (elementary),"Money given to someone for a short time that must be paid back, usually with interest.",pre_louis,1,72.16,7.2,0,7.42,7.5,6.4,9,11.4
Market economy (elementary),"An economic system where buyers and sellers meet to exchange goods and services, and the buyers and sellers decide on price.",pre_louis,1,58.62,10.3,0,10.91,12.4,8.44,11.5,10.3
Mixed economy (elementary),An economic system where buyers and sellers meet to exchange goods and services and decide on price with some government involvement in the economy.,pre_louis,1,47.12,12.7,0,13,15.1,9.43,16,14.6
Negative incentive,A penalty that discourages people from behaving in a certain way.,pre_louis,1,60.31,7.6,0,10.01,7.6,8.49,6.5,11.67
Opportunity cost (elementary),The best thing given up when a choice is made; the second choice.,pre_louis,1,92.12,3.6,0,4.57,4.3,0.64,5.5,5.2
Positive incentive,A reward that encourages people to behave in a certain way.,pre_louis,1,68.77,6.4,0,6.82,5,5.62,5.5,8.04
Price (elementary),The amount of money that a consumer must pay to buy a good or service.,pre_louis,1,90.09,4.4,0,3.41,3.6,5.43,6.5,6
Products (elementary),Goods or services.,pre_louis,1,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
Saving (elementary),Keeping some income to buy things in the future.,pre_louis,1,87.72,3.3,0,6.06,4,9.35,3.5,3.6
Savings (elementary),Money set aside for future spending.,pre_louis,1,73.85,4.5,0,8.17,5.9,9.2,2,2.4
Services (elementary),Activities people do for us.,pre_louis,1,49.48,7.6,0,4.96,3.7,7.04,2.5,10
Specialization (elementary),"Working in a specific job producing a specific good or service, and relying on other workers to produce other goods and services.",pre_louis,1,40.69,13.1,0,10.68,12.7,9.75,15,14.25
Taxes (elementary),Money people are required to pay government.,pre_louis,1,55.91,7.2,0,10.74,7.6,6.24,3.5,2.8
Trade (elementary),The exchange of goods or services for other goods or services or for money.,pre_louis,1,74.19,6.4,0,7.42,6.4,5.46,6,5.6
Transfer payments (elementary),Money collected from some people and distributed to other people.,pre_louis,1,44.41,9.6,0,13.14,9.9,7.29,6,12
Wages (elementary),Income people receive for work that they do.,pre_louis,1,80.28,4.1,0,6.45,4.4,0.4,3,3.2
A-1 PAPER,See FIRST CLASS PAPER.,palgrave,0,92.8,1.3,0,2.9,2.9,0.2,1,1.6
A-NOTE,A TRANCHE of SENIOR DEBT created out of a FIRST LIEN COMMERCIAL MORTGAGE. See also B-NOTE.,palgrave,0,80.28,4.1,0,6.45,4.7,11.93,4,8.2
AAU,See ASSIGNED AMOUNT UNIT.,palgrave,0,92.8,1.3,0,7.25,6.5,11.73,1,1.6
AB,See AKTIEBOLAG.,palgrave,0,35.61,8.8,0,7.1,12.5,11.63,1,20.8
ABA,See AMERICAN BANKERS ASSOCIATION.,palgrave,0,-8.73,15.5,0,18.85,15.9,11.73,3,11.6
ABA TRANSIT NUMBER,"In the United States, a unique identifier assigned by the AMERICAN BANKERS ASSOCIATION to a BANK, which is used in rout- ing of CHECKS and WIRE TRANSFERS.",palgrave,0,60.99,11.5,0,9.64,14.4,10.24,16.5,13.76
ABANDON,"The act of not exercising or selling an OPTION, occurring when the contract ends OUT-OF-THE-MONEY.",palgrave,0,47.79,10.3,0,12.69,12.4,10.7,10.5,11.33
ABANDONED OPTION,An OPTION that has not been EXERCISED when IN-THE-MONEY. See also ABANDONMENT.,palgrave,0,65.39,5.6,0,9.62,7.9,7.88,3,9.07
ABANDONMENT,"(1) The voluntary surrender of right of title to real or financial property. (2) Within the INSURANCE sector, the transfer of rights to damaged or lost property from the INSURED to the INSURER. (2) See also ABANDONMENT CLAUSE.",palgrave,0,32.91,18.1,0,10.63,21,12.17,27,22.57
ABANDONMENT CLAUSE,A clause in an INSURANCE POLICY that gives the INSURED the right to abandon property and make a CLAIM for a full SETTLEMENT from the INSURER; the same clause also gives the insurer rights to the abandoned property. See also ABANDONMENT.,palgrave,0,59.13,10.1,0,10.04,11.3,9.27,14.25,13.08
ABANDONMENT OPTION,"In REAL OPTION VALUATION, the OPTION a company has to abandon or exit an existing CAPITAL INVESTMENT before the end of the project’s useful life. This option can be thought of as a form of PUT OPTION. See also DEFERRAL OPTION, EXPANSION OPTION.",palgrave,0,48.5,10,12.5,8.69,7.9,7.28,8.833333333,11.3
ABATEMENT,A reduction in a payment due from an individual or company with insufficient funds or ASSETS to meet the full amount. An abatement may lead to cancellation of payments or some other form of RESTRUCTURING.,palgrave,0,53.71,10.1,0,10.26,10.2,8.56,11.75,12.71
ABBREVIATED ACCOUNTS,"In the United Kingdom, a short form set of FINANCIAL STATEMENTS that can be filed by qualified small or medium- sized enterprises.",palgrave,0,57.61,10.7,0,10.68,12.9,9.75,14,14.25
ABCP,See ASSET-BACKED COMMERCIAL PAPER.,palgrave,0,8.2,13.1,0,18.85,17.1,15.68,3,11.6
ABILITY TO PAY,See ABILITY TO PERFORM.,palgrave,0,50.5,7.2,0,4.35,4.1,11.73,2,11.6
ABILITY TO PERFORM,"A COUNTERPARTY’s financial capacity to per- form on its contractual obligations. Strong counterparties, with high CREDIT RATINGS, have a greater ability to perform than weak, or poorly rated, ones. Ability to perform is the essence of financial CREDIT ANALYSIS and is distin- guished from WILLINGNESS TO PERFORM. Also known as ABILITY TO PAY.",palgrave,0,49.52,9.7,13,12.46,11,10.25,8.625,12.11
ABOVE PAR,"A trading price or valuation on a SECURITY, LOAN, or other ASSET that is greater than the original PAR VALUE (which is often set at 100). See also BELOW PAR.",palgrave,0,64.71,8,0,5.73,6.2,8.59,8,10
ABOVE THE LINE,"All INCOME STATEMENT entries that appear above the NET INCOME entry, i.e., prior to the distribution of residual profits. EXTRAORDINARY ITEMS and EXCEPTIONAL ITEMS appear above the line. See also BELOW THE LINE.",palgrave,0,51.85,8.8,9.7,11.75,9.6,9.45,5.833333333,9.25
ABSOLUTE LIABILITY,"LIABILITY that occurs without fault, or an action deemed to be contrary to the public good that is neither negligent nor willful. A company found to be in breach of absolute liability may be required to pro- vide restitution to injured parties.",palgrave,0,50.16,11.5,0,10.21,11.8,10.32,13.5,12.21
ABSOLUTE PRICING MODEL,See EQUILIBRIUM PRICING MODEL.,palgrave,0,8.2,13.1,0,14.5,12.4,15.68,2,11.6
ABSOLUTE PRIORITY RULE,"A legal concept indicating that if a pub- lic company DEFAULTS, SHAREHOLDERS are only entitled to recover their INVESTMENTS after CREDITORS have been fully repaid. In most BANKRUPTCY cases shareholders receive little, if any, restitution since they are subordinate to all other claimholders. Absolute priority also extends to the broad category of creditors, where secured creditors receive payment before senior unsecured creditors, who receive payment before junior and subordi- nated creditors. See also SUBORDINATION.",palgrave,0,18.86,15.2,16.2,17,16.3,10.32,14.5,15.51
ABSOLUTE RATE SWAP,"An INTEREST RATE SWAP where the fixed leg is expressed as an outright FIXED RATE, rather than as an initial SPREAD to aBENCHMARK GOVERNMENT BOND.",palgrave,0,71.48,9.5,0,10.62,13.9,9.93,14.5,11.6
ACCA,See ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS.,palgrave,0,-10.76,16.3,0,22.67,17.7,14.46,5,22.4
ACCELERATOR,"A firm that provides start-up ventures with initial, or seed, CAPITAL, administrative services, and business plan support. Accelerators often focus on start-ups that have been rejected by INCUBATORS or VENTURE CAPITAL groups because of insufficient development work. Accelerators may be compensated through fees or pre-INITIAL PUBLIC OFFERING EQUITY stakes.",palgrave,0,21.09,14.4,14.6,17.8,16.5,11.53,12.16666667,13.87
ACCEPTANCE,"(1) In INSURANCE, an agreement to an offer of coverage that creates a binding CONTRACT; this is generally accomplished when an INSURER issues a policy and an INSURED pays a PREMIUM. (2) In banking, a BANKER’S  or BILL OF EXCHANGE.",palgrave,0,30.88,18.9,0,9.59,20.9,12.73,27,23
ACCEPTING HOUSE,"In the United Kingdom, a financial firm (i.e., BANK, MERCHANT BANK) that GUARANTEES that a BILL OF EXCHANGE or BANKER’S ACCEPTANCE created by a DRAWER will be paid to the BENEFICIARY or BEARER on the due date. The accepting house charges a fee in the form of a DISCOUNT on the amount of the bill for assuming the draw- er’s CREDIT RISK.",palgrave,0,56.93,13,0,8.08,15,9.76,19,16.92
ACCEPTOR,"A party that becomes liable for a BILL OF EXCHANGE that has been drawn by an original DRAWER. By signing acceptance, liability shifts to the acceptor.",palgrave,0,58.28,8.4,0,9.03,7.7,9.75,7.5,11.35
ACCOMMODATION BILL,"A BILL OF EXCHANGE signed by a party, who then becomes the guarantor of payment. If the ACCEPTOR fails to pay the bill when it comes due, the accommodation party assumes full liability.",palgrave,0,63.19,8.5,0,8.64,8.7,8.76,10.25,11.45
ACCOMMODATION LINE,"An agreement by an INSURER to UNDERWRITE a certain amount of business submitted by an INSURANCE BROKER, regardlessof quality. The intent is for the insurer to develop a strong relationship with the broker, to the point where high-quality business (i.e., profitable and/or low RISK) can be regularly concluded.",palgrave,0,30.2,15,0,13.35,16.3,10.09,18,17.93
ACCOMMODATION PAPER,A NEGOTIABLE INSTRUMENT endorsed by a party that does not receive any value in return. Accommodation paper is gen- erally used to help another party secure financing.,palgrave,0,40.85,10.9,0,11.53,9.8,8.98,8.75,12.81
ACCOUNT,(1) A portion of a ledger that is used to record financial trans- actions. Transactions based on the DOUBLE ENTRY ING system result in DEBITS and CREDITS into the relevant portion of the ledger. (2) An invoice reflecting charges and payments between two parties. (3) A separately held and managed balance of cash or ASSETS within a BANK or other financial institution.,palgrave,0,40.01,15.4,0,10.98,17.4,12.31,19,16.27
ACCOUNT PAYEE,"The recipient of a CHECK from a third party, typically the original DRAWER; the check may feature parallel lines on the face that prohibits the payee from endorsing it to another party.",palgrave,0,39,15.8,0,10.69,17.2,9.66,22,19.05
ACCOUNTING CONCEPTS,"In certain ACCOUNTING regimes, 4 central tenets that are to be used in the preparation of a company’s FINANCIAL STATEMENTS; these include the CONSISTENCY CONCEPT, the GOING CONCERN CONCEPT, the MATCHING CONCEPT, and the PRUDENCE CONCEPT.",palgrave,0,34.94,17.3,0,14.86,23,12,23,19.96
ACCOUNTING ENTITY,"Any unit, SUBSIDIARY, PARTNERSHIP, or company for which financial records are maintained and FINANCIAL STATEMENTS are prepared. The records and statements reflect the financial performance and standing of the entity, rather than the owners of the entity.",palgrave,0,52.7,10.5,0,15.95,15.6,10.1,13.25,11.72
ACCOUNTING EQUATION,The fundamental relationship reflected in the BALANCE SHEET of a company that indicates ASSETS must equal LIABILITIES plus CAPITAL.,palgrave,0,9.89,16.6,0,16.88,16.1,11.23,16.5,18.13
ACCOUNTING PERIOD,"A discrete time period for which an ACCOUNTING ENTITY records and prepares its financial records and FINANCIAL STATEMENTS. Internal accounts may have an accounting period of 1 month or 1 quarter, while external accounts (released to the public) may reflect an accounting period of 1 quarter, 6 months, or 1 year.",palgrave,0,45.59,13.2,0,12.02,15.5,9.86,18.25,14.91
ACCOUNTING PROFIT,"The difference between REVENUES and costs (including INTEREST, TAXES, and DEPRECIATION), prepared in accordance with applicable ACCOUNTING principles. Implicit costs, such as OPPORTUNITY COSTS, are excluded from the computation. See also ECONOMIC PROFIT, ECONOMIC VALUE ADDED.",palgrave,0,17,13.9,15.5,18.89,16.1,12.13,10.66666667,18.13
ACCOUNTING RATIOS,See FINANCIAL RATIOS.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
ACCOUNTING VALUE,"An approach to FINANCIAL ANALYSIS that values a company’s COMMON STOCK as a function of EARNINGS PER SHARE and the PRICE/EARNINGS multiple. The higher either variable, the more valuable the stock, and thus the company. See also ENTERPRISE VALUE.",palgrave,0,58.28,8.4,11.2,11.7,10.1,9.95,7.5,10.33
ACCOUNTS,"In the United Kingdom, term for FINANCIAL STATEMENTS.",palgrave,0,63.36,6.4,0,12.25,9.7,7.98,4,8.2
ACCOUNTS PAYABLE TURNOVER,"An estimate of the time that it takes a company to pay on its ACCOUNTS PAYABLE. The resulting figure, number of days of purchases, fluctuates according to seasonal changes, and increasing or decreasing financing needs. The result, which is used in the CASH BUDGETING process, is computed as:where CP is purchases on CREDIT (per defined period), AP is accounts payable. The higher the ratio, the longer a company takes to pay on credit purchases. See also ACCOUNTS RECEIVABLE TURNOVER.",palgrave,0,55.44,9.5,13.7,11.13,10.7,10.42,11.3,12.9
ACCOUNTS RECEIVABLE FINANCING,"Short-term FINANCING obtained by a company through a RECOURSE sale of ACCOUNTS RECEIVABLE to a third party. See also FACTORING, FORFAITING.",palgrave,0,43.9,9.7,0,13.02,10.5,9.42,6.75,11.82
ACCOUNTS RECEIVABLE TURNOVER,"An estimate of the time that it takes a company to collect on its ACCOUNTS RECEIVABLE. The resulting figure, number of days of CREDIT, fluctuates according to seasonal changes, and increasing or decreasing bad debts. The result, which can be used in the CASH BUDGETING process, is computed as:where CS is sales on credit (per defined period, net of returns), AR is accounts receivable. The higher the ratio, the longer it takes to convert credit sales into cash. See also ACCOUNTS PAYABLE TURNOVER.",palgrave,0,63.09,8.6,12.3,10.38,10.5,10.55,10.9,11.94
ACCREDITED INVESTOR,"Under the US SECURITIES AND EXCHANGE COMMISSION Regulation D, a wealthy INVESTOR with a minimum NET WORTH of $1 million or annual income of more than $200,000 that is per- mitted to invest in high-RISK investments that are normally intended only for INSTITUTIONAL INVESTORS that can withstand large economic losses.",palgrave,0,12.27,24,0,13.65,28.6,13.38,35,28
ACCRETING CAP,A form of INTEREST RATE CAP based on an increasing NOTIONAL PRINCIPAL amount. See also ACCRETING SWAP.,palgrave,0,62.85,6.6,0,9.3,6.7,10.56,5.75,15.16
ACCRETING SWAP,"An OVER-THE-COUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that increases on a preset schedule or through the trigger- ing of a market event (generally a breach of a defined INTEREST RATE level). Accreting swaps typically have a LOCKOUT PERIOD during which increases are prohibited. See also ACCRETING CAP, AMORTIZING SWAP, INDEX PRINCIPAL SWAP, REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPAL SWAP.",palgrave,0,25.8,14.6,16.7,15.03,15.7,11.21,15.66666667,15.33
ACCRETION,"A periodic increase in the value of an ASSET or LIABILITY ori- ginally issued, granted, or sold at a DISCOUNT to FACE VALUE. In general, the asset or liability will increase on a straight-line basis toward face value asmaturity of the transaction approaches. See also ACCRETION OF DISCOUNT, AMORTIZATION, ORIGINAL ISSUE DISCOUNT.",palgrave,0,28.54,13.6,14.1,12.29,12.4,9.66,12.33333333,13.84
ACCRETION OF DISCOUNT,"The process of adjusting the BOOK VALUE of a BOND purchased at a DISCOUNT to reflect the effects of a noncash payment of INTEREST as MATURITY approaches. See also ACCRETION, AMORTIZATION, ORIGINAL ISSUE DISCOUNT.",palgrave,0,37.3,12.3,0,12.29,11.8,11.45,12,15.04
ACCRUAL,"A charge or EXPENSE incurred during an ACCOUNTING period but not paid or settled until the end of the period. See also  ACCOUNTING, DEFERRAL.",palgrave,0,50.84,9.2,0,9.38,7.6,8.18,7.5,9.8
ACCRUAL ACCOUNTING,A general ACCOUNTING method that reports INCOME when it is earned and EXPENSES when they are incurred. Also known as ACCRUAL BASIS. See also CASH ACCOUNTING.,palgrave,0,62.64,6.7,10.5,9.42,6.8,8.93,5,8.1
ACCRUAL BASIS,See ACCRUAL ACCOUNTING.,palgrave,0,9.21,12.7,0,13.12,13,14.31,2.5,27.87
ACCRUAL NOTE,See RANGE FLOATING RATE NOTE.,palgrave,0,100.24,0.5,0,6.12,4.6,10.2,1.5,2
ACCRUED BENEFIT,Financial benefits that are due to BENEFICIARIES under a DEFINED BENEFIT PLAN. The accrual is computed in relation to current or expected EARNINGS and become due and payable upon the retirement of the employee.,palgrave,0,37.3,12.3,0,12.29,11.6,10.98,13.5,18.56
ACCRUED INTEREST,"The INTEREST on a BOND or LOAN that has been earned but not yet paid. Interest payable/receivable accumulates between COUPON payment periods; once a periodic interest payment is made, accrued interest reverts to zero and begins building on a daily basis until the next payment. Accrued interest of a FIXED INCOME instrument can be computed via:2where C is the coupon, AD is the actual number of days that have elapsed since the last coupon, and n is number of days in the coupon period. See also CLEAN PRICE, DIRTY PRICE.",palgrave,0,57.1,10.9,13.4,10.16,12.4,9.31,14.5,13
ACCUMULATED DIVIDEND,"A DIVIDEND that has been declared, but not yet paid, to INVESTORS holding CUMULATIVE PREFERRED STOCK. No divi- dends can be paid to holders of COMMON STOCK until accumulated dividendshave been paid. Since accumulated dividends are contractually owed to inves- tors, they are reflected as a LIABILITY on the ISSUER’s BALANCE SHEET until they are fully paid.",palgrave,0,43.73,11.9,13,12.42,12.8,10.4,12.5,13.21
ACCUMULATION AREA,"A TECHNICAL ANALYSIS charting figure reflect- ing a price range where buyers gradually build positions in a SECURITY, keep- ing the price above a minimum floor level. The steady buying interest is often interpreted as a BULL signal, and may indicate a possible BREAKOUT to the upside.",palgrave,0,39.16,13.6,0,11.67,14.2,10.85,16.75,17.06
ACCUMULATION PERIOD,"The period of time during which the purchaser of an ANNUITY makes PREMIUM payments to an INSURER; once the accu- mulation period has ended, the annuity program provides the ANNUITANT (i.e., the original purchaser or a designated BENEFICIARY) with contractual payouts.",palgrave,0,-3.99,24,0,14.46,25.2,12.99,34.5,27.13
ACCUMULATION UNIT,A unit in a UNIT TRUST or investment trust where after-TAX DIVIDENDS are reinvested in the same trust.,palgrave,0,70.13,8,0,9.16,9.8,8.04,13,13.87
ACH,See AUTOMATIC CLEARINGHOUSE.,palgrave,0,-24.64,17.4,0,22.75,20.9,14.31,2.5,27.87
ACID TEST,See QUICK RATIO.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
ACQUIRER,A company that seeks to purchase a TARGET company via a HOSTILE TAKEOVER or a FRIENDLY TAKEOVER.,palgrave,0,62.68,8.7,0,9.39,9.3,10.05,10.5,6.8
ACQUISITION,"The purchase of one company by another in order to fulfill particular strategic goals related to REVENUES, market share, product/service offerings, or competition. An acquisition may be structured as a STOCK acqui- sition, where the acquiring company offers INVESTORS in the target companya specific price for their COMMON STOCK, or an ASSET acquisition, where the acquiring company offers to buy a portion or majority of the target com- pany’s assets. Stock acquisitions based on full integration require tendering of all MINORITY INTEREST shares. See also CONSOLIDATION, MERGER, TAKEOVER.",palgrave,0,23.77,15.4,16.5,14.91,16.5,11.55,16.5,15.62
ACQUISITION ACCOUNTING,"The ACCOUNTING policies used when one company is acquired by another company. Under this process the purchase price of the company being acquired is divided between TANGIBLE ASSETS and INTANGIBLE ASSETS based on fair market value, and any resulting diffe- rence is reflected as an acquisition adjustment to the GOODWILL account. Also known as PURCHASE . See also MERGER ACCOUNTING.",palgrave,0,39.53,11.4,13.4,13.22,11.7,9.19,10.75,11.34
ACQUISITION COST,"The cost associated with marketing and writing new INSURANCE business, generally comprised of AGENT COMMISSIONS, UNDERWRITING expenses, fees, and marketing support costs. A portion of these costs may be charged back to INSUREDS through EXPENSE LOADING.",palgrave,0,36.28,12.7,0,16.41,16,11.99,13,14.98
ACQUISITION LINE,"A form of SYNDICATED LOAN that is drawn by the BORROWER to fund an ACQUISITION. Once drawn, the loan typically becomes payable over the medium term, and may be structured with either regular AMORTIZATION of PRINCIPAL and INTEREST, or with a BULLET repayment.",palgrave,0,49.65,11.7,0,11.2,13,10.21,15.25,16.97
ACT OF GOD,"An event that is not predictable or preventable, and which can lead to significant physical, human, and/or financial damage. Such acts are often referenced as specific EXCLUSIONS in INSURANCE POLICIES, meaning they cannot be transferred from INSURED to INSURER. See alsoCATASTROPHIC HAZARD, CATASTROPHIC LOSS.",palgrave,0,39.63,11.4,13.6,16,14.4,11.18,10.66666667,14.97
ACTIVE BET,"The difference between an INVESTMENT MANAGER’S PORTFOLIO and the BENCHMARK portfolio, reflecting individual investments or strategies that specifically deviate from those contained in the benchmark. See also ACTIVE RETURN, ACTIVE RISK, TRACKING RISK.",palgrave,0,20.89,14.4,0,19.83,18,11.15,12.75,15.08
ACTIVE BOX,See CAGE.,palgrave,0,120.21,-3.1,0,-10.31,-1.7,0.1,0,0.8
ACTIVE FUND,"A FUND that seeks to outperform the market through the selection of ASSETS based on a defined INVESTMENT strategy. Active funds tend to feature higher costs than PASSIVE FUNDS. See also ACTIVE BET,ACTIVE RISK.",palgrave,0,60.01,7.7,10.5,10.88,8.6,12.09,6.333333333,9.23
ACTIVE PARTNERSHIP,"Any type of PARTNERSHIP where one or more of the PARTNERS provides CAPITAL and participates in the management of the operation. See also GENERAL PARTNERSHIP, LIMITED PARTNERSHIP, SILENT PARTNERSHIP.",palgrave,0,31.38,12.5,0,15.3,13.4,8.71,12.25,12.7
ACTIVE RETURN,"The results generated by an INVESTMENT MANAGER’S ACTIVE BETS, which can be computed as the realized outperformance or under- performance on an ex-post basis. See also ACTIVE RISK, TRACKING RISK.",palgrave,0,39.33,11.5,0,12.87,12,11.75,10.5,14
ACTIVE RISK,The RISK that the ACTIVE BETS in an INVESTMENT MAN- AGER’S PORTFOLIO will lead to underperformance versus the BENCHMARK portfolio. Active risk is most often estimated through TRACKING RISK.,palgrave,0,48.3,10.1,0,13.74,12,10.35,8.75,11.32
ACTIVE UNDERWRITER,An INSURANCE AGENT at LLOYD’S that under- writes on behalf of a SYNDICATE.,palgrave,0,66.74,7.2,0,8.63,7.5,11.57,7.5,11.35
ACTUAL AUTHORITY,"Powers granted by a PRINCIPAL to an AGENT to deal on its behalf. Actual authority may be explicit or implicit, and actions taken by the agent are generally binding on the principal. Also known as EXPRESS AUTHORITY.",palgrave,0,50.53,9.3,12.5,9.09,7.4,9.79,7.833333333,11.41
ACTUAL CASH VALUE,"The cost of replacing damaged or destroyed prop- erty, generally on the basis of new cost less DEPRECIATION. Actual cash value determination is the most common method of financial SETTLEMENT in INSURANCE unless an alternative method, such as full value (new cost), is specified.",palgrave,0,32.22,14.2,0,12.65,14.7,10.47,16,16.98
ACTUAL MARKET RISK,See ACTUAL EXPOSURE.,palgrave,0,9.21,12.7,0,7.32,8.3,14.31,2.5,27.87
ACTUALS,"Physical COMMODITIES, such as GRAINS, SOFTS, metals, and energy, which are traded and delivered under COMMODITY DERIVATIVE contracts.",palgrave,0,19.37,15,0,17.86,17.9,14.18,15,20.53
ACTUARIAL ADJUSTMENT,"In INSURANCE, the process of modifying the PREMIUM rate and RESERVES to reflect actual loss experience.",palgrave,0,29.86,13.1,0,13.63,12.5,12.33,13,18.9
ACTUARIAL EQUIVALENT,"In INSURANCE, a statistical measure based on the expectation that a loss will occur, and the benefits that will become payable as a result. By computing this measure, the INSURER can vary the PREMIUM it charges INSUREDS. See also ACTUARIAL PRICING.",palgrave,0,49.11,9.8,12.5,10.72,9.3,10.48,8.5,13.28
ACTUARIAL PRICING,"In INSURANCE, the pricing of RISK based on prob- abilities of loss occurrence constructed from statistical distributions. Actuarial pricing is used to develop PREMIUMS that are intended to cover losses fromunderwritten risks and provide future benefits payable to BENEFICIARIES. See also ACTUARIAL EQUIVALENT.",palgrave,0,14.66,14.8,15.9,17.45,15,12.79,12.16666667,18.74
AD VALOREM,"Literally, “according to the value.” In general, a TAX applied to the value of goods and services, such as An  DUTY orVALUE-ADDED TAX.",palgrave,0,39.67,13.4,0,9.52,12.8,8.9,15.5,14.42
AD VALOREM DUTY,"A TAX that is levied as a percentage of the value of an ASSET, for example a STAMP DUTY.",palgrave,0,69.11,8.3,0,3.48,5.4,7.9,11.5,11.81
ADDITIONAL BONDS TEST,"A COVENANT in an INDENTURE that lim- its the amount of new BONDS that an ISSUER can FLOAT. The test, which is intended to keep the issuer’s total LEVERAGE in check, is often measured by a TIMES INTEREST EARNED ratio or a FIXED CHARGE COVERAGE ratio.",palgrave,0,73.51,8.7,0,8.13,10.9,10.27,13.5,12.68
ADJUSTABLE PEG,"See CRAWLING PEG.MONEY MARKET PREFERRED STOCK, VARIABLE RATE PREFERRED STOCK. See also DUTCH AUCTION PREFERRED STOCK.",palgrave,0,63.36,6.4,0,15.91,12.6,8.97,3,3.2
ADJUSTED BASIS,"The base price used to determine CAPITAL GAINS or CAPITAL LOSSES on an INVESTMENT, generally including a deduction forCOMMISSIONS at the time of purchase or sale, along with adjustments for any STOCK SPLITS that may have occurred.",palgrave,0,33.92,17.7,0,13.24,21.8,10.59,27.5,22.37
ADJUSTED BREAKEVEN,"A measure of the number of years it takes for an INVESTOR to recover the initial CONVERSION PREMIUM paid when purchas- ing a CONVERTIBLE BOND, after accounting for the fact that the investor may purchase more COMMON STOCK than represented by the CONVERSION RATIO. Adjusted breakeven is typically computed as:⎝ S⎠where Convprem is the conversion premium, C is the COUPON, PCB is the price of the convertible bond, S is the price of the common stock, and DPS is DIVIDENDS per share. See also EQUIVALENT BREAKEVEN, SIMPLE BREAKEVEN.",palgrave,0,50.2,13.5,15.9,11.73,16.9,10.29,19.66666667,16.72
ADJUSTED STRIKE PRICE,"A STRIKE PRICE on an OPTION (or option-linked instrument, such as a CONVERTIBLE BOND) that is changed to reflect new or unexpected events, including STOCK SPLITS or STOCK DIVIDENDS.",palgrave,0,50.5,13.4,0,12.72,17.9,12.15,20.5,18.5
ADJUSTMENT BOND,"A BOND issued as a RECAPITALIZATION instrument by a company in FINANCIAL DISTRESS, often as an INCOME BOND that only pays INVESTORS COUPON interest as earnings permit.",palgrave,0,27.15,16.2,0,12.89,16.7,11.99,18.5,16.73
ADMINISTRATION ORDER,"In the United Kingdom, an order of the court in respect of a company in FINANCIAL DISTRESS that requires the business affairs of the company to be placed under the management of an ADMINISTRATOR and which prohibits CREDITORS from taking actions that would lead to liquid- ation of the company.",palgrave,0,20.73,22.8,0,11.56,26.6,10.22,32,23.2
ADMITTED INSURANCE,An INSURANCE contract written by an ADMITTED INSURER that is authorized to do business in the state or jurisdiction where the policy is issued. See also NON.,palgrave,0,49.31,9.7,0,9.85,8.2,9.57,8.75,14.29
ADMITTED INSURER,"An INSURER that is authorized to write INSURANCE business in a particular state or jurisdiction; the contracts it offers are classified as ADMITTED INSURANCE. Also known as AUTHORIZED INSURER, LICENSED CARRIER. See also NON.",palgrave,0,34.63,11.2,14.1,13.26,10.7,9.77,8.333333333,13.93
ADR,See AMERICAN DEPOSITORY RECEIPT.,palgrave,0,-34.11,19,0,17.4,14.7,11.73,3,11.6
ADS,See AMERICAN DEPOSITORY SHARE.,palgrave,0,-8.73,15.5,0,14.5,12.4,7.78,3,11.6
ADVANCE,See LOAN.,palgrave,0,120.21,-3.1,0,-10.31,-1.7,0.1,0,0.8
ADVANCE-DECLINE,"A TECHNICAL ANALYSIS tool that measures the num- ber of COMMON STOCKS that advance against the number that decline over a given period of time. A rising advance-decline is a generally regarded as a BULLISH signal, a falling advance-decline as a BEARISH signal.",palgrave,0,49.65,11.7,0,11.31,13.2,10.58,14.25,13.25
ADVANCE OPTION,A short-term LINE OF CREDIT granted by an UNDERWRITER to an ISSUER of SECURITIES that can be drawn if the under- writer cannot successfully place the securities. The advance option thus guar- antees the issuer access to short-term funds regardless of the relative success of the NEW ISSUE.,palgrave,0,47.12,12.7,0,11.55,14.3,11.08,15,13.77
ADVANCE PREMIUM,"In INSURANCE, a PREMIUM payment by the INSURED to the INSURER prior to the due date.",palgrave,0,55.24,9.5,0,6.73,6.9,9.36,11,13.9
ADVANCE REFUNDING,"An exchange of outstanding GOVERNMENT BONDS for a NEW ISSUE of SECURITIES prior to final maturity of the original issue, typ- ically arranged to take advantage of a lower INTEREST RATE environment.",palgrave,0,22.08,18.1,0,12.83,19,12.63,24,21.55
ADVANCE SETTLEMENT,"In INSURANCE, payment of a CLAIM by the INSURER to the INSURED prior to the settlement date.",palgrave,0,62.68,8.7,0,7.65,8.1,9.12,11.5,11.51
ADVERSE OPINION,"An AUDIT OPINION by an EXTERNAL AUDITOR indi- cating that a company’s FINANCIAL STATEMENTS do not accurately reflect its financial position and cannot be relied on as a result of omissions, errors, lack of information, or lack of conformity to accepted ACCOUNTING PRINCIPLES. See also QUALIFIED OPINION, UNQUALIFIED OPINION.",palgrave,0,21.23,16.4,0,14.86,17.3,12.59,19.25,20.41
ADVERSE SELECTION,"Mispricing of RISK as a result of information asym- metries. This occurs when an INSURER cannot clearly distinguish betweendifferent classes of risks, and leads to a dearth or excess of risk coverage at a given price, i.e., charging a standard or low PREMIUM rate for a significant or UNINSURABLE RISK, or a high premium for a small or inconsequential risk. See also MORAL HAZARD.",palgrave,0,49.86,11.6,14.1,10.56,12.5,11.11,14.33333333,14.77
ADVISED LINE,"A BANK LINE that a BANK or other financial institution approves and maintains for a customer. The size of the line is specifically conveyed to the customer, though availability depends on the terms of the credit agreement and/or the payment of a COMMITMENT FEE. Also known as CONFIRMED LINE. See also GUIDANCE LINE.",palgrave,0,66.44,7.3,9.5,9.96,8.6,8.77,6.875,9.09
ADVISING BANK,A BANK in an exporter’s country that advises the exporter that a LETTER OF CREDIT has been opened with an international bank.,palgrave,0,57.61,10.7,0,9.86,11.8,9.03,13,12.44
AFFILIATE,"A company that is partly owned by a second company, and where the latter is able to direct or influence the operations of the former. See alsoJOINT VENTURE, SUBSIDIARY.",palgrave,0,56.76,8.9,0,9.33,8.6,8.71,8.75,9.94
AFRICAN DEVELOPMENT BANK,"A MULTILATERAL DEVELOPMENT BANK created in 1964 by African nations to support economic and social progress and to supply long-term development finance to member countries, modeled after the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.",palgrave,0,3.13,21.3,0,18.81,24.8,12.75,25,20.66
AFS ACCOUNTING,See AVAILABLE FOR SALE ACCOUNTING.,palgrave,0,66.4,5.2,0,11.92,9.3,10.2,2.5,10
AFTER HOURS TRADING,"TRADING in SECURITIES that occurs after the formal close of an EXCHANGE, through telephonic networks or ELECTRONIC COMMUNICATIONS NETWORKS supported by BROKER/DEALERS. In prac- tice only BENCHMARK securities with a broad INVESTOR following trade after hours.",palgrave,0,27.83,13.9,0,17.57,16.7,11.55,13,12.76
AFTER SIGHT,A term included on a BILL OF EXCHANGE indicating that the period of the bill starts from the date on which the DRAWEE has been presented with it. See also AT SIGHT.,palgrave,0,80.62,6,0,6.15,6.2,7.39,9,11.4
AFTER THE BELL,The time period after the official close of an EXCHANGE. Market-moving information is often released after an exchange has closed.,palgrave,0,44.41,9.6,0,12.56,9.7,8.08,6,10
AFTERMARKET,See SECONDARY MARKET.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,0.5,1.2
AG,See AKTIENGESELLSCHAFT.,palgrave,0,35.61,8.8,0,30.3,31.4,11.63,1,20.8
AGED ASSETS,"ASSETS held for resale by a BANK or SECURITIES FIRM that have been owned for a long period of time (i.e., many months). Aged assets may indicate misvaluation.",palgrave,0,65.73,7.6,0,7.82,7.6,9.97,8,11.31
AGED FAIL,A FAIL TO RECEIVE or FAIL TO DELIVER between two par- ties that is not settled within 30 days. In most instances the party expecting to receive SECURITIES must remove the entry from the ASSET accounts on the balance sheet until the error is resolved. Aged fails may signal increasedOPERATIONAL RISK.,palgrave,0,54.22,9.9,9.7,10.26,10.1,10.67,8.833333333,9.94
AGENCY BILL,See INLAND BILL.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
AGENCY CAPTIVE,"A CAPTIVE, owned by one or more INSURANCE AGENTS, which is used to write INSURANCE cover for a large number of third party clients. See also GROUP CAPTIVE, PROTECTED CELL COMPANY, PURE CAPTIVE, RENT-A-CAPTIVE, SISTER CAPTIVE.",palgrave,0,61.67,9.1,0,11.42,12.4,7.16,11.5,9.42
AGENCY COSTS,"Direct and indirect costs arising from the separation of own- ership (i.e., COMMON STOCK shareholders) and control (i.e., DIRECTORS and managers) that ultimately lead to a reduction in ENTERPRISE VALUE. Agency costs can include the EXPENSES associated with implementing processes for monitoring, reporting, and auditing.",palgrave,0,14.8,16.8,0,16.66,18.7,12.82,18.25,21.44
AGENCY PROBLEM,"A conflict based on the fundamental “mistrust” that arises between COMMON STOCK SHAREHOLDERS, DIRECTORS, and man- agement. The agency problem centers on whether DIRECTORS and managers always act in good faith and seek to advance the interests of shareholders.Additional reference: Berle and Means (1991).",palgrave,0,40.69,13.1,0,15.95,17.5,11.9,14.5,14.25
AGENT,"A party that acts as a representative of a PRINCIPAL, carrying express or implied authority to deal on behalf of the principal. In financial services a BROKER is an agent of the employing BANK or SECURITIES FIRM and is paid COMMISSIONS for client business. A bank may act as an agent for other banks in fulfilling certain duties related to arranging LOANS and NEW ISSUES. In INSURANCE, the independent agent represents at least two INSURERS and attempts to find the best possible deal for INSUREDS in exchange for a per- centage of PREMIUMS charged. See also ACTUAL AUTHORITY,  BANK,APPARENT AGENCY.",palgrave,0,42.72,12.3,15.1,11.08,12.1,10.31,14.4,15.6
AGENT BANK,A BANK forming part of a SYNDICATE arranging a LOAN for a BORROWER that is responsible for protecting the interests of all other syn- dicate banks. The lead bank arranging the loan is often selected as the agent bank. See also AGENT.,palgrave,0,65.73,7.6,12.5,8.11,7.1,8.84,8.666666667,12.27
AGGREGATE DEMAND,"The total amount spent on final goods and ser- vices. In an open economy this is generally considered to be the sum of con- sumption, INVESTMENT, government spending, and net EXPORTS. See alsoAGGREGATE SUPPLY, DEMAND, SUPPLY.",palgrave,0,59.3,8,11.2,10.83,9.4,10.81,7,10.36
AGGREGATE INDEMNITY,"The total INSURANCE coverage an INSURED has against a specific RISK, generally a combination of a primary policy and one or more secondary policies.",palgrave,0,30.2,15,0,12.77,15.1,12.72,19,21.27
AGGREGATE STOP LOSS INSURANCE,"An INSURANCE contract that becomes effective once a company’s SELF-INSURANCE threshold has exceeded a predefined value. Once in effect, the coverage assumes the form of a standard insurance contract with defined terms and conditions.",palgrave,0,37.3,12.3,0,15.83,14.8,11.45,13,15.04
AGGREGATE SUPPLY,"The total amount of goods and services enterprises are willing to provide consumers. See also AGGREGATE DEMAND, DEMAND, SUPPLY.",palgrave,0,53.37,8.2,0,13.02,10.4,10.76,4.75,8.01
AGM,See ANNUAL GENERAL MEETING.,palgrave,0,8.2,13.1,0,10.15,8.8,7.78,3,11.6
AGREED VALUE POLICY,"An INSURANCE policy where the sum to be paid out in the event an insurable event occurs is specifically stated in the policy, e.g., life insurance.",palgrave,0,45.09,13.4,0,9.12,13.7,10.39,19,16.55
AGREEMENT VALUE,The value that is settled between two COUNTER- PARTIES in the event a SWAP is subject to early termination.,palgrave,0,60.65,9.5,0,9.28,10.1,8.73,10.5,9.71
AIM,See ALTERNATIVE INVESTMENT MARKET.,palgrave,0,-8.73,15.5,0,20.3,17.1,11.73,3,21.6
AJUSTABONOS,"[SPN] Medium-term INFLATION-LINKED SECURITIES, issued by the Mexican government, which pay a regular fixed COUPON and adjust the PRINCIPAL every quarter based on the movement of the Mexican CONSUMER PRICE INDEX. The adjusted principal accumulates over the life of the bond and is paid to INVESTORS at maturity.",palgrave,0,38.66,13.8,0,13.81,16.4,11.74,17.5,16.27
AKTIEBOLAG (AB),"[SWE] In Sweden, a JOINT STOCK COMPANY that may be either publicly traded or privately held; the term is also used in Finland to reflect a private company. In both countries minimum CAPITAL requirements must be met in order to qualify.",palgrave,0,50.67,11.3,0,9.46,11.2,9.66,13.75,12.1
AKTIENGESELLSCHAFT (AG),"[GER] In Germany, Switzerland, and Austria, a STOCK CORPORATION which features both a VORSTAND and an AUFSICHTSRAT. In all countries minimum CAPITAL requirements must be met in order to qualify.",palgrave,0,47.79,10.3,0,12.69,12,10.7,10.5,12.67
ALCO,See ASSET-LIABILITY COMMITTEE.,palgrave,0,-75.4,24.5,0,24.72,24,19.58,2.5,27.87
ALEATORY CONTRACT,"A CONTRACT that can result in an unequal exchange of value between the contracting parties. INSURANCE is an alea- tory contract, as the PREMIUM paid by the INSURED is generally larger or smaller than any SETTLEMENT received from the INSURER in the event of a loss and CLAIM.",palgrave,0,55.58,11.5,0,9.99,12.8,10.42,15,13.77
ALGO,See RITHM,palgrave,0,120.21,-3.1,0,-7.41,-1.7,11.63,0,0.8
ALGO TRADING,See ALGORITHMIC TRADING,palgrave,0,9.21,12.7,0,15.03,13,14.31,1.5,14.53
ALGORITHM,"A decision rule applied to trading strategies and incorporated into IC TRADING platforms. Algorithms are employed for short- term trading and execution, and can be designed to perform a variety of func- tions, including searching for NONDISPLAYED LIQUIDITY, parceling trades into small orders to reduce MARKET IMPACT COST, executing trades at specific levels (such as VOLUME WEIGHTED AVERAGE PRICE or TIME WEIGHTED AVERAGE PRICE), and so forth. Also known as ALGO.",palgrave,0,38.96,13.7,14.1,14.22,16.5,11.71,15.5,15.11
ALIEN INSURER,"In the United States, an INSURER formed on the basis of the legal requirements of a country other than the United States. In order to qual- ify to write INSURANCE in the United States, the alien insurer must adhere to relevant state insurance regulations.",palgrave,0,57.61,10.7,0,9.98,12.3,9.03,14.5,13.35
ALL-EQUITY NET PRESENT VALUE,"A NET PRESENT VALUE calcula- tion that is used when a CAPITAL INVESTMENT project is funded solely by EQUITY. The computation uses the cost of equity as the relevant DISCOUNT RATE and ignores any adjustments normally used for DEBT financing, e.g., TAX SHIELDS. See also ADJUSTED PRESENT VALUE.",palgrave,0,55.24,9.5,14.1,11.08,10.6,11.01,11.66666667,13.9
ALL LINES INSURANCE,See MULTIPLE PERIL POLICY.,palgrave,0,8.2,13.1,0,8.7,7.7,15.68,3,21.6
ALL-OR-ANY PORTION ORDER,"An ORDER to purchase or sell any, or all, of a specified quantity of SECURITIES, generally at the BROKER’s discretion. See also ALL-OR-NONE ORDER.",palgrave,0,42.38,10.3,0,9.85,8.7,8.84,7.5,13.13
ALL-OR-NONE ORDER,An ORDER to purchase or sell SECURITIES that must be filled at the limit price or better in its entirety or else cancelled. All-or-none orders are often marked FILL OR KILL. See also ALL-OR-ANY PORTION ORDER.,palgrave,0,67.76,6.8,8.8,8.57,7.2,8.18,6,7.02
ALL-OR-NONE UNDERWRITING,"A NEW ISSUE UNDERWRITING where the ISSUER has the right to cancel the entire transaction if the SYNDICATE is unable to successfully place the entire issue. See also BEST EFFORTS UNDERWRITING, BOUGHT DEAL.",palgrave,0,46.27,10.9,0,12.12,11.4,9.24,10.75,11.45
ALL RISKS COVER,See ALL RISKS POLICY.,palgrave,0,75.88,3.7,0,1.45,1.8,11.73,2,11.6
ALL RISKS POLICY,A broad INSURANCE policy that covers losses from all PERILS except those that are specifically excluded. Also known as ALL RISKS COVER. See also NAMED PERIL POLICY.,palgrave,0,53.88,8,10.5,9.94,7.1,9.93,5.166666667,9.53
ALLIED LINES,"A PROPERTY AND CASUALTY INSURANCE policy that provides coverage for fire and associated PERILS, including water damage, demolition, and contamination.",palgrave,0,-16.51,20.5,0,19.55,19.4,13.31,19,26
ALLIGATOR SPREAD,"An OPTION SPREAD that is unprofitable even in favorable market conditions, as a result of large BROKER COMMISSIONS or fees. An alligator spread often comprises of many discrete transactions, which generate excessive costs and detract from any profits.",palgrave,0,43.73,11.9,0,14.79,14.6,11.23,14,16.02
ALLOTMENT,"The share of a NEW ISSUE of SECURITIES granted by the LEAD MANAGER to SYNDICATE members (and ultimately INVESTORS). Allotment may be determined by existing relationships between the lead manager and each syndicate member, or by the perceived or proven ability of a given mem- ber to place the securities with a particular base of investors.",palgrave,0,34.6,15.4,0,11.9,16.5,9.82,20.5,17.63
ALM,See ASSET-LIABILITY MANAGEMENT.,palgrave,0,-75.4,24.5,0,26.63,25.6,19.58,2.5,27.87
ALPHA STOCKS,The most actively traded STOCKS on the United Kingdom’s STOCK EXCHANGE AUTOMATED QUOTATIONS SYSTEM. See also NORMAL MARKET SIZE.,palgrave,0,44.91,9.4,0,13.89,10.6,10.76,5.25,10.12
ALPHABET STOCK,"Separate classes of COMMON STOCK issued by a company, where each class (often denoted by a letter of the alphabet) represents a different SUBSIDIARY. INVESTORS in an alphabet stock receive the RENT RIGHTS and CONTROL RIGHTS associated with that stock, but not those of the overarching parent company. See also CLASSIFIED STOCK.",palgrave,0,45.46,11.2,14.1,12.41,12.2,8.44,12.33333333,11.54
ALT-A,A residential MORTGAGE that is granted to a BORROWER on the basis of a reduced amount of documentation or limited/no incomeverification. The credit quality of the borrowers ranks above that associated with SUBPRIME MORTGAGES but generally below that of PRIME MORTGAGES. Also known as ALTERNATIVE A MORTGAGE.,palgrave,0,30.16,13,13.6,14.15,12.5,10.8,11.16666667,14.79
ALTERNATE DIRECTOR,A person who is authorized to act temporarily on behalf of a permanent DIRECTOR on a company’s BOARD OF DIRECTORS.,palgrave,0,34.26,13.5,0,9.98,10.9,10.16,16,20
ALTERNATIVE DELIVERY PROCEDURE,Delivery terms under an EX- CHANGE TRADED DERIVATIVE that deviate from standard procedures.,palgrave,0,32.9,11.9,0,16.17,13.7,14,10.5,17.51
ALTERNATIVE INVESTMENT,"The broad category of INVESTMENTS that excludes the traditional classes of EQUITIES, FIXED INCOME, and cash. Alternative investments can include HEDGE FUNDS, COMMODITIES, real estate, PRIVATE EQUITY, managed FUTURES, and INSURANCE-LINKED SECURITIES. Alternatives are often selected by investors as they can be uncorrelated with traditional asset classes, helping improve PORTFOLIO DIVERSIFICATION.",palgrave,0,11.92,15.8,16.3,20.53,19.1,13.15,13.83333333,17.78
ALTERNATIVE RISK TRANSFER (ART),"A product, channel, or solution that transfers RISK exposures between the INSURANCE and REINSURANCE sectors and the CAPITAL MARKETS in order to achieve specific RISK MANAGEMENT goals. As a result of regulatory rules and DIVERSIFICATION benefits, it is often desirable to shift INSURABLE RISKS to the financial sector and FINANCIAL RISKS to the insurance sector; ART mechanisms, such as CAPTIVES, DERIVATIVES, INSURANCE-LINKED SECURITIES, CONTINGENT CAPITAL, and ENTERPRISE RISK MANAGEMENT, make this possible. See also CONVERGENCE.",palgrave,0,20.72,16.6,19.6,17.29,19.8,11.82,20.83333333,19.6
ALTERNATIVE TRADING SYSTEM (ATS),"An electronic venue that serves as an alternative to a traditional EXCHANGE, providing TRADING services by matching buyers and sellers directly, without the use of a BROKER or DEALER. See also ELECTRONIC COMMUNICATIONS NETWORK.",palgrave,0,28.84,13.5,0,14.85,14,11.91,12,13.86
AMAKUDARI,"Literally, “descent from heaven”; a Japanese practice of appointing a senior financial REGULATOR to a senior executive position within a BANK or SECURITIES FIRM.",palgrave,0,4.82,18.6,0,15.67,17.7,13.38,21,22.93
AMALGAMATION,"The combination of two, or more, companies, through a series of MERGERS or ACQUISITIONS.",palgrave,0,48.81,9.9,0,11.53,10.8,9.97,9,14.17
AMERICAN BINARY OPTION,See BINARY-BARRIER OPTION.,palgrave,0,-50.02,21,0,16.95,17.8,19.58,1.5,27.87
AMERICAN DEPOSITORY SHARE (ADS),"COMMON STOCK issued by a foreign company in the US marketplace. ADSs, denominated in US dollars, are registered with the SECURITIES AND EXCHANGE COMMISSION and are traded on an EXCHANGE or OVER-THE-COUNTER. See also AMERICAN DEPOSITORY RECEIPT, GLOBAL DEPOSITORY RECEIPT, GLOBAL DEPOSIT- ORY SHARE.",palgrave,0,31.17,12.6,13.6,14.43,13.2,9.75,10.66666667,11.33
AMERICAN OPTION,"An OPTION that can be exercised at any time prior to, and including, maturity. See also BERMUDAN OPTION, EUROPEAN OPTION.",palgrave,0,44.41,9.6,0,9.37,7.6,9.66,6,12
AMERICAN TERMS,"A commonly used quotation mechanism in the FOREIGN EXCHANGE markets that indicates how many US dollars can be exchanged for a unit of foreign CURRENCY. See also EUROPEAN TERMS, RECIPROCAL RATE.",palgrave,0,47.28,10.5,0,12.35,11.1,11.03,11.25,15.23
AMEX,See AMERICAN STOCK EXCHANGE.,palgrave,0,50.5,7.2,0,11.6,10,0.2,2,1.6
AMORTIZATION SCHEDULE,A listing of the dates and amounts related to the repayment of an AMORTIZING LOAN or other FINANCING CONTRACT. See also AMORTIZATION.,palgrave,0,51.85,8.8,0,10.54,8,10.64,7,13.49
AMORTIZING LOAN,"A LOAN that requires the BORROWER to repay the BANK a certain amount of PRINCIPAL, along with contractual INTEREST, in accordance with an established AMORTIZATION SCHEDULE. See alsoBALLOON LOAN, BULLET LOAN.",palgrave,0,47.28,10.5,0,14.61,13.2,9.5,11.75,16.52
AMORTIZING SWAP,"An OVER-THE-COUNTER SWAP featuring a NOTIONAL PRINCIPAL balance that amortizes, or declines, on a preset schedule or throughthe triggering of a market event (commonly the breaching of an INTEREST RATE level). Amortizing swaps typically have a LOCKOUT PERIOD during which amortization is prohibited. See also ACCRETING SWAP, INDEX PRINCIPAL SWAP, REVERSE INDEX PRINCIPAL SWAP, VARIABLE PRINCIPAL SWAP.",palgrave,0,26.81,14.2,16.3,16.48,16.5,11.78,14.83333333,16.02
AMOUNT AT RISK,"(1) In INSURANCE, the lesser of a POLICY CAP on a contract and the MAXIMUM PROBABLE LOSS to the INSURED. INSURERS use amount at risk to estimate potential losses within their PORTFOLIOS. (2) The difference between the PRINCIPAL outstanding on a LOAN and the value of any COLLATERAL securing the loan if it is liquidated forcibly.",palgrave,0,34.6,15.4,0,10.57,15.6,11.23,21,20.49
ANGEL,An INVESTOR or VENTURE CAPITAL partner that funds a private start-up company in exchange for a pre-INITIAL PUBLIC OFFERING EQUITY stake. The angel’s participation in tactical and strategic decisions may be active or passive.,palgrave,0,37.3,12.3,0,14.32,13.5,11.91,12,12.68
ANKLE BITER,"A SMALL CAP STOCK, i.e., one with MARKET CAPITALIZATION of less than $1 billion.",palgrave,0,74.19,6.4,0,7.42,8.1,8.84,7,8.46
ANNUAL ACCOUNTS,"In the United Kingdom, the term for ANNUAL REPORT.",palgrave,0,62.34,6.8,0,6.7,5.1,5.84,4.5,8.04
ANNUAL AGGREGATE LIMIT,"The maximum amount that an INSURANCE contract will pay in SETTLEMENTS to an INSURED over a 12-month period, regardless of the number of CLAIMS submitted.",palgrave,0,46.1,13,0,12.25,15.4,11.19,18.5,19.6
ANNUAL DEPRECIATION ALLOWANCE,"The decrease in BOOK VALUE assigned to an ASSET as a result of DEPRECIATION, typically as a certain per- centage per year.",palgrave,0,40.69,13.1,0,8.53,11.2,10.47,14,14.25
ANNUAL EQUIVALENT RATE,See EFFECTIVE ANNUAL RATE.,palgrave,0,33.58,9.6,0,8.7,7.7,11.73,3,21.6
ANNUAL GENERAL MEETING (AGM),"A meeting of a PUBLIC COMPANY’s DIRECTORS, executives, and SHAREHOLDERS to review the year’s financial performance and vote on specific agenda items (e.g., selection of directors, EXTERNAL AUDITOR, and so forth).",palgrave,0,14.63,18.9,0,15.5,21.7,12.81,26.5,25.3
ANNUAL PERCENTAGE RATE (APR),"The effective annual INTEREST RATE that is charged on a LOAN facility, CREDIT CARD facility or other debt FINANCING, or which is paid on an INVESTMENT, that expresses interest rate and fees as an annual rate. See also EFFECTIVE ANNUAL RATE.",palgrave,0,42.21,12.5,0,10.33,11.8,8.89,16.25,15.03
ANNUAL REPORT,"The yearly, AUDITED, FINANCIAL STATEMENTS pub- lished by a company. The annual report typically includes the BALANCE SHEET, INCOME STATEMENT, STATEMENT OF CASH FLOWS, along with accompany- ing FOOTNOTES and the AUDIT REPORT. See also ANNUAL ACCOUNTS.",palgrave,0,42.07,10.4,11.9,13.79,12,11.5,7.5,10.33
ANNUITANT,A person or entity entitled to receive regular ANNUITY ben- efits based on capital that has been contributed into an annuity program dur- ing the ACCUMULATION PERIOD.,palgrave,0,18.69,17.4,0,12.42,16.5,12.58,22.5,21.17
ANNUITY,"An INVESTMENT CONTRACT, generally purchased from an INSURER through single or multiple tax-deferred CAPITAL contributions, that guarantees fixed or variable payments to an ANNUITANT starting at some future date, and lasting for a stated period of time. See also CERTAIN , PERPETUITY, PRESENT VALUE, FUTURE VALUE, LIFE .",palgrave,0,22.75,15.8,0,16.08,17.9,11.3,17,17.03
ANTICIPATORY HEDGE,"An ex-ante HEDGE that is created to reduce the variability associated with a future ASSET, LIABILITY, or cash inflow; the hedge may be created with DERIVATIVES or a LONG POSITION or SHORT POSITION in the UNDERLYING reference.",palgrave,0,8.54,21.3,0,12.14,21.1,11.87,28.5,23.45
ANTITAKEOVER DEFENSE,"A legal or structural tactic adopted by a com- pany in order to protect it from being acquired by another company. Defenses may be used in conjunction with, or as a substitute for, ANTITAKEOVER LAWS. Also known as PORCUPINE PROVISION, SHARK REPELLENT. See alsoBLANK CHECK PREFERRED, POISON PILL, SCORCHED EARTH DEFENSES, STAGGERED BOARD.",palgrave,0,57.98,8.5,12.2,11.82,10.5,10.25,8.125,10.6
ANTITAKEOVER LAWS,"Laws enacted in certain national systems that pro- hibit, or severely limit, a company from acquiring another company, primar- ily in instances involving HOSTILE TAKEOVERS. See also ANTITAKEOVER DEFENSE.",palgrave,0,22.92,13.7,0,15.71,14.2,13.07,12.25,15.46
ANTITRUST,Policies and REGULATIONS that restrict the formation of OLIGOPOLY or MONOPOLY power in order to promote free market competition.,palgrave,0,26.81,14.2,0,16.01,15.3,11.23,14.5,18.13
ANY-AND-ALL BID,A TAKEOVER mechanism where a company seeking to acquire a TARGET firm agrees to pay the same price for any SHARES that are tendered. The any-and-all bid stands in contrast to the TWO-TIER BID (where INVESTORS receive an inducement PREMIUM for tendering their shares by an initial cutoff date.),palgrave,0,63.53,10.5,0,11.2,14.4,10.65,14.75,13.07
APACS,See ASSOCIATION FOR PAYMENT CLEARING SERVICES.,palgrave,0,14.63,12.7,0,17.85,13.7,11.83,3,9.07
APPARENT AGENCY,"Conduct by an AGENT that causes another party to believe the agent is authorized to conduct business on behalf of a PRINCIPAL,whether or not that is the case. A PRINCIPAL may be legally bound by apparent agency. See also ACTUAL AUTHORITY.",palgrave,0,57.57,8.6,11.9,9.56,8.2,9.32,8.166666667,10.36
APPORTIONMENT,"The practice of dividing an INSURED’s CLAIMS covered under multiple INSURANCE contracts, typically in proportion to total insur- ance coverage. Apportionment is generally written into a contract through a separate clause. See also DIVIDED COVER, OVERLAPPING INSURANCE, PRIMACY, PRO-RATA.",palgrave,0,15.98,14.3,15.5,17.5,15.1,13.59,11.16666667,16.48
APPRECIATION,"An increase in the worth of a financial INVESTMENT or ASSET as a result of MARKET RISK factors. See also DEPRECIATION, DEVALUATION.",palgrave,0,43.39,9.9,0,9.72,7.6,10.64,6.5,11.67
APPROPRIATION,"The allocation of a company’s NET INCOME to distinct accounts, such as DIVIDENDS, RETAINED EARNINGS, RESERVES, and so forth.",palgrave,0,43.73,11.9,0,13.58,14.4,11.23,12.5,13.92
APR,See ANNUAL PERCENTAGE RATE.,palgrave,0,33.58,9.6,0,10.15,8.8,11.73,3,21.6
APT,See ARBITRAGE PRICING THEORY.,palgrave,0,8.2,13.1,0,13.05,11.2,15.68,3,21.6
ARB,"Abbreviation for ITRAGEUR.HEDGE, LONG ARBITRAGE, PURE ARBITRAGE, QUASI ARBITRAGE, SHORT ARBITRAGE, SPECULATION, YIELD ENHANCEMENT.",palgrave,0,6.5,15.8,0,27.31,24.9,13.35,14,17.03
ARBITRAGE-FREE CONDITION,See NO ARBITRAGE CONDITION.,palgrave,0,33.58,9.6,0,10.15,8.8,11.73,3,21.6
ARBITRAGE-FREE MODEL,A model that values financial contracts in such a way that no ARBITRAGE opportunities can arise. Arbitrage-free models are often used in the TRADING of DERIVATIVES and may be specifically cali- brated to actual market values. See also LAW OF ONE PRICE.,palgrave,0,48.81,9.9,11.9,10.55,9.2,9.22,8.333333333,11.31
ARBITRAGE PRICING THEORY (APT),"A financial theory posited as a test- able, and more flexible, alternative to the CAPITAL ASSET PRICING MODEL (CAPM), based on the concept that multiple linear RISK factors influence the return of a SECURITY, and the factors can be estimated through principalcomponents/factor analysis. By understanding the risk and RETURN contribu- tion of each factor, an optimal PORTFOLIO can be created. APT, like CAPM, makes use of BETA as a measure of risk. The single-factor APT return is given by:E(rj ) = E(rf ) + l1 b1,jwhere E(rj) is the expected return of security j, E(rf) is the expected RISK-FREE RATE, l1 is the slope of risk factor 1, and b1,j is the beta related to risk factor 1 and security j. The equation can be expanded to multifactor form, with z risk factors:E(rj ) = E(rf ) + ∑ l1 b1,jAdditional references: Roll (1977); Roll and Ross (1980); Ross (1976).",palgrave,0,34.19,15.5,15.9,10.1,16.5,10.83,17.25,16.99
ARBITRAGEUR,[FR] An individual or institution engaged in ARBITRAGE transactions. See also ARB.,palgrave,0,23.09,11.5,0,11.53,9.5,13.14,4,15.73
ARBITRATION,"A formal mechanism to resolve disputes between parties out of court, widely used in the SECURITIES industry when conflicts appear between BROKERS and clients, and in the INSURANCE industry when dis- putes arise between INSUREDS and INSURERS. Parties submitting to arbitra- tion may agree to a binding decision by the ARBITRATOR, or simply follow an indicative one.",palgrave,0,34.09,15.6,0,13.64,18.3,11.7,19.75,18.42
ARBITRATION CLAUSE,A clause in an INSURANCE contract stating that the INSURED and INSURER agree to ARBITRATION in the event of disagree- ment on a CLAIM. Similar disclosure is common in INVESTMENT account agreements.,palgrave,0,55.24,9.5,0,11.95,11,12.33,11,13.9
ARBITRATOR,A professional and independent party appointed to conduct ARBITRATION between two disputing parties.,palgrave,0,-0.95,16.6,0,20.63,17,12.78,11.5,20.58
ARCH,See AUTOREGRESSIVE CONDITIONAL HETEROSKEDASTICITY.,palgrave,0,-93.33,27.3,0,43.5,35.9,15.68,4,31.6
ARM,See ADJUSTABLE RATE MORTGAGE.,palgrave,0,75.88,3.7,0,13.05,11.2,11.73,1,1.6
ARMS INDEX,See TRADING INDEX.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
ARM’S LENGTH,"A process of carrying out a transaction on purely market-driven commercial terms, regardless of the relationship between the two parties involved; no preferential pricing or treatment is granted to either party, even if they are related through common ownership.",palgrave,0,14.97,20.9,0,15.91,25.1,12.45,28.5,23.81
ARRANGER,"A BANK that is responsible for structuring a SYNDICATED LOAN facility for a BORROWER, and assembling a SYNDICATE to distribute portions of the loan to a broader group of INVESTORS.",palgrave,0,32.57,16.2,0,12.14,17.3,10.91,23,22.67
ARREARS SWAP,"An INTEREST RATE SWAP with a FLOATING RATE that is set in arrears rather than in advance; thus, the rate may be set two days before payment date, rather than six months plus two days before payment date (as on a standard semiannual swap). Also known as IN-, LIBOR IN-.",palgrave,0,71.48,9.5,0,7.26,11.7,8.67,13.5,11.6
ARTICLES OF INCORPORATION,"A legal document filed by the founders of a company that results in the issuance of a certificate of incorporation from an authorizing government or legal entity. The articles contain details on the company’s business, founders, DIRECTORS, and authorized CAPITAL. Articles of incorporation, together with the CORPORATE CHARTER, give a company its legal form and existence.",palgrave,0,27.11,14.1,17.1,14.74,14.6,9.92,15.33333333,15.34
ARTICLES OF PARTNERSHIP,"A legally binding agreement between the PARTNERS involved in the formation and operation of a PARTNERSHIP. The form of agreement can vary, but generally defines the roles and responsibilities of the LIMITED PARTNER(S) and the GENERAL PARTNER(S), the sharing of profits, the payment of salaries, mechanisms of dissolution, mechanisms of ARBITRATION or dispute resolution, and so forth. Also known as PARTNERSHIP AGREEMENT.",palgrave,0,33.54,13.7,15,15.2,16.3,10.52,14.66666667,14.73
ASB,See ACCOUNTING STANDARDS BOARD.,palgrave,0,50.5,7.2,0,15.95,13.5,11.73,2,11.6
ASCENDING TOP,"A TECHNICAL ANALYSIS formation that reveals repeatedly higher peaks in the price/level of a SECURITY or INDEX, reflecting a BULLISH trend. See also DESCENDING BOTTOM, FALLING TOP, RISING BOTTOM.",palgrave,0,31.38,12.5,0,14.14,12.8,11.98,10.75,15.46
ASEAN,See ASSOCIATION OF SOUTH EAST ASIAN NATIONS.,palgrave,0,55.91,7.2,0,10.74,7.6,10.75,3.5,8.51
ASIAN DEVELOPMENT BANK,"A MULTILATERAL DEVELOPMENT BANK created in 1966 by Asian nations to support economic and social progress and to supply long-term development finance to member countries, mod- eled after the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.",palgrave,0,10.57,20.5,0,17.47,24.3,13.04,25.5,20.86
ASIAN OPTION,"A COMPLEX OPTION that grants the buyer a payoff based on the geometric or arithmetic MEAN price of the UNDERLYING reference over a predetermined averaging period (i.e., ASIAN TAIL). The payoff can be determined by applying the average path to the price of the underlying (AVERAGE PRICE OPTION) or the STRIKE PRICE (AVERAGE STRIKE OPTION). Also known as AVERAGE OPTION.",palgrave,0,42.72,12.3,15,11.43,12.8,9.37,14.33333333,14
ASIAN TAIL,The length of the averaging period in an ASIAN OPTION.,palgrave,0,61.33,7.2,0,6.76,4.8,10.45,6,12
ASK,See OFFER.,palgrave,0,77.91,2.9,0,-7.41,0.8,0.1,0,0.8
ASSAY,"The quantitative evaluation of the quality and purity of the chemical elements in a precious metal or industrial metal, often used in the specifica- tions of a metals-based DERIVATIVE CONTRACT.",palgrave,0,7.19,19.7,0,14.23,19.3,12.49,25,24
ASSENTED STOCK,A SHARE of STOCK held by an INVESTOR who has agreed to the terms of a TAKEOVER bid.,palgrave,0,95.51,4.4,0,3.36,4.9,8.04,8,7.2
ASSET ALLOCATION,"The process of investing CAPITAL across, or within, a specific set of ASSET classes in order to achieve a desired RISK/RETURN profile. See also DISCRETIONARY TACTICAL , STRATEGIC , SYSTEMATIC TACTICAL , TACTICAL .",palgrave,0,22.41,13.9,0,15.36,14.3,11.75,12.5,12.67
ASSET-AT-EXPIRY OPTION,"A BINARY-BARRIER OPTION that grants the buyer a payoff at expiry equal to a fixed ASSET amount if the price of the UNDERLYING market reference breaches the BARRIER at any time during the transaction. See also ASSET-AT-HIT OPTION, BINARY OPTION.",palgrave,0,42.72,12.3,0,11.55,12.7,9.76,13.5,13
ASSET-AT-HIT OPTION,"A BINARY-BARRIER OPTION that grants the buyer an immediate payoff equal to a fixed ASSET amount if the price of the UNDERLYING market reference exceeds the BARRIER. See also ASSET-AT-EXPIRY OPTION, BINARY OPTION.a SPECIAL PURPOSE ENTITY or a CONDUIT, which is secured by pools of ASSETS, such as short-term LOANS, RECEIVABLES, or SECURITIES.",palgrave,0,27.66,16,0,13.35,17.5,11.8,18.25,16.64
ASSET-BASED LOAN,"A RECOURSE or NONRECOURSE LOAN granted by a BANK or other financial institution to a customer for use in acquiring INVENTORY, machinery, equipment, or other FIXED ASSETS (apart from real estate). The underlying asset is often used to secure the loan. Also known asASSET FINANCING.",palgrave,0,47.79,10.3,12.5,11.53,10.8,9.99,10.16666667,12.22
ASSET CARD,See DEBIT CARD.,palgrave,0,93.81,0.9,0,-2.38,0.5,9.05,0.5,1.2
ASSET CONVERSION LOAN,See SELF-LIQUIDATING LOAN.,palgrave,0,9.21,12.7,0,16.95,17.8,9.05,1.5,14.53
ASSET COVERAGE,"The ability for a company to use its ASSETS to cover a par- ticular financial CLAIM or LIABILITY, such as a class of DEBT or PREFERRED STOCK. Asset coverage can be computed via:where TA equals total assets (expressed in terms of BOOK VALUE or LIQUIDATING VALUE), IN is INTANGIBLES, Cl is the claim being covered, ClSR is any claim ranking senior to Cl. The greater the asset coverage, the stronger the financial position and flexibility of the company.",palgrave,0,45.09,13.4,15.5,9.99,14.2,10.8,17.66666667,15.53
ASSET FINANCING,See ASSET-BASED LOAN.,palgrave,0,59.97,5.6,0,7.32,9.9,14.31,1.5,1.2
ASSET-FUNDING LIQUIDITY RISK,"The RISK of loss arising from an inabil- ity to obtain unsecured funding at a reasonable economic cost, causing a forced pledge or sale of ASSETS at a loss. A subcategory of LIQUIDITY RISK. See also ASSET LIQUIDITY RISK, ENDOGENOUS LIQUIDITY, EXOGENOUS LIQUIDITY, FUNDING LIQUIDITY RISK.",palgrave,0,39.03,11.6,14.1,11.65,11,10.57,11.33333333,12.21
ASSET IMPAIRMENT,"A decline in the value of an ASSET as a result of dam- age, obsolescence, or DEFAULT. The value of an impaired asset can be reduced or written off in the FINANCIAL STATEMENTS of the organization, generally by an amount obtained from an impairment test.",palgrave,0,48.64,12.1,0,9.06,11.6,9.31,13.75,13.44
ASSET-LIABILITY COMMITTEE (ALCO),"A management body within a BANK or financial institution that is responsible for establishing RISK MANAGEMENT and funding policies as related to ASSET-LIABILITY MANAGEMENT.SENSITIVE ASSETS, RATE-SENSITIVE LIABILITIES.",palgrave,0,-23.62,23.3,0,22.98,25.4,13.75,24.5,24.13
ASSET LIQUIDITY RISK,"The RISK of loss arising from an inability to sell or pledge ASSETS at, or near, their carrying value when needed. A subcategory of LIQUIDITY RISK. See also ASSET-FUNDING LIQUIDITY RISK, ENDOGENOUS LIQUIDITY, EXOGENOUS LIQUIDITY, FUNDING LIQUIDITY RISK.",palgrave,0,24.74,13,14.1,13.44,11.7,9.67,9,11.4
ASSET MANAGEMENT,"(1) The process of managing the INVESTMENT CAPITAL of clients, with the aim of achieving specific goals which may include preservation of capital, maximization of current income, optimization of tax position, and so forth. The asset management function may be discre- tionary or nondiscretionary, and is typically performed by a financial insti- tution, such as a BANK, BROKER/DEALER, HEDGE FUND, MUTUAL FUND, or INSURER, for a fee. (2) The process of managing the ASSETS of a company in order to achieve the best possible operating efficiencies. (1) Also known asINVESTMENT MANAGEMENT.",palgrave,0,16.83,22.2,0,13.71,27,12.49,34.25,25.23
ASSET MANAGER,See PORTFOLIO MANAGER.,palgrave,0,9.21,12.7,0,11.15,11.5,9.05,2.5,14.53
ASSET-OR-NOTHING OPTION,"A BINARY-BARRIER OPTION that grants the buyer a payoff equal to a fixed ASSET value if the price of the UNDERLYING market reference exceeds the STRIKE PRICE at EXPIRY. See also BINARY OPTION, CASH-OR-NOTHING OPTION.",palgrave,0,45.25,11.3,0,11.42,11.7,10.37,10.75,11.57
ASSET SENSITIVE,See POSITIVE GAP.,palgrave,0,59.97,5.6,0,1.52,3.6,14.31,1.5,14.53
ASSET STRIPPER,A company or individual that engages in ASSET STRIPPING. See also RAIDER.,palgrave,0,48.47,8,0,8.17,5.9,10.51,3,5.73
ASSET STRIPPING,"The process of selling corporate ASSETS acquired in a TAKEOVER or ACQUISITION. Such disposals may occur when the value of selling assets and using the proceeds to repay DEBT or invest in alternative ventures is estimated to be greater than the value of preserving them on the BALANCE SHEET. See also BREAKUP VALUE, LIQUIDATION VALUE.",palgrave,0,52.9,10.4,11.9,11.72,11.6,10.57,11.5,12.41
ASSET SWAP,"An OVER-THE-COUNTER INTEREST RATE SWAP that exchanges BOND COUPONS from FIXED RATES into FLOATING RATES, or vice versa, creating a synthetic investment that meets an INVESTOR’s speci- fications. An asset swap can thus be viewed as a package of an interest rate swap and a risky bond, where the bondholder pays the fixed coupon from the risky bond and receives the floating coupon, itself a combination of theASSET SWAP SPREAD and the FLOATING RATE benchmark (e.g., LIBOR). See also LIABILITY SWAP.",palgrave,0,52.53,12.6,14.1,11.78,16.3,11.21,17.16666667,15.24
ASSET SWAP SPREAD,"The floating COUPON paid above a FLOATING RATE BENCHMARK in an ASSET SWAP, representing the CREDIT RISK of a risky BOND above the INTERBANK MARKET rate. See also BOND SWAP SPREAD, SWAP SPREAD.",palgrave,0,71.65,7.4,0,9.86,9.7,9.72,8.25,9.02
ASSET SWAPTION,See SYNTHETIC LENDING FACILITY.,palgrave,0,-8.73,15.5,0,15.95,13.5,15.68,3,21.6
ASSET TURNOVER,"A measure of a company’s efficiency in utilizing its ASSETS, generally calculated as the number of times during the year the value of the company’s assets is generated in REVENUES. It is computed as:where Rev is the company’s revenues, and TA is the company’s total assets. The higher the ratio, the more effective is the company in utilizing its assets to gen- erate value. Also known as CAPITAL TURNOVER.",palgrave,0,45.46,11.2,13.8,10.09,10.3,8.84,12.125,11.56
ASSET VALUATION,"The process of assigning an economic worth to a com- pany’s ASSETS. The valuation process depends on the specific nature of the asset: SECURITIES and other financial assets may be valued at a current market price, while FIXED ASSETS and INTANGIBLE ASSETS may require estimates provided by external assessors or experts. The process must generally be confirmed by AUDITORS for the purposes of publishing periodic FINANCIAL STATEMENTS.",palgrave,0,31.92,14.3,16.7,14.28,15.5,11.81,16.83333333,18.47
ASSET VALUE,"The value of a company’s ASSETS less its LIABILITIES, provid- ing a theoretical measure of its worth in the event of a breakup. The figure can be transformed to a per share value by dividing by the total number of SHARES outstanding.",palgrave,0,58.62,10.3,0,8.7,10.6,9.94,13,13.16
ASSIGNED AMOUNT UNIT (AAU),A tradable unit of a CARBON DIOXIDE EQUIVALENT.,palgrave,0,63.36,6.4,0,8.66,6.1,13.9,4,8.2
ASSIGNEE,"The party to whom an ASSIGNOR transfers TITLE, CLAIM, or property, as in a SECURED DEBT transaction.",palgrave,0,54.22,9.9,0,9.74,10.3,10.98,11.5,13.86
ASSIGNOR,"The party assigning title, CLAIM, or property to the ASSIGNEE, as in a SECURED DEBT transaction.APACS comprises of individual companies that focus on specific segments of the sector, including interbank clearing payments and settlements, direct DEBIT and CREDIT payments, interbank check clearing, and ELECTRONIC FUNDS TRANSFERS. See also CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM.the United Kingdom, an association that represents the interests of CHARTERED CERTIFIED ACCOUNTANTS.",palgrave,0,5.16,20.5,0,19.85,25.1,13.61,25.5,24.05
ASSUMABLE MORTGAGE,"A MORTGAGE that can be transferred from the original BORROWER to a new purchaser of the underlying property. The assumability feature eliminates the need for the original LOAN to be repaid and a new loan to be arranged, which reduces time and expense.",palgrave,0,49.65,11.7,0,10.5,12.2,9.84,14.75,15.11
ASSUMED BOND,"A BOND issued by one company that is the legal LIABILITY of another company, such as might be found between a PARENT and SUBSIDIARY or two JOINT VENTURE partners.See COMBINED RATIO.See RETENTION.",palgrave,0,30.54,17,0,12.31,18.7,10.65,21,15.3
ASSUMPTION REINSURANCE,"A REINSURANCE mechanism where a REINSURER assumes the CEDING INSURER’s obligations through a wholesale transfer of hundreds, or thousands, of individual INSURANCE policies.",palgrave,0,14.29,17,0,20.08,20.8,14.39,18.5,21.37
ASSURANCE,"In the United Kingdom, any form of INSURANCE against an event that will eventually occur, such as death.",palgrave,0,70.13,8,0,9.51,10.3,8.04,11,11.64
ASSURED,"In the United Kingdom, INSURED.",palgrave,0,66.4,5.2,0,7.28,6.5,7.04,1.5,2
ASSURER,"In the United Kingdom, INSURER.",palgrave,0,49.48,7.6,0,7.28,6.5,7.04,2.5,10
ASYMMETRIC INFORMATION,"Any instance where one party has more information than another party about a particular current or future event. This can be used to the advantage of the party with additional information – only, however, if it does not violate INSIDER TRADING laws or other rules.",palgrave,0,40.18,13.2,0,10.86,12.9,9.31,15.75,14.33
AT BEST,See  ORDER.,palgrave,0,35.61,8.8,0,-7.41,0.8,0.1,0,0.8
AT BEST ORDER,An ORDER to buy or sell SECURITIES at the best price avail- able at the time the order is placed. An at best order is a form of MARKET ORDER. Also known as AT BEST.,palgrave,0,84.98,4.3,6.4,2.42,1.9,5.57,5.166666667,5.82
AT CALL,Secured funds that have been lent by a BANK or DISCOUNT HOUSE on a short-term basis (often overnight) and which must be repaid immediately by the BORROWER upon demand.,palgrave,0,50.5,13.4,0,10.34,15.6,9.98,16.5,14.36
AT-EXPIRY OPTION,"A BINARY OPTION that grants the buyer a payoff at EXPIRY equal to a fixed ASSET or cash value if the price of the UNDERLYING market reference breaches the BARRIER at any time during the transaction. See also ASSET-, AT-HIT OPTION, BINARY-BARRIER OPTION, CASH-.",palgrave,0,40.69,13.1,0,10.15,12.8,9.39,14,13.35
AT-HIT OPTION,"A BINARY OPTION that grants the buyer an immediate payoff equal to a fixed ASSET or cash value if the price of the UNDERLYING market reference breaches the BARRIER at any time during the transaction. See also ASSET-, AT-EXPIRY OPTION, BINARY-BARRIER OPTION, CASH-.",palgrave,0,32.73,14,0,11.43,13.6,9.84,14.75,14.18
AT LIMIT,See LIMIT ORDER.,palgrave,0,59.97,5.6,0,-0.46,2.1,9.05,0.5,1.2
AT SIGHT,A term included on a BILL OF EXCHANGE indicating that pay- ment is due when the bill is presented for collection. See also AFTER SIGHT.,palgrave,0,67.25,7,0,6.89,5.7,7.41,7.25,11.4
AT THE CLOSE ORDER,"An ORDER to buy or sell SECURITIES at the market closing price; if the order cannot be fully executed, it is cancelled. See also AT THE OPEN ORDER.",palgrave,0,65.73,7.6,0,6.14,5.8,6.59,7,8.46
AT THE FIGURE ORDER,See AT THE FULL ORDER.,palgrave,0,100.24,0.5,0,-2.01,-2.1,0.25,1.5,2
AT THE FULL ORDER,An ORDER to buy or sell SECURITIES at the integer closest to the BID (for a purchase) or OFFER (for a sale). Also known as AT THE FIGURE ORDER.,palgrave,0,73.68,6.6,0,3.94,4.5,6.53,7.25,8.56
AT-THE-MONEY,"A condition where the STRIKE PRICE of an OPTION is pre- cisely equal to the current price of the UNDERLYING reference ASSET. An at-the-money option has no INTRINSIC VALUE but features maximum TIME VALUE. See also IN-THE-MONEY, MONEYNESS, OUT-OF-THE-MONEY.",palgrave,0,49.82,9.5,11.9,12.17,11.3,9.54,7.833333333,11.35
AT THE OPEN ORDER,"An ORDER to buy or sell SECURITIES at the market open price; if the order cannot be fully executed, it is cancelled. See also AT THE CLOSE ORDER.",palgrave,0,65.73,7.6,0,5.73,5.4,6.02,7,8.46
ATM,See AUTOMATED TELLER MACHINE.,palgrave,0,8.2,13.1,0,13.05,11.2,11.73,2,11.6
ATS,See ALTERNATIVE TRADING SYSTEM.,palgrave,0,8.2,13.1,0,15.95,13.5,15.68,2,11.6
ATTACHMENT METHOD,"A process of combining several existing MONOLINE POLICIES i.e., separate INSURANCE covers for PROPERTY ANDCASUALTY, general LIABILITY, and others, under a single master agreement, without redrafting, in order to consolidate the individual components. See also SINGLE TEXT METHOD.",palgrave,0,1.43,17.8,0,18.16,18.1,12.47,16,18.13
ATTORNEY-IN-FACT,"A party holding POWER OF ATTORNEY, and who is therefore authorized to deal on behalf of the executor of the power of attorney.",palgrave,0,48.13,12.3,0,8.71,11.4,8.9,15.5,14.42
AUCTION,"A general market system where SECURITIES or other ASSETS are purchased and sold through competitive BIDS and OFFERS, through DEALERS or BROKERS acting as AGENTS for clients. Also known as  MARKET, ORDER-DRIVEN MARKET. See also DEALER MARKET, DUTCH , ENGLISH , REVERSE DUTCH , QUOTE-DRIVEN MARKET, UNIFORM PRICE .STOCK.",palgrave,0,39.03,11.6,10.5,14.43,13.8,9.89,8.833333333,7.86
AUDIT FEE,The amount paid by a company or economic entity for the ser- vices provided by an external AUDITOR.,palgrave,0,44.75,11.5,0,8.18,9,10.67,15,18.31
AUDIT REPORT,The report prepared by internal and/or external AUDITORS that provides evidence of the findings and results obtained during the INTERNAL AUDIT and/or EXTERNAL AUDIT of a company’s financial con- trols and reporting.,palgrave,0,13.62,19.3,0,15.97,21.7,12.63,25,21.55
AUDIT TRAIL,The total of all documentation and records that evidence the financial recording and reporting used by a company in the preparation of its FINANCIAL STATEMENTS. AUDITORS frequently rely on the audit trail to per- form their INTERNAL AUDIT and EXTERNAL AUDIT functions.,palgrave,0,33.24,13.8,0,13.63,14.5,11.45,16,16.97
AUDITOR,An authorized ACCOUNTANT or financial expert that analyzes and verifies the nature and accuracy of a company’s FINANCIAL STATEMENTS and the strengths of its control processes. The auditor may be part of the com- pany (internal auditor) or a member of an external ACCOUNTING firm (exter- nal auditor).,palgrave,0,30.2,15,0,12.6,15.4,12.06,19.5,19.6
AUFSICHTSRAT,The SUPERVISORY BOARD of a German CORPORATION. See also VORSTAND.,palgrave,0,32.56,10,0,9.6,7.4,10.2,2.5,10
AUNT MILLIE,An unsophisticated INVESTOR. See also WIDOWS AND ORPHANS.,palgrave,0,25.12,10.8,0,11.6,10,11.73,1.5,6.6
AUTARKY,"An economic system without any external TRADE, or one where trade is reduced or eliminated through barriers and QUOTAS.",palgrave,0,43.73,11.9,0,12.94,13.1,10.4,13.5,16.02
AUTHORIZATION RISK,"The RISK of loss that occurs when an employee or AGENT of a company commits the firm to a legally binding, but unauthor- ized, transaction; in most instances the firm will be required to perform as contracted. A subcategory of OPERATIONAL RISK.",palgrave,0,58.62,10.3,0,9.92,11.8,11.07,13.5,13.16
AUTHORIZED CAPITAL,"The maximum number of SHARES of COMMON STOCK a company is permitted to issue, per the terms of its ARTICLES OF INCORPORATION. Issuance in excess of authorized capital requires an amend- ment to the articles. Also known as AUTHORIZED SHARE CAPITAL, NOMINAL CAPITAL, REGISTERED CAPITAL.",palgrave,0,39.33,11.5,15.5,12.17,11.2,10.35,12.16666667,12.22
AUTHORIZED FINANCIAL ADVISOR,"In the United Kingdom, an invest- ment and finance advisor that has received authorization to provide profes- sional services under the Financial Services Act of 1986. See also INVESTMENT ADVISOR.",palgrave,0,39.33,11.5,0,13.45,12.3,11.22,9,11.33
AUTHORIZED INSURER,See ADMITTED INSURER.,palgrave,0,9.21,12.7,0,9.23,9.9,14.31,2.5,27.87
AUTHORIZED INVESTMENTS,INVESTMENTS that a TRUSTEE or INVESTMENT ADVISOR is legally permitted to execute on behalf of a TRUST fund.,palgrave,0,44.75,11.5,0,11.08,11.1,12.42,14,18.31
AUTOCORRELATION,"A statistical measure that indicates the degree of CORRELATION of a random variable with itself; specifically, it measures the relationship between a value in a time series and those that occur before and after. Positive autocorrelation indicates that deviations from the equilibrium exist across periods, while negative autocorrelation means that deviations tend to be reversed. See also CORRELATION.",palgrave,0,18.05,15.5,15.9,16.53,16.2,10.04,14.66666667,15.31
AUTOMATED SCREEN TRADING,"A trading mechanism that relies entirely on electronic communications, display, and EXECUTION to support incom- ing BIDS and OFFERS. Automated screen trading, which is a feature of many EXCHANGES and forms the central architecture of ELECTRONIC COMMUNICATIONS NETWORKS, removes the physical element of SECURITIES and COMMODITIES trading.",palgrave,0,13.78,17.2,0,18.05,19.5,13.2,18.25,18.76
AUTOMATED TELLER MACHINE (ATM),"An electronic machine operated by a BANK, SAVINGS AND LOAN (BUILDING SOCIETY), or other financial institution that is able to dispense cash, accept DEPOSITS, and arrange trans- fers between a customer’s accounts.",palgrave,0,30.54,17,0,14.69,21.2,10.65,21,19.05
AUTOMATIC CLEARINGHOUSE (ACH),"In the United States, a national ELECTRONIC FUNDS TRANSFER network that clears and settles recurring pay- ments between FINANCIAL INSTITUTIONS, as well as DEBITS and CREDITS generated through business-to-business commerce and trade transactions.",palgrave,0,21.06,18.5,0,19.68,25.4,12.93,24.5,21.68
AUTOMATIC COVERAGE,An INSURANCE CONTRACT that auto- matically comes into effect when an INSURED acquires new property or revalues existing property. Automatic coverage eliminates the possibility ofUNDERINSURANCE.AUTOMATIC PROPORTIONAL REINSURANCE.,palgrave,0,-18.38,19.2,0,24.64,20.6,14.25,12.75,21.7
AVAILABILITY,The time at which point funds placed by a depositor in a BANK become usable. Availability can range from immediate (for WIRE TRANSFERS) to several days (for CHECKS written on banks in different locales). See also FINALITY.,palgrave,0,58.99,8.1,11.2,9.9,8.4,9.79,7.166666667,9.24
AVAILABLE RESERVES,The difference between a BANK’s excess RESERVE balance with the CENTRAL BANK and net funds borrowed through the central banking system or via a DISCOUNT WINDOW.,palgrave,0,53.55,12.3,0,12.89,16,11.61,14,10.4
AVAL,"A third party GUARANTEE on a BILL OF EXCHANGE, BANKER’S ACCEPTANCE, or PROMISSORY NOTE that is intended to reinforce the CREDITWORTHINESS of the obligation.",palgrave,0,30.2,15,0,14.45,16.7,10.09,19,21.27
AVERAGE DOWN,"A strategy of buying additional SECURITIES at a lower price in order to reduce the average cost of the entire position. See also AVERAGE UP,AVERAGING.",palgrave,0,33.41,11.7,0,10.37,8.6,10.57,8.75,14.6
AVERAGE EXPOSURE,The POTENTIAL EXPOSURE of an OVER-THE- COUNTER DERIVATIVE based on the average MATURITY of the transaction. See also TERMINAL EXPOSURE.,palgrave,0,27.49,11.9,0,13.72,10.9,10.45,8,18
AVERAGE INVENTORY,An INVENTORY management and ACCOUNTING approach where inventory is transferred at the average cost of all the goods held in stock. Also known as AVERAGE STOCK.,palgrave,0,49.82,9.5,0,11.3,9.3,7.93,8.5,11.35
AVERAGE OPTION,See ASIAN OPTION.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
AVERAGE PRICE OPTION,"A COMPLEX OPTION that grants the buyer a payoff equal to the difference between an average price on an UNDERLYING market reference and a predefined STRIKE PRICE. See also ASIAN OPTION, AVERAGE STRIKE OPTION.",palgrave,0,54.22,9.9,0,11.6,11.2,9.59,11.5,11.51
AVERAGE STOCK,See AVERAGE INVENTORY.,palgrave,0,-24.64,17.4,0,11.15,11.5,14.31,2.5,27.87
AVERAGE STRIKE OPTION,"A COMPLEX OPTION that grants the buyer a payoff equal to the difference between an average STRIKE PRICE and the ter- minal value of the UNDERLYING market reference. See also ASIAN OPTION, AVERAGE PRICE OPTION.",palgrave,0,53.71,10.1,0,10.79,10.9,9.92,11.25,10.43
AVERAGE TAX RATE,"The average TAX levied on a particular tax base, com- puted as the tax liability (due or paid) divided by the taxable income. See alsoEFFECTIVE TAX RATE, MARGINAL TAX RATE, STATUTORY TAX RATE.",palgrave,0,46.27,10.9,0,9.16,9.7,9.72,11.75,15.08
AVERAGE UP,"A strategy of buying additional SECURITIES at increasing prices, thereby raising the average cost of the entire position. See also AVERAGE DOWN, AVERAGING.",palgrave,0,25.96,12.5,0,14.07,11.5,12.45,8.75,16.77
AVERAGING,"The process of buying or selling additional amounts of an INVESTMENT as the price falls or rises. Also known as DOLLAR COST . See also AVERAGE DOWN, AVERAGE UP.",palgrave,0,62.04,6.9,9.7,7.45,5.4,9.17,5.166666667,8.01
AWAY FROM THE MARKET,"A BID on a LIMIT ORDER that is lower than the current price, or an ASK that is higher than the current price. The order is held for later EXECUTION unless it is specifically identified as an ALL-OR-NONE ORDER.",palgrave,0,60.14,9.7,0,7.43,8.9,7.84,11.25,10.88
AXE,A significant RISK position held on the books of a FINANCIAL INSTITUTION that it wishes to sell or reduce as a matter of priority. Axed posi- tions generally feature attractive pricing or sales credits in order to incent sales- people to aggressively sell them to clients.,palgrave,0,39.67,13.4,0,11.15,13.3,11.99,15.5,16.16
B-NOTE,A TRANCHE of SUBORDINATED DEBT created out of a FIRST LIEN COMMERCIAL MORTGAGE.,palgrave,0,49.82,9.5,0,11.3,9.3,12.78,8.5,14.43
B-SHARES,"(1) On various STOCK EXCHANGES, the SHARES of small com- panies or those with limited VOTING RIGHTS. (2) Dollar-denominated STOCKS listed and traded on the SHANGHAI STOCK EXCHANGE and the Shenzhen Stock Exchange, available to both domestic and foreign INVESTORS. (1,2) See also A-SHARE.",palgrave,0,26.82,20.5,0,13.65,26.6,13,26,21.24
B2B EXCHANGE,See BUSINESS-TO-BUSINESS EXCHANGE.,palgrave,0,9.21,12.7,0,30.52,30.3,0.15,1.5,1.2
B2C EXCHANGE,See BUSINESS-TO-CONSUMER EXCHANGE.,palgrave,0,9.21,12.7,0,30.52,30.3,9.05,1.5,1.2
B&C LOAN,See SUBPRIME LOAN.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
BA,See NKER’S ACCEPTANCE.,palgrave,0,59.97,5.6,0,11.15,11.5,14.31,1.5,14.53
BABY BOND,"(1) A BOND with a small FACE VALUE denomination (e.g., $1000) that is targeted specifically at RETAIL INVESTORS. (2) In the United Kingdom, TAX-exempt bonds offered by FRIENDLY SOCIETIES that yield a specific sum over a return horizon of not less than 10 years.",palgrave,0,35.28,19.3,0,10.52,23.9,13,28,22.15
BACK BOOK,"A DEALER’s proprietary trading BOOK, in which specu- lative positions can be held. See also FRONT BOOK.",palgrave,0,71.31,5.4,0,8.95,6.9,9.63,4.25,8.11
BACK DOOR,"In the United Kingdom, a process where the BANK OF ENGLAND attempts to influence MONEY SUPPLY indirectly by dealing in TREASURY BILLS through its own account, at market rates. See also FRONT DOOR.",palgrave,0,63.19,8.5,0,10.55,10.2,9.24,8.25,9.02
BACK DOOR LISTING,A process where an unlisted or PRIVATE COMPANY gains a STOCK EXCHANGE listing through a MERGER or ACQUISITION with a company that is already listed.,palgrave,0,46.1,13,0,11.55,14.4,9.93,16.5,13.2
BACK LOAD,A mechanism in which COMMISSIONS on a MUTUAL FUND or INVESTMENT TRUST are charged to INVESTORS at the time of sale or exit. See also FRONT LOAD.,palgrave,0,74.69,6.2,0,7.07,5.9,8.4,7.75,11.33
BACK MONTH,See FURTHEST MONTH.,palgrave,0,93.81,0.9,0,5.35,6.8,9.05,0.5,1.2
BACK OFFICE,"The general operational and administrative infrastruc- ture and functions of a BANK or financial institution that are used to sup- port the activities of those generating revenues. The back office is responsible for SETTLEMENTS, CLEARING, financial controls, ACCOUNTING, reporting, and technology. See also FRONT OFFICE.",palgrave,0,22.41,13.9,15.5,16.41,14.9,11.05,12.16666667,16.67
BACK-TO-BACK LOAN,"(1) A pair of local CURRENCY LOANS between two companies, documented under a single agreement providing for the right of OFFSET, which allows the companies to on-lend the local currency funds to their own SUBSIDIARIES and eliminates the need for the subsidiaries to sourcetheir own local financing. (2) A loan commitment from a BANK to a real estate developer that includes a construction loan for initial building and a perman- ent MORTGAGE loan for ongoing financing once the project has been devel- oped. (1) See also PARALLEL LOAN.",palgrave,0,-17.85,37.6,0,12.5,46.5,13.38,59,40.65
BACK-TO-BACK SWAP,"A SWAP that acts as a mirror image of an existing swap on the books of an institution, serving to neutralize the MARKET RISKS. Such a swap does not, however, eliminate COUNTERPARTY CONTINGENT CREDIT RISK. See also UNWIND.",palgrave,0,58.58,8.2,11.9,8.98,7.7,10.08,7.666666667,11.4
BACK UP THE TRUCK,The purchase of a large block of SECURITIES by an INVESTOR who is BULLISH and expects upward price movement.,palgrave,0,69.11,8.3,0,9.86,10.4,9.57,10.5,9.71
BACKING AWAY,"A situation where a MARKET MAKER refuses to perform on a quoted BID, generally in contravention of formal or informal market-making rules conveyed through AFFIRMATIVE OBLIGATIONS.",palgrave,0,11.25,18.2,0,16.71,19.5,12.82,21,21.17
BACKSPREAD,An OPTION strategy designed to take advantage of VOLATILITY. A LONG backspread is created through the sale of a smaller quantity of closer-to- the-money PUT OPTIONS or CALL OPTIONS and the purchase of a larger quan- tity of farther-from-the-money puts or calls. See also RATIO VERTICAL SPREAD.,palgrave,0,55.54,9.4,11.9,11.66,11.2,10.8,10.16666667,11.39
BACKTESTING,"The process of determining the validity of a VALUE-AT-RISK model by comparing actual profit and loss experience with results predicted by the model. The process is also applicable in INVESTMENT management, where an investment strategy is applied to prior periods to create a hypothetical per- formance history. See also PROFIT AND LOSS EXPLAIN.",palgrave,0,28.13,13.7,15.5,13.63,13.4,11.07,13.5,16.14
BACKUP LINE,See SWINGLINE.,palgrave,0,77.91,2.9,0,4.2,10.2,11.63,0,0.8
BACKWARDATION,See NORMAL .,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0.5,0.8
BACS,See BANKERS’ AUTOMATED CLEARING SYSTEM.,palgrave,0,15.64,12.3,0,17.72,14,16.52,2.5,10
BAD BANK,"A special BANK created and chartered to hold a sponsoring bank’s NONPERFORMING LOANS. The sponsoring bank transfers the loans to the bad bank, thus improving its asset quality and becoming a “good bank.” The bad bank, which is generally established as a self-liquidating TRUST, attempts to manage and liquidate the PORTFOLIO of loans in the most effi- cient manner possible.",palgrave,0,41.03,15,0,13.01,18.3,10.91,21.5,18.67
BAD DEBT,Any extension of CREDIT that is no longer current with regard to PRINCIPAL and/or INTEREST payments and which is deemed unlikely to be repaid by the DEBTOR. When a debt is classified as bad it must be written off against income or against a previously established LOAN LOSS RESERVE or other reserve for bad debt. Also known as BAD LOAN.,palgrave,0,59.64,9.9,11.9,9.11,10.3,9.1,12.33333333,12.67
BAD DEBT PROVISION,A noncash PROVISION reflected through a com- pany’s INCOME STATEMENT that is used to cover CREDIT extended to one or more DEBTORS that is not expected to be repaid in the current ACCOUNTING period. See also BAD DEBT RESERVE.,palgrave,0,51.68,10.9,0,9.92,10.8,11.08,12.75,13.95
BAD DEBT RESERVE,Funds set aside by a company to cover the potential DEFAULT or impairment of an outstanding LOAN or DEBT granted to a third party. The reserve is created by a DEBIT to the bad debt expense account and a CREDIT to the BAD DEBT PROVISION account (establishing a CONTRA- ACCOUNT). See also LOAN LOSS RESERVE.,palgrave,0,61.36,9.2,11.9,8.53,9.2,8.85,11.5,11.68
BAD LOAN,See BAD DEBT.,palgrave,0,119.19,-2.7,0,-6.26,-2.7,9.05,0.5,1.2
BAFIN,See BUNDESANSTALT FUR FINANZDIENSTLEISTUNGSAUFSICHT.,palgrave,0,-51.03,21.4,0,46.4,38.3,11.73,3,21.6
BALANCE OF PAYMENTS,"An economic account reflecting a country’s trans- actions and dealings with other nations through its CURRENT ACCOUNT, CAPITAL ACCOUNT, and FOREIGN EXCHANGE RESERVES.",palgrave,0,31.21,14.6,0,18.34,19.6,11.64,14.5,12.68
BALANCE OF TRADE,"The difference between a country’s VISIBLE and INVISIBLE EXPORTS and IMPORTS, and a primary component of the BALANCE OF PAYMENTS CURRENT ACCOUNT. A surplus balance of trade means exports are greater than imports, a deficit means imports are greater than exports.In the United States the balance sheet takes the following general form:In the United Kingdom it assumes the following general form:",palgrave,0,40.52,15.2,0,14.52,19.6,9.03,19.75,14.82
BALANCE SHEET HEDGE,A HEDGE transaction that is created to protect against TRANSLATION RISK.,palgrave,0,60.31,7.6,0,13.73,10.6,11.36,7.5,15.31
BALANCED BUDGET MULTIPLIER,"Under the KEYNESIAN FORMULA, the result on AGGREGATE DEMAND (i.e., GROSS DOMESTIC PRODUCT) of a change in government expenditures once these have been neutralized by an equal change in TAXES.",palgrave,0,32.57,16.2,0,13.3,19,11.44,22,20
BALANCING CHARGE,A TAX charge that may be incurred by a company when it sells ASSETS for more than their carrying value.,palgrave,0,68.1,8.7,0,6.79,8.4,7.79,12,10
BALLOON,See  LOAN.,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0,0.8
BALLOON LOAN,A LOAN structured with periodic INTEREST payments and PRINCIPAL repayments throughout the transaction and a large princi- pal repayment at MATURITY. The balloon structure can be applied equally toCOMMERCIAL LOANS and MORTGAGE LOANS. Also known as BALLOON. See also BULLET LOAN.,palgrave,0,44.1,9.7,11.2,14.07,10.9,10.69,6.125,11.92
BALTIC EXCHANGE DRY INDEX,"A weighted composite INDEX of the daily shipping rates compiled by the BALTIC EXCHANGE for four classes of ships carrying dry raw materials on various main shipping routes. The index tabu- lates subindex prices for moving dry bulk commodities of specific size and route on Capesize (100,000 dead weight tons), Panamax (60,000–80,000 tons), Supramax (45,000–59,000 tons), and Handysize (15,000–35,000 tons) ships. See also BALTIC EXCHANGE INTERNATIONAL TANKER ROUTE INDEX.",palgrave,0,56.59,11.1,11.9,15.03,17.6,13.24,13.83333333,13.26
BANCASSURANCE,"In Europe, a financial conglomerate that engages in a broad range of financial services, including LOANS, DEPOSITS, INSURANCE, SECURITIES UNDERWRITING, INVESTMENT MANAGEMENT, and TRADING. Bancassurance groups often deal through separately incorporated and regu- lated entities but face no particular restriction on the scope of services they can offer. See also UNIVERSAL BANK.",palgrave,0,20.08,14.8,16.3,17.57,16.8,12.39,14,18.46
BAND,"A trading range for a SECURITY or CURRENCY that is bounded by upper and lower limits. A band may exist informally as a technical indicator, or formally to guide currency rates or trading activity.monitor the activities of banks to ensure that clients, particularly small deposi- tors, are properly protected.",palgrave,0,21.23,16.4,0,12.94,15.8,12.59,18.25,19.6
BANK ACCOUNT,"An ACCOUNT opened by a customer with a BANK or other financial institution that can be used for effecting payments (e.g., through a CHECKING ACCOUNT or CURRENT ACCOUNT, via CHECKS or DIRECT DEBITS) or accumulating savings (e.g., via a SAVINGS ACCOUNT).",palgrave,0,29.86,19.3,0,11.91,23.4,10.68,24.5,20.3
BANK ADVISORY COMMITTEE,"A form of CREDITOR COMMITTEE that deals with RESCHEDULING or RESTRUCTURING of a country’s outstanding DEBTS, generally comprised of key BANKS and other lenders.",palgrave,0,38.66,13.8,0,15.67,17.5,12.72,17,17.93
BANK CHARGE,"Any fee levied by a BANK on its customers for the provision of specific services, such as transactions on AUTOMATED TELLER MACHINES, WIRE TRANSFERS, RETURNED CHECKS, and so forth.",palgrave,0,50.5,13.4,0,12.49,17.6,12.15,18.5,17.12
BANK DISCOUNT RATE,See BANKER’S ACCEPTANCE RATE.,palgrave,0,75.88,3.7,0,13.05,11.2,11.73,2,11.6
BANK DRAFT,"A CHECK that a BANK draws on itself, used when the PAYEE does not wish to accept the credit of the customer as DRAWER. The customer purchases the bank draft with good funds, which gives the payee confidence that the check will be honored. Also known as BANKER’S CHECK.",palgrave,0,80.31,6.1,7.8,7.89,7.9,7.67,7.833333333,8.15
BANK GIRO,"A mechanism where a payer can effect an electronic payment or transfer of funds from a BANK ACCOUNT to a payee’s account, even if the accounts are with different BANKS. Also known as BANK TRANSFER. See also GIRO.",palgrave,0,75.5,5.9,8.8,7.93,6.6,8.42,6.333333333,7.19
BANK GUARANTEE,"A GUARANTEE issued by a BANK in support of the undertakings of a client or project. By providing the guarantee, the credit- worthiness of the underlying client or project is substituted by that of the bank.",palgrave,0,53.21,10.3,0,9.34,9.9,9.35,12.5,13.87
BANK HOLDING COMPANY,"A CORPORATION that owns, or has control of, one or more individual BANKS and/or other financial SUBSIDIARIES.",palgrave,0,37.3,12.3,0,12.82,12.8,10.98,11.5,13.86
BANK LINE,"A REVOLVING CREDIT FACILITY established as an ADVISED LINE (i.e., the client is made aware of the size and terms of the facility) or aGUIDANCE LINE (i.e., the client is not advised of the specific size of the line). See also COMMITTED FUNDING.",palgrave,0,58.11,10.5,0,8.24,11.3,9.48,13.75,13.25
BANK OF JAPAN (BOJ),"The Japanese CENTRAL BANK, founded in 1882 and reorganized in 1942, responsible for ensuring overall stability within the domes- tic financial system, managing MONETARY POLICY, issuing BANKNOTES, and operating interbank SETTLEMENT systems.",palgrave,0,-11.77,22.9,0,19.74,25.2,16.57,29,27.8
BANK RATE,See BASE RATE.,palgrave,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
BANK REFERENCE,"A general statement provided by a BANK to potential employers, CREDIT RATING AGENCIES, and TRADE CREDITORS regarding the credit standing of one of its customers. Bank references do not include specific details on balances or payment records in order not to prejudice the customer.",palgrave,0,40.69,13.1,0,13.46,15,11.19,15.5,16.07
BANK RELEASE,An authorization that permits an importer to take posses- sion of goods purchased through TRADE CREDIT.,palgrave,0,63.7,8.4,0,13.63,12.5,11.34,8,8.9
BANK STATEMENT,A periodic (generally monthly) statement issued by a BANK or financial institution to customers that reflects activity and balances in all relevant BANK ACCOUNTS.,palgrave,0,13.28,17.4,0,15.9,17.8,13.38,18,19.6
BANKER,"A professional involved in arranging LOANS or other FINANCING arrangements, structuring CORPORATE FINANCE deals, or managing clientINVESTMENT PORTFOLIOS. See also FINANCIER, INVESTMENT BANKER, PRIVATE BANKER.BANKER’S ACCEPTANCE (BA) RATE.",palgrave,0,14.97,14.7,0,23.95,21.1,15.05,12.5,21.31
BANKER’S ACCEPTANCE (BA) RATE,"The INTEREST RATE representing the DISCOUNT between the FACE VALUE of a BANKER’S ACCEPTANCE and the amount a BANK is willing to pay for the draft, generally a function of the DRAWER’s creditworthiness. Also known as BANK DISCOUNT RATE.",palgrave,0,51.68,10.9,0,11.55,12.1,8.65,12.25,12.93
BANKERS’ BLANKET BOND,An INSURANCE contract that protects a BANK from losses caused by employee FRAUD.,palgrave,0,66.74,7.2,0,11.7,9.7,12.78,7.5,11.35
BANKING,"The area of FINANCE related to taking of DEPOSITS, grant- ing of LOANS, and provision of other financial services, which may include INVESTMENT, TRADING, and advisory.",palgrave,0,36.63,14.6,0,13.12,17.3,13.43,18,18.09
BANKING ACT OF 1933,See GLASS-STEAGALL ACT.,palgrave,0,93.81,0.9,0,11.15,13,9.05,0.5,1.2
BANKING BOOK ACCOUNTING,"An ACCOUNTING process used by a BANK where certain ASSETS, such as LOANS and hold-to-maturity INVESTMENTS, follow an ACCRUAL approach to profit recognition and where impairments are taken on a periodic basis. See also AVAILABLE FOR SALE ACCOUNTING, TRADING BOOK ACCOUNTING.",palgrave,0,33.75,13.6,0,14.68,15.6,10.43,14.75,15.03
BANKING CRISIS,See CREDIT CRISIS.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
BANKING DIRECTIVE,"In the EUROPEAN UNION, a series of require- ments to which BANKS must adhere, including those related to CAPITAL ADEQUACY and solvency, MONEY LAUNDERING, CONCENTRATION RISKS, and cross-border licensing and marketing/distribution of INVESTMENTS. See also BASLE ACCORD, BASLE II, MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE.",palgrave,0,15.31,16.6,0,17.81,19.3,14.06,18.5,21.53
BANKMAIL,"An agreement between a BANK and a company attempt- ing to acquire a TARGET company through a HOSTILE TAKEOVER that bars the bank from financing another company’s competing bid, in exchange for a fee.",palgrave,0,36.97,16.6,0,11.09,18.6,10.9,23,17.13
BANKNOTE,"Paper CURRENCY of a country that serves as legal tender, typ- ically issued by a CENTRAL BANK or other authorized monetary authority. Banknotes, which are effectively a form of FIAT MONEY since they are not backed by GOLD are a convenient MEDIUM OF EXCHANGE. Also known as NOTE.",palgrave,0,55.24,9.5,11.2,9.63,9.2,10.02,9,11.4
BANKRUPTCY ORDER,"In the United Kingdom, an order from the court mak- ing the DEBTOR referenced in a BANKRUPTCY PETITION an undischarged bankrupt who is no longer deemed owner of any property and who must assist the RECEIVER in its proper identification and collection.",palgrave,0,28.85,19.7,0,12.2,23.1,11.36,28,23.47
BANKRUPTCY PETITION,"In the United Kingdom, a document presented by CREDITORS (or the DEBTOR) to the courts that DEBTS have not been paid. Once the court accepts the petition the debtor is not permitted to dispose of any property and a RECEIVER may be appointed.",palgrave,0,58.11,10.5,0,8.88,11.1,9.48,14.75,16.04
BANQUE D’AFFAIRE,"In France, a MERCHANT BANK that invests its own CAPITAL in support of CORPORATE FINANCE transactions and engages in SECURITIES UNDERWRITING and TRADING.",palgrave,0,31.21,14.6,0,15.32,16.7,12.33,16.5,16.16
BANQUE DE FRANCE,"The French CENTRAL BANK, founded in 1800, nationalized in 1946, and granted independence in 1993. It is responsible for ensuring monetary stability within France and coordinating, as a mem- ber of the EUROPEAN MONETARY UNION (EMU), broader EMU MONETARY POLICY. The bank is a member of the European System of Central Banks.",palgrave,0,45.46,11.2,14.6,11.42,11.8,11.78,12.66666667,13.84
BANQUE DU CANADA,See BANK OF CANADA.,palgrave,0,92.8,1.3,0,-1.46,-0.7,7.78,1,1.6
BARBELL PORTFOLIO,"An INVESTMENT PORTFOLIO comprised of NOTES and BONDS with short- and long-term MATURITIES but few, or no, SECUR- ITIES with medium-term maturities. A barbell may be constructed to take advantage of a particular view of the YIELD CURVE or to meet specific CASH FLOW requirements. See also LADDERED PORTFOLIO.",palgrave,0,54.93,9.6,13.6,12,11.7,9.92,11.5,13.05
BARGAIN,"In the United Kingdom, any transaction that is executed on theLONDON STOCK EXCHANGE.",palgrave,0,41.36,10.7,0,13.04,11.2,7.93,8.5,14.43
BARRIER,"A price, YIELD, or INDEX level where a  OPTION becomes effective, causing an underlying EUROPEAN OPTION to be created or extinguished.",palgrave,0,24.78,15,0,12.82,14.4,12.2,15.5,17.92
BARRIER CAP,A CAP with an embedded BARRIER OPTION.,palgrave,0,55.91,7.2,0,5.75,3.6,10.75,4.5,14.23
BARRIER FLOOR,A FLOOR with an embedded BARRIER OPTION.,palgrave,0,55.91,7.2,0,7.37,5,10.75,4.5,14.23
BARRIER OPTION,"A COMPLEX DERIVATIVE that creates or extinguishes an underlying EUROPEAN OPTION as the price of the market reference moves through a specified BARRIER. Four versions of the barrier option are commonly used, including the DOWN AND IN OPTION, DOWN AND OUT OPTION, UP AND IN OPTION, and UP AND OUT OPTION. The fact that the under- lying option may be extinguished, or may never be created, means that a bar- rier option is typically less expensive than an otherwise equivalent European option. Also known as KNOCK-IN OPTION, KNOCK-OUT OPTION. See alsoREVERSE BARRIER OPTION.",palgrave,0,44.14,11.7,14.3,11.6,12.1,8.12,13.1,13.89
BARRIER SWAPTION,A PAYER SWAPTION or RECEIVER SWAPTION with an embedded BARRIER OPTION.,palgrave,0,34.93,11.1,0,12.62,9.7,12.79,7.5,15.31
BASE WEIGHTED INDEX,"A method of computing a weighted INDEX that uses base period quantities, computed as:∑ pcq0where pc is the current period price, q0 is the base period quantity, and p0 is the base period price. Also known as LASPEYRES’ INDEX. See also CURRENT WEIGHTED INDEX.",palgrave,0,56.55,9,12.5,9.56,8.9,9.75,9,10.43
BASIS,"The price differential between an underlying ASSET reference and a DERIVATIVE contract used as a HEDGE. The basis arises as a result of differ- ences in SUPPLY/DEMAND, reference INDEXES, or FRICTION COSTS (includ- ing COST OF CARRY, storage, INSURANCE, transportation). See also  RISK, NEGATIVE , POSITIVE .",palgrave,0,30.87,12.7,14.1,13.68,13.3,13.15,11.5,14
BASIS POINT,"1/100th of 1%, commonly used in the measurement ofINTEREST RATES.",palgrave,0,61.33,7.2,0,11.4,9.9,13.61,7,16
BASIS PRICE,"The price used to calculate any capital gains or losses on an INVESTMENT, typically computed as the difference between the purchase and sale prices, plus COMMISSIONS paid.",palgrave,0,35.61,15,0,13.52,17.4,10.82,20.5,18.21
BASIS SWAP,"An INTEREST RATE SWAP involving the exchange of two FLOATING RATES for periods ranging from 1 to 10 years; common reference INDEXES include LIBOR, EURIBOR, COMMERCIAL PAPER rates, BANKER’S ACCEPTANCE RATES, and GOVERNMENT BILL rates. A basis swap may also be constructed by using floating rate indexes in two different CURRENCIES.",palgrave,0,37.13,14.4,0,14.05,17.2,12.02,19.25,18.04
BASIS TRADING,An ARBITRAGE or TRADING strategy using a cash instru- ment and a related FUTURES contract to take advantage of perceived oppor- tunities in the BASIS. See also BASIS RISK.,palgrave,0,48.3,10.1,0,9.91,9,12.52,8.75,12.7
BASKET,"A small PORTFOLIO of ASSETS that can be bought or sold or used as a reference in a DERIVATIVE. Baskets can be created from SECURITIES or other ASSETS from similar or different sectors/countries, depending on the specific HEDGE or INVESTMENT goals being sought. See also  CREDIT SWAP,BASKET OPTION.",palgrave,0,46.78,10.7,14.6,11.77,11,10.68,12,13.9
BASKET AGGREGATE,A total loss limit under an INSURANCE POLICY that covers multiple lines of coverage for different PERILS. See also BASKET DEDUCTIBLE.,palgrave,0,35.44,10.9,0,11.92,9.2,11.68,6.75,11.82
BASKET CREDIT SWAP,A CREDIT DERIVATIVE that involves the exchange of a fixed or floating PREMIUM for a compensatory payment if one or more reference CREDITS in a predefined BASKET DEFAULTS. The swap provides the receiver of premium with a credit PORTFOLIO investment and the payer of premium with a credit HEDGE. See also FIRST-TO-DEFAULT SWAP.,palgrave,0,45.05,11.4,14.1,11.77,11.7,10.17,12.5,13.12
BASKET DEDUCTIBLE,A single DEDUCTIBLE on an INSURANCE POLICY that covers multiple lines of coverage for different PERILS. See also BASKET AGGREGATE.,palgrave,0,35.95,10.7,0,12.85,9.7,11.24,7,14
BASKET OPTION,An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a payoff based on the difference between the price of a BASKET of ASSETS and a predefined STRIKE PRICE. The basket can be comprised of assets from similar or different sectors/markets. See also MULTI-INDEX OPTION.,palgrave,0,48.5,10,11.9,11.94,10.7,9.85,8.5,7.58
BASLE II,"A new regulatory accord, introduced in 2004, which replaces the original BASLE ACCORD for participating BANKS. Basle II is formed atop PILLAR I, PILLAR II, and PILLAR III, which address computation of CREDIT RISK and OPERATIONAL RISK, the control of nonstandard risks, and the dis- closure of RISK MANAGEMENT methods and risk parameters.",palgrave,0,36.12,14.8,0,13.12,17.2,12.7,17.75,17.39
BASLE ACCORD,"The original 1988 agreement between participating indus- trialized countries to adopt RISK-based CAPITAL methods developed by the BANK FOR INTERNATIONAL SETTLEMENTS. See also BASLE II, BASLE MARKET RISK AMENDMENT.",palgrave,0,31.38,12.5,0,18.15,15.9,13.61,10.75,14.08
BASLE MARKET RISK AMENDMENT,A 1996 addendum to the original BASLE ACCORD that permits BANKS to use internally developed VALUE-AT- RISK models in computing required risk CAPITAL. See also BASLE II.,palgrave,0,49.31,9.7,0,11.77,10.1,12.49,8.75,12.81
BAY STREET,"The financial sector of Canada, so named for the loca- tion of various BANKS on Bay Street, Toronto.",palgrave,0,70.13,8,0,7.89,9.3,12.42,11,11.64
BAZAAR,An unregulated market where participants cannot be assured of fairness or transparency.,palgrave,0,17,13.9,0,18.08,14.4,10.81,8,14.8
BBA,See BRITISH BANKERS ASSOCIATION.,palgrave,0,33.58,9.6,0,17.4,14.7,15.68,2,11.6
BBA RATE,See BRITISH BANKERS ASSOCIATION RATE.,palgrave,0,49.48,7.6,0,15.4,12.2,13.36,2.5,10
BEAR,"One who has a negative view on a market or ASSET. See alsoBEAR MARKET, BULL.",palgrave,0,80.78,3.9,0,3.15,1.8,7.17,3.25,5.67
BEAR CLOSING,See SHORT COVERING.,palgrave,0,59.97,5.6,0,5.35,6.8,9.05,1.5,14.53
BEAR HUG,"A TAKEOVER BID received by a TARGET company that DIRECTORS urge SHAREHOLDERS to accept due to its attractive price. Though directors might prefer to reject the bid, the price makes it nearly impossible for them to do so; failure to recommend approval could constitute a breach of DUTY OF LOYALTY and result in legal action being taken.",palgrave,0,42.55,14.4,0,10.97,15.9,10.31,18.75,15.61
BEAR MARKET,"A market state that is characterized by declining prices and low volumes over an extended period of time, often resulting from weak- ened economic conditions (i.e., slow growth or contraction, poor corporate EARNINGS). A bear market is generally believed to be in effect when broad INDEX levels are at least 20% lower than the previous peak. See also BEARISH, BULL MARKET, CORRECTION.",palgrave,0,50.46,11.4,14.6,11.6,13.4,11.03,14.33333333,16.02
BEAR NOTE,A STRUCTURED NOTE that is intended to provide an INVESTOR with CAPITAL GAINS and/or enhanced COUPONS through the declining value of an ASSET or market. The note can be designed to reference any type of financial asset or COMMODITY. See also BULL NOTE.,palgrave,0,56.96,8.9,11.2,9.79,8.6,9.49,8.166666667,10.37
BEAR RAID,"An attempt by a group of INVESTORS to drive down the price of a company’s COMMON STOCK in a coordinated fashion in order to generate a profit. Bear raids conducted through circulation of negative news or unfounded rumors are illegal. UPTICK and ZERO PLUS TICK rules, which only allow SHORT SALES to be initiated on an upward move, are intended to help protect against this type of activity.",palgrave,0,48.43,12.1,14.1,10.16,12.3,10.1,15,15.55
BEAR SLIDE,A rapidly declining market or ASSET price that is the result of a successfully executed BEAR RAID.,palgrave,0,45.76,11.1,0,10.03,9.8,10.05,11.5,13.86
BEAR SPREAD,"An OPTION strategy that attempts to take advantage of a BEARISH trend or BEAR MARKET; spreads can be structured as bearishCALL SPREADS (purchase of a CALL OPTION and sale of a second call, where the short call is struck closer-to-the-money) or bearish PUT SPREADS (purchase of a PUT OPTION and sale of a second put, where the long put is struck closer- to-the-money). Also known as MONEY SPREAD, PRICE SPREAD, VERTICAL SPREAD. See also BULL SPREAD.",palgrave,0,62.72,10.8,10.5,10.1,14.4,7.59,14.33333333,12.23
BEAR SQUEEZE,A rally in a market or ASSET price as a result of buying pressures that are intended to drive BEARS into SHORT COVERING.,palgrave,0,56.59,11.1,0,7.49,10.1,10.27,13.5,12.68
BEAR TRAP,"A situation where a SHORT SELLER, anticipating further declines in the price of a SECURITY, fails to COVER a position in a rapidly rallying market, sustaining losses. See also SHORT SQUEEZE.",palgrave,0,38.82,11.7,0,11.42,10.6,9.5,10.75,13.94
BEARER,(1) One who presents a CHECK or BILL OF EXCHANGE for pay- ment. This is only possible when the bill is made payable to “bearer” rather than a named BENEFICIARY. (2) One holding a  SECURITY.,palgrave,0,70.63,7.8,0,6.61,8,9.02,10.25,9.29
BEARER SECURITY,"A SECURITY that can be transferred or redeemed by the holder, who may or may not be the BENEFICIAL OWNER, and for which no proof of ownership is required. Many securities are issued in bearer form, which eliminates the time and expense associated with re-registration. See alsoREGISTERED SECURITY.",palgrave,0,46.78,10.7,13,11.77,11.1,9.69,11,13.07
BEARISH,"A tendency for markets or ASSETS to assume a negative price trend. See also BEAR MARKET, BULLISH.",palgrave,0,71.31,5.4,0,7.27,5.2,10.56,4.25,8.11
BEATING THE GUN,Any instance where an INVESTOR has an oppor- tunity to purchase or sell a SECURITY before its price has been positively or negatively impacted by market-moving news or information.,palgrave,0,25.12,17,0,13.12,17.8,10.52,21.5,19.88
BEAUTY CONTEST,"A process where UNDERWRITERS competing for an ISSUER’s DEBT or EQUITY NEW ISSUE MANDATE submit proposals and are evaluated on the basis of structure, timing, pricing, distribution, and other relevant factors. The winner of the beauty contest becomes the LEAD MANAGER of the issue.",palgrave,0,32.22,14.2,0,13.17,15,11.9,15,15.16
BED AND BREAKFASTING,"In the United Kingdom, the practice of selling COMMON STOCK of a company on one day and repurchasing it the following day in order to establish a gain or loss for TAX purposes; bed and breakfasting was outlawed starting in 1997. See also WASH SALE.",palgrave,0,57.1,10.9,0,8.77,11.2,8.26,14.25,12.56
BEHAVIORAL FINANCE,"An area of FINANCE that considers the behaviors and psychology of INVESTORS outside traditional economic and financial theory (which often call for “rational” actions, efficient markets, and optimal decision making). Behavioral finance attempts to incorporate cognitive biases and emotions in actions that drive individual and group investment and RISK decisions. Behavioral finance focuses on topics such as response to positive or negative news, reluctance to sell investments and incur losses, group feedback and panic selling, and so forth.",palgrave,0,19.71,17,18.9,17,19.8,12.62,20.66666667,22.19
BEIGE BOOK,"In the United States, a widely followed report on economic conditions issued by the FEDERAL RESERVE BOARD eight times per year.",palgrave,0,50.16,11.5,0,11.72,13.1,11.45,13.5,14.11
BELLS AND WHISTLES,Additional features added to a STRUCTURED NOTE or OVER-THE-COUNTER DERIVATIVE that more precisely match the PAYOFF PROFILE or RISK and RETURN characteristics to the needs of a client. Such additional features may imply a greater COMMISSION or fee charged by the arranging BANK.,palgrave,0,41.19,12.9,0,13.87,15.1,11.31,14.75,14.18
BELLWETHER,See BENCHMARK.,palgrave,0,77.91,2.9,0,4.2,10.2,11.63,0,0.8
BELLY OF THE CURVE,"The intermediate maturities of the YIELD CURVE, generally considered to include the 3 to 7-year sector. See also LONG END, SHORT END.",palgrave,0,51.85,8.8,0,9.72,8,10.64,6.5,11.67
BELLY-UP,"A failed venture, or a company that has filed for VOLUNTARY BANKRUPTCY or INVOLUNTARY BANKRUPTCY.",palgrave,0,39.33,11.5,0,13.45,12.1,10.7,12.5,14
BELOW PAR,Any SECURITY or ASSET that is valued at less than its initial PAR VALUE (often 100). See also ABOVE PAR.,palgrave,0,69.79,6,0,4.73,3.6,8.87,4.5,6
BELOW THE LINE,"All INCOME STATEMENT entries that appear below the NET INCOME entry, focusing on the distribution of any residual profits to RETAINED EARNINGS or DIVIDENDS. See also ABOVE THE LINE.BELLWETHER.",palgrave,0,48.3,10.1,0,14.14,12.5,10.35,8.25,11.32
BENEFICIAL INTEREST,"The right to use a particular ASSET or INVESTMENT, regardless of who retains legal interest. See also BENEFICIAL OWNER, LEGAL OWNER.",palgrave,0,35.44,10.9,0,11.05,8.9,10.17,6.75,13.72
BENEFICIAL OWNER,The actual owner of SECURITIES and the right- ful recipient of the benefits accorded; the beneficial owner is often different from the title holder (generally a financial institution holding the securities on behalf of clients). A beneficial owner need not necessarily be the LEGAL OWNER.,palgrave,0,14.8,16.8,0,13.7,15.3,10.02,17.75,17.89
BENEFICIARY,"The designated recipient of a contractual CASH FLOW or benefit from an INSURANCE contract, GUARANTEE, LETTER OF CREDIT, ANNUITY, TRUST, will, or other transaction. The beneficiary may be listed as primary (first recipient) or secondary (second recipient), and the selection may be revocable (changeable at any time) or irrevocable (changeable only with the express consent of the current beneficiary).",palgrave,0,7.69,19.5,0,15.39,20.7,10.72,22.75,20.61
BENEFITS IN KIND,Noncash compensation payable to employees or DIRECTORS and which may be subject to TAXES.,palgrave,0,48.81,9.9,0,13.22,11.1,11.1,9,14.17
BERMUDA TRANSFORMER,"A Class 3 Bermuda-registered INSURER that is authorized to write and purchase INSURANCE and REINSURANCE and deal in DERIVATIVES. In order to comply with regulatory restrictions, certain BANKS use transformers to convert derivatives into insurance or reinsurance and vice versa.",palgrave,0,25.8,14.6,0,16.65,16.6,11.34,16,17
BERMUDAN OPTION,"An OPTION that can only be EXERCISED on specific dates prior to maturity (e.g., once every month, quarter, or year). Also known as a MID-ATLANTIC OPTION. See also AMERICAN OPTION, EUROPEAN OPTION.",palgrave,0,52.15,8.6,11.2,9.26,8.2,9.6,6.333333333,9.28
BESLOTEN VENNOOTSCHAP (BV),"In the Netherlands, Netherlands Antilles, and Belgium, a LIMITED LIABILITY COMPANY. This form of busi- ness organization is frequently used in the establishment of offshore SPECIAL PURPOSE ENTITIES domiciled in the Antilles.",palgrave,0,29.86,13.1,0,16.3,15,11.83,11.5,13.9
BEST EFFORTS UNDERWRITING,"An agented NEW ISSUE of BONDS, COMMON STOCK, or PREFERRED STOCK, where the SYNDICATE attempts to place with INVESTORS as much of the issue as possible, but is not contrac- tually obligated to fund any shortfall arising from SECURITIES that cannot be placed. See also ALL-OR-NONE UNDERWRITING, BOUGHT DEAL.",palgrave,0,46.61,12.8,0,12.25,15.5,10.33,15.25,13.88
BETA,"A statistical measure of an ASSET’s VOLATILITY in relation to the average volatility of a market PORTFOLIO or reference INDEX, and a cen- tral component of ARBITRAGE PRICING THEORY and the CAPITAL ASSET PRICING MODEL. Beta is the slope of the line between the expected RETURN on an asset and the return on the market portfolio; the intercept of the line, termed ALPHA, is simply the difference between the return on the asset and the beta-adjusted return on the market portfolio. The computation of beta is given as:The intercept, alpha, is simply:A beta greater than 1.0 indicates that the asset is riskier than the market port- folio, but also has the possibility of generating higher returns; a beta less than 1.0 means that it is less risky than the portfolio. INVESTORS and FUND MANAGERS often use beta to determine overall risk levels within their invest- ment portfolios. See also CAPITAL MARKET LINE, SECURITY MARKET LINE.",palgrave,0,31.55,16.6,16.4,11.5,17.7,10.17,23.33333333,17.3
BIAS,"The FEDERAL RESERVE BOARD’s view on future INTEREST RATE movements and possible policy direction at future FEDERAL OPEN MARKETS COMMITTEE meetings; the board may express a bias toward tightening or eas- ing of rates, or maintaining a neutral stance.",palgrave,0,23.43,19.7,0,14.11,23.6,13.26,28.5,21.75
BID,A quoted purchase price for an ASSET from a DEALER or MARKET MAKER. See also OFFER.,palgrave,0,71.82,5.2,0,4.31,2.6,8.97,3,3.2
BID-OFFER SPREAD,The difference between the buying (BID) and selling (OFFER) prices of any ASSET or SECURITY. The spread represents the profit to a DEALER or MARKET MAKER.,palgrave,0,58.28,8.4,0,9.27,8.4,9.75,7,8.28
BID WHACKER,"Any INVESTOR that continuously sells SHARES at, or just below, the BID, rather than between the bid and OFFER, in hopes of tem- porarily forcing more selling pressure.",palgrave,0,51.52,13,0,10.8,16.1,10.66,16,14.06
BIG BANG,Deregulation efforts occurring on the LONDON STOCK EXCHANGE and the TOKYO STOCK EXCHANGE during the 1980s that led to the elimination of fixed COMMISSIONS charged by BROKERS to their cli- ents and allowed greater participation by foreign FINANCIAL INSTITUTIONS in the local institutions. In London it also removed a previous separation of duties between JOBBERS and brokers.,palgrave,0,25.63,16.8,0,15.09,19.1,11.98,19.25,17.72
BIG BOARD,Informal name given to the NEW YORK STOCK EXCHANGE.,palgrave,0,79.26,4.4,0,8.03,5.6,7.59,4.5,8.04
BIG DOG,A large and influential trader whose activities are closely fol- lowed by market watchers.,palgrave,0,48.81,9.9,0,13.22,11.5,12.23,8,11.31
BIG FIGURE,"A reference to the main digit(s) in a FOREIGN EXCHANGE quotation that are generally understood, and thus ignored, by traders. Quotes typically center on the last two digits of the CURRENCY rate. See alsoHANDLE.",palgrave,0,45.76,11.1,0,11.42,11.6,11.91,12,15.04
BIG UGLIES,"COMMON STOCK issued by companies in industrial sectors that are not considered to be “leading edge” or “glamorous” and are thus often shunned by investors, such as steel, chemicals, heavy equipment, and coal.",palgrave,0,46.44,15,0,13.36,20.2,11.49,20.5,18.05
BILATERAL COLLATERAL,"A COLLATERAL agreement between two COUNTERPARTIES that requires either party to post security, depending on the value of the PORTFOLIO of financial CONTRACTS (e.g., DERIVATIVES) and the level of unsecured CREDIT limits that have been established. This type of arrangement is often implemented when two counterparties have approxi- mately equal CREDIT RATINGS. See also UNILATERAL COLLATERAL.",palgrave,0,27.11,14.1,15.5,16.48,16.2,11.05,14,16.05
BILATERAL FACILITY,"A CREDIT facility granted by one BANK to a com- pany, allowing for the development of a more exclusive relationship. See alsoSYNDICATED LOAN.",palgrave,0,34.42,11.3,0,10.54,8.7,11.07,7.75,15.03
BILATERAL NETTING,"A form of NETTING between two COUNTERP- ARTIES, generally negotiated on a private basis between the involved parties, rather than through a CLEARINGHOUSE or EXCHANGE. Bilateral netting may be documented under a standard MASTER AGREEMENT or under a custom- ized document. See also MULTILATERAL NETTING.",palgrave,0,30.87,12.7,11.9,14.38,13,10.7,8.833333333,12.22
BILL,"(1) An invoice requiring payment of a specified sum. (2) A short-term DEBT INSTRUMENT, typically issued by a government-related entity. (3) See  OF EXCHANGE. (2) See also TREASURY .",palgrave,0,17.68,17.8,0,11.38,18.1,12.36,20.5,19.77
BILL FUTURE,"An INTEREST RATE FUTURES contract, bought or sold via an EXCHANGE, which references a short-term GOVERNMENT BILL rate. See alsoBOND FUTURE, DEPOSIT FUTURE.",palgrave,0,59.8,7.8,0,13.55,11.5,9.01,6.25,8.08
BILL OF LADING,"A document used in the transportation of goods that evi- dences the receipt of goods by the shipper from the exporter. The bill must be presented under a BILL OF EXCHANGE, BANKER’S ACCEPTANCE, or DOCUMENTARY CREDIT, or if a CLAIM is being made under an INSURANCE POLICY. See also CLEAN BILL, DIRTY .",palgrave,0,62.38,8.9,11.9,9.1,9.6,9.05,11.16666667,12.3
BILL RATE,See DISCOUNT RATE.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
BILLS PAYABLE,"BILLS OF EXCHANGE held by a company or financial insti- tution that must be paid as they come due, classified on the BALANCE SHEET as a CURRENT LIABILITY. See also BILLS RECEIVABLE.",palgrave,0,55.24,9.5,0,8.87,8.7,8.87,10.5,11.4
BILLS RECEIVABLE,"BILLS OF EXCHANGE held by a company or financial institution that are due to be repaid, classified on the BALANCE SHEET as a CURRENT ASSET. See also BILLS PAYABLE.",palgrave,0,65.22,7.8,0,8.52,7.8,9.26,8.25,9.94
BINARY-BARRIER OPTION,"A hybrid of the BARRIER OPTION and BINARY OPTION that grants the buyer a payoff equal to a fixed cash or ASSET amount if the price of the UNDERLYING market reference breaches the BARRIER. Payoff may be immediate or at expiry of the CONTRACT. Also known as an AMERICAN BINARY OPTION, ONE TOUCH OPTION. See also ASSET-AT-EXPIRY OPTION, ASSET-AT-HIT OPTION, AT-EXPIRY OPTION, AT-HIT OPTION, CASH-AT-HIT OPTION, CASH-AT-EXPIRY OPTION.",palgrave,0,37.3,12.3,13,11.66,12.2,7.96,11.5,9.74
BINARY CREDIT OPTION,See CREDIT DEFAULT OPTION.,palgrave,0,50.5,7.2,0,8.7,7.7,15.68,1,1.6
BINDER,"Temporary INSURANCE that provides an INSURED with coverage until the INSURER issues a permanent policy. Though insurers generally retain binding powers, certain AGENTS may have authority to bind.Call = SΦ (a; n, p’) − Xe−rf t Φ (a; n, p)where S is the stock price, X is the STRIKE PRICE, rf is the RISK-FREE RATE, t is the time to expiry, n is the number of discrete periods until expiry, e is the exponential constant, p is equal to (r’ – d)/(u – d) (where r’ is the risk-free rate for a single period, u is the possible upward move in S, and d is the pos- sible downward move), a is the smallest nonnegative integer greater than ln(X/ Sdn)/ln (u/d), and Φ is the binomial function. Also known as COX, ROSS, and RUBINSTEIN MODEL. See also BLACK-SCHOLES MODEL, LATTICE MODEL.Additional references: Cox, Ross, and Rubinstein (1979); Cox and Rubinstein (1985); Rendleman and Bartter (1979).",palgrave,0,40.86,17.1,16.2,8.77,20.3,11.9,31.5,20.08
BIS,See BANK FOR INTERNATIONAL SETTLEMENTS.,palgrave,0,15.64,12.3,0,17.72,14,10.2,3.5,18
BLACK BOX,"A quantitative, sometimes highly complex, proprietary mathematical model that may be used in certain forms of ARBITRAGE and TRADING. So named as the model lacks transparency to those interested in understanding its functioning.",palgrave,0,37.81,12.1,0,16.01,14.7,11.15,12.25,15.08
BLACK KNIGHT,"The party bidding for control of another company in a HOSTILE TAKEOVER. See also GRAY KNIGHT, WHITE KNIGHT, WHITE SQUIRE.",palgrave,0,69.79,6,0,9.66,7.6,8.87,5,4
BLACK MONDAY,"A reference to the two Mondays in STOCK market history during which major crashes occurred: Monday, October 28, 1929 and Monday, October 19, 1987.",palgrave,0,38.66,13.8,0,11.32,14.7,10.09,16,11.27
BLACK MONEY,"See DIRTY MONEY.andwhere S is the stock price, X is the STRIKE PRICE, t is the time to maturity, rf is the risk-free rate,σ2 is the VARIANCE, and where the N values of N(d1) and N(d2) can be obtained from standard tables of probability functions. See also BINOMIAL MODEL.Additional reference: Black and Scholes (1973).",palgrave,0,52.53,12.6,0,9.64,15.2,12.29,16.5,14.5
BLACK SWAN,An extreme event that is difficult to predict and which is not well modeled by standard quantitative processes based on the NORMAL DISTRIBUTION.,palgrave,0,39.67,13.4,0,13.52,15,12.33,15.5,16.16
BLANK BILL,A BILL OF EXCHANGE where the name of the PAYEE is blank.,palgrave,0,93.14,3.3,0,3.12,2.2,5.55,5,4.8
BLANK CHECK,A CHECK where the name of the PAYEE is blank.,palgrave,0,103.63,1.3,0,1.54,0.5,5.71,4,4
BLANK CHECK PREFERRED,"PREFERRED STOCK that can be issued at the sole discretion of a company’s BOARD OF DIRECTORS in order to resist a HOSTILE TAKEOVER. The issuance of preferred stock dilutes EARNINGS through payment of DIVIDENDS and provides additional cash to mount defensive measures, both of which may be sufficient to deter or combat a hos- tile action.",palgrave,0,51.52,13,0,11.78,16.3,11.23,17.5,16.2
BLANKET LIMIT,The maximum amount of INSURANCE an INSURER is willing or able to UNDERWRITE in a specific geographic location. See alsoBLOCK LIMIT.,palgrave,0,35.44,10.9,0,11.34,8.7,10.92,7.75,17.53
BLANKET POLICY,"An INSURANCE policy that covers various named PERILS under a single limit, without specifying maximum coverage for any of the individual perils.",palgrave,0,6.84,17.8,0,14.62,15.9,12.62,18,21.53
BLENDED FINITE RISK,"An INSURANCE or REINSURANCE agreement with multiple lines of coverage, of which one or more is transferred through a FINITE RISK structure. See also BLENDED RISK.",palgrave,0,66.74,7.2,0,11.7,9.9,10.96,7.5,11.35
BLENDED RISK,A FINITE RISK program that also includes a small amount of RISK TRANSFER. See also BLENDED FINITE RISK.,palgrave,0,79.26,4.4,0,8.03,5.6,9.35,3.5,3.6
BLIND BID,The purchase of a POOL of STOCKS without specific knowledge of which companies are included in the pool. The seller typically provides basic MARKET CAPITALIZATION and volume data so that one or more bidders can submit a bid price reflecting a theoretical DISCOUNT to the assumed current market.,palgrave,0,38.66,13.8,0,12.6,14.8,11.41,15.5,15.43
BLIND BROKERING,"Brokered financial transactions where the BROKER does not give up the name of the underlying customer, even after the trade has been arranged and executed. Though the broker technically acts as AGENT, it de facto assumes the role of PRINCIPAL or DEALER. See also GIVE-UP.",palgrave,0,56.25,9.1,11.2,10.61,9.8,9.64,8.5,11.33
BLIND TRUST,"A form of DISCRETIONARY TRUST that is designed to manage the INVESTMENTS and financial affairs of an individual, without informing the individual as to the nature of the activity. A blind trust is used in any situation where an individual might otherwise have a conflict of interest.",palgrave,0,30.7,14.8,0,11.9,14.1,9.17,17.25,16.21
BLOCK CROSSING,"A CROSSED TRADE in an institutional block of SHARES, either on an EXCHANGE or through a DARK POOL.",palgrave,0,78.59,6.8,0,7.89,8.8,7.16,9,9.42
BLOCK HOLDER,A significant SHAREHOLDER of a company’s COMMON STOCK that has effective veto power over major company management decisions.,palgrave,0,10.91,16.2,0,16.59,15.5,11.55,16,20.53
BLOCK LIMIT,The maximum amount of INSURANCE an INSURER is will- ing or able to UNDERWRITE in a given metropolitan city block. Block lim- its are often used in areas that are considered susceptible to CATASTROPHIC HAZARDS such as earthquakes or hurricanes. See also BLANKET LIMIT.,palgrave,0,48.09,10.2,13,11.01,9.9,9.75,10.33333333,14.06
BLOCK ORDER EXPOSURE SYSTEM,"In the United Kingdom, an electronic mechanism that provides QUOTES for BLOCK ORDERS of STOCK.",palgrave,0,64.71,8,0,12.29,11.2,9.64,8.5,11.33
BLOCK TRADING FACILITY (BTF),A facility offered by certain FUTURES EXCHANGES where two parties agree to CROSS a large transaction away from the exchange in order not to skew prices. Once a transaction is concluded through the facility it is registered with the exchange and its CLEARINGHOUSE.,palgrave,0,49.65,11.7,0,12.24,13.5,8.74,14.25,13.25
BLOCK VOLUME,The sum total of all BLOCK TRADES executed through an EXCHANGE or DARK POOL during a given trading day.,palgrave,0,69.11,8.3,0,8.36,9.1,7.9,10.5,9.71
BLOCKED ACCOUNT,"A BANK ACCOUNT or SECURITIES account that can- not be accessed by the holder, generally for legal reasons.",palgrave,0,44.75,11.5,0,10.15,10.8,8.92,11,11.64
BLOCKED CURRENCY,A CURRENCY that cannot be withdrawn from a country as a result of the imposition of EXCHANGE CONTROLS.,palgrave,0,53.21,10.3,0,9.51,9.8,8.92,11,11.64
BLOWOUT,"The rapid sale of a NEW ISSUE of SECURITIES, leaving the UNDERWRITERS with no residual RISK position after BREAKING SYNDICATE.",palgrave,0,34.26,13.5,0,13.17,13.8,11.73,15,18
BLUE CHIP,"The COMMON STOCK of a high quality company, gener- ally one with a large MARKET CAPITALIZATION, established reputation and market share, and a strong record of growth and EARNINGS.",palgrave,0,33.58,15.8,0,12.72,17.8,9.98,19.5,17.12
BLUE SKY LAWS,"In the United States, state SECURITIES laws intended to pro- tect INVESTORS against FRAUD by BANKS, BROKER/DEALERS, SECURITIES FIRMS, INVESTMENT ADVISORS, or other FIDUCIARIES.",palgrave,0,30.2,15,0,18.05,20.6,14.04,19,17.93
BOARD LOT,"A minimum ORDER size established by an EXCHANGE, i.e., one board lot may be set equal to a given number of shares. See also LOT,ODD LOT, ROUND LOT.",palgrave,0,74.19,6.4,0,5.33,5.8,6.59,7,8.46
BOARD OF DIRECTORS,"The governing body of a public CORPORATION that acts as AGENT of the COMMON STOCK SHAREHOLDERS. In many com- panies the board of directors is responsible for developing strategy, overseeing management, and representing the interests of shareholders through DUTY OF CARE and DUTY OF LOYALTY. The structure of the board depends on whether the national system adheres to the SINGLE BOARD SYSTEM or theDUAL BOARD SYSTEM.",palgrave,0,40.69,13.1,15.9,13.05,14.6,10.23,16,17.28
BOBL,"Abbreviated form of Bundesobligationen, a subcategory of German federal GOVERNMENT BONDS (BUNDS), issued in the 5-year sector with fixed COUPONS.",palgrave,0,17.34,15.8,0,17.52,18.2,14.1,15,16
BOGEY,"A price target on a SECURITY, INDEX, or market that PORTFOLIO MANAGERS and other professional INVESTORS use to gauge per- formance. See also BENCHMARK.",palgrave,0,50.84,9.2,0,11.59,9.7,11.47,6.5,9.8
BOILER ROOM,"A suspicious BROKER/DEALER operation, established with a minimum of CAPITAL, that employs high-pressure sales tactics to sell dubious or risky INVESTMENTS to unsophisticated INVESTORS; some boiler room operations attempt to defraud investors by using illegal sales practices, CHURNING accounts, or embezzling funds. Also known as BUCKET SHOP.",palgrave,0,22.24,16,0,18.45,20,13.2,18.25,17.91
BOILERPLATE,"Standard legal language that is contained in finan- cial documents such as RED HERRINGS, PROSPECTUSES, INDENTURES, GUARANTEES, and CREDIT AGREEMENTS. Boilerplate may include standard terminology related to REPRESENTATIONS, WARRANTIES, terminations, andEVENTS OF DEFAULT.",palgrave,0,12.43,15.6,0,22.5,20.8,14.5,13.25,18.72
BOJ,See BANK OF JAPAN.,palgrave,0,118.18,-2.3,0,-2.91,-1.9,7.78,1,1.6
BOLLINGER BANDS,"A TECHNICAL ANALYSIS tool that plots upper and lower boundaries above a MOVING AVERAGE level (typically 21 days). The bands are designed to capture two STANDARD DEVIATIONS (e.g., approxi- mately 95%) of price movements over the moving average period.",palgrave,0,43.22,12.1,0,12.59,13.9,13.11,13.25,13.95
BOLSA,"STOCK EXCHANGE.+where C is the coupon, r is the DISCOUNT RATE, n is the number of periods, t is the time to maturity, and M is the redemption value of the bond at maturity (generally par). (1) See also SURETY BOND, (2) see also BOND WITH WARRANT, CONVERTIBLE BOND, EUROBOND, FIXED-RATE BOND, FLOATING RATE NOTE, GLOBAL BOND, STRUCTURED NOTE, ZERO COUPON BOND.",palgrave,0,17.01,26.3,0,9.36,32.2,12.82,38,28.03
BOND ANTICIPATION NOTE,A short-term DEBT obligation of a municipal- ity that provides interim funds for a capital improvement project; the NOTE is typically redeemed and replaced with long-term funding once the project is underway.,palgrave,0,30.54,17,0,14.52,20.6,12.13,23,20.3
BOND CROWD,A group of SPECIALISTS that trade in BONDS on the floor of the NEW YORK STOCK EXCHANGE.,palgrave,0,88.06,5.2,0,6.32,6.8,7.27,8.5,9.15
BOND DEALER,"A DEALER who specializes in TRADING BONDS, acting as PRINCIPAL by taking positions and filling ORDERS through the commitment of RISK CAPITAL. Bond dealers may specialize in GOVERNMENT BONDS or other types of bonds, such as corporate BONDS, ASSET-BACKED SECURITIES, and so forth.",palgrave,0,41.19,12.9,0,13.63,15.2,11.68,15.75,15.11
BOND EQUIVALENT YIELD,"A measure that converts the YIELD of a FIXED INCOME discount instrument into terms of a standard COUPON instrument, permitting proper comparison of INVESTMENT alternatives. It is generally computed via:where Face is FACE VALUE, P is purchase price, nI is the number of days in the year following issuance, and nMAT is the number of days until MATURITY. Also known as EQUIVALENT BOND YIELD. See also DISCOUNT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.",palgrave,0,51.38,11,13.4,11.89,12.9,9.62,13.125,12.48
BOND FLOOR,See BOND VALUE.,palgrave,0,93.81,0.9,0,-2.38,0.5,9.05,0.5,1.2
BOND FUTURE,"An INTEREST RATE FUTURES CONTRACT, bought or sold via an EXCHANGE, which references a medium-term or long-term GOVERNMENT BOND rate. See also DEPOSIT FUTURE.",palgrave,0,67.76,6.8,0,12.75,10.9,9.5,6.5,8.13
BOND ORDINANCE,See BOND RESOLUTION.,palgrave,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
BOND PREMIUM,See INVESTMENT PREMIUM.,palgrave,0,9.21,12.7,0,13.12,13,14.31,2.5,27.87
BOND RESOLUTION,"In the United States, a law that authorizes the issuance of BONDS or other FIXED INCOME SECURITIES, typically applicable to muni- cipal or other governmental ISSUERS. Also known as BOND ORDINANCE.",palgrave,0,38.82,11.7,0,12.53,11.5,11.03,10.75,13.94
BOND SWAP,"The sale of a BOND prior to its final MATURITY or REDEMP- TION, and the purchase of another bond using the sale proceeds. A bond swap may involve an exchange of MATURITIES, COUPONS, taxable status, price,or REFERENCE CREDITS, and is a common PORTFOLIO management technique.",palgrave,0,48.64,12.1,0,11.38,13.8,12.12,14.25,13.44
BOND SWAP SPREAD,The incremental BASIS POINT PREMIUM a company pays over the interbank SWAP SPREAD. The spread can be imputed by subtract- ing the basis point YIELD on one of its outstanding BONDS from the interbank swap rate of the same maturity.,palgrave,0,59.64,9.9,0,9.98,11.1,9.76,14,14
BOND VALUE,"The lowest TRADING value of a CONVERTIBLE BOND, which occurs when the embedded EQUITY OPTION is well OUT-OF-THE-MONEY and the bond is paying its normal COUPON. When a convertible is trading at bond value, its price is generally identical (or very similar) to a standard bond with the same coupon and maturity. Also known as BOND FLOOR.",palgrave,0,60.65,9.5,13,10.1,11.1,9.01,12.5,12.51
BOND VIGILANTES,INSTITUTIONAL INVESTORS that actively sell holdings of GOVERNMENT BONDS when the specter of INFLATION begins to rise or when FISCAL POLICY and MONETARY POLICY indicate an over- reliance on deficit spending. Their actions can cause YIELDS on medium- and long-term bonds to rise sharply and rapidly.,palgrave,0,48.13,12.3,0,14.16,15.9,11.3,15.5,14.42
BONUS ISSUE,See STOCK DIVIDEND.,palgrave,0,59.97,5.6,0,5.35,6.8,9.05,1.5,14.53
BONUS SHARE,See STOCK DIVIDEND.,palgrave,0,59.97,5.6,0,5.35,6.8,9.05,1.5,14.53
BOOK,(1) To record the details of a financial transaction in the com- pany’s ledgers. (2) The total positions held by a DEALER in a particular ASSET class.,palgrave,0,52.53,12.6,0,8.13,13.7,12.58,17.5,16.73
BOOK-BUILDING,"The process of gathering firm ORDERS or INDICATIONS OF INTEREST for a NEW ISSUE of SECURITIES. UNDERWRITERS involved in the new issue carry out book-building, and the results are used to determine final deal pricing and order allocations.",palgrave,0,35.27,13.1,0,12.76,13,10.81,13.5,14.97
BOOK ENTRY SECURITY,"A DEBT or EQUITY SECURITY that is issued, traded, and transferred solely through electronic means, without SCRIP or physical certificates. Securities are increasingly issued in dematerialized form. See also DEFINITIVE SECURITY.",palgrave,0,18.72,13.2,13.6,16.97,13.6,11.79,7.5,15.73
BOOK VALUE,"(1) The original purchase price of an ASSET. (2) The current ACCOUNTING value of an asset, typically computed as MARKET VALUE or original purchase price less accumulated DEPRECIATION. (3) An estimate of acompany’s value, computed as total ASSETS less INTANGIBLES less LIABILITIES.(2) See also NET BOOK VALUE.",palgrave,0,-10.08,26.3,0,14.23,28.3,12.01,35.5,27.31
BOOKRUNNER,See LEAD MANAGER.,palgrave,0,59.97,5.6,0,1.52,3.6,0.15,1.5,1.2
BOOTSTRAP,"In ACQUISITIONS, a cash offer made for a controlling interest in a company.",palgrave,0,41.36,10.7,0,9.03,7.9,7.93,10.5,14.43
BOOTSTRAPPING,See STRIPPING THE YIELD CURVE.,palgrave,0,100.24,0.5,0,7.28,5.6,10.2,1.5,2
BORDEREAU,A report illustrating a history of losses and PREMIUMS on a specific RISK. The CEDING INSURER provides the report to the REINSURER so that an appropriate premium rate can be determined.,palgrave,0,38.82,11.7,0,11.08,9.9,10.52,12.25,16.52
BORROWED RESERVES,"In the United States, borrowing by BANKS from the FEDERAL RESERVE BANK on a short-term basis to bolster their RESERVES.",palgrave,0,59.64,9.9,0,10.85,12.1,10.16,12,12
BORROWER,"An individual or institution that obtains funds from a LENDER, either informally or formally, and with or without COLLATERAL. In exchange for use of funds, the borrower must typically pay recompense in the form of periodic INTEREST payments. See also DEBTOR.",palgrave,0,40.65,11,13.6,12.11,10.5,10.09,10.16666667,15.24
BORSA,STOCK EXCHANGE.,palgrave,0,77.91,2.9,0,7.1,12.5,0.1,0,0.8
BOSTON OPTION,(1) Any OVER-THE-COUNTER OPTION where PREMIUM is paid at MATURITY rather than trade date. (2) See BREAK FORWARD.,palgrave,0,61.67,9.1,0,10.44,12.4,8.92,12,11.64
BOTTOM FISHING,"An INVESTMENT strategy based on purchasing SECURITIES that are perceived to be undervalued, out of favor, or CHEAP compared to other alternatives. CONTRARIAN INVESTORS are often bottom fishers.",palgrave,0,31.89,12.3,0,15.71,13.5,11.1,10.5,15.6
BOTTOM LINE,"NET INCOME earned by a company that can be dis- tributed as DIVIDENDS and/or added to RETAINED EARNINGS.NONE UNDERWRITING, BEST EFFORTS UNDERWRITING.",palgrave,0,32.22,14.2,0,15.14,17,11.19,16,14.25
BOUNDED RATIONALITY,"A theory of BEHAVIORAL FINANCE indicating that, in the absence of perfect information and in an environment where deci- sions must be taken quickly, an individual or company will attempt to achieve a satisfactory result rather than an optimal one.",palgrave,0,13.96,21.3,0,12.89,23.1,11.54,29,23
BOURSE,"A STOCK EXCHANGE, used generically for European exchanges.",palgrave,0,37.98,10,0,15.91,12.6,9.95,5,13.2
BOUTIQUE,"An INVESTMENT BANK that specializes in a par- ticular area of business, such as CORPORATE FINANCE, LEVERAGED BUYOUTS, or MERGERS and ACQUISITIONS. Boutiques do not offerthe full range of investment banking services (e.g., TRADING, ASSET MANAGEMENT, NEW ISSUE UNDERWRITING), but may cooperate with full- service firms in order to offer clients appropriate access.",palgrave,0,27.66,16,0,15.32,19.4,13.29,18.75,18.15
BOX SPREAD,"An OPTION strategy where the UNDERLYING is purchased synthetically at one price (i.e., LONG CALL, SHORT PUT) and sold at a different price (i.e., short call, long put) to generate an ARBITRAGE profit. A box spread that is created with EUROPEAN OPTIONS is equivalent to a ZERO COUPON BOND.PAR BOND.",palgrave,0,54.56,11.9,0,10.04,14.4,10.25,17,16.4
BREAK,A sharp and sudden decline in the price of an ASSET or market.,palgrave,0,83.66,4.8,0,3.7,3.2,6.71,5.5,5.2
BREAK FORWARD,A FORWARD CONTRACT with a feature giving one party the ability to cancel the transaction at a future time in order to com- plete the underlying deal in the SPOT MARKET; if the party chooses to break the contract it pays the other party a cancellation fee. Also known as BOSTON OPTION.,palgrave,0,53.55,12.3,0,8.54,12.7,9.48,15,13.48
BREAK ISSUE,"An INITIAL PUBLIC OFFERING that trades below its issue price in the months following launch, as a result of poor demand, initial mis- pricing, or financial weakness of the issuing company.",palgrave,0,40.01,15.4,0,11.96,18.1,11.29,20.5,16.27
BREAKING THE BUCK,A situation where the NET ASSET VALUE of a MONEY MARKET FUND falls below $1 per share. This occurs when INTEREST RATES fall to very low levels and the PORTFOLIO does not generate sufficient INTEREST INCOME to cover expenses. It may also occur when a fund uses LEVERAGE and suffers capital losses on its portfolio ASSETS.,palgrave,0,52.49,10.6,13,9.75,10.2,10.2,12.33333333,11.77
BREAKOUT,"A TECHNICAL ANALYSIS chart pattern reflecting movement in a security or index above a RESISTANCE LEVEL or below a SUPPORT LEVEL, which may portend future moves in the direction of the breakout.",palgrave,0,30.54,17,0,12.31,18.4,11.64,22,19.05
BREAKPOINT,"An incremental ORDER size for MUTUAL FUND shares that causes sales COMMISSIONS to decline; the more breakpoints in an order, the lower the marginal rate of commissions.",palgrave,0,44.07,13.8,0,12.89,16.8,11.41,18.5,16.73
BREAKUP FEE,A fee paid by an acquiring company to a TARGET company if the ACQUISITION fails to be consummated. See also TERMINATION FEE.,palgrave,0,43.39,9.9,0,8.16,6.1,9.21,7.5,11.67
BRETTON WOODS CONFERENCE,"A forum held in 1944, which established the framework of fixed FOREIGN EXCHANGE RATES under the BRETTON WOODS SYSTEM and led to the creation of the INTERNATIONAL MONETARY FUND and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.",palgrave,0,25.46,18.9,0,14.69,22.8,11.87,24.5,20.21
BRETTON WOODS SYSTEM,"The system of fixed FOREIGN EXCHANGE RATES that existed until 1971, which required participating nations to inter- vene when necessary in order to preserve the value of their CURRENCIES within particular bands. Following the collapse of the system in 1971, the financial markets turned toward a free market process of floating exchange rates.",palgrave,0,36.12,14.8,0,14.22,17.6,11.8,16.75,15.13
BRIC,"The acronym given to 4 powerful emerging nations, Brazil, Russia, India, and China.",palgrave,0,49.82,9.5,0,11.3,10.8,12.78,6.5,5.2
BRICKS AND MORTAR,"The physical branches and infrastructure of a BANK or SECURITIES FIRM, distinct from the electronic banking platforms many institutions also operate.",palgrave,0,16.32,16.2,0,17.81,18,12.95,16.5,19.83
BRIDGE LOAN,"A temporary LOAN granted by a BANK to a corporate or sov- ereign borrower, generally intended to be replaced by longer-term or perman- ent financing from the CAPITAL MARKETS. Bridge loans may be secured or unsecured and generally have maturities of less than one year. Also known asSWING LOAN.",palgrave,0,46.47,10.8,14.1,10.61,10.3,10.57,11.83333333,13.87
BRIDGING LOAN,A short-term BRIDGE LOAN that is used to provide funds for the purchase of an ASSET and before the sale of a second asset.,palgrave,0,72.5,9.1,0,6.45,10,7.46,12,9.6
BRITISH BANKERS ASSOCIATION (BBA),A trade organization founded in 1919 to represent the interest of member BANKS in the United Kingdom. The BBA is also responsible for publishing the BBA RATE and LONDON INTERBANK OFFERED RATE (LIBOR).,palgrave,0,46.27,10.9,0,11.25,10.8,10.68,11.25,13.87
BROAD EVIDENCE RULE,A rule allowing a wide scope of information to be used in determining the ACTUAL CASH VALUE of property that has been damaged or destroyed and which is subject to a CLAIM under an INSURANCE contract. Any evidence that is regarded as a relevant reflection of value is admissible.,palgrave,0,38.15,14,0,9.99,12.9,10.01,17.75,18.78
BROAD MONEY,"The broad definition of MONEY SUPPLY, often measured through M3. See also NARROW MONEY.",palgrave,0,55.91,7.2,0,9.46,7,8.5,3,5.66
BROKEN DATE,"An off-the-run COUPON payment date on a FIXED INCOME SECURITY, e.g., 28 or 58 days, rather than the conventional 30 or 60 days. The same concept can apply in the DERIVATIVE markets, where the broken date is taken to be any date that does not conform to standard quoting periods, which generally involve complete months.",palgrave,0,52.02,12.8,0,9.81,15,11.6,16.25,14.64
BROKER/DEALER,"A SECURITIES FIRM involved in INVESTMENT advice, BROKERAGE, and EXECUTION activities on behalf of clients, and TRADING activities for its own account. Some broker/dealers may also act as MARKET MAKERS or PRIMARY DEALERS.",palgrave,0,29.35,13.3,0,14.44,13.7,11.63,12.25,13.87
BROKER LOAN,"A short-term secured demand LOAN granted by a BANK to a SECURITIES FIRM or BROKER/DEALER that is used to fund client SECURITIES positions. The loan is backed by the underlying securities and is usually call- able by the lender with 24 hours’ notice. Also know as BROKER CALL LOAN. See also  RATE, MONEY AT CALL.",palgrave,0,65.93,7.5,10.7,8.29,7.3,8.91,7.625,8.43
BROKER LOAN RATE,The INTEREST RATE charged by a BANK on a short- term BROKER LOAN.,palgrave,0,92.12,3.6,0,4.57,4.3,7.93,6.5,8.28
BROKERAGE,(1) An institution within the financial sector that specializes in providing BROKER services to its clients. (2) See COMMISSION.,palgrave,0,35.27,13.1,0,14.45,15.3,14.55,14.5,18.13
BROKERED DEPOSIT,See BROKERED CERTIFICATE OF DEPOSIT.,palgrave,0,49.48,7.6,0,14.24,11.2,10.2,2.5,10
BROWNIAN MOTION,"A continuous, normally distributed STOCHASTIC (random) PROCESS with MEAN zero and time increments that are serially independent, originally developed by Brown (1827) to describe the random nature of particle movement in gas or liquid. The original biological applica- tions were extended in a mathematical framework by Wiener (1918) and have since been used as a way of characterizing the random movement of ASSET prices. Also known as GEOMETRIC .",palgrave,0,31.51,14.5,16.7,14.34,16.1,11.73,17.16666667,19.08
BTF,See BLOCK TRADING FACILITY.,palgrave,0,33.58,9.6,0,10.15,8.8,11.73,2,11.6
BUBA,See BUNDESBANK.,palgrave,0,35.61,8.8,0,7.1,12.5,11.63,1,20.8
BUBBLE,"The speculative phase of a market cycle in which ASSET prices are BID up to unsustainably high levels through large amounts of LEVERAGED and unleveraged purchases by INVESTORS. The bubble may be burst through regulatory intervention (e.g., a tightening of INTEREST RATES) or general investor discomfort leading to withdrawal. See also FINANCIAL CRISIS.",palgrave,0,36.59,12.6,14.6,14.38,14.1,11.96,12.83333333,15.38
BUCK,"Common reference for million. See also TON, YARD.",palgrave,0,67.42,4.9,0,5.1,5.3,7.78,1.5,6.6
BUCKET SHOP,See BOILER ROOM.,palgrave,0,93.81,0.9,0,-0.46,2.1,0.15,0.5,1.2
BUDGET,"A financial statement or report regarding the REVENUES, EXPENSES, and CASH FLOWS expected to occur during a future fiscal period, often used as a performance measurement tool through analysis of deviations.The budget may contain varying degrees of detail, focusing on INVENTORIES, CASH FLOWS, CAPITAL EXPENDITURES, and financings.",palgrave,0,-10.08,26.3,0,17.54,30.5,14.03,37.5,29.86
BUDGET DEFICIT,"A state within a BUDGET where EXPENSES exceed REVENUES. Reducing or eliminating the deficit may require reduction in expenses and/or an increase in revenues, along with an increase in financing. See also BUDGET SURPLUS, DEFICIT FINANCING.",palgrave,0,42.38,10.3,11.9,13.56,11.1,9.93,7.333333333,10.36
BUDGET SURPLUS,A state within a BUDGET where REVENUES exceed EXPENSES. The surplus may be used to offset future deficits. See also BUDGET DEFICIT.,palgrave,0,72.53,5,6.4,8.24,5.8,11.18,3,4.74
BUFFER LAYER,A layer of INSURANCE coverage that exists between the PRIMARY LAYER and the ATTACHMENT point of the EXCESS LAYER.,palgrave,0,43.73,11.9,0,11.43,11.6,10.4,13.5,16.02
BULGE BRACKET,"The small group of SECURITIES FIRMS, INVESTMENT BANKS, and BANKS that control the largest share of glo- bal CORPORATE FINANCE and securities UNDERWRITING business. Bulge bracket firms are often sought out by institutional clients as a result of their ability to arrange sophisticated transactions and distribute SECURITIES.",palgrave,0,30.7,14.8,0,16.6,18.1,11.86,17.25,17.06
BULK RISK,"Large concentrations of CREDIT RISK held by a BANK or other financial institution, typically subject to LEGAL LENDING LIMITS in order to minimize the likelihood of a lender encountering difficulties should a large borrower DEFAULT. Also known as LARGE EXPOSURES.",palgrave,0,25.8,14.6,0,14.62,14.9,11.34,15,18
BULL,"One who has a positive view on a market or ASSET. See alsoBEAR, BULL MARKET, BULLISH.",palgrave,0,80.28,4.1,0,4.31,3.2,7.98,3.5,5.7
BULL MARKET,"A general market phase characterized by low INFLATION and INTEREST RATES, strong consumer confidence, growing corporate EARN- INGS, and rising COMMON STOCK prices and market INDEXES. See alsoBEAR MARKET.",palgrave,0,39.84,11.3,0,15.94,14.2,11.98,10.75,14.08
BULL NOTE,A STRUCTURED NOTE that is intended to provide an INVESTOR with CAPITAL GAINS and/or enhanced COUPONS through the increasing value of an ASSET or market. The note can be designed to reference any type of financial asset or COMMODITY. See also BEAR NOTE.,palgrave,0,56.96,8.9,11.2,9.91,8.7,9.49,8.166666667,10.37
BULL SPREAD,"An OPTION strategy that attempts to take advantage of BULL MARKETS. The SPREAD can be structured as a BULLISH CALL SPREAD (purchase of a CALL and sale of a second call, where the long call is struck closer-to-the-money) or a bullish PUT SPREAD (purchase of a PUT and sale ofa second put, where the short put is struck closer-to-the-money). Also known as MONEY SPREAD, PRICE SPREAD, VERTICAL SPREAD. See also BEAR SPREAD.",palgrave,0,78.59,6.8,9.5,9.1,10.4,7.16,10.25,8.87
BULLET,See  LOAN.,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0,0.8
BULLET LOAN,"A LOAN with a PRINCIPAL balance that is repaid by the BORROWER in a single installment at MATURITY, rather than standard AMORTIZATION of payments over the life. Also known as BULLET. See alsoBALLOON LOAN.",palgrave,0,60.01,7.7,11.2,10.01,7.9,8.84,6.666666667,11.58
BULLISH,"A tendency for markets or ASSETS to assume a positive price trend. See also BEARISH, BULL MARKET.",palgrave,0,62.85,6.6,0,7.27,5.2,10.56,4.25,8.11
BUNCHING,"The process of grouping together many small retail trade ORDERS (i.e., ODD LOTS) and combining them into a single large order. Bunching often permits better EXECUTION levels and reduces the admin- istrative expenses associated with processing each small trade individually. BROKERS can only bunch orders if all INVESTORS agree.",palgrave,0,38.01,12,12.5,14.38,13.5,10.89,10.83333333,12.23
BUND,"Abbreviated form of Bundesanleihen, the broad category of German federal GOVERNMENT BONDS. Bunds, denominated in EUROS, feature maturities of 4 to 30 years (with 10-year securities constituting the BENCHMARK) and pay INTEREST COUPONS on an annual basis. They are issued through the federal bond SYNDICATE, via traditional UNDERWRITING, and through DUTCH AUCTION.[GER] The German financial REGULATOR, responsible for supervising BANKS, INSURANCE COMPANIES, PENSION FUNDS, and other financial services institutions operating in the country. BAFIN ensures that institutions under its purview have a sufficiency of resources and controls to operate prudently, and enforces its role through market supervision and investor protection.BUBA, DEUTSCHE BUNDESBANK.",palgrave,0,11.75,18,19,18.98,21.5,14.03,20,20.79
BUNDLE,"A strip of consecutive, quarterly EURODOLLAR FUTURES that can be traded as a package in blocks of 1, 2, or more years. See alsoFORWARD BUNDLE.",palgrave,0,58.79,8.2,0,8.05,7.1,10.57,7.25,11.4
BUNNY BOND,"A BOND with an embedded OPTION giving the INVESTOR the right to receive COUPONS or additional bonds (i.e., as aPAYMENT-IN-KIND SECURITY).",palgrave,0,50.16,11.5,0,12.82,15.3,12.2,13.5,14.11
BURN RATE,"The speed at which a company, especially a new venture, utilizes its available cash to fund ongoing operations and expansion plans. The burn rate is an important measure for suppliers of VENTURE CAPITAL, as it indicates when (if) further rounds of financing will be required to expand the operation.",palgrave,0,38.15,14,0,11.9,14.9,10.01,17.75,16.33
BURNING COST RATIO,"In INSURANCE, a measure indicating the degree to which losses exceed the PREMIUMS being charged; the burning cost ratio is generally computed as:where Lossexc is excess loss and Pr is premium.In general, the larger the ratio, the greater the shortfall between premiums and losses.",palgrave,0,9.9,22.8,0,13.94,26,12.28,30,23.05
BURNING LAYER,See PRIMARY LAYER.,palgrave,0,34.59,9.2,0,3.43,5.2,14.31,1.5,14.53
BUSINESS CYCLE,"The series of phases that characterize an ECONOMY, including growth, downturn, RECESSION, and recovery. The business cycle impacts, and is impacted by, INTEREST RATES, INFLATION RATES, and employment, and may be of varying length and magnitude.",palgrave,0,36.28,12.7,0,14.32,14.9,12.42,14,18.31
BUSINESS JUDGMENT RULE,"A legal rule that permits DIRECTORS and executives of a company to make all relevant corporate business decisions, as long as they are made on an informed basis (i.e., with a DUTY OF CARE). The intent is to prevent the courts from adjudicating on whether or not a business decision is correct; they are limiting to judging only whether it has been made on the basis of appropriate facts and information.",palgrave,0,35.44,17.1,0,9.76,18.4,10.07,23.25,19.83
BUSINESS LIABILITY INSURANCE,"INSURANCE coverage for LIABILITIES arising from normal commercial activities, including direct and indirect liabil- ity, and medical payments.",palgrave,0,-14.48,19.8,0,21.4,20.3,15.93,18,27.2
BUST-UP TAKEOVER,A TAKEOVER or LEVERAGED BUYOUT where some of the TARGET company’s ASSETS are sold to third parties in order to repay a certain portion of the DEBT assumed in acquiring the company.,palgrave,0,47.46,14.6,0,10.17,16.5,10.65,19,15.3
BUSTED CONVERTIBLE,A CONVERTIBLE BOND that stands little or no chance of being converted into the ISSUER’s COMMON STOCK because the STOCK price is well below the bond’s CONVERSION PRICE. A busted con- vertible trades on BOND VALUE alone and remains a FIXED INCOME security until it is redeemed.Payoff profile of long butterflyPayoff profile of short butterflySee also CONDOR SPREAD.,palgrave,0,42.04,14.6,0,13.53,17.9,10.79,18,15.74
BUY AND HOLD,"An INVESTMENT strategy, often based on FUNDAMENTAL ANALYSIS, where an INVESTOR commits CAPITAL to an investment with a view toward holding it for the long term.",palgrave,0,36.63,14.6,0,12.48,16,9.78,19,16.55
BUY-BACK,(1) A process where a company repurchases some portion of out- standing SHARES from INVESTORS under a repurchase program. (2) A process where a government repurchases outstanding BONDS from the marketplace in order to retire them.,palgrave,0,34.94,17.3,0,13.59,22.1,11.56,25,18.84
BUY-BACK DEDUCTIBLE,"A DEDUCTIBLE on an INSURANCE POLICY that is eliminated through payment of an incremental PREMIUM, thus providing the INSURED with FIRST DOLLAR COVERAGE in the event of a loss.MANAGEMENT BUY-IN.",palgrave,0,24.11,17.4,0,14.23,19.3,11.44,23,22.67
BUY MINUS,An ORDER to purchase a block of SECURITIES at a price that is lower than the current market price.,palgrave,0,69.11,8.3,0,6.85,7.9,7.9,10.5,9.71
BUY-SIDE,"INVESTMENT firms, such as a HEDGE FUNDS, MUTUAL FUNDS, or PENSION FUNDS, that act as clients of the FINANCIAL INSTITUTION sector, paying fees and COMMISSIONS (i.e., “buying”) in exchange for a range of services that can include investment advice, NEW ISSUES and other product offerings, and TRADE EXECUTION. See also SELL-SIDE.",palgrave,0,45.59,13.2,0,12.83,16.9,12.02,16.75,15.69
BUY THE BOOK,"An ORDER given by a client to a BROKER to purchase all of a SPECIALIST’s or MARKET MAKER’s inventory of a SECURITY, as well as the inventory of other BROKER/DEALERS, at the current market price.",palgrave,0,35.95,16.9,0,9.18,17.6,9.43,22.5,17.43
BUY-WRITE,See COVERED OPTION.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
BUYERS’ CREDIT,A LOAN that is granted by a BANK or other financial insti- tution to a buyer of exported goods.,palgrave,0,60.65,9.5,0,5.63,7.1,9.57,11.5,11.81
BUYERS’ MARKET,"A market condition where SUPPLY exceeds DEMAND, causing prices to fall and giving potential buyers a greater opportunity to achieve a favorable BID price. See also SELLERS’ MARKET.",palgrave,0,40.35,11.1,0,13.22,11.3,11.66,8.5,12.74
BUYING FORWARD,The process of entering into a FORWARD contract or a FUTURES contract to achieve a future delivery of an ASSET or cash and/or to lock in a particular forward price.,palgrave,0,49.49,13.8,0,9.01,14.8,9.86,18,16
BUYING THE DIPS,"Purchasing STOCKS, BONDS, COMMODITIES, or other financial ASSETS after prices have fallen.",palgrave,0,42.38,10.3,0,18.08,15.6,14.76,8,14.8
BV,See BESLOTEN VENNOOTSCHAP.,palgrave,0,93.81,0.9,0,18.92,17.8,14.31,0.5,1.2
CA,See CHARTERED ACCOUNTANT.,palgrave,0,34.59,9.2,0,16.95,16.2,14.31,1.5,14.53
CABLE,The sterling/US dollar FOREIGN EXCHANGE RATE.,palgrave,0,48.47,8,0,15.88,13,9.2,3,2.4
CAD III,See CAPITAL ADEQUACY DIRECTIVE III.,palgrave,0,-1.29,14.7,0,13.08,10.3,13.36,4.5,18
CAFETERIA PLAN,A plan offered by companies to their employees that allows them to select from a variety of INSURANCE and retirement plans as a form of noncash benefit.,palgrave,0,44.07,13.8,0,9.87,14.1,10.82,19.5,19.69
CAGE,A physically secure location in a FINANCIAL INSTITUTION where physical-form SECURITIES are held in safekeeping. Also known asACTIVE BOX.,palgrave,0,11.07,14.1,0,16.03,12.6,11.59,7.75,20.64
CALAMITY CALL,A provision in a COLLATERALIZED MORTGAGE OBLIGATION requiring a portion of the issue to be retired if PREPAYMENTS rise to a level where insufficient CASH FLOW exists to meet payments of PRINCIPAL and COUPON INTEREST.,palgrave,0,27.49,18.1,0,13.3,20.6,12.14,25.5,23.14
CALENDAR,See PIPELINE.,palgrave,0,77.91,2.9,0,1.3,7.8,11.63,0,0.8
CALL,See  OPTION.,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0,0.8
CALL MONEY,"Funds placed in an INTEREST-bearing DEPOSIT account that can be withdrawn by the DEPOSITOR with one day’s notice. In most instances call money refers to deposits placed by INSTITUTIONAL INVESTORS, which tend to be withdrawn more rapidly than those placed by retail customers. See also HOT MONEY.",palgrave,0,64,8.2,8.8,12.53,11.4,9.45,7.833333333,8.83
CALL ON A CALL,"A COMPOUND OPTION that grants the buyer the right to purchase an underlying CALL OPTION from the seller of the compound. The option is generally purchased when the need for the underlying option is still uncertain. See also CALL ON A PUT, PUT ON A CALL, PUT ON A PUT.",palgrave,0,71.44,7.4,9.7,7.13,7.4,7.62,8.666666667,9.08
CALL ON A PUT,"A COMPOUND OPTION that grants the buyer the right to purchase an underlying PUT OPTION from the seller of the compound. The option is generally purchased when the need for the underlying option is still uncertain. See also CALL ON A CALL, PUT ON A CALL, PUT ON A PUT.",palgrave,0,71.44,7.4,9.7,7.13,7.4,7.62,8.666666667,9.08
CALL ON THE MAXIMUM,"An OVER-THE-COUNTER COMPLEX OPTIONthat grants the buyer a payoff based on the difference between a predefinedSTRIKE PRICE and the highest price achieved by the UNDERLYING referenceASSET over the life of the transaction. See also LOOKBACK OPTION, OPTIONON THE MAXIMUM/MINIMUM, PUT ON THE MINIMUM.OPTION that grants the buyer a payoff based on the difference between a pre-defined STRIKE PRICE and the worst performing ASSET in a PORTFOLIO. Seealso CALL ON THE BEST OF N-ASSETS, MULTI-INDEX OPTION, OPTION ONTHE BEST/WORST OF N-ASSETS, PUT ON THE BEST OF N-ASSETS, PUT ONTHE WORST OF N-ASSETS.",palgrave,0,32.26,16.3,15.5,13.99,19.7,10.17,19.83333333,16.08
CALL OPTION,"A DERIVATIVE contract that gives the buyer the right, butnot the obligation, to buy an UNDERLYING ASSET from the seller at a setSTRIKE PRICE at, or before, EXPIRY. In exchange, the buyer pays the seller aPREMIUM. The payoff to the buyer is given as:max(0, asset price – strike price)Calls, which can be written on a broad range of financial and COMMODITYreferences, are available as EXCHANGE-traded and OVER-THE-COUNTER con-tracts, and can be structured as AMERICAN OPTIONS, BERMUDAN OPTIONS,or EUROPEAN OPTIONS.Long call payoff profileShort call payoff profileSee also PUT OPTION.",palgrave,0,33.28,15.9,14.6,14.4,19.7,10.83,18.66666667,14.9
CALL PREMIUM,(1) The differential between the redemption price and the PAR VALUE of a CALLABLE BOND. (2) The PREMIUM paid for a CALL OPTION.,palgrave,0,65.05,9.9,0,7.96,11.6,10.96,14.5,14.42
CALL PRICE,The price paid to INVESTORS in a CALLABLE BOND if the OPTION to redeem is EXERCISED by the ISSUER. Also known as REDEMPTION PRICE.,palgrave,0,76.22,5.6,0,7.24,5.6,9.5,6,8.13
CALL PROVISION,A clause contained in the INDENTURE of a BOND that specifies the terms under which the ISSUER may CALL the outstanding SECUR- ITIES. The provision indicates the CALL PRICE and any relevant LOCKOUT PERIOD. See also PUT PROVISION.,palgrave,0,58.58,8.2,12.5,10.37,8.6,10.5,8,12.45
CALL RISK,"The RISK that the ISSUER will EXERCISE an embedded CALL and redeem a CALLABLE BOND when INTEREST RATES decline, exposing INVESTORS to reinvestment of CAPITAL at a lower rate.",palgrave,0,42.04,14.6,0,12.14,16.8,12.7,20.5,18.5
CALL SWAPTION,See RECEIVER SWAPTION.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
CALLABLE SWAP,"An OVER-THE-COUNTER SWAP structure that gives the institution paying FIXED RATES the OPTION to cancel the transaction at a future date. See also CANCELLABLE SWAP, PUTABLE SWAP.",palgrave,0,66.23,7.4,0,13.27,11.5,11.91,7.25,8.36
CALLOVER,See RING TRADING.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
CALLOVER PRICE,"The price of an ASSET that is established during a RING TRADING session, which becomes an officially reported figure.REGULATORS.",palgrave,0,26.81,14.2,0,15.37,15.3,11.23,13.5,16.02
CANCELLABLE SWAP,"An OVER-THE-COUNTER SWAP structure that gives either party involved in the swap the OPTION to terminate the transaction at a future date. See also CALLABLE SWAP, PUTABLE SWAP.",palgrave,0,65.73,7.6,0,11.77,10.5,9.97,7.5,8.46
CANCELLATION PRICE,"In the United Kingdom, the price at which a UNIT TRUST will redeem individual units held by INVESTORS.",palgrave,0,70.13,8,0,9.16,9.8,8.92,9,9.42
CANDLESTICK,"A charting technique used in TECHNICAL ANALYSIS that divides TRADING periods (hours, days, weeks) into individual components of a histogram, with each period reflecting the open, close, high, and low.The payoff to the purchaser of a cap on each settlement date is given as:⎝ d ⎠where N is the NOTIONAL, rref is the value of the reference rate at the settle- ment date, c is the cap strike, n is the number of days in the settlement period, d is the number days in the year.The cap provides no payoff to the purchaser if the reference rate is lower than the cap strike for any individual settlement period. (2) See also CAPLET, CAPTION, FLOOR, FLOORLET, FLOORTION.",palgrave,0,-37.81,47.4,0,10.12,58.8,13.75,65,49.85
CAP AND COLLAR MORTGAGE,See ADJUSTABLE RATE MORTGAGE.,palgrave,0,75.88,3.7,0,13.05,11.2,11.73,1,1.6
CAP AND TRADE,"A mechanism where emissions, such as carbon diox- ide, sulfur dioxide, nitrous oxide and other pollutants, are capped and then traded between companies. The process depends on the creation of a max- imum limit, or cap, by an international body on the amount of emissions that can be released. Individual companies are then issued emission permits and must hold a specific amount of credits (representing the right to emit a givenamount). Companies that emit more must purchase more credits from those that emit less, in a TRADE. See also EMISSIONS TRADING.",palgrave,0,61.46,9.2,11.2,11.43,11.8,10.09,11.1,10.8
CAPACITY,"The maximum amount an INSURER is willing or able to UNDERWRITE in a specific LINE of RISK, generally a function of the level of its RETAINED EARNINGS and CAPITAL. Capacity can be increased through the use of REINSURANCE CONTRACTS, which allow the insurer to release UNEARNED PREMIUM RESERVES and increase the size of the retained earn- ings account.ECONOMIC CAPITAL, NET WORTH, REGULATORY CAPITAL.",palgrave,0,22.58,17.9,0,13.41,19.4,10.46,22.75,18.95
CAPITAL ADEQUACY RATIO,"The measure of a BANK’s CAPITAL ADEQUACY, measured as the ratio of qualifying CAPITAL to its total ASSETS. Under BASLE II, the minimum standard is set at 8%, but may be increased further at the discretion of national regulators. See also BASLE ACCORD, RISK-WEIGHTED ASSETS.",palgrave,0,47.79,10.3,12.5,10.49,10,11.05,10.16666667,11.33
CAPITAL ALLOCATION,"CAPITAL used to cover the RISKS inherent in a transaction or line of business; funds allocated act as a buffer against unex- pected losses and help ensure SOLVENCY is maintained. Capital can be allo- cated through both internally developed and regulatory mechanisms. See alsoECONOMIC CAPITAL, REGULATORY CAPITAL, RESERVES, RISK-ADJUSTED CAPITAL, RISK-ADJUSTED RETURN ON CAPITAL.",palgrave,0,19.37,15,17.1,16.06,15.9,10.96,15,14.61
CAPITAL ALLOWANCE,"In the United Kingdom, an allowance granted to a party that has made CAPITAL INVESTMENTS in property, plant, or equipment used in the productive process.",palgrave,0,46.1,13,0,12.02,15.4,9.3,16.5,14.8
CAPITAL ASSET,"See FIXED ASSET.E(rj) = rf + β [E(rm) – rf ]where rf is the risk-free rate, β is beta, and E(rm) is the expected return on the market portfolio. See also ALPHA, ARBITRAGE PRICING THEORY.Additional references: Jensen (1972); Merton (1973); Roll (1977); Ross (1976); Sharpe (1964, 1971).",palgrave,0,57.1,10.9,0,9.46,14.8,14.58,14.25,14.33
CAPITAL AT RISK,"(1) For an INVESTOR, the amount of invested CAPITAL that is exposed to one or more RISK types. (2) For a BANK, the amount of capital that is exposed to unexpected losses, typically derived from a CREDIT MODEL (for CREDIT RISK) and a VALUE-AT-RISK MODEL (for MARKET RISK).",palgrave,0,31.22,20.8,0,8.84,24.6,10.29,29,21.7
CAPITAL BOND,In the United Kingdom a government savings BOND with a 5-year MATURITY offering a guaranteed rate of RETURN.,palgrave,0,44.75,11.5,0,11.08,11.4,8.92,13,13.87
CAPITAL BUDGETING,"A process carried out by a company based on esti- mating the future CASH FLOWS of potential medium- and long-term CAPITAL INVESTMENTS (including those related to nonfinancial ASSETS), determin- ing the risk of the investments and their associated COST OF CAPITAL, and then deciding whether the investments will add value. Capital budgeting that involves cross-border investments must also take account of FOREIGN EXCHANGE risk, SOVEREIGN RISK and potential restrictions on capital repatriation.",palgrave,0,18.02,19.7,0,16.43,24.3,11.34,29,21.07
CAPITAL COMMITMENT,"(1) A CAPITAL financing transaction, such as a NEW ISSUE or LOAN, where the arranging/lending institution uses its ownresources to fund the transaction, with a view toward subsequent distribu- tion/SYNDICATION to other INVESTORS or lenders. (2) A plan developed by a company as part of its CAPITAL BUDGET process to enter into a specified amount and type of CAPITAL INVESTMENT during the fiscal year. (1) See alsoBOUGHT DEAL.",palgrave,0,-6.01,31,0,13.14,37.3,12.81,49,33.08
CAPITAL COST,See CAPITAL INVESTMENT.,palgrave,0,9.21,12.7,0,13.12,13,9.05,2.5,14.53
CAPITAL EXPENDITURE,See CAPITAL INVESTMENT.,palgrave,0,9.21,12.7,0,13.12,13,9.05,2.5,14.53
CAPITAL EXPENSE,See CAPITAL INVESTMENT.,palgrave,0,9.21,12.7,0,13.12,13,9.05,2.5,14.53
CAPITAL GOOD,"A FIXED ASSET that is used as a factor of production, e.g., plant, property, and equipment. See also DURABLE GOOD.",palgrave,0,78.25,4.8,0,6.47,5.9,11.24,5,8
CAPITAL GROWTH,"An increase in the value of CAPITAL that has been invested in a particular type of ASSET, such as STOCKS or BONDS. Capital growth may be driven by idiosyncratic or systemic factors such as profitability, market growth, and economic growth.",palgrave,0,51.18,11.1,0,11.02,12.1,9.76,13.5,13
CAPITAL INFLOW,"A change in a country’s CAPITAL ACCOUNT that reflects an increase in the foreign ASSETS held within the country, or a decrease in the assets it holds in another country. See also CAPITAL OUTFLOW.",palgrave,0,54.22,9.9,0,9.57,9.5,8.66,9,6.8
CAPITAL INVESTMENT,"The allocation of CAPITAL by a company to ASSETS used in the creation of goods and services, such as property, plant and equip- ment, patents, copyrights, and so forth. Capital investments may be categorized according to their end use, and may include replacement projects, expansion projects, mandatory projects, and/or new markets projects. The evaluation of a capital investment may be undertaken during the CAPITAL BUDGETING process through a NET PRESENT VALUE calculation. Also known as CAPITAL COST, CAPITAL EXPENDITURE, CAPITAL EXPENSE.",palgrave,0,33.95,13.6,16.5,14.68,15.6,9.71,15.625,15.03
CAPITAL LEASE,"A long-term LEASE CONTRACT, structured in con- ventional or LEVERAGED form, where the LESSEE accepts most/all of the RISKS and benefits of the leased property. Since the risks and economics aretransferable, ACCOUNTING rules generally require capital leases to be reflected on the corporate BALANCE SHEET. A capital lease is typically not cancella- ble, unless the lessee pays the LESSOR for any resulting losses. Also known as FINANCIAL LEASE. See also LEVERAGED LEASE, OPERATING LEASE.",palgrave,0,56.45,9.1,13.3,13.39,12.3,10.99,10.6,13.49
CAPITAL LOSS,"A loss generated through the sale of an ASSET, computed as the difference between the sale price and the original purchase price. Capital losses may be partly deductible against CAPITAL GAINS, with remaining TAX benefits carried over to future years.",palgrave,0,51.18,11.1,0,12.76,13.4,9.76,14,13
CAPITAL MARKET,"The general financial marketplace for primary and second- ary transactions in COMMON STOCK, PREFERRED STOCK, medium to long-term BONDS, SECURITIZATIONS, and DERIVATIVES. See also MONEY MARKET.",palgrave,0,24.44,13.1,0,17.33,15.3,10.96,9,14.43
CAPITAL MARKET LINE,"A relationship within the CAPITAL ASSET PRICING MODEL (CAPM) that relates the expected RETURN of a PORTFOLIO to its expected RISK (as measured through STANDARD DEVIATION). Under CAPM, all INVESTORS will choose a position on the capital market line by borrowing or lending at the RISK-FREE RATE, since this maximizes return for a given level of risk. The capital market line, based on market portfolio M, can be estimated via:⎦where rf is the risk-free rate, E(rM) is the expected return of the market portfolio, σ(rM) is the standard deviation of the return of the market portfolio, σ(rp) is the standard deviation of the return of the target portfolio. See also SECURITY MARKET LINE.",palgrave,0,34.29,15.5,15.9,11.15,16.5,9.09,22.33333333,14.51
CAPITAL MARKETS SUBSIDIARY,"A dedicated SUBSIDIARY owned by an INSURER, REINSURER, or COMMERCIAL BANK that is authorized to deal directly in a range of CAPITAL MARKET financing transactions and/or DERIVATIVES, including businesses normally associated with SECURITIES FIRMS and INVESTMENT BANKS.",palgrave,0,-8.39,23.6,0,18.58,26.4,14.01,34.5,31.02
CAPITAL MOVEMENT,"The ability for CAPITAL to move between INVESTMENT alternatives and across national borders, without excessive FRICTION COSTS or controls. When costs and controls are minimized, capital is mobile, seeking the best possible RETURN over a particular time horizon.",palgrave,0,35.27,13.1,0,16.13,15.8,10.4,14.5,14.97
CAPITAL NOTE,"A NOTE (or BOND) issued by a BANK or bank HOLDING COMPANY that can qualify as TIER 2 CAPITAL. To be included in the Tier 2 com- putation, the SECURITY must be structured as a NONCALLABLE BOND with an original MATURITY of at least 7 years, or a MANDATORY CONVERTIBLE BOND that results in conversion into the bank’s COMMON STOCK at maturity.",palgrave,0,48.47,14.2,0,8.66,15.2,10.78,21.5,18.21
CAPITAL OUTFLOW,"A change in a country’s CAPITAL ACCOUNT that reflects a decrease in the foreign ASSETS held within the country, or an increase in the assets it holds in another country. See also CAPITAL INFLOW.",palgrave,0,54.22,9.9,0,9.39,9.4,8.66,9,6.8
CAPITAL PROFIT,See CAPITAL GAIN.,palgrave,0,59.97,5.6,0,1.52,3.6,0.15,1.5,1.2
CAPITAL STRUCTURE,"The composition of LIABILITIES and EQUITY on a company’s BALANCE SHEET, which in total are used to fund its productive ASSETS. Capital structure, which varies by firm and across industries, is typic- ally a mix of different forms of DEBT (with varying degrees of SENIORITY) and one or more classes of STOCK (e.g., PREFERRED STOCK, COMMON STOCK).",palgrave,0,42.55,14.4,0,10.97,16.7,11.98,18.75,16.31
CAPITAL SURPLUS,"A form of CAPITAL that can be created from issuance of COMMON STOCK at a PREMIUM over PAR VALUE, proceeds of stock repurchased and then resold (i.e., resale of TREASURY STOCK), a reduction in par value of common stock, or the purchase of another company with a surplus. The capital surplus does not include PAID-IN CAPITAL or RETAINED EARNINGS, which are treated separately for ACCOUNTING purposes. See alsoSHARE PREMIUM.",palgrave,0,48.13,12.3,15,11.61,14.2,9.81,15.83333333,13.26
CAPITAL TURNOVER,See ASSET TURNOVER.,palgrave,0,93.81,0.9,0,5.35,6.8,14.31,0.5,1.2
CAPITALIZATION,(1) The structure and amount of CAPITAL a company has on its BALANCE SHEET. (2) An ACCOUNTING practice where a cost is recorded as a CAPITAL INVESTMENT and depreciated over several periods instead of being recorded as an expense and charged off against EARNINGS in a single period. (3) See MARKET .,palgrave,0,19.71,23.2,0,10.69,26.9,10.81,35,24.32
CAPITALIZED VALUE,The value of a FIXED ASSET on a company’s BALANCE SHEET before any deduction for DEPRECIATION.,palgrave,0,38.32,11.9,0,10.73,9.8,10.35,11,13.9
CAPITULATION,"A condition where the STOCK MARKET has declined dramatically on high volume as INVESTORS liquidate position en masse, in a form of panic selling. A capitulation may signal a bottoming phase in the mar- ket, luring in BOTTOM FISHERS and other investors seeking value.",palgrave,0,40.69,13.1,0,11.43,13.4,11.9,14,14.25
CAPLET,One of a series of INTEREST RATE CAPS comprising a CAP.,palgrave,0,68.77,6.4,0,4.74,3.3,9.92,6.5,11.67
CAPPED FLOATING RATE NOTE,A FLOATING RATE NOTE (FRN) that features a COUPON that is capped at an upper STRIKE level. The INVESTOR therefore faces a maximum return on invested CAPITAL once rates move above the strike. See also FLOORED FLOATING RATE NOTE.,palgrave,0,75.2,6,8.8,9.21,7.9,9.54,6.5,7.25
CAPPED MORTGAGE,See ADJUSTABLE RATE MORTGAGE.,palgrave,0,75.88,3.7,0,13.05,11.2,11.73,1,1.6
CAPTION,"An OVER-THE-COUNTER OPTION on a CAP, granting the buyer the right to purchase a cap at a predetermined STRIKE PRICE. See also FLOOR, FLOORTION.insurance and tax laws, such as Bermuda, the Isle of Man, Guernsey, and Vermont. See also AGENCY CAPTIVE, GROUP CAPTIVE, PROTECTED CELL COMPANY, PURE CAPTIVE, RENT-A-CAPTIVE, SISTER CAPTIVE.",palgrave,0,54.22,9.9,11.2,12.47,13.2,9.43,10.5,9.15
CAPTIVE AGENT,"An AGENT that represents a single INSURER and is required to submit business only to that insurer. In exchange for acting in an exclusive capacity, the insurer generally helps the captive agent defray market- ing costs and provides additional financial benefits.",palgrave,0,33.75,13.6,0,13.58,14.3,11.59,15.25,16
CARBON DIOXIDE EQUIVALENT,"A standard metric used in EMISSIONS TRADING, where the warming potential of greenhouses gases is converted into the base carbon dioxide reference. Those with a higher warming potential (such as methane, nitrous oxide, hydrofluorocarbons, and sulfur hexafluoride) feature higher carbon dioxide equivalents.",palgrave,0,24.78,15,0,18.1,18.7,12.57,14.5,15.07
CARBON TRADING,See EMISSIONS TRADING.,palgrave,0,59.97,5.6,0,11.15,11.5,14.31,0.5,1.2
CARRIER,An INSURER that is authorized to UNDERWRITE and ISSUE anINSURANCE POLICY.,palgrave,0,26.47,12.3,0,14.25,11.1,12.79,10.5,22.58
CARROT EQUITY,"In the United Kingdom, a COMMON STOCK issue with a KICKER, or extra incentive, which allows INVESTORS to buy more stock if certain performance goals are met.",palgrave,0,52.53,12.6,0,10.28,14.9,9.65,15.5,13.76
CARRY,"The differential obtained after deducting INTEREST or funding charges from the RETURNS produced by an ASSET. Carry is posi- tive if returns exceed funding, and negative if funding exceeds returns. See also CASH-AND- ARBITRAGE,  TRADE, COST OF , LONG , NEGATIVE , POSITIVE , SHORT .",palgrave,0,32.19,12.2,11.9,13.51,12.4,10.48,9,11.33
CARRY TRADE,"Any transaction or TRADE that is designed to produce CARRY. A carry trade can be created using a variety of ASSETS, including FIXED INCOME instruments, EQUITIES, COMMODITIES, and CURRENCIES. See also NEGATIVE CARRY, POSITIVE CARRY.",palgrave,0,34.22,11.4,13.6,12.86,10.9,10.98,8.166666667,16.11
CARRYBACK LOSS,See TAX CARRYBACK.,palgrave,0,59.97,5.6,0,3.43,5.2,9.05,1.5,14.53
CARRYFORWARD LOSS,See TAX CARRYFORWARD.,palgrave,0,34.59,9.2,0,9.23,9.9,9.05,1.5,14.53
CARRYING AMOUNT,See CARRYING VALUE.,palgrave,0,34.59,9.2,0,5.35,6.8,9.05,1.5,14.53
CARRYING MARKET,"Any COMMODITY market based on nonperishable commodities, where INVENTORY can be carried from period to period with- out risk of loss or damage, e.g., metals, energy.",palgrave,0,28.17,15.8,0,12.48,16.9,12.21,20,19.63
CARRYING VALUE,The value of an ASSET or LIABILITY as reflected on a company’s BALANCE SHEET. Also known as CARRYING AMOUNT.,palgrave,0,53.37,8.2,0,7.8,5.6,9.09,5.75,12.22
CARTEL,"A formal or informal agreement between firms in an industry or market to restrict competition by setting minimum price levels or maximum output QUOTAS, and/or by segregating products or markets. Although estab- lishment of a cartel can lead to profit growth in the short run, members mayfind it difficult to monitor each other’s actions over the long term, leading in some instances to the gradual erosion of the arrangement.",palgrave,0,28,17.9,0,12.72,20.2,12.67,22.25,19.6
CARVE-OUT,See DEMERGER.,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,1,20.8
CASH ACCOUNTING,A general ACCOUNTING method that reports INCOME when it is received and EXPENSES when they are paid. Also known as CASH BASIS. See also ACCRUAL ACCOUNTING.,palgrave,0,62.64,6.7,10.5,8.95,6.5,8.32,5,8.1
CASH AGAINST DOCUMENTS,"In international TRADE, a process where shipping documents are sent to a BANK in the country to which the goods are being shipped, after which the buyer obtains the documents by paying the bank in cash. See also DOCUMENTS AGAINST ACCEPTANCE",palgrave,0,59.13,10.1,0,10.56,11.8,8.12,12.75,11.13
CASH-AND-CARRY ARBITRAGE,"A combination of ARBITRAGE and a CARRY TRADE used in the COMMODITY markets where an ARBITRAGEUR buys the commodity in the SPOT MARKET, sells it FORWARD, pays for the financing and storage costs, and is still able to generate a profit. See alsoREVERSE CASH-AND-CARRY ARBITRAGE.",palgrave,0,48.64,12.1,0,12.02,14.1,9.66,16.25,15.22
CASH-AT-EXPIRY OPTION,A BINARY OPTION that grants the buyer a pay- off at EXPIRY equal to a fixed cash amount if the price of the UNDERLYING market reference exceeds the STRIKE PRICE or BARRIER at any time during the transaction. See also BINARY-BARRIER OPTION.,palgrave,0,50.16,11.5,0,9.52,11.3,9.19,13.5,13.16
CASH-AT-HIT OPTION,A BINARY OPTION that grants the buyer an imme- diate payoff equal to a fixed cash amount once the price of the UNDERLYING market reference breaches the STRIKE PRICE or BARRIER. See also BINARY-BARRIER OPTION.,palgrave,0,53.71,10.1,0,10.61,10.7,10.37,11.25,11.57
CASH BASIS,See CASH ACCOUNTING.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,14.53
CASH-CDS BASIS,"For a given MATURITY, the differential between a REFERENCE ENTITY’s CREDIT DEFAULT SWAP (CDS) spread and its BOND (e.g., the CASH MARKET). When the CDS–BOND spread is greater than 0, the basis is considered to be positive, and when it is less than 0 it is negative.",palgrave,0,56.08,11.3,0,8.54,12.3,10.51,15.25,15.36
CASH CONVERSION CYCLE,"The number of days it takes for a company to con- vert its INVENTORY and ACCOUNTS RECEIVABLE into cash, after taking into account its use of CREDIT via ACCOUNTS PAYABLE. It can be computed as:where DSI is DAYS SALES INVENTORY, DSO is DAYS SALES OUTSTANDING, DPO is DAYS PAYABLES OUTSTANDING.The larger the result, the longer it takes a company to create cash. See alsoCASH FLOW CYCLE, OPERATING CYCLE.",palgrave,0,56.89,11,13.6,10.57,13,10.34,14.66666667,12.61
CASH COW,"A company, SUBSIDIARY, or product that is able to gen- erate significant, and dependable, REVENUES, OPERATING INCOME, and/or OPERATING CASH FLOW with little incremental invested CAPITAL.",palgrave,0,11.25,18.2,0,16.95,20.7,11,21,18.09
CASH DELIVERY,"Arrangement for immediate delivery of goods for cash, or vice-versa, as per the terms of any CONTRACT negotiated for cash or SPOT settlement. See also FORWARD DELIVERY.",palgrave,0,49.31,9.7,0,11.53,10.1,9.57,10.25,11.33
CASH DISCOUNT,The DISCOUNT associated with the payment of an invoice within a particular period. A buyer of goods or services paying the invoice within the period specified receives a cash discount from the seller. From an ACCOUNTING perspective discounts received are considered a form of REVENUE while those which are granted are a form of EXPENSE.,palgrave,0,44.44,11.6,12.5,12.13,11.9,10.29,11.83333333,12.41
CASH DIVIDEND,A DIVIDEND paid by a company in the form of cash. Cash dividends are the most common form of dividend payments in most national systems. See also STOCK DIVIDEND.,palgrave,0,61.63,7.1,11.2,7.22,5,7.38,5.833333333,8.02
CASH FLOW,"(1) A measure of a company’s sources and uses of cash and the overall state of its LIQUIDITY. Cash flow is divided into OPERATING , INVESTING , and FINANCING . (2) Any cash inflow or outflow associated with an INVESTMENT or FINANCING transaction.",palgrave,0,34.26,13.5,0,11.02,12.6,10.94,15.75,17
CASH FLOW CYCLE,"The time between the outflow of cash in support of raw material acquisition and the inflow of cash from sales of goods. Cash outflows may be delayed through the use of supplier CREDIT, while cash inflows may be delayed by granting customers sales credit. See also CASH CONVERSION CYCLE, OPERATING CYCLE.",palgrave,0,62.68,8.7,10.5,10.61,10.4,9.43,10.16666667,10.72
CASH FLOW STATEMENT,See STATEMENT OF CASH FLOWS.,palgrave,0,100.24,0.5,0,4.96,3.7,10.2,1.5,2
CASH FLOW TO CAPITAL INVESTMENT,"A measure of the flexibility a company has to invest in new capital projects, which is particularly important for those in capital-intensive industries (e.g., utilities, transportation, manufac- turing). It is computed as:where CF is the company’s cash flow, Capex is the company’s estimated capital expendituresThe greater the ratio, the greater the financial flexibility afforded the company. See also CASH FLOW TO DEBT.",palgrave,0,25.08,14.9,17.9,14.97,16.3,10.52,17,16.67
CASH FLOW TO DEBT,"A measure of a company’s ability to meet its DEBT obligations through its total CASH FLOW resources. It is computed as:where CF is the company’s cash flow, Debt is the company’s debt, either in total, or with reference to a specific maturity.The greater the ratio, the greater the company’s ability to meet its obligations. See also CASH FLOW TO CAPITAL INVESTMENT.",palgrave,0,50.87,11.2,15.5,10.85,12.3,8.27,14.83333333,13.37
CASH FLOW UNDERWRITING,"In INSURANCE, a pricing strategy where the PREMIUM charged is less than the EXPECTED LOSS LEVEL. The intent is to generate a large amount of premiums through the underpricing and use proceeds from reinvested premiums to cover expected losses and generate aPROFIT MARGIN.",palgrave,0,41.19,12.9,0,13.05,14.3,10.21,16.25,16.04
CASH MARKET,See SPOT MARKET.,palgrave,0,93.81,0.9,0,-0.46,2.1,0.15,0.5,1.2
CASH ON DELIVERY,(COD) See DELIVERY VERSUS PAYMENT.,palgrave,0,49.48,7.6,0,9.6,9.3,10.2,2.5,10
CASH ON DELIVERY OPTION,See CONTINGENT PREMIUM OPTION.,palgrave,0,8.2,13.1,0,14.5,12.4,15.68,3,21.6
CASH-OR-NOTHING OPTION,A BINARY OPTION that grants the buyer a payoff equal to a fixed cash amount if the price of the UNDERLYING market reference breaches the STRIKE PRICE at EXPIRY. See also BINARY OPTION.,palgrave,0,63.19,8.5,0,8.81,8.5,9.72,10.25,10.24
CASH PRICE,See SPOT PRICE.,palgrave,0,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
CASH RATE,See SPOT RATE.,palgrave,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
CASH RATIO,"For a BANK, the amount of cash held as a percentage of total ASSETS to meet the claims of those withdrawing DEPOSITS.",palgrave,0,74.53,8.3,0,7.49,10.1,9.03,13,12.44
CASH SETTLEMENT,A SETTLEMENT process where two parties to a TRADE or DERIVATIVE CONTRACT exchange cash for the cash equivalent of a phys- ical ASSET (such as a COMMODITY) on a net basis. This obviates the need for arranging or accepting delivery of the physical asset. Also known as FINANCIAL SETTLEMENT. See also PHYSICAL SETTLEMENT.,palgrave,0,49.52,9.7,13.4,10.19,8.8,9.06,8.875,12.11
CASUALTY,"LIABILITY or loss arising from an accident, negligence, or omis- sions, which can be covered through different forms of INSURANCE (such as PROPERTY AND  INSURANCE, COMMERCIAL GENERAL LIABILITY INSURANCE, or MULTIPLE PERIL INSURANCE).",palgrave,0,4.14,20.9,0,16.89,23.6,11.02,29.5,20.47
CAT BOND,"See CATASTROPHE BOND.LINKED SECURITY, LIFE ACQUISITION COST SECURITIZATION, MORTGAGE DEFAULT SECURITIZATION, RESIDUAL VALUE SECURITIZATION, WEATHER BOND.CATASTROPHIC LOSS, CLASH LOSS, SHOCK LOSS.",palgrave,0,-25.99,22.1,0,28.54,28.3,12.95,18.5,19.83
CATASTROPHIC LOSS,"A high-severity, low-frequency loss event arising from a CATASTROPHIC HAZARD. A company often seeks to protect against catastrophic loss through INSURANCE, REINSURANCE, or CATASTROPHE BONDS. Catastrophic losses are often challenging to quantify since they are relatively rare and may, in some instances, be UNINSURABLE. See also CLASH LOSS, SHOCK LOSS.",palgrave,0,41.87,10.5,13.4,15.59,13.4,10.26,8.5,13
CATCH A FALLING KNIFE,Any instance where an INVESTOR pur- chases the SHARES of a company that have fallen rapidly and dramatically in price. The investor is betting that OVERSOLD conditions exist and that the likelihood of a price rebound outweighs the risk of further price declines.,palgrave,0,58.11,10.5,0,12.01,13.4,10.58,12.75,11.39
CATS,See CERTIFICATE OF ACCRUAL ON TREASURY SECURITIES.,palgrave,0,22.07,11.9,0,15.67,11.7,13.01,5.5,19.94
CAVEAT EMPTOR,Literally “buyer beware.” The term is often given as a warning to RETAIL INVESTORS participating in risky or unprovenINVESTMENTS.,palgrave,0,26.81,14.2,0,16.01,15.6,12.06,12.5,13.92
CBO,See COLLATERALIZED BOND OBLIGATION.,palgrave,0,-8.73,15.5,0,21.75,18.3,15.68,3,21.6
CCA,See CHARTERED CERTIFIED ACCOUNTANT.,palgrave,0,8.2,13.1,0,21.75,18.3,15.68,3,21.6
CD,See CERTIFICATE OF DEPOSIT.,palgrave,0,50.5,7.2,0,10.15,8.8,7.78,2,11.6
CEDANT,See INSURED.,palgrave,0,77.91,2.9,0,-1.61,5.5,11.63,0,0.8
CEDE,The process of transferring RISK from one party (the INSURED or CEDING INSURER) to another party (the INSURER or REINSURER) through an INSURANCE or REINSURANCE CONTRACT. See also RETRO.,palgrave,0,48.3,10.1,0,12.35,11.3,10.35,10.75,12.7
CEDED PREMIUMS,"PREMIUMS that are paid by an INSURER or CAPTIVE to a REINSURER, which assumes coverage of the RISK being ceded.",palgrave,0,51.18,11.1,0,8.82,10.2,10.94,14,16
CEDING COMPANY,"A company that transfers, or CEDES, RISK to an INSURER. See also INSURED.",palgrave,0,73.34,4.6,0,5.16,3.9,10.03,3.25,5.68
CEDING INSURER,"An INSURER that transfers, or CEDES, RISK to aREINSURER.",palgrave,0,62.34,6.8,0,9.94,8.2,12.86,5.5,12.49
CEDULAS HIPOTECARIAS,"In Spain, a form of COVERED BOND backed by a BANK’s MORTGAGES. See also HYPOTHEKENPFANDBRIEFE, IRISH ASSET COVERED SECURITIES, JUMBO PFANDBRIEFE, LETTRES DE GAGE, OBLIGATIONS FONCIERES, OFFENTLICHE PFANDBRIEFE.",palgrave,0,57.27,8.8,0,18.38,16.4,14.48,7.5,9.89
CELL CAPTIVE,See RENT-A-CAPTIVE.,palgrave,0,35.61,8.8,0,12.9,22,11.63,1,0.8
CENTRAL LIMIT THEOREM,See LAW OF LARGE NUMBERS.,palgrave,0,100.24,0.5,0,1.48,0.9,7.04,1.5,2
CEO,See CHIEF EXECUTIVE OFFICER.,palgrave,0,8.2,13.1,0,11.6,10,7.78,3,11.6
CERTAIN ANNUITY,"A form of ANNUITY that pays the ANNUITANT a fixed amount for a defined period of time, once the annuitant has reached a particu- lar age.United States, a ZERO COUPON BOND issued by the Treasury Department.",palgrave,0,34.94,17.3,0,9.88,18.8,12,24,18.84
CERTIFICATE OF INCORPORATION,"A certificate issued by an authorized body (e.g., Registrar of Incorporations, Registrar of Associations) that confirms the legal creation and existence of a CORPORATION, typically based on the ARTICLES OF INCORPORATION that have been filed by the founders.",palgrave,0,7.53,21.7,0,15.68,24.8,13.42,30,25.73
CERTIFIED PUBLIC ACCOUNTANT (CPA),"In the United States, an account- ant that receives a state license through the passage of relevant examinations and the accumulation of industry experience and is qualified to AUDIT a company’s ACCOUNTS. See also CHARTERED ACCOUNTANT, CHARTERED CERTIFIED ACCOUNTANT.",palgrave,0,26.3,14.4,0,16.01,16,10.68,14.75,17.03
CESR,See COMMITTEE OF EUROPEAN SECURITIES REGULATORS.,palgrave,0,-27.68,18.6,0,19.77,15.3,14.46,6,29.07
CESSION,A quantify of RISK transferred from one party to a second party via an INSURANCE CONTRACT; the second party becomes responsible for provid- ing coverage in exchange for CEDED PREMIUM.,palgrave,0,32.57,16.2,0,12.49,17.7,11.97,20,18.67
CFA,See CHARTERED FINANCIAL ANALYST.,palgrave,0,8.2,13.1,0,17.4,14.7,15.68,3,21.6
CFD,See CONTRACT FOR DIFFERENCES.,palgrave,0,50.5,7.2,0,13.05,11.2,11.73,2,11.6
CFO,See CHIEF FINANCIAL OFFICER.,palgrave,0,33.58,9.6,0,11.6,10,7.78,3,11.6
CFTC,See COMMODITY FUTURES TRADING COMMISSION.,palgrave,0,-1.29,14.7,0,20.04,15.9,16.52,3.5,18
CGS,See COST OF GOODS SOLD.,palgrave,0,117.16,-1.9,0,-0.85,-1.1,0.25,1.5,2
CHAEBOL,"The Korean form of conglomerate, generally comprised ofaseries of companies with cross-SHAREHOLDINGS and business relationships, but no central core company.",palgrave,0,17.34,15.8,0,21.58,21.1,12.52,17,20
CHAPS,See CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM.,palgrave,0,-1.29,14.7,0,22.36,17.8,13.36,3.5,18
CHAPTER 9,"In the United States, the statute of the Bankruptcy Reform Act that relates to the REORGANIZATION proceedings of municipalities. Though this clause is not commonly used, in most instances a municipal DEBTOR continuesto conduct municipal operations while concluding DEBT RESTRUCTURING negotiations with CREDITORS. See also CHAPTER 7, CHAPTER 11, CHAPTER 13, PREPACKAGED BANKRUPTCY.",palgrave,0,28.13,13.7,15.5,17.46,16.6,11.96,13.5,16.14
CHAPTER 11,"In the United States, the statute of the Bankruptcy Reform Act that relates to the REORGANIZATION proceedings of PARTNERSHIPS and CORPORATIONS. In most cases a Chapter 11 DEBTOR is allowed to remain in control of its business while concluding DEBT RESTRUCTURING negoti- ations with CREDITORS. See also CHAPTER 7, CHAPTER 9, CHAPTER 13, PREPACKAGED BANKRUPTCY.",palgrave,0,44.44,11.6,13,14.04,13.9,11.43,12.16666667,13.14
CHAPTER 13,"In the United States, the statute of the Bankruptcy Reform Act that relates to the RESTRUCTURING proceedings of individuals in FINANCIAL DISTRESS (as an alternative to CHAPTER 7). In most cases a personal DEBTOR is permitted to keep certain types of property and establish a DEBT repayment schedule covering 3 to 5 years. Also known as WAGE EARNER’S PLAN. See alsoCHAPTER 9, CHAPTER 11, PREPACKAGED BANKRUPTCY.",palgrave,0,46.27,10.9,13.8,11.95,11.5,12.11,11.75,14.48
CHARGE,"An interest in personal or corporate property that secures the pay- ment of funds in favor of the chargee (often a BANK lender). See also FIXED , FLOATING .",palgrave,0,57.77,8.6,0,8.34,7.6,10.74,8.25,11.33
CHARGE CARD,"A card issued by a BANK or financial institution that con- veys a short-term CREDIT line to the holder allowing the purchase of goods or services, with the agreement that any resulting balance becomes due and pay- able at the end of every month and cannot be carried forward. See also CREDIT CARD, DEBIT CARD.",palgrave,0,52.02,12.8,0,9.17,14.2,9.31,15.75,13.91
CHARTERED BANK,"In the United States and Canada, a BANK that is permit- ted to operate on a state/provincial or national level through the granting of a charter from the relevant regulatory authority.",palgrave,0,40.01,15.4,0,11.38,17.5,10.78,20.5,20.14
CHARTERED FINANCIAL ANALYST (CFA),"A professional designation awarded to those who have completed the examination requirements of the CFA program, which focuses on INVESTMENT MANAGEMENT, ECONOMICS, SECURITIES ANALYSIS, and ACCOUNTING.",palgrave,0,-5.68,20.5,0,20.72,23.1,14.04,25,28.86
CHASING THE MARKET,Any instance where an INVESTOR enters or exits a SECURITY or market after a significant upside or downside trend has already been established. Participating after such a lag may expose the investor to losses once a CORRECTION takes place.,palgrave,0,43.22,12.1,0,12.18,12.5,10.68,12.25,12.93
CHASTITY BOND,A BOND that can be redeemed by the issuing company at PAR VALUE in the event that it becomes the target of a TAKEOVER offer from another company.,palgrave,0,51.52,13,0,7.26,12.4,9.54,18,12.63
CHEAP,"An ASSET that is perceived by market participants to be inex- pensive compared to alternatives or proxies (i.e., the SPREAD is too wide in the case of a BOND or the price too low in the case of a COMMON STOCK, CURRENCY, or COMMODITY). Those believing the asset is cheap will seek to profit by purchasing it, directly, synthetically, or through an ARBITRAGE TRADE. See also RICH.",palgrave,0,57.3,10.8,13,8.83,11.7,9.22,14.16666667,14.29
CHEAPEST-TO-DELIVER (CTD),"The cheapest of a series of ASSETS that are eligible for DELIVERY under an EXCHANGE-TRADED DERIVATIVE; the seller selects from the list of deliverables to determine the asset that will yield the greatest RETURN (i.e., lowest cost, narrowest BASIS, or smallest loss). See alsoCONVERSION FACTOR.",palgrave,0,31.72,14.4,0,13.7,15.9,12.12,15.25,15.22
CHECK,A form that authorizes a BANK or other FINANCIAL INSTITUTION to pay a specified sum to the named PAYEE from the DRAWER’s account. A check may carry an ENDORSEMENT which permits different degrees of trans- fer among third parties. Also known as CHEQUE.,palgrave,0,65.42,7.7,11.2,9.79,8.6,9.49,8.166666667,10.37
CHECK KITING,"An illegal practice involving the writing of CHECKS on two or more nonlocal BANKS, creating an unauthorized, INTEREST-free LOAN or displaying a larger account balance until the checks are cleared. Also known as KITING.",palgrave,0,45.76,11.1,0,13.11,12.7,10.98,12,15.04
CHECKING ACCOUNT,A BANK ACCOUNT on which a CHECK can be drawn by the DRAWER in favor of a named PAYEE.,palgrave,0,86.03,6,0,2.85,4.7,7.07,8.5,7.6
CHEQUE,"In the United Kingdom, a CHECK.",palgrave,0,90.77,2.1,0,2.37,2,0.3,2,2.4
CHEWABLE PILL,"A POISON PILL defense clause that gives COMMON STOCK SHAREHOLDERS the right to revoke the pill in the face of a bona fide TAKEOVER offer, or which automatically nullifies the pill if the offer meets certain predefined criteria.",palgrave,0,41.37,16.9,0,12.02,21.1,10.92,24,20.46
CHIEF EXECUTIVE OFFICER (CEO),"The executive leader of a company, responsible for guiding the management team and defining and fulfilling tac- tical and strategic imperatives. The CEO is often appointed by the BOARD OF DIRECTORS and is accountable to them.",palgrave,0,44.75,11.5,0,12.41,12.4,10.67,13.5,16.09
CHIEF FINANCIAL OFFICER (CFO),"A professional that is responsible for all aspects of financial affairs within a company, including ACCOUNTING, AUDITING, and TREASURY. In many jurisdictions the CFO is a signatory to the FINANCIAL STATEMENTS.",palgrave,0,30.36,12.9,0,14.96,13.5,11.54,12.75,16.52
CHIEF INVESTMENT OFFICER,"An individual working within a HEDGE FUND, MUTUAL FUND, or other investment management vehicle that is responsible for leading the management of one or more INVESTMENT PORT- FOLIOS. The chief investment officer may have strategic and tactical responsi- bilities, and may be in charge of the PORTFOLIO CONSTRUCTION process.",palgrave,0,29.69,15.2,0,14.63,17.1,11.3,19.75,18.78
CHILD ORDER,"A portion or slice of a PARENT ORDER that is executed inde- pendently, but according to price and/or time considerations embedded in the logic of an ALGORITHM.",palgrave,0,35.61,15,0,10.74,15.3,10.24,19.5,19.69
CHIPS,See CLEARINGHOUSE INTERBANK PAYMENT SYSTEM.,palgrave,0,15.64,12.3,0,22.36,17.8,13.36,3.5,18
CHOICE PRICE,"Identical BIDS and OFFERS provided by a MARKET MAKER or DEALER, meaning that a party can execute either side of the TRADE at the same price. See also LOCKED MARKET.",palgrave,0,64.71,8,0,7.65,7.3,9.12,8,10
CHOOSER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that permits the buyer to choose between an underlying CALL OPTION and PUT OPTION with identical STRIKE PRICES and MATURITIES from trade date until a defined “choice” date. Also known as a PREFERENCE OPTION, REGULAR . See also COMPLEX .",palgrave,0,48.81,9.9,11.2,12.81,11.1,8.84,8.333333333,10.36
CHURNING,"(1) An illegal practice where a BROKER urges clients to trade more actively than necessary in their INVESTMENT accounts in orderto generate more COMMISSIONS. Accounts that reflect turnover of more than three to five times per year may indicate churning. (2) In the United Kingdom, a practice where a BANK or BUILDING SOCIETY encourages a holder of an ENDOWMENT MORTGAGE to surrender the current contract and take out a new, larger one, thereby generating additional COMMISSIONS. Also known asOVERTRADING, TWISTING.",palgrave,0,35.91,14.9,16.3,13.7,17.5,11.47,18.66666667,18.18
CIF,"See COST, INSURANCE, FREIGHT.",palgrave,0,75.88,3.7,0,10.15,11.2,7.78,2,11.6
CIN,See CUSIP INTERNATIONAL NUMBER,palgrave,0,8.2,13.1,0,15.95,12.4,11.73,2,11.6
CIRCLE,See INDICATION OF INTEREST.,palgrave,0,8.2,13.1,0,10.15,8.8,11.73,3,21.6
CIRCUIT BREAKER,"Measures taken to halt TRADING on an EXCHANGE in the event predefined price levels are reached. Circuit break- ers are intended to allow market participants to rebalance their positions in an orderly manner without contributing to further price pressures. Common breakers include temporary trading halts, curbs, or bans on automated trading programs, and/or hourly/daily price limits.",palgrave,0,35.57,12.9,13.6,15.84,15.6,12.18,12.66666667,13.91
CIRCULATING ASSET,See CURRENT ASSETS.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
CITY,"Short for City of London, a reference to London’s financial district.",palgrave,0,60.31,7.6,0,11.58,9.3,11.36,6.5,11.67
CLAIM,"(1) A request for loss INDEMNIFICATION made by an INSURED to an INSURER for a PERIL covered under an INSURANCE CONTRACT; the party submitting the claim is known as a claimant. In order for the claim to result in a SETTLEMENT, terms of the underlying contract must be met and proof of loss must generally be presented. (2) A general right to an ASSET or CASH FLOW.",palgrave,0,45.93,15.2,0,8.25,16.2,10.01,21.25,17.58
CLAIMS MADE BASIS,"Determination of whether a CLAIM is covered by an INSURANCE CONTRACT. If the contract is written on a claims made basis and if a claim is made when the policy is in effect, the INSURER must pay the INSURED up to the stated amount. See also CLAIMS OCCURRENCE BASIS.",palgrave,0,71.85,7.3,10.5,7.54,7.5,8.96,8.833333333,10.6
CLAIMS RESERVE,Funds set aside by an INSURER for CLAIMS incurred or for claims outstanding that have not been settled. The claims reserve does not include ACCOUNTING for losses INCURRED BUT NOT REPORTED.,palgrave,0,64.2,8.2,0,11.6,10.3,10.01,8.75,11.36
CLASH COVER,A form of REINSURANCE that provides for additional cover- age of RISK when the CEDANT’s coverage results in two or more loss CLAIMS under the same occurrence.,palgrave,0,52.53,12.6,0,10.91,15.1,10.24,17.5,16.73
CLASH LOSS,"A disaster scenario where various LINES of INSURANCE are simultaneously impacted by losses. The resulting CLAIMS may be particu- larly large and can negatively impact the financial condition of INSURERS and REINSURERS. See also CATASTROPHIC HAZARD, SHOCK LOSS.",palgrave,0,33.2,11.8,14.6,15.12,12.6,12.58,10.33333333,17.71
CLASH REINSURANCE,An EXCESS OF LOSS REINSURANCE CONTRACT where the INSURER is covered against property or casualty losses when a single CASUALTY event causes losses for at least two CEDING INSURERS.,palgrave,0,25.12,17,0,13.53,17.8,11.61,20.5,18.5
CLASS ACTION,A form of legal action where an individual brings suit as a representative of a broad class of plaintiffs who have a similar grievance or claim.,palgrave,0,53.55,12.3,0,9.35,13.1,10.39,16,15.02
CLASSIFIED BOARD,See STAGGERED BOARD.,palgrave,0,93.81,0.9,0,7.32,8.3,9.05,0.5,1.2
CLASSIFIED STOCK,"Separate classes of COMMON STOCK issued by a com- pany, with each class granting INVESTORS a distinct set of RENT RIGHTS and/ or CONTROL RIGHTS. Classified stock is often used to increase or decrease the voting power of specific groups of SHAREHOLDERS. See also A-SHARE, ALPHABET STOCK, B-SHARES.",palgrave,0,63.7,8.4,10.5,11.31,11,11.01,8.666666667,9.73
CLAWBACK,"(1) The repayment, to RECEIVERS of a company in BANKRUPTCY, of any PREFERENCE payments, or monies deemed to have benefited one party at the expense of others during the period of FINANCIAL DISTRESS. (2) An agreement, which may be used in PROJECT FINANCE, that requires the BORROWER or sponsor to pay future cash shortfalls with profits generated in previous periods. (1) See also PREFERENCE PERIOD.",palgrave,0,-2.97,29.8,0,12.14,35.3,13.42,45.5,32.15
CLEAN,"Matched buy and sell ORDERS on a BLOCK TRADE that leave the MARKET MAKER, DEALER, or INTERMEDIARY without a RISK position. Also known as NATURAL.",palgrave,0,58.79,8.2,0,8.98,7.6,9.31,6.75,9.8
CLEAN BILL,A BILL OF LADING reflecting the fact that goods being shipped are in good order. See also DIRTY BILL OF LADING.,palgrave,0,86.2,3.8,0,5.83,4.2,6.41,4.75,6.1
CLEAN FLOAT,"The practice of a CENTRAL BANK or monetary author- ity not to intervene in the FOREIGN EXCHANGE markets to influence the value of its CURRENCY. See also DIRTY FLOAT, STERILIZATION.",palgrave,0,56.25,9.1,0,10.55,9.8,9.64,9,12.67
CLEAN OPINION,See UNQUALIFIED OPINION.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,1.5,14.53
CLEAN PRICE,The price of a BOND quoted without ACCRUED INTEREST. See also DIRTY PRICE.,palgrave,0,73.34,4.6,0,6.56,4.3,8.82,2.75,5.68
CLEAN RISK,See SETTLEMENT RISK.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,1.2
CLEANUP REQUIREMENT,A requirement that a BORROWER regularly repay all funds drawn under a REVOLVING CREDIT FACILITY as a way of demonstrating its ability to generate FINANCING from other sources. Inability to meet the clean-up requirement may lead to a cancellation of the facility.,palgrave,0,33.24,13.8,0,12.82,13.8,10.32,17,18.88
CLEARED BALANCE,The balance in a BANK ACCOUNT that reflects only items that have already been cleared and excluding those that are not yet classed as having cleared value.,palgrave,0,69.45,10.3,0,10.51,14.6,8.48,14.5,12.28
CLEARING BANK,"In the United Kingdom, a large retail or wholesale COMMERCIAL BANK. See also HIGH STREET BANK.",palgrave,0,80.28,4.1,0,7.9,5.8,6.99,3.5,5.7
CLEARING CYCLE,"The phases that comprise the transfer of cash or value from the PAYER to the PAYEE, typically spanning several days.",palgrave,0,51.18,11.1,0,10.27,11.4,10.94,12,10
CLEARING MARGIN,"MARGIN posted by a CLEARING MEMBER with an EXCHANGE on behalf of clients or proprietary accounts. See also INITIAL MARGIN, VARIATION MARGIN.",palgrave,0,51.85,8.8,0,12.1,9.6,10.64,5.5,8.04
CLEARING MEMBER,"An EXCHANGE member that is permitted to clear trades directly with the CLEARINGHOUSE, and which can accept trades for other clearing members and NONS.",palgrave,0,55.58,11.5,0,13.23,15.5,9.43,15,14.6
CLEARINGHOUSE,"(1) In the DERIVATIVES market, a SUBSIDIARY or div- ision of an EXCHANGE or an independently owned entity that is responsible for CLEARING listed FUTURES and OPTIONS TRADES, computing and collect- ing daily MARGIN, and arranging for SETTLEMENT of financial or physical ASSETS related to trades. The CREDIT RISK normally associated with deriv- atives is neutralized as participants face the , rather than each other, as their COUNTERPARTY. (2) In BANKING, a group of institutionsthat exchanges CHECKS, DRAFTS, and payment orders on a net basis, result- ing in the creation of clearinghouse funds that are accessible within one to three business days. (2) See also CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM, CLEARINGHOUSE INTERBANK PAYMENT SYSTEM.BANKERS’ AUTOMATED CLEARING SYSTEM (BACS).",palgrave,0,-4.32,28.3,0,15.68,34.7,13.59,34,29.75
CLEARSTREAM,"A European organization responsible for SETTLEMENT and CLEARING of EUROBONDS, created from the merger of Cedel and Deutsche Borse in 2000. See also EUROCLEAR.",palgrave,0,42.38,10.3,0,13.73,11.1,12.13,8,13.13
CLO,See COLLATERALIZED LOAN OBLIGATION.,palgrave,0,-8.73,15.5,0,21.75,18.3,11.73,3,21.6
CLO EQUITY,"The RESIDUAL TRANCHE of COLLATERALIZED LOAN OBLIGATION (CLO). The equity tranche stands as the FIRST LOSS PIECE in the SECURITIZATION, and is entitled to a portion of CASH FLOWS once the senior and subordinated tranches have received their payouts.",palgrave,0,43.22,12.1,0,13.23,13.7,11.08,13.25,14.98
CLONE FUND,A MUTUAL FUND or UNIT TRUST that attempts to replicate an existing fund through the use of DERIVATIVES rather than actualSECURITIES.,palgrave,0,41.7,12.7,0,13.4,14.2,10.69,14.5,16.02
CLOSE COMPANY,"A company that is under the control of a small number of DIRECTORS or participants or where the participants would receive more than 50% of ASSETS in the event of LIQUIDATION. Close companies may be subject to different TAX rules. See also CLOSELY HELD COMPANY, PRIVATE COMPANY.",palgrave,0,55.54,9.4,13,10.44,9.7,8.11,10.83333333,9.68
CLOSE-OUT,"The process of establishing an equal and opposite DERIVATIVE or ASSET position in order to neutralize or offset the RISK of an existing position. Although the close-out cancels the effects of risk, it grosses up the NOTIONAL amount of the contracts, which remain outstanding until final MATURITY.",palgrave,0,39.16,13.6,0,13.23,15.4,11.19,16.75,17.06
CLOSE-OUT NETTING,"A contractual agreement where an institution and a COUNTERPARTY in DEFAULT agree to ACCELERATION, termination, and NETTING of all financial transactions. See also PAYMENT NETTING, SET-OFF.",palgrave,0,24.44,13.1,0,16.86,14.6,10.35,9,15.97
CLOSED ECONOMY,"An economy that is isolated and self-contained, engaging in no TRADE or commercial dealings with other economies.",palgrave,0,45.76,11.1,0,14.5,14,10.98,13.5,16.21
CLOSELY HELD COMPANY,"A company where no more than five indi- viduals hold the controlling SHARES in the company; the SHAREHOLDERS may also be the primary managers. All closely held companies are PRIVATE COMPANIES, though not all private companies need be closely held.",palgrave,0,51.18,11.1,0,12.18,13.1,8.58,14.5,13
CLOSING BALANCE,The final balance held on a ledger account after taking account of all DEBITS and CREDITS occurring during the reporting period; the balance is carried forward to the next reporting period.,palgrave,0,31.55,16.6,0,12.66,18.2,9.76,20.5,16.27
CLOSING BELL,"A signal marking the official close of the trading day on an EXCHANGE, typically announced via the ringing of an electronic bell. While the closing bell marks the end of official trading on an exchange, activ- ity can still continue through AFTER HOURS TRADING.",palgrave,0,57.61,10.7,0,10.79,12.9,10.11,13.5,12.44
CLOSING PRICE,"The final price posted for a traded ASSET (e.g., STOCK, BOND, COMMODITY) at the end of trading day.",palgrave,0,70.13,8,0,6.26,9,12.42,9,9.42
CLUB DEAL,"A form of SYNDICATED LOAN that is jointly entered into by a small group of BANKS as a way of sharing the RISKS, CAPITAL INVESTMENT, and REVENUES; the club deal, which is managed by the ARRANGER, is generally used for smaller loan deals. Club deals can also apply to financings of LEVERAGED BUYOUTS, where PRIVATE EQUITY firms may join with banks in supplying funds.",palgrave,0,47.46,14.6,0,9.93,16.8,10.65,19.5,16.55
CMBS,See COMMERCIAL MORTGAGE-BACKED SECURITY.,palgrave,0,-34.11,19,0,27.55,24.1,19.62,4,21.6
CME,See CHICAGO MERCANTILE EXCHANGE.,palgrave,0,33.58,9.6,0,17.4,14.7,11.73,2,11.6
CMS,See CONSTANT MATURITY SWAP.,palgrave,0,33.58,9.6,0,10.15,8.8,15.68,2,11.6
CMT,See CONSTANT MATURITY TREASURY.,palgrave,0,8.2,13.1,0,15.95,13.5,15.68,2,11.6
COAT-TAILING,"The practice of replicating the INVESTMENT strategies of INSTITUTIONAL INVESTORS who are known, or believed, to have exhibited good performance. Also known as PIGGYBACKING. See also TAILGATING.",palgrave,0,36.96,10.3,11.9,15.74,12.2,10.52,5.833333333,13.97
COD (CASH ON DELIVERY),See DELIVERY VERSUS PAYMENT.,palgrave,0,33.58,9.6,0,11.6,10,11.73,2,11.6
COEFFICIENT OF DETERMINATION,"A statistical measure that indicates the proportion of variability in a set of data observations that are accountedfor by a given model, or the degree to which an observation varies from its BENCHMARK. The coefficient is measured on a scale of 0.0 to 1.0, with a result migrating toward 1.0 indicating a greater level of explanation. Also known as R-SQUARED.",palgrave,0,42.72,12.3,14.1,10.73,12,10.94,13.66666667,15.33
COINSURANCE,"A feature of an INSURANCE CONTRACT that results in a sharing of losses between the INSURED and INSURER on a predetermined basis once any DEDUCTIBLE has been met. The insurer’s total obligation under an insurance contract with a coinsurance feature is generally computed via:where L is the amount of the loss, Ins is the amount of insurance carried, V is the value of the insured property, and Co is the coinsurance clause percentage.Indemnification can never exceed the amount dictated by the coinsurance relationship, the POLICY CAP, or the amount of the actual loss.",palgrave,0,15.82,22.6,0,12.72,25.9,11.38,32.25,25.05
COLD CALLING,"A practice, used by BROKERS, of making unsolicited sales or marketing calls to gain new INVESTOR clients. Such calls are made without specific leads or targets, and may involve sourcing names from elec- tronic directories.",palgrave,0,62.17,8.9,0,12.58,12.6,12.17,10.75,11.57
COLLAR,"A SPREAD consisting of a LONG CALL OPTION and a SHORT PUT OPTION, or long put and short call, with the same EXPIRY DATE. The LONG POSITION (which requires payment of PREMIUM) is intended to provide RISK protection or speculative opportunity, while the SHORT POSITION (which results in receipt of premium) helps defray, and in some cases eliminate, the cost of the long option.Payoff profile of long collarAlso known as FENCE, RANGE FORWARD. See also ZERO COST COLLAR.",palgrave,0,45.09,13.4,14.6,10.97,15.1,9.58,17,15.02
COLLATERAL,"ASSETS, such as cash, SECURITIES, ACCOUNTS RECEIVABLE, INVENTORY, LETTERS OF CREDIT, or physical property, taken to secure a CREDIT RISK exposure. By taking collateral, the CREDITOR has an additional source of repayment should its COUNTERPARTY be unable to perform on its obligations. See also SECURITY.",palgrave,0,22.41,13.9,15,14.09,13.2,12.1,11.83333333,17.56
COLLATERAL RISK,"The RISK of loss arising from errors in the nature, quan- tity, pricing, or characteristics of COLLATERAL securing a transaction with CREDIT RISK. Institutions that actively accept and deliver collateral and are unable to manage the process accurately are susceptible to loss. A subcategory of OPERATIONAL RISK.",palgrave,0,30.16,13,14.6,14.27,13,11.81,11.83333333,15.64
COLLATERAL TRUST BOND,"A BOND secured by a PORTFOLIO of ASSETS owned by the ISSUER. Unlike a PASS-THROUGH SECURITY, the issuer retains sole ownership interest in the assets, which remain on the corporate BALANCE SHEET. See also MORTGAGE-BACKED BOND.COMPANION BOND, INTEREST-ONLY STRIP, PLANNED AMORTIZATION CLASS BOND, PRINCIPAL-ONLY STRIP, TARGETED AMORTIZATION CLASS BOND.",palgrave,0,38.01,12,14.6,16.64,15.8,10.89,12.16666667,13.87
COLLECTING BANK,"(1) A BANK which is presented with an order for pay- ment (e.g., a CHECK). (2) In TRADE CREDIT, a bank collecting payment from a buyer in exchange for a BILL OF LADING; the bank then forwards the pay- ment to the seller’s bank. (1) Also known as REMITTING BANK. (1,2) See alsoPAYOR BANK.",palgrave,0,42.05,20.8,0,6.4,26,10.41,31,24.56
COLLECTION POLICY,"The procedures established by a company that offers TRADE CREDIT to its customers, delineating the specific actions to be taken if a customer account has become delinquent. Such actions tend to increase in terms of escalation, often culminating in the transfer of delinquent ACCOUNTS RECEIVABLE to a collection agency.",palgrave,0,29.69,15.2,0,14.51,16.8,10.97,16.75,16.33
COLLUSION,"A practice where parties act in concert, but without any formal agreement, to set or fix prices on a good, service, or ASSET. Collusion is consid- ered illegal in many national systems, as it reflects anticompetitive behavior. See also CARTEL.",palgrave,0,49.52,9.7,10.5,10.14,9.3,11.01,7.333333333,10.32
COMBINED RATIO,"A measure of an INSURER’s profitability that compares earned PREMIUMS to losses from expenses and CLAIMS. The combined ratio is a summation of the LOSS RATIO and the EXPENSE RATIO, and is given as:where L is the loss (from claims), LAE is LOSS ADJUSTMENT EXPENSE, IE is incurred expense (e.g., from UNDERWRITING activities), and Pr is premium.If the ratio is greater than 100 the INSURANCE underwriting business is unprofitable, if it is less than 100 it is profitable.",palgrave,0,31.89,18.5,0,11.27,21.8,11.24,25.5,21.24
COMFORT LETTER,"A letter issued by a PARENT company to a BANK or other financial institution extending CREDIT indicating that it is aware of the factthat its SUBSIDIARY or AFFILIATE is seeking funds. The comfort letter does not serve as a legal GUARANTEE, suggesting that the bank has no RECOURSE to the parent should the subsidiary or affiliate DEFAULT. Also known as LETTER OF COMFORT.",palgrave,0,50.16,11.5,13,10.79,12.1,8.94,13.5,12.84
COMMAND ECONOMY,"An economic system where the government owns and operates the primary means of production and distribution, and controls the allocation of resources and the establishment of prices. The central plan- ning and management characteristic of the command economy discourage competition. Also known as PLANNED ECONOMY. See also FREE MARKET ECONOMY.",palgrave,0,33.41,11.7,14.2,15.12,12.4,10.89,9,14.6
COMMERCIAL BILL,"See BILL OF EXCHANGE.COMMERCIAL UMBRELLA POLICY, MULTILINE POLICY, MULTIPLE PERIL POLICY.",palgrave,0,-15.84,18.2,0,21.09,17.9,11.36,12.5,18.95
COMMERCIAL LINES,"The general category of INSURANCE coverage for business organizations (rather than individuals), including institutionally focused policies such as the COMMERCIAL GENERAL LIABILITY POLICY, COMMERCIAL UMBRELLA POLICY, and MULTILINE POLICY.",palgrave,0,-42.57,26.4,0,24.09,27.2,12.15,31.5,26.77
COMMERCIAL LOAN,"A LOAN arranged and extended by a BANK or FINAN- CIAL INSTITUTION to a BORROWER. The loan may have a fixed or floating INTEREST RATE and PRINCIPAL repayment that amortizes according to a set schedule or which is in the form of a BALLOON LOAN or BULLET LOAN. The loan may be unsecured, or secured on a borrower’s ASSETS.",palgrave,0,59.94,9.8,13,7.89,9.2,9.43,12.83333333,13.98
COMMERCIAL MORTGAGE,"A MORTGAGE that is granted to support the financing of a commercial property, such as an office building, industrial com- plex, retail center, hotel, or multifamily housing complex. A typical commer- cial mortgage is structured as a NONRECOURSE BALLOON LOAN with a 5 to 10 year MATURITY, though INTEREST-only options and longer maturities can also be arranged. PREPAYMENT of a commercial mortgage is unusual as a result of defined lockout periods as well as significant prepayment penalties.",palgrave,0,28.47,15.7,16.3,13.35,16.8,11.88,18.16666667,17.55
COMMERCIAL REAL ESTATE BOND,A NONRECOURSE BOND that is secured by a specific commercial property or PORTFOLIO of properties. The bond may have a fixed or floating COUPON and a MATURITY that is medium- to long-term.,palgrave,0,55.24,9.5,0,9.8,9.4,10.84,11.5,15.15
COMMISSION,(1) A fee paid by a client to a BROKER for services rendered in arranging the EXECUTION of a TRADE. (2) A fee levied on the sale or purchase of real estate. (1) Also known as BROKERAGE.,palgrave,0,50.84,15.4,0,5.24,16.1,11.02,21.5,18.04
COMMITMENT FEE,"An upfront or annual fee a BANK charges a customer for providing COMMITTED FUNDING or a REVOLVING CREDIT FACILITY. Payment of the commitment fee ensures the facility will not be withdrawn prior to its stated MATURITY and the BORROWER will have access to the funds when needed, presuming no COVENANTS have been breached. Also known as FACILITY FEE.",palgrave,0,43.43,12,14.1,11.31,11.8,10.86,13.33333333,13.93
COMMITTED FACILITY,See COMMITTED FUNDING.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
COMMITTED LINE,See COMMITTED FUNDING.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
(CUSIP),"A 9-digit SECURITY identification code assigned by Standard and Poor’s to US and Canadian BONDS and STOCKS. The first 6 digits iden- tify the ISSUER, the next 2 digits identify the type of security issued, and the final digit serves as a check. See also CUSIP INTERNATIONAL NUMBER, INTERNATIONAL SECURITIES IDENTIFICATION NUMBER, STOCK EXCHANGE DAILY OFFICIAL LIST.",palgrave,0,35.27,13.1,13.6,13.23,13.6,11.78,12.83333333,12.51
COMMODITY,"A nonfinancial good representing an input or raw material for production or consumption. A commodity can be bought or sold in the  MARKETS in cash or DERIVATIVE form, and can be divided into various sectors, including:Precious Metals: Gold, Silver, Platinum, Palladium, Iridium, Osmium, Rhodium, RutheniumIndustrial Metals: Aluminum, Chrome, Copper, Lead, Mercury, Nickel, Selenium, Tin, Titanium, ZincEnergy: Crude oil, Gas oil, Heating oil, Unleaded gasoline, Natural gas, CoalLivestock: Feeder cattle, Live cattle, Live hogs, Pork belliesSOFTS: Coffee, Cocoa, Cotton, Orange Juice, Rubber, Sugar, Silk, Timber, WoolGRAINS: Beans, Barley, Canola, Corn, Millet, Oats, Oilseed, Rice, Rye, Sorghum, Soybeans, Soybean meal, Wheat",palgrave,0,-4.16,26.1,0,17.25,33.2,13.27,34.75,27.88
COMMODITY BROKER,"A BROKER that deals exclusively with clients in the COMMODITY markets, often specializing in a specific segment of the market (e.g., SOFTS, energy complex, metals complex). Commodity brokers are per- mitted to disclose their PRINCIPALS in certain markets, but not in all markets. See also FOREIGN EXCHANGE BROKER, INTER-DEALER BROKER.",palgrave,0,37.6,12.2,12.5,13.74,13.8,11.73,11,11.48
COMMODITY FUTURE,"A FUTURES contract, bought or sold via an EXCHANGE, which references a nonfinancial physical commodity such as chemicals, energy, base and precious metals, livestock, GRAINS, and SOFTS. See also COMMODITY DERIVATIVE, CURRENCY FUTURE, INDEX FUTURE, INTEREST RATE FUTURE.",palgrave,0,26.81,14.2,0,16.3,16.8,12.47,14.5,17.07
COMMODITY OPTION,"An EXCHANGE-TRADED or OVER-THE-COUNTER OPTION involving a COMMODITY. VANILLA and COMPLEX OPTIONS can be bought and sold on a variety of commodities, and may be contracted for PHYSICAL SETTLEMENT or CASH SETTLEMENT. See also CURRENCY OPTION, EQUITY OPTION, INDEX OPTION, INTEREST RATE OPTION.",palgrave,0,31.58,12.4,15,14.38,13,9.85,11.5,14.09
COMMODITY POOL,"A pool of INVESTMENT CAPITAL, similar to a MUTUAL FUND or UNIT TRUST, that is invested by professional money managers solely in COMMODITY FUTURES and OPTIONS.",palgrave,0,28.17,15.8,0,12.02,15.7,12.21,20,19.63
COMMODITY RISK,The RISK of loss due to an adverse move in the direction of COMMODITY prices. Commodity risk is a form of DIRECTIONAL RISK.,palgrave,0,68.26,6.6,0,6.48,5,7.64,6.75,8.08
COMMODITY SWAP,"An OVER-THE-COUNTER SWAP transaction involving the exchange of fixed and floating COMMODITY price references. Commodity swaps can be written on virtually any physical commodity (e.g., chemicals, energy, base and precious metals, livestock, GRAINS, and SOFTS) and can be structured to settle in cash or physical terms. See also COMMODITY DERIVATIVE.",palgrave,0,29.14,13.3,15.5,15.37,15.1,11.41,13,13.88
COMMON MARKET,See EUROPEAN ECONOMIC COMMUNITY.,palgrave,0,-34.11,19,0,17.4,14.7,15.68,4,31.6
COMMON SHARES,"In the United Kingdom, COMMON STOCK.",palgrave,0,73.85,4.5,0,7.18,5.9,6.57,2,2.4
COMPANION BOND,"A TRANCHE of a COLLATERALIZED MORTGAGE OBLIGATION that accompanies PLANNED AMORTIZATION CLASS (PAC) BONDS and TARGETED AMORTIZATION CLASS (TAC) BONDS. The compan- ion serves to absorb PREPAYMENT RISK, giving PACs and TACs greater CASH FLOW, and thus price stability. Also known as SUPPORT BOND.",palgrave,0,56.55,9,12.5,13.91,12.8,12.98,9,12.24
COMPANY FORMATION,"In the United Kingdom, the process of forming a company, which includes sending required information to the Registrar of Companies , indicating compliance with the provisions of the Companies Act, and providing the actual ARTICLES OF ASSOCIATION and MEMORANDUM OF ASSOCIATION.",palgrave,0,-11.43,24.8,0,16.84,26.4,11.94,34.5,27
COMPANY LIMITED BY GUARANTEE,"In the United Kingdom, a company that does not issue SHARES and whose LIABILITIES are limited to the amounts noted in the MEMORANDUM OF ASSOCIATION. See also COMPANY LIMITED BY SHARES.",palgrave,0,38.82,11.7,0,10.67,9.7,8.48,11.25,11.36
COMPANY LIMITED BY SHARES,"In the United Kingdom, a company that issues SHARES and whose LIABILITIES are limited to the value of the shares, as noted in the MEMORANDUM OF ASSOCIATION. See also COMPANY LIMITED BY GUARANTEE.",palgrave,0,37.81,12.1,0,10.38,10.1,8.28,12.25,12.66
COMPENSATING BALANCE,A non-interest-bearing DEMAND DEPOSIT placed by a customer with a BANK to compensate for LOANS or other services granted.,palgrave,0,43.73,11.9,0,13.23,13.6,12.06,11.5,11.81
COMPETITION COMMISSION (CC),"In the United Kingdom, a body estab- lished in 1998 that ensures antiMONOPOLY and free competition rules are upheld, particularly as related to MERGERS and ACQUISITIONS. The work of the Commission is nonbinding and must be referred to the Office of Fair Trading for enforcement. The CC replaced the original Monopolies and Mergers Commission and Restrictive Practices Court.",palgrave,0,43.43,12,14.6,13.81,14,10.86,13.66666667,15.31
COMPETITIVE BID,"A BID submitted in an AUCTION MARKET process that is placed in direct competition with other bids, meaning it will only be filled if it ranks at, or near, the highest price/lowest YIELD. See also NON.",palgrave,0,70.13,8,0,8.06,9.1,10.23,9,9.42
COMPETITIVE BID UNDERWRITING,"An UNDERWRITING of a NEW ISSUE of SECURITIES that is awarded by the issuing company to the UNDERWRITER that proposes the most favorable terms (generally a combination of lowest YIELD, low- est fees, broadest distribution, and strongest research and SECONDARY TRADING support). See also BEAUTY CONTEST, NEGOTIATED UNDERWRITING.",palgrave,0,21.74,16.2,0,15.67,17.9,12.72,18,17.93
COMPETITIVE TENDER,"A general process where a company acquires goods or services by extending to suppliers an invitation to tender a proposal. In gen- eral, the tender with the lowest price wins the order, although quality, ship- ping, timeliness, and efficiency may also be factors.",palgrave,0,41.19,12.9,0,11.31,13.5,11.31,15.25,15.11
COMPLETION BOND,"A GUARANTEE provided by an INSURER to a BANK, which is financing a project, that the bank will be repaid even if the project fails to be completed. See also PERFORMANCE BOND, SURETY BOND.",palgrave,0,71.14,7.6,0,7.83,8.4,9.59,11.5,13.86
COMPLETION RISK,"In PROJECT FINANCE, the RISK that a project will not be completed as scheduled, leading to difficulties in servicing contracted DEBT.",palgrave,0,50.16,11.5,0,13.11,14.4,12.2,14.5,16.02
COMPLEX CHOOSER OPTION,An OVER-THE-COUNTER COMPLEX OPTION that permits the buyer to choose between an underlying CALL OPTION (with a certain STRIKE PRICE and MATURITY) and an underlying PUT OPTION (with a different strike and maturity) between trade date and choice date. See also CHOOSER OPTION.,palgrave,0,41.19,12.9,0,12.82,14.6,7.64,13.75,10.46
COMPLEX OPTION,"A conventional OPTION that is modified with respect to time, price, and/or payoff to produce unique RISK MANAGEMENT, INVESTMENT, or speculative results. Certain complex options have riskypayoffs/LIABILITIES and demand considerable technical resources to ensure proper pricing and management. Also known as EXOTIC OPTION. See alsoCOMPLEX STRUCTURED PRODUCT, COMPLEX SWAP, PATH-DEPENDENT OPTION, PATH-INDEPENDENT OPTION.",palgrave,0,15.68,14.4,13.4,20.23,17.7,12.94,8.875,15.13
COMPLEX SWAP,"An OVER-THE-COUNTER SWAP that is modified with respect to time, price, NOTIONAL PRINCIPAL, and/or payoff to produce unique RISK MANAGEMENT, INVESTMENT, or speculative results. Certain complex swaps have risky payoffs/LIABILITIES and demand considerable technical resources to ensure proper pricing and management. Also known as EXOTIC SWAP. See also COMPLEX OPTION, COMPLEX STRUCTURED PRODUCT.",palgrave,0,32.6,12,13,17.62,15.5,12.64,8.625,12.87
COMPLIANCE,The processes used by BANKS and other FINANCIAL INSTI- TUTIONS to ensure adherence to the legal and regulatory rules governing their business.,palgrave,0,32.22,14.2,0,14.1,15.5,12.62,16,17.89
COMPOSITE PEG,A MANAGED FOREIGN EXCHANGE RATE policy where a country’s CENTRAL BANK or monetary authority pegs the value of its CUR- RENCY to a basket of several other currencies. See also SINGLE PEG.,palgrave,0,46.78,10.7,0,9.97,9.4,9.86,10.5,11.4
COMPOUND OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to EXERCISE into a second underlying option. Compound options are available in four forms, including a CALL ON A CALL (the right to buyan underlying CALL OPTION), a CALL ON A PUT (the right to buy an underlying PUT OPTION), a PUT ON A CALL (the right to sell an underlying call), and a PUT ON PUT (the right to sell an underlying put). Also known as NESTED OPTION.",palgrave,0,53.85,12.1,12.5,7.72,12.5,7.58,15.5,11.84
COMPOUNDING,"The process of adding periodic INTEREST to an interest- bearing ASSET or LIABILITY, increasing the FUTURE VALUE to the INVESTOR or CREDITOR and LIABILITY to the BORROWER. Compounding can be com- puted in simple or complex form via the following:Simple compounding:FV = PV (1 + (t r))Annual compounding:FV = PV (1 + r)tAnnual compounding, n times per year:FV = PV (1 + (r/n))tnContinuous compounding:FV = PV ertwhere PV is the PRESENT VALUE of the sum invested or borrowed, r is the DISCOUNT RATE, t is the time to maturity, n is the number of compounding periods per year, and e is the exponential constant.",palgrave,0,5.33,24.6,0,11.8,27.3,12.23,35.5,25.17
COMPS,"Abbreviation for “comparables”: (1) A retailer’s comparable same-store sales, allowing period-on–period comparison of expansion or con- traction. (2) Proxy companies that can be used to provide additional pricing information for an INITIAL PUBLIC OFFERING of a new company’s STOCK issue.",palgrave,0,-11.43,24.8,0,17.71,27.8,14.7,33,29
COMPTROLLER,See CONTROLLER.,palgrave,0,77.91,2.9,0,7.1,12.5,11.63,0,0.8
COMPULSORY LIQUIDATION,"In the United Kingdom, a process where the courts require the LIQUIDATION of a company, either through the official RECEIVER who acts in a temporary capacity, or through a court-appointed pro- visional LIQUIDATOR. See also CREDITORS’ VOLUNTARY LIQUIDATION.",palgrave,0,26.81,14.2,0,15.08,15.2,10.4,15.5,18.13
CONCENTRATION RISK,The RISK of loss arising from a large position in a single ASSET or market exposure. An excessive concentration can give rise to LIQUIDITY RISK or MARKET RISK losses.,palgrave,0,56.76,8.9,0,9.33,8.2,9.26,8.75,12.7
CONCERT PARTY,"A group of SPECULATORS who band together to quietly acquire COMMON STOCK in a company, either to deflect attention prior to a public TAKEOVER offer (legal) or to avoid disclosure rules (which may be illegal).",palgrave,0,27.49,18.1,0,11.15,19.5,10.79,24.5,18.57
CONCURRENCY,The process of ensuring that the terms and conditions of multiple REINSURANCE CONTRACTS are synchronized so that no gaps or overlaps in RISK coverage exist.Payoff profile of long condorPayoff profile of short condorSee also BUTTERFLY SPREAD.,palgrave,0,26.48,18.5,0,16.2,23.5,12.88,27,22.18
CONFIRMATION,"A paper document or electronic slate that confirms all necessary details regarding a TRADE between two parties. The confirmation, which contains pertinent information related to trade size, price, reference ASSET/INDEX, CASH FLOWS, PREMIUM, fees, and SETTLEMENT, can be cre- ated in a manner that makes it legally binding on both parties.",palgrave,0,37.13,14.4,0,14.39,17.9,12.33,18.25,18.04
CONFIRMED LINE,See ADVISED LINE.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
CONSEIL D’ADMINISTRATION,The EXECUTIVE BOARD of a French company that uses the DUAL BOARD SYSTEM. See also CONSEIL DU SURVEILLANCE.,palgrave,0,53.88,8,0,8.96,6.3,10.22,5,8.04
CONSEIL DU SURVEILLANCE,The SUPERVISORY BOARD of a French company that uses the DUAL BOARD SYSTEM. See also CONSEIL D’ADMINISTRATION.,palgrave,0,37.47,10.1,0,11.68,8.6,9.63,4.75,8.11
CONSENSUS EARNINGS,An average of EARNINGS forecasts developed by financial analysts that follow the STOCK of a particular company. See alsoEARNINGS SURPRISE.,palgrave,0,27.49,11.9,0,15.17,11.6,10.45,7.5,16
CONSOB,See COMMISSIONE NAZIONALE PER LA SOCIETA E LA BORSA.,palgrave,0,62.34,6.8,0,8.67,6.1,16.36,5.5,12.49
CONSOL,"In the United Kingdom, abbreviated form of Consolidated Fund Annuities, representing PERPETUAL DEBT issued by the government as part of its GILT program. Consols, which form part of the government’s TAX REVENUE account at the BANK OF ENGLAND, are redeemable at PAR VALUE at the government’s discretion, but in practice are never redeemed. See alsoIRREDEEMABLE SECURITY.",palgrave,0,35.57,12.9,14.1,14.39,14.3,10.49,13,13.91
CONSOLIDATED ACCOUNTS,See CONSOLIDATED FINANCIAL STATEMENTS.,palgrave,0,-34.11,19,0,26.1,21.8,15.68,3,21.6
CONSOLIDATED DISPLAY,"In ELECTRONIC TRADING, the minimum infor- mation that must be displayed according to REGULATION, including prices, quantities, and tickers of the NATIONAL BEST BID AND OFFER of a given SECURITY, along with consolidated information on last sales.",palgrave,0,8.54,21.3,0,14.98,23.7,12.73,28.5,25.61
CONSOLIDATION,"(1) A form of MERGER where two companies combine to form an entirely new company. (2) An ACCOUNTING process where the FINANCIAL STATEMENTS of group companies and SUBSIDIARIES are com- bined into a single set of ACCOUNTS that reflects the entire financial standing of the group. For any subsidiary that is not fully owned, the relevant percent- age that is not owned must be adjusted as a MINORITY INTEREST. (1) See also ACQUISITION. (2) Also known as FULL .",palgrave,0,40.35,17.3,0,10.28,21,10.63,25.75,20.22
CONSORTIUM UNDERWRITING,An UNDERWRITING process in the INSURANCE market where a group of LLOYD’S OF LONDON underwriting SYNDICATES write business on behalf of other syndicates.,palgrave,0,31.21,14.6,0,15.55,16.7,9.58,16.5,14.42
CONSTRUCTIVE TOTAL LOSS,"In INSURANCE, damage to property or ASSETS that is so significant that the cost of restoration is determined to be greater than the value of the restoration.",palgrave,0,52.53,12.6,0,10.74,14.9,9.07,17.5,16.73
CONSUMER PRICE INDEX (CPI),"An INFLATION measure used in the United States, Mexico, and other countries, based on the retail prices of a weighted index basket of market goods and services, including transportation, housing, health, and food. CPI is used as a reference in certain INFLATION- LINKED SECURITIES and INFLATION SWAPS. See also HARMONIZED INDEX OF CONSUMER PRICES, PRODUCER PRICE INDEX, RETAIL PRICE INDEX.",palgrave,0,42.72,12.3,13.6,13.34,14.5,9.89,13.33333333,13.33
CONTANGO,A market state where FUTURES prices are higher than expected SPOT prices and decline as EXPIRY of the CONTRACT approaches. Also known as FORWARDATION. See also NORMAL BACKWARDATION.,palgrave,0,53.58,8.1,9.7,12.21,9.1,10.3,5,9.43
CONTINGENCY LOAN,"A LINE OF CREDIT that a company arranges in advance of a loss and invokes when one or more TRIGGER events occur; unlike a traditional BANK line of CREDIT, the contingency loan can only be drawn to cover losses arising from a defined event. See also CONTINGENT CAPITAL.",palgrave,0,55.58,11.5,0,9.23,12.2,10.09,14.5,12.1
CONTINGENCY RESERVE,"A RESERVE, established by INSURERS as a per- centage of total retained surplus, which is used to cover unexpected losses and any shortfall in a previously declared DIVIDEND.",palgrave,0,26.14,16.6,0,12.42,17.1,12.92,20,19.77
CONTINGENT CAPITAL,"A contractually agreed PRE-LOSS FINANCING facility that a company accesses in the aftermath of a loss event. Funding may take the form of CONTINGENT DEBT (i.e., COMMITTED CAPITAL FACILITIES, CONTINGENCY LOANS, CONTINGENT SURPLUS NOTES), or CONTINGENT EQUITY (e.g., PUT PROTECTED EQUITY, CATASTROPHE EQUITY PUT).",palgrave,0,15.31,16.6,0,15.78,18.3,12.62,20,19.71
CONTINGENT CLAIM,"(1) A financial CONTRACT or ASSET whose value is dependent on other assets or INDEXES, e.g., a DERIVATIVE. (2) A claim in BANKRUPTCY that may become a DEBT based on the occurrence of a future event.",palgrave,0,34.94,17.3,0,7.96,17.9,13.32,24,21.07
CONTINGENT DEBT,"A class of DEBT FINANCING that becomes effective once a defined TRIGGER has been breached; the class includes COMMITTED CAPITAL FACILITIES, CONTINGENT SURPLUS NOTES, CONTINGENCY LOANS, and FINANCIAL GUARANTEES. See also CONTINGENT CAPITAL.",palgrave,0,29.35,13.3,0,17.75,16.4,12.59,13.75,16.3
CONTINGENT EQUITY,A class of EQUITY FINANCING that becomes effect- ive once a defined TRIGGER has been breached; the class includes LOSS EQUITY PUTS and PUT PROTECTED EQUITY. See also CONTINGENT CAPITAL.,palgrave,0,47.79,10.3,0,11.53,10.6,10.7,11,11.33
CONTINGENT LIABILITY,"(1) The LIABILITY of an institution that assumes the role of a GUARANTOR or endorser under a LETTER OF CREDIT,GUARANTEE, or SURETY BOND. (2) ACCOUNTING and RISK classification of an undrawn REVOLVING CREDIT FACILITY granted by a BANK to a borrower.(1) See also CONTINGENT CREDIT RISK.",palgrave,0,7.87,23.6,0,12.38,26.1,13.13,34,27.97
CONTINGENT SURPLUS NOTES,A form of PRE-LOSS FINANCING where an INSURER or REINSURER issues NOTES to INVESTORS via a TRUST if a pre- defined loss-making TRIGGER event occurs. The issuance provides funding to compensate for losses sustained. See also CONTINGENT CAPITAL.,palgrave,0,50.12,9.4,11.9,12.34,10.4,12.16,7.666666667,10.34
CONTINGENT TRIGGER,"A COVENANT in a CREDIT agreement requiring a BORROWER to undertake certain actions (such as repaying DEBT, selling ASSETS, issuing COMMON STOCK) in the event a predefined TRIGGER event occurs. Common triggers include a CREDIT RATING downgrade or breach of a financial ratio, often those related to LIQUIDITY, LEVERAGE, or INTEREST COVERAGE.",palgrave,0,28.17,15.8,0,14.22,17.8,13.73,18.5,18.86
CONTINGENTS TO ASSETS,"A measure of a company’s off BALANCE SHEET financial LEVERAGE, or the degree to which contingent LIABILITIES feature in overall operations. It is computed as:where Con is the company’s contingent liabilities, TA is the company’s totalASSETS.The higher the ratio, the greater the company’s financial leverage.",palgrave,0,14.8,16.8,0,16.13,17.5,10.72,17.75,15.22
CONTINUOUS COMPOUNDING,"The process of COMPOUNDING the INTEREST on a DEPOSIT on an instantaneous, rather than periodic, basis. The general factor for continuous compounding for a 1-year period is derived from the base of the natural logarithm e, and is given as er where r is the ANNUAL PERCENTAGE RATE. See also CONTINUOUS DISCOUNTING, FUTURE VALUE.",palgrave,0,44.75,11.5,15.5,10.9,11.4,10.38,13.66666667,15.35
CONTINUOUS DISCOUNTING,"The process of DISCOUNTING a CASH FLOW on an instantaneous, rather than periodic, basis. The general factor for continuous discounting for a 1-year period is derived from the base of the nat- ural logarithm e, and is given as e-r where r is the COST OF CAPITAL. See alsoCONTINUOUS COMPOUNDING, PRESENT VALUE.",palgrave,0,53.92,10,14.1,9.97,10.5,9.66,12.33333333,13.07
CONTRA-ACCOUNT,"An account in a dual entry ACCOUNTING system that offsets or reverses the value of another account. Common contra-accounts include ACCUMULATED DEPRECATION as a contra-account to fixed,depreciable ASSETS, LOAN LOSS RESERVES as a contra-account to LOANS, and TREASURY STOCK as a contra-account to EQUITY.",palgrave,0,23.77,15.4,0,15.66,17.3,11.55,16.5,14.25
CONTRA-LIQUIDITY,"The opposing side of a TRADE, generally used in the con- text of BLOCK TRADES. ALGORITHMS and SMART ORDER ROUTERS handling an ORDER attempt to detect contra-liquidity in DARK POOLS and on EXCHANGES in order to try to get the best EXECUTION price and the quickest fill.",palgrave,0,56.08,11.3,0,9.81,12.6,10.18,14.25,13.66
CONTRA-TRADING,"The practice of buying and selling SHARES within the same SETTLEMENT period so that no payment need be made. Contra-trading is typically found in DAY TRADING, where a SPECULATOR purchases shares during the day and closes out the position before the close of business; since both transactions settle on the same day (e.g., T + 3), the speculator has no gross cash outflow.",palgrave,0,40.01,15.4,0,11.09,17.5,10.27,20.25,16.27
CONTRACT,"A legal agreement between two parties that specifies actions, duties, and payments. A contract is only enforceable if it is based on legal activ- ities and involves the exchange of consideration (i.e., each party to the contract provides some value). See also MISREPRESENTATION.",palgrave,0,48.5,10,9.7,12.46,11.6,10.59,7.5,9.44
CONTRARIAN,"An INVESTOR with a view that runs contrary to popular market sentiment or belief. Contrarians may be willing to take RISK or provide LIQUIDITY when other parties cannot, or will not. See also BOTTOM FISHING.",palgrave,0,59.6,7.9,9.7,9.55,7.7,9.63,6.166666667,9.25
CONTROL PREMIUM,"The incremental value paid for a TARGET company in an ACQUISITION, reflecting the perceived benefits of being able to control management; in general this value is inversely proportional to the quality of management and its ability to maximize value.",palgrave,0,6.51,22,0,14.23,23.6,10.83,32.5,25.86
CONTROL STOCK,"(1) A special class of COMMON STOCK that carries enhanced voting rights, allowing its SHAREHOLDERS greater influence and control over operations. (2) A block of common stock held by a large share- holder, sufficient to permit influence and control over operations; the block need not necessarily be equal to 50% + 1 share, it may be some smaller amount. See also DUAL CLASS STOCK.",palgrave,0,47.96,14.4,0,11.21,18,10.21,20,16.41
CONTROLLER,A professional within a company that is responsible for finan- cial and ACCOUNTING matters. Also known as COMPTROLLER.,palgrave,0,36.96,10.3,0,12.5,9.5,11.1,6,12.49
CONVENIENCE YIELD,"The nonmonetary RETURN that is derived from hold- ing an ASSET, such as not facing a shortfall in the event of excess DEMAND. The existence of a convenience yield creates an incremental RETURN that is included in FORWARD PRICE computations related to FUTURES or FORWARDS.",palgrave,0,48.64,12.1,0,11.78,13.6,11.07,14.75,15.22
CONVERSION ARBITRAGE,"An ARBITRAGE strategy that takes advantage of mispricing of OPTIONS in relation to PUT-CALL PARITY. The strategy may involve the purchase of “undervalued” OPTIONS and the sale of SYNTHETIC OPTIONS, or the sale of “overvalued” options and the purchase of synthetics. A RISK-free profit can be generated if the undervalued/overvalued options are truly mispriced.Conversion arbitrage strategy",palgrave,0,27.11,14.1,16.3,16.59,16,9.92,14.66666667,16.05
CONVERSION FACTOR,"A multiplicative factor that is applied to a DELIVERABLE ASSET under an EXCHANGE-TRADED DERIVATIVE CONTRACT to determine the precise amount that needs to be delivered. Since different types and grades are often deliverable, the seller of the contract must use a conversion factor to make the appropriate adjustment. See also CHEAPEST-TO-DELIVER.",palgrave,0,37.3,12.3,14.6,15.19,14.3,10.67,12.5,13.86
CONVERSION PARITY,"The MARKET VALUE of the SHARES of COMMON STOCK into which a CONVERTIBLE BOND can be exchanged, generally com- puted as:Convpty = Convratio (S)where Convratio is the CONVERSION RATIO and S is the stock price. Also known as CONVERSION VALUE, PARITY. See also CONVERSION PREMIUM, CONVERSION PRICE, INVESTMENT VALUE.",palgrave,0,38.32,11.9,14.6,12.87,12.5,10.02,12.16666667,13.07
CONVERSION PREMIUM,"The additional amount an INVESTOR in a CONVERTIBLE BOND pays above CONVERSION PARITY to acquire the bond, generally expressed as a percentage of parity:(100%)⎠where PCB is the price of the convertible bond and Convpty is conversion par- ity. See also ADJUSTED BREAKEVEN, CONVERSION PRICE, CONVERSION RATIO, CONVERSION PARITY, EQUIVALENT BREAKEVEN, INVESTMENT PREMIUM, SIMPLE BREAKEVEN.",palgrave,0,27.15,16.2,0,17.18,21,11.41,22.5,18.95
CONVERSION PRICE,"The price at which an INVESTOR holding a CONVERTI- BLE BOND exchanges the bond for SHARES of COMMON STOCK, computed as:where ParCB is the PAR VALUE of the convertible bond and Convratio is the CONVERSION RATIO. See also CONVERSION PARITY, CONVERSION PREMIUM.",palgrave,0,50.16,11.5,0,11.84,13.4,11.07,15,15.07
CONVERSION RATIO,"The number of SHARES of STOCK an INVESTOR receives in converting the CONVERTIBLE BOND, computed via:where ParCB is the PAR VALUE of the convertible bond and Convprice is the initial CONVERSION PRICE. See also CONVERSION PARITY, CONVERSION PREMIUM.",palgrave,0,43.73,11.9,0,13.98,14.1,10.81,14,13.92
CONVERSION VALUE,See CONVERSION PARITY.,palgrave,0,9.21,12.7,0,11.15,11.5,14.31,2.5,27.87
CONVERTIBILITY RISK,The RISK of loss arising from an inability to convert local CURRENCY into a fully CONVERTIBLE CURRENCY and/or to repatri- ate convertible currency back to a home country as a result of EXCHANGE CONTROLS. A subcategory of SOVEREIGN RISK.,palgrave,0,34.76,13.3,0,11.55,12.2,9.46,13.75,12.93
CONVERTIBLE BOND ARBITRAGE,"A quantitative ARBITRAGE strategy where an INVESTOR or HEDGE FUND manager purchases a CONVERTIBLE BOND and simultaneously HEDGES or neutralizes the RISK on two of the three factors that influence the price of the convertible bond: STOCK PRICE, CREDIT SPREAD, and INTEREST RATE. The intent is to gain exposure to the remaining factor at a relatively inexpensive price.",palgrave,0,33.58,15.8,0,13.82,18.2,11.34,22,20.57
CONVERTIBLE CURRENCY,"A CURRENCY that can be freely exchanged into another currency for any purpose, without regulatory restrictions. Convertible currencies are generally associated with open and stable economies, and their prices are typically determined through SUPPLY and DEMAND forces in the FOREIGN EXCHANGE market. Also known as HARD CURRENCY. See alsoCONVERTIBILITY, EXOTIC CURRENCY, NONCONVERTIBLE CURRENCY, RESERVE CURRENCY.The standard convexity calculation for a fixed income SECURITY with semiannual COUPONS is given by:+where C is COUPON, t is the time to MATURITY, y is the semiannual yield, n is the number of semiannual periods, and M is the redemption value of the bond (generally PAR VALUE). Also known as OPTIONALITY. See also NEGATIVE CONVEXITY, NONLINEAR INSTRUMENT, POSITIVE CONVEXITY.",palgrave,0,18.35,15.4,16.9,15.78,15.8,10.95,19.5,16.02
COOKIE JAR ACCOUNTING,"The practice of liberally interpreting, or manipulating, ACCOUNTING rules in order to convey a stronger financial position. Smoothing income flows, reversing RESERVES, and capitalizing costs that should be expensed are forms of cookie jar accounting. Also known asCOOKING THE BOOKS.",palgrave,0,32.6,12,13.6,16.05,13.9,12.19,9,14.32
COOKING THE BOOKS,See COOKIE JAR ACCOUNTING.,palgrave,0,50.5,7.2,0,8.7,7.7,7.78,2,11.6
COOLING OFF PERIOD,"In the US markets, the period between the filing of a final PROSPECTUS and the offering of a NEW ISSUE of SECURITIES to INVESTORS in the public market. The cooling off period is typically 20 days.",palgrave,0,53.21,10.3,0,7.89,8.6,10.23,11.5,11.64
CORE INFLATION,"A measure of INFLATION at the consumer level, exclud- ing certain items such as food and oil. See also CONSUMER PRICE INDEX, HARMONIZED INDEX OF CONSUMER PRICES, RETAIL PRICE INDEX.",palgrave,0,64.71,8,0,10.37,9.9,9.12,7.5,8.67
CORNERING,"An attempt to gain sufficient market share in an ASSET or SECURITY in order to manipulate the price for gain. Cornering attempts, which are generally illegal, are usually unsuccessful unless the asset is very thinly traded.",palgrave,0,36.28,12.7,0,12.06,12.2,10.23,13,16.09
CORPORATE ACTIONS,"Events undertaken by CORPORATIONS that impact SHAREHOLDERS, including STOCK SPLITS, STOCK BUYBACKS, SPIN-OFFS, MERGERS, or ACQUISITIONS.",palgrave,0,21.4,14.3,0,23.78,22.2,15.29,13,18.9
CORPORATE CHARTER,An authorizing document issued by a government or legal authority that delineates the activities a CORPORATION is permitted to undertake. See also ARTICLES OF INCORPORATION.,palgrave,0,8.03,15.2,0,15.94,12.9,11.84,11.75,21
CORPORATE CONTROL MARKET,"The broad marketplace for transactions that are designed to change the ownership, structure, and/or control of a com- pany. Common corporate control transactions include MERGERS, friendly orHOSTILE TAKEOVERS, LEVERAGED BUYOUTS, MANAGEMENT BUYOUTS, and RECAPITALIZATIONS. In some national systems the corporate control market also serves as a monitoring mechanism for GOVERNANCE purposes.",palgrave,0,28.84,13.5,15,19.49,18.2,12.22,12.83333333,15.43
CORPORATE ETHICS,"The broad area dealing with the way in which a com- pany behaves toward, and conducts business with, its internal and external STAKEHOLDERS, including employees, INVESTORS, CREDITORS, custom- ers, and REGULATORS. In certain national systems minimum standards arerequired or recommended in order to eliminate potential conflicts of interest or client/employee mistreatment.",palgrave,0,20.21,16.8,0,18.28,21,13.88,20.25,21.96
CORPORATE FINANCE,"(1) The general class of financial transactions that a company may consider to alter its structure, operations, or busi- ness focus, including MERGER, ACQUISITION, DEMERGER, DIVESTITURE, RECAPITALIZATION, LEVERAGED BUYOUT, or MANAGEMENT BUYOUT. (2) General FINANCING activities carried out by a company through the CAPITAL MARKETS.",palgrave,0,-16.51,26.7,0,18.52,31.1,14.29,39.5,28.67
CORPORATE SUSTAINABILITY,"The concept and action of ensuring that a corporate organization exists in perpetuity, providing returns and benefits for multiple generations of internal and external STAKEHOLDERS. Sustainability generally demands close ties and cooperation with a broad constituency of INVESTORS, customers, CREDITORS, employees, and REGULATORS, as well as the surrounding community.",palgrave,0,-4.16,19.9,0,19.96,21.6,13.87,22.25,26.13
CORPORATION,"Any company that issues COMMON STOCK to INVESTORS in order to raise CAPITAL; a corporation may be public or private, and is gen- erally organized with LIMITED LIABILITY. See also JOINT STOCK COMPANY, LIMITED LIABILITY COMPANY, PUBLIC LIMITED COMPANY.",palgrave,0,17.84,15.6,0,13.23,13.9,9.06,16.25,12.93
CORPUS,The PRINCIPAL component of a BOND. See also COUPON.,palgrave,0,66.91,5,0,4.14,3.3,10.88,2.25,10.69
CORRECTION,"A temporary reversal of a SECURITY price or broader market sector lasting several days to several months; though the retracement is not as severe as it is in a BEAR MARKET, prices may ultimately fall by 20% from the previous peak. See also BEARISH, BULL MARKET.",palgrave,0,48.13,12.3,0,9.52,12.2,9.93,15.5,14.42
CORRELATED CREDIT RISK,"The RISK of loss arising from CREDIT EXPOSURE that increases precisely as a COUNTERPARTY’s ability to perform declines, or when COLLATERAL taken as SECURITY deteriorates in tandem with a counterparty’s ability to pay. A subcategory of CREDIT RISK. See alsoCONTINGENT CREDIT RISK, DIRECT CREDIT RISK, SETTLEMENT RISK, SOVEREIGN RISK, TRADING CREDIT RISK.",palgrave,0,20.08,14.8,15.5,15.19,14.6,9.96,13.33333333,15.38
CORRELATION,"A statistical measure that indicates the extent to which two or more variables (such as financial ASSET prices) move in the same direc- tion, or different directions. Correlation is often used to price and manage certain COMPLEX DERIVATIVES (e.g., MULTI-INDEX OPTIONS), quantifyPORTFOLIO RISK exposures, and determine appropriate HEDGE RATIOS. See also CORRELATION COEFFICIENT, CORRELATION RISK.",palgrave,0,19.06,15.1,15.9,17,16.9,12.3,14.16666667,15.32
CORRELATION COEFFICIENT,"A standard measure of CORRELATION, typically computed as:A perfect positive correlation coefficient (+1) means a unit change in the price of one reference leads to the same unit change in the price of the second; a per- fect negative correlation coefficient (-1) means they move in equal but opposite directions; a correlation of 0 indicates prices are uncorrelated, or independent. See also CORRELATED CREDIT RISK, CORRELATION RISK.",palgrave,0,20.55,18.7,0,13.76,21.1,10.95,25.75,21.16
CORRELATION RISK,"The RISK of loss arising from a change in the histor- ical relationships, or CORRELATIONS, between ASSETS. Correlation risk can be found in certain COMPLEX OPTIONS and COMPLEX SWAPS and may also impact HEDGE RATIOS, CREDIT PORTFOLIO MODELS, and VALUE-AT-RISK models. A subcategory of MARKET RISK.",palgrave,0,47.49,10.4,10.5,12.52,12,10.57,8.333333333,10.47
COST INFLATION,"INFLATION that results from increased costs of produc- tion, including raw materials and labor. Higher production costs are priced into goods and services, leading labor to demand higher wages to meet the higher prices; the resulting rise in labor costs is also priced into the final goods and services, raising the overall rate of inflation. See also DEMAND INFLATION, MONETARY INFLATION.",palgrave,0,42.41,12.4,13,13.17,14.1,10.34,13.16666667,12.05
"COST, INSURANCE, FREIGHT (CIF)","The declared value of imported goods, including the cost of purchase and associated INSURANCE and shipping charges from the point of EXPORT to the point of IMPORT. CIF does notinclude duties or the cost of freight within the country of import. See also FREE ON BOARD (FOB).where rD is the average cost of debt, TR is the corporate tax rate (where 1 – TR provides benefits in the form of a TAX SHIELD), rE is the average cost of equity (or expected return to COMMON STOCK shareholders), D is total amount of debt, and E is total amount of equity.The formula can be further expanded to include a specific cost and amount of PREFERRED STOCK, if such capital features on the BALANCE SHEET.",palgrave,0,38.32,18.1,16.7,9.36,20.6,10.68,21,20.95
COST OF CARRY,"The FUTURE VALUE of costs and benefits associated with holding an ASSET, which typically includes the cost of FINANCING, INSURANCE, transportation and/or storage, less benefits derived from lending the asset and any CONVENIENCE YIELD. Cost of carry is used to determine theoretical FUTURES prices and ARBITRAGE opportunities.",palgrave,0,22.24,16,0,16.6,18.3,12.19,17.75,18.76
COST OF GOODS SOLD (CGS),"The direct costs attributable to the produc- tion of goods, including the cost of raw materials and production inputs, as well as direct labor costs. CGS excludes administrative expenses, INTEREST, TAXES, and DEPRECIATION. See also REVENUE.",palgrave,0,33.92,11.5,12.5,13.38,11.4,11.69,7.666666667,13.69
COST OF RISK,"The implicit or explicit price a company must pay to man- age its RISK exposures; typically it comprises of the expected costs and dir- ect and indirect losses arising from RISK RETENTION, LOSS CONTROL, LOSS FINANCING, and RISK REDUCTION activities.",palgrave,0,22.42,20.1,0,12.78,23.3,12.73,32,27
COUNTERPARTY,"An institution that is a party to a financial transaction with CREDIT RISK, such as a LOAN, DERIVATIVE, or FINANCING.",palgrave,0,42.72,12.3,0,9.98,11.6,10.16,15,18
COUNTERVAILING CREDIT,"A mechanism of granting CREDIT in a com- mercial transaction without disclosing the name of one of the two parties. The FINANCIAL INSTITUTION standing between seller and buyer of goods on credit issues documentation to the buyer in its own name, so disguising the identity of the seller.",palgrave,0,38.66,13.8,0,11.55,14.1,10.42,16,16.27
COUNTRY RISK,"The RISK of loss due to adverse economic events or political instability within a country; country risk is often considered to be larger inscope than SOVEREIGN RISK as it includes actions that affect private sector, as well as governmental, obligations. A subcategory of CREDIT RISK.",palgrave,0,31.72,14.4,0,13.18,14.8,11.77,15.25,16.11
COUPON,"The periodic INTEREST CASH FLOW payable by an ISSUER or BORROWER to an INVESTOR or LENDER for the use of DEBT-based CAPITAL. Coupon payments may be based on FIXED or FLOATING RATES, and may be payable on a weekly, monthly, quarterly, semiannual, or annual basis, or accrued until final MATURITY of the LIABILITY. See also CORPUS, PRINCIPAL.",palgrave,0,43.73,11.9,13.6,10.5,11.5,11.78,12.83333333,13.92
COVARIANCE,"A statistical measure of the relationship between two vari- ables (e.g., financial ASSET prices), often used to determine the magnitude of CORRELATION. The covariance between two assets can be computed via:n − 1where xA,j is an observation of asset A, xA is the MEAN of asset A, xB,j is an obser- vation of asset B, xB is the mean of asset B, and n is the number of observations. See also CORRELATION COEFFICIENT, VARIANCE/COVARIANCE MATRIX.",palgrave,0,37.64,14.2,15,9.87,14.1,10.98,16.83333333,15.87
COVER,(1) The act of repurchasing or HEDGING a position previously SOLD SHORT or held naked. (2) Any form of INSURANCE or REINSURANCE.,palgrave,0,49.15,11.9,0,9.34,12.5,11.19,16,17.89
COVERAGE TEST,"A financial test that is performed in a COLLATERALIZED DEBT OBLIGATION to ensure that sufficient COLLATERAL and INTEREST COVERAGE exists. Successful passing of each coverage test allows CASH FLOW from the underlying reference POOL to flow to the TRANCHES with increasing levels of SUBORDINATION. See also INTEREST ,OVERCOLLATERALIZATION TEST, WATERFALL.",palgrave,0,20.68,14.5,16.3,17.11,15.5,11.41,13.66666667,17.88
COVERED BOND,"A BOND issued by FINANCIAL INSTITUTIONS that is collateralized by public sector LOANS or MORTGAGES. See also CEDULAS HIPOTECARIAS, HYPOTHEKENPFANDBRIEFE, IRISH ASSET COVERED SECURITIES, JUMBO PFANDBRIEFE, LETTRES DE GAGE, OBLIGATIONS FONCIERES, OFFENTLICHE PFANDBRIEFE.",palgrave,0,29.35,13.3,0,22.68,20.6,15.46,11.25,13.87
COVERED CALL,"An OPTION position where the seller of a CALL OPTION owns the UNDERLYING ASSET deliverable if the buyer EXERCISES the option. Selling covered calls is a relatively low RISK way of generating PREMIUM income since the cost of the underlying is already known. See also COVERED OPTION, COVERED PUT, NAKED CALL.INTEREST ARBITRAGE.",palgrave,0,37,12.4,13.6,12.29,12.1,10.26,12,13.84
COVERED POSITION,"An outright LONG POSITION or SHORT POSITION that is protected by an offsetting HEDGE. Depending on the nature of the hedge, a covered position may have only negligible MARKET RISK and CREDIT RISK exposures. See also NAKED POSITION.",palgrave,0,50.12,9.4,13,10.83,9,9.67,8.333333333,11.4
COVERED PUT,"An OPTION position where the seller of a PUT OPTION already has sufficient cash on hand to purchase the UNDERLYING ASSET ifthe buyer EXERCISES the option. Selling covered puts is a relatively low RISK way of generating PREMIUM income since the cash is available to cover the exercise. See also COVERED CALL, COVERED OPTION, NAKED PUT.",palgrave,0,44.03,11.8,12.5,11.08,11.4,10.2,12,13.19
COVERED WRITER,The seller of a COVERED OPTION that either owns the UNDERLYING ASSET (deliverable under a CALL OPTION) or has sufficient cash on hand to acquire the asset (under a PUT OPTION) should EXERCISE occur. A covered writer seeks to earn PREMIUM income on a relatively low RISK basis. See also NAKED WRITER.,palgrave,0,53.92,10,11.2,9.28,9.7,9.96,10.66666667,11.54
CP,See COMMERCIAL PAPER.,palgrave,0,34.59,9.2,0,9.23,9.9,9.05,1.5,14.53
CPA,See CERTIFIED PUBLIC ACCOUNTANT.,palgrave,0,8.2,13.1,0,17.4,14.7,11.73,3,21.6
CPDO,See CONSTANT PROPORTION DEBT OBLIGATION.,palgrave,0,32.56,10,0,18.88,15,16.52,3.5,18
CPI,See CONSUMER PRICE INDEX.,palgrave,0,75.88,3.7,0,7.25,6.5,11.73,1,1.6
CPPI,See CONSTANT PROPORTION PORTFOLIO INSURANCE.,palgrave,0,-1.29,14.7,0,23.52,18.8,16.52,4.5,26
CPR,See CONDITIONAL PREPAYMENT RATE.,palgrave,0,8.2,13.1,0,17.4,14.7,11.73,3,21.6
CRACK SPREAD,"A SPREAD in the energy market reflecting the price differential between crude oil and a refined product, generally gasoline or heat- ing oil; the spread can be traded through a single FUTURE or OPTION on cer- tain EXCHANGES. A HEDGER or SPECULATOR can buy the crack spread (e.g., purchase crude and sell heating oil or gas) to take advantage of positive mar- gins in refining, and sell the spread (e.g., sell crude and purchase heating oil or gas) to profit from negative margins. See also CRUSH SPREAD, SPARK SPREAD.",palgrave,0,58.25,12.5,13,9.99,16.1,10.25,17.83333333,15.92
CRAMDOWN,A process where CREDITORS with existing CREDIT RISK to a company that has filed a REORGANIZATION plan under BANKRUPTCY protection choose not to participate in the new plan and have their interests demoted or “crammed down.” A bankruptcy court can approve cramdown if at least one creditor agrees to the repayment plan and the plan does not discrim- inate among participating creditor claims.,palgrave,0,7.53,27.9,0,13.59,34.7,12.28,45.5,32.18
CRAWLING PEG,"A FOREIGN EXCHANGE PEGGING process based on offi- cial CENTRAL BANK intervention activity that adjusts the value of the local CURRENCY through small preannounced changes or average target rates over a period of time. The crawling feature avoids sudden jumps or VOLATILITY characteristic of DEPRECIATION or DEVALUATION, but may still be difficult and expensive to maintain over the long term. Also known as ADJUSTABLE PEG. See also MANAGED FOREIGN EXCHANGE RATE.",palgrave,0,44.95,11.4,13,13.86,13.4,11.41,11.875,13.88
CREDIT,"(1) A LOAN, FINANCING, or other form of BORROWING. (2) Payment into an ACCOUNT. (3) An ACCOUNTING entry in a DOUBLE ENTRY ACCOUNTING system that reflects a decrease in ASSETS or an increase in LIABILITIES or CAPITAL. A credit balance also represents liabilities or reve- nues. (3) See also DEBIT.",palgrave,0,37.64,14.2,0,9.81,14.3,10.88,16.5,14
CREDIT ANALYST,"An analyst working for a BANK, CREDIT RATING AGENCY, or other FINANCIAL INSTITUTION that is responsible for analyz- ing the financial state and prospects of a company that is an ISSUER of DEBT or a borrower via CREDIT facilities. The output is used in accordance with the function of the credit analyst, which may be to establish an internal CREDIT RATING and recommend a credit decision, establish an external credit rating, or develop a recommendation on whether to buy, sell, or retain the company’s debt. See also EQUITY ANALYST, INVESTMENT ANALYST.",palgrave,0,23.8,17.5,19.3,12.08,17.7,10.52,23.16666667,20.03
CREDIT CARD,"A card issued by a BANK or FINANCIAL INSTITUTION that conveys a CREDIT line to the holder and allows the purchase of goods or ser- vices on a credit basis. The resulting balance may be paid off by the holder immediately or over time, with INTEREST charges accruing on any unpaid balance. The credit line granted to the holder is, in most instances, unsecured. See also CHARGE CARD, DEBIT CARD.",palgrave,0,62.17,8.9,10.7,8.52,9.1,9.24,10.5,11
CREDIT CONTROL,"A government policy of controlling aggregate economic DEMAND by restricting access to CREDIT, generally by influencing INTEREST RATES, limiting the total amount of speculative LENDING, and setting min- imum RESERVE requirements for BANKS.",palgrave,0,4.14,20.9,0,18.63,24.5,15.32,28.5,26.53
CREDIT DEFAULT MODEL,"An analytic model that is used to determine credit losses based on the PROBABILITY a COUNTERPARTY will DEFAULT at a future time. See also CREDIT DEFAULT RISK, CREDIT MARK-TO-MARKET MODEL, INTENSITY MODEL, STRUCTURAL MODEL.",palgrave,0,28.84,13.5,0,13.45,13.3,10.52,11.5,12.68
CREDIT DEFAULT RISK,"The RISK of loss arising from a COUNTERPARTY’s failure to perform on its contractual obligations, including DERIVATIVES, LOANS, BONDS, and other credit-sensitive instruments. Also known as DEFAULT RISK. See also CREDIT INVENTORY RISK, CREDIT RISK, CREDIT SPREAD RISK.",palgrave,0,41.66,10.6,12.5,15.41,13.4,10.91,8,13.5
CREDIT DEFAULT SWAP INDEX,"A POOL of CREDITS that is used as a reference in a CREDIT DEFAULT SWAP transaction or an INDEX TRANCHE structure. ITRAXX INDEXES have emerged as the industry standard for liquid TRADING, though bespoke credit indexes also exist.",palgrave,0,52.19,10.7,0,11.43,11.8,12.06,12,11.81
CREDIT DERIVATIVE,"An OVER-THE-COUNTER DERIVATIVE with an UNDERLYING reference that is based on the credit performance of a REFERENCE CREDIT. Credit derivatives are available in various forms, includ- ing the BASKET SWAP, CREDIT DEFAULT OPTION, CREDIT DEFAULT SWAP,CREDIT FORWARD, CREDIT SPREAD OPTION, FIRST-TO-DEFAULT SWAP, Nth-TO-DEFAULT SWAP and TOTAL RETURN SWAP. See also COMMODITY DERIVATIVE, CURRENCY DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE, REFERENCE ENTITY, REFERENCE OBLIGATION, SYNTHETIC COLLATERALIZED DEBT OBLIGATION.",palgrave,0,-1.93,19.1,19.9,21.01,22.2,10.87,19.83333333,17.28
CREDIT FORWARD,A single period OVER-THE-COUNTER FORWARD CONTRACT that generates a payoff based on the difference between anagreed CREDIT SPREAD (or price) and the terminal credit spread (price) of a REFERENCE CREDIT. See also CREDIT DERIVATIVE.,palgrave,0,37.3,12.3,0,14.5,14.2,9.12,12,12.68
CREDIT INVENTORY RISK,"The RISK of loss arising from a borrower’s finan- cial deterioration (reflected in a widening of its CREDIT SPREAD) and/or its failure to perform on a LOAN or BOND obligation (reflected in DEFAULT). See also CREDIT DEFAULT RISK, CREDIT SPREAD RISK.",palgrave,0,50.67,11.3,0,10.85,12.7,10.05,12.75,12.1
CREDIT RESERVE,"A CONTRA-ACCOUNT that is used to fund EXPECTED CREDIT LOSSES. Reserves are established by deducting required amounts from OPERATING REVENUES or current income, and are used when a COUNTERPARTY ceases to perform on a contractual obligation, such as a LOAN, BOND, payable, or DERIVATIVE. See also LOAN LOSS RESERVE.",palgrave,0,46.47,10.8,13,12.7,12.2,11.53,11.16666667,13.05
CREDIT RISK,"The RISK of loss arising from a COUNTERPARTY’s failure to perform on a contractual obligation (CREDIT DEFAULT RISK) or from credit deterioration (CREDIT SPREAD RISK). Credit risk, which is a form of FINANCIAL RISK, can be subcategorized into CORRELATED , CONTINGENT , DIRECT , SETTLEMENT RISK, SOVEREIGN RISK (COUNTRY RISK), and TRADING .",palgrave,0,21.23,16.4,0,15.09,18.3,10.01,18.25,17.15
CREDIT SCORE,"A numeric score, assigned to an individual that has or is seek- ing CREDIT, representing a relative degree of creditworthiness. Credit scores are typically provided by one of several recognized credit bureaus, which spe- cialize in gathering and analyzing credit-related data, including payment time- liness, income, past DEFAULTS, and so forth. See also CREDIT RATING.",palgrave,0,27.52,14,15,14.45,14.7,11.43,13.5,16.05
CREDIT SPREAD,(1) A measure of the RISK PREMIUM a CREDIT-risky cor- porate or sovereign entity must pay to attract CAPITAL. The spread is generally,palgrave,0,51.34,9,0,8.27,7.1,11.76,7.25,11.56
CREDIT SPREAD RISK,"The RISK of loss arising from a deterioration in an entity’s CREDITWORTHINESS, generally reflected by a widening in the CREDIT SPREAD. See also CREDIT DEFAULT RISK, CREDIT INVENTORY RISK,CREDIT RISK.",palgrave,0,30.87,12.7,0,14.03,12.8,10.17,11,14
CREDIT SQUEEZE,"A series of measures enacted by a CENTRAL BANK or monetary authority to control the MONEY SUPPLY of the country. Such policies may include raising INTEREST RATES, increasing RESERVE REQUIREMENTS, and/or imposing other restrictions on the creation of BANK-generated CREDIT.",palgrave,0,25.8,14.6,0,15.66,16,12.92,14.5,17
CREDIT SUPPORT ANNEX (CSA),"An attachment to the MASTER AGREEMENT framework set forth by the INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION that defines CREDIT terms between two COUNTERPARTIES, including credit thresholds, COLLATERAL requirements, and credit termination events.",palgrave,0,-3.31,21.7,0,22.46,27,13.61,25,24.05
CREDIT UNION,"A form of BANK, generally structured as a cooperative organ- ization, that accepts DEPOSITS from, and grants LOANS to, its members.",palgrave,0,50.16,11.5,0,11.72,14,11.45,12.5,12.21
CREDITOR,A party that lends money. See also DEBTOR.,palgrave,0,84.34,2.5,0,0.75,1.2,7.78,1,1.6
CREDITOR COMMITTEE,"A group, formed by institutions that have a finan- cial CLAIM on a company that has filed for BANKRUPTCY, which coordinates actions in order to maximize value in LIQUIDATION or REORGANIZATION.",palgrave,0,23.09,17.7,0,12.89,18.7,11.29,22.5,20.14
CREDITWORTHINESS,"A measure of the financial strength of an individual or company, and the resulting ABILITY TO PAY on any extension of CREDIT.",palgrave,0,40.69,13.1,0,9.63,11.8,9.75,17,17.89
CREEPING TAKEOVER,See CREEPING TENDER.,palgrave,0,59.97,5.6,0,7.32,8.3,14.31,0.5,1.2
CREEPING TENDER,A CORPORATE FINANCE transaction where an INVESTOR group or acquiring company gradually purchases the COMMON STOCK of a TARGET company. Once a specified block has been accumulated a formal TENDER OFFER is made for the balance of the company’s SHARES. Also known as CREEPING TAKEOVER.,palgrave,0,47.79,10.3,13.6,12.4,11,10.7,10.83333333,13.11
CREST,"In the United Kingdom, an electronic platform used for the SETTLEMENT of SHARES that eliminates manual and paper-driven processes. The platform was original created by the BANK OF ENGLAND and is now owned and operated by EUROCLEAR.",palgrave,0,44.24,11.7,0,12.65,12.6,9.25,14.25,16.05
CROSS,"The process of executing a TRADE that has been MATCHED, often used in the context of off-EXCHANGE TRADING. See also ING NETWORK, DARK POOL, MATCH.",palgrave,0,75.71,5.8,0,8.74,7.8,8.68,6.25,6.6
CROSS-ASSET HEDGE,"A proxy or substitute HEDGE that is used when an exact replicating hedge is not available, generally by identifying a refer- ence (e.g., a DERIVATIVE) that has a high degree of CORRELATION with the underlying RISK exposure requiring protection. Although a highly correlated cross-asset hedge introduces elements of BASIS RISK, it reduces or eliminates first-order MARKET RISKS, including DIRECTIONAL RISK or VOLATILITY RISK. Also known as CROSS HEDGE.",palgrave,0,31.51,14.5,16.7,14.57,16.5,12.19,17,19.08
CROSS COLLATERAL AGREEMENT,"A single COLLATERAL agreement that covers multiple LOANS or CREDIT facilities. Also known as DRAGNET CLAUSE. See also POOLED PORTFOLIO COLLATERAL, TRANSACTION-SPECIFIC COLLATERAL.FOREIGN EXCHANGE RATE.",palgrave,0,12.29,13.6,11.9,20.32,16.1,12.89,5.5,12.92
CROSS-DEFAULT CLAUSE,"A clause in a LOAN, BOND, or DERIVATIVE agreement indicating that a technical DEFAULT on one obligation triggers a technical default in all other obligations. Cross-default clauses are commonly used in CREDIT agreements and MASTER AGREEMENTS.",palgrave,0,36.28,12.7,0,14.96,14.7,10.67,13,13.87
CROSS HEDGE,See CROSS-ASSET HEDGE.,palgrave,0,93.81,0.9,0,9.23,11.5,14.31,0.5,1.2
CROSS-MARGIN AGREEMENT,"An agreement between two or more EXCHANGES that permits MARGIN requirements to be computed on a net, rather than gross, basis. Such an agreement avoids “double counting” of mar- gins for LONG POSITIONS and SHORT POSITIONS, allowing clients to use their ASSETS more efficiently.",palgrave,0,57.61,10.7,0,12.76,14.6,10.83,14,13.35
CROSS RATE,A FOREIGN EXCHANGE RATE between two CURRENCIES that does not involve the US dollar.,palgrave,0,65.73,7.6,0,10.72,9.1,7.71,7,8.46
CROSS SHAREHOLDING,"Minority stakes held by two companies in each other; this is often done to help strengthen long-term business relationships, and is particularly prevalent in RELATIONSHIP MODEL countries such as Germany and Japan.",palgrave,0,30.54,17,0,15.56,21.4,11.14,21,19.05
CROSSED TRADE,"A practice where ORDERS to buy and sell listed SECUR- ITIES are matched without being channeled through an EXCHANGE; once crossed, the details may be reported to the exchange. Crossed trades are not permitted in certain market jurisdictions as they are thought to reduce trans- parency and leave open the possibility for unfair pricing practices.",palgrave,0,52.02,12.8,0,13.18,17.3,10.46,15.75,13.91
CROSSING (,"1) The process of executing buy and sale trades that have been MATCHED. (2) In the United Kingdom, a process where a BROKER or DEALER buys and then sells the same SECURITIES, without exposing them first to the market.(2) See also WASH SALE.",palgrave,0,53.21,16.5,0,8.95,21.7,10.18,24.5,19.99
CROSSOVER DISCOUNT RATE,The DISCOUNT RATE which yields iden- tical NET PRESENT VALUES for two different CAPITAL INVESTMENT projects.,palgrave,0,63.7,8.4,0,15.43,13.9,11.34,11,8.9
CROSSOVER INVESTOR,"An INVESTOR that invests in a company before it goes public, and continues to do so during the INITIAL PUBLIC OFFERING stage and once it is a publicly listed company.",palgrave,0,41.03,15,0,9.41,15.1,8.81,19,14.67
CROWDED TRADE,"An INVESTMENT or TRADE in a particular ASSET that has attracted a significant amount of interest and speculative CAPITAL, causing its price to move quickly and sharply. A crowded trade may be OVERBOUGHT and due for a CORRECTION.",palgrave,0,52.19,10.7,0,11.43,11.8,9.15,13.5,14.97
CROWN JEWEL DEFENSE,"An ANTITAKEOVER DEFENSE used by a company seeking to avoid a future HOSTILE TAKEOVER by another company. In the event a hostile takeover is successful the crown jewel provision in the company’s bylaws automatically triggers the sale of valuable corporate ASSETS, leaving the acquiring company with less value than anticipated. By publicizingin advance the existence of a crown jewel provision, a company hopes to deter any potential takeover attempts.",palgrave,0,31.21,14.6,16.7,14.8,16.2,10.5,17.16666667,15.58
CROWN JEWELS,A company’s most productive and/or profitable ASSETS/operations. See also CROWN JEWEL DEFENSE.,palgrave,0,14.63,12.7,0,17.33,14.2,11.83,3.5,12.4
CSA,See CREDIT SUPPORT ANNEX.,palgrave,0,50.5,7.2,0,7.25,6.5,15.68,1,1.6
CTA,See COMMODITY TRADING ADVISOR.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,3,21.6
CTD,"See CHEAPEST-TO-DELIVER.EXPONENTIAL INTERPOLATION, LINEAR INTERPOLATION.",palgrave,0,-170.49,38.3,0,51.36,45.1,19.67,4.5,26
CUMULATIVE PREFERRED STOCK,"PREFERRED STOCK that includes a feature allowing any foregone or suspended DIVIDEND payments to auto- matically accumulate. When the company restarts its program, cumulative preferred stock INVESTORS are entitled to receive all accumulated dividends before dividends can be paid to COMMON STOCK or NON INVESTORS.",palgrave,0,23.26,15.6,0,17.06,17.9,11.42,16.75,17
CUMULATIVE VOTING,A form of proportional representation that permits INVESTORS to allocate all of their votes in support of a single DIRECTOR or issue; this type of voting can favor MINORITY INTERESTS as it gives them greater ability to concentrate their otherwise limited voting influence.,palgrave,0,10.91,22.4,0,14.35,25.3,12.75,32.5,26.5
CURE PERIOD,"A time frame of 30 to 90 days during which a company that has gone into technical DEFAULT on a contractual payment is permitted to submit payment without further prejudice, and without being considered to have defaulted. See also GRACE PERIOD.",palgrave,0,42.21,12.5,0,11.02,12.1,9.66,14.25,15.03
CURRENCY,"(1) See MONEY, (2) See FOREIGN EXCHANGE.",palgrave,0,81.29,3.7,0,3.26,5,10.75,2.5,2.8
CURRENCY BASKET,A group of CURRENCIES that may collectively be used as a reference value for another currency. Certain managed currencies in the emerging markets use currency baskets in this fashion.,palgrave,0,39.84,11.3,0,12.75,11,8.71,10.75,11.32
CURRENCY DERIVATIVE,"An EXCHANGE-TRADED DERIVATIVE or OVER-THE-COUNTER DERIVATIVE with an UNDERLYING reference based on FOREIGN EXCHANGE RATES. A currency derivative can be struc- tured as a currency OPTION, currency forward, CURRENCY FUTURE, CURRENCY SWAP, or CURRENCY WARRANT. See also COMMODITY DERIVATIVE, CREDIT DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE.",palgrave,0,-3.28,17.5,17.9,19.07,17.7,10.57,14.33333333,12.21
CURRENCY FUTURE,"A FUTURES contract, bought or sold via an EXCHANGE, which references a specific FOREIGN EXCHANGE RATE. Currency futures are available on both CONVERTIBLE CURRENCIES and select EXOTIC CURRENCIES. See also COMMODITY FUTURE, INDEX FUTURE, INTEREST RATE FUTURE.",palgrave,0,33.61,11.6,13,15.36,12.9,10.65,8.166666667,13.57
CURRENCY OVERLAY,"An INVESTMENT technique related to the active management of CURRENCY exposures inherent in a PORTFOLIO of multicur- rency ASSETS, where the currency RISKS of the portfolio are managed separ- ately from the remaining MARKET RISKS of the portfolio. The currency overlay is implemented by creating a currency neutral position for the INVESTOR, and then permitting tactical flexibility that allows the portfolio manager to devi- ate from the base position in order to generate currency-based ALPHA. The overlay may be based on CARRY, momentum, and/or quantitative approaches.See TRANSLATION RISK.",palgrave,0,16.36,18.3,20.6,15.73,20.3,11.55,24,20.81
CURRENCY WARRANT,"A long-dated CURRENCY OPTION (i.e., 3 to 5 years) that is typically attached to a BOND (as a BOND WITH WARRANTS). The war- rant, which can be detached and traded separately, is generally denominated in a currency that is different from the currency of underlying bond issue and is included to give the ISSUER a lower overall cost of funding.",palgrave,0,41.03,15,0,9.3,15.7,11.44,20.5,16.67
CURRENT ACCOUNT,"(1) The sum of a country’s activity in net TRADE (EXPORTS less IMPORTS), INVISIBLES, receipts/remittances from abroad, inter- national payment transfers, and gifts. (2) In the United Kingdom, a CHECKING ACCOUNT. (1) See also BALANCE OF PAYMENTS, CAPITAL ACCOUNT.",palgrave,0,23.43,19.7,0,13.82,25.1,12.45,24.5,19.7
CURRENT ASSETS,"Any ASSET on the BALANCE SHEET with a final MATURITY of less than one year. Common current assets include cash, mar- ketable SECURITIES (e.g., BONDS, COMMON STOCK, PREFERRED STOCK, and other INVESTMENTS), INVENTORY, and ACCOUNTS RECEIVABLE. Current assets generally exhibit a high degree of LIQUIDITY and can often be converted into cash very quickly, at a price near carrying value. Also known as CIRCULATING ASSET. See also CURRENT LIABILITIES, CURRENT RATIO.",palgrave,0,40.14,11.2,12,12.52,11.6,10.57,8.5,12.44
CURRENT CAPITAL,See WORKING CAPITAL.,palgrave,0,34.59,9.2,0,7.32,8.3,9.05,1.5,1.2
CURRENT EXPOSURE METHOD,"A regulatory method of computing CREDIT RISK on a SWAP under the BANK FOR INTERNATIONAL SETTLEMENTS’ ori- ginal 1988 Capital Accord based on the sum of FRACTIONAL EXPOSURE (i.e., POTENTIAL EXPOSURE arising in the future) and ACTUAL EXPOSURE (i.e., the current or MARK-TO-MARKET value of the transaction). See alsoINTERNAL RATINGS-BASED APPROACH, ORIGINAL EXPOSURE METHOD.",palgrave,0,18.69,17.4,0,15.32,19.8,12.58,22,18.95
CURRENT ISSUE,See ON-THE-RUN SECURITIES.,palgrave,0,9.21,12.7,0,15.03,17.8,9.05,1.5,14.53
CURRENT RATIO,"A measure of a company’s LIQUIDITY and its ability to meet obligations that are coming due, typically computed as:where CA is CURRENT ASSETS and CL is CURRENT LIABILITIES.A current ratio above 1.0 indicates that the company has sufficient CASH FLOW from maturing assets to meet its short-term obligations. A ratio below1.0suggests the possibility of greater LIQUIDITY RISK pressures. See alsoQUICK RATIO.",palgrave,0,25.49,14.7,16.3,14.56,15.3,10.86,15.5,15.99
CURRENT WEIGHTED INDEX,"A method of computing a weighted INDEX that uses current period quantities, computed as:⎝where pc is the current period price, qc is the current period quantity, p0 is the base period price. Also known as PAASCHE’S INDEX. See also BASE WEIGHTED INDEX.",palgrave,0,57.27,8.8,12.5,10.14,9.1,9.59,8.666666667,10.36
CURRENT YIELD,"A current measure of the return on a INTEREST-bearing FIXED INCOME SECURITY, generally computed as:where C is the COUPON, and P is the purchase price of the security. See alsoBOND EQUIVALENT YIELD, DISCOUNT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.",palgrave,0,40.18,13.2,0,12.94,15.3,10.72,15.25,14.33
CURVE RISK,"The RISK of loss arising from a change in the shape of the YIELD CURVE (i.e., the TERM STRUCTURE of INTEREST RATES).Although curve risk is generally associated with interest rates, it is also evi- dent in other financial variables with a term structure, such as VOLATILITY of interest rates, FOREIGN EXCHANGE RATES, and EQUITIES. A subcategory ofMARKET RISK.",palgrave,0,42.04,14.6,0,12.14,17.5,10.25,19.5,17.12
CUSHION BOND,A CALLABLE BOND with a high COUPON that is selling for a PREMIUM. The cushion bond loses less value as rates rise and gains less value when rates fall when compared with a NONCALLABLE BOND.,palgrave,0,79.09,6.6,0,7.77,8.2,9.02,8.25,8.14
CUSIP,See COMMITTEE ON UNIFORM SECURITIES IDENTIFICATION PROCEDURES.,palgrave,0,-28.7,19,0,25.64,19.8,13.01,6.5,25.66
CUSTODIAN,"An AGENT that performs various duties on behalf of a client, including holding SECURITIES in safe CUSTODY, executing financial transac- tions under specific instructions, and collecting periodic CASH FLOWS fromINVESTMENTS.",palgrave,0,7.19,19.7,0,19.68,23.9,15.65,25,25.33
CUSTODY,"The act of holding SECURITIES or other ASSETS in safekeep- ing for another party. BANKS often provide custody services to their clients, reducing the inefficiency, inconvenience, and possible danger of conveying assets between locations/accounts. Also known as GLOBAL . See alsoCUSTODIAN.",palgrave,0,15.68,14.4,13,16.52,14.4,11.4,8.833333333,12.32
CUSTOMER MARGIN,MARGIN posted by a FUTURES COMMISSION MERCHANT or client with a CLEARING MEMBER to cover the requirements of TRADES that have been executed and temporarily covered by the member’s own CLEARING MARGIN.,palgrave,0,30.54,17,0,13.76,19.4,11.64,20,17.8
CUSTOMS UNION,A confederation of two or more countries that agree to eliminate DUTIES on IMPORTS and EXPORTS on goods and services within the confederation.,palgrave,0,39.67,13.4,0,13,14.7,10.27,14.5,12.68
CUTTING THE MELON,The process of granting current SHAREHOLDERS of a company’s COMMON STOCK a SPECIAL DIVIDEND (in SHARES or cash). The process is periodically used as a means of returning excess CAPITAL to INVESTORS.,palgrave,0,46.78,10.7,0,11.95,11.2,10.84,11,12.65
CYCLICAL STOCK,"The STOCK of a company that tracks very closely the BUSINESS CYCLE, i.e., declining in price during an economic slowdown or RECESSION and rising during an economic expansion.",palgrave,0,34.6,15.4,0,12.42,17.3,10.1,20,16.91
CYLINDER,See ZERO COST COLLAR.,palgrave,0,75.88,3.7,0,1.45,1.8,7.78,1,1.6
D&O COVER,See DIRECTOR AND OFFICER INSURANCE COVER.DELIVERY VERSUS PAYMENT.,palgrave,0,4.14,14.7,0,20.95,16.7,11.93,7,18.2
DAIMYO,"[JPN, COL] A public BOND issued in Japanese yen by a non-Japanese company. Daimyos are generally listed on the Luxembourg Stock Exchange. See also GEISHA, SAMURAI, SHIBOSAI, SHOGUN.",palgrave,0,62.04,6.9,10.5,10.76,9.1,12.56,5.333333333,9.43
DAISY CHAIN,"An illegal TRADING scheme where a group of manipu- lators trade a company’s COMMON STOCK among themselves in order to cre- ate the illusion of activity. Unsuspecting INVESTORS are lured into the scheme and bid prices up further, until a point where the manipulators sell their posi- tions at a profit and leave remaining investors with losses as the market falls. Daisy chains are generally only possible in SECURITIES with relatively small FREE FLOAT and TRADING volume. Also known as PAINTING THE TAPE. See also PUMP AND DUMP.",palgrave,0,53.61,10.2,11.6,10.9,11,9.35,11,11.59
DAMAGES,"The financial compensation awarded by the courts to a plaintiff for losses, breach of CONTRACT, or infringement of protected RIGHTS. The compensation may equal the amount of financial loss sustained, or it may be set as some multiple of that amount. See also LIQUIDATED , STATUTORY , UNLIQUIDATED .",palgrave,0,47.49,10.4,13.6,12.64,11.8,9.89,11.5,13.08
DARK ALGORITHM,"An ALGORITHM that is specifically designed to detect, and interact with, a DARK POOL.",palgrave,0,57.27,8.8,0,10.72,9.8,9.97,9,14.17
DARK LIQUIDITY,See NONDISPLAYED LIQUIDITY.,palgrave,0,9.21,12.7,0,20.83,19.3,14.31,1.5,14.53
DATED SECURITY,"Any SECURITY that has a defined MATURITY. See alsoPERPETUAL DEBT, UNDATED SECURITY.",palgrave,0,-2.3,15.1,0,12.52,9.8,11.83,4.5,15.73
DAX,See DEUTSCHE AKTIENINDEX.,palgrave,0,59.97,5.6,0,16.95,16.2,14.31,1.5,14.53
DAY COUNT CONVENTION,"A mechanism for computing COUPON pay-ments/receipts on a FIXED INCOME SECURITY. Day count conventions, whichvary by instrument, market, and country, are based on the period betweenCOUPON payments, the number of days in the month, and number of the•Actual/360, which computes the actual number of days between two cou- pon dates and assumes the year has 360 days.•Actual/365, which computes the actual number of days between two cou- pon dates and assumes the year has 365 days.•Actual/actual, which computes the actual number of days between two cou- pon dates and assumes the year has 365 days or 366 days (depending on leap year).•30/360, which assumes that each month has 30 days and the year has 360 days (a European version of this modifies the end-of-month computation).",palgrave,0,16.5,26.5,0,12.49,34.4,10.53,32.5,28.84
DAY COUNT NOTE,See RANGE FLOATING RATE NOTE.,palgrave,0,100.24,0.5,0,6.12,4.6,10.2,1.5,2
DAY ORDER,A LIMIT ORDER for the purchase or sale of SECURITIES that is automatically cancelled if it is not executed during the trading day. See alsoGOOD TILL CANCELLED ORDER.,palgrave,0,40.35,11.1,0,10.32,8.8,8.84,8,11.31
DAY TRADING,The process of actively buying and selling SECURITIES throughout the day but holding little or no OPEN POSITION at market close; the practice was initially popularized by the advent of ELECTRONIC COMMUNICATIONS NETWORKS and Internet-based TRADING platforms. See also SWING TRADING.,palgrave,0,33.75,13.6,0,16.24,16.5,11.97,14.25,16
DAYLIGHT OVERDRAFT,An intraday LOAN created when a BANK transfers funds in excess of its balance held in a RESERVE account with the CENTRAL BANK. OVERDRAFTS may also occur in the accounts of interbank payment members and in correspondent BANKS.,palgrave,0,52.19,10.7,0,11.08,11.4,10.81,11.5,11.81
DAYLIGHT RISK,"The RISK of loss arising from failure by a party to a CONTRACT to receive, within the same business day, cash or ASSETS after it has already delivered assets or cash to another party. Also known as DAYLIGHT EXPOSURE. See also SETTLEMENT RISK.",palgrave,0,65.42,7.7,9.7,8.4,7.6,7.65,7.5,7.58
DAYS PAYABLES OUTSTANDING,"A measure of a company’s CASH FLOW CYCLE, reflecting the number of days it takes for a company to pay cash for its outstanding ACCOUNTS PAYABLE. It is computed as:where AP is the company’s accounts payable balance, CPday is the company’s average CREDIT purchases per day.The higher the ratio, the longer the company takes to pay cash for its pur- chases.",palgrave,0,48.98,14,0,10.51,16.5,10.59,20.25,16.13
DAYS SALES INVENTORY,"A measure of a company’s INVENTORY cycle, or the number of days of inventory it has on hand to meet sales demand. It is computed as:where Inv is the company’s inventory on hand, ready for sales (i.e., the FINISHED GOODS INVENTORY), CGSday is the company’s average day’s COST OF GOODS SOLD.The higher the ratio, the longer it takes to convert inventory into cash.",palgrave,0,39.5,15.6,0,9.76,16.7,9.71,20.75,15.14
DAYS SALES OUTSTANDING,"A measure of a company’s CASH FLOW CYCLE, reflecting the number of days its takes for a CREDIT sale to be con- verted into cash. It is computed as:where AR is the company’s ACCOUNTS RECEIVABLE balance, CSday is the company’s average credit sales per day.The higher the ratio, the longer it takes to convert sales into cash.",palgrave,0,51.01,13.2,0,9.35,14.9,10.87,17.75,14.91
DCF,See DISCOUNTED CASH FLOW.,palgrave,0,75.88,3.7,0,7.25,6.5,7.78,2,11.6
DEAD CAT BOUNCE,A temporary recovery in a market or SECURITY following a steady or sharp decline; the recovery is typically fleeting and the downward trajectory generally continues.,palgrave,0,12.26,17.8,0,15.26,17.6,11.82,21.5,21.2
DEAD HAND CLAUSE,A provision contained within some POISON PILL defenses preventing the acquisition of the company by another firm even if a majority of SHAREHOLDERS approve of the offer. Only incumbent DIRECTORS can remove the provision. Also known as DEAD HAND POISON PILL.,palgrave,0,40.65,11,14.1,12.4,10.3,8.94,10.5,13.28
DEAD MONEY,CAPITAL that has been invested in an ASSET or market which generates no RETURNS over a particular time horizon. See also DOG.,palgrave,0,60.31,7.6,0,8.45,6.3,8.49,6.5,9.85
DEADWEIGHT DEBT,"DEBT of a company that is used to fund operating losses or service other debt rather than support productive INVESTMENT or ACQUISITIONS, or create incremental ENTERPRISE VALUE. Although the debt is necessary to ensure survival, it can become burdensome unless theunderlying ASSETS or operations being financed can be made productive or other BORROWINGS can be reduced.",palgrave,0,17.68,17.8,0,15.03,18.9,11.23,20.5,19.06
DEALER,"An institution acting as a PRINCIPAL, rather than as an AGENT of a customer, in a financial transaction. Dealers may be MARKET MAKERS (quot- ing TWO-WAY MARKETS), or simply RISK-takers on one side of a market. See also BROKER,  MARKET, PRIMARY .",palgrave,0,57.57,8.6,11.2,8.98,8.7,10.48,8,10.36
DEALER CREDIT,See TRADE CREDIT.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
DEALER MARKET,A financial marketplace where activity is restricted to DEALERS acting as PRINCIPALS for their own accounts; BROKERS acting as AGENTS for their clients are not permitted to participate. See also AUCTION.,palgrave,0,47.28,10.5,0,14.21,12.6,11.54,11.25,15.23
(ECN),"An ELECTRONIC COMMUNICATIONS NETWORK where clients face a sponsor, rather than other clients, as price-maker and COUNTERPARTY. Dealer market ECNs can be regarded as an electronic mechanism of dealing with a single institution. See also HYBRID ELECTRONIC COMMUNICATIONS NETWORK, REGULATED ELECTRONIC COMMUNICATIONS NETWORK.",palgrave,0,14.66,14.8,15,18.96,16.4,9.85,11.5,12.23
DEATH SPIRAL,"A CONVERTIBLE BOND that allows INVESTORS to convert their bonds into the ISSUER’S COMMON STOCK at below mar- ket prices. Investors can therefore establish SHORT POSITIONS to drive the price of the stock down, obtaining more shares at the time of conversion and using converted proceeds to cover their shorts. A death spiral is typically issued by a company in FINANCIAL DISTRESS that is increasingly desperate for any source of CAPITAL. Also known as FLOORLESS CONVERTIBLE.",palgrave,0,52.19,10.7,13.4,12.65,12.8,10.81,12.75,12.86
DEBENTURE,"(1) In the United States, a medium- to long-term, unsecured BOND. (2) In the United Kingdom, a long-term bond that is generally secured by a FIXED CHARGE or FLOATING CHARGE on the issuing firm’s ASSETS; the bond typically features fixed COUPONS that are payable before any DIVIDENDS. (2) See also NAKED , PERPETUAL .",palgrave,0,27.16,22.4,0,11.04,28.4,11.99,33,25.42
DEBIT,An ACCOUNTING entry that leads to an increase in ASSETS or a decrease in LIABILITIES or CAPITAL. A debit balance also represents assets or expenses. See also CREDIT.,palgrave,0,45.12,9.3,10.5,8.9,6.5,10.86,5.333333333,9.43
DEBIT CARD,"A card issued by a BANK or FINANCIAL INSTITUTION that permits the holder to purchase goods or services through a direct DEBIT to funds in an account linked to the card. Since the ability to effect a transaction is based solely on a sufficiency of funds in the account, no CREDIT is extended to the card holder. Also known as ASSET CARD. See also CREDIT CARD.",palgrave,0,63.19,8.5,10.1,7.71,7.7,8.76,8.75,10.24
DEBIT SPREAD,Any OPTION SPREAD that results in a net outflow of PREMIUM. See also CREDIT SPREAD.,palgrave,0,72.32,5,0,6.28,4,9.27,3.25,5.67
DEBT,"Money owed by one party to another party. Debt can take many forms, including ACCOUNTS PAYABLE, BILLS OF EXCHANGE, BONDS, DEPOSITS,DRAFTS, LOANS, NOTES, and REPURCHASE AGREEMENTS, and is gener- ally governed by a contractual agreement that reflects the borrowing party’s LIABILITY and the specific obligations that must be met in order to discharge the liability.",palgrave,0,35.1,15.2,0,14.34,18.8,12.46,18.75,16.09
DEBT CRISIS,"A form of FINANCIAL CRISIS based on a country’s inability to support its DEBT obligations. Failure to service PRINCIPAL and INTEREST associated with local and FOREIGN CURRENCY BONDS and LOANS may require a RESCHEDULING or RESTRUCTURING with CREDITORS, and may have a negative impact on the country’s financial and ASSET markets. See alsoCREDIT CRISIS, CURRENCY CRISIS.",palgrave,0,35.57,12.9,15,14.62,14.2,11.9,13.66666667,15.34
DEBT-EQUITY SWAP,"An exchange of outstanding DEBT for EQUITY between a CREDITOR and a corporate or sovereign DEBTOR in order to ease the debtor’s LEVERAGE burden and allow it to remain current on its remaining obligations; the swap is tantamount to a RESTRUCTURING of the debtor’s LIABILITIES. In a sovereign debt-equity swap, the equity allocated to the creditor may be from an unrelated sovereign-owned or controlled entity.",palgrave,0,30.03,17.1,0,13.47,19.7,10.84,24.25,21
DEBT FORGIVENESS,"The process of cancelling a DEBTOR’S outstanding DEBTS, leading to a write-off on the accounts of CREDITORS. Debt forgiveness is most commonly associated with debt cancellation of distressed sovereign borrowers. See also OVERHANG, RESCHEDULING, RESTRUCTURING.",palgrave,0,34.22,11.4,13,17.67,14.7,12.79,7.833333333,14.97
DEBT SERVICE,"Contractually required CASH FLOWS that a BORROWER must pay on a LOAN, BOND, LEASE, or other form of DEBT, generally com- prised of COUPON INTEREST, a fractional portion of PRINCIPAL (payable into a SINKING FUND), and/or a LEASE payment. See also  COVERAGE.",palgrave,0,50.16,11.5,0,10.62,13.1,11.82,14,15.07
DEBT SERVICE COVERAGE,"A company’s ability to manage its DEBT SERVICE requirement. A company with strong coverage possesses financial strength and flexibility, while one with weak cover is susceptible to FINANCIAL DISTRESS. Debt service coverage may be computed through the FIXED CHARGE COVERAGE ratio. See also INTEREST COVERAGE.",palgrave,0,34.63,11.2,14.2,14.77,11.7,9.81,8.375,13.41
DEBT TO ASSETS,"A measure of a company’s FINANCIAL LEVERAGE, or the degree to which DEBT features on the overall BALANCE SHEET. It is com- puted as:where D is the company’s total debt, TA is the company’s total ASSETS.The higher the ratio, the great the company’s financial leverage. See alsoCONTINGENTS TO ASSETS, DEBT TO EQUITY.",palgrave,0,45.46,11.2,13,10.67,11.1,9.96,11.66666667,10
DEBT TO EQUITY,"A measure of a company’s FINANCIAL LEVERAGE, or the degree to which DEBT features in the capital structure. It is computed as:where D is the company’s total debt, Eq is the company’s EQUITY.The higher the ratio, the great the company’s financial leverage. See alsoCONTINGENTS TO ASSETS, DEBT TO ASSETS.",palgrave,0,46.47,10.8,13.6,11.42,11.1,9.6,11.5,10.6
DECLARATIONS,"Statements the INSURED makes to the INSURER regarding salient facts needed to arrange an INSURANCE CONTRACT. Since the insurer relies on the declarations to UNDERWRITE the RISK of the policy, the informa- tion must be accurate in order for the policy to be accepted and remain valid and enforceable. See also MISREPRESENTATION, UBERRIMAE FIDEI.",palgrave,0,36.28,12.7,15.5,13.05,13,11.55,13.66666667,16.09
DEDUCTIBLE,"The initial amount paid by the INSURED in the event losses are sustained from PERILS covered via an INSURANCE CONTRACT. The deduct- ible, which creates a FIRST LOSS position for the insured, can be regarded as SELF-INSURANCE or a RISK RETENTION. The INSURER is only obligated to pay its share of any losses once the deductible has been met. Also known asFIRST LOSS RETENTION, SELF-INSURANCE RETENTION.",palgrave,0,54.73,9.7,12.2,11.08,10.8,9.48,10.75,10.24
DEFAULT CORRELATION,"A measure of the strength of the DEFAULT rela- tionship between two CREDIT-risky OBLIGORS, indicating the degree to which a default by one of the obligors influences the default of the second one.",palgrave,0,46.44,15,0,11.44,18.5,10.06,18.5,15.62
DEFAULT LOSS RATE,"The DEFAULT RATE applied to a company’s LIABILITIES, adjusted for potential RECOVERIES. When combined with the MARKET VALUE of liabilities, it yields the EXPECTED LOSS. The general form of the computation is given as:where DR is the default rate, RR is the recovery rate. See also LOSS-GIVEN DEFAULT.",palgrave,0,42.38,10.3,12.6,11.3,9.4,8.84,7.75,11.47
DEFAULT OPTION,See CREDIT .,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0.5,0.8
DEFAULT RATE,"The PROBABILITY that a company will enter into DEFAULT, generally expressed as a percentage per annum. INVESTMENT GRADE com- panies have lower default rates than HIGH YIELD companies. Also known as PROBABILITY OF DEFAULT. See also DEFAULT LOSS RATE, LOSS-GIVEN DEFAULT.",palgrave,0,44.1,9.7,11.2,12.5,10,9.54,6.125,9
DEFAULT RISK,See CREDIT .,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0.5,0.8
DEFAULT SWAP,See CREDIT .,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0.5,0.8
DEFEASANCE,"A process where an ISSUER of a BOND makes periodic INTEREST payments into a TRUST and separately funds the trust with ASSETS (such as ZERO COUPON BONDS) that will yield sufficient proceeds to retire the bond at MATURITY. By defeasing the bond, the LIABILITY is carried offBALANCE SHEET.",palgrave,0,47.12,12.7,0,11.32,14,12.06,15.5,15.43
DEFENDED TAKEOVER,A TAKEOVER that is opposed by the DIRECTORS of the TARGET company.,palgrave,0,67.76,6.8,0,7.93,6.1,9.5,7,8.13
DEFENSIVE SECURITY,"Any SECURITY that exhibits less VOLATILITY than the market as a whole (i.e., its BETA is less than 1.0), providing lower, but more stable, RETURNS. INVESTORS often acquire defensive securities during peri- ods of financial turmoil or uncertainty.",palgrave,0,43.73,11.9,0,12.76,14,12.47,13,14.97
DEFERRAL,"See DEFERRED CREDIT, DEFERRED DEBIT.",palgrave,0,49.48,7.6,0,13.08,11.2,13.36,1.5,2
DEFERRAL OPTION,"In REAL OPTION VALUATION, the OPTION a company has to defer or adjust the timing of INVESTMENT until some future period, after which the CAPITAL INVESTMENT project may become positive. Also known as TIMING OPTION. See also ABANDONMENT OPTION, EXPANSION OPTION.",palgrave,0,32.19,12.2,13,12.4,10.7,8.94,8.833333333,11.33
DEFERRED ANNUITY,An ANNUITY funded with single or multiple pay- ments that entitles the ANNUITANT or BENEFICIARY to benefits at a future date.,palgrave,0,24.78,15,0,11.14,12.6,11.45,16.5,19.83
DEFERRED ASSET,See DEFERRED DEBIT.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
DEFERRED CREDIT,"A payment received before it is earned (i.e., a prepay- ment), carried forward as a LIABILITY until the good or service is delivered. Also known as DEFERRED LIABILITY, DEFERRED REVENUE.",palgrave,0,47.79,10.3,0,10.37,10.6,9.64,8,8.67
DEFERRED DEBIT,"A prepaid, and often recurring, expense that is carried forward as an ASSET until the good or service is received.See DEFERRED DEBIT.See DEFERRED CREDIT.",palgrave,0,38.66,13.8,0,13.23,16.1,10.75,15,11.27
DEFERRED ORDINARY SHARE,"In the United Kingdom, DEFERRED STOCK.",palgrave,0,73.85,4.5,0,9.15,7.5,6.57,2,2.4
DEFERRED REVENUE,See DEFERRED CREDIT.,palgrave,0,59.97,5.6,0,7.32,8.3,14.31,0.5,1.2
DEFERRED STOCK,"A form of STOCK in which the SHAREHOLDERS are not entitled to any DIVIDEND payments for a fixed period of time, or until certain financial goals have been achieved. Deferred stock ranks SUBORDINATE to COMMON STOCK and PREFERRED STOCK.",palgrave,0,60.14,9.7,0,11.43,12,10.27,12.75,13.95
DEFERRED STRIKE OPTION,"An OVER-THE-COUNTER COMPLEX OPTION with a STRIKE PRICE that is set at a future time period, often as a specific function of the SPOT value of the UNDERLYING reference at that time. Once the strike is established, the CONTRACT assumes the form of a standard AMERICAN OPTION or EUROPEAN OPTION.",palgrave,0,46.1,13,0,10.51,14,9.3,16.5,14.8
DEFERRED TAX,An amount reserved by a company for TAX payments that will become due and payable in a period other than the current one.,palgrave,0,65.05,9.9,0,7.72,10.3,8.21,13.5,10.94
DEFICIENCY LETTER,"In the United States, a letter from the SECURITIES AND EXCHANGE COMMISSION to a company planning a NEW ISSUE of securities, indicating that its RED HERRING requires further revisions before registration is considered complete and the issue can proceed.",palgrave,0,14.97,20.9,0,14.69,23.9,10.43,27.5,21.75
DEFICIT FINANCING,The process of creating a BUDGET DEFICIT as a means of stimulating economic activity. Deficit financing may be funded through the issuance of BONDS.,palgrave,0,59.3,8,0,11.59,9.1,11.47,7.5,13.13
DEFINED BENEFIT PLAN,A form of PENSION PLAN established by an employer on behalf of an employee that uses an established formula to deter- mine the amount of an employee’s financial benefit on retirement. See alsoDEFINED CONTRIBUTION PLAN.,palgrave,0,36.79,12.5,0,12.41,12.1,10.82,14.25,18.43
DEFINED CONTRIBUTION PLAN,"A form of PENSION plan where the employer and employee make joint contributions to the plan; the total, plus accrued INVESTMENT income, forms the employee’s financial benefit on retirement. In the United States this is done via 401(K) and 403(b) accounts. See also DEFINED BENEFIT PLAN.",palgrave,0,55.95,9.3,13,11.24,10.9,11.6,10.66666667,13.08
DEFINITIVE SECURITY,"A DEBT or EQUITY SECURITY that is issued in the form of a physical certificate rather than as a dematerialized, electronic com- puter entry. See also BOOK ENTRY SECURITY, SCRIP.",palgrave,0,39.33,11.5,0,9.79,9.3,10.7,11,14
DEFLATION,"A phenomenon where prices of goods and services decline for an extended period of time as a result of limited DEMAND. Deflation is relatively uncommon, appearing only during certain severe RECESSIONS or DEPRESSIONS. See also DISINFLATION, INFLATION, STAGFLATION.",palgrave,0,24.74,13,14.6,15.24,12.8,12.16,10.33333333,17.71
DELEVERAGING,See RECAPITALIZATION.DELIVERY VERSUS PAYMENT.,palgrave,0,-93.33,27.3,0,34.8,30,15.68,2,21.6
DELIVERABLE,See  ASSET.,palgrave,0,35.61,8.8,0,-7.41,0.8,11.63,0,0.8
DELIVERABLE GRADE,See DELIVERABLE ASSET.,palgrave,0,9.21,12.7,0,11.15,11.5,14.31,1.5,14.53
DELIVERY,"The physical provision of an ASSET underlying a financial CONTRACT, generally associated with EXCHANGE-TRADED DERIVATIVES (though also applicable to certain OVER-THE-COUNTER DERIVATIVES, particularly those involving COMMODITIES). The selling party typically announces its intent to make delivery through a delivery note, which provides details regarding the asset and location.",palgrave,0,-12.11,20.9,0,21.7,23,12.39,21.5,22.1
DELIVERY DATE,"The specific date(s) during which DELIVERY of a phys- ical ASSET can be made under an EXCHANGE-TRADED DERIVATIVE . Each CONTRACT is governed by specific delivery dates and time periods, spanning from one day to more than a month.",palgrave,0,52.19,10.7,0,10.79,11.8,9.98,13.25,11.81
DELIVERY FACTOR,An adjustment that is applied to the price of a BOND that is DELIVERABLE under a FUTURES CONTRACT. The factor adjustment is required since bond futures contracts typically allow for a number of different securities to be delivered.,palgrave,0,43.73,11.9,0,12.01,12.1,9.57,13,12.86
DELIVERY OPTIONS,A series of selections that the seller of a FUTURES CONTRACT on a US GOVERNMENT BOND can make that can increase the,palgrave,0,66.07,9.5,0,7.49,9.7,9.75,13,10.62
DELIVERY POINT,"The specific location where a physical ASSET referenced through an EXCHANGE-TRADED DERIVATIVE can be accepted for DELIVERY or storage. Each contract is governed by specific dealing locations, including warehouse storage facility, port, or pipeline.",palgrave,0,20.38,14.6,0,18.09,16.8,13.3,14.5,18.56
DELIVERY RISK,See SETTLEMENT RISK.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,1.2
DELIVERY VERSUS PAYMENT (DVP),"A SETTLEMENT practice in the financial markets where payment, generally in cash, is due to the seller of SECURITIES once the buyer has received the securities in its account. If pay- ment is to be made before securities are received, the buyer faces SETTLEMENT RISK. Also known as CASH ON DELIVERY, DELIVER AGAINST CASH (DAC)/RECEIVE AGAINST PAYMENT (RAP).",palgrave,0,51.89,10.8,13,11.31,12.5,8.41,12.66666667,11.17
DELTA,"The change in the value of an OPTION for a change in the value of the UNDERLYING market reference, all other variables held constant. Thus, the value of a purchased CALL OPTION increases as the price of the underlying asset increases, by an amount estimated through delta. Similar determinations can be made for LONG POSITIONS and SHORT POSITIONS in PUTS and calls. The value of delta is often used as a measure of DIRECTIONAL RISK and can be used to create an appropriate  HEDGE. The deltas of the call and put under the BLACK-SCHOLES MODEL are given by:Dc = dc = N (d1) dsΔP = d p = N (−d1 ) dswhere2and S is the STOCK price, X is the STRIKE PRICE, t is the time to MATURITY,rf is the RISK-FREE RATE, σ2 is the VARIANCE, and where the N value of N(d1) can be obtained from a standard table of probability functions.The deltas of LONG and SHORT puts and calls are given as:See also DURATION, GAMMA, GREEKS, VEGA, THETA, RHO.",palgrave,0,46.24,15.1,13.3,8.48,16.6,10.04,12.4,16.17
DELTA NEUTRAL,"A PORTFOLIO of OPTIONS that is neutral with respect to its DELTA, meaning that it is HEDGED for small moves in the UNDERLYING. See also GAMMA NEUTRAL, VEGA NEUTRAL, THETA NEUTRAL.",palgrave,0,64.2,8.2,0,9.39,9,10.52,7.75,8.78
DEMAND,"The amount of a good or service that an individual or institution will be willing to purchase at a given price. In general, demand declines as price increases. See also ELASTICITY, SUPPLY.",palgrave,0,52.15,8.6,10.5,9.09,7,8.11,6,9.28
DEMAND DEPOSIT,See SIGHT DEPOSIT.,palgrave,0,93.81,0.9,0,3.43,5.2,0.15,0.5,1.2
DEMAND INFLATION,"INFLATION that results from an excess of demand, which causes the prices of goods and services to be bid up; the greater the demand, the more aggressive the price increases, and the larger the result- ing inflation. Also known as DEMAND PULL INFLATION. See also COST INFLATION, MONETARY INFLATION.",palgrave,0,54.93,9.6,12.5,10.84,10.7,8.96,10.83333333,9.79
DEMERGER,"A CORPORATE FINANCE transaction where a company seg- regates a portion of its business, places it in a separate corporate entity, and sells it to a third party or floats it through an INITIAL PUBLIC OFFERING. A demerger may occur if the company seeks to permanently exit a business segment that is no longer deemed essential to strategic growth, or if it wishesto raise additional CAPITAL for other corporate operations. SHARES in the newly formed companies are allocated to SHAREHOLDERS in exchange for their shares in the parent company. Also known as CARVE-OUT, SPIN-OFF, SPLIT-OFF.",palgrave,0,47.32,12.6,15.6,12.19,14.8,10.14,16.625,14.57
DEMUTUALIZATION,"The process of converting a member-owned MUTUAL ORGANIZATION into a PUBLIC COMPANY through the flotation of COMMON STOCK. Once demutualization occurs, members/customers are separate and distinct from owners/INVESTORS.",palgrave,0,23.43,13.5,0,20.23,17.6,12.23,11,11.31
DEPOSIT,"Funds placed by an individual or institution with a BANK or author- ized ORY, which are then used to finance operations. Acceptance of the deposit creates a LIABILITY for the accepting bank and requires pay- ment of periodic INTEREST and return of funds at MATURITY or on presen- tation. Deposits can be issued in a variety of forms, including CERTIFICATES OF , LOCKUP CERTIFICATES OF , INTERBANK S, NEGOTIABLE CERTIFICATES OF , and TIME S, and can be floated in most major CURRENCIES with MATURITIES ranging from over- night to 10 years.",palgrave,0,32.87,16.1,17.1,11.56,17,11.32,21.33333333,19.07
DEPOSIT FUTURE,"An INTEREST RATE FUTURES contract, bought or sold via an EXCHANGE, that references a short-term INTERBANK DEPOSIT rate, such as LIBOR, EURIBOR, or TIBOR. See also BILL FUTURE, BOND FUTURE.",palgrave,0,56.25,9.1,0,11.13,11,10.17,8.5,11.33
DEPOSIT NOTE,A MEDIUM-TERM NOTE issued by a BANK in the US markets.,palgrave,0,85.69,4,0,3.69,2.9,8.49,4.5,4.4
DEPOSITARY,"An AGENT authorized to place funds in a DEPOSITORY insti- tution such as a BANK, SECURITIES FIRM, or SAVINGS AND LOAN.",palgrave,0,50.16,11.5,0,8.7,11.1,10.69,13.5,14.11
DEPOSITORY,"An institution, such as a BANK, SECURITIES FIRM, or SAVINGS AND LOAN, that is authorized to hold DEPOSITS or SECURITIES on behalf of third parties. Also known as DEPOSIT-TAKING INSTITUTION.",palgrave,0,47.79,10.3,0,11.71,11.2,8.06,10.5,10
DEPRECIATED VALUE,See NET BOOK VALUE.,palgrave,0,92.8,1.3,0,-1.46,-0.7,0.2,1,1.6
DEPRESSION,"A severe economic downturn, where the output of a national ECONOMY (as measured by GROSS DOMESTIC PRODUCT) drops sharply, for an extended period of time. A depression may feature falling INVESTMENT, falling prices, and very high UNEMPLOYMENT and may be triggered by a FINANCIAL CRISIS (e.g., market crash, CREDIT CRISIS).",palgrave,0,37.64,14.2,0,12.94,16.7,13.09,17.5,18
DEREGULATION,"The process of removing or loosening rules, restrictions, and controls on companies, industries and/or markets, allowing for greater flexibilities and freedom in both tactical and strategic operations. Free market economies generally follow a policy of significant deregulation, with sufficient protections in place to guard consumers and other STAKEHOLDERS. See alsoREGULATION, REGULATOR.",palgrave,0,11.92,15.8,17.1,19.83,18.4,12.53,14.5,20.92
DERIVATIVE LAWSUIT,A legal action where one or more SHAREHOLDERS sue the CORPORATION to bring suit against the corporation’s BOARD OF DIRECTORS or executives for breach of duties. See also DIRECT LAWSUIT.CREDIT RATINGS that they cannot attract enough business without credit enhancement.,palgrave,0,42.72,12.3,0,15.49,15.6,10.55,13.5,14
DESCENDING BOTTOM,"A TECHNICAL ANALYSIS charting figure depict- ing a declining SECURITIES price or INDEX value over time, with ever-lower levels, generally considered to be a bearish signal. See also ASCENDING TOP,FALLING TOP, RISING BOTTOM.",palgrave,0,29.35,13.3,0,14.61,14.1,12.11,12.25,15.08
DESCENDING TOP,See FALLING TOP.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
DEUTSCHE AKTIENINDEX (DAX),"The BENCHMARK STOCK INDEX of the FRANKFURT STOCK EXCHANGE, comprised of 30 LARGE CAP STOCKS representing a broad range of industries.",palgrave,0,58.62,10.3,0,13.4,14.4,11.45,12.5,12.21
DEUTSCHE BORSE,"A financial EXCHANGE based in Germany estab- lished in 1992, which owns and operates the FRANKFURT STOCK EXCHANGE, the International Stock Exchange, and CLEARING and SETTLEMENT firm CLEARSTREAM, and co-owns DERIVATIVES exchange EUREX.",palgrave,0,29.52,17.3,0,17.59,23.9,12.93,21.5,18.05
DEUTSCHE BUNDESBANK,See BUNDESBANK.which generally arises from the interaction of free market forces over a period of time.,palgrave,0,38.32,11.9,0,13.63,12.5,10.35,12,16.4
DIE,See DESIGNATED INVESTMENT EXCHANGE.,palgrave,0,-8.73,15.5,0,21.75,18.3,11.73,3,21.6
DIFFERENTIAL SWAP,"An OVER-THE-COUNTER COMPLEX SWAP involv- ing a single CURRENCY exchange of floating INTEREST RATE references denominated in two different currencies (e.g., dollar LIBOR versus EURIBOR, payable in dollars). The swap permits an institution to express a view on for- eign interest rate movements without assuming currency RISK. Also known as a QUANTO SWAP.",palgrave,0,36.59,12.6,14.6,13.92,14.2,11.96,12.83333333,13.12
DIGITAL OPTION,See BINARY OPTION.,palgrave,0,34.59,9.2,0,3.43,5.2,14.31,1.5,14.53
DIMINISHING MARGINAL RETURN,A MICROECONOMIC theory indi- cating that the marginal contribution obtained from increasing any variable factor of production declines once a particular point has been reached. The output declines as each incremental unit of input is added.,palgrave,0,36.28,12.7,0,14.96,14.4,12.86,13,16.09
DIP FINANCING,"See DEBTOR-IN-POSSESSION FINANCING.SETTLEMENT RISK, SOVEREIGN RISK.",palgrave,0,-27.68,18.6,0,34.27,30.2,17.09,5,22.4
DIRECT DEBIT,A standing order granted by a PAYOR to a PAYEE to directly withdraw a fixed or variable sum of money from a BANK ACCOUNT.,palgrave,0,55.58,11.5,0,6.45,9.8,10.09,13,11.27
DIRECT INVESTMENT,See FOREIGN .,palgrave,0,35.61,8.8,0,-1.61,5.5,11.63,0.5,0.8
DIRECT LAWSUIT,"A legal action where one or more SHAREHOLDERS sue DIRECTORS or executives directly, rather than through the CORPORATION, for breach of duties. See also DERIVATIVE LAWSUIT.",palgrave,0,41.36,10.7,0,13.5,11.5,11.57,8.5,14.43
DIRECT LOSS,"In INSURANCE, a loss where the covered PERIL is the PROXIMATE CAUSE of damage. PROPERTY AND CASUALTY INSURANCE policies often limit protection to direct loss rather than direct loss andCONSEQUENTIAL LOSS.",palgrave,0,38.82,11.7,0,14.44,12.7,9.5,11.25,13.94
DIRECT MARKET ACCESS (DMA),"A process where a BUY-SIDE client makes use of electronic trading systems to access a SECURITIES market directly, with- out any involvement or intervention by a SELL-SIDE firm or BROKER. This can result in faster EXECUTION at a lower cost, and provides a greater degree of anonymity.",palgrave,0,47.62,12.5,0,11.38,14.1,11.86,14.75,14.51
DIRECT PLACEMENT,"The placement of a NEW ISSUE of SECURITIES by a company directly with an INSTITUTIONAL INVESTOR, without the use of a financial INTERMEDIARY. A direct placement, which can theoretically involve any type of security but in practice tends to involve DEBT issues, serves as an example of DISINTERMEDIATION. In general, only the largest compan- ies directly place their securities, as the process requires name recognition and strong financial standing in order to attract a suitable base of INVESTORS. Also known as DIRECT PLACING. See also DIRECT PUBLIC OFFERING.",palgrave,0,36.69,12.5,13.3,12.93,12.8,10.07,12,12.04
DIRECT PLACING,"See DIRECT PLACEMENT.encourage financial INTERMEDIARIES to produce EQUITY research and quote SECONDARY MARKETS, DPOs are relatively uncommon.",palgrave,0,3.46,17,0,24.07,21.7,16.55,14.5,20.92
DIRECT STAKEHOLDERS,"In GOVERNANCE, the parties most immediately and directly impacted by a company’s activities, prospects, and actions, gen- erally taken to include SHAREHOLDERS, CREDITORS, employees, customers, suppliers, professional service providers, and communities. See also IN.",palgrave,0,11.92,15.8,0,19.78,19.2,13.77,15,22.09
DIRECT WRITE-OFF,The practice of charging off BAD LOANS directly to the INCOME STATEMENT rather than through LOAN LOSS RESERVES.,palgrave,0,70.13,8,0,12.41,12.2,9.79,9,9.42
DIRECT WRITER,"An INSURER that writes INSURANCE POLICIES through a direct selling process or an exclusive AGENCY arrangement, or a REINSURER that accepts ceded RISKS directly from other insurers rather than REINSURANCE BROKERS.",palgrave,0,23.09,17.7,0,17.01,21.7,13.83,23.5,22.72
DIRECTED ORDER,An ORDER placed by a client with a BROKER or DEALER that instructs routing to a specific venue or EXCHANGE.,palgrave,0,68.1,8.7,0,7.95,9.3,10.94,11,10
DIRECTIONAL STRATEGY,An OPTION STRATEGY that seeks to take advan- tage of expected market direction rather than VOLATILITY to generate a profit. Common directional strategies include BULL SPREADS and BEAR SPREADS. See also VOLATILITY STRATEGY.,palgrave,0,43.39,9.9,12.5,14.25,11.2,10.88,7.166666667,10.46
DIRECTORS’ INTERESTS,"The SHARES, OPTIONS, and/or DEBENTURES held by a DIRECTOR in the company on whose board he or she serves. Such interests must be disclosed to STAKEHOLDERS.",palgrave,0,66.74,7.2,0,9.73,8.6,9.14,7.5,9.82
DIRTY BILL OF LADING,A BILL OF LADING reflecting the fact that goods being shipped are in some way damaged. Also known as BILL.,palgrave,0,86.71,3.7,0,5.89,4.1,7.29,4.5,6
DIRTY FLOAT,A situation where a CENTRAL BANK or monet- ary authority does not adjust the nation’s MONEY SUPPLY to offset any changes caused by active intervention in the FOREIGN EXCHANGE mar- kets. The dirty float may ultimately result in rising INFLATION. See alsoSTERILIZATION.,palgrave,0,41.7,12.7,0,13.23,14.4,12.2,13.5,14.11
DIRTY MONEY,"MONEY that is earned illegally, and which may be placed through the MONEY LAUNDERING process in order to conceal its source. Also known as BLACK MONEY.",palgrave,0,75.2,6,0,9.27,7.9,8.53,6.5,8.28
DIRTY PRICE,"The price of a BOND inclusive of ACCRUED INTEREST. Most SECONDARY MARKET bond transactions are quoted on dirty prices. See also CLEAN PRICE, INVOICE PRICE.",palgrave,0,71.51,5.3,8.8,10.11,7.4,9.73,4.166666667,8.12
DIRTY STOCK,Transferred COMMON STOCK that fails to convey good TITLE to the new buyer as a result of errors or omissions in form or authorization.,palgrave,0,55.58,11.5,0,9.58,12.4,10.75,13,11.27
DISASTER RECOVERY RISK,"The RISK of loss arising from damage to phys- ical infrastructure – which prohibits use of real estate, plant and equipment, technology, and communications – leading to a halt in operations; the disaster may be firm-specific, industry-based, regional, or system-wide. Disaster recov- ery risks can often be covered through specific BUSINESS INTERRUPTION INSURANCE. A subcategory of OPERATIONAL RISK. See also BUSINESS RECOVERY RISK.",palgrave,0,30.06,13,14.2,15.02,14.1,11.44,11.625,14.57
DISBURSEMENT,Granting of funds by a BANK to a client under a previously established CREDIT facility.,palgrave,0,47.79,10.3,0,9.97,9,11.75,10.5,14
DISCHARGE,"The release of a party from a legally binding CONTRACT or other obligation as a result of satisfactory performance under the terms of the agreement, or as a result of a legal proceeding.",palgrave,0,37.98,16.2,0,10.05,17.1,10.54,20.5,16.84
DISCOUNT,"(1) A reduction in the price of goods or the value of SECURITIES or other ASSETS as a result of SUPPLY and DEMAND or RISK factors. (2) The process of applying a  RATE to one or more future CASH FLOWS in order to obtain a PRESENT VALUE, NET PRESENT VALUE, or ENTERPRISE VALUE.",palgrave,0,34.6,21.6,0,7.04,24.8,11.03,30.5,24.22
DISCOUNT BOND,(1) A BOND that trades at a DISCOUNT to its PAR VALUE.(2)A form of BRADY BOND with an initial discount to par value but a higher INTEREST COUPON than the PAR BOND alternative. (1) See also PREMIUM BOND.,palgrave,0,49.83,15.8,0,7.15,18,10.92,22,18.36
DISCOUNT CURRENCY,A CURRENCY that trades at a lower value than another currency in the FORWARD market. See also PREMIUM CURRENCY.,palgrave,0,44.91,9.4,0,8.73,6.4,7.43,6.25,8.01
DISCOUNT FACTOR,"A factor that generates the PRESENT VALUE of a CASH FLOW when multiplied by a period’s estimated CASH FLOW. It is computed as:where r is the relevant DISCOUNT RATE or COST OF CAPITAL, t is the time period. Also known as PRESENT VALUE FACTOR.",palgrave,0,65.01,7.8,12.5,7.59,7.1,8.31,9,12.24
DISCOUNT HOUSE,"In the United Kingdom, a FINANCIAL INSTITUTION that is active in MONEY MARKET dealing and which actively discounts BILLS OF EXCHANGE and deals in AT CALL funds.",palgrave,0,44.07,13.8,0,11.38,15.4,10.24,16.5,15.24
DISCOUNT MARKET,"In the United Kingdom, the sector of the MONEY MARKET that includes BANKS, DISCOUNT HOUSES, and BROKERS special- izing in BILLS OF EXCHANGE. The discount market serves to generate short- term secured LIQUIDITY for these specialized institutions.(5) The SPOT RATE of interest. (1,2) See also DISCOUNT.",palgrave,0,39.67,13.4,0,13.41,16.2,11.3,14,13.55
DISCOUNT SWAP,An OVER-THE-COUNTER NONPAR SWAP where the receiver of FIXED RATES is granted an upfront payment by the FLOATING RATE payer in exchange for accepting a lower ongoing fixed rate inflow. See also PREMIUM SWAP.,palgrave,0,54.22,9.9,0,11.25,11,10.98,11,11.51
DISCOUNT WINDOW,"In the United States, a facility, made available by the FEDERAL RESERVE BANKS, that permits authorized MEMBER BANKS to bor- row short-term funds on an emergency basis in order to balance cash outflows.",palgrave,0,37.98,16.2,0,11.96,19.2,11.49,20.5,18.05
DISCOUNT YIELD,"The effective YIELD of any FIXED INCOME instrument issued on a discount, rather than COUPON-bearing, basis, generally computed as:where Face is FACE VALUE, P is purchase price, and nMAT is the number of days until MATURITY. See also BOND EQUIVALENT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.where CF is the estimated cash flow, r is the company’s COST OF CAPITAL, g is the estimated, and constant, growth rate.A more refined version assumes that cash flows vary from period to period, and is given as:where CFt is an estimated cash flow generated in time period t.Since estimating cash flows into infinity is challenging a further refinement of the model uses a combination of discounted cash flow estimates over a spe- cific time horizon, along with an estimate of TERMINAL VALUE.+where N is the number of periods over which a cash flow can be reasonably estimated, TV is the estimated terminal value of the company.The model can also be adapted to value a company’s stock based on FREE CASH FLOW TO EQUITY, under the following general formula:where r is the company’s cost of EQUITY.Alternatively, it can be used to value the firm (rather than the stock) under the FREE CASH FLOW TO FIRM formula:where r is the firm’s WEIGHTED AVERAGE COST OF CAPITAL.For both free cash flow methods, the terminal value estimate can also be used after a specific time horizon. See also DIVIDEND DISCOUNT MODEL, EARNINGS-BASED MODEL, FREE CASH FLOW TO EQUITY, FREE CASH FLOW TO FIRM.",palgrave,0,-13.49,35.9,26.5,11.92,44,11.94,34,37.78
DISCOUNTED PAYBACK PERIOD,"The time required to pay back the ori- ginal INVESTMENTS in terms of DISCOUNTED future CASH FLOWS, gener- ally expressed in terms of years. See also PAYBACK PERIOD.",palgrave,0,65.73,7.6,0,9.45,8.6,12.23,7.5,9.89
DISCRETE BARRIER OPTION,See PARTIAL BARRIER OPTION.,palgrave,0,33.58,9.6,0,10.15,8.8,15.68,2,11.6
DISCRETIONARY ACCOUNT,A customer BROKERAGE ACCOUNT where the client gives the BROKER authorization to act on his/her behalf in buying and selling SECURITIES. The client may limit the discretion through time and/ or price constraints.,palgrave,0,54.73,9.7,0,13.16,12.3,10.2,10.25,11.45
DISCRETIONARY ORDER,"An ORDER for the purchase or sale of SECURITIES, COMMODITIES, or other financial ASSETS given by a client to a BROKER, where the broker has flexibility to execute a deal at the price and time deemed best.",palgrave,0,42.38,16.5,0,9.01,18.5,9.74,23.5,20.21
DISCRETIONARY TRUST,"A TRUST or INVESTMENT trust where a TRUSTEE or other designated person has the ability to invest the BENEFICIARY’S ASSETS as deemed best, without specific constraints or within certain general param- eters. See also BLIND TRUST.",palgrave,0,44.75,11.5,0,12.87,12.8,10.23,12,12.76
DISCRIMINATING MONOPOLY,"A state where a company with MONOPOLY power charges different prices in different markets, according to the character- istics of each market. This presumes the monopolist can clearly identify thesource of DEMAND in each market and can properly gauge PRICE ELASTICITY; if it can, it may be able to maximize its profitability.",palgrave,0,36.63,14.6,0,12.77,16.3,10.39,19,17.32
DISECONOMIES OF SCALE,"The relative cost increases that a company may experience once excessive expansion within a market segment has occurred. These may relate to duplicative efforts, slower response time, product cannibal- ization, regulatory challenges, and so forth. See also ECONOMIES OF SCALE.",palgrave,0,41.06,10.8,13,15.07,13.2,12.19,8.666666667,13.32
DISENFRANCHISE,The process of removing VOTING RIGHTS from a class of COMMON STOCK so that INVESTORS in that class are only entitled to RENT RIGHTS. See also DISENFRANCHISING TRANSACTION.,palgrave,0,65.73,7.6,0,11.53,9.8,9.41,8,11.31
DISENFRANCHISING TRANSACTION,"A financial RESTRUCTURING trans- action, such as a DUAL CLASS RECAPITALIZATION, that removes VOTING RIGHTS from certain COMMON STOCK INVESTORS.",palgrave,0,25.8,14.6,0,17.52,17.8,13.31,13,14
DISHONOR,The act of refusing to accept or pay a BILL OF EXCHANGE or of failing to honor a CHECK or other financial CONTRACT.,palgrave,0,65.05,9.9,0,6.22,9.1,7.52,13.5,12.68
DISINFLATION,"A decline in the rate of INFLATION, indicating a decline in the rate at which prices of goods and services are rising. See also DEFLATION.",palgrave,0,67.25,7,0,7.58,6.3,8.05,6.75,9.8
DISINVESTMENT,See DIVESTMENT.,palgrave,0,35.61,8.8,0,7.1,12.5,11.63,1,20.8
DISPLAYED LIQUIDITY,"TRADING VOLUME, particularly in STOCKS, that is visible to the market at large, and which reflects available MARKET DEPTH. Displayed liquidity excludes HIDDEN ORDERS, the hidden portion of RESERVE ORDERS, positions held back in the books of MARKET MAKERS, as well as those residing in DARK POOLS.",palgrave,0,47.62,12.5,0,12.89,15.4,11.19,14.25,13.66
DISPOSABLE INCOME,"The amount of discretionary income left for SAVINGS, INVESTMENT, or consumption once mandatory EXPENSES and TAXES have been paid. Disposable income can be measured at both the household level and the national level.",palgrave,0,46.27,10.9,0,13.86,13,9.24,11.75,15.08
DISPOSAL VALUE,See RESIDUAL VALUE.,palgrave,0,34.59,9.2,0,5.35,6.8,9.05,1.5,14.53
DISTRESSED ASSET,"An ASSET, generally a SECURITY or real property, that features a sharply reduced value as a result of actual or potential losses",palgrave,0,23.77,15.4,0,10.39,12.5,12.62,16,17.89
DISTRESSED FUND,See VULTURE FUND.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
DISTRIBUTABLE PROFITS,See DISTRIBUTABLE RESERVES.,palgrave,0,59.97,5.6,0,20.83,19.3,14.31,0.5,1.2
DISTRIBUTABLE RESERVES,"In the United Kingdom, the amount of money a company has available for distribution to INVESTORS in the form of DIVIDENDS. The maximum amount that is ultimately distributable by PUBLIC LIMITED COMPANIES is governed via the Companies Act, i.e., distrib- utable reserves cannot exceed an amount that causes NET ASSETS to become less than SHARE CAPITAL plus UN. Also known asDISTRIBUTABLE PROFITS.",palgrave,0,50.46,11.4,13.6,13.05,14.2,10.27,13.66666667,12.8
DIVERSIFIABLE RISK,"A RISK that is unique to a company, ASSET, or mar- ket, meaning that it can be reduced or eliminated by holding a PORTFOLIO of assets that have little or no CORRELATION.Also known as IDIOSYNCRATIC RISK, NONSYSTEMATIC RISK, UNSYSTEMATIC RISK, SPECIFIC RISK. See also DIVERSIFICATION, NONDIVERSIFIABLE RISK.returns for a given SECURITY can thus be divided into diversifiable and non- diversifiable components:where β2j is the square of the beta of security j, σ2(rm) is the VARIANCE of the market portfolio, and σ2(εj) is the RESIDUAL VARIANCE of security j. See also DIVERSIFIABLE RISK, NONDIVERSIFIABLE RISK, PORTFOLIO DIVERSIFICATION.Additional references: Markowitz (1952); Ross (1976); Sharpe (1971).",palgrave,0,11.28,20.2,19.3,15.27,23.2,11.62,24.66666667,19.93
DIVESTITURE,"A CORPORATE FINANCE transaction where a company sells a SUBSIDIARY or a portion of its operations to a third party. A divestiture typ- ically occurs when the company no longer views the ASSETS as essential to its business, prefers to refocus its operations more narrowly, or needs to raise CAPITAL for other purposes. See also DEMERGER.",palgrave,0,44.03,11.8,15,11.2,11.5,10.49,13.66666667,13.91
DIVESTMENT,"The process of removing invested CAPITAL from a project, INVESTMENT, or other ASSET as a result of a change in strategy or actual/per- ceived RISK in relation to RETURN. Also known as DISINVESTMENT.",palgrave,0,46.27,10.9,0,10.55,10.5,11.15,12.25,15.08
DIVIDED COVER,"INSURANCE CONTRACTS on the same property and PERIL purchased by the INSURED from two or more INSURERS. In the event of a CLAIM, the total SETTLEMENT will never exceed the amount of the loss, and will be divided on a PRO-RATA basis between insurers. See alsoAPPORTIONMENT, OVERLAPPING INSURANCE, PRIMACY.",palgrave,0,46.47,10.8,14.1,11.66,11.2,10.25,11.83333333,12.23
DIVIDEND,"A periodic amount a company pays from its net EARNINGS to COMMON STOCK and/or PREFERRED STOCK INVESTORS; dividend payments are generally discretionary, meaning they can be suspended at will, though in certain instances they are made mandatory through terms of a SECURITIES issue. In most systems the BOARD OF DIRECTORS is responsible for settingdividend policy. Dividends are generally paid in cash (as CASH DIVIDENDS) though in some cases they may be paid in the form of additional SHARES (as STOCK DIVIDENDS). See also DIVIDEND YIELD, PAYOUT RATIO.",palgrave,0,40.89,13,15.2,12.76,14.5,9.98,15.375,14.7
DIVIDEND COVER,See PAYOUT RATIO.,palgrave,0,59.97,5.6,0,1.52,3.6,14.31,0.5,1.2
DIVIDEND DISCOUNT MODEL,"A quantitative VALUATION measure, based on the DISCOUNTED CASH FLOW framework, that is used to estimate the fair value of a company’s COMMON STOCK based on the discounted value of projected future DIVIDENDS. The price of a firm’s stock can be esti- mated via:where Divi is the projected dividend payable in period i, r is the firm’s DISCOUNT RATE, and n is the number of periods. Note that for stocks that do not currently pay out a dividend, the assumption is made that a dividend will be made starting in some future period.Value can also be estimated through growth and dividend assumptions. No growth and constant dividend:Growth and constant dividend:where g is the dividend growth rate and all other terms are as defined above.Additional levels of precision can be added by assuming that dividends will change in stages as the company progresses through its life cycle (e.g., two-stage growth, three-stage growth). See also DISCOUNTED CASH FLOW VALUATION MODEL, EARNINGS-BASED MODEL.Additional references: Lintner (1956); Miller and Modigliani (1961).",palgrave,0,37.57,16.3,18,13.12,20.4,10.12,22.66666667,17.91
DIVIDEND IN ARREARS,A DIVIDEND that has accumulated for one or more payment periods and is payable to the current holders of CUMULATIVE PREFERRED STOCK. Dividends cannot be paid to COMMON STOCK or NONCUMULATIVE PREFERRED STOCK INVESTORS until the arrears have been made current.,palgrave,0,42.21,12.5,0,13.29,13.9,9.66,13.25,14.05
DIVIDEND PAYOUT RATIO,"The amount of EARNINGS paid out in the form of DIVIDENDS by a company to its INVESTORS, computed as:where Div is the amount of dividends paid in the current period, E is the amount of earnings in the current period.",palgrave,0,47.8,16.5,0,8.25,19.3,8.78,26,19
DIVIDEND WAIVER,"A process where a significant INVESTOR in a company opts not to accept a DIVIDEND payment, allowing the company to retain the cash in its accounts.",palgrave,0,45.09,13.4,0,9.81,13.7,9.78,18,15.02
DIVIDEND YIELD,"The effective YIELD of a share of COMMON STOCK, typ- ically calculated as:where Divi is the DIVIDEND paid in period i and Si is the price of the stock in period i. See also PAYOUT RATIO.",palgrave,0,61.67,9.1,0,5.97,7.3,9.79,11.5,11.64
DJIA,See DOW JONES INDUSTRIAL AVERAGE.,palgrave,0,32.56,10,0,10.76,8.4,16.52,3.5,18
DK,"Abbreviated form of “don’t know,” meaning one of the parties to a transaction disputes, refutes, or claims not to know, certain details of a trade. A trade that has been “’d” remains unreconciled until one of the parties concedes to a change in details or it is cancelled. Also known as OUT TRADE, QUESTIONED TRADE.",palgrave,0,69.82,8.1,8.8,9.4,10.1,8.85,10.16666667,9.5
DMA,See DIRECT MARKET ACCESS.,palgrave,0,50.5,7.2,0,7.25,6.5,7.78,1,1.6
DO NOT REDUCE ORDER,An ORDER with a price that is not to be adjusted in case of a STOCK SPLIT or DIVIDEND payout.,palgrave,0,76.56,7.6,0,3.89,6,7.79,12,12
DOCUMENTARY CREDIT,"A commercial LETTER OF CREDIT committing the BANK to pay a named BENEFICIARY, such as a seller of goods, once a con- firming document has been delivered to the buyer; the documentary credit is widely used in international TRADE transactions, where BILLS OF LADING often serve as the evidencing document. Also known as DOCUMENTARY DRAFT.",palgrave,0,35.1,15.2,0,12.02,16.5,10.46,19.25,17.55
DOCUMENTARY DRAFT,See DOCUMENTARY CREDIT.,palgrave,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
DOCUMENTS AGAINST ACCEPTANCE,"In international TRADE, a pro- cess where an exporter sends shipping documents with a relevant BILL OF EXCHANGE to a BANK, which releases the goods when the bill has been accepted. See also CASH AGAINST DOCUMENTS.",palgrave,0,61.67,9.1,0,10.32,10.8,8.92,12,12.76
DOG,A STOCK that performs poorly compared to its peers or the broad market. See also DEAD MONEY.,palgrave,0,79.77,4.2,0,5.88,3.9,7.77,3.25,3.4
DOG AND PONY SHOW,See ROADSHOW.,palgrave,0,77.91,2.9,0,1.3,7.8,11.63,0,0.8
DOGS OF THE DOW,"In the United States, an INVESTMENT strategy based on purchasing the 10 stocks in the DOW JONES INDUSTRIAL AVERAGE that provide the greatest DIVIDEND YIELD, and holding the stocks during the course of the year.",palgrave,0,44.41,15.8,0,11.96,19.8,12.14,23.5,20.86
DOLLAR ROLL,"A financial transaction involving the sale, and future repur- chase, of MORTGAGE-BACKED SECURITIES for cash. Through the exchange the selling party effectively borrows funds from the purchasing party on a collater- alized basis for a period that normally covers several days to several weeks. The dollar roll is essentially a form of mortgage-backed REPURCHASE AGREEMENT.",palgrave,0,35.98,12.8,15.5,15.2,14.9,11.43,13.83333333,14.59
DOLLARIZATION,"A process where a country adopts, either partially or wholly, the US dollar in place of its own CURRENCY.",palgrave,0,69.11,8.3,0,8.36,9.6,8.73,11.5,11.81
DOUBLE BOTTOM,A TECHNICAL ANALYSIS charting formation that depicts two SUPPORT LEVELS followed by a BREAKOUT. The multiple rebounds are indicative of support and possible strength on the upside. Also known as a W FORMATION. See also DOUBLE TOP.,palgrave,0,53.58,8.1,10.7,10.76,7.9,10.07,5.375,9.13
DOUBLE DIPPING,"An unethical (and sometimes illegal) practice where a BROKER sells COMMISSION-based products through a client’s fee-basedaccount, earning REVENUES from two sources and effectively overcharging the client.",palgrave,0,28.17,15.8,0,21.59,24,15.25,19,18.09
DOUBLE LEVERAGE,"Borrowing at multiple levels within the corporate struc- ture, such as the HOLDING COMPANY and a primary operating SUBSIDIARY. Double leverage is generally considered to be a more accurate reflection of a group’s true indebtedness as it incorporates LIABILITIES from multiple entities. See also STRUCTURAL SUBORDINATION.",palgrave,0,22.11,14,16.3,16.17,14.4,12.29,13,18.29
DOUBLE RECOVERY,"An illegal attempt by an INSURED to file mul- tiple CLAIMS on a single loss event with multiple INSURERS. Double recov- ery violates the principle of INDEMNITY, which states that an INSURANCE CONTRACT cannot result in a profit for the insured.",palgrave,0,50.67,11.3,0,10.73,12.1,11.59,13.75,15.03
DOUBLE TAXATION,"(1) A process where the income of an individual or company is taxed in multiple TAX jurisdictions. In order to avoid or reduce this burden, many countries have tax treaties that allow for an elimination or reduction. (2) The phenomenon where corporate earnings paid in the form of DIVIDENDS are taxed twice, once at the corporate level, and a second time at the INVESTOR level.",palgrave,0,38.49,16,0,10.34,17.5,9.86,21.25,17.92
DOUBLE TOP,A TECHNICAL ANALYSIS charting formation that depicts two RESISTANCE LEVELS followed by a BREAKOUT. The multiple declines suggest resistance on the upside and possible weakness on the downside. Also known as a REVERSE W FORMATION. See also DOUBLE BOTTOM.,palgrave,0,44.61,9.5,11.2,12.62,9.4,10.2,5.875,9.05
DOUBLING OPTION,A right granted by INVESTORS to an ISSUER of BONDS that allows the issuer to double the amount of the SINKING FUND provision in order to accelerate repayment and ultimate redemption.,palgrave,0,40.01,15.4,0,11.56,17.1,11.29,20.5,18.85
DOW THEORY,"The study of TECHNICAL ANALYSIS, efficient markets, and market cycles developed by Charles Dow in the early twentieth century. Under Dow theory, market cycles follow a primary trend (a long-term phase of approximately 4 years), which can be impacted by a secondary trend (short- term departures of STOCKS from trend lines) as well as a tertiary trend (short- term fluctuations in stock prices).",palgrave,0,39.5,15.6,0,12.49,19.1,11.46,21.75,20.22
DOWN AND IN OPTION,"A COMPLEX OPTION that creates a stand- ard EUROPEAN OPTION if the price of the UNDERLYING market reference declines through a predefined BARRIER. See also BARRIER OPTION, DOWN AND OUT OPTION, KNOCK-IN OPTION, REVERSE KNOCK-IN OPTION, UP AND IN OPTION, UP AND OUT OPTION.",palgrave,0,49.15,11.9,0,11.31,13.9,8.68,14,13.35
DOWN AND OUT OPTION,"A COMPLEX OPTION that extinguishes a stand- ard EUROPEAN OPTION if the price of the UNDERLYING market reference declines through a predefined BARRIER. If the barrier is not breached the European option remains in effect. See also BARRIER OPTION, DOWN AND IN OPTION, KNOCK-OUT OPTION, REVERSE KNOCK-OUT OPTION, UP AND IN OPTION, UP AND OUT OPTION.",palgrave,0,44.03,11.8,13,11.72,12.4,8.51,12.33333333,11.77
DOWN ROUND,"A second, third, or fourth round of VENTURE CAPITAL financing that is done at lower valuation levels than early rounds, suggesting the company may be worth less than initially predicted.",palgrave,0,32.57,16.2,0,12.89,18.2,9.86,22,18.67
DOWNSIZING,A process where a company reduces its staffing and/or pro- ductive facilities as a means of managing costs more effectively and increasing its operating flexibility. Downsizing tends to occur when a company is becom- ing uncompetitive or during the contraction phase of the BUSINESS CYCLE. See also RIGHTSIZING.,palgrave,0,38.32,11.9,14.6,13.63,12.5,11.67,12,14.73
DOWNSTREAM,"(1) The process of channeling funds from a parent company or holding company to a SUBSIDIARY. This may occur when the parent or holding company can borrow on more favorable terms, or when the subsidiary is restricted in some way from raising funds directly. (2) The segment of the energy industry that is focused on refining, transportation, and marketing/ retailing. See also UPSTREAM.",palgrave,0,50.16,11.5,15,11.43,13.3,10.19,14.83333333,14.75
DOWNTICK,See MINUS TICK.,palgrave,0,93.81,0.9,0,-2.38,0.5,9.05,0.5,1.2
DPC,See DERIVATIVE PRODUCT COMPANY.,palgrave,0,-8.73,15.5,0,15.95,13.5,11.73,3,11.6
DPO,See DIRECT PUBLIC OFFERING.,palgrave,0,33.58,9.6,0,10.15,8.8,7.78,2,11.6
DRAFT,(1) See BANK . (2) See BILL OF EXCHANGE.,palgrave,0,88.74,2.9,0,-0.81,1.4,7.98,3.5,3.2
DRAG ALONG RIGHTS,Legal rights that allow majority SHAREHOLDERS of a company to force MINORITY INTERESTS to sell their SHARES in the event of a TAKEOVER bid; this is necessary in situations where the acquiring company requires 100% control. Drag along rights must be specifically negotiated in a CORPORATE FINANCE transaction. See also TAG ALONG RIGHTS.,palgrave,0,45.05,11.4,15,12.87,12.6,10.77,13.16666667,15.38
DRAGNET CLAUSE,See CROSS COLLATERAL AGREEMENT.,palgrave,0,33.58,9.6,0,15.95,13.5,11.73,2,11.6
DRAGON,"A public BOND issued simultaneously in various Asian centers by a non-Asian company, denominated in a local Asian currency or US dollars. The dragon is effectively a regional form of the GLOBAL BOND.",palgrave,0,37.81,12.1,0,11.08,10.7,11.63,11.75,13.87
DRAWDOWN,"(1) A performance measure applied to HEDGE FUNDS, indi- cating the degree to which losses have reduced INVESTOR CAPITAL. (2) Reduction in capital within an investor’s BROKER account as a result of losses.(3)The disbursement and use of funds by a BORROWER under a REVOLVING CREDIT FACILITY or other financing arrangement. (3) See also FLEXIBLE DRAWDOWN.",palgrave,0,-1.28,27.1,0,13.54,31.6,14.12,38.5,28.55
DRAWEE,"A party that is instructed to pay under a BILL OF EXCHANGE or CHECK, as indicated by the DRAWER. In the case of a bill, the drawee may choose to have it accepted, or GUARANTEED, by an ACCEPTOR in exchange for a fee. See also DRAWER.",palgrave,0,72.87,6.9,10.5,4.81,5.4,6.8,8.333333333,10.47
DRAWER,"The person that issues a CHECK or executes a BILL OF EXCHANGE, requiring the DRAWEE to pay upon presentation and acceptance.",palgrave,0,50.16,11.5,0,10.91,12.4,9.19,14.5,16.02
DROP LOCK,"A mechanism where the INTEREST RATE on a FLOATING RATE NOTE or BOND is fixed once rates fall below a predefined level. The drop lock allows the ISSUER to lock in a lower rate of funding. See also  NOTE, SPREAD LOCK.",palgrave,0,74.49,6.3,8.8,6.2,5.4,8.55,6.833333333,8.41
DROP LOCK NOTE,A FLOATING RATE NOTE or BOND that converts into a fixed COUPON obligation when a reference INTEREST RATE is breached on the downside. See also DROP LOCK.,palgrave,0,74.69,6.2,0,8.98,7.5,10.15,7.25,9.84
DROPDOWN,A clause in a REINSURANCE CONTRACT that requires the REINSURER to provide coverage to an underlying INSURED if the INSURER cannot fulfill its obligations under the policy CEDED. A dropdown is most common in a FACULTATIVE REINSURANCE agreement where individual pol- icies are analyzed and accepted.,palgrave,0,31.21,14.6,0,14.39,15.9,12.67,17.5,18.77
DRY POWDER,(1) Excess cash reserves held by a company to meet future obligations or to capitalize on potential ACQUISITIONS or CAPITAL INVESTMENTS. (2) Cash held by INVESTORS that can be allocated to attract- ive INVESTMENT opportunities.,palgrave,0,10.57,20.5,0,14.11,22,12.59,27.5,23.14
DTCC,See DEPOSITORY TRUST AND CLEARING CORPORATION.,palgrave,0,6.17,13.9,0,17.85,13.7,11.83,4,15.73
DUAL CLASS STOCK,"The COMMON STOCK of a CORPORATION that comes in two forms, one with enhanced VOTING RIGHTS and one with normal vot- ing rights. The two classes may also carry different DIVIDEND rights. See alsoCONTROL STOCK, DUAL CLASS RECAPITALIZATION.",palgrave,0,58.58,8.2,10.5,11.47,9.7,10.5,7,9.29
DUAL CURRENCY BOND,"A BOND that pays INTEREST in one CURRENCY and PRINCIPAL redemption in a second currency. The FOREIGN EXCHANGE RATES associated with the COUPON and principal CASH FLOWS may be spe- cified at the time of issuance, or they may be based on prevailing SPOT RATES at the time the coupons and principal are paid. A company may choose to issue a dual currency bond to HEDGE any FOREIGN EXCHANGE flows from its operations, or take a speculative view on currencies in order to obtain a lower COST OF CAPITAL. Also known as FOREIGN CURRENCY BOND.",palgrave,0,55.78,11.4,14.6,9.52,12.3,8.97,15.875,13.31
DUAL LISTED COMPANY,"Two PUBLIC COMPANIES that are constituted separately, retain separate identities, feature individual EXCHANGE listings but combine their business operations for purposes of creating goods and ser- vices. See also PUBLIC LIMITED COMPANY.",palgrave,0,12.94,15.4,0,18.67,16.8,11.83,13.5,17.65
DUAL LISTED COMPANY ARBITRAGE,"An ARBITRAGE strategy that seeks to exploit discrepancies between the SHARE prices of the constituent compan- ies. An INVESTOR seeks to profit by purchasing the STOCK of the underval- ued company and arranging a SHORT SALE of the overvalued company, with an expectation that the two will converge to a theoretical PARITY value over time.",palgrave,0,35.1,15.2,0,12.31,16.6,10.74,19.75,18.27
DUAL PURPOSE FUND,"A MUTUAL FUND or UNIT TRUST that issues two separate types of SECURITIES, including income shares, which are entitled only to the DIVIDEND flows from the underlying securities, and capital shares, which are entitled only to any resulting capital gains.",palgrave,0,13.96,21.3,0,13.47,23.7,11.15,32,23
DUAL TRIGGER,"An INSURANCE mechanism that provides the INSURED with a payout only if two separate TRIGGER events occur. One trigger is oftenMULTIPLE TRIGGER PRODUCT, TRIPLE TRIGGER.",palgrave,0,41.87,10.5,0,14.31,11.8,11.2,7.25,9.8
DUE DATE,The maturity date indicated on a BILL OF EXCHANGE.,palgrave,0,45.42,9.2,0,7.39,5.1,7.59,5.5,12.49
DUMMY DIRECTOR,A DIRECTOR serving on the BOARD of a com- pany who votes in favor of actions directed by a person who is not a director. Also known as ACCOMMODATION DIRECTOR.,palgrave,0,56.25,9.1,0,6.49,6.3,8.59,9,10
DUOPOLY,"A market that only features two sellers of goods or services, sug- gesting the sellers have a considerable degree of influence in setting prices. See also DUOPSONY, MONOPOLY, OLIGOPOLY.",palgrave,0,48.3,10.1,0,12.35,11.3,10.89,8.25,11.32
DUOPSONY,"A market that only features two buyers of goods or services, sug- gesting the buyers have an ability to influence the prices paid to suppliers. See also DUOPOLY, MONOPSONY, OLIGOPSONY.",palgrave,0,56.25,9.1,0,10.95,10.4,10.7,8.5,11.33
DUPONT FORMULA,"A financial performance which separates the trad- itional RETURN ON EQUITY (ROE) ratio into its constituent parts to provide further insight into performance and trends. Under this framework a company can isolate the effects of net profit margin, ASSET TURNOVER, and LEVERAGE. The Dupont formula is based on the fundamental ROE ratio:⎝⇒ = ⎛ Inc ⎞ ⎛ Sales⎞ ⎛ TA⎞ ROE ⎜ Sales⎟ ⎜ TA ⎟ ⎜ Eq ⎟where Inc is net income, Sales is a measure of sales or turnover, TA is total assets, Eq is total equity.",palgrave,0,50.2,13.5,13,9.12,14.9,10.83,17.83333333,14.45
DURABLE GOOD,"An ASSET that has a life span of at least three years, e.g., appliances, electronics, automobiles. Durable goods form part of the PERSONAL CONSUMPTION component of GROSS DOMESTIC PRODUCT (and GROSS NATIONAL PRODUCT). See also CAPITAL GOOD, NON.1 ⎡1C+2C+++where C is semiannual coupon interest, y is the semiannual yield, n is the number of semiannual periods, and M is the maturity value of the bond (gen- erally PAR VALUE).Extensions of the duration formula include Macaulay’s duration, computed as:(1 + y)and MODIFIED DURATION, calculated as:(1 + y)See also DELTA, CONVEXITY.",palgrave,0,25.12,17,19.6,13.59,19.5,13.06,23.16666667,20.8
DUTCH AUCTION,An AUCTION MARKET technique used in certain mar- ketplaces where the price of a SECURITY or ASSET being sold is lowered until a BID is obtained; the remaining orders are then filled at the same price. See also ENGLISH AUCTION.,palgrave,0,59.64,9.9,0,9.28,10.6,8.97,11,10
DUTY,A TAX imposed by a government authority on a specific good or ser- vice. See also STAMP .,palgrave,0,62.85,6.6,0,4.2,2.8,8.7,5,8.11
DUTY OF LOYALTY,A legal requirement in certain systems where the BOARD OF DIRECTORS and EXECUTIVE MANAGEMENT must ensure that any action taken is done in good faith and with the best interests of SHAREHOLDERS in mind. A breach of duty of loyalty can lead to legal action by shareholders. See also DUTY OF CARE.,palgrave,0,62.38,8.9,12.5,9.22,9.2,8.14,11.33333333,12.3
DVP,See DELIVERY VERSUS PAYMENT.,palgrave,0,33.58,9.6,0,11.6,10,11.73,2,11.6
DWARF,"A 15-year MORTGAGE-BACKED SECURITY issued by the FEDERAL NATIONAL MORTGAGE ASSOCIATION. See also GNOME, MIDGET.",palgrave,0,21.56,12.1,0,15.91,12.8,14.54,5.25,13.67
E-MINI,"An electronically traded EXCHANGE-TRADED DERIVATIVE contract with a denomination that is a fraction of a standard contract denom- ination, allowing retail or individual customers to participate. See also MINI.",palgrave,0,6,16,0,17.33,15.2,12.52,10.75,14.08
E-TICKET,See ELECTRONIC TICKET.,palgrave,0,34.59,9.2,0,11.15,11.5,9.05,1.5,14.53
EAD,See EXPOSURE AT DEFAULT.,palgrave,0,50.5,7.2,0,5.8,5.3,11.73,2,11.6
EAR,See EFFECTIVE ANNUAL RATE.,palgrave,0,33.58,9.6,0,8.7,7.7,11.73,3,21.6
EARNED SURPLUS,See RETAINED EARNINGS.,palgrave,0,59.97,5.6,0,11.15,11.5,14.31,0.5,1.2
EARNINGS-BASED MODEL,"A quantitative VALUATION measure used to estimate the fair value of a company’s STOCK based on its ability to generate future earnings.The basic form of this process assumes a constant growth rate in earnings and is given as:where k is the DIVIDEND PAYOUT RATIO, r is the company’s COST OF CAPITAL, g is the estimated, and constant, growth rate.A changing growth coefficient requires estimates of the potential return on reinvested capital and its impact on dividend payouts from period to period. Since predicting earnings and dividends into infinity is challenging, a refine- ment of the model uses a combination of earnings and payout estimates over a specific time horizon, along with an estimate of TERMINAL VALUE.+where N is the number of periods over which earnings can be reason- ably estimated, TV is the estimated terminal value of the company. See alsoDISCOUNTED CASH FLOW VALUATION MODEL, DIVIDEND DISCOUNT MODEL.",palgrave,0,4.52,24.9,23.2,13.42,28,11.2,37,25.67
AMORTIZATION (EBITDA),"A commonly used measure of a company’s core operating profitability. By removing INTEREST, TAXES, DEPRECIATION, and AMORTIZATION, the analysis focuses on a company’s ability to gener- ate REVENUES and manage its production costs. See also EARNINGS BEFORE INTEREST AND TAXES.where NI is net income, Divpref is preferred stock dividends, and CSO/S is the weighted average common stock shares outstanding (including those associ- ated with options and convertible bonds for a fully diluted calculation).",palgrave,0,21.43,16.3,18.6,15.84,18.3,13.06,19.5,20.68
EARNINGS RETAINED,"In the United Kingdom, RETAINED EARNINGS.",palgrave,0,56.93,6.8,0,12.05,9.8,9.2,2,2.4
EARNINGS SURPRISE,An unexpected difference between the EARNINGS announced by a company and the CONSENSUS EARNINGS esti- mated by financial analysts. Earnings surprises may be positive or negative.,palgrave,0,24.44,13.1,0,15.3,12.8,10.96,11,15.97
EASY MONEY,"A policy stance taken by a CENTRAL BANK or other monetary authority that permits INTEREST RATES to remain low, in order to foster economic growth through cheap BORROWING.",palgrave,0,34.6,15.4,0,12.25,16.6,11.79,20,19.77
EBIT,See EARNINGS BEFORE INTEREST AND TAXES.,palgrave,0,48.47,8,0,11.07,8.3,11.83,3,9.07
EBITDA,"See EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION.",palgrave,0,-12.79,17,0,21.71,18.5,13.9,6,18.2
EBRD,See EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT.,palgrave,0,22.07,11.9,0,18.16,13.7,10.75,5.5,19.94
ECD,See EURO CERTIFICATE OF DEPOSIT.,palgrave,0,49.48,7.6,0,9.6,7.4,10.2,2.5,10
ECN,See ELECTRONIC COMMUNICATIONS NETWORK.,palgrave,0,-34.11,19,0,26.1,21.8,15.68,3,21.6
ECONOMIC CAPITAL,"CAPITAL resources that a company allocates intern- ally to conduct its operations and support its RISKS (including FINANCIAL RISK and OPERATING RISK). Economic capital, which is a key measure of SOLVENCY, serves to absorb unexpected losses and allows a firm to continue its operations. Also known as MANAGEMENT CAPITAL. See also CAPITALALLOCATION, REGULATORY CAPITAL, RISK CAPITAL, TIER 1 CAPITAL, TIER 2 CAPITAL.",palgrave,0,21.9,14.1,16.2,14.15,13.1,11.28,13,13.94
ECONOMIC COST,"(1) OPPORTUNITY COST. (2) The total cost of a project, including financial costs and opportunity costs.",palgrave,0,38.32,11.9,0,11.77,12.5,12.33,12,13.9
ECONOMIC INDICATORS,"Macroeconomic statistics released by gov- ernment authorities that provide an indication of the relative strength or weakness of the economy and key markets (including labor, finance/bank- ing, real estate/housing, construction, and so forth). Hundreds of statistics are released with varying frequencies and lags, and have different degrees of importance in shaping MONETARY POLICY and impacting financial markets. Those which are most closely watched by market participants include:Also known as INDICATOR, MACROECONOMIC INDICATOR.",palgrave,0,13.28,17.4,18.9,18.92,20.8,12.5,19.66666667,18.49
ECONOMIC PROFIT,"The difference between REVENUES and costs (includ- ing INTEREST, TAXES, and DEPRECIATION, as well as implicit costs, such as OPPORTUNITY COSTS). See also ACCOUNTING PROFIT, ECONOMIC VALUE ADDED.",palgrave,0,31.89,12.3,0,14.67,13.6,11.66,10.5,14.17
ECONOMIC VALUE,See ENTERPRISE VALUE.,palgrave,0,34.59,9.2,0,9.23,9.9,9.05,1.5,14.53
ECONOMIC VALUE ADDED (EVA),"A measure of a company’s value cre- ation performance, computed as NET OPERATING PROFIT AFTER TAX (NOPAT) minus the COST OF CAPITAL. A company has positive EVA when its NOPAT exceeds the weighted average cost of the capital applied to its operations. See also ACCOUNTING PROFIT, ECONOMIC PROFIT, MARKET VALUE ADDED.",palgrave,0,37.3,12.3,14.6,11.54,11.6,10.36,12.5,13.86
ECONOMICS,"The area of study in social science concerned with scarce factors of production (including labor, land, CAPITAL) and the distribu- tion and consumption of goods and services. Major subbranches focus on MICRO and MACRO.",palgrave,0,54.22,9.9,0,12.82,12.7,12.37,11,11.51
ECONOMIES OF SCALE,"The relative cost benefits that a company may obtain due to expansion within a market segment. This microeconomic the- ory centers on the decline in short- and long-term average costs that can be obtained by operating a larger operation more efficiently (e.g., through bulk discounts on raw material purchases, lower INTEREST costs from increased borrowing options, and so forth). Also known as SCALE EFFECT. See alsoDISECONOMIES OF SCALE.",palgrave,0,45.76,11.1,13.8,12.93,12.8,11.68,12,14.45
ECONOMY,A system involving all activities related to the production and distribution of goods and services.,palgrave,0,30.87,12.7,0,14.61,12.8,11.75,12.5,19.33
ECP,See EURO COMMERCIAL PAPER.,palgrave,0,33.58,9.6,0,8.7,7.7,11.73,2,11.6
ECU,See EUROPEAN CURRENCY UNIT.,palgrave,0,33.58,9.6,0,10.15,8.8,15.68,3,21.6
EDF,See EUROPEAN DEVELOPMENT FUND.,palgrave,0,8.2,13.1,0,14.5,12.4,15.68,3,21.6
EDGE ACT BANK,"A US BANK, owned by a state or nationally chartered BANK, with an international business scope. Edge Act banks are author- ized to operate interstate branches, accept DEPOSITS from offshore sources, invest in foreign SECURITIES and projects, and grant foreign LOANS. See alsoINTERNATIONAL BANKING FACILITY.",palgrave,0,39.33,11.5,11.9,14.72,13.5,12.1,8.833333333,12.22
EDI,See ELECTRONIC DATA INTERCHANGE.,palgrave,0,8.2,13.1,0,17.4,14.7,15.68,3,21.6
EDS,See EQUITY DEFAULT SWAP.,palgrave,0,50.5,7.2,0,5.8,5.3,15.68,2,11.6
EEA,See EUROPEAN ECONOMIC AREA.,palgrave,0,33.58,9.6,0,10.15,8.8,15.68,3,21.6
EEC,See EUROPEAN ECONOMIC COMMUNITY.,palgrave,0,-34.11,19,0,17.4,14.7,15.68,4,31.6
EFFECTIVE ANNUAL RATE (EAR),"The INTEREST paid or received as a per- centage of the PRINCIPAL, restated from its contracted compounding rate (e.g., continuous, monthly, quarterly) to an annual rate, allowing for comparison. EAR, which excludes any fees paid or received, can be computed as:r= (1 + (i / n))n − 1where i is the nominal rate, n is the number of compounding periods per year. Also known as ANNUAL EQUIVALENT RATE, EFFECTIVE INTEREST RATE. See also ANNUAL PERCENTAGE RATE.",palgrave,0,44.24,11.7,16.2,10.44,12,10.53,14.75,16.59
EFFECTIVE INTEREST RATE,See EFFECTIVE ANNUAL RATE.,palgrave,0,33.58,9.6,0,8.7,7.7,11.73,3,21.6
EFFECTIVE RATE,"The actual INTEREST RATE a BANK charges on a LOAN, after taking into account fees and COMPENSATING BALANCE requirements. See also YIELD TO MATURITY.",palgrave,0,42.38,10.3,0,11.3,9.1,10.15,7.5,13.13
EFFECTIVE SPREAD,"The actual difference between the BID and OFFER of a SECURITIES transaction, incorporating the direction of price movements. See also QUOTED SPREAD, REALIZED SPREAD.",palgrave,0,33.92,11.5,0,15.18,12.5,8.84,8.5,13.13
EFFECTIVE TAX RATE,"For an individual or a company, the actual income TAX paid divided by net taxable income before taxes. The effective tax rate may be different than the STATUTORY TAX RATE as a result of adjustments, gross- ups, and deductions. See also AVERAGE TAX RATE, MARGINAL TAX RATE.",palgrave,0,47.08,10.6,14.1,9.34,9.1,9.12,11.5,13.94
EFFECTIVE YIELD,See YIELD TO MATURITY.,palgrave,0,50.5,7.2,0,2.9,2.9,11.73,2,11.6
EFFICIENT FRONTIER,"In the CAPITAL ASSET PRICING MODEL, a bound- ary defined by INVESTMENT PORTFOLIOS that provide INVESTORS with the maximum possible RETURN for a given level of RISK. See also CAPITAL MARKET LINE, SECURITY MARKET LINE.",palgrave,0,36.79,12.5,0,11.77,11.8,10.37,12.25,11.57
EFFICIENT MARKET HYPOTHESIS,"A theory stating that financial mar- kets reflect all publicly available information, suggesting that all INVESTORS have an equal opportunity to earn a given minimum RETURN, and that itRANDOM WALK.Additional reference: Fama (1970).",palgrave,0,12.6,19.7,0,16.89,23.5,13.89,24.5,22.9
EFFICIENT PORTFOLIO,A PORTFOLIO that gives an INVESTOR the highest EXPECTED PORTFOLIO RETURN amongst all FEASIBLE PORTFOLIOS with the same degree of RISK. See also EFFICIENT FRONTIER.,palgrave,0,50.33,9.3,0,13.62,11,11.84,8.25,13
EFP,See EXCHANGE FOR PHYSICAL.,palgrave,0,50.5,7.2,0,8.7,7.7,7.78,2,11.6
EFT,See ELECTRONIC FUNDS TRANSFER.,palgrave,0,50.5,7.2,0,14.5,12.4,15.68,2,11.6
EFTA,See EUROPEAN FREE TRADE ASSOCIATION.,palgrave,0,15.64,12.3,0,14.24,11.2,10.2,3.5,18
EIB,See EUROPEAN INVESTMENT BANK.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,3,21.6
ELBOW,"An area of the YIELD CURVE that is deemed to be financially attractive (i.e., CHEAP) and where profits can be generated by simply ROLLING DOWN THE CURVE.",palgrave,0,60.99,11.5,0,9,14.2,10.82,16.5,15.24
ELECTRICITY SWAP,"An OVER-THE-COUNTER SWAP involving the exchange of fixed and floating electricity prices based on the average level of a recognized electricity pool or pricing index; transactions are often settled monthly or quarterly (to coincide with billing cycles), on a physical or finan- cial basis. Also known as POWER SWAP. See also POWER OPTION.",palgrave,0,45.05,11.4,13.6,12.64,12.8,11.07,12.16666667,12.36
ELECTRONIC BANKING,"A computerized service offered by many BANKS and financial institutions that allows clients to conduct essential BANKINGtransactions (e.g., ACCOUNT balance inquiries, fund transfers, bill paying) via computer. See also ELECTRONIC TRADING.",palgrave,0,30.36,12.9,0,19.66,17.9,15.1,11.25,15.23
ELECTRONIC FUNDS TRANSFER (EFT),"The transfer of cash through an electronic mechanism, such as an interbank wire system or a retail point-of- sale system, rather than a physical CHECK or DRAFT.",palgrave,0,60.99,11.5,0,10.74,15.4,9.65,17.5,16.73
ELECTRONIC LIMIT ORDER BOOK (ELOB),"An electronic platform that operates as a form of electronic EXCHANGE, posting standard LIMIT ORDERS and, in some instances, also managing MARKET ORDERS HIDDEN ORDERS. An ELOB aggregates BIDS and OFFERS submitted buyers and sellers, posting varying degrees of price and volume information without attribution to the buyer or seller; as bids and offers are queued in the ELOB, price assumes prior- ity, followed by time.",palgrave,0,29.52,17.3,0,13.53,20.3,11.73,20.5,17.44
ELECTRONIC PORTAL,"An integrated electronic interface where a sponsor- ing FINANCIAL INSTITUTION or EXCHANGE provides clients with access to a broad range of market information, research, quotes/pricing, analytics, and/ or EXECUTION.",palgrave,0,8.2,19.3,0,18.92,23.3,14.33,23.5,22.63
ELECTRONIC TRADING,"Any form of TRADING that is routed and executed through an electronic platform, such as an ALTERNATIVE TRADING SYSTEM or ELECTRONIC COMMUNICATIONS NETWORK, rather than through a physicalBROKER or MARKET MAKER on an EXCHANGE floor. Electronic trading exists in various ASSET classes, including STOCKS, BONDS, FOREIGN EXCHANGE, and COMMODITIES, and can be executed between platforms or through elec- tronic capabilities on exchanges. See also ELECTRONIC BANKING.",palgrave,0,32.22,14.2,15,16.48,17.7,10.71,15.33333333,14.25
ELEPHANT,"A large institutional client, such as a PENSION FUND, MUTUAL FUND, HEDGE FUND, CORPORATION, or sovereign entity, that FINANCIAL INSTITUTIONS court in order to generate NEW ISSUE, CORPORATE FINANCE, or INVESTMENT MANAGEMENT business. See alsoELEPHANT HUNTING.",palgrave,0,27.83,13.9,0,16.76,16.7,12.86,15,20.53
ELEPHANT HUNTING,A process where FINANCIAL INSTITUTIONS attempt to win business or MANDATES from large institutional clients. Elephant hunting generally requires continuous communication with clients on deal-related ideas and a certain amount of pro-bono work in support of the ideas. See also ELEPHANT.,palgrave,0,40.65,11,11.9,16.23,13.7,10.86,8.166666667,12.31
ELIGIBILITY,The characteristics that define ELIGIBLE PAPER.,palgrave,0,-10.76,16.3,0,18.78,14.5,11.83,4,15.73
ELIGIBLE LIABILITY,"A BANK LIABILITY, such as an interbank or retail DEPOSIT, that attracts a regulatory RESERVE.",palgrave,0,30.87,12.7,0,11.53,10.9,10.7,10.5,14
ELIGIBLE PAPER,"Short-term financial instruments (such as GOVERNMENT BILLS, CERTIFICATES OF DEPOSIT, BANKER’S ACCEPTANCES, or BANK-en- dorsed corporate obligations) that can be used for collateralized borrowing in the REPURCHASE AGREEMENT market or through CENTRAL BANK mecha- nisms, such as the DISCOUNT WINDOW.",palgrave,0,22.42,20.1,0,18.98,28.9,12.73,30,25
ELIGIBLE RESERVES,"In the United States, cash held in a BANK plus funds held in the bank’s name at the FEDERAL RESERVE.",palgrave,0,85.02,6.4,0,5.63,7.6,8.58,11,10
ELIGIBLE SECURITIES,"SECURITIES that BANKS are allowed to purchase, hold, and TRADE on a direct basis, including GOVERNMENT BONDS and AGENCY SECURITIES. Those ruled ineligible under regulations must often be traded through a separately incorporated and regulated subsidiary.",palgrave,0,19.37,15,0,16.76,16.1,11.55,13.5,14.98
ELOB,See ELECTRONIC LIMIT ORDER BOOK.,palgrave,0,49.48,7.6,0,9.6,7.4,10.2,2.5,10
EMBARGO,"Prohibition on TRADE with another country either generally (all goods and services) or specifically (targeted goods and services). An embargo, which is one manifestation of SOVEREIGN RISK, may arise as a result of trade disputes, political constraints, REGULATIONS, or national security issues.",palgrave,0,16.32,16.2,0,16.13,17.4,11.07,16.5,18.88
EMBEDDED OPTION,"An OPTION that is incorporated into a STRUCTURED NOTE or OVER-THE-COUNTER SWAP to provide the INVESTOR or ISSUER with a lower funding cost, unique speculative payoff, or customized RISK MANAGEMENT solution. Also known as EMBEDDO.",palgrave,0,36.79,12.5,0,13.74,13.6,12.17,12.25,13.86
EMBEDDO,See EMBEDDED OPTION.,palgrave,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
EMBEZZLEMENT,"The fraudulent appropriation of ASSETS that have been entrusted by the LEGAL OWNER, generally through secretive or deceptive measures. See also FRAUD.",palgrave,0,34.93,11.1,0,14.77,11.7,11.36,7.5,15.31
EMERGING CURRENCY,See EXOTIC CURRENCY.,palgrave,0,9.21,12.7,0,7.32,8.3,14.31,2.5,27.87
EMERGING MARKET,"A market or economy that is in the initial stages of commercial progress, and which is subject to both development and profit opportunities and increased RISK levels.",palgrave,0,44.07,13.8,0,12.65,16.5,11.41,17.5,16.73
EMISSIONS,"Any gases emitted in the furtherance of productive processes, and which may be subject to control through a CAP AND TRADE system, allowing for  TRADING between countries and companies.",palgrave,0,33.58,15.8,0,13.7,18.2,11.06,19.5,18.5
EMISSIONS TRADING,"The TRADING of emissions allowances between com- panies, or ASSIGNED AMOUNT UNITS across borders, for those participating in a CAP AND TRADE mechanism.",palgrave,0,48.13,12.3,0,14.51,16.5,11.64,13.5,12.68
EMPLOYEE BUYOUT,The ACQUISITION of a PUBLIC COMPANY by an employee-led group that leads to a controlling or majority stake in the outstand- ing EQUITY. The buyout may be financed through the collective resources of employees as well as external financing obtained from a BANK or other finan- cial institution. See also MANAGEMENT BUYOUT.,palgrave,0,45.46,11.2,14.6,11.89,11.7,10.87,12.66666667,15.38
EMS,See EUROPEAN MONETARY SYSTEM.,palgrave,0,8.2,13.1,0,13.05,11.2,15.68,3,21.6
EMTN,See EURO MEDIUM-TERM NOTE.,palgrave,0,75.88,3.7,0,7.25,7.7,11.73,1,1.6
EMU,See EUROPEAN MONETARY UNION.,palgrave,0,33.58,9.6,0,11.6,10,15.68,3,21.6
ENCUMBRANCE,"A real property CLAIM that passes with TITLE, often used in collateralized FINANCING; the BORROWER encumbers the property by granting the lending BANK a LIEN. The encumbrance does not impact ownership trans- fer, but it can reduce the MARKET VALUE and marketability of the property.",palgrave,0,40.18,13.2,0,12.94,14.7,10.72,16.25,16.11
ENDOGENOUS LIQUIDITY,"LIQUIDITY and LIQUIDITY RISK that are spe- cific to a firm and the actions it takes in managing its ASSETS, LIABILITIES, and OFF-BALANCE SHEET ACTIVITIES. See also ASSET LIQUIDITY RISK,ASSET-FUNDING LIQUIDITY RISK, EXOGENOUS LIQUIDITY.",palgrave,0,11.92,15.8,0,15.37,15,11.45,14,12.68
ENDORSER,"The party signing a NEGOTIABLE INSTRUMENT; once the endorser signs the instrument, ownership is transferred to the BENEFICIARY. See also ENDORSEMENT.",palgrave,0,26.98,12.1,0,15.75,12.7,10.92,7.75,15.63
ENDOWMENT ASSURANCE POLICY,"In the United Kingdom, a form of INSURANCE that provides a lump sum payment to the BENEFICIARY, either on an agreed date or with the death of the INSURED. The policy, which has SAVINGS features that accumulate value, can also be used to secure a residen- tial MORTGAGE (i.e., ENDOWMENT MORTGAGE).",palgrave,0,54.05,12.1,0,9.64,14,9.24,15.75,14.91
ENDOWMENT MORTGAGE,"In the United Kingdom, a form of residential MORTGAGE where the final PRINCIPAL balance is secured by an ENDOWMENT ASSURANCE POLICY.",palgrave,0,33.24,13.8,0,13.11,14.2,11.45,15.5,17.92
ENGLISH AUCTION,"An AUCTION MARKET technique applied in certain marketplaces where the price of a SECURITY being sold is publicly announced at each stage, allowing parties to submit higher BIDS. When no further bids are received, the orders are filled. See also DUTCH AUCTION.",palgrave,0,65.73,7.6,8.8,11.53,10,10.35,7,8.46
ENTERPRISE VALUE,"A measure of the value of a firm, typically computed as the sum of expected future net CASH FLOWS, DISCOUNTED back to the pre- sent at a firm-specific DISCOUNT RATE. Enterprise value can be computed via:where NCFt is the expected net cash flow at time t, r is the discount rate, and n is the number of periods. Also known as ECONOMIC VALUE. See alsoACCOUNTING VALUE.",palgrave,0,63.19,8.5,12.6,7.89,8.3,9,11,12.05
ENTERPRISE ZONE,A special area designated by a government authority that accords TAX benefits and special exemptions to those establishing a business in the area. The enterprise zone is designed to use such incentives to increase employment and stimulate economic growth.,palgrave,0,34.76,13.3,0,14.68,14.5,11.49,15.25,18.06
ENTREPRENEUR,"A creative, RISK-taking, individual that develops a new business concept or product, or expands into new markets in order to generate profits.",palgrave,0,23.77,15.4,0,13.29,15.5,11.9,15,14.25
ENVIRONMENTAL AUDIT,"An AUDIT performed on a company by a quali- fied organization that focuses specifically on adherence to environmental standards or laws. The audit may be undertaken for legal, regulatory, or man- agerial purposes.",palgrave,0,20.89,14.4,0,13.16,12.6,12.11,13.25,17.51
EONIA,See EURO OVERNIGHT INDEX AVERAGE.,palgrave,0,49.48,7.6,0,10.76,8.4,13.36,2.5,10
EPS,See EARNINGS PER SHARE.,palgrave,0,92.8,1.3,0,4.35,4.1,11.73,1,1.6
EPS BOOTSTRAPPING,A CORPORATE FINANCE practice where an acquirer buys a company with a low PRICE/EARNINGS RATIO through a STOCK SWAP in order to boost the post-acquisition EARNINGS PER SHARE (EPS) of the newly formed group and create a rise in the stock price.,palgrave,0,45.77,17.3,0,10.69,22.1,11.36,25,19.66
EQUILIBRIUM PRICING MODEL,"A theoretical mathematical model that attempts to establish market-clearing price levels (i.e., where SUPPLY and DEMAND for ASSETS meet and the market clears). Equilibrium models, such as the CAPITAL ASSET PRICING MODEL, are difficult to calibrate to actual markets and are therefore used primarily for theoretical purposes. Also known as ABSOLUTE PRICING MODEL.",palgrave,0,19.67,14.9,15,15.14,15,11.66,13.16666667,14.63
EQUITABLE CONTROL,A theoretical concept in CORPORATE GOVER- NANCE where managers obtain or receive power from diffuse SHAREHOLDERS and act in the best interests of the firm.,palgrave,0,37.64,14.2,0,12.94,15.8,11.82,16.5,16.4
EQUITABLE INTEREST,"An ownership interest in ASSETS that is conveyed via TITLE and which is considered fair and just by the courts but which may not represent a strict legal right, e.g., the interests of a BENEFICIARY in a TRUST are of an equitable nature. See also EQUITY.",palgrave,0,56.59,11.1,0,8.48,11.4,10.61,15.5,16.16
EQUITAS,"A vehicle established in 1996 to REINSURE, on a mandatory basis, the LIABILITIES of NAMES operating through LLOYD’S OF LONDON.",palgrave,0,25.8,14.6,0,12.88,13.8,13.31,15,18
EQUITY,"(1) In INSURANCE, the concept of pricing fairness across CON- TRACTS. PREMIUMS must be set according to the loss expectations within RISK classifications; those with the same risk characteristics should face thesame premium and should not be subject to any discriminatory pricing. (2) See CAPITAL, COMMON SHARES, COMMON STOCK, STOCK. (3) A beneficial interest in a specific ASSET. (4) A concept of RIGHTS , separate and apart from legal rights, which may be conveyed via an EQUITABLE INTEREST.",palgrave,0,23.94,19.5,0,13.07,23.3,11.9,27,21.63
EQUITY ACCOUNTING,"A form of ACCOUNTING where a company records the relevant portion of the undistributed earnings and RESERVES of an AFFILIATE in which it holds an ownership interest, typically in relation to the percentage of its EQUITY ownership stake. This concept generally applies when the ownership stake is less than 50% but more than 20% (i.e., influence but not control).",palgrave,0,33.07,16,0,12.2,17.6,11.52,22.25,19.94
EQUITY ANALYST,"An INVESTMENT ANALYST working for a BANK or other FINANCIAL INSTITUTION that is responsible for analyzing the financial state and prospects of a PUBLIC COMPANY and developing estimates of future EARNINGS PER SHARE and STOCK PRICE targets, with a view toward offering a recommendation on whether to buy, sell, or retain a position in the com- pany’s SHARES. See also CREDIT ANALYST.",palgrave,0,31.55,16.6,0,12.66,18.4,11.03,22.5,19.5
EQUITY BRIDGE,See BRIDGE EQUITY.,palgrave,0,59.97,5.6,0,3.43,5.2,9.05,1.5,14.53
EQUITY CALL SWAP,"An OVER-THE-COUNTER SWAP involving the exchange of a floating INTEREST RATE for potential gains from the appreciation on an EQUITY INDEX (which may take the form of a single COMMON STOCK, a BASKET, or a broad market index). The equity call swap can be viewed as a long- dated CALL OPTION with a PREMIUM paid over time via the floating rate. See also EQUITY DERIVATIVE, EQUITY INDEX SWAP, EQUITY PUT SWAP.",palgrave,0,47.42,12.5,14.6,9.35,12.5,8.37,15.83333333,13.42
EQUITY DERIVATIVE,"An EXCHANGE-TRADED DERIVATIVE or OVER-THE- COUNTER DERIVATIVE with an UNDERLYING reference based on COMMON STOCKS, BASKETS, and market indexes. An equity derivative can be structured as an equity OPTION, equity FUTURE, equity forward, EQUITY CALL SWAP, EQUITY INDEX SWAP, EQUITY PUT SWAP, or EQUITY WARRANT. See alsoCOMMODITY DERIVATIVE, CREDIT DERIVATIVE, CURRENCY DERIVATIVE, INTEREST RATE DERIVATIVE.",palgrave,0,2.14,17.5,18.6,17.75,17.6,10.29,16.5,13.14
EQUITY FINANCE,The general class of STOCK LOANS and SHARE-based REPURCHASE AGREEMENT transactions.,palgrave,0,51.85,8.8,0,18.95,15.3,11.36,7.5,11.67
EQUITY INDEX SWAP,"An OVER-THE-COUNTER SWAP involving the exchange of a floating INTEREST RATE for potential gains from the appre- ciation or depreciation of an EQUITY INDEX (which may be a COMMONSTOCK, a BASKET, or a broad market index). The equity index swap can be viewed as a long-dated OPTION with a PREMIUM paid over time via the float- ing rate. Also known as EQUITY SWAP. See also EQUITY CALL SWAP, EQUITY DERIVATIVE, EQUITY PUT SWAP.",palgrave,0,52.9,10.4,14.2,9.4,10.4,8.65,12.875,11.7
EQUITY-LINKED POLICY,"A type of INSURANCE POLICY where the PREMIUMS paid by the INSURED are invested in EQUITIES. The SURRENDER VALUE of a standard equity-linked policy depends on the RETURNS achieved by the equity PORTFOLIO. Policies are also available with a minimum guaran- teed ASSET value, to reduce the RISK to the insured. Also known as EQUITY-LINKED ENDOWMENT POLICY, EQUITY-LINKED LIFE INSURANCE POLICY.",palgrave,0,39.03,11.6,14.9,12.58,11.7,10.61,11.875,12.68
EQUITY OPTION,"An EXCHANGE-TRADED or OVER-THE-COUNTER OPTION involving a single STOCK. VANILLA and COMPLEX OPTIONS can be bought and sold on a broad range of stocks, and may be traded concur- rently with the DELTA-equivalent amount of SHARES as a HEDGE. See alsoCOMMODITY OPTION, CURRENCY OPTION, INDEX OPTION, INTEREST RATE OPTION.",palgrave,0,46.47,10.8,11.9,12.82,12.6,10.25,10.5,10.6
EQUITY RISK,The RISK of loss due to an adverse move in the direction of EQUITY prices or INDEXES. Equity risk is a form of DIRECTIONAL RISK.,palgrave,0,67.25,7,0,5.5,4.4,8.05,7.75,9.8
EQUITY SWAP,See EQUITY INDEX SWAP.,palgrave,0,50.5,7.2,0,2.9,2.9,15.68,2,11.6
EQUITY TRANCHE,See RESIDUAL SECURITY.,palgrave,0,-24.64,17.4,0,11.15,11.5,14.31,2.5,27.87
EQUITY VALUATION,See CORPORATE VALUATION.,palgrave,0,-24.64,17.4,0,15.03,14.6,14.31,2.5,27.87
EQUITY VALUE,"The pure EQUITY value of the firm, computed as FIRM VALUE less the MARKET VALUE of DEBT.",palgrave,0,62.68,8.7,0,6.32,7,8.19,10.5,11.51
EQUIVALENT BOND YIELD,See BOND EQUIVALENT YIELD.,palgrave,0,75.88,3.7,0,8.7,7.7,15.68,2,11.6
EQUIVALENT BREAKEVEN,"A measure of the number of years it takes for an INVESTOR to recover the initial CONVERSION PREMIUM paid in acquiring a CONVERTIBLE BOND, typically computed as:where Convprem is the conversion premium, C is the COUPON, Convratio is the CONVERSION RATIO, and DPS is DIVIDENDS per share. See also ADJUSTED BREAKEVEN, SIMPLE BREAKEVEN.",palgrave,0,36.12,14.8,0,12.77,16.7,11.51,19.75,18.15
ERISA,See EMPLOYEE RETIREMENT INCOME SECURITY ACT.,palgrave,0,6.17,13.9,0,15.88,12.2,11.83,5,22.4
ERM,See ENTERPRISE RISK MANAGEMENT.,palgrave,0,33.58,9.6,0,15.95,13.5,15.68,3,21.6
ERRORS AND OMISSIONS,The general category of mistakes that arise in the ACCOUNTING or financial records of a company. Errors and omis- sions can be viewed as a form of PROCESS RISK and can be INSURED by anINSURER.,palgrave,0,62.17,8.9,0,8.12,8.6,10.37,11.75,11.57
ESCROW ACCOUNT,"A TRUST account that is used to collect from a DEBTOR periodic payments related to a MORTGAGE, an INSURANCE policy, or other contractual CASH FLOWS.",palgrave,0,37.64,14.2,0,11.09,14.4,11.19,17.5,18
ESOP,See EMPLOYEE STOCK OWNERSHIP PLAN.,palgrave,0,49.48,7.6,0,11.92,9.3,10.2,3.5,18
ESOT,See EMPLOYEE SHARE OWNERSHIP TRUST.,palgrave,0,49.48,7.6,0,13.08,10.3,10.2,3.5,18
ESTOPPEL,"A legal rule of evidence that prohibits a person from denying a statement or allegation that contradicts or reverses a previous statement, or which has otherwise already been legally established.",palgrave,0,24.11,17.4,0,15.04,19.6,10.91,22,20
ETF,See EXCHANGE-TRADED FUND.,palgrave,0,34.59,9.2,0,15.03,16.2,14.31,1.5,1.2
ETHICAL INVESTMENT,See SOCIALLY RESPONSIBLE INVESTMENT.,palgrave,0,-34.11,19,0,23.2,19.4,15.68,4,31.6
EU,See ROPEAN UNION.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
EUREX,"An electronic EXCHANGE owned by DEUTSCHE BORSE and the Swiss Exchange that specializes in DERIVATIVES. Eurex was created in 1998 when the parent exchanges merged their derivative affiliates, Deutsche Terminborse and Swiss Options and Financial Futures Exchange.",palgrave,0,44.24,11.7,0,17.52,16.5,12.24,13.25,16.05
EURIBOR,See EURO INTERBANK OFFERED RATE.,palgrave,0,49.48,7.6,0,9.6,7.4,13.36,2.5,10
EURO,"A unit of CURRENCY adopted in 1999 by countries comprising the PEAN MONETARY UNION; early commercial exchange transactions were ultimately supplemented by circulation of SPECIE. The euro, which com- prises of a fixed percentage of the domestic currencies of participating nations, is considered a RESERVE CURRENCY.A EUROCURRENCY CERTIFICATE from a London-based branch or be issued with fixed or floatingCOUPONS and in varying maturities and are often traded on a secondary basis between DEALERS.",palgrave,0,17.51,19.9,0,16.26,24.1,13.67,27.75,23.92
EURO COMMERCIAL PAPER (ECP),"Short-term, unsecured discount DEBT SECURITIES with MATURITIES ranging from 1 to 360 days issued by compan- ies in the EUROMARKETS. A SYNDICATE of DEALERS places ECP on a best efforts basis; unlike US COMMERCIAL PAPER, ECP issues may be unrated and need not be backed by SWINGLINES. See also EUROBOND, EURO MEDIUM-TERM NOTE, EURONOTE.",palgrave,0,53.21,10.3,11.9,11.42,12.1,13.01,11.33333333,12.39
EURO DEPOSIT,"A EUROCURRENCY time DEPOSIT issued by a BANK, often from a London-based branch of SUBSIDIARY. Unlike EURO CERTIFICATES OF DEPOSIT, Eurodeposits are generally not tradable on a secondary basis.",palgrave,0,39.84,11.3,0,13.91,12.5,11.43,8.75,11.32
EURO OVERNIGHT INDEX AVERAGE,"EURO overnight INDEX average of INTEREST RATES on unsecured EURO DEPOSITS arranged by London-based BROKERS (quoted as EURONIA) or Continental markets (quoted as EONIA).EURONOTE, EURO COMMERCIAL PAPER.",palgrave,0,1.77,19.7,0,18.69,22.4,15.5,21.5,19.69
EUROCLEAR,"A European organization established in 1968 and responsible for SETTLEMENT and CLEARING of EUROBONDS, EQUITIES, and INVESTMENT FUNDS. See also CLEARSTREAM.",palgrave,0,26.98,12.1,0,17.43,14.1,12.43,7.75,15.63
EUROCURRENCY,"An ASSET or LIABILITY created outside the country of ori- gin, e.g., a US dollar LOAN outside the United States is a EURODOLLAR loan, a yen DEPOSIT outside of Japan is a Euroyen deposit. Eurocurrency transactions are typically free of home market REGULATIONS and may attract favorable TAX and RESERVE treatment.",palgrave,0,37.13,14.4,0,11.78,15.4,10.78,16.75,16.47
EURODOLLAR,"A US dollar ASSET or LIABILITY located outside the United States, and the single largest element of the EUROCURRENCY market. Eurodollar LOANS are created when a BANK lends dollars through an offshore branch, an EDGE ACT BANK, or an INTERNATIONAL BANKING FACILITY (IBF). Eurodollar DEPOSITS arise through the acceptance of funds from off- shore branches or IBFs.",palgrave,0,52.19,10.7,13.6,12.82,13.3,10.4,12.83333333,13.92
EUROEQUITY ISSUE,"(1) An issuance of SHARES by a company on an over- seas EXCHANGE, denominated in the overseas CURRENCY rather than in the issuing company’s home currency. (2) An issuance of shares by a company that occurs simultaneously, in several domestic markets, through an internationalSYNDICATE.",palgrave,0,1.44,24,0,14.17,26.5,11.2,33,23.96
EURONIA,"See EURO OVERNIGHT INDEX AVERAGE.EUROBOND, NOTE ISSUANCE FACILITY, REVOLVING UNDERWRITING FACILITY.",palgrave,0,-15.84,18.2,0,26.37,22.2,15.67,10.5,18.95
EUROPE 1992,See SINGLE MARKET.,palgrave,0,59.97,5.6,0,3.43,5.2,0.15,0.5,1.2
(EBRD),A MULTILATERAL DEVELOPMENT BANK created in 1990 to assist in the economic development of Central and Eastern European nations via infrastructure and project LOANS to private and public sector BORROWERS.,palgrave,0,15.65,18.5,0,16.55,20.7,13.55,23,21.33
EUROPEAN BARRIER OPTION,See POINT BARRIER OPTION.,palgrave,0,50.5,7.2,0,7.25,6.5,11.73,2,11.6
EUROPEAN CURRENCY UNIT (ECU),"A unit of account, created by the EUROPEAN ECONOMIC COMMUNITY in 1979 as part of the European Monetary System, based on a weighted average of the CURRENCIES of the member countries. The ECU was superseded by the creation of the EUROPEAN MONETARY UNION and the introduction of the EURO in 1999.",palgrave,0,45.59,13.2,0,10.22,13.7,11.09,18.75,17.26
EUROPEAN DEVELOPMENT FUND (EDF),"A fund created via the TREATY OF ROME in 1957, operated by the EUROPEAN UNION, which provides grants and LOANS in Africa, the Caribbean, and the Pacific.",palgrave,0,60.99,11.5,0,9.23,14.2,13.75,18.5,18.21
EUROPEAN ECONOMIC AREA (EEA),"An organization that includes the EUROPEAN UNION plus Norway, Switzerland, and Liechtenstein.",palgrave,0,33.92,11.5,0,20,16.7,14.76,8,14.8
EUROPEAN MONETARY SYSTEM (EMS),"A framework of monetary cooper- ation and EXCHANGE RATE stabilization established in 1979 (and lead- ing ultimately to a stronger union in 1989 via the EUROPEAN MONETARYUNION). Under the EMS’s Exchange Rate Mechanism, participating countries agreed to hold the value of their national currencies within pre-agreed bands referenced in terms of EUROPEAN CURRENCY UNITS and to take corrective actions as needed when drifting outside the band.",palgrave,0,29.52,17.3,0,15.5,21.8,13.17,23.5,21.08
EUROPEAN OPTION,"An OPTION contract that can only be EXERCISED by the buyer at MATURITY. See also AMERICAN OPTION, BERMUDAN OPTION.",palgrave,0,44.91,9.4,0,9.31,7.1,9.09,5.25,8.01
EUROPEAN TERMS,"A commonly used quotation mechanism in the FOREIGN EXCHANGE markets that indicates how many units of a foreign CURRENCY can be exchanged for a US dollar. See also AMERICAN TERMS, RECIPROCAL RATE.",palgrave,0,46.78,10.7,0,11.6,10.7,9.86,11.5,13.9
EUROSECURITY,"A SECURITY (EQUITY, BOND, or other securitized and tradable ASSET) that is issued and traded in the EUROMARKETS.",palgrave,0,27.83,13.9,0,11.42,12.4,12.42,13,16.09
EVA,See ECONOMIC VALUE ADDED.,palgrave,0,50.5,7.2,0,7.25,6.5,11.73,2,11.6
EVENT DRIVEN,"A common HEDGE FUND strategy where a manager may invest in DISTRESSED ASSETS and RISK ARBITRAGE positions, as well as other corporate restructuring events that may include CARVE-OUTS, STOCK BUYBACKS, BANKRUPTCIES, and REORGANIZATIONS.",palgrave,0,21.06,18.5,0,17.76,23.9,13.89,24.5,21.68
EVENT RISK,"The RISK of loss from an unexpected CREDIT or economic event/ action, such as a CREDIT RATING downgrade, DEFAULT, MORATORIUM, or EXCHANGE CONTROLS. The onset of event risk can be difficult to predict and the potential financial impact can be hard to estimate, as losses do not follow traditional STOCHASTIC PROCESSES.",palgrave,0,37.13,14.4,0,12.48,16,11.71,17.75,18.04
EVERGREEN,"(1) A REVOLVING CREDIT FACILITY without a specific MATURITY; the facility rolls over automatically every quarter or year until the BANK decides to convert it into a term LOAN with a defined maturity. (2) In the United Kingdom, a gradual infusion of CAPITAL into a new, or recapital- ized, company.",palgrave,0,-4.66,26.3,0,11.1,26.9,11.17,37,26.4
EVT,See EXTREME VALUE THEORY.,palgrave,0,33.58,9.6,0,7.25,6.5,11.73,2,11.6
EX-ALL,A share of COMMON STOCK that lacks DIVIDEND rights and VOTING RIGHTS and is only entitled to possible CAPITAL appreciation.,palgrave,0,34.26,13.5,0,12.59,13.1,10.16,15,14
EX-ANTE PORTFOLIO RETURN,See EXPECTED PORTFOLIO RETURN.,palgrave,0,8.2,13.1,0,14.5,12.4,11.73,3,21.6
EX-DIVIDEND,(1) A share of COMMON STOCK without any rights to the current period DIVIDEND. (2) The time period between the announcement and payment of dividends.,palgrave,0,46.1,13,0,10.62,14.6,10.56,17.5,16.4
EX-GRATIA,"Literally, “from favor”: a goodwill payment from an INSURER to an INSURED even though no SETTLEMENT is actually due or pay- able. Ex gratias are generally arranged to strengthen business relationships.",palgrave,0,38.82,11.7,0,13.45,12.3,10.01,10.75,12.65
EX-RIGHTS (XR),The purchase of a SHARE of STOCK for which the INVES- TOR is not entitled to any associated RIGHTS.,palgrave,0,69.11,8.3,0,6.85,8.1,9.57,11.5,11.81
EX-WARRANT (XW,A SHARE of STOCK for which the INVESTOR is not entitled to any associated WARRANT.,palgrave,0,64.71,8,0,8.05,7.4,8.59,8.5,11.33
EXCEPTIONAL ITEMS,"Profit and loss items incurred in the normal course of a company’s business which are of an unusually large magnitude. Exceptional items appear ABOVE THE LINE, as a separate disclosure item. See also EXTRAORDINARY ITEMS.",palgrave,0,51.14,9,11.9,11.7,9.4,9.18,7.166666667,11.54
EXCESS,"In the United Kingdom, a DEDUCTIBLE on an INSURANCE POLICY.",palgrave,0,52.87,8.4,0,9.08,7.1,8.87,6,12
EXCESS INSURANCE,"Any INSURANCE coverage that an INSURED arranges over and above the primary insurance CONTRACT, such as an UMBRELLA POLICY. Excess insurance is generally designed to protect against losses from LIABILITY or unexpected damage that are not adequately covered through the primary contract. Also known as EXCESS POLICY.",palgrave,0,30.16,13,15,15.02,13.3,9.45,12.16666667,13.09
EXCESS KURTOSIS,"An adjustment made to the computation of KURTOSIS so that the resulting kurtosis for a NORMAL DISTRIBUTION is zero. This indicates that any distribution with excess kurtosis > 0 has “fatter tails” than a comparable normal distribution. Excess kurtosis is obtained via:1where N is the number of observations, xi is an observation, μ is the MEAN, σ is the STANDARD DEVIATION. See also SKEWNESS.",palgrave,0,38.52,11.8,14.2,11.89,11,10.69,11.75,12.67
EXCESS LAYER,"Any INSURANCE coverage that becomes effective once the INSURED’s DEDUCTIBLE has been exhausted. The excess layer also applies to INSURERS or REINSURERS who choose to set their ATTACHMENT points at a particular distance above the EXPECTED LOSS level. See also HORIZONTAL LAYERING, VERTICAL LAYERING.",palgrave,0,31.17,12.6,15,15.19,13.2,11.54,11.66666667,16.79
EXCESS POLICY,See EXCESS INSURANCE.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
EXCESS RESERVES,RESERVES held by a BANK that are greater than the amount required by the regulatory authority. Excess reserves can be sold between banks.,palgrave,0,68.26,6.6,0,10.01,7.9,9.01,5.75,8.08
EXCESS RETURN,"The RETURN on an INVESTMENT over and above what the market expects or requires. Excess return can be generated through ACTIVE BETS, and is typically measured against a market BENCHMARK established through a framework such as the CAPITAL ASSET PRICING MODEL.",palgrave,0,50.67,11.3,0,13,13.7,10.43,12.75,12.1
EXCESS SHARES,"In a RIGHTS issue, the SHARES that are not taken up by existing SHAREHOLDERS; these may be taken up by the UNDERWRITING SYNDICATE.",palgrave,0,56.59,11.1,0,9.52,12.2,9.58,15.5,16.16
EXCESS SPREAD,"In a SECURITIZATION transaction, the difference between the CASH FLOW generated by the COLLATERAL POOL (after charge-offs and other EXPENSES) and the INTEREST payable to INVESTORS holding the ASSET- BACKED SECURITY. Excess spread may be held in ESCROW as an additional form of CREDIT enhancement until MATURITY of the transaction, at which time it may be paid to investors in the RESIDUAL TRANCHE.",palgrave,0,31.04,16.8,0,13.41,19.4,10.46,22.75,19.58
EXCHANGE,"(1) A central physical or electronic marketplace, generally approved or authorized by a regulatory authority, which provides the facil- ities needed to bring together buyers and sellers of ASSETS (such as BONDS, COMMON STOCK, and DERIVATIVES), and allow for appropriate PRICE DIS- COVERY. An exchange does not typically set prices or trade for its own account.(2) The process of swapping assets or cash between parties.",palgrave,0,30.03,17.1,0,13.59,20.5,12.29,22.25,19.15
EXCHANGE CONTROLS,"Restrictions imposed by national CENTRAL BANK or monetary authority on local CURRENCY flows that limit TRADING, prohibit exporters from drawing CREDIT from a BANK, or forbid residents from owning foreign BANK ACCOUNTS or local bank accounts with foreign currency. Suchcontrols, which are a manifestation of SOVEREIGN RISK, are generally imposed to discourage speculative inflows or outflows. See also BLOCKED CURRENCY.",palgrave,0,25.8,14.6,15.9,16.77,16.7,12.26,15,16.67
EXCHANGE FOR PHYSICAL (EFP),"A facility offered by certain EXCHANGES where two parties can agree to SWAP, off exchange, a FUTURES contract for a physical ASSET at the price quoted on the exchange. Before an EFP trans- action can be concluded through the facility it must be registered with theCLEARINGHOUSE.",palgrave,0,48.13,12.3,0,11.78,13.9,10.27,14.5,13.55
EXCHANGE OFFER,"In a capital RESTRUCTURING, a proposal to exist- ing INVESTORS in a company’s DEBT and EQUITY to swap their current SECURITIES for new securities with different terms, which are typically less economically attractive. The exchange offer is used as a means of averting a filing for BANKRUPTCY.",palgrave,0,30.7,14.8,0,12.77,15,10.85,17.75,17.06
EXCHANGE RATE,See FOREIGN .,palgrave,0,35.61,8.8,0,-1.61,5.5,11.63,0.5,0.8
EXCHEQUER,"(1) In the United Kingdom, an ACCOUNT held by the BANK OF ENGLAND that contains government funds, including REVENUES raised through TAXES. (2) A government department that is responsible for collecting taxes and other REVENUES (3) A treasury account.",palgrave,0,31.89,18.5,0,13.36,23.7,11.24,25.5,19.7
EXCLUSION,"Specific RISK exposures that are not covered through an INSURANCE CONTRACT. The more exclusions an insurance contract con- tains, the smaller the amount of risk transferred from INSURED to INSURERor INSURER to REINSURER. Common exclusions include losses from uninsur- able CATASTROPHIC HAZARDS, losses from normal use/DEPRECIATION, and duplicative (though not excess) covers. Exclusions may be contained within the policy, or in an EXCLUSION RIDER or ENDORSEMENT.Also know as EXCLUDED PERIL. See also RETENTION.",palgrave,0,39.74,11.3,13.7,15.83,14.2,11.71,10.7,13.51
EXCLUSION RIDER,An ENDORSEMENT attached to an INSURANCE CONTRACT eliminating coverage for previously included PERILS. The details of the rider supersede those contained in the original contract.,palgrave,0,24.95,12.9,0,17.1,13.8,12.47,10.25,17.8
EXECUTION,The process of agreeing and then consummating the terms of a SECURITIES trade. An execution results in the exchange of securities and cash between seller and buyer. See also  RISK.,palgrave,0,52.87,8.4,9.7,9.66,7.1,9.4,5.333333333,8
EXECUTION ONLY,Services provided by a BROKER that are based strictly on EXECUTION and involve no INVESTMENT advice.,palgrave,0,38.32,11.9,0,12.87,11.6,13.31,11,13.9
EXECUTION RATE,The amount of trades that are CROSSED once MATCHED within a DARK POOL or on an EXCHANGE.,palgrave,0,96.52,4,0,6.67,7,8.19,7.5,6.8
EXECUTION RISK,"(1) The RISK that a SECURITIES TRADE will not be exe- cuted under current market prices, or per the terms of an ORDER. (2) The RISK of lowering ENTERPRISE VALUE by not being able to successfully gain entry into a new market, introduce a new product or service, or absorb a new acquisition.",palgrave,0,26.14,22.8,0,8.43,26.1,11.63,32.5,25.73
EXECUTIVE BOARD,See MANAGEMENT BOARD.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,1.5,14.53
EXECUTIVE DIRECTOR,"A board DIRECTOR that is also a member of the company’s EXECUTIVE MANAGEMENT group. An executive director is not considered to be independent for GOVERNANCE and control purposes. See also LEAD INDEPENDENT DIRECTOR, NON.",palgrave,0,34.63,11.2,14.6,12.57,10,8.84,8.666666667,13.93
EXECUTIVE MANAGEMENT,"A team within a company that is responsible for managing the tactical and strategic operations of the firm. The head of the executive management team is the CHIEF EXECUTIVE OFFICER, who may be appointed by the BOARD OF DIRECTORS.",palgrave,0,43.22,12.1,0,10.68,11.4,9.06,15.25,16.01
EXECUTOR,"An individual responsible for carrying out the terms of a will, including consolidating ASSETS, settling outstanding DEBTS, and distributing residual property to named BENEFICIARIES.",palgrave,0,-3.65,19.7,0,20.48,21.8,14.7,22,26.27
EXEMPT GILTS,A form of GILT in which the TAX payable on INTEREST COUPONS is deducted by the government before distribution to INVESTORS.,palgrave,0,58.62,10.3,0,10.91,12.1,9.94,14.5,14.11
EXEMPT SECURITY,"In the United States, a SECURITY that does not have to adhere to REGISTRATION requirements set forth by the SECURITIES AND EXCHANGE COMMISSION. Securities that are commonly exempted included",palgrave,0,31.38,12.5,0,14.14,12.1,9.26,11.75,16.83
EXEMPT UNIT TRUST,"In the United Kingdom, a form of UNIT TRUST that is exempt from corporation TAX and CAPITAL GAINS tax and can only be purchased and sold by tax-exempt institutional INVESTORS, such as PENSION FUNDS.",palgrave,0,45.43,15.4,0,10.8,18.4,9.5,21,15.95
EXERCISE DATE,"The date on which an OPTION can be EXERCISED. For EUROPEAN OPTIONS and BERMUDAN OPTIONS this occurs on a date cer- tain, for AMERICAN OPTIONS it may be any date.",palgrave,0,73.17,6.8,0,6.89,6.8,8.59,8,8.67
EXERCISE NOTICE,"A written notice from the buyer to the seller of an OPTION that it intends to EXERCISE its rights under the CONTRACT, either buying or selling the UNDERLYING at the STRIKE PRICE.",palgrave,0,47.46,14.6,0,9.59,16.2,10.65,18,15.3
EXERCISE PRICE,See STRIKE PRICE.,palgrave,0,119.19,-2.7,0,1.52,3.6,9.05,0.5,1.2
EXHAUST,"The level at which the COLLATERAL securing a MARGIN LOAN or PURPOSE LOAN has been depleted, requiring the borrower to post add- itional collateral or forcing the BANK to liquidate the collateral on hand to repay the loan.",palgrave,0,24.45,19.3,0,10.92,20.4,9.68,27,21.52
EXIMBANK,See EXPORT IMPORT BANK.,palgrave,0,75.88,3.7,0,4.35,4.1,11.73,1,1.6
EXOGENOUS LIQUIDITY,"LIQUIDITY and LIQUIDITY RISK that relate to an entire industry or national system, and are not confined to, or significantly influenced by, a single firm and its actions. See also ASSET LIQUIDITY RISK,ASSET-FUNDING LIQUIDITY RISK, ENDOGENOUS LIQUIDITY, FUNDING LIQUIDITY RISK.",palgrave,0,8.88,17,0,15.78,16.5,10.55,16,14
EXOTIC OPTION,See COMPLEX OPTION.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
EXOTIC SWAP,See COMPLEX SWAP.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
EXPECTATIONS THEORY,"A theory of INTEREST RATES indicating that the expectations of INVESTORS influence the TERM STRUCTURE of rates. Thus, if investors expect future rates will be higher than current rates, theYIELD CURVE will be upward sloping, and vice versa. Also known as MARKET EXPECTATIONS THEORY. See also LIQUIDITY PREFERENCE THEORY, MARKET SEGMENTATION THEORY.Additional references: Lutz and Lutz (1951); Meiselman (1962).",palgrave,0,39.53,11.4,13.4,15.25,14.1,11.06,10.625,12.7
EXPECTED CREDIT LOSS,"An average, or mathematically expected, CREDIT loss, generally determined through a combination of expected CREDIT RISK exposure, PROBABILITY of DEFAULT, and anticipated RECOVERY in DEFAULT. FINANCIAL INSTITUTIONS allocate CREDIT RESERVES in sup- port of expected credit losses. See also UN, WORST-CASE CREDIT LOSS.",palgrave,0,6.2,15.9,15.9,17.45,15.6,12.06,12.16666667,17.81
EXPECTED LOSS,"The EXPECTED VALUE, or MEAN, of a statistical loss dis- tribution function. The loss distribution function may be created to compute CREDIT losses, INSURANCE losses, or other financial losses.E(Rp) = z, x=1 wxE(Rx)where E(Rp) is the expected return of the portfolio, E(Rx) is the expected return of asset x in the portfolio, Wx is the weight of asset x in the portfolio, Z is the number of assets in the portfolio Also known as EX-ANTE PORTFOLIO RETURN. See also PORTFOLIO RETURN",palgrave,0,35.91,14.9,15.9,10.28,15.4,10.29,18.5,14.68
EXPECTED RETURN,"The estimated value of an ASSET or INVESTMENT, typically determined from a probability distribution of all possible return outcomes.",palgrave,0,1.43,17.8,0,16.88,16.3,11.23,16.5,20.23
EXPECTED SHORTFALL,See EXPECTED TAIL LOSS.,palgrave,0,75.88,3.7,0,4.35,4.1,7.78,2,11.6
EXPECTED TAIL LOSS,"A form of VALUE-AT-RISK (VAR) that measures, for a given TAIL PROBABILITY, the average or EXPECTED LOSS conditional on the loss exceeding the corresponding VAR. Also known as EXPECTED SHORTFALL. See also EXTREME VALUE THEORY.",palgrave,0,42.68,10.2,12.5,11.7,10.1,9.63,7.5,12.68
EXPECTED UTILITY,The weighted average utility value – or satisfaction from income or wealth – that is derived from a particular activity. Utility is generally used in an economic or theoretical RISK MANAGEMENT framework;precise measurement of a company’s utility is not generally considered feasible or practical.,palgrave,0,6.84,17.8,0,15.66,16.7,11.55,20,21.53
EXPECTED VALUE,"(1) The MEAN of a distribution of values that a random variable can take. (2) The value that is obtained given certain possible outcomes and PROBABILITIES of occurrence. In financial RISK MANAGEMENT terms this is often summarized as frequency (probability) times severity (outcome), or:where Prob is the probability of occurrence, O1 is outcome 1 and O2 is out- come 2.",palgrave,0,32.57,16.2,0,11.85,17.9,11.18,21,18
EXPECTED VOLATILITY,"An estimate of the VOLATILITY in a particular ASSET or market that is expected to occur in the future, used in the pricing of specific types of DERIVATIVES.",palgrave,0,34.6,15.4,0,9.35,14.3,11.23,20,19.77
EXPENSE,A cost associated with the acquisition of goods or services or the production of goods intended for resale.,palgrave,0,44.75,11.5,0,11.08,11.1,9.79,13,16.09
EXPENSE LOADING,"A margin an INSURER adds in the PREMIUM LOADING process to cover expenses such as AGENT COMMISSIONS, PREMIUM TAXES, marketing support costs, and contingencies. See also FAIR PREMIUM, PURE PREMIUM.",palgrave,0,39.33,11.5,0,13.27,12.3,11.75,12,14
EXPENSE RATIO,"In INSURANCE, a measure of an INSURER’s ability to cover its UNDERWRITING expenses with earned PREMIUM, computed as:where IE is incurred expense and Pr is premium.The lower the ratio, the more premium an insurer preserves as profit. See also COMBINED RATIO, LOSS RATIO.",palgrave,0,32.73,14,0,12.24,14.2,11.31,15.75,16.04
EXPERIENCE ACCOUNT,"(1) An account established for future DEBITS and CREDITS related to a FINITE INSURANCE CONTRACT. (2) The specific history of loss experience an INSURER has with a given INSURED, which is often used to help formulate future PREMIUM rates for a broader class of insureds. (2) See also EXPERIENCE RATING.",palgrave,0,12.27,24,0,11.68,27.3,12.43,35,26.4
EXPERIENCE RATED POLICY,"A LOSS-SENSITIVE INSURANCE CON- TRACT where the INSURER charges a PREMIUM that is directly related to the INSURED’s past loss experience: the greater the past losses, the higher the premium.",palgrave,0,32.57,16.2,0,13.47,18.9,12.49,23,21.33
EXPERIENCE RATING,"A procedure to calculate PREMIUM on an INSU- RANCE CONTRACT through modifications based on past loss experience. The INSURER examines actual CLAIMS and associated expenses for a group of INSUREDS in order to project possible future claims; based on its analysisit sets a premium that it believes will be sufficient to cover EXPECTED LOSS and PROFIT LOAD. See also EXPERIENCE ACCOUNT, SCHEDULE RATING.",palgrave,0,33.24,13.8,16.3,13.29,14.4,11.19,15.83333333,16.65
EXPERIENCE REFUND,The amount of PREMIUM an INSURER returns to an INSURED if the loss record is better than the amount indicated by the PURE PREMIUM incorporated in the basic premium rate.,palgrave,0,41.03,15,0,10.17,15.6,8.81,21,17.33
EXPIRATION CYCLE,"The standard cycle of CONTRACT expiries related to EXCHANGE-TRADED DERIVATIVES. Certain contracts follow a quarterly expiration cycle, while others opt for a shorter cycle (daily, weekly, monthly).",palgrave,0,23.93,13.3,0,17.16,15.1,13.08,8.25,11.33
EXPIRY,See  DATE.,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0,0.8
EXPIRY DATE,"The date on which an OPTION contract comes due, after which it becomes invalid. Also known as EXPIRY.",palgrave,0,79.26,4.4,0,7.04,5.1,9.35,3.5,3.6
EXPLODING OPTION,"A BULL SPREAD or BEAR SPREAD that generates a payoff once the two STRIKE PRICES defining the SPREAD are breached, i.e., the spread “explodes,” or terminates, resulting in an immediate payoff.",palgrave,0,56.93,13,0,12.14,18.5,10.78,19.5,17.56
EXPONENTIAL INTERPOLATION,"A technique of INTERPOLATION that uses DISCOUNT FACTORS to connect two points on a YIELD CURVE.− ti− t1= D1CUBIC SPLINE INTERPOLATION, LINEAR INTERPOLATION.",palgrave,0,31.21,14.6,0,15.79,17.5,13.02,14.5,10.94
EXPONENTIAL SMOOTHING,"A statistical mechanism where more recent data observations are given greater weight in computations than older obser- vations. Such exponential smoothing is used in econometric modeling, and certain forms of VALUE-AT-RISK modeling. Also known as EXPONENTIAL WEIGHTING.",palgrave,0,33.61,11.6,13,17.27,14.4,11.93,8.166666667,12.49
EXPONENTIAL WEIGHTING,See EXPONENTIAL SMOOTHING.,palgrave,0,9.21,12.7,0,18.92,17.8,14.31,1.5,14.53
EXPORT IMPORT BANK,"The US EXPORT CREDIT agency, created to encour- age TRADE flows by providing export credit GUARANTEES and guaranteeing LOANS made by banks to US exporters. Also known as EXIMBANK.",palgrave,0,48.3,10.1,0,11.53,10.4,11.43,8.75,12.7
EXPORTS,"Goods and services produced domestically and sold to nonresi- dents, including VISIBLES (such as goods) and INVISIBLES (services). Some invisibles are sent abroad, while nonresident visitors use others domes- tically; capital exports can involve LOANS to nonresidents or the pur- chase of ASSETS or INVESTMENTS abroad. See also BALANCE OF TRADE, IMPORTS.",palgrave,0,37,12.4,14.1,14.67,14.7,11.48,12.33333333,13.84
EXPOSED TO THE MARKET,A purchase or sale ORDER in the SECURITIES markets that must be shown to the market at large before it can beINTERNALIZED or CROSSED on an alternative venue. See also SUNSHINE TRADE.,palgrave,0,63.7,8.4,0,9.45,8.8,8.38,8.5,10.15
EXPRESS AUTHORITY,See ACTUAL AUTHORITY.,palgrave,0,-24.64,17.4,0,9.23,9.9,14.31,2.5,27.87
EXPROPRIATION,"The taking of private property by a government author- ity for public use, to enforce social equality, or to deny private ownership, generally outside the framework of laws. See also NATIONALIZATION, PRIVATIZATION.",palgrave,0,29.86,13.1,0,14.32,13.5,10.84,11.5,13.9
EXTENDIBLE OPTION,An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to EXERCISE the CONTRACT on a particular reset date or reset the STRIKE PRICE to the current market level and extend the option for another reset period. The extendible option is a variation of the PARTIAL LOOKBACK OPTION.,palgrave,0,39.67,13.4,0,12.02,14,10.27,14.5,12.68
EXTENDIBLE SWAP,"A structured DERIVATIVE comprised of an INTEREST RATE SWAP and an OPTION that grants one party the right to require its COUNTERPARTY to continue a previously contracted swap under existing terms for an additional period of time. See also PAYER ,RECEIVER EXTENDIBLE SWAP.",palgrave,0,32.73,14,0,13.05,14.3,11.68,15.75,17.9
EXTENSION RISK,"The RISK that one party to a CONTRACT or financial transaction will choose to extend the terms of the contract, to the potential financial detriment of the second party.",palgrave,0,50.5,13.4,0,11.09,16,9.43,18.5,15.74
EXTERNAL AUDIT,A form of AUDIT performed on a company or other organ- ization by an independent AUDITOR. The issuance of an AUDIT OPINION requires the use of an external auditor. See also INTERNAL AUDIT.,palgrave,0,51.85,8.8,11.2,8.27,6.3,8.97,6.5,9.25
EXTERNAL DEBT,"DEBT raised by a country or company outside of its own national system, generally in a FOREIGN CURRENCY.",palgrave,0,44.75,11.5,0,9.8,10.3,10.67,13,13.87
EXTRAORDINARY ITEMS,"Profit and loss items incurred in a company’s business which are not expected to recur in the future (and which may be excluded by analysts in order to perform an accurate period on period com- parison). Extraordinary items appear ABOVE THE LINE, as a separate disclos- ure item. See also EXCEPTIONAL ITEMS.",palgrave,0,45.46,11.2,14.1,10.09,10.4,10.26,12.33333333,13.84
EXTREME MORTALITY BOND,"A form of INSURANCE-LINKED SECURITY that seeks to protect the sponsoring INSURER or REINSURER from an extreme, or catastrophic, rise in mortality rates within a defined target population that would trigger payout on life INSURANCE policies. Such bonds can be used bythe sponsor to transfer the RISK associated with high mortality from a low PROBABILITY event, such as a terrorist attack or a pandemic.ε> 0, and for Weibull ε < 0.",palgrave,0,27.49,18.1,0,12.25,20.2,12.37,24.25,20.86
FACE VALUE,"The PRINCIPAL amount of a SECURITY; for standard securities transactions, face value and PAR VALUE are often equivalent. Face value is distinguished from MARKET VALUE, although they may converge to the same value at MATURITY.",palgrave,0,36.79,12.5,0,13.22,13,9.47,12.25,15
FACILITY,"A line of CREDIT granted by a BANK to a client. The availabil- ity of the facility depends on the nature of the CONTRACT and the fees paid by the client; the most reliable facilities, which are a form of COMMITTED FUNDING, command higher fees in relation to those that may be cancelled or withdrawn by the bank on short notice (e.g., ADVISED LINE).",palgrave,0,55.92,13.4,0,8.14,15.5,10.65,18.5,15.93
FACILITY FEE,See COMMITMENT FEE.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,1.5,14.53
FACTOR,"A firm that specializes in ING activities, generally a non- BANK FINANCIAL INSTITUTION with significant CREDIT RISK expertise.",palgrave,0,10.91,16.2,0,16.59,16.1,15.06,16,22.76
FACTOR MODEL,See MULTIFACTOR RISK MODEL.,palgrave,0,33.58,9.6,0,10.15,8.8,15.68,2,11.6
FACTOR OF PRODUCTION,"The essential elements that are used in the pro- duction of goods, including land, labor, and CAPITAL (broadly defined to include all productive ASSETS, such as plant and equipment and raw materialINVENTORIES).",palgrave,0,22.08,18.1,0,14.28,20.9,11.64,22,19.05
FACTORING,"The process of obtaining short-term FINANCING through the outright sale of ACCOUNTS RECEIVABLE to a third party FACTOR on a NONRECOURSE basis. See also ACCOUNTS RECEIVABLE FINANCING, FORFAITING.",palgrave,0,40.35,11.1,0,15.88,13.6,9.97,10.5,12.74
FACULTATIVE,A process where a REINSURER can accept or reject coverage for individual RISKS presented for consideration by a CEDING INSURER. See also  REINSURANCE.,palgrave,0,25.96,12.5,0,13.03,10.3,11.76,8.25,16.77
FACULTATIVE OBLIGATORY TREATY,"A hybrid of FACULTATIVE REINSU- RANCE and TREATY REINSURANCE where the CEDING INSURER can choose to assign certain RISKS to the REINSURER, who is then required to accept them.FACULTATIVE OBLIGATORY TREATY.",palgrave,0,31.55,16.6,0,15.33,20.7,11.8,21.5,18.85
FAIL TO DELIVER,"A situation where a selling DEALER has not delivered SECURITIES to the buying dealer, and will thus not receive payment. Fails arecommonly used as a measure of settlements-based OPERATIONAL RISK. See also FAIL TO RECEIVE, AGED FAIL.",palgrave,0,50.53,9.3,11.2,11.64,9.7,9.79,7.166666667,11.41
FAIL TO RECEIVE,"A situation where a buying DEALER has not received SECURITIES from the selling dealer, and will thus not make its payment. Fails are commonly used as a measure of settlements-based OPERATIONAL RISK. See also AGED FAIL, FAIL TO DELIVER.",palgrave,0,58.28,8.4,11.2,10.25,8.9,9.95,7.5,11.35
FAIR PREMIUM,"An INSURANCE pricing methodology where the PREMIUM charged an INSURED is intended to cover EXPECTED LOSSES and operating and administrative expenses, and provide an equitable RETURN to provid-ers of CAPITAL. Fair premium comprises of PURE PREMIUM and PREMIUM F LOADING (which also includes EXPENSE LOADING). Also known as GROSSRATE.",palgrave,0,29.55,13.2,15.5,15.19,14.1,11.53,12.83333333,14.68
FAIR PRESENTATION,"In the United States, a general ACCOUNTING concept indicating that the FINANCIAL STATEMENTS of a company should reflect the true financial position, and should not be misleading. See also TRUE AND FAIR VIEW.",palgrave,0,46.27,10.9,0,12.47,11.8,8.28,12.25,12.66
FALLEN ANGEL,A BOND with an INVESTMENT GRADE CREDIT RATING at the time of issuance that has been downgraded to SUBINVESTMENT GRADE status as a result of a deterioration in the ISSUER’S financial position. See also HIGH-YIELD BOND.,palgrave,0,53.21,10.3,0,11.25,11.4,10.67,12,13.87
FALLING KNIFE,A SECURITY whose value has fallen sharply in a short period of time. A falling knife may represent an INVESTMENT oppor- tunity for INVESTORS who believe the security is OVERSOLD. See also CATCH A .,palgrave,0,51.55,8.9,11.2,8.68,6.8,9.31,6.833333333,10.4
FALLING TOP,"A TECHNICAL ANALYSIS charting figures depicting a declin- ing SECURITIES price or INDEX value over time, with ever-lower resistance lev- els, generally considered to be a BEARISH signal. Also known as DESCENDING TOP. See also ASCENDING TOP, DESCENDING BOTTOM, RISING BOTTOM.",palgrave,0,32.19,12.2,14.1,13.8,12.3,11.63,10.5,14.26
FALSE MARKET,"A market where TRADING actions are influenced by erroneous information or misinformation, creating complications in the PRICE DISCOVERY process. A false market may develop in ILLIQUID SECURITIES or EMERGING MARKET securities, where standards of information transparency are not as rigorous.",palgrave,0,17.34,15.8,0,18.56,18.1,11.34,16.5,19
FANNIE MAE,See FEDERAL NATIONAL MORTGAGE ASSOCIATION.,palgrave,0,-35.13,19.4,0,21.2,16.9,16.52,4.5,26
FARMER MAC,See FEDERAL AGRICULTURAL MORTGAGE CORPORATION.,palgrave,0,-35.13,19.4,0,25.84,20.6,16.52,4.5,26
FAST MARKET,"A financial market that is characterized by heavy vol- ume and high levels of market VOLATILITY, and which can generate ORDER IMBALANCES. See also LOCKED MARKET.",palgrave,0,49.82,9.5,0,11.3,9.7,9.75,8,12.89
FAST TAPE,A market condition that occurs when TRADING in a par- ticular SECURITY or contract is so rapid and heavy that the current price is unavailable.,palgrave,0,46.1,13,0,10.16,13.5,11.19,16.5,16.4
FAT TAIL,See KURTOSIS.,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,1,20.8
FCFE,See FREE CASH FLOW TO EQUITY.,palgrave,0,90.77,2.1,0,1.38,0.4,6.57,3,9.07
FCFF,See FREE CASH FLOW TO FIRM.,palgrave,0,116.15,-1.5,0,-0.54,-1.2,6.57,2,2.4
FCM,See FUTURES COMMISSION MERCHANT.,palgrave,0,33.58,9.6,0,17.4,14.7,15.68,2,11.6
FDIC,See FEDERAL DEPOSIT INSURANCE CORPORATION.,palgrave,0,-18.21,17,0,21.2,16.9,13.36,4.5,26
FEASIBLE PORTFOLIO,"Any PORTFOLIO an INVESTOR can construct from available ASSETS in the marketplace. A feasible portfolio represents any com- bination of investable assets, but need not necessarily provide the greatest RETURN for a given level of RISK. See also EFFICIENT PORTFOLIO.",palgrave,0,41.06,10.8,13,13.62,11.6,10.61,8.666666667,12.32
FED FUNDS,See FEDERAL FUNDS.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,1.5,14.53
FED WIRE,"An electronic network connecting the FEDERAL RESERVE BOARD, the 12 FEDERAL RESERVE BANKS, the US Treasury and US agencies, which is used for immediate payments, FEDERAL FUNDS transfers, and TREASURY NOTE, TREASURY BOND, and AGENCY SECURITY transfers.",palgrave,0,25.46,18.9,0,15.62,24.3,12.3,25.5,20.21
FEDERAL FUNDS RATE,"The overnight INTEREST RATE charged on FEDERAL FUNDS, and a widely followed indicator of market rates.",palgrave,0,55.24,9.5,0,13.22,12.2,12.33,11,13.9
FEDERAL RESERVE BANKS,"The 12 BANKS in the US FEDERAL RESERVE SYSTEM that are responsible for providing CENTRAL BANK services to MEMBER BANKS, LENDING via the DISCOUNT WINDOW, monitoring the activities of banks operating within their jurisdictions, and assisting in the formulation of MONETARY POLICY via the FEDERAL OPEN MARKETS COMMITTEE.",palgrave,0,-2.63,25.6,0,15.74,29.1,13.58,37,29.2
FEDERAL RESERVE SYSTEM,"The US CENTRAL BANK system, created in 1913 via the Federal Reserve Act, comprised of 12 FEDERAL RESERVE BANKS, the FEDERAL RESERVE BOARD, the FEDERAL OPEN MARKETS COMMITTEE, and MEMBER BANKS (which hold EQUITY in the 12 Federal Reserve banks). Operating responsibilities are divided between the board and the banks.",palgrave,0,37.64,14.2,0,12.94,16.2,9.93,18,15.6
FEDERAL TRADE COMMISSION (FTC),"A US federal agency responsible for promoting competitive behavior by preventing TRADE restraints, price dis- crimination, formation of MONOPOLY power, and illegal or predatory pricing policies. The FTC acts via voluntary enforcement and formal LITIGATION.",palgrave,0,11.41,16,0,18.21,17.2,14.43,15.75,23
FEEDER FUND,"A FUND that invests CAPITAL gathered from INVESTORS solely or primarily in another fund (i.e., a MASTER FUND). The feeder fund structure is widely employed in the HEDGE FUND sector.",palgrave,0,56.25,9.1,0,10.14,9.9,11.22,8,7.33
FENCE,See COLLAR.,palgrave,0,77.91,2.9,0,-4.51,3.1,0.1,0,0.8
FHLB,See FEDERAL HOME LOAN BANKS.,palgrave,0,83.32,2.9,0,4.96,3.7,10.2,2.5,10
FHLMC,See FEDERAL HOME LOAN MORTGAGE CORPORATION.,palgrave,0,31.55,10.4,0,14.95,11.4,11.83,4,15.73
FIAT MONEY,CURRENCY backed by an issuing nation’s proclamation that it is legal tender rather than a specific RESERVE of GOLD or metal; fiat moneyis not specifically convertible into metal. Most currency in circulation through- out the world is fiat money.,palgrave,0,43.22,12.1,0,12.94,13.3,10.27,13.75,14.98
FIDELITY BOND,"In INSURANCE, a BOND that GUARANTEES an INSURER will pay the INSURED for losses caused by dishonesty or FRAUD of employees.",palgrave,0,50.16,11.5,0,10.62,12.1,12.2,15.5,17.92
FIDUCIARY,An individual or institution that is responsible for administer- ing duties for the express benefit of other parties. See also  DUTY.,palgrave,0,26.98,12.1,0,11.34,8.9,10.92,6.75,13.72
FIDUCIARY DEPOSIT,A DEPOSIT placed by a customer through an AGENT BANK with a second (recipient) bank; the recipient bank forwards INTEREST on the deposit to the agent bank for onward disbursement to the client. The recipient bank posts the funds on its BALANCE SHEET as an INTERBANK placement rather than a customer DEPOSIT.,palgrave,0,53.55,12.3,0,11.03,14.7,8.57,16,13.48
FIDUCIARY DUTY,"(1) The legal duty that DIRECTORS and executives have in representing SHAREHOLDER interests; this includes, but is not limited to, DUTY OF CARE and DUTY OF LOYALTY. (2) The legal duty that a FIDUCIARY has in administering assigned tasks or services.",palgrave,0,12.94,21.6,0,11.91,23.1,11.83,29.5,25.18
FIGHTING THE TAPE,"The general practice of attempting to take a controlling position in a company’s COMMON STOCK. Fighting the tape is generally unsuccessful in all but the most thinly traded stocks, and is illegal in certain jurisdictions unless accompanied by formal disclosure of holdings and/ or a full TENDER OFFER.",palgrave,0,30.2,15,0,13.23,15.5,11.08,17.5,17.93
FILL OR KILL,"A common form of designating an ALL-OR-NONE ORDER. Written trade tickets may be marked “FOK” as an abbreviation. See alsoGOOD TILL CANCELLED ORDER, MARKET ORDER, STOP LOSS ORDER.",palgrave,0,53.58,8.1,8.8,10.76,8.6,8.61,4.666666667,8.01
FILZ,"Literally “interwoven” material or fabric; the term is commonly used in Switzerland to describe the close, and sometimes conflicted, relation- ships that exist between board DIRECTORS, including instances of nepotism and INTERLOCKING DIRECTORSHIPS.",palgrave,0,4.14,20.9,0,20.2,25.9,12.93,26.5,25.32
FINAL TRADING DAY,The last day during which TRADING can occur in anEXCHANGE-TRADED DERIVATIVE CONTRACT.,palgrave,0,42.38,10.3,0,16.63,13.6,12.13,7,8.13
FINALITY,"The time at which funds that have been placed by a depositor in a BANK become irrevocable and cannot be returned, unless consent is obtained from the PAYEE. Finality can range from immediate (for WIRE TRANSFERS) to several days (for CHECKS, which can be debited if rejected by the DRAWEE bank). See also AVAILABILITY.",palgrave,0,53.21,10.3,12.5,9.8,10.6,9.79,11.66666667,12.39
FINANCE,"The broad area of study and practice related to MONEY, BANKING, INVESTMENT, INSURANCE, and RISK MANAGEMENT.",palgrave,0,46.78,10.7,0,13.98,13.7,12.33,12,16.4
FINANCE BILL,"A form of BILL OF EXCHANGE used for short-term FINANCING purposes, and which cannot be sold or marketed to a third party.",palgrave,0,57.61,10.7,0,8.3,11,6.88,14,14.25
FINANCE HOUSE,"In the United Kingdom, a FINANCE COMPANY.",palgrave,0,55.91,7.2,0,7.37,5.6,6.24,3.5,2.8
FINANCIAL ACCOUNTING,"The recording and reporting of a company’s financial transactions based on ACCOUNTING PRINCIPLES or other applic- able standards, which is followed by an EXTERNAL AUDIT and interim/ annual presentation to external STAKEHOLDERS. See also MANAGEMENT ACCOUNTING.INTERNATIONAL ACCOUNTING STANDARDS BOARD.",palgrave,0,9.38,16.8,0,20.77,20,12.3,17.25,21.13
FINANCIAL ANALYSIS,"The process of analyzing a company’s FINANCIAL STATEMENTS in order to determine its financial strength, its trends over time, and how it compares with peers in its industry. Financial analysis is used by BANKS extending loans to clients, INVESTMENT BANKS and SECURITIES FIRMS recommending specific INVESTMENT actions on STOCKS, and CREDIT RATING AGENCIES rating the LIABILITIES of ISSUERS. See also CREDIT ANALYSIS.BANKRUPTCY.",palgrave,0,33.54,13.7,16.3,16.13,16.6,12.05,15.66666667,16.67
FINANCIAL ENGINEERING,"The area of FINANCE concerned with creat- ing financing, INVESTMENT and RISK MANAGEMENT solutions through the development of new instruments or the repackaging of existing instruments,e.g., the development of new DERIVATIVES with unique payoff profiles or the creation of SYNTHETIC ASSETS and LIABILITIES formed from packages of derivatives and UNDERLYINGS. Financial engineering relies heavily on quan- titative methods and modeling in order to generate solutions with very specific RISK and RETURN characteristics. See also STRUCTURED FINANCE.",palgrave,0,11.96,17.9,19.3,18.11,20.3,12.99,20.66666667,20.65
FINANCIAL FUTURE,"An EXCHANGE-TRADED FUTURES CONTRACT that references a financial ASSET or marketplace. Key contracts include INTEREST RATE FUTURES, CURRENCY FUTURES, EQUITY FUTURES, and INDEX FUTURES, and may be designed to settle on a PHYSICAL or CASH BASIS. See also COMMODITY FUTURE.",palgrave,0,32.6,12,13,14.02,12.3,11.4,8.666666667,13.32
FINANCIAL GUARANTEE,(1) A CONTRACT that provides for timely payment of PRINCIPAL and INTEREST to providers of CAPITAL. (2) A RISK TRANSFER mechanism that functions as a form of CONTINGENT DEBT FINANCING by giving the BENEFICIARY access to funds from the GUARANTOR in the event a loss TRIGGER is breached.,palgrave,0,22.76,22,0,11.51,25.8,13.25,32,25.03
FINANCIAL HOLDING COMPANY,"In the United States, a HOLDING COMPANY authorized under the GRAMM-LEACH-BLILEY ACT to own entities involved in SECURITIES TRADING and UNDERWRITING, CORPORATE FINANCE, INSURANCE, INVESTMENT MANAGEMENT, and commercial banking.",palgrave,0,-0.27,20.5,0,21.13,25.1,14.33,25.5,24.01
FINANCIAL INSTITUTION,"A regulated organization that provides a range of BANKING and INVESTMENT services. Such institutions can be constituted in different forms (e.g., COMMERCIAL BANK, INVESTMENT BANK, UNIVERSAL BANK, MERCHANT BANK, BOUTIQUE) and deal with disparate products and clients.",palgrave,0,35.78,12.9,0,17.06,17.1,12.66,13.75,14.97
FINANCIAL INSURANCE,See FINITE INSURANCE.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
FINANCIAL LEASE,See CAPITAL LEASE.,palgrave,0,59.97,5.6,0,3.43,5.2,9.05,1.5,1.2
FINANCIAL PAPER,COMMERCIAL PAPER issued by a BANK or SECURITIES FIRM. See also INDUSTRIAL PAPER.,palgrave,0,39.5,9.4,0,9.22,6.5,10.03,3.75,11.83
FINANCIAL RATIOS,"Measures derived from information contained in the FINANCIAL STATEMENTS of a company that provide additional insight into financial strength and performance. Ratios, which vary by industry, can be computed for profitability, activity, LIQUIDITY, CASH FLOW, andSOLVENCY/ LEVERAGE. Results can be compared on a historical basis to estab- lish a trend, and against other peer companies.Common profitability ratios: GROSS MARGIN, NET INTEREST MARGIN, NET PROFIT MARGIN, OPERATING MARGIN, RETURN ON ASSETS, RETURN ON EQUITY, RETURN ON INVESTMENT, DUPONT RATIO.Common activity ratios: INVENTORY TURNOVER, ACCOUNTS PAYABLE TURNOVER, ACCOUNTS RECEIVABLE TURNOVER, ASSET TURNOVER.Common liquidity ratios: CURRENT RATIO, QUICK RATIO, DAYS PAYABLES OUTSTANDING, DAYS SALES INVENTORY, DAYS SALES OUTSTANDING, DAYS COST OF GOODS SOLD.Common cash flow ratios: CASH FLOW TO CAPITAL INVESTMENT, CASH FLOW TO DEBT.Common solvency/leverage ratios: FIXED CHARGE COVERAGE, TIMES INTEREST EARNED, DEBT TO EQUITY, DEBT TO ASSETS, CONTINGENTS TO ASSETS. Also known as ACCOUNTING RATIOS.",palgrave,0,9.56,20.9,20.7,18.58,26.7,11.89,25.33333333,20.79
FINANCIAL REINSURANCE,See FINITE REINSURANCE.,palgrave,0,34.59,9.2,0,13.12,13,14.31,1.5,14.53
FINANCIAL RISK,"The RISK of loss arising from the financial activities of a firm, broadly taken to include CREDIT RISK, MARKET RISK, and LIQUIDITY RISK. See also OPERATING RISK.",palgrave,0,49.31,9.7,0,10.03,8.9,10.15,7.75,11.33
FINANCIAL SERVICE DIRECTIVE,"A directive established by the EUROPEAN UNION in 1996 indicating that a BANK or other FINANCIAL INSTITU- TION authorized to provide services in one member country can provide the same services in other member countries. See also MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE, PASSPORTING.",palgrave,0,32.73,14,0,14.97,15.9,10.58,16.25,16.97
FINANCIAL SERVICES ACT 1986,"In the United Kingdom, an Act of Parliament designed to increase regulatory and self-regulatory control over INVESTMENTS and provide INVESTORS with additional protections. It was amended through the FINANCIAL SERVICES AND MARKETS ACT 2000.LEACH-BLILEY ACT.",palgrave,0,28.33,13.7,0,18.21,17.2,12.17,12.25,13.86
FINANCIAL SLACK,"The excess DEBT financing capacity available to a company, which can be applied to a future ACQUISITION or capitalINVESTMENT.",palgrave,0,18.35,15.4,0,14.79,14.6,12.06,14.5,16.02
FINANCIAL STATEMENTS,"The key financial information conveyed by a company based on the use of standardized accounting standards. The main financial statements include the BALANCE SHEET, INCOME STATEMENT, and CASH FLOW STATEMENT, along with supplementary FOOTNOTES. Also known as ACCOUNTS, FINANCIALS.",palgrave,0,49.82,9.5,12.5,16.46,14,10.76,8.166666667,11.35
FINANCIAL YEAR,See FISCAL YEAR.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
FINANCIALS,See FINANCIAL STATEMENTS.,palgrave,0,34.59,9.2,0,16.95,16.2,14.31,1.5,14.53
FINANCIER,"A professional involved in originating and structuring business transactions and associated financing arrangements, employed by a BANK, MERCHANT BANK, or BOUTIQUE. See also BANKER, INVESTMENT BANKER, PRIVATE BANKER.",palgrave,0,23.43,13.5,0,19.6,17.2,11.66,11,17.03
FINANCING CASH FLOW,"The portion of the corporate STATEMENT OF CASH FLOWS depicting the cash inflows and cash outflows that impact a firm’s LIABILITIES and CAPITAL, including issuance/repayment of short- and long- term DEBT, issuance of COMMON STOCK and PREFERRED STOCK, repur- chase of TREASURY STOCK, and payment of DIVIDENDS. See also INVESTING CASH FLOW, OPERATING CASH FLOW.",palgrave,0,43.56,14,0,13.93,18.4,11.03,18.25,16.82
FINE PAPER,See FIRST CLASS PAPER.,palgrave,0,92.8,1.3,0,2.9,2.9,0.2,1,1.6
FINE PRINT,"The detailed legal language often contained in CONTRACTS or other documentation that contains relevant conditions, REPRESENTATIONS, WARRANTIES, and other essential information. Also known as SMALL PRINT.",palgrave,0,15.98,14.3,0,20.4,17.3,11.57,8.5,14.43
FINISHED GOODS INVENTORY,"A class of INVENTORY held by a com- pany that includes all goods that are finalized and ready for sale. See also RAW MATERIAL INVENTORY, WORK-IN-PROCESS INVENTORY.",palgrave,0,49.31,9.7,0,10.26,9.2,8.4,8.75,9.84
FINITE QUOTA SHARE,"A FINITE REINSURANCE agreement where the REINSURER agrees to pay, on behalf of the CEDING INSURER, a fixed or vari- able proportion of CLAIMS and expenses as they occur; ceding COMMISSIONS and INVESTMENT income from RESERVES typically cover actual claims, but if they prove insufficient the reinsurer funds the shortfall and recovers the diffe- rence from the insurer over the life of the contract.",palgrave,0,6.52,28.3,0,13.36,35.2,13.23,45,32.48
FINITE REINSURANCE,"A REINSURANCE agreement used primar- ily to finance, rather than transfer, a CEDING INSURER’s RISK exposures. The INSURER pays PREMIUMS into an EXPERIENCE ACCOUNT and the REINSURER covers losses under the policy once they exceed the funded amount (up to predefined maximum limits). Finite reinsurance can be writ- ten in a variety of forms, including SPREAD LOSS, FINITE QUOTA SHARE, LOSS PORTFOLIO TRANSFER, ADVERSE DEVELOPMENT COVER, FUNDED EXCESS OF LOSS, and AGGREGATE STOP LOSS. Also known as FINANCIAL REINSURANCE. See also FINITE INSURANCE.",palgrave,0,37.71,12.1,14.3,13.74,13.2,11.31,12.1,14.83
FIRE SALE,"Liquidation of an ASSET at a distressed, or sharply DIS- COUNTED, price. A fire sale may be required if an INVESTOR or company is in urgent need of cash resources. See also DISTRESSED ASSET, VULTURE BID.",palgrave,0,76.22,5.6,7.8,7.76,6.6,9.06,5.666666667,5.91
FIRM COMMITMENT,"(1) A contractual agreement by a BANK to a client to provide a maximum amount of financing under a FACILITY, generally in exchange for a commitment fee. (2) See BOUGHT DEAL. (1) Also known asCOMMITTED FACILITY.",palgrave,0,26.48,18.5,0,9.88,19.5,11.12,26,22.18
FIRM ORDER,"An ORDER submitted by a client to a BROKER or DEALER that remains valid until it is cancelled by the client. If the specific parameters regarding price, quantity, and time can be executed the broker/dealer is not required to refer back to the client.",palgrave,0,57.61,10.7,0,9.34,11.7,9.75,14.5,14.25
FIRM PRICE,See FIRM QUOTE.,palgrave,0,119.19,-2.7,0,-2.38,0.5,14.31,0.5,1.2
FIRM QUOTE,"A BID and/or OFFER supplied by a DEALER or MARKET MAKER to a BROKER or client that can be regarded as reliable and action- able. Also known as FIRM PRICE. See also INDICATIVE QUOTE, QUOTED SPREAD.",palgrave,0,67.76,6.8,8.8,6.83,5.6,9.5,6,8.13
FIRM VALUE,"The value of a firm, computed as EQUITY value plus the MARKET VALUE of DEBT.",palgrave,0,64.71,8,0,5.33,5.5,9.64,8.5,11.33
FIRST CALL DATE,The first date on which an ISSUER can call back a CALLABLE BOND outstanding in the marketplace; a typical bond might have several sequential call opportunities appearing after the first date. The time period between the issuance of the security and the first call date is regarded as HARD CALL PROTECTION and protects the INVESTOR against REINVESTMENT RISK. See also YIELD TO CALL.,palgrave,0,58.62,10.3,14.6,11.72,12.9,9.44,14.5,15.38
FIRST CLASS PAPER,"BILLS OF EXCHANGE or other MONEY MARKET SECURITIES with the highest CREDIT RATING, typically backed by a top-rated BANK or DISCOUNT HOUSE. Also known as A-1 PAPER, FINE PAPER.",palgrave,0,56.76,8.9,0,10.32,9.7,9.8,7.25,8.56
FIRST DOLLAR COVERAGE,"An INSURANCE CONTRACT that is not sub- ject to a DEDUCTIBLE or which is made equivalent to a “no deductible” pol- icy through an EXCESS INSURANCE clause. Under first dollar coverage the INSURER, rather than the INSURED, occupies the FIRST LOSS position.",palgrave,0,58.62,10.3,0,11.14,12.9,9.94,14,14.11
FIRST IN FIRST OUT (FIFO),"An INVENTORY management and ACCOUNTING methodology where the first raw materials or work-in-progress inventory acquired for production of final goods are used first. Costs and inventory valuation are thus based on the earliest, and then latest, items in inventory, regardless of whether this corresponds to the actual physical move- ment in the inventory. See also LAST IN FIRST OUT (LIFO).",palgrave,0,34.26,13.5,16.7,13.63,14.6,10.68,15.66666667,16
FIRST LOSS,"In an INSURANCE or REINSURANCE arrangement, the pos- ition that absorbs the initial losses arising from damage or destruction. The first loss position can be created through a DEDUCTIBLE where the INSURED bears the losses up to the ATTACHMENT point. If no DEDUCTIBLE exists, the INSURER bears the first loss position up to the POLICY CAP, or the point at which REINSURANCE attaches. See also EXCESS LAYER.",palgrave,0,54.42,9.8,13,11.08,10.8,9.65,11.375,12.69
FIRST LOSS PIECE,See RESIDUAL SECURITY.,palgrave,0,-24.64,17.4,0,11.15,11.5,14.31,2.5,27.87
FIRST LOSS POLICY,"A form of INSURANCE POLICY that places a CAP on the total value being insured, even if this is less than the appraised value of the item or property being insured.",palgrave,0,48.47,14.2,0,7.85,14.3,9.25,18.5,16.27
FIRST MORTGAGE DEBENTURE,"In the United Kingdom, a DEBENTURE that is secured by a first priority FIXED CHARGE over a specific property.",palgrave,0,52.19,10.7,0,9.86,10.6,9.57,12.5,13.92
FIRST NOTICE DAY,"In the EXCHANGE-TRADED DERIVATIVE market, the day on which the seller of a CONTRACT advises the buyer of its intent to deliver.",palgrave,0,40.69,13.1,0,9.86,12.3,10.47,15,14.25
FISCAL AGENT,An AGENT in a BOND transaction that arranges for COUPONS to be paid to INVESTORS.,palgrave,0,81.63,5.6,0,7.65,7.1,10.7,7.5,8.67
FISCAL YEAR,"A 12-month period that is used to compute income or REVENUES for TAX and other financial reporting purposes, and which may vary by country (e.g., in the United Kingdom, Canada, and Japan the fiscal year runs from April 1 to March 31, in the United States October 1 to September 30, and so forth). Also known as FINANCIAL YEAR, TAX YEAR.",palgrave,0,57.44,12.8,0,8.25,15.1,9.55,18.75,14.82
FISHER EFFECT,"In MACROECONOMICS, a theory put forth by economist Irving Fisher indicating that the real INTEREST RATE is equal to the NOM- INAL INTEREST RATE less expected INFLATION, implying that for a constant real rate, the nominal rate is a direct function of the expected inflation rate. Using CONTINUOUS COMPOUNDING, the relationship is given as:where rn is the nominal interest rate, infl is the expected inflation rate, e is the exponential constant. Also known as FISHER PARITY.",palgrave,0,28.88,15.5,18.2,12.54,15.9,9.88,19.66666667,17.49
FISHER PARITY,See FISHER EFFECT.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
FIX PROTOCOL,See FINANCIAL INFORMATION EXCHANGE PROTOCOL,palgrave,0,-18.21,17,0,23.52,17.8,13.36,4.5,26
FIXED ANNUITY,"An ANNUITY where PREMIUMS received from the INVESTOR grow at a fixed rate (known as the credited rate) specified by the INSURER. The growing amount accrues and is added to the cash value of the annuity, which remains untaxed as long as it remains in its annuitizedform. The most common types of fixed annuities include the flexible pre- mium deferred annuity (with flexible timing and amount of contribution by the investor) and the single premium deferred annuity (with set timing and amounts). See also GUARANTEED INVESTMENT CONTRACT, VARIABLE ANNUITY.",palgrave,0,48.84,12,14.9,12.54,14.4,10.07,15.375,14.31
FIXED CAPITAL,The CAPITAL of a company that is specifically used to sup- port FIXED ASSETS.,palgrave,0,57.27,8.8,0,7.82,7.1,9.97,9,8.46
FIXED CHARGE,"A CHARGE on the specific ASSETS of a company in favor of the chargee (typically a lending BANK), which prohibits the company from disposing of the assets without prior consent. Fixed charge CREDITORS have a SENIOR, secured ranking in the event of BANKRUPTCY, and are repaid before outstanding PENSION and employee compensation obligations. See alsoFLOATING CHARGE.",palgrave,0,44.03,11.8,14.6,13.92,13.9,11.05,13.33333333,14.62
FIXED CHARGE COVERAGE,"A measure of a company’s ability to repay its PRINCIPAL AMORTIZATION, INTEREST, LEASE payments, and other fixed charges with pretax EARNINGS. Fixed charge coverage is computed via:where EBFC equals earnings before fixed charges, Tax is income tax paid, and FC is fixed charges.The larger the ratio, the greater the company’s ability to cover its obliga- tions. See also DEBT SERVICE COVERAGE, INTEREST COVERAGE, TIMES INTEREST EARNED.",palgrave,0,40.69,13.1,15,13.92,15.9,10.71,15.33333333,13.04
FIXED COST,"An EXPENSE that does not change in proportion to a com- pany’s output, but which remains constant regardless of activity (e.g., rent, salaries). Fixed cost is one of two elements, along with VARIABLE COST, which comprise TOTAL COSTS.",palgrave,0,69.11,8.3,0,10.79,12.4,12.06,11.5,11.81
FIXED EXCHANGE RATE,An EXCHANGE RATE that is set by a country’s CENTRAL BANK or monetary authority based on its MACROECONOMIC policies and its intervention in the FOREIGN EXCHANGE markets. A fixed exchange rate is not freely determined by market forces.,palgrave,0,52.19,10.7,0,12.36,12.4,10.4,12,12.86
FIXED-FIXED,"A CURRENCY SWAP where each LEG of the swap car- ries a FIXED RATE. See also FIXED-FLOATING, FLOATING-FLOATING.",palgrave,0,79.26,4.4,0,8.96,7.4,8.47,5,5.82
FIXED-FLOATING,"A CURRENCY SWAP or INTEREST RATE SWAP where one LEG has a FIXED RATE and the second leg a FLOATING RATE. See also FIXED-FIXED, FLOATING-FLOATING.",palgrave,0,75.71,5.8,0,8.74,7.6,7.41,6.75,8.2
FIXED INCOME,"The general class of marketable DEBT, or any SECURITY that pays an implicit or explicit INTEREST RATE RETURN to INVESTORS on a DISCOUNT or COUPON-bearing basis, including BILLS, NOTES, and BONDS. Also known as FIXED INTEREST.",palgrave,0,53.21,10.3,0,11.89,12.4,11.99,13,12.76
FIXED INTEREST,See FIXED INCOME.RATE MORTGAGE.,palgrave,0,33.58,9.6,0,14.5,13.5,11.73,2,1.6
FIXED PREMIUM,PREMIUM payable by an INSURED for an INSURANCE CONTRACT that remains constant during the payment period. See alsoFLEXIBLE PREMIUM.,palgrave,0,36.45,10.5,0,14.53,11.1,11.59,6.25,12.22
FIXED-PRICE REOFFER,An agreement among SYNDICATE members not to resell a NEW ISSUE of NOTES or BONDS at a price that is lower than the initial offer until issuance is complete and the syndicate has been broken.,palgrave,0,52.87,14.6,0,9.01,17.1,10.34,19.5,15.14
FIXED-PRICE TENDER,"A form of TENDER where a fixed price is set for an ASSET or SECURITY, allowing buyers and sellers to BID or OFFER any quantity they like.",palgrave,0,60.99,11.5,0,6.45,11.4,9.65,16.5,15.24
FIXED RATE,"An INTEREST RATE on a financial contract, ASSET, or LIABILITY that remains constant during the life of the contract. Also known as FIXED INTEREST RATE. See also FLOATING RATE.",palgrave,0,53.17,8.3,9.7,9.66,7.3,9.02,5.166666667,8.02
FIXED-RATE BOND,"A DEBT obligation, such as a domestic BOND, EUROBOND, or GLOBAL BOND, which pays a fixed COUPON on a monthly, quarterly, semiannual, or annual basis. Fixed-rate bonds, which carry MATURITIES ranging from 1 to 30 years, can be issued directly or from MEDIUM-TERM NOTE or EURO MEDIUM-TERM NOTE programs, and may be sold as publicly placed REGISTERED SECURITIES, BEARER SECURITIES, or PRIVATE PLACEMENTS. See also FLOATING RATE NOTE.",palgrave,0,48.43,12.1,13.6,12.42,15.1,12.43,14.66666667,14.37
FIXED STRIKE LADDER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to lock in any accumulated gains prior toexpiry as the price of the UNDERLYING exceeds prespecified market levels (or “rungs”); gains are not lost if the market subsequently retraces. This version of the option compares the terminal price and ladder rungs against a predefined STRIKE PRICE and allocates a gain to the larger of the two. See also CLIQUETOPTION, FLOATING STRIKE LADDER OPTION, LADDER OPTION, SHOUT OPTION.MINIMUM.",palgrave,0,37.64,14.2,14.1,13.87,16.9,10.14,16.16666667,15.33
FIXED STRIKE SHOUT OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to lock in any accumulated gains when a “shout” is declared (i.e., the buyer formally declares its intention to lock in); gains are not lost if the market subsequently retraces. This version of the option com- pares the terminal price and shout level against a predefined STRIKE PRICE and allocates a gain to the larger of the two. See also CLIQUET OPTION, FLOATING STRIKE SHOUT OPTION, LADDER OPTION, SHOUT OPTION.",palgrave,0,53.55,12.3,12.5,11.26,15.4,9.58,15.66666667,13.99
FIXED TRIGGER,"A TRIGGER in an INSURANCE CONTRACT that indicates whether or not an event has occurred; a fixed trigger does not typically impact the payoff value of the contract, it simply indicates whether a SETTLEMENT will occur.",palgrave,0,34.94,17.3,0,11.96,20.3,11.12,23,17.73
FIXING,"The process of setting or resetting a specific INTEREST RATE on a LOAN or DERIVATIVE. Fixing is done in relation to the specific mechanics of a transaction, and is defined by market, rate, time, and other particulars.",palgrave,0,44.24,11.7,0,10.15,10.9,9.25,13.75,16.05
FLAG,"A TECHNICAL ANALYSIS pattern where a SECURITY or INDEX price fluctuates in a narrow, and relatively stable, range (the body of the flag) pre- ceded and/or followed by large upward or downward moves (the flagpole).See also PENNANT.",palgrave,0,25.46,18.9,0,12.14,21.8,11.87,24.5,20.21
FLASH,See  PRICE.,palgrave,0,77.91,2.9,0,-7.41,0.8,0.1,0,0.8
FLASH PRICE,"The current price of a SECURITY; during very heavy volume sessions on an EXCHANGE, quote tickers become delayed with “stale” price information, so flash prices periodically appear to signal the current value. Also known as FLASH.",palgrave,0,44.75,11.5,0,12.87,13,9.79,10.5,10.53
FLAT BOND,"A BOND that is bought or sold without ACCRUED INTEREST, either because the SETTLEMENT date is equal to the payment date, no COUPON is due, or the ISSUER is unable to pay a current coupon (e.g., the SECURITY is an INCOME BOND).",palgrave,0,45.77,17.3,0,7.91,20.3,9.48,24,18.7
FLAT TAX,See PROPORTIONAL TAX.,palgrave,0,34.59,9.2,0,9.23,9.9,9.05,1.5,14.53
FLAT YIELD,"The current YIELD of a CONVERTIBLE BOND, typically com- puted via:where C is the COUPON of the issue (in percentage terms) and PCB is the cur- rent price of the convertible bond. Also known as RUNNING YIELD. See alsoEQUIVALENT BREAKEVEN, SIMPLE BREAKEVEN, YIELD ADVANTAGE.",palgrave,0,65.01,7.8,11.2,10.84,10.4,10.83,8.333333333,10.43
FLAT YIELD CURVE,"A TERM STRUCTURE where short-term INTEREST RATES are equal to long-term interest rates. See also KINKED YIELD CURVE, NEGATIVE YIELD CURVE, POSITIVE YIELD CURVE, YIELD CURVE.",palgrave,0,75.2,6,0,13.27,11.9,8.53,7.5,9.82
FLATTENING,"(1) The act of neutralizing a LONG POSITION or a SHORT POSITION, either by selling or covering, or by establishing an equal and oppos- ite HEDGE. A position that has been flattened is no longer exposed to market movements. (2) A reshaping of the YIELD CURVE so that short-term and long- term INTEREST RATES appear approximately equal.",palgrave,0,51.01,13.2,0,10.1,15.8,10.31,18.75,16.31
FLEX OPTION,See FLEXIBLE EXCHANGE OPTION.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,2,11.6
FLEXIBLE DRAWDOWN,"A DRAWDOWN under a REVOLVING CREDIT FACILITY or other financing arrangement that occurs in stages, often to cor- respond with specific CASH FLOW or INVESTMENT requirements of theBORROWER.",palgrave,0,17.68,17.8,0,15.55,19.5,12.92,22,22.63
FLEXIBLE PREMIUM,PREMIUM payable by an INSURED for an INSURANCE CONTRACT that may increase or decrease during the payment period. See alsoFIXED PREMIUM.,palgrave,0,52.36,8.6,0,12.44,9.6,10.92,6.25,9.91
FLIGHT TO QUALITY,"A market action or event where INVESTORS liquidate risky or speculative SECURITIES holdings and deposit proceeds with BANKS or purchase GOVERNMENT BONDS or other “safe haven” ASSETS. Flight to quality may occur when financial markets start becoming volatile and ILLIQUID, economic conditions deteriorate, and/or systemic threats grow. See also CAPITAL FLIGHT.",palgrave,0,37.3,12.3,14.1,16.88,15.6,12.22,12.16666667,13.07
FLIP IN PILL,"A POISON PILL that allows existing SHAREHOLDERS of a company that is the subject of a TAKEOVER to buy new SHARES at a DISCOUNT; the pill increases DILUTION, and is thus intended to dissuade a potential acquirer from bidding for the company. See also FLIP OVER PILL.",palgrave,0,56.08,11.3,0,9.52,12.3,9.51,16.25,15.36
FLIP OVER PILL,A POISON PILL that allows existing SHAREHOLDERS of a company that is the subject of a TAKEOVER to buy the acquiring company’s SHARES at a sharp DISCOUNT if the transaction is completed; the pill is intended to dissuade an acquirer from bidding for the company. See also FLIP IN PILL.,palgrave,0,54.56,11.9,0,9.81,13.1,9.3,17.5,16.4
FLIPPER,"An INVESTOR receiving an allocation in an INITIAL PUBLIC OFFERING, ADD-ON, or NEW ISSUE that sells the SECURITIES sev- eral hours or days after issuance to lock in a short-term capital gain. Also known as STAG.",palgrave,0,53.21,10.3,0,9.51,10.5,10.67,11.5,11.64
FLOAT,"(1) The value of all cash balances that result from delays in SETTLEMENT and processing of CHECKS, DRAFTS, and other payments; col- lection float represents lost INTEREST to DEPOSITORS while payment float represents a gain to payers. (2) Funds established by an INSURER to pay for incurred losses under INSURANCE contracts. (3) The act of issuing new SECUR- ITIES in the PRIMARY MARKET.",palgrave,0,7.53,27.9,0,12.14,34.3,13.53,42.5,30.91
FLOATER,"(1) In INSURANCE, an ENDORSEMENT that allows cover age of moveable property to be transferred with the property between locations. (2) See FLOATING RATE NOTE.",palgrave,0,46.1,13,0,12.48,16.3,11.19,17.5,16.4
FLOATING-FLOATING,"A CURRENCY SWAP or INTEREST RATE SWAP where each LEG references a different FLOATING RATE, i.e., a BASIS SWAP. See also FIXED-FIXED, FIXED-FLOATING.",palgrave,0,59.8,7.8,0,11.06,10.1,9.7,7.25,9.82
FLOATING LIEN,See FLOATING CHARGE.,palgrave,0,93.81,0.9,0,7.32,8.3,9.05,0.5,1.2
FLOATING POLICY,"(1) An INSURANCE POLICY that relates to movable personal property. (2) An insurance policy that is used to cover merchandise that is continuously changing, such as in maritime shipments of cargoes, orpersonal property which is substituted. Although the specific items being cov- ered change over time, the policy remains in force until it is cancelled. Also known as FLOATING INSURANCE POLICY.",palgrave,0,33.95,13.6,15.9,13.23,14.5,11.11,15.16666667,14.02
FLOATING RATE,"An INTEREST RATE on a financial CONTRACT, ASSET, or LIABILITY that changes on a periodic basis, based on the specific rate bench- mark that serves as a reference. Also known as FLOATING INTEREST RATE. See also FIXED RATE.",palgrave,0,58.58,8.2,11.9,8.86,7.7,10.08,7.666666667,11.4
FLOATING RATE LOAN,"A LOAN where the INTEREST paid by the BOR- ROWER is based on a FLOATING RATE BENCHMARK, such as LIBOR orEURIBOR.",palgrave,0,75.54,7.9,0,7.31,9.7,10.69,11.5,10.3
FLOATING RATE SECURITY,"Any SECURITY with a COUPON that adjusts on a periodic basis with reference to a FLOATING RATE BENCHMARK. Common floating rate securities include FLOATING RATE CERTIFICATES OF DEPOSIT, FLOATING RATE NOTES, and VARIABLE RATE NOTES. Also known as VARIABLE RATE SECURITY.that creates the greatest economic profit. This version of the option carries no preset STRIKE PRICE, it simply compares the terminal price against the lowest buying price (for CALL OPTIONS) or highest selling price (for PUT OPTIONS). See also LOOKBACK OPTION.The payoff to the purchaser of a cap on each settlement date is given as:N∗ ( f − rref ) ∗ (n / d )where N is the notional, rref is the value of the reference rate at the settlement date, f is the floor strike, n is the number of days in the settlement period, d is the number days in the year.The floor provides no payoff to the purchaser if the reference rate is higher than the floor strike for any individual settlement period. (1) See also CAP,CAPTION, FLOORTION.",palgrave,0,37.37,16.4,15.1,10.75,18.5,9.72,12.2,16.06
FLOOR BROKER,A BROKER that fulfills the BROKERAGE role on the FLOOR of an EXCHANGE. See also FLOOR TRADER.,palgrave,0,79.77,4.2,0,6.23,4.2,8.7,3.75,5.75
FLOOR TRADER,"A TRADER operating on the FLOOR of an EXCHANGE, EXECUTING relevant ORDERS for clients or for proprietary purposes. See alsoFLOOR BROKER.",palgrave,0,43.9,9.7,0,12.44,9.8,11.68,6.75,13.72
FLOORED FLOATING RATE NOTE,A FLOATING RATE NOTE (FRN) that features a COUPON that is floored at a lower STRIKE level. The INVESTOR therefore faces a minimum return on invested capital once rates fall below the strike. See also CAPPED FLOATING RATE NOTE.,palgrave,0,75.2,6,8.8,9.03,7.8,9.95,6.5,7.25
FLOORLET,One of a series of INTEREST RATE FLOORS comprising aFLOOR.,palgrave,0,69.79,6,0,9.08,6.6,12.03,6,12
FLOORTION,"An OVER-THE-COUNTER OPTION on a FLOOR, granting the buyer the right to purchase a floor at a predetermined STRIKE PRICE. See alsoCAP, CAPTION.",palgrave,0,68.26,6.6,0,10.3,8.9,9.7,6.25,8.08
FLOTATION,The act of UNDERWRITING a NEW ISSUE of SECURITIES in the PRIMARY MARKET.,palgrave,0,41.36,10.7,0,8.16,6.8,9.14,8.5,14.43
FLOTATION COST,"The EXPENSE a company bears in issuing new SECURITIES, typically computed as the difference between the price received by the company on an issue and the amount charged to INVESTORS (the UNDERWRITING SPREAD) plus out of pocket expenses. See also ALL-IN.",palgrave,0,42.21,12.5,0,12.01,13.3,9.66,14.75,14.05
FLOW,The total of customer ORDERS passing through a BROKER orDEALER.,palgrave,0,52.87,8.4,0,11.98,9,12.03,5,8
FNMA,See FEDERAL NATIONAL MORTGAGE ASSOCIATION.,palgrave,0,-35.13,19.4,0,21.2,16.9,16.52,4.5,26
FOB,See FREE ON BOARD.,palgrave,0,118.18,-2.3,0,-2.91,-1.9,0.2,1,1.6
FOF,See FUND OF FUNDS.,palgrave,0,118.18,-2.3,0,-2.91,-1.9,11.73,1,1.6
FOLLOWING THE FORTUNES,A clause in a REINSURANCE CONTRACT indicating that the REINSURER will be subject to the same finan- cial fate as the CEDING INSURER. The clause is designed to align the interests of the two parties.,palgrave,0,62.17,8.9,0,9.1,9.4,10.82,11.25,12.71
FOMC,See FEDERAL OPEN MARKETS COMMITTEE.,palgrave,0,32.56,10,0,13.08,10.3,13.36,3.5,18
FOOTNOTES,"Additional, often detailed, explanation regarding the FINANCIAL STATEMENTS presented by a company. The explanatory mater- ial may related to the BALANCE SHEET, INCOME STATEMENT, and/or CASH FLOW STATEMENT, and may also include information on the operating envir- onment, litigation, and other RISK FACTORS.",palgrave,0,15.81,16.4,0,16.71,18.2,12.41,16.25,17.9
FOOTSIE,See FINANCIAL TIMES STOCK EXCHANGE (FTSE) 100.,palgrave,0,81.29,3.7,0,10.74,9,13.01,3.5,8.51
FORBEARANCE,"(1) A decision by a BANK not to exercise its rights against a BORROWER in technical DEFAULT, in exchange for the borrower’s promise to begin making regular payments of PRINCIPAL and/or INTEREST. (2) SeeREGULATORY FORBEARANCE.",palgrave,0,19.03,19.3,0,13.65,21.8,12.14,27.5,25.43
FORCE MAJEURE,"Literally “irresistible force”; in the corporate sector it is a financial event of such gravity (e.g., systemic dislocation, severe CREDIT RATING downgrade, BANKRUPTCY) that a relationship/transaction (such as a LOAN, NEW ISSUE, or CORPORATE FINANCE deal) may be cancelled or accelerated. See also MATERIAL ADVERSE CHANGE CLAUSE, VIS MAJOR.",palgrave,0,21.23,16.4,0,15.67,18.9,13.55,17.75,18.78
FORCED CONVERSION,"An act taken by an ISSUER to require the conversion of a CONVERTIBLE BOND into SHARES, taken when the structure of the SECURITY allows for such a step, e.g., as in a MANDATORY CONVERTIBLE BOND.",palgrave,0,44.41,15.8,0,8.66,17.5,10.79,22.5,18.57
FORECLOSURE,"A legal process where CREDITORS take possession of COLLATERAL securing a LOAN to a BORROWER in technical DEFAULT, gen- erally through the filing of a foreclosure suit. In some systems the ability to seize ASSETS and foreclose may be limited or delayed by AUTOMATIC STAY provisions.",palgrave,0,39.67,13.4,0,12.25,14.2,12.33,17.5,19.63
FOREIGN BILL,"In the United Kingdom, a BILL OF EXCHANGE that is either drawn or payable outside the country.",palgrave,0,71.14,7.6,0,8.35,8.7,6.34,7.5,6.8
FOREIGN CORRUPT PRACTICES ACT,"In the United States, legislation designed to ban corruption and bribery in US companies operating in foreign jurisdictions.",palgrave,0,27.83,13.9,0,16.24,15.5,12.42,14,18.31
FOREIGN CURRENCY BOND,(1) A BOND issued in a CURRENCY other than the ISSUER’s home currency. (2) See DUAL CURRENCY BOND.,palgrave,0,53.21,10.3,0,6.61,8.8,10.67,12,9.42
FOREIGN DIRECT INVESTMENT,"A CAPITAL INVESTMENT by a company in one country in productive ASSETS located in another country, often through a controlled foreign affiliate. Also known as DIRECT INVESTMENT.",palgrave,0,32.39,12.1,0,13.68,11.5,8.4,10.75,11.33
FOREIGN EXCHANGE (FX),"A transaction that involves the exchange of two CURRENCIES. TRADING in foreign exchange is extremely active, with institu- tions regularly using SPOT and DERIVATIVE contracts to HEDGE, ARBITRAGE, or SPECULATE. See also  RATE.",palgrave,0,43.39,9.9,12.5,14.07,11.5,11.84,7.166666667,14.1
FOREIGN EXCHANGE (FX) BROKER,"A BROKER that deals exclusively with clients in the FOREIGN EXCHANGE MARKET, generally across a broad range of currencies. Foreign exchange brokers are permitted to disclose their PRINCIPALS in certain markets, but not in all markets. See also COMMODITY BROKER, INTER-DEALER BROKER.",palgrave,0,40.35,11.1,11.9,14.43,12.6,10.35,8.333333333,11.31
FOREIGN EXCHANGE (FX) DEALER,"A DEALER who specializes in TRADING FOREIGN EXCHANGE, acting as PRINCIPAL by taking positions and filling ORDERS through the commitment of RISK CAPITAL.",palgrave,0,31.21,14.6,0,15.32,16.7,12.33,16.5,16.16
FOREIGN EXCHANGE (FX) MARKET,"The general marketplace for buy- ing and selling of CURRENCIES. The FX market allows currency HEDGERS and SPECULATORS to establish prices and exchange both major and emer- ging market currencies. The market is global, operating 24 hours per day, and is conducted on an OVER-THE-COUNTER basis (though certain cur- rency DERIVATIVES are traded on EXCHANGES). See also BOND MARKET, COMMODITY MARKET, STOCK MARKET.",palgrave,0,46.98,10.6,13,13.11,12.4,11.19,10.875,12.03
FOREIGN EXCHANGE (FX) RATE,"The price or value of a country’s CURRENCY. Market forces may set a foreign exchange rate (i.e., a market exchange rate) or a country’s CENTRAL BANK or monetary authority may con- trol or influence the rate (i.e., a MANAGED FOREIGN EXCHANGE RATE, or a semifloating rate determined through PEGGING or CRAWLING PEGS). Fixedforeign exchange rates may or may not reflect the perceived market value of the currency; where significant discrepancies arise a black market, based purely on market SUPPLY and DEMAND forces, may develop. Also known as RATE OF EXCHANGE.",palgrave,0,48.64,12.1,12.6,12.02,14.4,9.66,14,13.44
FOREIGN EXCHANGE (FX) RESERVES,"ASSETS of a country, held with the CENTRAL BANK or monetary authority, which are used for currency man- agement and intervention. RESERVES generally comprise of GOLD and major RESERVE CURRENCIES, along with SPECIAL DRAWING RIGHTS held with the INTERNATIONAL MONETARY FUND.",palgrave,0,33.75,13.6,0,14.68,15.5,10.82,14.25,15.03
FOREIGN EXCHANGE (FX) RISK,The RISK of loss due to an adverse move in the direction of FOREIGN EXCHANGE RATES. Foreign exchange risk is a form of DIRECTIONAL RISK.CURRENCY SWAP.,palgrave,0,66.74,7.2,0,9.03,7.7,8.53,7,8.28
FORENSIC ACCOUNTING,A reconstruction of a company’s past financial transactions and records in order to fulfill a court-order or legal investigation.,palgrave,0,26.81,14.2,0,16.01,15.6,11.23,14.5,18.13
FORFAITING,A process where an exporter sells to a BANK or specialized financial institution a PORTFOLIO of discounted long-term ACCOUNTS RECEIVABLE or PROMISSORY NOTES (generally backed by GUARANTEES from the importer’s own BANK). See also FACTORING.,palgrave,0,45.25,11.3,0,15.54,14.9,12.17,13.75,18.43
FORM 3,"In the United States, a document filed by a company with the SECURITIES AND EXCHANGE COMMISSION that details the amount of SHARES and OPTIONS held by the company’s officers and its largest shareholders.",palgrave,0,37.98,16.2,0,12.83,19.3,10.54,23.5,20.47
FORM F1,"In the United States, a document filed by a company with the SECURITIES AND EXCHANGE COMMISSION indicating that a NEW ISSUE of SHARES is being sold to the public.",palgrave,0,42.04,14.6,0,9.7,14.8,8.89,19.5,17.12
FORTUITOUS EVENT,"An unforeseen, unexpected, or accidental occurrence; such an event is a general characteristic of an INSURABLE RISK and must be present in order for an INSURED to make a CLAIM under an INSURANCE CONTRACT.",palgrave,0,28.51,17.7,0,11.79,19.3,10.9,25,21.84
FORWARD,"A bilateral OVER-THE-COUNTER DERIVATIVE that permits the purchaser to buy, and the seller to sell, a reference ASSET at a predetermined future price and future date. Unlike a SWAP, a forward CONTRACT features no intervening cash FLOWS, simply a final cash exchange at the conclusion of the contract. Forwards are highly customizable; the two parties can negotiate terms regarding amount, SETTLEMENT, MATURITY, and UNDERLYING reference.Long forward payoff profileShort forward payoff profileSee also FORWARD DISCOUNT, FORWARD FORWARD, FORWARD PREMIUM, FORWARD PRICE, FORWARD RATE, FORWARD RATE AGREEMENT, NONDELIVERABLE FORWARD.",palgrave,0,16.66,18.1,17.1,18.05,22.4,11.25,20.5,18.5
FORWARD BALANCE SHEET,"A future depiction of a firm’s BALANCE SHEET and OFF-BALANCE SHEET commitments and contingencies. Construction of a forward balance sheet is an important element in managing RISK, LIQUIDITY, and CAPITAL as it provides an estimate of how a firm’s operations will change with the passage of time or the occurrence of contingent events.",palgrave,0,36.12,14.8,0,13.23,16.8,10.31,20.25,18.9
FORWARD BUNDLE,"A BUNDLE of EURODOLLAR FUTURES that does not begin with the FRONT MONTH contract, but with some future CON- TRACT date.",palgrave,0,75.54,7.9,0,9.23,11.3,9.19,11.5,10.3
FORWARD DELIVERY,"Arrangement for the future delivery of goods for cash, or vice-versa, and an essential feature of a FUTURES contract and a FORWARD contract. See also CASH DELIVERY.",palgrave,0,57.77,8.6,0,10.72,9.4,9.57,8.25,9.84
FORWARD DISCOUNT,A FORWARD PRICE (or rate) for future delivery of an ASSET that is lower than the SPOT PRICE (or rate) for immediate delivery. See also FORWARD PREMIUM.,palgrave,0,57.77,8.6,0,7.71,7.1,7.81,7.75,9.84
FORWARD FORWARD,"A FORWARD transaction that is contracted to start at a future date. See also  RATE, FORWARD RATE AGREEMENT.",palgrave,0,62.34,6.8,0,8.67,6.3,7.59,4.5,8.04
FORWARD FORWARD RATE,The FORWARD RATE used as a reference in a FORWARD RATE AGREEMENT or an INTEREST RATE FORWARD CONTRACT; it can be considered the interest rate for a certain period of time applicable to a certain future starting point.,palgrave,0,32.91,18.1,0,10.46,19.9,9.26,25,20.46
FORWARD MARGIN,See FORWARD POINTS.,palgrave,0,93.81,0.9,0,5.35,6.8,9.05,0.5,1.2
FORWARD MARKET,"The general marketplace for ASSETS or financial CONTRACTS that are settled and delivered at a future time. See also FORWARD, SPOT MARKET.",palgrave,0,51.85,8.8,0,11.35,8.9,9.21,6.5,9.85
FORWARD POINTS,"The differential between a SPOT RATE and FORWARD RATE in the FOREIGN EXCHANGE markets. Forward points arise as a result of INTEREST RATE DIFFERENTIALS, market expectations related to CURRENCIES and INTEREST RATES, and/or currency SUPPLY and DEMAND. While forward points can be computed as the difference between spot and forward currency rates, they can also be estimated via:where FXs is the spot currency rate, rdiff is the interest rate differential between the two currencies, t is the time to maturity (days), and RB is the rate basis (e.g., 360 or 365 days). Also known as FORWARD MARGIN.",palgrave,0,46.81,12.8,14.9,11.67,14.9,9.56,16.375,13.84
FORWARD PREMIUM,A FORWARD PRICE (or rate) for future delivery of an ASSET that is higher than the SPOT PRICE (or rate) for immediate delivery. See also FORWARD DISCOUNT.,palgrave,0,66.23,7.4,0,8.11,7.5,7.81,7.25,8.36
FORWARD PRICE,"The price quoted for future delivery of an ASSET under a FORWARD or FUTURE, comprised of the SPOT PRICE and a positive or nega- tive COST OF CARRY; a quoted price may reflect a FORWARD PREMIUM or FORWARD DISCOUNT. The equilibrium, no-ARBITRAGE forward prices for various assets are given as follows:COMMON STOCK, no DIVIDENDS:F = S ertwhere S is the stock price, e is the exponential constant, r is a prevailing DISCOUNT RATE, and t is the time to MATURITY.Stock, continuous dividends:where δ is the DIVIDEND YIELD and all other terms are as defined above.Currency:F= Sp e (r1 – r2)twhere Sp is the spot price, r1 is the discount rate for currency 1, r2 is the dis- count rate for currency 2, and all other terms are as defined above.Commodity with LEASE market:where Μ is the lease payment rate and all other terms are as defined above.Commodity with carry market:where λ is the cost of storage and INSURANCE, and all other terms are as defined above.Commodity with carry market and CONVENIENCE YIELD:where cy is the convenience yield, and all other terms are as defined above. See also FORWARD RATE.",palgrave,0,16.29,26.6,18.9,10.69,32.8,11.2,32.5,28.48
FORWARD PRICE/EARNINGS RATIO,A PRICE/EARNINGS RATIO that is computed based on earnings forecasts of a company’s results rather than its historical results. The earnings estimates may be based on consensus forecasts from EQUITY ANALYSTS. See also TRAILING PRICE/EARNINGS RATIO.,palgrave,0,42.38,10.3,11.9,15.18,12.3,9.93,7.333333333,12.58
FORWARD RATE,"(1) The rate quoted for future delivery of an ASSET, used in the calculation of FORWARDS and FUTURES. A quoted forward rate mayreflect a FORWARD PREMIUM or FORWARD DISCOUNT. (2) See IMPLIED FORWARD RATE. (1) See also FORWARD PRICE.⎛ (r − r ) ∗ N ∗ (n / d )⎞⎝where rref is the reference fixing rate, rFRA is the FRA contract rate, N is the notional value of the contracts, n is the number of days in the contract period, d is the day count basis (360 or 365) Also known as INTEREST RATE FORWARD. See also FORWARD FORWARD RATE",palgrave,0,55.2,13.7,11.9,7.09,15.3,10.09,19,15.94
FORWARD RATE MODEL,A form of mathematical model used in the pricing of INTEREST RATE DERIVATIVES which uses and evolves randomly the entire FORWARD curve of the short rate. See also SHORT RATE MODEL.,palgrave,0,55.74,9.3,0,10.09,9.1,8.99,8.75,11.36
FORWARD START OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that is contracted on TRADE date t to commence on forward date t + 1, with the forward start date, STRIKE PRICE, and final MATURITY parameters established on trade date. Once the forward date is reached a conventional EUROPEAN OPTION comes into existence.",palgrave,0,48.13,12.3,0,12.77,15,10.27,15.75,15.29
FORWARD SWAP,"An OVER-THE-COUNTER SWAP that is contracted on TRADE date t and commences on forward date t + 1, with the INTEREST RATE and final MATURITY parameters established on trade date. Once the forward date is reached a conventional fixed/floating INTEREST RATE SWAP comes into existence.",palgrave,0,40.69,13.1,0,12.88,14.8,10.47,16.25,15.16
FOUNDATION METHODOLOGY,"A credit-based CAPITAL ALLOCATION process promulgated by the BANK FOR INTERNATIONAL SETTLEMENTS (BIS) under the INTERNAL RATINGS-BASED (IRB) APPROACH. BANKS use internal models to determine a COUNTERPARTY’S DEFAULT RISK, but use BIS- supplied RISK factors to estimate RISK EQUIVALENT EXPOSURE and LOSS- GIVEN DEFAULT in order to obtain estimates of EXPECTED CREDIT LOSS and UNEXPECTED CREDIT LOSS. CAPITAL is then allocated to cover the resulting exposure. See also ADVANCED METHODOLOGY.",palgrave,0,19.87,14.8,16.5,16.01,15.4,11.5,14.25,16.14
FRA,See FORWARD RATE AGREEMENT.,palgrave,0,75.88,3.7,0,10.15,8.8,7.78,1,1.6
FRACTIONAL BANKING,See FRACTIONAL RESERVE BANKING.,palgrave,0,33.58,9.6,0,15.95,13.5,15.68,2,11.6
FRANKFURT STOCK EXCHANGE,"The primary STOCK EXCHANGE of Germany, founded in 1820 and now owned by DEUTSCHE BORSE, accounting for the majority of EQUITY TRADING in the country. The exchange sets prices on an AUCTION basis through BROKERS and, through separate divisions, deals in LARGE CAP, MID-CAP, and SMALL CAP STOCKS and GOVERNMENT BONDS.",palgrave,0,54.05,12.1,0,12.13,15.8,11.4,16.25,14.12
FRAUD,"An act of intentional deception or dishonesty perpetrated by one or more individuals, generally for financial gain. See also EMBEZZLEMENT, ULENT MISREPRESENTATION.",palgrave,0,1.09,15.8,0,17.9,14.4,11.36,9,20.76
FRAUDULENT CONVEYANCE,"The act of transferring ASSETS from one party (often an insolvent DEBTOR) to another party, with the express intent of keeping such assets away from CREDITORS or a BANKRUPTCY TRUSTEE or RECEIVER. Also known as FRAUDULENT TRANSFER. See also UNFAIR PREFERENCE.",palgrave,0,49.11,9.8,12.5,12.11,10.5,9.71,8.5,12.31
FRAUDULENT MISREPRESENTATION,A false CLAIM made by one party in order to gain economic advantage from a second party. Proof of misrepresenta- tion can result in termination of CONTRACTS. See also FRAUD.,palgrave,0,61.33,7.2,9.7,8.33,6.2,9.4,5.333333333,9.33
FREDDIE MAC,See FEDERAL HOME LOAN MORTGAGE CORPORATION.,palgrave,0,31.55,10.4,0,14.95,11.4,11.83,4,15.73
FREE CAPITAL,"In the United Kingdom, FREE FLOAT.",palgrave,0,90.77,2.1,0,5.27,4.3,0.3,2,2.4
FREE CASH FLOW,"A CASH FLOW measure that is computed as OPERATING CASH FLOW less capital expenditures, or as NET INCOME plus DEPRECIATION, less changes in WORKING CAPITAL, less changes in capital expenditures.The resulting figure is generally considered to be an accurate reflection of a company’s true cash position. See also FINANCING CASH FLOW, FREE CASH FLOW TO EQUITY, FREE CASH FLOW TO FIRM, INVESTING CASH FLOW.",palgrave,0,22.08,18.1,0,13.24,19.5,9.66,25,21.55
FREE CASH FLOW TO EQUITY (FCFE),"Cash available to SHAREHOLDERS after all EXPENSES, INVESTMENTS, and INTEREST payments (after TAX) to DEBT holders have been made. It can be computed as OPERATING CASH FLOW less capital expenditures less debt payments. See also DISCOUNTED CASH FLOW VALUATION MODEL, FREE CASH FLOW TO FIRM.",palgrave,0,47.79,10.3,13.6,12.52,11.6,9.64,10.83333333,14
FREE CASH FLOW TO FIRM (FCFF),"Cash available to BOND holders and SHAREHOLDERS after all EXPENSES and INVESTMENTS have been made. It can be computed as EARNINGS BEFORE INTEREST AND TAX times (1 – tax rate) plus DEPRECIATION less capital expenditures less changes in WORKING CAPITAL less changes in other ASSETS. See also DISCOUNTED CASH FLOW VALUATION MODEL, FREE CASH FLOW TO EQUITY.",palgrave,0,43.73,11.9,14.6,12.36,12.6,10.4,13.5,14.62
FREE FLOAT,SHARES of a company that are held by the public at large rather than by controlling or major SHAREHOLDERS. See also FREE CAPITAL.,palgrave,0,68.26,6.6,0,8.04,6.2,6.27,6.75,8.08
FREE MARKET ECONOMY,"An economic system where the means of pro- duction and distribution are primarily owned by the private sector, and where government involvement is very limited. The economy encourages competi- tion and resource allocation and pricing is driven primarily by market forces of SUPPLY and DEMAND. Also known as MARKET ECONOMY.",palgrave,0,37.6,12.2,14.1,13.4,12.6,11.1,12,13.08
FREE ON BOARD (FOB),"The declared value of EXPORT goods, including the cost of production and transportation to the port of shipment. FOB does not include the cost of transportation from the port to the destination or the cost of INSURANCE, both of which are the responsibility of the importer. See alsoCOST, INSURANCE, FREIGHT (CIF).",palgrave,0,62.68,8.7,13,11.31,11.4,9.12,11.5,12.29
FREE RESERVES,"Any cash RESERVES held by a regulated FINANCIAL INSTI- TUTION, such as a BANK, BUILDING SOCIETY, or SAVINGS AND LOAN, that exceed those required by the relevant REGULATOR.",palgrave,0,34.6,15.4,0,11.61,16.8,10.66,19,18.34
FREE RIDER,An UNDERWRITER or SYNDICATE member that retains a portion of a PRIMARY MARKET offering in order to sell at what it hopes will be a higher SECONDARY MARKET price; the practice is illegal in many markets.,palgrave,0,34.94,17.3,0,9.88,18.4,10.69,23,19.96
FREE TRADE,"A process of exchanging goods, services, and resources without undue constraints, such as TARIFFS, surcharges, or QUOTAS.",palgrave,0,54.22,9.9,0,16.18,16.2,12.84,8.5,9.15
FREEZE-OUT,"The process of persuading MINORITY INTERESTS of a TARGET company to sell their SHARES after a TENDER OFFER has been made. The intent behind the freeze-out is for the acquiring company to accumulate all shares so that the transfer is complete. See also DRAG ALONG RIGHTS, TAG ALONG RIGHTS.",palgrave,0,63.39,8.5,11.9,10.26,9.8,8.63,10.5,10.6
FRESH START ACCOUNTING,"A revaluation of ASSETS and LIABILITIES that takes place when REORGANIZATION of a bankrupt company results ina general restatement of liabilities. The accounting is applied in the United States to any company operating under CHAPTER 11 that expects to complete a reorganization, as well as any company that is emerging from Chapter 11.",palgrave,0,19.2,17.2,0,13.64,17,10.02,19.25,15.13
FRICTION COST,See TRANSACTION COST.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,1.5,14.53
FRIENDLY SOCIETY,"In the United Kingdom, a MUTUAL ORGANIZATION for savings and life INSURANCE that is owned and operated by its members; the organizational structure of the friendly society conveys certain TAX advan- tages to the mutual owners.",palgrave,0,18.02,19.7,0,13.41,21.6,11.12,25,21.07
FRIENDLY TAKEOVER,"An ACQUISITION that is agreed on amicable terms between the acquiring company and the TARGET. A friendly takeover may arise as a result of negotiations between the two companies, or it may be a WHITE KNIGHT response to a HOSTILE TAKEOVER offer from another party.",palgrave,0,48.64,12.1,0,10.86,12.8,9.31,14.75,13.44
FRN,See FLOATING RATE NOTE.,palgrave,0,92.8,1.3,0,4.35,4.1,7.78,1,1.6
FRONT BOOK,A trading BOOK managed by a DEALER in which cus- tomer ORDERS are handled. The front book is intended to feature regular turn- over as the dealer places BIDS and OFFERS against customer orders. See alsoBACK BOOK.,palgrave,0,75.91,5.7,7.8,8.63,7.2,10.22,5.833333333,7.08
FRONT DOOR,A process where the BANK OF ENGLAND attempts to influence UK MONEY SUPPLY by LENDING directly to DISCOUNT HOUSES and other financial institutions. See also BACK DOOR.,palgrave,0,49.31,9.7,0,11.77,9.8,11.32,7.75,11.33
FRONT LOAD,A mechanism in which COMMISSIONS on a MUTUAL FUND or INVESTMENT TRUST are charged to INVESTORS at the time of purchase. See also BACK LOAD.,palgrave,0,75.71,5.8,0,8.05,6.5,9.31,7.25,11.4
FRONT MONTH,See NEARBY CONTRACT.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,0.5,1.2
FRONT OFFICE,"The units and functions within a BANK or FINAN- CIAL INSTITUTION that are responsible for generating REVENUES through LENDING, TRADING, CORPORATE FINANCE, ASSET MANAGEMENT, and so forth. See also BACK OFFICE.",palgrave,0,47.28,10.5,0,14.44,13.4,12.05,10.25,12.65
FRONT RUNNING,"An illegal practice where a DEALER, MARKET MAKER, or SPECIALIST executes a transaction in advance of a customer trade in order to capture favorable price movements.",palgrave,0,36.63,14.6,0,13.35,16.8,11.61,18,18.09
FRONTING COMPANY,See FRONTING INSURER.,palgrave,0,59.97,5.6,0,9.23,9.9,14.31,1.5,14.53
FRONTING INSURER,"An INSURER that is interposed between a CEDING INSURER or CAPTIVE, and a REINSURER. Use of a fronting insurer allows the insurer or captive to access the professional reinsurance market directly and obtain coverage at more favorable PREMIUM rates. Also known as FRONTING COMPANY.",palgrave,0,39.63,11.4,15,12.69,11.2,10.11,11.66666667,14.06
FROTHY,A market condition reflecting excessive speculative buying or OVERBOUGHT conditions. Also known as TOPPY.,palgrave,0,22.07,11.9,0,17.35,13,13.01,5,17.09
FSA,see FINANCIAL SERVICES AUTHORITY.,palgrave,0,-8.73,15.5,0,18.85,15.9,15.68,3,21.6
FTC,See FEDERAL TRADE COMMISSION.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,3,21.6
FULL RECOURSE LOAN,"A LOAN with repayment that may come from the proceeds of the project/ASSET being financed or the sale of specific COLLATERAL, or from the resources of the borrower if project/collateral CASH FLOWS prove insufficient. See also RECOURSE, NONRECOURSE, NONRECOURSE LOAN, PARTIAL RECOURSE LOAN.",palgrave,0,41.19,12.9,0,14.97,16.4,9.84,15.25,14.18
FULLY DILUTED BASIS,"A method of computing a company’s EARNINGS PER SHARE by taking account of any potential new SHARES of COMMON STOCK that may be created through a planned NEW ISSUE of EQUITY, exercise of outstanding stock OPTIONS, or conversion of any existing CONVERTIBLE BONDS. See also DILUTION.",palgrave,0,48.13,12.3,0,12.13,14.1,11.64,17,18.77
FULLY PAID SHARES,"The SHARES of a company that have been paid up to the full PAR VALUE at the time of initial issuance, and on which INVESTORS are not subject to a further call for CAPITAL. See also PARTLY PAID SHARES.",palgrave,0,77.06,7.4,0,6.38,7.9,6.63,10.75,7.8
FUND,"A vehicle that is established to gather and invest CAPITAL provided by INVESTORS. A fund can take various structural forms, such as a PENSION , MUTUAL , HEDGE , CLOSED-END , OPEN-END , or UNIT INVESTMENT TRUST, and can be established to invest in spe- cific ASSET classes.",palgrave,0,41.19,12.9,0,11.43,14,11.68,16,14.18
FUND FAMILY,"A group of diverse FUNDS offered by a single fund manage- ment company. INVESTORS allocating CAPITAL within a fund family can gen- erally switch between available funds without incurring incremental charges. The largest fund families are able to offer investors a broad range of investment choices, which can include global STOCK and BOND funds, sector funds, and emerging market funds.",palgrave,0,51.18,11.1,13,13.58,14.2,11.21,13,12
FUND MANAGER,See PORTFOLIO MANAGER.,palgrave,0,9.21,12.7,0,11.15,11.5,9.05,2.5,14.53
FUND OF FUNDS (FOF),"A FUND that invests in other MUTUAL FUNDS or HEDGE FUNDS. In exchange for vetting individual funds and constructing, and tactically adjusting, PORTFOLIOS to achieve specific RETURNS, fund of fund managers charge their clients an annual fee and a performance fee. See also 1 AND 10.",palgrave,0,55.95,9.3,13,11.13,10.4,11.6,10.66666667,13.95
FUNDAMENTAL ANALYSIS,"An INVESTMENT ANALYSIS approach that focuses on a company’s financial and ACCOUNTING value and its abil- ity to generate core operating EARNINGS in order to increase the STOCKprice. Fundamental analysts advocate the purchase of stocks selling below LIQUIDATION VALUE, which may be evidenced by a low PRICE/EARNINGS RATIO and CURRENT ASSETS that exceed CURRENT LIABILITIES and long- term DEBT. See also TECHNICAL ANALYSIS.Additional reference: Graham and Dodd (1962).",palgrave,0,23.05,15.7,16.7,16.13,17.6,12.89,17,19.08
FUNDAMENTAL FACTOR MODEL,"A MULTIFACTOR RISK MODEL with inputs that include historical STOCK RETURNS and observable industry factors, such as PRICE/EARNINGS ratios, price/BOOK VALUE, economic growth, and so forth. The sensitivity of a stock price to each fundamental factor can be estimated through such a model, allowing the projection of EXPECTED RETURNS. See also MACROECONOMIC FACTOR MODEL, STATISTICAL FACTOR MODEL.",palgrave,0,26.81,14.2,15,16.01,16,10.95,13.83333333,16.72
FUNDED DEBT,"(1) Any DEBT obligation issued by a sovereign authority that need not be repaid, i.e., an instrument that exists in PERPETUITY, such as a CONSOL. (2) Any debt obligation of a company or sovereign authority that matures in more than one year.",palgrave,0,28.85,19.7,0,9.71,22,10.98,30,21.56
FUNDED PENSION PLAN,A PENSION PLAN where all future LIABILITIES are fully covered by existing fund resources. See also UN.,palgrave,0,54.39,7.8,0,9.3,6.7,11.49,4.25,8.11
FUNDING,The general process of raising DEBT to finance operations.,palgrave,0,45.42,9.2,0,12.5,9.3,12.86,5.5,8.04
FUNDING LIQUIDITY RISK,"The RISK of loss arising from an inability to roll over existing unsecured funding or obtain new unsecured funding without incurring a large cost. A subcategory of LIQUIDITY RISK. See alsoASSET LIQUIDITY RISK, ASSET-FUNDING LIQUIDITY RISK, ENDOGENOUS LIQUIDITY, EXOGENOUS LIQUIDITY.",palgrave,0,15.68,14.4,15.9,16.05,13.9,9.82,11.66666667,14.32
FUNGIBILITY,"The ability to exchange or substitute one ASSET with another. Fungibility is important in COLLATERAL management for OVER-THE- COUNTER DERIVATIVES and REPURCHASE AGREEMENTS, and in delivery decisions for EXCHANGE-TRADED DERIVATIVES.",palgrave,0,5.49,16.2,0,20,17.8,10.7,14,18
FUNGIBLE ISSUE,A SECURITY that can be exchanged for an identical or similar security of the same ISSUER.,palgrave,0,38.32,11.9,0,8.87,8.4,9.36,12,13.9
FURTHEST MONTH,"An EXCHANGE-TRADED DERIVATIVE CONTRACT with the longest MATURITY date featuring trading volume; contracts with even longer maturity dates that are inactive or dormant are not considered to be the furthest month contract. See also NEARBY CONTRACT, NEXT NEARBY CONTRACT.",palgrave,0,34.76,13.3,0,16.19,16.1,10.68,13.25,12.93
FUTURE VALUE,"A financial computation where the value of a current CASH FLOW or lump sum is projected into the future through use of an appropriate RETURN or YIELD. The general form of the equation is given as:where CF0 is the current cash flow, t is the time to MATURITY, and r is the DISCOUNT RATE or yield.The future value of a cash flow that is subject to CONTINUOUS COMPOUNDING is given as:where e is the exponential constant, N is the number of years over which the compounding occurs.The base computation for multiple cash flows occurring over time expands to:FV = ∑ CFt (1 + r )n −twhere n is the last period of the cash flows.The future value of a stream of cash flows, such as those characterizing an ANNUITY, can be computed through an extension of the same equation:(1⎣where CFP is the periodic future cash flow and other terms are as defined above. See also DISCOUNTED CASH FLOW, NET PRESENT VALUE, PRESENT VALUE.",palgrave,0,25.43,23.1,18.2,9.82,27.4,10.22,32,25.7
FUTURES CALL,"An EXCHANGE-TRADE OPTION CONTRACT granting the buyer the right, but not the obligation, to buy a FUTURES contract at a pre- specified STRIKE PRICE. See also FUTURES PUT.with CLEARING MEMBERS on behalf of clients. FCMs are the only entities, apart from CLEARINGHOUSES, that can hold customer funds. In the United States, FCMs must meet certain minimum financial requirements and must be members of the National Futures Association, a SELF-REGULATORY ORGANIZATION; they may be structured as independent organizations or divisions of larger financial institutions.",palgrave,0,33.44,13.8,14.9,15.14,16.1,10.38,14.625,15.55
FUTURES OPTION,"An EXCHANGE-TRADE OPTION CONTRACT granting the buyer the right, but not the obligation, to buy or sell a FUTURES contract at a prespecified STRIKE PRICE. See also FUTURES CALL, FUTURES PUT.",palgrave,0,64.2,8.2,0,11.08,10.5,8.48,8.25,8.78
FUTURES PUT,"An EXCHANGE-TRADED OPTION CONTRACT granting the buyer the right, but not the obligation, to sell a FUTURES contract at a pre- specified STRIKE PRICE. See also FUTURES CALL.",palgrave,0,65.73,7.6,0,10.9,10,9.97,7.5,8.46
FX,See FOREIGN EXCHANGE.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,0.5,1.2
G3,See GROUP OF 3.,palgrave,0,118.18,-2.3,0,-7.26,-5.4,7.78,1,1.6
G7,See GROUP OF 7.,palgrave,0,118.18,-2.3,0,-7.26,-5.4,7.78,1,1.6
G8,See GROUP OF 8.,palgrave,0,118.18,-2.3,0,-7.26,-5.4,7.78,1,1.6
G10,See GROUP OF 10.,palgrave,0,118.18,-2.3,0,-5.81,-4.2,7.78,1,1.6
GAAP,See GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.,palgrave,0,-35.13,19.4,0,24.68,19.7,16.52,5.5,34
GAMING,"The act of taking advantage of information gained through PINGING to position an ORDER to capitalize on of a known large BID or OFFER residing in a DARK POOL. While not illegal, dark pool operators attempt to guard their pools from pinging and gaming, often by establishing minimum order size and tracking TRADING patterns of participants.",palgrave,0,34.6,15.4,0,12.02,16.4,10.1,19,18.34
GAMING CONTRACT,An agreement to enter into a game of chance for money. In certain jurisdictions DERIVATIVES may be defined as gaming con- tracts. Also known as WAGERING CONTRACT.,palgrave,0,62.34,6.8,8.8,9.31,6.8,9.35,4.5,8.04
GAMMA,"The change in the value of an OPTION’s DELTA for a change in the value of the UNDERLYING market reference, all other variables held constant. Gamma, as a measure of the CONVEXITY of option prices, is often used to gauge sensitivity to large and sudden market moves. The gammas of the CALL OPTION and PUT OPTION under the BLACK-SCHOLES MODEL are identical and given by:11whereand S is the stock price, t is the time to MATURITY, σ is the STANDARD DEVIATION, and where the value of N′(d1) can be obtained from a standard table of PROBABILITY functions.The gammas of long and short puts and calls are shown as:See also GAMMA HEDGE, NEGATIVE GAMMA, GREEKS, RHO, THETA, VEGA.",palgrave,0,40.35,17.3,13.6,9.76,20.4,10.7,19.66666667,18.68
GAMMA HEDGE,"A HEDGE technique used to establish a GAMMA NEUTRAL position, and used primarily to manage the effects of NEGATIVE GAMMA, which can create large losses if markets move sharply and quickly before DELTA HEDGES can be rebalanced. Creating a hedge for a negative gamma position generally requires the purchase or use of a position with POSITIVE GAMMA (e.g., an instrument with positive CONVEXITY, such as a LONG POSITION in a CALL OPTION or PUT OPTION).",palgrave,0,24.95,19.1,0,11.56,20.9,11.18,26.25,20.33
GAMMA NEUTRAL,"A PORTFOLIO of OPTIONS that is neutral with respect toits GAMMA, meaning that it is HEDGED for large moves in the UNDERLYING. G See also DELTA NEUTRAL, GAMMA HEDGE, VEGA NEUTRAL, THETA NEUTRAL.",palgrave,0,63.19,8.5,0,9.68,9.8,11.63,8.25,9.02
GAO,See GOVERNMENT ACCOUNTABILITY OFFICE.,palgrave,0,-34.11,19,0,24.65,20.6,7.78,3,11.6
GAPPING,"The process of deliberately mismatching ASSETS and LIABILITIES in order to take advantage of an anticipated change in INTEREST RATES. Although gapping has the potential of generating greater RETURNS, it can also increase a firm’s potential losses via DIRECTIONAL RISK, CURVE RISK, and/ or LIQUIDITY RISK. See also ASSET-LIABILITY MANAGEMENT, GAP, RATE-SENSITIVE ASSETS, RATE-SENSITIVE LIABILITIES.",palgrave,0,10.6,16.3,16.3,17.52,17.1,12.3,14.5,16.77
GARMAN-KOHLHAGEN MODEL,"A closed-form OPTION pricing model developed by Garman and Kohlhagen that is used to value EUROPEANOPTIONS on CURRENCIES. The model is an adaptation of the BLACK-SCHOLES MODEL. The equations are given as:andwhere S is the current EXCHANGE RATE (domestic currency per unit of for- eign currency), X is the STRIKE PRICE, t is the time to MATURITY, r is the CONTINUOUSLY COMPOUNDED domestic INTEREST RATE, q is the con- tinuously compounded foreign interest rate,2",palgrave,0,37.94,14.1,15.9,12.31,15.6,11.9,17.33333333,15.83
GATE,A restriction imposed by a HEDGE FUND that limits the amount of REDEMPTIONS that can occur in a given period. A fund may be gated when the manager is attempting to preserve CAPITAL and avoid an acceleration of redemptions that would otherwise lead to forced disposal of ASSETS.,palgrave,0,47.12,12.7,0,10.57,13.1,10.09,17,14.6
GATHER IN THE STOPS,"Concentrated selling to drive a SECURITY price down to levels where STOP ORDERS are known to exist. This forces the stop orders to convert into buy or sell MARKET ORDERS, clearing the way for further upward or downward moves once executed. See alsoSNOWBALLING.",palgrave,0,49.65,11.7,0,11.6,13.2,9.48,12.75,12.32
GAUSSIAN DISTRIBUTION,See NORMAL DISTRIBUTION.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,1.5,14.53
GC,See GENERAL COLLATERAL.,palgrave,0,-24.64,17.4,0,13.12,13,9.05,2.5,14.53
GDP DEFLATOR,"A measure designed to express current GROSS DOMESTIC PRODUCT (GDP) in terms of GDP in a base year, effectively providing a gauge of INFLATION. It is computed as:where GDPnom is the current period GDP, GDPreal is the base year GDP. Also known as IMPLICIT PRICE DEFLATOR.",palgrave,0,55.95,9.3,12.5,9.39,9.2,10.57,10.33333333,13.08
GDR,See GLOBAL DEPOSITORY RECEIPT.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,2,11.6
GDS,See GLOBAL DEPOSITORY SHARE.,palgrave,0,8.2,13.1,0,11.6,10,11.73,2,11.6
GEARING,See LEVERAGE.,palgrave,0,77.91,2.9,0,1.3,7.8,11.63,0,0.8
GEISHA,"A PRIVATE PLACEMENT, denominated in a CURRENCY other than Japanese yen, which is issued by a Japanese company. See alsoDAIMYO, SAMURAI, SHIBOSAI, SHOGUN.",palgrave,0,34.42,11.3,0,12.8,11.2,11.76,8.25,13.3
GEMM,See GILT-EDGED MARKET MAKER.,palgrave,0,50.5,7.2,0,10.15,10,15.68,1,1.6
GENERAL AGREEMENTS TO BORROW,"Agreements between GROUP OF 10 countries plus Switzerland to provide the INTERNATIONAL MONETARY FUND with LOANS on an emergency basis, which the IMF can then lend on to member countries in need of funds.",palgrave,0,45.43,15.4,0,11.96,19.1,11.82,20,17.13
GENERAL COLLATERAL (GC),COLLATERAL in the REPURCHASE AGREEMENT market that is in abundant SUPPLY and which does not there- fore allow a repurchase agreement BORROWER to obtain a lower than normal BORROWING rate. See also SPECIAL.,palgrave,0,46.27,10.9,0,12.29,11.5,10.2,10.75,11.45
GENERAL EQUILIBRIUM,"A MICROECONOMIC framework that focuses on SUPPLY, DEMAND, and prices of individual markets, and how these interact simultaneously at a macroeconomic level. Multiple strands of study support this theory, including theories based on partial equilibrium, competitive equi- librium, and price transfer equilibrium.",palgrave,0,7.86,17.4,0,18.62,19.2,13.7,17.5,20.78
GENERAL INSURANCE,"In the United Kingdom, INSURANCE coverage for damage or loss to property. The UK market is broadly segmented into the three areas: large commercial RISK coverage (for large companies and unique risks, such as those UNDERWRITTEN through LLOYD’S OF LONDON), commerciallines (including small business properties), and personal lines (including home and automobile coverage for individuals). See also NONLIFE INSURANCE, PROPERTY AND CASUALTY INSURANCE.",palgrave,0,24.78,15,17.9,16.88,17.9,10.44,17.16666667,16.65
GENERAL OBLIGATION (GO) BOND,"In the United States, a MUNICIPAL BOND issued by a state or local authority that is typically used to finance nonrevenue-producing projects, such as schools and transportation systems. Bonds are generally repaid through the issuance of new DEBT or via TAX REV- ENUES. See also REVENUE BOND.",palgrave,0,55.54,9.4,11.2,11.66,10.8,11.81,8.833333333,12.24
GENERAL PARTNER,"A partner in a PARTNERSHIP that is generally respon- sible for managing tactical and strategic operations, and who bears UNLIMITED LIABILITY for DEBTS incurred.",palgrave,0,13.28,17.4,0,15.38,17.5,13.38,19,21.27
GENERAL PARTNERSHIP (GP),"A form of unincorporated business organiza- tion that includes two or more general PARTNERS who manage the business operations and are ultimately liable for the organization’s LIABILITIES. Since the PARTNERSHIP is constituted as an UNLIMITED LIABILITY structure, the personal assets of the general partners can be used to settle any claims. In add- ition, each general partner is liable for the actions and liabilities of all other general partners. General partnerships are typically established as separate tax- paying entities. See also LIMITED PARTNERSHIP, SILENT PARTNERSHIP.",palgrave,0,20.38,14.6,15.9,15.54,14.6,9.5,13.5,14.33
GENSAKI,"The broad Japanese MONEY MARKET, which includes trad- ing in short-term GOVERNMENT BILLS, CERTIFICATES OF DEPOSIT, NOTES, REPURCHASE AGREEMENTS, and REVERSE REPURCHASE AGREEMENTS.",palgrave,0,31.21,14.6,0,20.6,22.2,11.64,16.5,14.42
GHARAR,"A form of RISK or uncertainty, as defined under the rules of ISLAMIC FINANCE. A cost-benefit review of contracts may be conducted by a religious scholar, and those that are found to contain an excessive or unneces- sary amount of risk may be prohibited. See also RIBA.",palgrave,0,55.54,9.4,11.9,8.93,8.6,10.13,10.16666667,12.24
GHOSTING,A practice where two or more MARKET MAKERS attempt to jointly influence the price of a SECURITY; ghosting is illegal in many juris- dictions as market makers are meant to compete against each other.,palgrave,0,36.97,16.6,0,10.92,18.4,10.43,21,18.31
GIB,See GUARANTEED INCOME BOND.,palgrave,0,50.5,7.2,0,10.15,8.8,11.73,2,11.6
GILT,See -EDGED STOCK.,palgrave,0,119.19,-2.7,0,-0.46,3.6,9.05,0.5,1.2
GINI COEFFICIENT,"A statistical measure developed by Italian statistician Corrado Gini that measures the INCOME DISTRIBUTION within an economic system. A Gini coefficient of 0.0 reflects perfect equality in INCOME distri- bution, while a coefficient of 1.0 indicates perfect inequality. Also known asINDEX OF CONCENTRATION.",palgrave,0,14.66,14.8,14.6,16.64,14.6,12.79,11.16666667,15.95
GINNIE MAE,See GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA).,palgrave,0,-27.68,18.6,0,21.68,18.4,14.46,5,15.73
GIVE-UP,"A brokered TRADE executed on behalf on another party; once exe- cuted, the name of the party to the trade is “given up” by the BROKER to the trader so that the proper party of record can be recorded. See also BLIND BROKERING.",palgrave,0,66.57,9.3,0,6.73,9.4,8.01,12.25,10.46
GLASS-STEAGALL ACT,US Federal legislation enacted in 1933 to separate banking powers in the aftermath of the 1929 STOCK market crash. Glass-Steagall,palgrave,0,34.26,13.5,0,14.04,14.5,11.73,15,16
GLOBAL BOND,"A BOND that is issued simultaneously in a domestic mar- ket and the EUROMARKETS. Global bonds, which may be FIXED RATE or FLOATING RATE and carry MATURITIES ranging from 1 to 30 years, are gen- erally issued by large, well-known CORPORATIONS or supranationals that have international operations and broad name recognition. See also DRAGON, EUROBOND.",palgrave,0,44.44,11.6,13.6,12.76,13,11.72,12.5,14.59
GLOBAL MACRO,"A common HEDGE FUND strategy where a manager makes use of macroeconomic analysis to create an INVESTMENT strategy. Global macro strategies can invest broadly, on a cross-border basis, in FOREIGN EXCHANGE, INTEREST RATES, EQUITIES, CREDITS, and COMMODITIES.",palgrave,0,35.78,12.9,0,15.78,15.8,13.94,14.25,14.97
GLOBAL MEDIUM-TERM NOTE,"A MEDIUM-TERM NOTE (MTN) that is issued simultaneously in a domestic market and the EUROMARKETS, typically through a registered filing that allows for issuance at will. As with a standard MTN, a global issue can be denominated in one of several CURRENCIES and carry fixed or floating COUPONS with MATURITIES extending from 1 to 30 years.",palgrave,0,34.6,15.4,0,11.49,16.3,11.79,19,17.63
GLOBAL OFFERING,"Any NEW ISSUE of SECURITIES that involves selling, placing, and listing in more than one market, and which may involve more than one issuing CURRENCY.",palgrave,0,46.1,13,0,11.32,14.8,10.56,15.5,14.8
GLOBEX,"An electronic TRADING platform, launched in 1992, allowing for 24-hour TRADING in specific EXCHANGE-TRADED DERIVATIVES. The initiative was developed and sponsored by the CHICAGO MERCANTILE EXCHANGE, which ultimately made use of the technology platform developed by the Paris Bourse (now part of NYSE EURONEXT).",palgrave,0,32.22,14.2,0,16.71,18.2,11.9,16.5,16.98
GMBH,See GESELLSCHAFT MIT BESCHRÄNKTER HAFTUNG.,palgrave,0,83.32,2.9,0,21.2,16.9,16.52,1.5,2
GMRA,See GLOBAL MASTER REPURCHASE AGREEMENT.,palgrave,0,32.56,10,0,17.72,14,13.36,2.5,10
GNMA,See GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.,palgrave,0,-35.13,19.4,0,24.68,19.7,13.36,4.5,18
GNOME,"A 15-year PARTICIPATION CERTIFICATE issued by the FEDERAL HOME LOAN MORTGAGE CORPORATION. See also DWARF, MIDGET.",palgrave,0,37.98,10,0,14.46,11.4,11.93,5,13.2
GNOMES OF ZURICH,"A reference to Swiss BANKERS, attributable pri- marily to their secrecy.",palgrave,0,43.39,9.9,0,12.62,10.6,14.23,8.5,18.95
GO BOND,See GENERAL OBLIGATION BOND.,palgrave,0,33.58,9.6,0,11.6,10,11.73,3,11.6
GOING CONCERN VALUE,"A fundamental ACCOUNTING principle based on the premise that a company intends to operate as a continuing business (going concern) and will not be liquidated, meaning that its ASSETS should be valued at historical cost rather than at liquidation value. See also GOING CONCERN CONCEPT.",palgrave,0,31.72,14.4,0,13.29,14.9,10.37,15.75,16.11
GOING LONG,"The act of creating a LONG POSITION in an ASSET or a mar- ket. See also FLATTENING, GOING SHORT.",palgrave,0,70.29,5.8,0,3.51,2.7,9.09,5.25,10.12
GOING PRIVATE,"The process of taking a PUBLIC COMPANY out of the public markets, typically through the acquisition of outstanding SHARES and delisting from a STOCK EXCHANGE. Going private may require the assump- tion of a significant amount of DEBT (to purchase outstanding shares), as in a LEVERAGED BUYOUT. See also GOING PUBLIC.",palgrave,0,54.22,9.9,11.2,11.77,11.7,9.43,10.5,9.94
GOING PUBLIC,"The process of taking a PRIVATE COMPANY to the pub- lic markets, typically through an INITIAL PUBLIC OFFERING. By making the company public, those previously providing CAPITAL (e.g., original owners, VENTURE CAPITAL funds) convert their stakes into marketable SHARES, which they may retain or sell. See also GOING PRIVATE.",palgrave,0,46.47,10.8,13,13.34,13.1,11.21,11.16666667,10.6
GOING SHORT,"The act of creating a SHORT POSITION in an ASSET or a mar- ket. See also FLATTENING, GOING LONG.",palgrave,0,70.29,5.8,0,3.51,2.7,9.09,5.25,10.12
GOLD,"A precious metal that serves as a store of value and MEDIUM OF EXCHANGE. Gold is an actively traded COMMODITY, and can be bought and sold physically as bullion, coins, jewelry, or financially through cash-settled FUTURES, OPTIONS, and other DERIVATIVES.",palgrave,0,42.72,12.3,0,12.47,13.8,10.55,13.5,14
GOLD BUG,An INVESTOR that holds a BULLISH view on the price of gold and invests in gold either through physical metal or via gold-related STOCKS or EXCHANGE-TRADED FUNDS.,palgrave,0,60.99,11.5,0,11.38,15.6,10.82,16.5,13.76
GOLD FIXING,"The process of establishing the price of GOLD in the London Bullion Market, which occurs at 10:30 a.m. and 3 p.m. every busi- ness day through the settling of buying and selling amongst authorizedDEALERS.",palgrave,0,53.89,14.2,0,11.09,19.3,13.22,19,15.95
GOLD RESERVES,"The RESERVES of a country held in the form of GOLD, typically stored at a centralized repository. Such reserves can be used for spe- cific purposes, such as INTERVENTION in the FOREIGN EXCHANGE markets; they can also be lent to other countries for defined periods of time.",palgrave,0,47.62,12.5,0,10.16,13,9.84,14.75,14.51
GOLDBRICKS,"COMMON STOCKS that appear to be financially sound on the surface, but which feature little substance when examined more closely.",palgrave,0,51.18,11.1,0,13.75,14.2,10.16,12,12
GOLDEN HANDCUFFS,"A compensation package intended to induce an executive to remain at a company; if the executive departs, some or all of the benefits conveyed through the golden handcuffs may have to be returned. See also GOLDEN HANDSHAKE, GOLDEN HELLO, GOLDEN PARACHUTE.",palgrave,0,42.21,12.5,0,12.13,13.4,8.89,13.25,12.1
GOLDEN HANDSHAKE,"A compensation clause that gives an execu- tive a substantial guaranteed payout in the event of termination or dismissal (other than “for cause”). See also GOLDEN HANDCUFFS, GOLDEN HELLO, GOLDEN PARACHUTE.",palgrave,0,47.28,10.5,0,13.86,12.9,11.03,10.25,12.65
GOLDEN HELLO,"An upfront compensation package granted to an executive joining from another firm; depending on the structure of the pack- age it may serve as a “buy out” of the package being left at the prior company, and thus limit the effectiveness of long-term, performance-driven financial rewards. See also GOLDEN HANDCUFFS, GOLDEN HANDSHAKE, GOLDEN PARACHUTE.",palgrave,0,35.61,15,0,13.81,18,10.24,17.5,15.24
GOLDEN PARACHUTE,"A compensation clause that gives top execu- tives guaranteed payouts in the event they lose their jobs through a FRIENDLY TAKEOVER or HOSTILE TAKEOVER. See also GOLDEN HANDCUFFS, GOLDEN HANDSHAKE, GOLDEN HELLO.",palgrave,0,63.7,8.4,0,13.98,12.9,10.84,8.5,10.15
GOLDEN SHARE,"A SHARE or block of shares in a company conveying extraordinary VOTING RIGHTS, allowing for de-facto control. Golden sharesare typically held for a period of time by a government in a company that is undergoing PRIVATIZATION.",palgrave,0,27.83,13.9,0,12.41,12.4,10.67,14.5,14.98
GOOD DELIVERY,A SECURITY/certificate with all necessary details and ENDORSEMENTS that allows accurate and efficient transfer of TITLE from one party to another.,palgrave,0,16.32,16.2,0,16.94,17.3,11.45,16.5,19.83
GOOD FOR MONTH ORDER,A LIMIT ORDER or STOP ORDER to buy or sell a SECURITY that remains in effect until the end of the current month.,palgrave,0,65.05,9.9,0,5.46,8.5,8.21,12.5,10.94
GOOD MONEY,"Any source of funds that is available for immediate use, such as FEDERAL FUNDS.",palgrave,0,74.19,6.4,0,8.63,7.8,9.97,8,11.31
GOOD TILL CANCELLED ORDER,"A LIMIT ORDER for the purchase or sale of a SECURITY at a specific price that remains in effect until the price target is met and the TRADE is executed, or is otherwise cancelled by the individual or institution placing the order. Also known as OPEN ORDER. See also DAY ORDER, MARKET ORDER, STOP ORDER.",palgrave,0,52.9,10.4,11.2,8.24,9,7.99,11.16666667,10.96
GOVERNMENT BILL,"A MONEY MARKET instrument issued by a governmen- tal authority as a funding mechanism and a tool for conducting MONETARY POLICY. Bills are often issued on a DISCOUNT, rather than COUPON-bearing, basis, and typically have MATURITIES extending from 1 week to 1 year. Those issued by governments of industrialized nations are considered to be highly LIQUID and extremely creditworthy, with virtually no risk of DEFAULT. See also GOVERNMENT BOND.FEDERAL HOME LOAN MORTGAGE CORPORATION, FEDERAL NATIONAL MORTGAGE ASSOCIATION.",palgrave,0,26.51,14.4,16.8,15.26,15.4,11.98,15.375,18.11
GOVERNMENT STOCK,"In the United Kingdom, GILT-EDGED SECURITIES issued by the government. See also GOVERNMENT BOND.",palgrave,0,38.99,9.6,0,12.77,10,9.62,4,5.66
GP,See GENERAL PARTNERSHIP.,palgrave,0,9.21,12.7,0,15.03,14.6,9.05,2.5,14.53
GPM,See GRADUATED PAYMENT MORTGAGE.,palgrave,0,8.2,13.1,0,15.95,13.5,11.73,2,11.6
GRACE PERIOD,(1) The additional days permitted for payment on a BILL OF EXCHANGE or certain types of CREDIT facilities once the due date has passed.(2) See CURE PERIOD.,palgrave,0,52.53,12.6,0,9.46,14.6,10.82,17.5,16.73
GRADING,"The standards applied in defining the quality of a COMMODITY in order to ensure consistency in pricing, trading, and delivery under both physical and DERIVATIVE CONTRACTS.",palgrave,0,19.71,17,0,14.92,18,12.82,19,19.63
GRAINS,"The general group of COMMODITIES referencing wheat, corn, soybeans, maize, oats, oilseed, beans, rice, and sorghum. See also COMMODITY DERIVATIVE, SOFTS.",palgrave,0,52.36,8.6,0,14.94,13.6,11.68,6.75,11.82
GRANNY BOND,"In the United Kingdom, an issue of GILTS with an enhanced COUPON or TAX benefits that is only available to INVESTORS that have reached a pensionable age.",palgrave,0,60.99,11.5,0,9.87,14.2,10.24,15.5,13.76
GRANTOR TRUST,"In the United States, a TRUST in which the income gener- ated by INVESTMENT activities is taxed at the level of the individual rather than the trust itself.",palgrave,0,51.52,13,0,9.12,14.3,8.41,17,15.49
GRAVEYARD MARKET,"A phase appearing at the end of a prolonged BEAR MARKET where INVESTORS have sustained large losses and new inves- tors are unwilling to commit CAPITAL; volumes are extremely light, and dir- ection may be uncertain.",palgrave,0,43.4,16.2,0,11.5,20.1,11.56,23,17.73
GRAY KNIGHT,"A second unsolicited bidder in a HOSTILE TAKEOVER transaction that attempts to take advantage of the TARGET company’s reluc- tance to accept the BLACK KNIGHT’s original BID by offering slightly more “attractive” terms. See also WHITE KNIGHT, WHITE SQUIRE.",palgrave,0,51.68,10.9,0,14.39,14.5,12.3,13.25,14.98
GREEKS,"RISK measures for DERIVATIVES that are used to deter- mine the price sensitivity of CONTRACTS to changes in the UNDERLYING ASSET (DELTA, GAMMA), VOLATILITY (VEGA), passage of time (THETA), and INTEREST RATES (RHO). The greeks of individual contracts can be added to determine the sensitivities of an entire PORTFOLIO, allowing for efficientpricing and RISK MANAGEMENT. The general impact on the value of an option for a unit increase in the relevant variable is given as:Also known as OPTION SENSITIVITIES.",palgrave,0,36.32,14.7,15.9,13.12,17.3,11.74,18.16666667,17.1
GREENBACK,The US dollar.,palgrave,0,93.81,0.9,0,-4.29,-1.2,0.15,0.5,1.2
GREENMAIL,"A targeted repurchase by a company of a block of its own COMMON STOCK from a corporate RAIDER or hostile acquirer, gener- ally at a PREMIUM to the current market price. Greenmail payments, which were prevalent during the TAKEOVER cycle of the 1980s, are not common in the marketplace of the millennium as certain legal/regulatory regimes have deemed such payments illegal.",palgrave,0,40.52,15.2,0,12.31,17.9,11.36,20.25,18.1
GREENSHOE,"An OPTION granted by an issuing company to the SYNDICATE UNDERWRITING a NEW ISSUE of EQUITY, which permits the syndicate to sell additional shares as part of the PRIMARY MARKET offering in the face of excessive DEMAND, up to a maximum amount defined in advance. Also known as OVERALLOTMENT OPTION, SHOE.GROSS NATIONAL PRODUCT.",palgrave,0,27.66,16,0,12.36,16.2,11.21,19.75,18.9
GROSS INCOME,"(1) An individual’s income, before deductions and exemp- tions. (2). A company’s top level results, computed as pretax sales or REVENUE less COST OF GOODS SOLD. (2) Also known as GROSS PROFIT. (2) See alsoOPERATING INCOME",palgrave,0,44.75,11.5,0,9.97,11.9,11.11,11.5,12.76
GROSS INTEREST,"INTEREST paid or received, excluding the impact ofTAXES.",palgrave,0,29.52,11.1,0,14.46,11.4,13.9,6,18.2
GROSS LEASE,"A form of LEASE in which the LESSEE is only responsible for paying the LESSOR lease rental payments, while the lessor pays generalexpenses, maintenance, and TAXES. OPERATING LEASES are typically created as gross leases, while CAPITAL LEASES are not. See also NET LEASE.",palgrave,0,56.96,8.9,11.9,11.82,10.6,10.22,8.5,11.3
GROSS LINE,"The total amount of INSURANCE cover an INSURER will UNDERWRITE on a particular RISK, including the amount to be CEDED viaREINSURANCE.",palgrave,0,33.24,13.8,0,13.4,14.4,11.45,16.5,19.83
GROSS MARGIN,"A measure of a company’s ability to translate REVENUES into GROSS PROFITS (i.e., revenues after removing the costs of producing the goods/services), typically calculated as:where GP is gross profit, Rev is revenue.The higher the gross margin, the greater the company’s ability to convert its revenues into profits.",palgrave,0,15.31,22.8,0,15.22,28.9,13.02,31.5,23.91
GROSS NATIONAL PRODUCT (GNP),"A measure of the goods and services produced by a country, regardless of location. Since this measure includes goods and services that are produced outside national borders, it is broader than the GROSS DOMESTIC PRODUCT measure.",palgrave,0,53.21,10.3,0,12.87,12.8,9.35,11,11.64
GROSS PREMIUM,"A measure of an INSURER’s total profitability from INSURANCE UNDERWRITING activities (before EXPENSES), or the total of NET PREMIUMS plus load factors, computed as:where Pr is premium (net), OpE is OPERATING EXPENSE, and AC is AGENT COMMISSIONS.The greater the gross premium, the larger the amount of business being underwritten. Also known as GROSS PREMIUM WRITTEN, GROSS WRITTEN PREMIUM. See also FAIR PREMIUM.",palgrave,0,33.54,13.7,16.3,14.16,15.6,10.52,15.66666667,16.02
GROSS PROFIT,See GROSS INCOME.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
GROSS RATE,See FAIR PREMIUM.,palgrave,0,59.97,5.6,0,1.52,3.6,9.05,1.5,14.53
GROSS REDEMPTION YIELD,"In the United Kingdom, YIELD TO MATURITY.",palgrave,0,55.91,7.2,0,7.37,5.6,8.5,3.5,8.51
GROSS SPREAD,See UNDERWRITING SPREAD.,palgrave,0,34.59,9.2,0,15.03,14.6,9.05,1.5,14.53
GROSS WORKING CAPITAL,"The sum of a company’s CURRENT ASSETS and CURRENT LIABILITIES. See also NET WORKING CAPITAL, WORKING CAPITAL.",palgrave,0,37.47,10.1,0,11.33,8.6,8.7,5.25,8.11
GROSS YIELD,The YIELD on a SECURITY or INVESTMENT before deduct- ing TAXES and costs associated with acquiring the ASSET. See also NET YIELD.,palgrave,0,51.85,8.8,0,9.2,7.2,11.36,6.5,11.67
GROUP CAPTIVE,"A CAPTIVE formed as a licensed INSURER or REINSURER that is owned by a number of companies, and which writes INSURANCE cover for all of them. Since a group captive engages in a significant amount of third party business, it generally receives more favorable TAX treatment than a PURE CAPTIVE. Also known as an ASSOCIATION CAPTIVE or MULTIPARENT CAPTIVE. See also AGENCY CAPTIVE, CAPTIVE, PROTECTED CELL COMPANY, RENT-A-CAPTIVE, SISTER CAPTIVE.",palgrave,0,45.25,11.3,13,12.41,12.5,8.79,11.75,12.71
GROUP LIFE ASSURANCE,"In the United Kingdom, GROUP LIFE INSURANCE.",palgrave,0,64.37,6,0,9.87,7.6,6.24,3.5,8.51
GROUP LIFE INSURANCE,"A form of LIFE INSURANCE that is offered to an individual that forms part of a larger group, such as an employee of a company or an association. The insurance coverage may be conveyed through a sin- gle master policy, without specific or detailed health review of the individual members. Also known as GROUP LIFE ASSURANCE.",palgrave,0,44.03,11.8,14.1,9.86,10.5,8.79,13,13.19
GROUP OF 3 (G3),"A grouping of the three large industrial economies, includ- ing the United States, Germany, and Japan.",palgrave,0,72.16,7.2,0,12.18,12.2,11.34,8,8.9
GROUP OF 7 (G7),"International finance ministers from seven industrial- ized nations who attempt to influence economic and MONETARY POLICIES through coordinated actions. The original seven member nations were Japan, Germany, France, the United Kingdom, Italy, Canada, and the United States; Russia joined the group as a permanent member in 2002 to form the GROUP OF 8.",palgrave,0,36.12,14.8,0,14.63,18.4,12.1,17.75,17.39
GROUP OF 8 (G8),"The GROUP OF 7 plus Russia, which joined the original seven members in 2002.",palgrave,0,74.19,6.4,0,7.42,6.8,12.23,7,8.46
GROWTH FUND,A MUTUAL FUND or UNIT INVESTMENT TRUST that invests CAPITAL primarily or exclusively in GROWTH STOCKS.,palgrave,0,38.32,11.9,0,13.63,12.2,13.31,13,16.4
GROWTH STOCK,"The STOCK of a company that is expected to grow rapidly in the medium term, providing INVESTORS with CAPITAL GAINS. A growthstock may exhibit higher VOLATILITY and BETA than an INCOME STOCK. See also GROWTH FUND.",palgrave,0,59.3,8,11.2,9.73,7.7,9.5,7,9.24
GSE,See GOVERNMENT-SPONSORED ENTERPRISE.,palgrave,0,-24.64,17.4,0,36.32,33.4,14.31,2.5,14.53
GUARANTEE,"A contractual agreement where one party (the GUARANTOR) provides payment to a second party (the BENEFICIARY) should the original contracting party DEFAULT on its OBLIGATIONS. Through the provision of the guarantee, the obligations of the contracting party assume the CREDIT RATING of the guarantor, often a highly rated BANK or INSURER. See alsoCROSS GUARANTEE, FINANCIAL GUARANTEE.",palgrave,0,27.11,14.1,15.9,15.55,15.4,9.92,14.33333333,14.62
GUARANTEED INCOME BOND (GIB),"In the United Kingdom, a BOND issued by an INSURER in which the INVESTOR receives a GUARANTEED monthly or annual income for a period ranging from 1 to 5 years. The bonds are considered to be stable and secure as they are issued by only the most creditworthy insurers.",palgrave,0,46.61,12.8,0,8.59,11.9,10.65,15.75,15.51
GUARANTOR,"A party that supplies a GUARANTEE to another party, becom- ing responsible for performance or payment in the event of nonperformance by a third party.",palgrave,0,37.64,14.2,0,11.55,14.8,9.93,17.5,16.4
GUIDANCE LINE,"A BANK LINE granted to a customer that is used by a BANK or other FINANCIAL INSTITUTION for internal management purposes and is not specifically communicated to the customer. Since the client pays no COMMITMENT FEE, the guidance line can be cancelled or withdrawn by the lender at any time. See also ADVISED LINE.",palgrave,0,61.67,9.1,12.5,9.92,10.2,9.5,11.66666667,13.13
GUN JUMPING,(1) The public solicitation of orders for a PRIMARY OFFERING before REGISTRATION is complete. (2) TRADING of SECURITIESon the basis of nonpublic information (as a form of INSIDER TRADING). Gun jumping in either form is illegal in most national jurisdictions.,palgrave,0,25.8,14.6,0,13.17,14.4,11.73,15.5,19
GUNSLINGER,"A trader, INVESTOR, or INVESTMENT MANAGER that takes a considerable amount of speculative RISK in an attempt to generate highRETURNS.",palgrave,0,25.8,14.6,0,14.91,15.4,12.52,16,18
GYOSEI SHIDO,"The Japanese practice of bureaucratic control (or “administrative guidance”) of CORPORATIONS, exercised through REGULATION, KEIRETSU group pressure, and access to BANK-suppliedCREDIT.NET CAPITAL requirements under rules established by the SECURITIES AND H EXCHANGE COMMISSION.",palgrave,0,-12.79,23.2,0,24.78,29.9,14.36,28.5,26.53
HALAL,"Any action or objective that is permissible under Islamic law, and a key factor in ISLAMIC FINANCE. See also HARAAM.",palgrave,0,52.87,8.4,0,8.5,6.4,9.66,6,10
HAND SIGNAL,A method of communicating BIDS and OFFERS between FLOOR TRADERS in an OPEN OUTCRY market.,palgrave,0,64.71,8,0,10.72,9.6,10.7,7.5,8.67
HANDLE,"The whole number appearing to the left of the decimal in a SECURITIES or FOREIGN EXCHANGE price, often ignored by DEALERS and MARKET MAKERS quoting BIDS or OFFERS as they are implicitly understood. Also known as BIG FIGURE.",palgrave,0,52.19,10.7,0,10.68,11.1,9.57,12,12.86
HANG SENG INDEX (HSI),"The BENCHMARK INDEX of the HONG KONG STOCK EXCHANGE, originally developed in 1933 and computed on a MARKET CAPITALIZATION-weighted basis. The index comprises of 42 STOCKS (intended to increase to 50), and also features several key subindexes, including those related to BANKING, utilities, property, and commerce and industry.",palgrave,0,21.74,16.2,0,15.38,17.9,13.38,18,18.77
HARAAM,"Any action or objective that is forbidden under Islamic law, and which has led to the development of the ISLAMIC FINANCE sector. See also HALAL.",palgrave,0,50.33,9.3,0,8.98,7.4,9.31,7.75,11.4
HARD CALL PROTECTION,"A CALL PROTECTION provision in a BOND INDENTURE that prevents the ISSUER from calling the SECURITY for a specific period of time. See also NONCALLABLE BOND, SOFT CALL PROTECTION.",palgrave,0,48.3,10.1,0,11.53,10.2,9.8,10.75,14.08
HARD CURRENCY,See CONVERTIBLE CURRENCY.,palgrave,0,9.21,12.7,0,16.95,16.2,14.31,2.5,27.87
HARD DOLLARS,"Direct payments made by clients to FINANCIAL INSTITU- TIONS for services rendered. In commercial banking a client may pay a fee for a CREDIT facility; in SECURITIES a client may pay BROKERAGE COMMISSIONS for TRADE EXECUTION, or a fee for a financial plan. See also SOFT DOLLARS.",palgrave,0,55.54,9.4,13,10.32,9.7,10.46,10.83333333,13.09
HARD LANDING,"A state where fiscal or monetary restraint intended to curb excess DEMAND and high INFLATION erodes confidence and activity, leading to economic slowdown and RECESSION. See also SOFT LANDING.",palgrave,0,39.84,11.3,0,14.14,12.3,13.07,10.75,15.46
HARVEST,"In PRIVATE EQUITY and VENTURE CAPITAL, the process of crystallizing profits in a PORTFOLIO company through an INITIAL PUBLIC OFFERING or sale to a third party.",palgrave,0,36.63,14.6,0,12.48,15.8,10.39,19,16.55
HAUSBANK,"In Germany, a BANK acting as the primary relationship banker to a company, providing or arranging a variety of CREDIT-related ser- vices. Hausbanks often wield additional power by directly holding large share- holdings in client companies and by voting PROXIES on behalf of INVESTORS who leave their SHARES in bank CUSTODY.",palgrave,0,37.13,14.4,0,13.29,16.5,12.64,17.75,17.26
HAZARD,"An event that creates or increases PERIL. While hazards are not specifically covered in most INSURANCE contracts, the perils they create or magnify form the core of INSURABLE RISKS.",palgrave,0,56.76,8.9,0,12.11,10.7,12.52,8.75,12.7
HEAD AND SHOULDERS,"A TECHNICAL ANALYSIS charting figure of a SECURITY or INDEX that features a supporting price plateau, followed by a spike, then a reversal to a second supporting price plateau; the formation of a head and shoulders might then lead to a BREAKOUT on the upside or downside.See also REVERSE HEAD AND SHOULDERS.",palgrave,0,18.7,23.6,0,11.62,27.7,10.77,34,25.42
HEAVY MARKET,A market or sector that suffers price declines through selling pressures generated by large ORDER IMBALANCES. See alsoFAST MARKET.,palgrave,0,44.91,9.4,0,14.53,11.1,10.76,5.25,10.12
HEAVY SHARE,"A STOCK with a high price, and which may be a candidate for a STOCK SPLIT in order to lower its price and appeal to a broader number of INVESTORS, particularly those in the retail sector.",palgrave,0,51.86,15,0,7.32,16.4,9.37,20,16.62
HEDGE RATIO,"A measure that indicates the price relationship between a reference ASSET and a proxy HEDGE. The hedge ratio, which is generally based on a statistical process such as linear regression, reflects how much of an asset or DERIVATIVE is needed to protect or offset the RISK of the UNDERLYING reference. It can be computed via:where Cov (A, B) is the COVARIANCE between asset A and hedge instrument B, and σ2B is the VARIANCE of B. Also known as MINIMUM VARIANCE HEDGE RATIO.",palgrave,0,50.67,11.3,13.4,9.52,11.2,10.05,13.5,14.05
HEDGER,"A party that employs HEDGING techniques in order to minimize, or neutralize, RISK. See also HEDGE, SPECULATOR.",palgrave,0,45.93,9,0,11.04,8.9,11.49,4.75,10.46
HEDGING,"The process of creating a HEDGE in order to minimize, or neu- tralize, RISK. Hedging requires the selection of the correct instrument(s) and quantities in order to be effective. See also DELTA HEDGE, HEDGE RATIO, HEDGER.",palgrave,0,59.3,8,11.2,10.02,8.8,11.69,7,11.47
HERSTATT RISK,See SETTLEMENT RISK.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,1.2
HICP,See HARMONIZED INDEX OF CONSUMER PRICES.,palgrave,0,56.93,6.8,0,12.05,9,14.46,3,9.07
HIDDEN ORDER,"A type of ORDER submitted to an EXCHANGE or ALTERNATIVE TRADING SYSTEM that remains completely obscured from public view. See also DARK POOL, RESERVE ORDER.",palgrave,0,50.33,9.3,0,11.76,9.7,9.94,6.75,9.8
HIDDEN RESERVES,"RESERVES, generally held by a BANK or other FINANCIAL INSTITUTION, that are not readily detectable through an exam- ination of the BALANCE SHEET. Hidden reserves may be implicitly contained in an undervaluation of particular kinds of ASSETS, though such practice is often discouraged through ACCOUNTING rules as it fails to provide a fair esti- mate of financial condition.",palgrave,0,33.58,15.8,0,14.23,18.7,11.61,20,18.5
HIGH-LOW OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a payoff based on the difference between the high and low prices achieved by the UNDERLYING during the life of the transaction. See also CALL ON THE MAXIMUM, PUT ON THE MINIMUM.",palgrave,0,59.64,9.9,0,10.27,11.6,9.37,13,12
HIGH STREET BANK,"In the United Kingdom, a COMMERCIAL BANK that caters primarily to retail customers, accepting DEPOSITS and granting consumer, personal, and MORTGAGE LOANS. Although such banks also engage in other institutional banking business, their marketing and focus is weighted heavily toward individuals.",palgrave,0,25.29,14.8,0,17.64,18,13.13,14.25,16
HIGH WATER MARK,"The maximum value that has been attained by a HEDGE FUND or other INVESTMENT FUND. Performance fees are often synchronized to the high water mark, so that if RETURNS fall short of a previously established high water mark in a given year, the manager receives no performance fee.",palgrave,0,55.58,11.5,0,10.45,13.2,9.1,16,14.6
HIGH-YIELD BOND,"A BOND issued by a firm with a SUBINVESTMENT GRADE CREDIT RATING (i.e., below BBB– by Standard and Poor’s, below Baa3 by Moody’s Investors Services). The greater likelihood of DEFAULT compared with INVESTMENT GRADE bonds results in a greater COST OF CAPITAL for the ISSUER and a higher YIELD for INVESTORS. High-yield bonds were popu- larized during the corporate expansion and TAKEOVER phase of the mid- to late 1980s and have become an integral part of the CAPITAL MARKETS, par- ticularly in the United States and Europe. Also known as JUNK BOND. See alsoFALLEN ANGEL.",palgrave,0,60.65,9.5,11.2,10.79,11.7,10.89,11.5,10.97
HIRE PURCHASE,"In the United Kingdom, INSTALLMENT CREDIT.OPTION METHOD, SIMULATION METHOD.",palgrave,0,20.04,12.7,0,21.54,18.1,12.86,6.5,12.49
HISTORICAL RATE ROLLOVER,A transaction in the FOREIGN EXCHANGE MARKET where a maturing FORWARD CONTRACT is extended for a subsequent period based on the originally contracted FORWARD RATE. This implies one of the two parties to the transaction is providing the other with a CREDIT line equal to the difference between the old forward rate and the new forward rate.,palgrave,0,42.55,14.4,0,11.61,16.2,8.93,19.25,17.01
HISTORICAL VOLATILITY,"A retrospective statistical measure of the price movement of an ASSET based on historical data, often conveyed in terms of VARIANCE or STANDARD DEVIATION. Historical volatility is applied to various financial and RISK valuation techniques, including FRACTIONAL EXPOSURE and VALUE-AT-RISK. See also IMPLIED VOLATILITY.",palgrave,0,22.71,13.7,15,17.33,15.2,12.62,11.66666667,15.88
HIT THE BID,Any instance where one BROKER or DEALER is willing to sell at the BID price posted by another broker or dealer. See also TAKE THE OFFER.,palgrave,0,75.2,6,0,6.13,5.2,6.71,6,5.2
HKSE,See HONG KONG STOCK EXCHANGE.,palgrave,0,100.24,0.5,0,6.12,4.6,10.2,1.5,2
HLT LOAN,See HIGHLY LEVERAGED TRANSACTION LOAN.,palgrave,0,49.48,7.6,0,16.56,13.1,13.36,2.5,10
HOLD HARMLESS AGREEMENT,"An agreement by one party to assume the LIABILITY of a second party, holding it harmless or indemnifying against anypotential financial loss; such an agreement may exist implicitly or explicitly between PRINCIPAL and AGENT.",palgrave,0,11.59,20.1,0,15.21,21.9,11.36,24,21.84
HOLDING COMPANY,A form of corporate organization that holds the ownership interest in a PARENT and/or a series of SUBSIDIARIES. A hold- ing company may be constituted as a SHELL with no true operations and resources of its own (apart from ownership stakes in its subholdings) or it may be an operating company in its own right. See also BANK .,palgrave,0,51.89,10.8,14.1,8.94,10.1,8.41,13.5,13.24
HOLDING PERIOD,(1) The period of time that an INVESTMENT MANAGER holds an ASSET within a PORTFOLIO. (2) See LIQUIDATION PERIOD.,palgrave,0,35.27,13.1,0,9.57,11.4,12.06,15.5,16.02
HOMOGENOUS EXPOSURE,"A group of RISKS that feature similar or identi- cal characteristics, leading to the same EXPECTED LOSS levels. Homogenous exposures allow for more accurate and equitable ACTUARIAL PRICING of INSURANCE CONTRACTS and ultimately reduce the likelihood of ADVERSE SELECTION.",palgrave,0,17.84,15.6,0,16.65,16.3,13.51,15.75,20.11
HORIZONTAL CLEARING SERVICES,CLEARING services that are offered by the CLEARINGHOUSE of one EXCHANGE to other exchanges and ELECTRONIC COMMUNICATIONS NETWORKS as a means of generating additional REVENUES.,palgrave,0,20.72,16.6,0,17.82,19.5,11.82,17.5,18
HORIZONTAL MERGER,"A MERGER between companies from the same industrial sector, sometimes direct competitors. A horizontal merger is often arranged in order to build market share or obtain better product or client cover- age. Also known as HORIZONTAL INTEGRATION. See also CONGLOMERATE MERGER, VERTICAL MERGER.",palgrave,0,35.13,11,11.2,14.02,11.1,8.95,6.375,10.83
HORIZONTAL SPREAD,Any SPREAD where the OPTIONS being used have different EXPIRY DATES.,palgrave,0,68.77,6.4,0,11.58,8.9,8.49,5.5,4.4
HOST SECURITY,"A SECURITY (typically a NOTE or BOND) to which a DERIVATIVE is attached (i.e., an OPTION or COMPLEX OPTION for a STRUCTURED NOTE, or a WARRANT for a BOND WITH WARRANT).",palgrave,0,48.47,14.2,0,7.44,15,10.27,18.5,16.27
HOSTILE TAKEOVER,"An unsolicited ACQUISITION offer from a RAIDER or BLACK KNIGHT that the TARGET’s DIRECTORS and executives do not favor and which they attempt to thwart through ANTITAKEOVER DEFENSES, ANTITAKEOVER LAWS, or SCORCHED EARTH DEFENSES, or by seeking a friendly partner in the form of a WHITE KNIGHT or WHITE SQUIRE. Also known as CONTESTED TRANSACTION.",palgrave,0,43.56,14,0,13.29,17.3,9.88,18.75,16.82
HSI,See HANG SENG INDEX.STUCK DEAL.,palgrave,0,83.32,2.9,0,7.28,6.5,10.2,2.5,2
HURDLE RATE,See COST OF CAPITAL.,palgrave,0,75.88,3.7,0,0,0.6,0.2,2,1.6
HYBRID BOND,"A FIXED INCOME SECURITY with EMBEDDED OPTIONS that alter RISK and RETURN characteristics. The general class of hybrids includes CALLABLE BONDS, PUTABLE BONDS, BONDS WITH WARRANTS, CONVERTIBLE BONDS, and STRUCTURED NOTES.PREFERRED STOCK and JUNIOR SUBORDINATED DEBENTURES. See alsoPERPETUAL PREFERRED STOCK.",palgrave,0,32.6,12,12.5,19.42,16.7,12.19,8.333333333,11.32
HYBRID MODEL,"A general corporate system that is characterized by ILLIQUID CAPITAL MARKETS, an inactive or nonexistent CORPORATE CONTROL MARKET, and nascent regulatory and legal frameworks; family interests often hold large ownership stakes in companies, related company conglomeration is common, and ownership ties between companies and BANKS can be signifi- cant. Emerging nations often use the hybrid model. See also MARKET MODEL, RELATIONSHIP MODEL.",palgrave,0,16.62,16.1,17.1,17.17,17.6,11.79,16.33333333,15.38
HYPERINFLATION,"A phenomenon of rapidly escalating prices for goods and services, leading to dramatic loss of purchasing power. Though metrics of hyper- inflation are subjective, the INTERNATIONAL ACCOUNTING STANDARDS BOARD defines it to be three or more consecutive years of INFLATION reach- ing or exceeding 100% per annum. See also INFLATION ACCOUNTING.",palgrave,0,37.3,12.3,15,14.5,13.9,11.29,12.83333333,14.64
HYPOTHECATION,"A process where a BORROWER pledges ASSETS as COLLATERAL for a LOAN. No transfer of TITLE occurs through hypotheca- tion, but the LENDER accepting hypothecated assets is granted the right to dis- pose of the assets if the borrower DEFAULTS. The same process applies when an INVESTOR pledges securities to a BROKER to secure a PURPOSE (or MARGIN) LOAN or SHORT SALE. See also RE.",palgrave,0,63.39,8.5,10.7,9.57,9.4,10.28,8.875,10.21
IAS,See INTERNATIONAL ACCOUNTING STANDARDS.,palgrave,0,-34.11,19,0,27.55,23,15.68,3,21.6
IASB,See INTERNATIONAL ACCOUNTING STANDARDS BOARD.,palgrave,0,-1.29,14.7,0,24.68,19.7,13.36,3.5,18
IBF,See INTERNATIONAL BANKING FACILITY.,palgrave,0,-51.03,21.4,0,21.75,18.3,15.68,3,21.6
IBNR,See INCURRED BUT NOT REPORTED.,palgrave,0,66.4,5.2,0,7.28,5.6,10.2,2.5,10
IBRD,See INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.,palgrave,0,-3.32,15.5,0,22.34,17.1,10.75,5.5,19.94
ICAAP,See INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS.,palgrave,0,-10.76,16.3,0,20.75,16.1,14.46,6,22.4
ICE,See INTERCONTINENTAL EXCHANGE.,palgrave,0,-50.02,21,0,26.63,24,9.05,1.5,14.53
ICEBERG,See RESERVE ORDER.,palgrave,0,59.97,5.6,0,3.43,5.2,9.05,0.5,1.2
IDB,See INTER-DEALER BROKER.,palgrave,0,9.21,12.7,0,13.12,14.6,19.58,1.5,1.2
IDIOSYNCRATIC RISK,See DIVERSIFIABLE RISK.,palgrave,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
IDLE BALANCE,Funds placed in a BANK by a DEPOSITOR that do not earn any INTEREST. Also known as TRANSACTION BALANCE.,palgrave,0,70.29,5.8,0,6.29,4.4,9.09,5.25,10.12
IDR,See INTERNATIONAL DEPOSITORY RECEIPT.,palgrave,0,-76.41,24.9,0,24.65,20.6,15.68,3,21.6
IFC,See INTERNATIONAL FINANCE CORPORATION.,palgrave,0,-51.03,21.4,0,26.1,21.8,15.68,3,21.6
IFRS,See INTERNATIONAL FINANCIAL REPORTING STANDARDS.,palgrave,0,-35.13,19.4,0,28.16,22.5,16.52,4.5,26
IJARA,"A secured LEASE scheme used in ISLAMIC FINANCE, where a customer secures financing for a durable ASSET by leasing it from a BANK (which purchases the asset, and grants the customer the right to buy the asset at a defined value in the future).",palgrave,0,43.74,18.1,0,9.19,21.9,10.84,25,20.33
ILLIQUID,"(1) At a corporate level, the state of possessing insufficient cash to meet obligations. (2) At a market level, the state of having insufficient transaction volume to permit TRADING. See also LIQUID, LIQUID ASSETS, LIQUIDITY, ITY.",palgrave,0,36.28,12.7,0,11.89,13.1,10.67,12.5,13.87
ILLIQUIDITY,"(1) At a corporate level, lack of cash, NEAR MONEY, unsecured funding access, or unencumbered LIQUID ASSETS to meet expected or unex- pected payments. (2) The state of being ILLIQUID or lacking LIQUID ASSETS.(3)At a market level, lack of TRADING volume in a SECURITY or ASSET; an illiquid market is characterized by wide SPREADS, i.e., large differences between BIDS and OFFERS. See also ENDOGENOUS LIQUIDITY, EXOGENOUS LIQUIDITY, LIQUIDITY, LIQUIDITY RISK.",palgrave,0,19.03,19.3,0,13.47,22.2,12.37,24.5,19.71
ILS,See INSURANCE-LINKED SECURITY.,palgrave,0,-24.64,17.4,0,24.72,24,19.58,2.5,27.87
IMMEDIATE ANNUITY,An ANNUITY contract that begins to make pay- ments to the BENEFICIARY as soon as it is executed.,palgrave,0,53.21,10.3,0,7.25,8.2,9.79,12,13.87
IMMEDIATE OR CANCEL ORDER,An ORDER to purchase or sell SECURITIES where the BROKER is instructed to fill as much of the order as possible as soon as it is entered and cancel any portion that is not immedi- ately filled.,palgrave,0,42.38,16.5,0,7.61,17,9.74,22.5,18.04
IMPACT DAY,The first day of official (rather than GRAY MARKET) TRADING in a NEW ISSUE of SECURITIES.See GDP DEFLATOR.See IMPLIED REPO RATE.,palgrave,0,50.16,11.5,0,11.14,13.3,10.69,13.5,14.11
IMPLIED FORWARD RATE,"The INTEREST RATE that can be earned for a defined period of time, starting at some future point. The implied forward rate is the rate necessary to make funds invested at a short rate and reinvested at aforward rate (i.e., multiple period) precisely equal to the return invested at a long rate (i.e., single period).The t-year implied forward rate starting in n periods (semiannual) is given by:(1 + rn )n⎣⎦where r is the prevailing semiannual SPOT RATE. Also known as FORWARD RATE. See also IMPLIED FORWARD CURVE, IMPLIED REPO RATE.",palgrave,0,48.84,12,13.8,10.39,13.2,9,14.75,13.41
IMPLIED REPO RATE,"The RETURN before FINANCING costs implied by a CASH-AND-CARRY ARBITRAGE involving BONDS. The implied repo rate can be computed via:(1 + r )b⎢⎣(1 + r *a,b )b−a ⎥⎦where r0,b is the SPOT RATE to time period b and r*a,b is the FUTURES rate covering periods a and b. Also known as IMPLIED FINANCING RATE. See alsoIMPLIED FORWARD RATE.",palgrave,0,57.27,8.8,12.2,8.46,8.5,9.41,8.75,11.31
IMPLIED VOLATILITY,"A prospective measure of the price movement of an ASSET imputed from the market prices of traded OPTIONS. VOLATILITY is one of the central inputs of option pricing models but is not directly observable in the market; accordingly, traders use observed option prices to derive volatility. See also HISTORICAL VOLATILITY.",palgrave,0,46.06,11,12.5,13.05,12.2,10.78,11,11.48
IMPLIED YIELD,"The YIELD on a SECURITY that is computed based on pre- vailing INTEREST RATES, as reflected in the current YIELD CURVE.",palgrave,0,58.62,10.3,0,9.23,11.3,12.2,14.5,16.02
IMPORT DUTY,"A TAX or TARIFF applied to goods that are being IMPORTED into a country, generally as a way of controlling the inflow of foreign goods and to generate additional tax-based REVENUES. An import duty may be lev- ied via a fixed charge or on an AD VALOREM basis.",palgrave,0,55.58,11.5,0,7.9,11.3,11.08,14.5,13.77
IMPORTS,"Goods and services produced offshore, transported or brought into the country, and sold to residents of the nonproducing nation, including VISIBLES (goods) and INVISIBLES (services). See also BALANCE OF TRADE, EXPORTS.",palgrave,0,38.82,11.7,0,15.72,14.9,10.52,10.75,13.94
IMPREST ACCOUNT,(1) An account established by a company as a SELF- INSURANCE mechanism to cover low-severity property losses. (2) A petty cash account that allows an individual to charge for small expenses.,palgrave,0,23.09,17.7,0,11.73,18.4,11.29,23.5,21.43
IN-ARREARS SWAP,See ARREARS SWAP.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
IN PLAY,The state of a company that is the subject of a TAKEOVER or which has put itself up for sale.,palgrave,0,85.02,6.4,0,3.89,6,1.78,11,8
IN-THE-MONEY,"A condition where the price of an UNDERLYING reference ASSET is higher than the STRIKE PRICE for a CALL OPTION or below the strike for a PUT OPTION, meaning the contract has immediate INTRINSIC VALUE if exercised. See also AT-THE-MONEY, MONEYNESS, OUT-OF-THE-MONEY.",palgrave,0,41.7,12.7,0,12.3,14.2,9.57,14.5,15.07
INC,See ORPORATED.,palgrave,0,-6.7,14.7,0,4.2,10.2,11.63,1,20.8
INCHOATE BILL OF EXCHANGE,"A BILL OF EXCHANGE where one or more of the material terms are omitted, and which can be completed at the dis- cretion of the possessor within a reasonable time frame. See also INCHOATE CONTRACT.",palgrave,0,62.17,8.9,0,8.47,9,9.47,10.75,11.57
INCHOATE CONTRACT,"A CONTRACT that has not been executed by all required parties, and which is therefore not considered enforceable. See alsoINCHOATE BILL OF EXCHANGE.",palgrave,0,59.8,7.8,0,12.57,10.1,9.7,6.75,11.56
INCOME,"A REVENUE stream that arises from INVESTMENT, sales, or labor, and which may be subject to some form of TAX.",palgrave,0,76.56,7.6,0,7.37,9.5,8.58,11,10
INCOME DISTRIBUTION,"The allocation of national income across specific groups or classes, often computed for comparative purposes. The allocation can be measured via statistical measures, such as the GINI COEFFICIENT.",palgrave,0,23.43,13.5,0,16.29,14,12.23,11.5,17.03
INCOME FUND,A MUTUAL FUND or UNIT INVESTMENT TRUST that invests CAPITAL primarily or exclusively in INCOME STOCKS.,palgrave,0,29.86,13.1,0,13.63,12.2,12.33,13,16.4
INCOME STATEMENT,"A key FINANCIAL STATEMENT that reflects a com- pany’s REVENUES and EXPENSES throughout the fiscal accounting period; the results it presents thus contain the cumulative effect of the reporting period. Presentation of the income statement can vary by country, accounting regime and/or industry sector. The summarized income statement takes the following general form:Also known as PROFIT AND LOSS ACCOUNT.",palgrave,0,34.56,13.3,15.5,15.95,16,11.57,14.5,13.98
INCOME STOCK,"The STOCK of a company that is expected to produce gradual, if stable, profits over the medium term, providing INVESTORS with DIVIDENDS rather than significant CAPITAL GAINS. An income stock may fea- ture lower VOLATILITY and BETA than a GROWTH STOCK. See also INCOME FUND.",palgrave,0,56.25,9.1,12.5,10.72,10,10.35,10.16666667,11.33
INCOME TAX,"A TAX levied on INCOME by a government authority to fund the provision of government services and to enforce some degree of INCOME DISTRIBUTION. Income tax may be levied at a personal level (including indi- viduals, households, SOLE PROPRIETORSHIPS, PARTNERSHIPS) and at a cor- porate level. Income tax is often designed as a PROGRESSIVE TAX.",palgrave,0,44.44,11.6,14.1,12.01,12.4,10,12.83333333,13.87
INCOME WARRANT,A WARRANT that is structured to pay the holder INTEREST prior to being EXERCISED.,palgrave,0,57.27,8.8,0,9.91,8.5,9.97,8,11.31
INCONVERTIBLE CURRENCY,See NONCONVERTIBLE CURRENCY.,palgrave,0,-24.64,17.4,0,22.75,20.9,14.31,2.5,27.87
INCORPORATED (INC),"In the United States, a CORPORATION that is pub- licly traded.",palgrave,0,68.77,6.4,0,7.35,6.3,9.92,5.5,8.04
INCORPOREAL INTEREST,"The right to an INSURABLE INTEREST in a des- ignated ASSET, conveyed when the assets are pledged as COLLATERAL.",palgrave,0,52.19,10.7,0,10.21,11.1,12.06,13.5,16.02
INCURRED LOSS,"In INSURANCE, a loss that has already occurred, whether or not the INSURER has paid a SETTLEMENT to the INSURED. See alsoINCURRED LOSS RATIO.",palgrave,0,67.76,6.8,0,9.38,7.7,8.84,7,9.8
INCURRED LOSS RATIO,"A measure of how much of an INSURER’s PREMIUM is used to cover losses, computed as:where Lossinc is the sum of INCURRED LOSSES and Pr is premium earned. The larger the ratio, the greater the amount of premium that is used to coverlosses.",palgrave,0,58.11,10.5,0,8.36,10.7,9.11,13.75,12.32
INDEMNIFICATION,The process of guaranteeing payment or recompense should a party suffer a specified loss.,palgrave,0,48.81,9.9,0,13.22,11.1,8.84,9,14.17
INDEMNITY COMPANY,An INSURER that specializes in UNDERWRITING a range of PROPERTY AND CASUALTY INSURANCE covers.,palgrave,0,14.97,14.7,0,15.25,12.8,13.35,13,22.74
INDEMNITY CONTRACT,"An INSURANCE CONTRACT that provides the INSURED with restitution for actual losses sustained. The indemnity contract, which includes PROPERTY AND CASUALTY INSURANCE and LIABILITY INSURANCE, is designed to return the insured to the financial state it occu- pied prior to the loss. See also INDEMNITY, VALUED CONTRACT.",palgrave,0,30.16,13,14.1,14.9,13.4,10.8,11.5,13.09
INDEMNITY TRIGGER,"A conditional event in an INSURANCE-LINKED SECURITY that causes suspension of INTEREST and/or PRINCIPAL when actual losses sustained by the ISSUER reach a predefined amount. See also INDEX TRIGGER, PARAMETRIC TRIGGER.",palgrave,0,30.36,12.9,0,16.47,14.7,13.06,12.25,17.81
INDENTURE,"(1) The written terms and conditions of a BOND or NOTE issue, which generally includes details regarding form of SECURITY, INTEREST,CALL/PUT provisions, COVENANTS, EVENTS OF DEFAULT, and PRINCIPAL repayment. The indenture also defines the rights, privileges, and OBLIGATIONS of the ISSUER, INVESTOR, and TRUSTEE related to the initial provision of CAPITAL and the timely payment of interest and repayment of principal. (2) A DEED that relates to the transfer of a landed estate.INDEPENDENT FINANCIAL ADVISOR.",palgrave,0,16.49,20.3,0,15.39,24.6,13.29,28.75,23.53
INDEX (,"1) A statistical measure that combines disparate data into a single reference, which becomes a BENCHMARK for some base year of computation. An index can be computed in various forms, either without a weighting (i.e., a pure price index equal to the price in the current period divided by the price in the base period), or with a weighting (i.e., as in the CURRENT WEIGHTED INDEX and the BASE WEIGHTED INDEX). (2) A basket of ASSETS that are com- bined into a single, often tradable, representation. (1) See also INDEXATION.PROGRAM TRADING.",palgrave,0,25.29,21,0,10.58,24.5,10.75,27.75,22.16
INDEX FUND,"A MUTUAL FUND that GUARANTEES INVESTORS returns based on a defined market INDEX or subindex. Index funds generally fea- ture lower costs than actively managed funds and are favored by investors who do not believe that a market index can be exceeded over the long term. Also known as TRACKER FUND. See also INDEXING, PASSIVE INVESTMENT STRATEGY.",palgrave,0,56.96,8.9,11.2,10.84,9.5,10.99,8.125,11.33
INDEX FUTURE,"A FUTURES CONTRACT, bought or sold via an EXCHANGE, which references a specific BENCHMARK EQUITY INDEX, index sector, or equity BASKET. See also COMMODITY FUTURE, CURRENCY FUTURE, INTEREST RATE FUTURE.",palgrave,0,30.87,12.7,0,13.85,13.1,11.22,11,14
INDEX-LINKED ANNUITY,An ANNUITY with payments to the BENEFICIARY that are linked to a specified INDEX.,palgrave,0,48.81,9.9,0,9.91,8.5,11.1,9,14.17
INDEX OPTION,"An EXCHANGE-TRADED or OVER-THE-COUNTER OPTION involving a broad STOCK INDEX. VANILLA and COMPLEX OPTIONS can be bought and sold on a broad range of indexes, and are typically con- tracted for CASH SETTLEMENT. See also COMMODITY OPTION, CURRENCY OPTION, EQUITY OPTION, INTEREST RATE OPTION.",palgrave,0,39.63,11.4,13.6,13.1,12.2,10.11,10.66666667,12.24
INDEX REBALANCING,"A periodic process where constituents of a traded or tradable INDEX are added or removed, to ensure that the index remains con- sistent with its definition of eligible constituents. Constituents may change as a result of MERGERS or ACQUISITIONS, increase or decrease in MARKET CAPITALIZATION beyond certain levels, and so forth. INVESTORS that BENCHMARK their PORTFOLIOS to particular indexes must go through simi- lar readjustment exercises in order to minimize TRACKING ERROR.",palgrave,0,30.2,15,14.1,15.15,17.2,12.28,15.66666667,15.71
INDEX TRANCHE,"A form of SINGLE TRANCHE COLLATERALIZED DEBT OBLIGATION that is based on standard quoted CREDIT DEFAULT SWAP INDEXES, including those related to ITRAXX INDEXES.",palgrave,0,30.2,15,0,15.67,17.5,14.04,18,17.93
INDEX TRIGGER,"A conditional event in an INSURANCE-LINKED SECURITY that causes suspension of INTEREST and/or PRINCIPAL when the value of a recognized third-party index used to track RISK exposure or loss experience reaches a certain threshold. See also INDEMNITY TRIGGER, PARAMETRIC TRIGGER.",palgrave,0,17.34,15.8,0,16.24,16.5,12.13,16,19
INDEXATION,The process of linking a particular economic or financial action to a base reference INDEX. Indexation may be used to link payments and receipts to an INFLATION index in order to adjust for rising prices of goods and services.,palgrave,0,51.68,10.9,0,10.39,11,11.08,12.75,13.95
INDEXING,"A PASSIVE INVESTMENT STRATEGY based on replicating the performance of a specific INDEX with a minimum of TRACKING ERROR. See also ACTIVE INVESTMENT STRATEGY, INDEX FUND.",palgrave,0,32.9,11.9,0,13.27,11.2,12.18,10.5,14.43
INDICATED MARKET,"An estimated TRADING range for a SECURITY that has been halted on an EXCHANGE as a result of pending news or an ORDER IMBALANCE. The indicated market is a gauge of where the security may trade once it reopens, although SUPPLY and DEMAND forces ultimately determine the actual starting level.",palgrave,0,37.64,14.2,0,10.74,13.9,10.88,16.5,15.6
INDICATION OF INTEREST (IOI),"Preliminary indication by an INVESTOR of possible interest in purchasing a NEW ISSUE of SECURITIES. Since IOIs aregathered informally while securities are still in the REGISTRATION process, the interest is considered nonbinding; IOIs cannot be regarded as solicitation (by the UNDERWRITER) or commitment (by the investor). IOIs are an essential part of the BOOK-BUILDING process and provide UNDERWRITERS with valu- able input on pricing and demand. Also known as CIRCLE.",palgrave,0,28.33,13.7,15.9,14.67,14.3,10.14,13.75,16.14
INDICATIVE PRICE,See INDICATIVE QUOTE.,palgrave,0,59.97,5.6,0,9.23,9.9,14.31,1.5,14.53
INDICATIVE QUOTE,"A BID and/or OFFER supplied by a DEALER or MARKET MAKER to a BROKER or client that cannot be regarded as certain, but as a guide or estimate for informational purposes. Only when EXECUTION appears more likely to occur will the dealer provide an actionable FIRM QUOTE. Also known as INDICATIVE PRICE. See also QUOTED SPREAD.",palgrave,0,57.27,8.8,10.7,9.27,8.1,9.41,7.75,10.6
INDICATORS,See ECONOMIC .,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1.5,20.8
INDIRECT LOSS,See CONSEQUENTIAL LOSS.,palgrave,0,34.59,9.2,0,13.12,13,9.05,1.5,14.53
INDIRECT SHAREHOLDER,See NOMINEE SHAREHOLDER.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,2.5,27.87
INDIRECT STAKEHOLDERS,"In GOVERNANCE, the parties impacted by a company’s activities and actions in a less obvious, immediate, or direct manner than DIRECT STAKEHOLDERS; this group generally includes REGULATORS, taxpayers, and competitors.",palgrave,0,-1.28,20.9,0,18.11,22.9,13.02,26,26.67
INDUSTRIAL PAPER,COMMERCIAL PAPER issued by a nonfinancial com- pany. See also FINANCIAL PAPER.,palgrave,0,31.55,10.4,0,10.08,7.9,11.83,3.5,12.4
INDUSTRIAL REVENUE BOND,"In the United States, a form of MUNICIPAL BOND issued by a state or local government on behalf of a CORPORATION that is engaged in a development project on behalf of the municipality. Thebond may be backed by real ASSETS, such as property or buildings. Also known as INDUSTRIAL DEVELOPMENT BOND.",palgrave,0,45.76,11.1,12.5,9.74,9.7,9.43,11.16666667,11.51
INELIGIBLE BILL,A BILL OF EXCHANGE that cannot be DISCOUNTED by another BANK or CENTRAL BANK.,palgrave,0,65.73,7.6,0,8.23,7.1,6.59,8,8.46
INFLATION,"The rate of increase in prices of goods and services. Inflation can be measured at the wholesale level through indexes such as the PRODUCER PRICE INDEX, or at the retail level through the CONSUMER PRICE INDEX, RETAIL PRICE INDEX, or HARMONIZED INDEX OF CONSUMER PRICES. See also COST , DEFLATION, DEMAND , NOMINAL INTEREST RATE, REAL INTEREST RATE.",palgrave,0,52.49,10.6,12.5,11.84,12.4,9.08,12.33333333,12.48
INFLATION ACCOUNTING,"An ACCOUNTING approach that incorporates the fact that the value of MONEY changes over time as a result of INFLATION, which impacts the value of ASSETS and LIABILITIES carried on the BALANCE SHEET. Inflation accounting attempts to overcome deficiencies imposed by the simpler HISTORICAL COST ACCOUNTING approach by price-adjusting historical costs relative to a particular INDEX. Also known as PRICE LEVEL ACCOUNTING.",palgrave,0,33.54,13.7,15.5,15.55,15.9,10.27,15,14.09
INFLATION FUTURE,"A FUTURES contract traded on an EXCHANGE that is based on a recognized INFLATION INDEX, such as CONSUMER PRICE INDEX or RETAIL PRICE INDEX.",palgrave,0,55.58,11.5,0,10.57,13.3,10.75,14,12.93
INFLATION HAWK,"In the financial markets, one who has a negative view of INFLATION and its effects on the economy and generally prefers a tight MONETARY POLICY with stable to slightly increasing INTEREST RATES.",palgrave,0,30.54,17,0,12.49,18.5,12.13,25,24.05
INFLATION OPTION,"An OVER-THE-COUNTER OPTION that references an INFLATION index such as the CONSUMER PRICE INDEX or RETAIL PRICE INDEX, or which is traded as a CAP or FLOOR on the individual COUPONS ofANNUAL INFLATION SWAPS.",palgrave,0,36.97,16.6,0,12.14,19.5,10.43,23,18.31
INFLATION RISK,"The risk of loss of value or RETURN on an ASSET due to INFLATION, which reduces purchasing power over the life of the ASSET. Also known as PURCHASING POWER RISK.",palgrave,0,64.71,8,0,7.07,6.8,7.01,8,8.67
INFLATION SPIRAL,"A phenomenon where the rising price of goods and ser- vices leads to hire wages, which in turn leads to higher prices.",palgrave,0,82.99,7.2,0,7.49,10.3,9.75,12,10.62
INFLATION SWAP,"An OVER-THE-COUNTER SWAP involving the exchange of fixed and actual INFLATION rates. Inflation swaps, which are generally struc- tured as ANNUAL S or ZERO COUPON S, often have final MATURITIES of 10+ years. The market convention for infla- tion swap quotations is country-specific: United Kingdom (UK RPI, monthly with a 2-month lag), United States (US CPI, interpolated), France (French CPI, interpolated), Europe (European HICP, monthly with 3-month lag).",palgrave,0,39.97,13.3,15.5,13.81,16.9,12.89,16,15.55
INFLATION TARGET,"A policy used by certain CENTRAL BANKS or monetary authorities that establishes a medium-term range for acceptable INFLATION, and then calibrates MONETARY POLICY to attempt to achieve a result in the targeted range. See also INTEREST RATE POLICY.",palgrave,0,35.27,13.1,0,13.98,14,11.23,15.5,17.07
INFORMATION RATIO,"A measure of the success of an INVESTMENT man- ager computed as the ACTIVE RETURN of a PORTFOLIO divided by ACTIVE RISK. The ratio can be computed ex-ante through a forecast, or ex-post through realized performance.RIGHTS ISSUE.",palgrave,0,52.7,10.5,0,11.72,12.3,11.38,12.75,13.89
INITIAL YIELD,"The YIELD on an ASSET computed at the time of acquisition as the annual INCOME (DIVIDENDS, INTEREST) divided by the initial cost of acquiring the asset. See also YIELD TO MATURITY.",palgrave,0,47.28,10.5,0,9.57,9.1,10.01,11.75,16.52
INLAND BILL,"In the United Kingdom, a BILL OF EXCHANGE that is purely domestic in nature, being drawn and payable inside the country. Also known as AGENCY BILL. See also FOREIGN BILL.",palgrave,0,69.79,6,6.4,7.51,5.7,7.82,4.333333333,5.33
INLAND REVENUE,"See REVENUE AND CUSTOMS, HM.",palgrave,0,83.32,2.9,0,3.8,3.7,13.36,1.5,2
INSIDE DIRECTOR,"A board DIRECTOR who is related to the company and/ or its executives in some manner, such as through previous employment, busi- ness or consulting relationship, or personal relationships. Inside directors are generally not considered to be independent for GOVERNANCE purposes. See also OUTSIDE DIRECTOR.",palgrave,0,22.41,13.9,16.7,14.61,13.3,10.7,13.16666667,19.33
INSIDE INFORMATION,"Any item of information pertinent to a public com- pany that is not in the public domain. Such information must be treated as confidential by those in possession, and in many legal jurisdictions cannot be used to create a profit. Also known as NONPUBLIC INFORMATION, PRICE- SENSITIVE INFORMATION. See also INSIDER TRADING.",palgrave,0,41.36,10.7,12.6,11.18,9.6,9.44,8.25,11.35
INSIDE MARKET,"BIDS and OFFERS between DEALERS expressly for dealer accounts, rather than those intended for BROKERS or their clients.",palgrave,0,53.21,10.3,0,14.67,14.3,12.42,11,11.64
INSIDER DEALING,See INSIDER TRADING.,palgrave,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
INSIDER SYSTEM,"A corporate ownership system where controlling interests (e.g., family stakes, large corporate or BANK shareholdings) limit the ability of outside INVESTORS to influence the GOVERNANCE or management processes. Insiders systems are most commonly found in Continental Europe, Southeast Asia, and parts of Latin America. See also OUTSIDER SYSTEM.",palgrave,0,29.86,13.1,16.3,16.88,15.6,12.98,13.33333333,17.23
INSOLVENCY,"A state where a company’s LIABILITIES exceed the MARKET VALUE of its ASSETS (giving rise to NEGATIVE EQUITY) or when it cannot pay DEBTS falling due in the normal course of business. Insolvency generally leads to filing of VOLUNTARY BANKRUPTCY or INVOLUNTARY BANKRUPTCY. See also DEFAULT, EVENT OF DEFAULT, SOLVENCY.",palgrave,0,37.6,12.2,14.1,12.58,12.1,10.47,12,14.68
INSOLVENCY CLAUSE,"A clause in a REINSURANCE CONTRACT indicating that the REINSURER is still liable for its share of any CLAIM submitted by an INSURED, even if the insured’s primary INSURER (i.e., the CEDING INSURER) is in a state of INSOLVENCY.",palgrave,0,31.89,18.5,0,10.22,20.8,11.64,27.5,22.78
INSOLVENCY RISK,"The RISK that a company will be unable to perform on contractual obligations as a result of impending INSOLVENCY, resulting in a DEFAULT. See also CREDIT DEFAULT RISK.",palgrave,0,40.35,11.1,0,10.49,9.1,10.53,9,12.74
INSTALLMENT CREDIT,"A form of secured or unsecured CREDIT used by con- sumers for the purchase of DURABLE GOODS. The installment credit processallows the consumer to take possession of the goods being acquired immedi- ately, in exchange for a down payment or deposit plus an agreement to pay INTEREST and remaining PRINCIPAL over time. See also HIRE PURCHASE.",palgrave,0,52.49,10.6,12.5,11.49,11.8,9.92,12,13.19
INSTALLMENT OPTION,"An OVER-THE-COUNTER COMPLEX OPTION allow- ing the buyer to pay the seller PREMIUM in installments, rather than upfront, and to cancel the CONTRACT at any time by suspending remaining payments. If the buyer completes all required payments, the seller grants a conventional EUROPEAN OPTION with contract details as specified on the trade date.",palgrave,0,44.58,13.6,0,13.76,17.5,10.91,17.25,15.88
INSTITUTIONAL BROKER,A BROKER that deals strictly with INSTI- TUTIONAL INVESTORS in matching ORDERS.,palgrave,0,50.84,9.2,0,13.73,11.3,14.76,6,8.13
INSTITUTIONAL INVESTOR,"A large, professional INVESTOR, such as aPENSION FUND, INSURANCE FUND, MUTUAL FUND, UNIT INVESTMENT TRUST or HEDGE FUND, which often deals on behalf of a large number of small investors. The largest institutional investors manage significant amounts of CAPITAL and can have a decisive impact on market prices. See also RETAIL INVESTOR.",palgrave,0,53.92,10,12.5,13.11,13,10.87,11.33333333,12.3
INSURABLE RISK,"A RISK event that produces a loss that is definable, fortuit- ous, noncatastrophic, and homogenous, and that can be transferred through payment of a reasonably priced PREMIUM. Risk events that do not feature such characteristics may not always be insurable as the cost of RISK TRANSFER may be prohibitively expensive. See also UN.LIABILITY INSURANCE, PROPERTY AND CASUALTY INSURANCE, PROPERTY AND LIABILITY INSURANCE, and BUSINESS INTERRUPTION INSURANCE. Also known as ASSURANCE, INSURANCE POLICY. See also INDEMNITY CONTRACT, VALUED CONTRACT.",palgrave,0,30.26,12.9,15.6,15.89,14.5,10.48,12.6,15.47
INSURANCE AGENT,"An AGENT that specializes in providing clients with advice on, and access to, various types of INSURANCE products and insurance solutions from one or several INSURERS. An agent that acts only in the interest of one insurer may be considered a captive agent or tied agent.",palgrave,0,48.13,12.3,0,11.03,13.2,10.61,17,17.03
INSURANCE BROKER,"A BROKER that specializes in providing clients with advice on, and access to, various types of INSURANCE products and insurance solutions from a large number of INSURERS, earning a COMMISSION that is often set as a percentage of any PREMIUM earned by the ultimate provider.CATASTROPHE BOND, EXTREME MORTALITY BOND, LIFE ACQUISITION COST SECURITIZATION, MORTALITY BOND, MORTGAGE DEFAULT SECURITIZATION, RESIDUAL VALUE SECURITIZATION, WEATHER BOND.",palgrave,0,-26.32,32.6,0,17.94,38.8,13.78,50.5,34.72
INSURED,"A party in an INSURANCE CONTRACT that transfers, or CEDES, RISK to an INSURER by paying a PREMIUM. The amount of risk the insured cedes is typically a function of its own financial profile and its desire to retain or transfer specific types of risks. See also CEDING COMPANY. Also known as CEDANT (CEDENT).",palgrave,0,66.23,7.4,10.7,8.46,7.4,10.45,7.5,9.84
INSURED PERIL,A PERIL that is specifically covered by an INSURANCE CONTRACT.,palgrave,0,44.41,9.6,0,11.4,8.5,12.03,6,12
INTANGIBLE,See  ASSET.,palgrave,0,35.61,8.8,0,-7.41,0.8,11.63,0,0.8
INTANGIBLE ASSET,"An ASSET with value but without physical character- istics, such as GOODWILL, trademarks, copyrights, or intellectual property. Intangibles are generally heterogeneous across firms, and are typically very ILLIQUID. Also known as INTANGIBLE, INVISIBLE ASSET.",palgrave,0,17.71,13.6,13.6,18.02,15.3,12.09,8,16.28
INTEGRATION,"The third stage in the MONEY LAUNDERING process, in which the proceeds from layered transactions are used to enter into other seemingly common financial operations, such as redepositing layered pro- ceeds into BANKS for further borrowing, lending to shell companies, and so forth. Once integrated, the ability of authorities to trace illicit funds becomes far more difficult.",palgrave,0,34.09,15.6,0,14.68,19.2,11.42,20.75,20.52
INTELLECTUAL PROPERTY,"A form of INTANGIBLE ASSET that typically includes patents, copyrights, brand names, trademarks, service marks, and images, which can be valued, licensed, or sold. In most countries a company’s intellectual property is protected under the law, and any infringement can result in legal action and restitution.",palgrave,0,39.67,13.4,0,14.8,17,12.67,15.5,16.16
INTENSITY MODEL,"A form of CREDIT DEFAULT MODEL that estimates the time of a COUNTERPARTY’S failure with a particular intensity over an uncertain time horizon. Such models have no direct reference to a firm’s value but derive the PROBABILITY of the event as an instantaneous likelihood of DEFAULT. See also STRUCTURAL MODEL, CREDIT MARK-TO-MARKET MODEL.and social progress and supply long-term development finance to member countries, modeled after the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT.",palgrave,0,21.74,16.2,15.9,16.02,18,10.97,17,16.27
INTERBANK MARKET,The general marketplace for the pricing and TRADING of LIABILITIES of large BANKS.,palgrave,0,41.36,10.7,0,12.63,10.4,10.35,8.5,11.35
INTER-DEALER BROKER (IDB),"A BROKER that deals exclusively with DEALERS and market professionals, rather than external clients. IDBs often exe- cute their BROKERAGE business on a “blind” basis in order to preserve confidenti- ality about TRADES and positions in the competitive institutional marketplace.",palgrave,0,25.8,14.6,0,16.53,16.6,12.13,15,18
INTEREST,"(1) The amount paid or earned on DEBT CAPITAL that is bor- rowed or lent, based on a defined  RATE. (2) An ownership stake in a PARTNERSHIP or CORPORATION. See also COMPOUNDING, FUTURE VALUE, PRESENT VALUE, YIELD.",palgrave,0,61.16,9.3,0,8.41,10.2,11.38,11.75,11.72
INTEREST ARBITRAGE,See COVERED .,palgrave,0,35.61,8.8,0,-1.61,5.5,11.63,0.5,0.8
INTEREST COVERAGE TEST,An INTEREST-related financial test per- formed in a COLLATERALIZED DEBT OBLIGATION structure (or other SECURITAZATION) to determine whether the CASH FLOW WATERFALL can make payments to increasingly SUBORDINATED TRANCHES. The form of the test is given by:(Interest due on COLLATERAL pool)/(Interest due on target TRANCHE + Interest due on all tranches ranking SENIOR to the target)The test is considered successful if the interest coverage ratio is greater than or equal to the specified TRIGGER.,palgrave,0,17.51,19.9,0,15.79,24,11.72,28,22.82
INTEREST EXPENSE,"A COST that is incurred for borrowing money via LOANS, DEBT issuance, or certain other LIABILITIES. See also INTEREST INCOME.",palgrave,0,44.41,9.6,0,10.82,8.5,10.45,5.5,10
INTEREST INCOME,INCOME that is generated by lending money or invest- ing in FIXED INCOME SECURITIES. See also INTEREST EXPENSE.,palgrave,0,45.42,9.2,0,10.29,7.7,11.1,5,10.27
INTEREST-ONLY MORTGAGE,"A type of MORTGAGE in which the BORROWER makes monthly payments which include INTEREST but no PRINCIPAL. The principal balance becomes due at MATURITY, implying that the mortgage is a form of BULLET LOAN.",palgrave,0,54.22,9.9,0,11.08,10.8,10.52,11.5,12.68
INTEREST RATE,"The price of DEBT CAPITAL. For a BORROWER, it repre- sents the cost of funds or the cost of borrowing; for INVESTORS or LENDERS it is the earning rate on capital invested or lent. Also known as RATE, RATE OF INTEREST.",palgrave,0,74.49,6.3,11.2,6.2,5.8,8.94,7.833333333,9.38
INTEREST RATE DERIVATIVE,"An EXCHANGE-TRADED DERIVATIVE or OVER-THE-COUNTER DERIVATIVE with an UNDERLYING reference based on short-, medium- or long-term INTEREST RATES. An interest rate deriva- tive may be structured as an INTEREST RATE FUTURE, interest rate OPTION, FORWARD RATE AGREEMENT, INTEREST RATE SWAP, or SWAPTION. See also CAP, CAPLET, CAPTION, COMMODITY DERIVATIVE, CREDIT DERIVATIVE, CURRENCY DERIVATIVE, FLOOR, FLOORLET, FLOORTION, PAYER SWAPTION, RECEIVER SWAPTION.",palgrave,0,17.34,15.8,16.7,18.51,19.6,11.21,15.66666667,12.67
INTEREST RATE DIFFERENTIAL,"The difference between the FORWARD RATES of two CURRENCIES. The interest rate differential can be determined via:rdiff = FP( RB)(100)where FP is the FORWARD POINTS, FXs is the SPOT FOREIGN EXCHANGE rate, t is the time to maturity (days), and RB is the rate basis (e.g., 360, 365 days).",palgrave,0,64.04,10.3,0,9.35,13.8,12.06,15.25,13.77
INTEREST RATE FORWARD,See FORWARD RATE AGREEMENT.,palgrave,0,75.88,3.7,0,10.15,8.8,7.78,1,1.6
INTEREST RATE MARGIN,(1) The SPREAD charged by a BANK or other FINANCIAL INSTITUTION over and above its own cost of funding. (2) SeeNET INTEREST MARGIN.,palgrave,0,65.05,9.9,0,9,12.4,10.96,14.5,14.42
INTEREST RATE OPTION,"An EXCHANGE-TRADED or OVER-THE- COUNTER OPTION involving an INTEREST RATE. VANILLA and COMPLEX OPTIONS can be bought and sold on various BENCHMARK rates, and may also form part of other structured DERIVATIVES, such as SWAPTIONS, CAPS, and FLOORS. See also COMMODITY OPTION, CURRENCY OPTION, EQUITY OPTION, INDEX OPTION.",palgrave,0,46.78,10.7,12.5,13.74,13.3,10.68,10.66666667,12.23
INTEREST RATE PARITY,A theory stating that the INTEREST RATE DIFFERENTIAL between two CURRENCIES approximates the difference between the FORWARD DISCOUNT or FORWARD PREMIUM implied inFOREIGN EXCHANGE RATES.,palgrave,0,12.26,17.8,0,20.14,21.4,11.82,20.5,21.2
INTEREST RATE POLICY,A policy used by certain CENTRAL BANKS or mon- etary authorities that attempts to influence MONEY SUPPLY within a national system by setting the level of INTEREST RATES. This approach implies that properly calibrating rates and the money supply will lead to the proper balance of economic output and INFLATION. See also INFLATION TARGET.,palgrave,0,44.75,11.5,13.6,12.53,12.3,11.25,12.33333333,13.87
INTEREST RATE RISK,The RISK of loss due to an adverse move in the direction of INTEREST RATES. Interest rate risk is a form of DIRECTIONAL RISK.,palgrave,0,76.22,5.6,0,6.02,4.6,7.52,7,8.13
INTERIM ACCOUNTS,See INTERIM FINANCIAL STATEMENTS.,palgrave,0,8.2,13.1,0,18.85,15.9,15.68,3,21.6
INTERIM FINANCIAL STATEMENTS,"A set of FINANCIAL STATEMENTS produced by a company for a specific interim reporting period, which generally occurs quarterly or semiannually. Unlike a company’s annual accounts, the interim statements may not be externally AUDITED. Also known as INTERIM ACCOUNTS.",palgrave,0,15.98,14.3,15.9,14.72,12.3,11.16,11.5,17.51
INTERLOCKING DIRECTORATE,See INTERLOCKING DIRECTORSHIP.,palgrave,0,-50.02,21,0,26.63,24,14.31,2.5,27.87
INTERLOCKING DIRECTORSHIP,"A practice where executives or DIRECTORS from one firm serve as DIRECTORS on another firm’s board, and vice-versa. From a GOVERNANCE perspective this may create conflicts of interest and lack of independence. Also known as INTERLOCKING DIRECTORATE. See also FILZ.",palgrave,0,44.41,9.6,12.6,12.85,9.9,10.84,6.75,12
INTERMARKET SPREAD,"A strategy that seeks to take advantage of price dif- ferences between two unique, though often related, markets or ASSETS; the SPREAD attempts to capitalize on movements in the spread, or BASIS, rather than the absolute direction or VOLATILITY, of the references.",palgrave,0,28.85,19.7,0,13.3,24.6,11.73,29,23.47
INTERMARKET SWEEP ORDER,"In the United States, under REGULATION NMS, a LIMIT ORDER designated for automatic EXECUTION in a specified venue even when a better quote is available from another venue. In order to adhere to regulations, the order must be concurrently sent to the venues with better prices but is not subject to auto-routing.",palgrave,0,36.63,14.6,0,11.32,15.1,9.78,17.5,15.78
INTERMEDIARY,"An institution that stands between two clients, or a cli- ent and a market, in the provision of financial services, including advice, EXECUTION, DEPOSIT-taking, and financing. Also known as FINANCIAL .",palgrave,0,39.33,11.5,0,13.27,12.9,10.7,11.75,14
INTERNAL AUDIT,"A form of AUDIT performed within a company or other organization by its own AUDITORS. The purpose of such an audit is to verify the status of internal controls, rather than issue an AUDIT OPINION (which requires the use of an external auditor). See also EXTERNAL AUDIT.element of PILLAR II of the BASLE II framework, in which a participating BANK creates appropriate GOVERNANCE and processes for reviewing all of its RISKS and its available CAPITAL resources, develops appropriate strategies, conducts STRESS TESTS, and documents its processes. These may be reviewed by the relevant national regulator through the SUPERVISORY REVIEW AND EVALUATION PROCESS.",palgrave,0,28.67,15.6,17.1,13.87,16.9,11.4,18.25,17.65
INTERNAL CAPITAL GENERATION,"The amount of CAPITAL a company generates through EARNINGS and allocates to its RETAINED EARNINGS account.t =1 (1 + IRR)twhere CFt is a cash flow in period t, N is the number of periods. See alsoPROFITABILITY INDEX.RECEIPT.ies of standards and interpretations promulgated by the INTERNATIONAL ACCOUNTING STANDARDS BOARD that address key ACCOUNTING issues, and which are increasingly adopted as a global standard. IFRS has adopted the standards previously set forth via the INTERNATIONAL ACCOUNTING STANDARDS.",palgrave,0,21.02,16.5,16.7,16.08,18.5,11.26,18.16666667,15.83
INTERNATIONAL MONETARY FUND (IMF),"A supranational organization created in 1946 to assist in maintaining financial stability and administer the fixed FOREIGN EXCHANGE RATE regime that existed until 1971. The IMF now focuses on granting LOANS, managing external DEBT programs (via the Supplemental Reserve Facility and Country Credit Line program), and creating stability plans for DEBTOR nations. The organization is financed via subscrip- tions from member countries.",palgrave,0,25.08,14.9,16.3,16.77,17.2,13.83,15.66666667,17.31
(IOSCO),"An agency, formed in 1983, comprised of national SECURITIES REGULATORS, that addresses issues related to consistent REGULATION and surveillance of securities markets and enforcement of securities laws.",palgrave,0,1.77,19.7,0,19.73,22.6,14.33,24.5,24.13
INTERPOLATION,"A mathematical method for computing missing or unob- served INTEREST RATES along the YIELD CURVE. A point can be interpolated using LINEAR , EXPONENTIAL , or CUBIC SPLINE . Also known as YIELD CURVE .",palgrave,0,44.1,9.7,10.5,11.17,8.9,11.79,6.5,10.57
INTERPOSITIONING,"The act of placing a BROKER or SPECIALIST between two PRINCIPALS to facilitate a TRADE. Interpositioning is illegal when a bro- ker intercedes simply to generate additional COMMISSIONS, or when a special- ist intercedes to take one side of the TRADE for proprietary purposes. See alsoAFFIRMATIVE OBLIGATION, NEGATIVE OBLIGATION.",palgrave,0,29.55,13.2,16.3,14.73,13.6,11.21,13.5,17.95
INTRADAY LIMIT,(1) A price band on an ASSET traded on an EXCHANGE that cannot be exceeded. (2) A RISK limit granted by a BANK or other finan- cial institution to a COUNTERPARTY or to its own proprietary TRADINGoperation that can be used during a single trading day. In most instances any resulting risk exposure must be reduced or flattened by the close of business.,palgrave,0,47.96,14.4,0,9.18,15.9,10.21,19.25,17.04
INTRODUCING BROKER,"An INTERMEDIARY standing between a client and a FUTURES COMMISSION MERCHANT (FCM) that develops and executes client strategies. Since the introducing broker cannot hold customer funds, it must deal through an FCM, which has proper authority.",palgrave,0,44.75,11.5,0,14.67,14.5,10.67,12,13.87
INVENTORY FINANCING,"A WORKING CAPITAL LOAN used to finance the purchase of INVENTORY that a company ultimately uses for production and sales to customers. The proceeds of the inventory sale are typically used to repay the loan, making the transaction self-liquidating. Inventory finan- cing may be secured or unsecured; if secured, the loan may include a charge over specific inventory or a FLOATING LIEN applicable to inventories in general.",palgrave,0,31.92,14.3,16.3,13.12,14.7,10.16,16.5,14.89
INVENTORY TURNOVER,"A measure of a company’s ability to sell INVENTORIES of finished goods, typically calculated as:where CGS is the COST OF GOODS SOLD, and INVAVG is average inventory on hand during the period.A high turnover ratio is generally an indication of efficiency in managing the inventory process.PERPETUAL FLOATING RATE NOTE, RANGE FLOATING RATE NOTE.",palgrave,0,-7.71,27.5,0,14.7,30.9,12.52,40.5,31.01
INVERTED YIELD CURVE,See NEGATIVE YIELD CURVE.,palgrave,0,75.88,3.7,0,7.25,6.5,11.73,2,11.6
INVESTING CASH FLOW,"The portion of the STATEMENT OF CASH FLOWS depicting the flows impacting a firm’s ASSET and INVESTMENT accounts, including additions to, or disposals of, property, plant and equipment, MARKETABLE SECURITIES, and other corporate or SUBSIDIARY interests. See also FINANCING CASH FLOW, OPERATING CASH FLOW.",palgrave,0,32.22,14.2,0,15.78,17.4,12.26,17,19.71
INVESTMENT,An allocation of CAPITAL by an INVESTOR in real or finan- cial ASSETS in expectation of a fair RETURN.,palgrave,0,43.73,11.9,0,7.78,8.9,9.57,12.5,11.81
INVESTMENT ADVISOR,"A FIDUCIARY that acts as an AGENT for an invest- ing client, ensuring all business is transacted in the best interests of that client. In most jurisdictions investment advisors must be registered with REGULATORS and disclose any conflicts of interest they may have in providing particular investment recommendations. See also BROKER.",palgrave,0,37.3,12.3,15.5,14.03,13.2,10.67,13.16666667,17
INVESTMENT ANALYST,"An analyst working for a BANK or other FINANCIAL INSTITUTION that is responsible for analyzing the financial state and pros- pects of a company that is an ISSUER of EQUITY or DEBT, with a view toward developing a recommendation on whether to buy, sell, or retain a position in the issuer’s SECURITIES. Investment analysts rely on FINANCIAL ANALYSIS, FUNDAMENTAL ANALYSIS, and/or TECHNICAL ANALYSIS to develop their recommendations. See also CREDIT ANALYST, EQUITY ANALYST.into BANK HOLDING COMPANIES. See also BOUTIQUE, MERCHANT BANK,UNIVERSAL BANK.",palgrave,0,16.83,16,18,14.74,15.7,10.82,17,17.47
INVESTMENT BANKER,"A BANKER working at an INVESTMENT BANK, MERCHANT BANK, or BOUTIQUE that is primarily involved in CORPORATE FINANCE, MERGERS and ACQUISITIONS, or CAPITAL MARKETS financings. See also BANKER, FINANCIER, PRIVATE BANKER.",palgrave,0,38.82,11.7,0,15.72,14.6,11.54,10.75,12.65
INVESTMENT COMPANY,"A registered company that raises CAPITAL from INVESTORS by selling SHARES or units, and invests in a range of ASSETS on a LEVERAGED of unleveraged basis. In the United States, MUTUAL FUNDS (OPEN-END FUNDS) and UNIT INVESTMENT TRUSTS (CLOSED-END FUNDS) are the most popular forms of investment companies; in the United Kingdom, UNIT TRUSTS and INVESTMENT TRUSTS perform a similar function.",palgrave,0,40.52,15.2,0,13.36,19.2,11.36,20.75,16.79
INVESTMENT GRADE,"A CREDIT RATING designation applied to any ISSUER of SECURITIES that is rated between AAA and BBB– by Standard and Poor’s, or Aaa and Baa3 by Moody’s Investors Services. Investment grade companies have the strongest financial profiles and the lowest likelihood of encounter- ing FINANCIAL DISTRESS leading to DEFAULT. See also SUB.",palgrave,0,45.46,11.2,11.9,13.11,12.6,13,11,11.54
INVESTMENT INCOME,"Any form of INCOME generated from INVEST- MENT activities, which may include DIVIDENDS, INTEREST, and/or CAPITAL GAINS.",palgrave,0,28.84,13.5,0,15.54,15.6,11.91,13.5,16.21
INVESTMENT LETTER,"In the United States, a document between the buyer and seller of a PRIVATE PLACEMENT indicating that SECURITIES will not be offered for resale to the general public for a specific period of time; once the time period passes, they may be sold to a limited population under Rule 144A of the SECURITIES AND EXCHANGE COMMISSION.",palgrave,0,6.18,26.3,0,11.04,29.2,10.93,39,28.11
INVESTMENT MANAGER,"See PORTFOLIO MANAGER.insurance, guaranteed investment contracts, and fixed annuities, the INSURER bears the MARKET RISK of the cash value investment (providing the INSURED with a de-facto GUARANTEE), while with variable life insurance and variable annuities, the insured bears the risk.",palgrave,0,13.96,21.3,0,17.82,27.8,11.94,32,24
INVESTMENT PREMIUM,The additional amount an INVESTOR pays over the INVESTMENT VALUE of a CONVERTIBLE BOND to reflect the EQUITY OPTION features of the convertible; the premium is typically expressed as a percentage of investment value:⎠where PCB is the price of the convertible bond and IV is investment value. Also known as BOND PREMIUM. See also CONVERSION PREMIUM.,palgrave,0,44.03,11.8,15.5,12.53,12.5,9.36,14,13.19
INVESTMENT RATIO,"In INSURANCE, a measure of the extent to which an INSURER’s gains come from INVESTMENT, rather than UNDERWRITING, activities, typically computed as:where Inv is gain on PORTFOLIO investments and Pr is PREMIUM earned. The higher the ratio, the greater the insurer’s reliance on investment incomerather than core insurance underwriting.",palgrave,0,29.69,15.2,0,15.9,18.3,11.62,19.75,18.78
INVESTMENT TRUST,"(1) In the United Kingdom, a PUBLIC LIMITED COMPANY traded on an EXCHANGE that raises CAPITAL through the place- ment of COMMON STOCK and DEBENTURES and invests the funds in a range of financial ASSETS. Since investment trusts are permitted to issue debentures they can invest on a LEVERAGED basis, magnifying potential gains and losses.(2)In the United States, see CLOSED-END FUND. (1,2) See also INVESTMENT COMPANY, MUTUAL FUND.",palgrave,0,36.97,16.6,0,12.83,20.7,11.59,22.5,17.72
INVESTOR,"Any party that provides CAPITAL in expectation of a future RETURN. See also INSTITUTIONAL , INVESTMENT, RETAIL .",palgrave,0,12.6,13.5,0,13.35,10.5,9.95,5.5,10.7
INVISIBLE ASSET,See INTANGIBLE ASSET.,palgrave,0,9.21,12.7,0,9.23,9.9,14.31,1.5,14.53
INVISIBLES,"International TRADE involving services rather than goods; invisible EXPORTS include sales of services to nonresidents, while invisible IMPORTS are based on the purchase of services from nonresidents. Key items within the invisibles account include transportation, banking, INSURANCE, ACCOUNTING, legal services, medical practices, and hotel/leisure services. Invisibles are a key element of a country’s BALANCE OF TRADE and BALANCE OF PAYMENTS accounts. Also known as INVISIBLE BALANCE. See alsoVISIBLE.",palgrave,0,28.84,13.5,14.2,18.44,17.3,10.98,12.25,13.27
INVOICE PRICE,"The total amount the buyer of a BOND pays the seller; in most markets this is the bond’s current market value plus ACCRUED INTEREST (i.e., the DIRTY PRICE).",palgrave,0,59.98,11.8,0,8.3,14.3,11.79,15,12.63
INVOLUNTARY BANKRUPTCY,"A process where CREDITORS file a peti- tion to force a DEBTOR into BANKRUPTCY after the debtor commits an “act of bankruptcy,” generally a DEFAULT on a payment due. If the court accepts the petition the proceedings follow those established for LIQUIDATION or REORGANIZATION under VOLUNTARY BANKRUPTCY.",palgrave,0,39.16,13.6,0,13.99,15.9,10.51,16.75,17.06
IOI,See INDICATION OF INTEREST.,palgrave,0,8.2,13.1,0,10.15,8.8,11.73,3,21.6
IOSCO,See INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS.,palgrave,0,-69.98,24.5,0,28.47,22.4,14.46,6,29.07
IPO,See INITIAL PUBLIC OFFERING.,palgrave,0,33.58,9.6,0,11.6,10,11.73,2,11.6
IRA,See INDIVIDUAL RETIREMENT ACCOUNT.,palgrave,0,-34.11,19,0,20.3,17.1,11.73,3,21.6
IRB APPROACH,See INTERNAL RATINGS-BASED APPROACH.,palgrave,0,8.2,13.1,0,21.75,19.4,19.62,3,11.6
IRISH ASSET COVERED SECURITIES,"In Ireland, a form of COVERED BOND backed by MORTGAGES and issued by designated CREDIT institutions.",palgrave,0,46.78,10.7,0,12.53,11.6,13.31,9,11.4
IRR,See INTERNAL RATE OF RETURN.,palgrave,0,66.4,5.2,0,4.96,3.7,7.04,2.5,10
IRRATIONAL OPTION,"An OPTION embedded in a STRUCTURED NOTE, such as CONVERTIBLE BOND or MORTGAGE-BACKED SECURITY, that is not EXERCISED when it is IN-THE-MONEY, or which is exercised when it is OUT-OF-THE-MONEY. The reasons for irrational exercise may relate to over- arching macroeconomic or idiosyncratic factors that override pure economic rationale.",palgrave,0,38.15,14,0,15.44,18.3,11.3,18.75,17.96
IRREDEEMABLE SECURITY,"A SECURITY without a final MATURITY date, such as a PERPETUAL BOND, PERPETUAL DEBENTURE, or a CONSOL. This includes undated securities that are redeemable at the option of the BOR- ROWER/ISSUER, but in practice are allowed to remain outstanding.",palgrave,0,34.76,13.3,0,12.3,13.3,11.89,13.75,13.95
IRREVOCABLE LETTER OF CREDIT,"A LETTER OF CREDIT that can only be cancelled by agreement of both parties (i.e., the DRAWER and the BANK).The facility remains in place until mutual cancellation or final MATURITY. See also CONFIRMED LETTER OF CREDIT, DIRECT PAY LETTER OF CREDIT, STANDBY LETTER OF CREDIT, TRANSFERABLE LETTER OF CREDIT.",palgrave,0,38.15,14,0,12.02,15.4,9.36,14.75,13.88
IRS,See INTERNAL REVENUE SERVICE.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,2,11.6
ISA,See INDIVIDUAL SAVINGS ACCOUNT.,palgrave,0,-8.73,15.5,0,15.95,13.5,7.78,2,11.6
ISA MORTGAGE,"In the United Kingdom, a form of INTEREST-ONLY MORTGAGE where the BORROWER makes monthly INTEREST payments but no PRINCIPAL payments. In lieu of a principal payment, the borrower makes a DEPOSIT into an INDIVIDUAL SAVINGS ACCOUNT (ISA), the balance of which is used to repay outstanding principal at MATURITY of the mortgage.",palgrave,0,36.63,14.6,0,12.71,16.4,8.87,18,15.02
ISIN,See INTERNATIONAL SECURITIES IDENTIFICATION NUMBER.,palgrave,0,-85.89,26.5,0,31.64,25.3,13.36,4.5,26
ISMA,See INTERNATIONAL SECURITIES MARKETS ASSOCIATION.,palgrave,0,-85.89,26.5,0,29.32,23.5,16.52,4.5,26
ISSUE DATE,The date on a SECURITY which is used in the computation ofACCRUED INTEREST.,palgrave,0,49.82,9.5,0,9.5,7.9,9.14,8.5,14.43
ISSUE PRICE,"The price at which a NEW ISSUE of SECURITIES is offered by a SYNDICATE or UNDERWRITING GROUP to the market. The price is gener- ally established between the underwriters and the ISSUER based on analysis of INDICATIONS OF INTEREST, COMPARABLES, and general market conditions. Also known as OFFER PRICE.",palgrave,0,38.01,12,14.1,11.66,11,9.6,11.83333333,14.68
ISSUER,Any corporate or sovereign entity that floats SECURITIES in theCAPITAL MARKETS.,palgrave,0,9.55,14.7,0,17.38,13.6,14.23,10.5,22.58
JANUARY EFFECT,"An observable condition in the STOCK market that appears to reflect rallies, particularly in SMALL CAP and MID-CAP STOCKS, at the beginning of each year; some of the buying support may come from a reversal of positions that are sold in December to crystallize any TAX losses to offset CAPITAL GAINS.",palgrave,0,19.71,23.2,0,11.33,27.1,11.12,34.5,25.11
JENSEN INDEX,"A common measure of the RISK-adjusted performance of an INVESTMENT PORTFOLIO that compares the average RETURN on the port- folio with the risk of the portfolio, as measured through BETA. The Jensen index, which uses the SECURITY MARKET LINE as a BENCHMARK, can be computed via:JI = E(rP) – (E(rf ) + (E(rm ) – E(rf )) βp)where E(rP) is an estimate of the expected return of the target portfolio, E(rf) is the RISK-FREE RATE, E(rm) is the expected average return of the market port- folio, and βp is the beta of the target portfolio. See also TREYNOR INDEX, SHARPE INDEX.Additional reference: Jensen (1969).",palgrave,0,29.52,17.3,16.7,10.51,19,10.7,21.66666667,17.64
JGB,See JAPANESE GOVERNMENT BOND.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,3,11.6
JOBBER,"An individual or institution that takes positions in SECURITIES, generally on a very short-term basis, in expectation of generatingprofits. A jobber may or may not also be an authorized MARKET MAKER. See also JOBBING.",palgrave,0,26.17,12.4,12.5,11.93,9.7,10.23,7.333333333,13.93
JOBBING,The practice of continuously buying and selling SECURITIES or other ASSETS in an attempt to make small profits. See alsoJOBBER.,palgrave,0,25.8,14.6,0,13.46,14,11.73,13,14
JOINT AND SEVERAL,"A legal condition where multiple GUARANTORS, BOR- ROWERS, or obligors are liable for the entire amount of an agreed LIABILITY should the other party (or parties) fail to perform. Any party to a joint and several transaction can be sued for nonpayment. See also SEVERAL BUT NOT JOINT.",palgrave,0,55.24,9.5,12.5,9.97,9.7,10.02,10.66666667,11.4
JOINT BOND,"A BOND where payment of INTEREST and/or PRINCIPAL is the legal responsibility of more than one party, such as an issuing SUBSIDIARY and its parent company.than individually. Such organizations were popular during the seventeenth J century but are now relatively uncommon. See also CORPORATION, PUBLIC LIMITED COMPANY.",palgrave,0,21.7,14.1,15.9,15.02,13.6,10.13,12.83333333,17.34
JOURNAL ENTRY,The recording of financial data related to a particular transaction. In a DOUBLE ENTRY ACCOUNTING system the journal entry involves both a DEBIT and a CREDIT.,palgrave,0,41.36,10.7,0,11.06,9.2,12.18,8,12.89
JUMBO PFANDBRIEFE,"Any PFANDBRIEFE issue that has a minimum size of EUR1 billion, designed to ensure there is enough volume to promote liquidSECONDARY TRADING.",palgrave,0,49.15,11.9,0,13.58,15.1,12.62,13,12.44
JUMP PROCESS,"A mathematical process used to describe the movement of ASSET prices that are impacted by sudden, discontinuous moves, such as those generated by EVENT RISKS. Certain OPTION pricing models utilize a jump process, rather than a continuous STOCHASTIC PROCESS, to estimate values. See also JUMP-TO-DEFAULT.",palgrave,0,47.79,10.3,12.5,14.38,13.2,11.4,10.16666667,12.22
JUMP-TO-DEFAULT,"A JUMP PROCESS that is used in the CREDIT markets to reflect the fact that a company may DEFAULT on its DEBT instantaneously, causing a sharp and rapid downward jump in the price of its LIABILITIES to default-based levels.",palgrave,0,40.35,17.3,0,10.22,20.3,10.83,23.5,17.65
JUNIOR DEBT,See SUBORDINATED DEBT.,palgrave,0,9.21,12.7,0,11.15,11.5,14.31,1.5,14.53
JUNIOR SUBORDINATED DEBT,"The lowest ranking form of JUNIOR DEBT. Junior subordinated claims receive payment after junior INVESTORS or CREDITORS, but before EQUITY investors.",palgrave,0,35.44,10.9,0,15.75,12.6,10.17,5.75,9.91
JUNK BOND,See HIGH-YIELD BOND.,palgrave,0,93.81,0.9,0,5.35,8.3,14.31,0.5,1.2
JV,See JOINT VENTURE.,palgrave,0,93.81,0.9,0,3.43,5.2,14.31,0.5,1.2
KABUSHIKI KAISHI (KK),"In Japan, a PUBLIC COMPANY.",palgrave,0,66.4,5.2,0,2.64,2.7,7.04,2.5,2
KAFFIRS,"The COMMON STOCK of South African gold mining com-panies listed and traded in the UK stock market on a direct basis, and in the USmarket via AMERICAN DEPOSITORY RECEIPTS and AMERICAN DEPOSITORYSHARES. See also KANGAROOS.",palgrave,0,36.79,12.5,0,12.58,12.3,11.27,12.25,11.57
KANGAROOS,The COMMON STOCK of Australian companies listedand traded on the LONDON STOCK EXCHANGE. See also KAFFIRS.,palgrave,0,63.36,6.4,0,12.25,9.1,10.94,3.5,5.7
KAPPA,See VEGA.,palgrave,0,77.91,2.9,0,-10.31,-1.7,11.63,0,0.8
KEEPWELL AGREEMENT,A CONTRACT or GUARANTEE between a PARENTcompany or HOLDING COMPANY and its AFFILIATE or SUBSIDIARY agreeingto maintain a certain level of ownership and/or financial SOLVENCY for astated period of time.,palgrave,0,7.19,19.7,0,16.2,20.6,11.97,25,24
KEIDANREN,"The Japan Business Federation, created in 2002 fromthe merger of the Japan Federation of Economic Organizations and the JapanFederation of Employers’ Associations, which acts as a representative forcompanies, industrial associations, and regional economic organizations onimportant business-related matters. Also known as NIPPON KEIDANREN.",palgrave,0,-25.99,22.1,0,22.91,22.5,12.2,19.5,21.73
KEIRETSU,"A Japanese business conglomerate, generally comprised ofaseries of companies with cross-SHAREHOLDINGS and business relationships but no central core company. A main BANK generally serves as a provider of funding and de-facto corporate monitor. The keiretsu replaced the centralized ZAIBATSU conglomerate that existed until the mid-1940s. See also CHAEBOL.",palgrave,0,33.92,11.5,14.2,18.08,14.8,12.78,8.75,13.97
KEOGH PLAN,"In the United States, a TAX-deferred PENSION account that can be established by self-employed individuals or small, unincorporated busi- nesses. Funds in the account are taxable upon withdrawal, but generally occur when the BENEFICIAL OWNER is retired, and thus in a lower tax bracket. See also INDIVIDUAL RETIREMENT ACCOUNT.",palgrave,0,29.55,13.2,13,14.03,13.3,10.89,11.16666667,13.05
KEY MAN RISK,The RISK arising from the departure of a person or team that is critically responsible for a vital management or business function within a company. Excessive reliance on such an individual(s) can lead to loss of REVENUES and/or an increase in PROCESS RISK.,palgrave,0,41.19,12.9,0,11.02,12.9,10.58,14.25,14.18
KEYNESIAN ECONOMICS,"A theory of MACROECONOMICS developed by economist John Keynes in the twentieth century that supports the notion of government intervention in economic progress (via FISCAL POLICY and MONETARY POLICY) in order to overcome any suboptimal decisions taken by the private sector. See also CLASSICAL ECONOMICS, KEYNESIAN FORMULA.Additional reference: Keynes (1936).",palgrave,0,12.26,17.8,0,17.93,20.3,14.03,22,24.4
KEYNESIAN FORMULA,"A general MACROECONOMIC equation developed by economist John Keynes, which is given as:where Y is GROSS DOMESTIC PRODUCT (or AGGREGATE DEMAND), C is consumption (or personal income less TAXES less amount not saved), I is INVESTMENT, G is government spending, X is EXPORTS, M is IMPORTS.",palgrave,0,16.33,22.4,0,12.49,26.3,14.16,33,25.36
KICK-IN OPTION,See REVERSE KNOCK-IN OPTION.,palgrave,0,75.88,3.7,0,10.15,10,11.73,1,1.6
KICK-OUT OPTION,See REVERSE KNOCK-OUT OPTION.,palgrave,0,50.5,7.2,0,11.6,11.2,11.73,1,1.6
KICKER,"An EQUITY stake offered by a company to a BANK provid- ing LOAN funding or an INVESTOR supplying CAPITAL through a NOTE or BOND. Although the compensation can take different forms, in practice it is often provided in the form of a WARRANT, generating gains if the company’s STOCK price rises. Also known as EQUITY , SWEETENER. See alsoCARROT EQUITY.",palgrave,0,47.99,10.2,13.4,9.85,9.1,9.99,10.75,11.34
KILLER BEES,Investment bankers hired by a company to help defend against a HOSTILE TAKEOVER.,palgrave,0,66.74,7.2,0,11.7,9.7,10.35,7.5,8.28
KINKED YIELD CURVE,"A TERM STRUCTURE where short-term INTEREST RATES and long-term interest rates are approximately equal, but medium-term rates are higher. See also FLAT YIELD CURVE, NEGATIVE YIELD CURVE, POSITIVE YIELD CURVE, YIELD CURVE.",palgrave,0,63.7,8.4,0,15.08,14.4,8.87,10.5,11.4
KITING,See CHECK .,palgrave,0,77.91,2.9,0,-7.41,0.8,0.1,0.5,0.8
KIWI,"(1) A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in New Zealand dollars in the New Zealand markets by a foreign company or BANK.(2) The New Zealand dollar.KKSee KABUSHIKI KAISHI.",palgrave,0,49.49,13.8,0,10.75,17.3,11.44,17,13.33
KNOCK-IN OPTION,"A COMPLEX OPTION that leads to the creation of a EUROPEAN OPTION if the price of the UNDERLYING market reference moves above or below a predefined BARRIER level. See also BARRIER OPTION, DOWN AND IN OPTION, UP AND IN OPTION.",palgrave,0,51.18,11.1,0,8.99,10.4,8.58,13,13
KNOCK-OUT OPTION,"A COMPLEX OPTION that extinguishes a EUROPEAN OPTION if the price of the UNDERLYING reference moves above/below a pre- defined BARRIER level. See also BARRIER OPTION, DOWN AND OUT OPTION, UP AND OUT OPTION.",palgrave,0,45.76,11.1,0,10.9,11,9.12,12,12.68
KONDRATIEFF WAVE,"An observation put forth by Russian economist Nikolai Kondratieff that BUSINESS CYCLES are of a long-term nature, span- ning 50 years or more, during which time they alternate between periods of growth and contraction. Also known as SUPERCYCLE.",palgrave,0,52.19,10.7,0,13.4,13.7,11.23,13,14.97
KRUGERRAND,"A coin minted by the South African government which con- tains 1 troy ounce of GOLD, commonly purchased by INVESTORS seeking physical gold.1where N is the number of observations, xi is an observation, μ is the mean, σ is the STANDARD DEVIATION.See also EXCESS KURTOSIS, LOGNORMAL DISTRIBUTION, NORMAL DISTRI-BUTION, SKEWNESS",palgrave,0,12.27,24,0,14.23,29.5,15.27,35,26.4
L,"A broad measure of liquid money supply, generally defined as M3 plusGOVERNMENT BILLS, COMMERCIAL PAPER, BANKER’S ACCEPTANCES, and EUROCURRENCY DEPOSITS of residents.",palgrave,0,15.31,16.6,0,19.38,20.4,14.06,17,19.71
LABOR CODETERMINATION,"A legal rule, found primarily in Continental European nations, requiring a certain number of labor representatives to be elected to a company’s BOARD OF DIRECTORS in order to give employees proper input into corporate affairs.",palgrave,0,10.57,20.5,0,14.63,21.9,12.14,26.5,24.29
LADDERED PORTFOLIO,"An INVESTMENT PORTFOLIO comprised of NOTES and BONDS with short-, medium- and long-term MATURITIES, generally in approximately equal amounts. Such a portfolio provides the INVESTOR with exposure to the entire YIELD CURVE, generating INTEREST and PRINCIPAL redemptions on a steady basis over time. See also BARBELL PORTFOLIO.",palgrave,0,38.62,11.8,14.6,15.6,14.2,11.81,11.83333333,14.79
LADDERING,An illegal practice where the UNDERWRITER of a NEW ISSUE of COMMON STOCK allocates SHARES to an INVESTOR if the investor agrees to purchase additional shares in the SECONDARY MARKET (which will help support the price and generate additional COMMISSIONS). See alsoSPINNING.,palgrave,0,20.39,20.8,0,14.93,25.5,11.73,29,23.47
LAG,"The time period between the occurrence of a loss, or filing of a CLAIM by the INSURED, and the receipt of a SETTLEMENT from the INSURER.",palgrave,0,53.55,12.3,0,7.09,11.7,9.18,17,15.02
LAMBDA,See VEGA.,palgrave,0,77.91,2.9,0,-10.31,-1.7,11.63,0,0.8
LAND BANK,"A specialized banking institution dedicated to financing of agricultural development, often with a long-term horizon. Also known asAGRICULTURAL BANK.",palgrave,0,11.07,14.1,0,19.69,15.8,11.59,7.25,18.54
LAPSE RATIO,"In INSURANCE, a measure indicating the degree to which new policies are written and existing policies are renewed, generally computedby comparing the percentage of policies in force at the start of the year versusthose outstanding at the end of the year. A rising lapse ratio means policies arerolling off faster than new policies are being written and existing policies arebeing renewed.",palgrave,0,40.52,15.2,0,14.11,19.2,9.81,20.25,18.1
LAPSED OPTION,"An IN-THE-MONEY OPTION that has expired and which hasnot been EXERCISED, resulting in an economic loss for the holder of the option.",palgrave,0,57.61,10.7,0,10.91,13.4,9.03,14,14.25
LARGE CAP STOCK,"The COMMON STOCK of a company with a largeMARKET CAPITALIZATION, generally in excess of $5 billion. See alsoMICROSTOCK, MID-CAP STOCK.",palgrave,0,27.49,11.9,0,12.85,10.7,11.24,6.5,12
LARGE-DEDUCTIBLE POLICY,"A LOSS-SENSITIVE INSURANCE CONT-RACT that features a DEDUCTIBLE that is much larger than one foundon a standard fixed PREMIUM, full INSURANCE contract. The INSUREDretains a much larger amount of RISK and pays the INSURER a smallerPREMIUM.",palgrave,0,53.21,10.3,0,14.32,14.1,11.99,12.5,13.87
LARGE LINE CAPACITY,The ability for an INSURER or REINSURER toUNDERWRITE a large RISK exposure under a single policy. Insurers and rein-surers with strong financial standing and significant CAPITAL resources aregenerally able to offer a greater amount of large line capacity without seekingREINSURANCE and RETROCESSION.,palgrave,0,16.32,16.2,0,17.93,18,11.82,17.5,19.83
LARGE LOSS PRINCIPLE,"In INSURANCE, the concept of transferring highseverity/low frequency losses to an INSURER. Assuming fair PREMIUM pri-cing, the principle is often considered to be a prudent and cost-effective formof corporate RISK MANAGEMENT, as catastrophic loss events are very difficultto predict and quantify and can create significant FINANCIAL DISTRESS in theabsence of proper LOSS FINANCING.",palgrave,0,10.74,18.3,0,18.16,21.1,13.89,22.75,24.94
LASPEYRES’ INDEX,See BASE WEIGHTED INDEX.,palgrave,0,75.88,3.7,0,5.8,5.3,11.73,1,1.6
LAST IN FIRST OUT (LIFO),"An INVENTORY management and ACCOUN-TING approach where the last raw materials or work-in-progress inventoryacquired for production of final goods are used first. Costs and inventoryvaluation are thus based on the latest, and then earliest, items in inventory,regardless of whether this corresponds to the actual physical movement inthe inventory. See also FIRST IN FIRST OUT (FIFO).",palgrave,0,27.52,14,15.5,16.13,15.8,11.72,13.83333333,15.32
LAST SALE,See LAST TRADE.,palgrave,0,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
LAST TRADE,"The latest TRADE in a particular ASSET or SECURITY, whichyields the most current price at which identical positions can be valued. Alsoknown as LAST SALE.",palgrave,0,58.79,8.2,0,11.3,9.3,10.57,7.75,13
LAST TRADING DAY,The final day on which TRADING in a specificEXCHANGE-TRADED DERIVATIVE CONTRACT can occur.,palgrave,0,41.36,10.7,0,15.76,13.3,12.78,7.5,11.35
LATE TRADING,An illegal practice where clients enter MUTUAL FUND pur-chase ORDERS after the official market close in order to take advantage of latemarket-moving events.,palgrave,0,31.21,14.6,0,16.08,17.5,12.33,16.5,16.16
LATENT LIQUIDITY,"Blocks of STOCK held by INSTITUTIONAL INVESTORS in their PORTFOLIOS that may be available for sale, but which are not activelyadvertised or marketed. Latent liquidity may be brought to market through the efforts of BROKERS, who communicate with investors and ascertain their will- ingness to sell portions of their positions.",palgrave,0,46.1,13,0,14.45,17.1,9.93,17,17.2
LAUNDERING,See MONEY .,palgrave,0,35.61,8.8,0,-7.41,0.8,0.1,0.5,0.8
LAYERING,"The second stage in the MONEY LAUNDERING process, in which cash deposited during the PLACEMENT phase is used in a series of complex financial transactions in order to separate illicit funds from their real source and obscure any AUDIT trail. Layering can include wiring cash to other insti- tutions, purchasing BONDS, STOCKS, or other INVESTMENTS, or funding shell companies.",palgrave,0,41.53,14.8,0,13.7,18.6,12.06,19.75,17.9
LDC,See LESSER DEVELOPED COUNTRY.,palgrave,0,33.58,9.6,0,13.05,11.2,11.73,2,11.6
LEAD,"The first UNDERWRITER or SYNDICATE on an INSURANCE POLICY underwritten via LLOYD’S OF LONDON, and the party responsible for estab- lishing the PREMIUM, issuing the policy, and collecting premiums.",palgrave,0,8.2,19.3,0,15.91,20.3,13.24,25.5,25.39
LEAD INDEPENDENT DIRECTOR,"A DIRECTOR that serves as leader of the other independent members of the BOARD OF DIRECTORS. The role can be found in a SINGLE BOARD SYSTEM when the roles of the chairman and CHIEFEXECUTIVE OFFICER are combined, and is intended to reinforce external scrutiny of management affairs. Also known as PRESIDING DIRECTOR. See also EXECUTIVE DIRECTOR, NONEXECUTIVE DIRECTOR.",palgrave,0,39.84,11.3,14.6,12.52,11,9.8,11.25,14.08
LEAGUE TABLE,A tabulation of deals underwritten or advisories completed by financial intermediaries on behalf of companies and sovereigns.,palgrave,0,3.46,17,0,19.25,17.3,13.77,16.5,25.62
LEASE PURCHASE AGREEMENT,A form of LEASE where payments made by the LESSEE are allocated to the eventual purchase of the ASSET.,palgrave,0,69.11,8.3,0,8.07,8.9,10.4,11.5,11.81
LEASEBACK,See SALE AND .,palgrave,0,93.81,0.9,0,-6.26,-2.7,0.15,1,1.2
LEG,"One component of a multicomponent financial transaction, often associated with structured DERIVATIVES, STRUCTURED NOTES, and other complex dealings.",palgrave,0,-6.02,18.6,0,23.37,21.9,13.3,15,20.53
LEGAL MECHANISM CONTROL,"A structure or process where effective con- trol of a company is obtained through legal or structural mechanisms (e.g., a pyramid holding company) rather than the purchase of a majority share of COMMON STOCK. See also MAJORITY CONTROL, MANAGEMENT CONTROL, MINORITY CONTROL, TOTAL CONTROL, VOTING TRUST CONTROL.",palgrave,0,39.16,13.6,0,14.1,16.8,11.86,15.75,13.66
LEGAL OWNER,"A person or institution that holds legal TITLE to an ASSET or INVESTMENT and can arrange for its sale or transfer, but who may not be entitled to right of use (i.e., it may lack a BENEFICIAL INTEREST). See alsoBENEFICIAL OWNER.",palgrave,0,50.67,11.3,0,8.07,10.3,9.27,13.25,14.05
LEGAL RESERVES,"(1) RESERVES held by BANKS in support of demand and time DEPOSIT balances, generally necessary in order to comply with RESERVE REQUIREMENTS imposed by a governing CENTRAL BANK or monetary authority. (2) Reserves established by a company to cover possible legal contin- gencies or lawsuits.",palgrave,0,8.88,23.2,0,14.17,26.7,13.59,31.5,24.22
LEGAL RISK,"The RISK of loss arising from failures in the legal process, including unenforceability of CONTRACTS or lack of appropriate documen- tation related to business arrangements such as GUARANTEES, MASTER AGREEMENTS, or LOAN agreements.",palgrave,0,21.06,18.5,0,17.42,23.5,12.93,23.5,21.68
LEGAL TENDER,MONEY that must be accepted in the settlement of amounts due.,palgrave,0,68.77,6.4,0,7.93,5.9,7.05,6.5,8.04
LEGGING,"(1) Establishing or unwinding one of two segments of a STRADDLE, or STRANGLE, or INDEX ARBITRAGE program, or other complex TRADE, thus creating an exposure to the direction of the SECURITY or mar- ket until the accompanying position is added or the second LEG is unwound.(2) The process of slowly accumulating a position in a security.",palgrave,0,-2.29,27.5,0,11.45,30.1,12.9,40,28.83
LENDER,"An individual or institution that provides funds to a BORROWER, either informally or formally, and with or without COLLATERAL. In exchange for providing funds, the lender generally expects recompense, which is levied via periodic INTEREST payments. See also CREDITOR.",palgrave,0,24.44,13.1,14.6,14.83,12.7,11.97,10.5,17.51
LENDING,"The act of granting a LOAN to a customer. Lending is typically undertaken by BANKS and nonbank FINANCIAL INSTITUTIONS, and gener- ates CREDIT RISK.",palgrave,0,50.84,9.2,0,10.83,8.9,12.13,7,11.47
LENDING LIMIT,See LEGAL .,palgrave,0,35.61,8.8,0,-7.41,0.8,11.63,0.5,0.8
LEPO,See LOW EXERCISE PRICE OPTION.,palgrave,0,66.4,5.2,0,7.28,5.6,10.2,2.5,10
LESSEE,"A party in a LEASE transaction that contracts to lease an ASSET from another party, paying periodic payments in exchange for use of the asset dur- ing a stated period. See also LESSOR.",palgrave,0,54.73,9.7,0,8.41,8.5,10.2,10.25,10.24
LESSER DEVELOPED COUNTRY (LDC),"A country that features an economy that is gradually developing and strengthening, but lacks a sufficiently robustindustrial production base to contribute in a meaningful way to national income and EXPORTS. LDCs may impose certain TRADE barriers and/or EXCHANGE CONTROLS in order to protect their economies from excessive IMPORTS or speculative inflows. As a result of nascent market conduits and often weak financial standing, LDCs are typically characterized by a high degree of SOVEREIGN RISK.",palgrave,0,21.02,16.5,16.7,15.73,17.8,11.69,18,19.07
LESSOR,"A party in a LEASE transaction that leases an ASSET to another party, receiving periodic payments in exchange for providing use of the asset during a stated period. See also LESSEE.",palgrave,0,47.28,10.5,0,10.09,9.3,10.01,10.75,12.65
LETTER OF COMFORT,See COMFORT LETTER.,palgrave,0,59.97,5.6,0,5.35,6.8,0.15,0.5,1.2
LETTRES DE GAGE,"In Luxembourg, a form of COVERED BOND backed by a BANK’s MORTGAGES. See also CEDULAS HIPOTECARIAS, HYPOTHEKENPFANDBRIEFE, IRISH ASSET COVERED SECURITIES, JUMBO PFANDBRIEFE, OBLIGATIONS FONCIERES, OFFENTLICHE PFANDBRIEFE.",palgrave,0,49.31,9.7,0,22.09,19.2,14.25,7.75,11.33
LEVEL PREMIUM,"In INSURANCE, a PREMIUM that remains unchanged over time, even if the amount of RISK the INSURER assumes from the INSURED increases.",palgrave,0,57.61,10.7,0,11.2,13.4,11.19,15,16.07
LEVERAGE,"The degree to which a company uses on- and OFF-BALANCE SHEET DEBT to fund its operations. Use of leverage magnifies the poten- tial RETURNS and RISKS of an INVESTMENT or corporate strategy. In gen- eral, the greater the amount of leverage, the riskier the financial standing of the company and the greater the expectation of higher returns by suppli- ers of CAPITAL. Also known as FINANCIAL , GEARING. See alsoDEBT SERVICE, INTEREST COVERAGE, LEVERAGE RATIOS, MODIGLIANI- MILLER THEORY, OPM, OPERATING LEVERAGE.Additional reference: Miller and Modigliani (1958).",palgrave,0,45.76,11.1,14,13.4,13.5,11.54,12.2,12.92
LEVERAGE ARBITRAGE,An ARBITRAGE scheme intended to take advan- tage of a misperception that creates a gap between a company’s CREDIT RATING and its actual financial activities/condition. This generally occurs when a highly rated company uses its strong rating to borrow a significant amount of DEBT at favorable rates and then invest in a range of speculativeASSETS.,palgrave,0,26.64,16.4,0,13.47,17.4,12.75,19.75,19.73
LEVERAGE EFFECT,"The degree to which the use of DEBT on a company’s BALANCE SHEET impacts its EARNINGS PER SHARE and its DIVIDENDPAYOUT. Greater use of leverage magnifies earnings and losses, and its effects can be estimated via:⎝where EPS is EARNINGS PER SHARE, EBIT is EARNINGS BEFORE INTEREST AND TAXES, Δ is the change in the respective variable.",palgrave,0,51.52,13,0,11.2,15.9,11.23,17,15.49
LEVERAGE RATIOS,"Measures that reflect the degree to which a company uses DEBT in its operations. Common ratios include DEBT TO EQUITY, DEBT TO ASSETS, and CONTINGENTS TO ASSETS.",palgrave,0,49.31,9.7,0,10.26,8.9,11.32,7.75,9.84
LEVERAGED UNIT TRUST,"A UNIT TRUST that is permitted to use LEVERAGE, either through the issuance of DEBT or the use of DERIVATIVES, in order to enhance INVESTOR RETURNS. The RISK profile of the leveraged unit trust is greater than a standard unit trust, with the potential of producing greater returns and greater losses. See also LEVERAGED EXCHANGE-TRADED FUND.",palgrave,0,60.95,9.4,10.5,11.6,12,9.92,11,10.34
LGD,See LOSS-GIVEN DEFAULT.,palgrave,0,34.59,9.2,0,11.15,13,9.05,1.5,1.2
LIABILITY,"A legal OBLIGATION to make a payment or repay a DEBT; a liabil- ity is often used to fund the purchase of a productive ASSET. Common liabil- ities include ACCOUNTS PAYABLE, COMMERCIAL PAPER, DEPOSITS, LOANS, NOTES, BONDS, and certain deferred TAXES and charges and OFF-BALANCE SHEET items. An increase in liabilities results in a CREDIT, while a decrease leads to a DEBIT.",palgrave,0,50.46,11.4,11.9,10.5,12.5,12.56,12.66666667,11.51
LIABILITY INSURANCE,"An INSURANCE CONTRACT providing an INSURED with coverage for losses sustained from payments it makes related to bodily injury or property damage. Coverage can be created for both per- sonal and business exposures, including comprehensive personal liabil- ity, COMMERCIAL GENERAL LIABILITY, employers liability, and workers compensation.",palgrave,0,-2.64,19.3,0,18.69,19.9,14.05,21,23.11
LIABILITY MANAGEMENT,"The general practice of using a mix of funding instruments and markets, and INTEREST RATE and FOREIGN EXCHANGE HEDGES, in order to manage the LIQUIDITY RISK and MARKET RISK inherent in the corporate BALANCE SHEET.",palgrave,0,27.49,18.1,0,12.49,20.1,11.69,23.5,19.71
LIABILITY SWAP,An OVER-THE-COUNTER INTEREST RATE SWAP or CURRENCY SWAP that exchanges COUPONS or CURRENCIES from an under- lying LIABILITY in order to create a synthetic liability that meets a company’s preferred profile. See also ASSET SWAP.,palgrave,0,36.79,12.5,0,13.57,13.3,10.82,12.75,13.86
LIAR LOAN,"A residential MORTGAGE that is granted by a BORROWER to a LENDER on the basis of little or no documentation proving INCOME and NET WORTH, and which is therefore subject to falsification. Liar loans have historically been part of the SUBPRIME MORTGAGE and ALT-A mortgage sec- tor. See also NINJA LOAN.",palgrave,0,54.22,9.9,10.5,10.15,10.1,10.05,10.16666667,10.72
LICENSED CARRIER,See ADMITTED INSURER.,palgrave,0,9.21,12.7,0,9.23,9.9,14.31,2.5,27.87
LIEN,See SECURED INTEREST.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
LIEN STATUS,"The seniority of a LOAN backed by property (or other ASSETS) in the event of BORROWER DEFAULT and forced liquidation. The first lien holder has first claim on the RESIDUAL VALUE of the asset, and is followed by the second lien holder and other junior lien holders.CATASTROPHE BOND, MORTGAGE DEFAULT SECURITIZATION, RESIDUAL VALUE SECURITIZATION, WEATHER BOND.",palgrave,0,26.14,16.6,0,13.58,18.1,10.38,18.5,16.2
LIFE ANNUITY,An ANNUITY that stops payments to the ANNUITANT or BENEFICIARY once the person covered is deceased. See also CERTAIN ANNUITY.,palgrave,0,35.95,10.7,0,11.4,8.5,9.66,6,10
LIFE ASSURANCE,"In the United Kingdom, LIFE INSURANCE.",palgrave,0,56.93,6.8,0,9.15,7.5,6.57,3,9.07
LIFE INSURANCE,"An INSURANCE CONTRACT providing for a payment to a named BENEFICIARY in the event the INSURED dies; life insurance is avail- able in many forms, including term life, whole life, ordinary life, and group life, each with different characteristics related to coverage, costs, and savings. See also LIFE ASSURANCE, LIFE REINSURANCE.",palgrave,0,45.59,13.2,0,13.29,17,10.16,18.75,18.04
LIFE REINSURANCE,A REINSURANCE agreement where an INSURER cedes LIFE INSURANCE policies to a REINSURER individually (through FACULTATIVE REINSURANCE) or as a PORTFOLIO (TREATY REINSURANCE).,palgrave,0,14.29,17,0,19.56,20.8,12.33,20.5,21.37
LIFEBOAT,A rescue fund established by a CENTRAL BANK or monet- ary authority to ensure BANKS have access to sufficient CAPITAL in the event of a FINANCIAL CRISIS.,palgrave,0,44.07,13.8,0,9.87,14.2,13.16,18.5,16.73
LIFETIME FLOOR,An INTEREST RATE FLOOR embedded in a long-term CONTRACT that limits the lowest rate a BORROWER may pay on an ADJUSTABLE RATE MORTGAGE. The lifetime floor prevents the LENDER’s mortgage rate from falling below some predefined level in a falling rate environment.,palgrave,0,58.62,10.3,0,12.71,13.8,9.94,13,13.16
LIFT THE OFFER,See TAKE THE OFFER.,palgrave,0,92.8,1.3,0,-1.46,-0.7,0.2,1,1.6
LIFTING A LEG,The process of LEGGING out of a transaction.,palgrave,0,80.28,4.1,0,6.45,4.4,9.95,4,8.2
LIMEAN,See LONDON INTERBANK MEAN.,palgrave,0,50.5,7.2,0,8.7,7.7,11.73,2,11.6
LIMIT BUY ORDER,"An ORDER to buy SECURITIES if a target level is reached, with no assurance the order can be filled at the limit price. See also LIMIT SELL ORDER.",palgrave,0,65.73,7.6,0,5.97,5.4,7.71,7,8.46
LIMIT ON CLOSE ORDER,"An ORDER to buy or sell SECURITIES at the mar- ket close, but only if the closing price is better than the limit specified.",palgrave,0,64.04,10.3,0,6.45,10.2,8.77,14,12.93
LIMIT ORDER,"An ORDER for the purchase or sale of a SECURITY at a spe- cific price limit. If the price is not attained the order expires unfilled or it remains open until the client instructs otherwise. See also MARKET ORDER, STOP ORDER, TIME ORDER.",palgrave,0,65.42,7.7,7.8,7.47,7,8.39,6.833333333,6.65
LIMIT PRICE,An EXECUTION price on an ORDER the reflects a specific BID or OFFER. See also MARKET PRICE.,palgrave,0,62.85,6.6,0,5.53,3.6,6.84,4.25,8.11
LIMIT SELL ORDER,"An order to sell SECURITIES if a target level is reached, with no assurance the order can be filled at the LIMIT PRICE. See also LIMIT BUY ORDER.",palgrave,0,65.73,7.6,0,5.97,5.4,7.71,7,8.46
LIMITED (LTD),"In the United Kingdom and former colonies, as well as Japan and the United States, a LIMITED COMPANY that is INCORPORATED and thus has LIMITED LIABILITY.",palgrave,0,36.63,14.6,0,10.91,14.7,9.18,18,15.02
LIMITED COMPANY,"In the United Kingdom, a form of private LIMITED LIABILITY COMPANY where the LIABILITY of participants for the company’s outstanding DEBTS is limited to their INVESTMENT in fully paid SHARES. See also LIMITED, PUBLIC .UNLIMITED LIABILITY.",palgrave,0,10.91,16.2,0,14.32,14.1,8.92,15,14.98
LIMITED MARKET,Any marketplace that is either ILLIQUID or where the number of active buyers is very small.,palgrave,0,72.16,7.2,0,9.63,8.9,8.38,8,8.9
LIMITED PRICE INDEX SWAP,A form of INFLATION SWAP used in the United Kingdom that features a CAP and/or a FLOOR to limit the inflation- based payout to one or both parties.,palgrave,0,59.98,11.8,0,7.26,12.8,8.97,16,12.63
LIMITED RECOURSE LOAN,See PARTIAL RECOURSE LOAN.,palgrave,0,75.88,3.7,0,8.7,7.7,11.73,1,1.6
LINE,"A general class of INSURANCE offered by INSURERS, typically grouped into one of five types: LIFE INSURANCE, health insurance, ANNUITY, PROPERTY AND CASUALTY INSURANCE, and LIABILITY INSURANCE. See also  LIMIT.",palgrave,0,13.95,15,0,15.19,14.2,10.17,13.5,15.33
LINE LIMIT,"The maximum LINE of INSURANCE an INSURER will UNDERWRITE without seeking excess protection via REINSURANCE. The size of the line limit depends on an insurer’s financial resources and expertise, its ability to diversify and reinsure, and its willingness to assume RISK of a par- ticular type and magnitude.",palgrave,0,30.2,15,0,13.58,15.9,13.05,19,21.27
LINE OF CREDIT,See REVOLVING CREDIT FACILITY.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,3,21.6
LINEAR INSTRUMENT,"A financial ASSET or transaction, such as a COMMON STOCK, FORWARD, or FUTURE that provides a unit payoff for a unit move in the underlying asset. Linear instruments feature no CONVEXITY. See alsoNONLINEAR INSTRUMENT.",palgrave,0,43.09,10.1,11.9,11.75,9.6,11.16,7,12.76
LINEAR INTERPOLATION,"A technique of INTERPOLATION that uses a straight line to connect two points on a YIELD CURVE. The missing point can be computed by first determining the fractional number of days:where ti is the number of days required from known point t1 to the target date, t2 is the number of days at the end of the period.And then determining the interpolated rate:St = S1(1 − λ) + s2 ( λ)where S1 is the first known SPOT RATE, S2 is the second known spot rate. Also known as STRAIGHT LINE INTERPOLATION. See also CUBIC SPLINE INTERPOLATION, EXPONENTIAL INTERPOLATION.",palgrave,0,47.32,12.6,12.6,10.04,13.2,9.14,15,12.47
LINEAR PAYOFF,"A linear and constant economic gain or loss that may be expected under a conventional DERIVATIVE (e.g., FUTURE or FORWARD) for a given range of market prices. For every unit move up or down in the market price, the gain or loss is a linear function of that unit move. See alsoASYMMETRIC PAYOFF, NONLINEAR PAYOFF, SYMMETRIC PAYOFF.",palgrave,0,60.65,9.5,11.9,9.46,10.7,9.29,11.83333333,12.51
LINKER,"In the United Kingdom, an INFLATION-LINKED SECURITY.",palgrave,0,22.07,11.9,0,15.67,13,10.75,4.5,14.23
LIQUID,"(1) At a corporate level, the state of possessing sufficient cash to meet obligations. (2) At a market level, the state of having sufficient trans- action volume to permit TRADING. See also IL,  ASSETS, ITY.",palgrave,0,53.71,10.1,0,8.93,10.4,10.82,11.25,11.57
LIQUID RATIO,See QUICK RATIO.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
LIQUIDATED DAMAGES,"DAMAGES awarded to a plaintiff that can be quan- tified very precisely, e.g., through ex-ante definition in a CONTRACT. See alsoSTATUTORY DAMAGES, UNLIQUIDATED DAMAGES.",palgrave,0,42.38,10.3,0,14.72,13,13.44,7,11.47
LIQUIDATING DIVIDEND,"A DIVIDEND, payable by a company to SHAREHOLDERS, that represents a final return of CAPITAL. The dividend is paid when a company is halting its operations and no longer requires capital.",palgrave,0,47.28,10.5,0,10.84,10,8.99,12.25,11.36
LIQUIDATION,"(1) A state of corporate BANKRUPTCY that culminates in the disposal of ASSETS and payment of any RESIDUAL VALUE to CREDITORS; liquidation generally occurs when efforts at REORGANIZATION have failed.(2)The sale of assets by a company to cover an expected or unexpected pay- ment, or the sale of COLLATERAL held by a creditor to cover funds due from the BORROWER/DEBTOR. (1) Also known as WINDING-UP. (1) See alsoCREDITORS’ VOLUNTARY LIQUIDATION, VOLUNTARY LIQUIDATION.",palgrave,0,-26.99,34.9,0,14.35,40.5,12.91,56,37.69
LIQUIDATION PERIOD,"(1) In a VALUE-AT-RISK model, the assumed hori- zon over which a PORTFOLIO of ASSETS can be sold in order to neutralize RISK and recognize gains or losses. In most models a single liquidation period is applied to all asset classes, regardless of the inherent level of risk or LIQUIDITY.(2)In the INSURANCE sector, the period during which a previously funded ANNUITY provides CASH FLOWS to the ANNUITANT. (1) Also known asHOLDING PERIOD.",palgrave,0,26.48,18.5,0,11.44,20.4,12.22,25.5,21.62
LIQUIDATOR,"An AGENT, typically appointed by a court, that is responsible for carrying out the LIQUIDATION of a company in BANKRUPTCY.",palgrave,0,25.8,14.6,0,11.72,12.8,10.16,17,20
LIQUIDITY FACILITY,"A CREDIT line provided by a BANK to a customer that is used to cover short-term funding requirements arising from CASH FLOW gaps. Such facilities may be drawn on a revolving basis, and are generally repayable within 1 year.",palgrave,0,60.14,9.7,0,9.63,10.6,10.27,12.25,12.93
LIQUIDITY PREFERENCE THEORY,"A theory of INTEREST RATES indicating that INVESTORS will expect a higher return for ASSETS they prefer not to hold, leading to the creation of a LIQUIDITY PREMIUM (which is often expressed as the difference between FORWARD RATES and expected future SPOT RATES). The theory also allows for the fact that investor expectations help determine the shape of the YIELD CURVE, as set forth via the EXPECTATIONS THEORY. See also MARKET SEGMENTATION THEORY.Additional references: Hicks (1946); Lutz and Lutz (1951); Meiselman (1962).",palgrave,0,35.31,15.1,15.9,13.23,17.7,10.77,18.66666667,16.29
LIQUIDITY PREMIUM,The additional SPREAD that INVESTORS demand for holding ASSETS they prefer not to hold (including those that may be risky or ILLIQUID). Under the LIQUIDITY PREFERENCE THEORY the liquidity pre- mium is also an increasing function of expectations regarding rising INTEREST RATES.,palgrave,0,33.24,13.8,0,14.62,15.5,12.2,15.5,16.97
LIQUIDITY RISK,"The RISK of being unable to raise funding or sell or pledge ASSETS when needed without incurring a significant cost. Liquidity risk, whichis a form of FINANCIAL RISK, is commonly segregated into three components: ASSET LIQUIDITY RISK, FUNDING LIQUIDITY RISK, and ASSET-FUNDING LIQUIDITY RISK. See also ENDOGENOUS LIQUIDITY, EXOGENOUS LIQUIDITY, LIQUIDITY, LIQUIDITY SPIRAL.",palgrave,0,11.21,16.1,16.7,16.24,15.9,9.88,14.5,13.87
LIQUIDITY SPIRAL,"A self-fulfilling cycle where concerns about a com- pany’s LIQUIDITY cause CREDITORS to cancel CREDIT facilities, which leads to a repeated cycle of ASSET sales, CREDIT RATING downgrades, and further credit facility cancellations. The cycle continues until the company is able to secure sufficient funding or enters a stage of FINANCIAL DISTRESS. See alsoLIQUIDITY RISK.",palgrave,0,27.52,14,14.6,15.2,14.8,12.3,13.16666667,15.32
LIQUIDITY WAREHOUSE,"A PORTFOLIO of unencumbered INVESTMENT GRADE SECURITIES that a company maintains in order to manage LIQUIDITY requirements that cannot be adequately met via existing unsecured funding. When additional cash is required a company can pledge or sell the unencum- bered ASSETS from the warehouse at, or near, carrying value. The liquidity warehouse generally comprises of short- and medium-term securities with sta- ble prices and strong CREDIT RATINGS.",palgrave,0,23.46,15.5,17.1,15.38,16.7,11.58,17.16666667,17.28
LISTED COMPANY,"A company that is listed and traded on a STOCK EXCHANGE. See also PRIVATE COMPANY, PUBLIC COMPANY.",palgrave,0,54.39,7.8,0,7.62,5.5,6.84,4.75,3.4
LISTED DERIVATIVE,See EXCHANGE-TRADED DERIVATIVE.,palgrave,0,-50.02,21,0,26.63,25.6,14.31,2.5,14.53
LISTING REQUIREMENTS,"The specific rules that a company must fulfill in order to become a LISTED COMPANY with its SHARES traded on a STOCK EXCHANGE. Such requirements vary by national jurisdiction and exchange, but generally relate to the disclosure of full and complete FINANCIAL STATEMENTS on a regular basis, and the maintenance of a particular ASSET value.",palgrave,0,35.1,15.2,0,12.54,16.6,11.03,19.75,18.27
LITIGATION,"The process of taking legal action in a court of law, with a plain- tiff bringing suit against a defendant.",palgrave,0,76.56,7.6,0,7.37,9.3,9.37,11,10
LLC,See LIMITED LIABILITY COMPANY.,palgrave,0,-51.03,21.4,0,14.5,12.4,11.73,4,21.6
LLOYD’S BROKER,A BROKER that specializes in placing INSURANCE with LLOYD’S SYNDICATES operating in the LLOYD’S OF LONDON marketplace.,palgrave,0,28.84,13.5,0,16.88,15.3,12.84,13.5,18.56
LLOYD’S OF LONDON,"A London-based INSURANCE marketplace comprised of LLOYD’s SYNDICATES (i.e., a group of NAMES) that UNDERWRITE a broadrange of insurance, REINSURANCE, and RETROCESSION covers. Lloyd’s itself does not write any insurance, though it maintains a backup RESERVE fund to cover any possible crisis situation. See also LLOYD’S BROKER.",palgrave,0,38.62,11.8,14.1,15.48,14.5,11.47,11.5,12.24
LLOYD’S SYNDICATE,A group of NAMES within LLOYD’S OF LONDON that specializes in UNDERWRITING specific types of RISKS.,palgrave,0,55.24,9.5,0,12.53,11.3,13.31,11,13.9
LLP,See LIMITED LIABILITY PARTNERSHIP.,palgrave,0,-51.03,21.4,0,20.3,17.1,15.68,4,31.6
LOAD,"(1) In INVESTMENT MANAGEMENT, the sales COMMISSION charged to INVESTORS buying certain MUTUAL FUNDS. (2) In INSURANCE, see EXPENSE ING, PREMIUM ING. (1) See also  FUND.",palgrave,0,36.63,14.6,0,12.02,17.3,14.64,19,19.63
LOAD FUND,"A MUTUAL FUND that levies an upfront sales charge on INVESTORS; sales COMMISSIONS are generally added to the NET ASSET VALUE to generate the total purchase price. Despite the sales charge, load funds are not always more expensive than NO-S, which may have higher management and/or exit fees.",palgrave,0,55.58,11.5,0,11.67,14.5,11.41,15,14.6
LOAN LOSS PROVISION,A noncash expense reflected through a BANK’s INCOME STATEMENT that is used to increase the LOAN LOSS RESERVE estab- lished for NONPERFORMING LOANS.,palgrave,0,56.59,11.1,0,14.05,15.6,12.33,13.5,12.68
LOAN LOSS RESERVE,"A CREDIT RESERVE established by a BANK to cover the potential charge-off of NONPERFORMING LOANS (i.e., those that are classed as past-due or nonaccrual). The reserve is typically shown as a CONTRA ACCOUNT on the ASSET portion of the BALANCE SHEET,and is increased through LOAN LOSS PROVISIONS taken via the INCOME STATEMENT.",palgrave,0,45.09,13.4,0,12.36,16.3,10.7,16.5,15.02
LOAN PARTICIPATION,See PARTICIPATION LOAN.,palgrave,0,9.21,12.7,0,13.12,13,9.05,1.5,14.53
LOAN SALE,"The process of selling a portion of a SYNDICATED LOAN between BANKS, or to INVESTORS. Although loans are not traded in a SECONDARY MARKET as actively as SECURITIES, the loan sale makes it possible to create a certain degree of LIQUIDITY.",palgrave,0,50.67,11.3,0,10.04,11.4,10.82,12.75,12.1
LOANBACK,"In the United Kingdom, a transaction where an individual bor- rows against funds accumulated in a PENSION account, generally on a short- term basis.",palgrave,0,30.2,15,0,12.02,15.1,10.75,16,16.27
LOBSTER TRAP,An ANTITAKEOVER DEFENSE provision that prevents an INVESTOR (or RAIDER) holding more than 10% of a company’s COMMON STOCK from exchanging any CONVERTIBLE BONDS into voting class stock. See also SCORCHED EARTH DEFENSES.,palgrave,0,54.73,9.7,0,14.21,13.4,11.63,11.25,13.87
LOCAL,An individual TRADING on an EXCHANGE using personalCAPITAL.,palgrave,0,-12.79,17,0,17.36,13.2,11.93,5,13.2
LOCAL AUTHORITY BILL,"In the United Kingdom, a BILL OF EXCHANGE that is drawn on a local government authority.",palgrave,0,55.24,9.5,0,8.18,8,7.39,9,8.9
LOCAL AUTHORITY BOND,"In the United Kingdom, a BOND that is issued by a local government authority. Such bonds are typically issued with fixed COUPONS and medium-term MATURITIES.",palgrave,0,50.33,9.3,0,11.53,9.7,10.57,7.25,9.8
LOCKBOX,A service provided by a BANK to corporate customers where it receives payments by mail into a post box which it collects several times per day; the payments are deposited by the bank immediately so that the corporate customers can begin earning INTEREST immediately.,palgrave,0,18.36,21.6,0,12.72,24.4,10.13,30,22.15
LOCKED MARKET,"A temporary market phenomenon where the BID and OFFER for an ASSET are precisely equal. A locked market, which gener- ally lasts only for short periods of time, can appear when there is little news driving the market and participants lack strong directional views, or when extremely competitive forces on both sides of the market draw the bid and offer SPREAD in.See RATE LOCK.(1) A time period during which the NOTIONALPRINCIPAL of an AMORTIZING SWAP or ACCRETING SWAP cannot be",palgrave,0,30.88,18.9,0,11.67,22.1,10.36,26,22
LOCKUP,"A time period in a financial transaction that must pass before an action can occur or be taken such as REDEMPTION, LIQUIDATION orCONVERSION.",palgrave,0,31.21,14.6,0,12.25,14.2,10.27,17.5,19.63
LOCKUP OPTION,"An OPTION, granted to a friendly WHITE KNIGHT by a company that is a potential TAKEOVER TARGET, which allows the friendly party to purchase the company’s most valuable ASSETS (i.e., the CROWN JEWELS) in the event of a HOSTILE TAKEOVER.",palgrave,0,39.34,17.7,0,10.57,21.6,11.15,23,18
LOGNORMAL DISTRIBUTION,"A single-tailed statistical distribution of a RANDOM VARIABLE where the logarithm is normally distributed, i.e., for any normally distributed variable x, y = exp(x) features a lognormal distribution. Financial ASSETS are often modeled using the lognormal distribution. The probability density function is given as:1where x is an observation, μ is the MEAN, σ is the STANDARD DEVIATION. See also KURTOSIS, NORMAL DISTRIBUTION, SKEWNESS.",palgrave,0,21.9,14.1,15.6,15.66,14.7,12.3,12.625,13.94
LOMBARD RATE,"(1) A short-term INTEREST RATE used in the German market, generally applied to LOANS collateralized by SECURITIES. (2) The interest rate charged by BANKS in Europe against SECURITIES pledged asCOLLATERAL.",palgrave,0,15.65,18.5,0,15.62,21,12.49,22,18.67
LONDON BULLION MARKET,"The official marketplace for the wholesale TRADING of GOLD and silver and the establishment of prices, conducted by DEALERS (e.g., major international BANKS and bullion specialists) under the general auspices of the BANK OF ENGLAND. See also GOLD FIXING.",palgrave,0,43.22,12.1,0,13.63,14.4,11.49,13.25,13.95
LONDON INTERBANK BID (LIBID),"The BID side of the London INTERBANK DEPOSIT market, or the INTEREST RATE that a prime BANK must pay for inter- bank funds. See also LONDON INTERBANK MEAN, LONDON INTERBANK OFFERED RATE.INTEREST RATE at which a BANK will DEPOSIT or accept interbank funds. See also LONDON INTERBANK BID, LONDON INTERBANK OFFERED RATE.",palgrave,0,53.92,10,12.5,11.19,11.4,6.62,11.33333333,8.46
LONG,See  POSITION.,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1,20.8
LONG AND WRONG,A LONG POSITION (purchased or owned) that loses money as a result of sudden or steady price declines.,palgrave,0,70.13,8,0,8.52,9.6,10.67,9,9.42
LONG ARBITRAGE,"An ARBITRAGE strategy employed in the FUTURES mar- ket when the FORWARD RATE is lower than the futures rate, indicating that the cash market is overpriced when compared with the futures market; the strategy calls for selling the UNDERLYING ASSET and buying futures. See alsoSHORT ARBITRAGE.",palgrave,0,48.13,12.3,0,13.29,15.2,10.27,14.5,12.68
LONG BOND,"In the United States, the 30-year TREASURY BOND issued by the government.",palgrave,0,76.22,5.6,0,10.37,8.9,9.5,6,4.8
LONG CARRY,"The CARRY generated by a LONG position, defined for FIXED INCOME positions as daily COUPON income less daily financing costs; daily price AMORTIZATION/ACCRETION can also be included. See also SHORT CARRY.",palgrave,0,38.82,11.7,0,14.03,12.7,10.01,10.75,15.23
LONG-DATED FORWARD,Any FORWARD transaction with a final MATURITY in excess of 1 year.,palgrave,0,50.84,9.2,0,7.93,6.1,10.81,7,11.47
LONG END,"The long MATURITIES of the YIELD CURVE, generally taken to mean those in excess of seven to ten years. See also BELLY OF THE CURVE, SHORT END.",palgrave,0,74.69,6.2,0,6.2,5.6,7.81,6.75,8.36
LONG HEDGE,"A LONG POSITION in a DERIVATIVE CONTRACT or financial instrument that is used to protect a natural SHORT POSITION. As rising prices cause a loss on the natural short position, the long hedge produces an offset- ting gain; the reverse occurs with falling prices. See also SHORT HEDGE.",palgrave,0,63.7,8.4,12.5,10.21,9.7,9.04,10.66666667,10.57
LONG ONLY,A common HEDGE FUND or INVESTMENT strategy where a manager creates a PORTFOLIO of LONG positions in an EQUITY market. The strategy only permits the manager to express views on stocks that are believed to be undervalued. A long only portfolio generates SYSTEMATIC RISK and IDIOSYNCRATIC RISK. See also MARKET NEUTRAL.,palgrave,0,41.56,10.6,13.4,11.64,9.5,10.46,8.625,12.18
LONG POSITION,"A purchased or owned position in a financial ASSET that benefits from price appreciation. In order to realize a gain generated by rising prices, the long position must be sold or offset. Also known as LONG. See alsoSHORT POSITION.",palgrave,0,53.07,8.3,11.2,9.02,6.6,8.98,5.875,10.07
LONG-TERM DEBT,"Any form of DEBT with a MATURITY date of more than 10 years, depending on jurisdiction or ACCOUNTING rules. In some jurisdic- tions long-term debt is interpreted more narrowly as any debt maturity in the forthcoming fiscal period. See also MEDIUM-TERM DEBT, SHORT-TERM DEBT.",palgrave,0,56.55,9,13.6,11.42,10.6,10.11,10.66666667,14.06
LONG-TERM PRIME RATE (LTPR),"In Japan, a key long-term fixed INTEREST RATE, historically set as a fixed spread above the 5-year funding rate of select domestic BANKS.",palgrave,0,65.05,9.9,0,10.74,13.6,10.27,14.5,14.42
LONG THE BASIS,An ARBITRAGE or TRADING strategy where a LONG POSITION in a cash instrument is HEDGED by a SHORT POSITION in FUTURES or FORWARDS.,palgrave,0,48.13,12.3,0,9.75,12,10.27,16.5,16.16
LONGEVITY BOND,See MORTALITY BOND.,palgrave,0,34.59,9.2,0,5.35,6.8,14.31,1.5,14.53
LOOKBACK OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a maximum gain by “looking back” over the price path of the ASSET and determining the point that creates the greatest economic profit. See also FLOATING STRIKE , OPTION ON THE MAXIMUM/ MINIMUM.",palgrave,0,51.18,11.1,0,12.3,13.3,10.55,13.25,12
LOONIE,The Canadian dollar.,palgrave,0,34.59,9.2,0,7.32,8.3,9.05,1.5,14.53
LOOPHOLES,"Exceptions or exemptions in a TAX code that can be legally exploited in order to reduce tax LIABILITIES. See also TAX AVOIDANCE, TAX EVASION.",palgrave,0,50.84,9.2,0,9.61,7.7,10.15,7,11.47
LOSS,Any deficit remaining after all costs have been subtracted from the REVENUE or selling price of a good or service or any deficit arising from the disposal of an asset at a price that is unfavorable compared to its original con- tract price. See also PROFIT.,palgrave,0,65.05,9.9,0,9.35,11.8,9.93,14,13.55
LOSS ADJUSTER,"A professional appointed by, but remaining independent of, an INSURER to negotiate settlement of a CLAIM under an INSURANCE POLICY. See also LOSS ASSESSOR.",palgrave,0,25.46,12.7,0,12.75,10.5,10.81,11,19.8
LOSS ADJUSTMENT EXPENSE,The cost an INSURER must bear in adjust- ing a CLAIM under an INSURANCE contract; some portion of the expense is generally passed back to INSUREDS through LOAD charges. Insurers that are efficient in their claims procedures have greater ability to lower their loss adjustment expenses and either improve their margins or reduce their load charges.,palgrave,0,51.52,13,0,12.83,17.1,11.51,18.5,17.63
LOSS ASSESSOR,A professional appointed by an INSURED to negotiate settlement of a CLAIM with an INSURER under the terms of an INSURANCE POLICY. See also LOSS ADJUSTER.,palgrave,0,41.36,10.7,0,9.96,8.2,10.35,9,14.43
LOSS AVERSION,"The degree to which an INVESTOR alters behavior in the face of a loss. While conventional financial theories assume behaviors for gains or losses are perfectly symmetric, theories of loss aversion suggest that inves- tors may be reluctant to realize losses as quickly as they realize gains.",palgrave,0,39.16,13.6,0,12.65,14.8,11.19,17.25,17.06
LOSS-BASED MODEL,See CREDIT DEFAULT MODEL.,palgrave,0,50.5,7.2,0,7.25,6.5,15.68,1,1.6
LOSS CONTROL,"A RISK MANAGEMENT TECHNIQUE where a firm employs safety precautions to reduce the likelihood that a particular RISK will impact its operations and create a loss. Loss controls may be physical, such as fire or security safety equipment, or intangible, such as training and educa- tion. Also known as LOSS PREVENTION. See also LOSS FINANCING, RISK REDUCTION.LOSS FINANCING, PRE-LOSS FINANCING, RISK REDUCTION.",palgrave,0,38.82,11.7,14.2,13.57,12.6,10.52,11.5,13.94
LOSS FREQUENCY METHOD,"In INSURANCE, a mechanism used to estab- lish a core PREMIUM level by projecting the expected number of future losses in a given RISK class over a particular time frame. Also known as LOSS RATE. See also LOSS RATIO METHOD.",palgrave,0,57.98,8.5,11.2,7.64,6.8,9.82,7.666666667,11.32
LOSS GIVEN DEFAULT,"A value or percentage estimate of the amount, net of RECOVERY, which a BANK expects to lose if a COUNTERPARTY DEFAULTS (i.e., –1 RECOVERY RATE). Loss given default is an essential input into internaland regulatory CREDIT DEFAULT MODELS as it provides a financial estimate of the net amount that may ultimately be lost should a counterparty fail.",palgrave,0,34.09,15.6,0,11.49,16.7,10.04,20.25,17.72
LOSS PREVENTION,See LOSS CONTROL.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
LOSS RATE,See LOSS FREQUENCY METHOD.,palgrave,0,75.88,3.7,0,8.7,7.7,11.73,2,11.6
LOSS RATIO,"In INSURANCE, a measure of an INSURER’s ability to cover losses and LOSS ADJUSTMENT EXPENSE with PREMIUMS, generally com- puted as:where L is loss (from CLAIMS), LAE is loss adjustment expense, and Pr is premium.The lower the ratio, the more premium the insurer preserves as profit. Also known as EXPECTED LOSS RATIO, PERMISSIBLE LOSS RATIO. See alsoCOMBINED RATIO, EXPENSE RATIO.",palgrave,0,34.26,13.5,15,12.3,13.8,10.68,14.33333333,15.33
LOSS RATIO METHOD,"In INSURANCE, a mechanism used to modify a core PREMIUM level by uniform percentages for related types of RISKS in order to align actual and expected LOSS RATIOS. See also LOSS FREQUENCY METHOD.",palgrave,0,46.27,10.9,0,10.38,9.9,11.63,12.75,17.51
LOSS RESERVES,"A RESERVE account established by an INSURER or REINSURER that includes an estimate of CLAIMS reported and adjusted but not yet paid, claims reported and filed but not yet adjusted, and claims INCURRED BUT NOT REPORTED; the latter is often difficult to estimate on an ex-ante basis and actual results only appear over time.RETROSPECTIVELY RATED POLICIES.",palgrave,0,6.18,26.3,0,13.83,31.6,12.34,41,28.83
LOSSES INCURRED,"In INSURANCE, a measure of the amount of PREMIUMS earned by the INSURER that must be allocated to cover losses; losses incurredcan serve as a basis for establishing LOSS RESERVES. See also LOSSES OUTSTANDING.",palgrave,0,45.76,11.1,0,11.6,11.3,9.59,12,15.04
LOSSES OUTSTANDING,"In INSURANCE, the amount of losses represent- ing CLAIMS received but not yet paid by the INSURER to INSUREDS. See alsoLOSSES INCURRED.",palgrave,0,68.77,6.4,0,10.54,8.5,11.36,6.5,11.67
LOT,"A minimum standard tradable quantity of a SECURITY, COMMODITY, or ASSET, typically set by an EXCHANGE or established through market convention. See also BOARD , ODD , ROUND .",palgrave,0,24.44,13.1,0,12.86,11.5,10.35,10.75,15.97
LP,See LIMITED PARTNERSHIP.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,2.5,27.87
LSE,See LONDON STOCK EXCHANGE.,palgrave,0,75.88,3.7,0,8.7,7.7,7.78,1,1.6
LTD,See LIMITED.,palgrave,0,35.61,8.8,0,-1.61,5.5,11.63,1,20.8
LTPR,See LONG-TERM PRIME RATE.,palgrave,0,118.18,-2.3,0,5.8,6.5,7.78,1,1.6
LTV,See LOAN-TO-VALUE.,palgrave,0,-6.7,14.7,0,10,19.6,0.1,1,0.8
M&A,Abbreviated form of MERGERS and ACQUISITIONS.,palgrave,0,6.17,13.9,0,16.87,13,11.83,4,15.73
M0,CURRENCY in circulation plus BANK balances at the CENTRAL BANK.,palgrave,0,52.87,8.4,0,11.98,9,12.03,6,12
MAASTRICHT TREATY,"A treaty, signed in 1992 in Maastricht, Netherlands, that led to the creation of the EUROPEAN UNION. The treaty defined the development and timeline for EUROPEAN MONETARY UNION and the cre- ation of a single currency, the EURO.",palgrave,0,60.65,9.5,0,10.68,11.6,11.23,12,11.81
MAC,See MATERIAL ADVERSE CHANGE CLAUSE.,palgrave,0,49.48,7.6,0,13.08,10.3,13.36,2.5,10
MACARONI DEFENSE,An ANTITAKEOVER DEFENSE where a poten- tial TARGET company issues BONDS with a REDEMPTION clause forcing the SECURITIES to be redeemed at a very substantial PREMIUM to PAR VALUE in the event of a TAKEOVER; the provision makes the company unattractive to any potential acquirer. See also SCORCHED EARTH DEFENSES.,palgrave,0,46.1,13,0,12.94,15.8,12.14,18,17.2
MACROECONOMICS,"The study, within the broad area of ECONOMICS, of the total economic activity of a system, with a focus on NATIONAL INCOME, industrial production, INFLATION/prices, UNEMPLOYMENT, MONEY SUPPLY, INTEREST RATES, and FOREIGN EXCHANGE RATES. See alsoMICROECONOMICS.",palgrave,0,1.1,22.1,0,17.65,26,13.76,28,25.51
MACROHEDGE,"A proxy HEDGE, put in place by a company or BANK, that is designed to protect REVENUES and earnings in the event of a deterioration in economic conditions (upto, and including, a RECESSION). Since there is no single instrument or financial CONTRACT that can replicate such conditions,a macrohedge is generally constructed from a variety of UNDERLYINGS that perform well in poor market conditions.",palgrave,0,31.04,16.8,0,13.24,19.3,10.71,22.75,19.58
MAIN STREET,"n the United States, the broad class of RETAIL INVESTORS.",palgrave,0,86.71,3.7,0,7.92,6.2,8.87,4,4
MAINTENANCE PERIOD,A specified period for computing BANK compli- ance with relevant RESERVE requirements.,palgrave,0,17,13.9,0,17.1,14,14.76,11,21.47
MAJORITY CONTROL,"A process or structure where effective corporate con-trol is gained by taking a majority, though not absolute, stake in the company’sCOMMON STOCK. See also CONTROLLING INTEREST, LEGAL MECHANISMCONTROL, MANAGEMENT CONTROL, MINORITY CONTROL, TOTALCONTROL, VOTING TRUST CONTROL.",palgrave,0,10.91,16.2,0,19.49,19,13.3,14.5,19.42
MAJORITY INTEREST,See CONTROLLING INTEREST.,palgrave,0,9.21,12.7,0,16.95,16.2,14.31,2.5,27.87
MAKING A BOOK,"In the United Kingdom, taking a LONG POSITIONor SHORT POSITION in SECURITIES, COMMODITIES, or other ASSETS forproprietary, rather than client-driven, purposes. Such activity is typical forthe proprietary TRADING desks at BANKS and SECURITIES FIRMS, as well asHEDGE FUNDS. See also BACK BOOK.",palgrave,0,40.35,11.1,14.1,15.25,13.6,11.1,10.66666667,14.17
MAKING A MARKET,"See TWO-WAY PRICES.DEBT OBLIGATION (CDO) that permits the manager to substitute REFERENCECREDITS in the POOL. This form of CDO allows the substitution of deteriorat-ing credits, but does not provide INVESTORS with transparency on the compos-ition of the PORTFOLIO and carries higher fees than STATIC COLLATERALIZEDDEBT OBLIGATIONS. See also SINGLE TRANCHE COLLATERALIZED DEBTOBLIGATION, SYNTHETIC COLLATERALIZED DEBT OBLIGATION.",palgrave,0,18.65,15.3,16.3,20.19,19.3,12.46,14.66666667,16.05
MANAGED FLOATING,"See MANAGED FOREIGN EXCHANGE RATE.whose value is set by a CENTRAL BANK or monetary authority via small/regu-lar purchases and sales of CURRENCY and through macroeconomic policies.Managed rates are not strictly fixed or pegged by government authorities, norare they freely determined through pure market SUPPLY and DEMAND forces.Also known as MANAGED FLOATING. See also CRAWLING PEG, PEGGING.",palgrave,0,26.14,16.6,0,16.89,20.8,12.64,19.5,16.2
MANAGED FUND,"Any form of INVESTMENT FUND (e.g., MUTUAL FUND, UNIT INVESTMENT TRUST) that features active management by the FUND MANAGER, who typically has significant discretion regarding the nature and timing of ASSETS that can be bought and sold within the fund (but must in all cases adhere to the terms of an approved investment policy).",palgrave,0,16.67,24.4,0,12.09,29.5,12.75,38,27.53
MANAGEMENT CAPITAL,See ECONOMIC CAPITAL.,palgrave,0,9.21,12.7,0,9.23,9.9,9.05,2.5,14.53
MANAGEMENT COMPANY,"The primary company of a MUTUAL FUND or other FUND MANAGEMENT organization, responsible for managing all aspects of the support, infrastructure, and policy surrounding an entire group of associated funds.",palgrave,0,-1.28,20.9,0,16.37,21,13.02,26,25.33
MANAGEMENT CONTROL,"A process or structure where management gains effective corporate control by accumulating a sufficiently large blockof a company’s COMMON STOCK to direct activities; as with MINORITY CONTROL, this process only works when ownership is so diffuse that even an organized MINORITY INTEREST fails to dominate the company and its actions. See also LEGAL MECHANISM CONTROL, MAJORITY CONTROL, TOTAL CONTROL, VOTING TRUST CONTROL.",palgrave,0,14.63,18.9,0,16.31,21.4,12.05,23.5,21.43
MANDATE,"An authorization or approval to arrange a NEW ISSUE of SECURITIES or CORPORATE FINANCE transaction, awarded by a company or sovereign entity to a FINANCIAL INSTITUTION acting as an INTERMEDIARY. COMMERCIAL BANKS, INVESTMENT BANKS, and SECURITIES FIRMS that hope to generate fee income and gain LEAGUE TABLE credit compete aggres- sively for mandates.",palgrave,0,19.2,17.2,0,14.97,18.3,12.7,20.25,19.66
MANDATORY BID,"In the United Kingdom, a requirement under the CITY CODE stipulating that an acquiring company must submit a formal BID for a TAKEOVER target once it has amassed 30% of the target’s SHARES in the market.",palgrave,0,43.4,16.2,0,9.88,18.6,10.69,22,17.73
MANUSCRIPT INSURANCE,"A customized INSURANCE POLICY with terms that are tailored to an INSURED’s specific requirements. A manu- script contract, which is used when coverage cannot be accommodated via a standard insurance form, reflects special needs, conditions, and PERIL coverages. Also know as MANUSCRIPT POLICY.",palgrave,0,40.04,11.2,14.6,14.9,13.2,12.42,11.16666667,15.02
MANUSCRIPT POLICY,See MANUSCRIPT INSURANCE.,palgrave,0,9.21,12.7,0,16.95,16.2,14.31,2.5,27.87
MAPLE BOND,"A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in Canadian dollars in the Canadian markets by a foreign company.NONPURPOSE LOAN, PURPOSE LOAN.",palgrave,0,40.69,13.1,0,13.29,15.5,11.19,15,14.25
MARGIN CALL,"A CALL made by a BANK, BROKER, or other FINANCIAL INSTITUTION to an INVESTOR holding a MARGIN LOAN in a MARGIN ACCOUNT when the MAINTENANCE MARGIN has declined below a specified threshold. The investor must supply additional VARIATION MARGIN to return to the specified MAINTENANCE MARGIN or risk a closeout of its position.",palgrave,0,36.12,14.8,0,12.25,15.9,9.72,17.75,15.88
MARGIN LOAN,See PURPOSE LOAN.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
MARGIN TRADING,A form of LEVERAGED TRADING arising when an INVESTOR secures a MARGIN LOAN through a MARGIN ACCOUNT.,palgrave,0,62.68,8.7,0,10.73,10.3,10.05,7.5,6.8
MARGINAL COST,"The change in TOTAL COST that comes from producing an incremental unit of a good or service. Marginal cost can change at each new level of production, so the marginal cost at any point relates to the change in cost for that unit. It is computed as the first derivative of total cost with respect to quantity, or:where MC stands for marginal cost, TC for total cost and Q for quantity. See also MARGINAL REVENUE, VARIABLE COST.",palgrave,0,60.35,9.6,12.6,8.41,9.6,8.28,12.375,11.36
MARGINAL REVENUE,"The change in REVENUE that comes from selling an incremental unit of a good or service. Marginal revenue can change at each new level of sales, so the marginal revenue at any point relates to the change in revenue for that unit. It is computed as the first derivative of total revenue (TR) with respect to quantity (Q), or:= ∂TR∂QSince revenue is itself a function of price times quantity, MR can also be expressed as the first derivative of price (P) with respect to quantity, or:See also MARGINAL COST.",palgrave,0,49.79,13.7,13.6,9.35,15.4,9.01,18.16666667,14.13
MARGINAL TAX RATE,"The incremental TAX levied for an additional unit of INCOME (or earnings), computed as the change in tax liability (due or paid) divided by the change in taxable income (earnings). See also AVERAGE TAX RATE, EFFECTIVE TAX RATE, STATUTORY TAX RATE.",palgrave,0,50.67,11.3,0,10.44,12.6,9.27,14.25,16
MARINE INSURANCE,"A general form of PROPERTY AND CASUALTY INSURANCE used to cover goods in transit (i.e., via air, land, or waterway) and the vehicles used for transportation.",palgrave,0,36.63,14.6,0,10.68,15.5,10.39,20,19.63
MARKER CRUDE,"A BENCHMARK reference crude oil that is used in pricing and TRADING. Different qualities of oil from different regions may be pegged to particular marker crudes, such as Brent Blend, West Texas Intermediate, Dubai, and so forth.",palgrave,0,61.16,9.3,0,11.89,12.3,11.38,12.25,11.72
MARKET CAPITALIZATION,"A measure of a PUBLIC COMPANY’s current value, computed as:MC = S × Shswhere S is the current price of the COMMON STOCK and Shs is the number ofOUTSTANDING SHARES.Since the stock price changes on a daily basis, the market capitalization of the firm changes in tandem. Also known as MARKET VALUE.",palgrave,0,54.05,12.1,0,9.99,13.8,9.86,15.5,13.34
MARKET DEPTH,"The number of SHARES of STOCK in a given company that are BID and OFFERED, ranked by price. Market depth contributes to the DISPLAYED LIQUIDITY that all INVESTORS can see.",palgrave,0,73.17,6.8,0,8.98,8.3,8.59,8,8.67
MARKET ECONOMY,See FREE .,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0.5,0.8
MARKET FLEX,"Legal language contained in a LOAN transaction that allows the ARRANGER to change pricing based on INVESTOR demand, itself a func- tion of market conditions. Market flex also allows the arranger to reallocate portions of the loan across various TRANCHES.",palgrave,0,51.18,11.1,0,13.34,13.9,11.34,12,12
MARKET IF TOUCHED ORDER,"An ORDER to purchase or sell a SECURITY if a particular price is reached; once attained, the order converts into a MARKET ORDER and is filled at the best available market price.",palgrave,0,47.46,14.6,0,9.24,16,9.17,18,15.3
MARKET IMPACT,The effect of information transfer from an ORDER on the market price of a quoted SECURITY.,palgrave,0,46.78,10.7,0,9.28,8.7,9.36,9,11.4
MARKET MICROSTRUCTURE,"The study of the specific mechanics of finan- cial marketplaces, focusing particularly on the way in which SUPPLY and DEMAND interact and the way in which PRICE DISCOVERY is achieved.",palgrave,0,41.03,15,0,12.49,17.7,11.44,22,21.33
MARKET MODEL,"A general corporate system that is characterized by very diffuse SHAREHOLDINGS, deep and LIQUID CAPITAL MARKETS, dynamic CAPITAL reallocation, advanced legal and regulatory frameworks, and an active CORPORATE CONTROL MARKET. The United States, the United Kingdom, and Canada are representative examples of the market model. See also HYBRID MODEL, RELATIONSHIP MODEL.",palgrave,0,11.92,15.8,15,17.22,16.3,10.98,12.83333333,13.86
MARKET NEUTRAL,A common HEDGE FUND or INVESTMENT strategy where a manager creates a PORTFOLIO of LONG and SHORT positions in an EQUITY market. The construction of a market neutral portfolio allows the manager to simultaneously express views on stocks believed to be undervalued and those that are overvalued. A market neutral portfolio can result in theelimination of SYSTEMATIC RISK in favor of IDIOSYNCRATIC RISK arising from individual long and short positions. See also LONG ONLY.,palgrave,0,35.78,12.9,15.2,13.46,13,10.1,13.75,14.43
MARKET ON CLOSE ORDER,An ORDER to purchase or sell a SECURITY at the price prevailing at market close. The market on close is effectively equiva- lent to a delayed MARKET ORDER.,palgrave,0,57.27,8.8,0,8,7.1,8.28,7.5,9.89
MARKET ORDER,"An ORDER for the purchase or sale of a SECURITY at the current market level; as long as sufficient LIQUIDITY is available, the order will be filled at the market price. See also LIMIT ORDER, MARKET IF TOUCHED ORDER, MARKET ON CLOSE ORDER, STOP ORDER, TIME ORDER.",palgrave,0,56.08,11.3,0,8.71,12,7.83,13.25,11.95
MARKET OUT CLAUSE,See MATERIAL ADVERSE CHANGE CLAUSE.,palgrave,0,49.48,7.6,0,13.08,10.3,13.36,2.5,10
MARKET POWER,"A situation where a purchaser or supplier of raw materials or finished goods has such a significant presence that it can dictate, to a signifi- cant degree, favorable pricing terms. Such power is limited to a small number of companies that effectively operate as MONOPOLIES or OLIGOPOLIES.",palgrave,0,30.7,14.8,0,12.36,14.7,11.52,17.75,19.61
MARKET PRICE,(1) The price for a good or service that is determined through the interaction of SUPPLY and DEMAND in a free market setting. (2) An EXECUTION price on an ORDER that reflects the current market BID or market OFFER. (2) See also LIMIT PRICE.,palgrave,0,35.28,19.3,0,8.37,21.7,9.41,25,20.33
MARKET RISK,"The RISK of loss due to an adverse move in the MARKET VALUE of an ASSET or market indicator, such as a COMMON STOCK, BOND, LOAN, FOREIGN EXCHANGE RATE, or COMMODITY. Market risk, which is a form of FINANCIAL RISK, can be subcategorized into BASIS RISK, CURVE RISK, DIRECTIONAL RISK, SPREAD RISK, and VOLATILITY RISK.",palgrave,0,52.02,12.8,0,9.29,14.7,8.73,16.75,15.36
MARKET RISK AMENDMENT,"An amendment to the BASLE ACCORD framework, agreed in 1996, permitting participating BANKS to use their internal models in the computation of VALUE-AT-RISK for CAPITAL ALLOCATION purposes. See also BASLE II.",palgrave,0,38.82,11.7,0,14.44,13.2,12.55,11.25,13.94
MARKET SEGMENTATION THEORY,"A theory of INTEREST RATES indicat- ing that each MATURITY segment of the YIELD CURVE is separate and dis- tinct; INVESTORS commit CAPITAL to the sector of their choice, impeding the free flow of capital to other segments. See also EXPECTATIONS THEORY, LIQUIDITY PREFERENCE THEORY.Additional references: Lutz and Lutz (1951); Meiselman (1962).",palgrave,0,28.17,15.8,0,14.05,18,12.21,20,18.09
MARKET SWEEP,"A second offer for the purchase of outstanding SHARES of COMMON STOCK, made by an acquiring company to INVESTORS in the TARGET company. The market sweep, which comes after an initial TENDER OFFER has been made, is intended to build the acquirer’s position to a con- trolling stake and may be executed at a price that is higher than the initial tender.",palgrave,0,48.47,14.2,0,9.88,16.1,9.76,19.5,16.27
MARKET TIMING,An INVESTMENT strategy used by certain FUND MANAGERS and proprietary TRADING operations that attempts to select the proper points through which to establish a LONG POSITION or SHORT POSITION in a particular ASSET. In reality such a strategy is difficult to imple- ment consistently.,palgrave,0,32.22,14.2,0,13.81,15.1,11.19,17,17.89
MARKET VALUE,"(1) The current value of an ASSET or LIABILITY based on quoted BIDS or OFFERS, reflecting a realizable economic value in the market- place. (2) See MARKET CAPITALIZATION. (1) See also BOOK VALUE.",palgrave,0,21.06,18.5,0,10.05,18.3,11.49,21.5,19.26
MARKET VALUE ADDED,"A measure of a company’s financial performance that compares its MARKET VALUE with CAPITAL invested. The greater the mar- ket value added, the greater the company’s ability to use its capital resources effectively. See also ACCOUNTING PROFIT, ECONOMIC PROFIT, ECONOMIC VALUE ADDED.",palgrave,0,40.35,11.1,14.6,14.32,12.5,9.97,11,13.22
MARKETABLE SECURITY,"Any SECURITY that can be sold without limita- tion in a SECONDARY MARKET, thus featuring a high degree of LIQUIDITY. While many securities can be freely traded and are thus marketable some, such as PRIVATE PLACEMENTS, are designed primarily as “hold to maturity” ASSETS and are more accurately considered NONMARKETABLE SECURITIES. Certain ILLIQUID assets, such as MORTGAGES, LOANS, and ACCOUNTS RECEIVABLE, can be converted into marketable securities via the SECURITIZATION process.",palgrave,0,30.5,14.9,15.5,15.79,17.7,11.48,16.5,16.24
MARKOV PROCESS,"A STOCHASTIC PROCESS where only the current price of an ASSET is relevant in determining what may happen in the future, i.e., previous prices and the number of periods preceding the current observation are irrele- vant. The Markov process is used in numerous DERIVATIVE pricing models.MULTIPERIOD PORTFOLIO OPTIMIZATION.",palgrave,0,30.2,15,0,15.03,17.4,12.39,18,19.6
MARRIED PUT,"A PUT OPTION that is acquired by an INVESTOR as a HEDGE at the same time as the UNDERLYING reference ASSET is purchased. As the price of the underlying asset declines the value of married put increases, and vice versa.",palgrave,0,59.64,9.9,0,8.24,9.6,9.37,12,11
MAS,See MONETARY AUTHORITY OF SINGAPORE.,palgrave,0,-1.29,14.7,0,14.24,11.2,13.36,4.5,26
MASTER FUND,A FUND that invests CAPITAL gathered from INVESTORS through one or more FEEDER FUNDS. The master fund structure is widely employed in the HEDGE FUND sector.,palgrave,0,75.2,6,0,10.6,8.8,10.96,6,5.2
MASTER LIMITED PARTNERSHIP (MLP),A form of organization where the legal structure mirrors a conventional LIMITED PARTNERSHIP but where the business structure assumes that of a CORPORATION. An MLP may be publicly traded on an EXCHANGE.,palgrave,0,46.78,10.7,0,12.87,11.6,10.35,10.5,12.65
MASTER NOTE,"COMMERCIAL PAPER offered by a direct ISSUER to the INVESTMENT management or TRUST department of a BANK or an INSTITUTIONAL INVESTOR that has periodic amounts to invest in short- term FIXED INCOME instruments. The master note, which pays a particular SPREAD above a stated commercial paper rate, is a dependable source of funds for the issuer and eliminates the administrative burden that would otherwise arise through the issuance of smaller denomination notes.",palgrave,0,26.48,18.5,0,14.34,22.1,11.12,25,21.07
MASTER TRUST,A vehicle often used to hold a POOL of ASSETS securing anASSET-BACKED SECURITY.,palgrave,0,41.36,10.7,0,10.83,9.3,11.57,10.5,14.43
MATCH,"The process of matching a buyer and seller of an ASSET, typically STOCK. See also CROSS, CROSSING NETWORK, DARK POOL.",palgrave,0,69.79,6,0,8.21,6.6,9.66,4.5,6
MATCHED BARGAIN,"In the United Kingdom, the pairing of an ORDER to buy and an order to sell a specific STOCK.",palgrave,0,69.11,8.3,0,4.7,6.4,6.24,10.5,9.71
MATCHED BOOK,"A PORTFOLIO of ASSETS and LIABILITIES (such as the LOANS and DEPOSITS of a BANK, or the REPURCHASE AGREEMENTS and REVERSE REPURCHASE AGREEMENTS of a SECURITIES FIRM), with equal (or nearly equal) MATURITIES or DURATIONS. A matched book minimizes or eliminates an institution’s exposure to MARKET RISK and/or LIQUIDITY RISK, but generates a smaller RETURN on CAPITAL. See also GAP, GAPPING, MISMATCH, OPEN BOOK, UN.",palgrave,0,40.99,12.9,15.5,12.59,14.7,10.79,15.5,16.06
MATCHING CONCEPT,"A central ACCOUNTING CONCEPT that indicates a company should properly match its INCOME with its EXPENSES in any given accounting period (e.g., on an ACCRUAL BASIS). See also CONSISTENCY CONCEPT, GOING CONCERN CONCEPT, PRUDENCE CONCEPT.",palgrave,0,28.33,13.7,0,14.27,14.4,10.82,13.25,15
MATERIALITY,"An assessment of information classified as material, and which must be considered in the ACCOUNTING process and in any relevant financial disclosure. Though the classification of materiality is at least partly subjective, a general guideline suggests that the exclusion of material informa- tion may have an adverse effect on STAKEHOLDERS.",palgrave,0,20.72,16.6,0,16.08,18.4,11.51,21,22
MATILDA,"A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in Australian dollars in the Australian markets by a foreign company.",palgrave,0,52.19,10.7,0,11.72,12.4,10.4,11.5,9.71
MATURITY,See  DATE.,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0,0.8
MATURITY BUCKET,"A framework of time bands used by BANKS and other FINANCIAL INSTITUTIONS to manage their ASSETS and LIABILITIES, <1 year, 1–3 years, 3–5 years, 5–7 years, and so forth. Assets and liabilities are assigned to their respective buckets and then used to compute a GAP.",palgrave,0,57.1,10.9,0,10.33,12.9,11.07,13.75,12.56
MATURITY DATE,"The date on which a financial CONTRACT, ASSET, or LIABILITY matures or comes due. Also known as MATURITY. See also EXPIRY DATE, REDEMPTION DATE.",palgrave,0,54.9,7.6,9.7,8.13,6.3,9.95,4.333333333,9.87
MAXIMUM FORESEEABLE LOSS,A worst-case loss scenario applied by an INSURER or REINSURER to a potential CATASTROPHIC HAZARD. See alsoMAXIMUM PROBABLE LOSS.,palgrave,0,36.45,10.5,0,13.6,10.6,11.59,6.75,16.43
MAXIMUM LOSS,A loss measure indicating the amount a firm might lose across a PORTFOLIO of MARKET RISKS by ignoring any offsetting effects obtained from DIVERSIFICATION. Maximum loss can be regarded as an extreme form of the VALUE-AT-RISK computation. See also SCENARIO ANALYSIS.,palgrave,0,40.65,11,13,13.27,11.3,10.48,8.833333333,14.26
MAXIMUM PROBABLE LOSS,"An EXPECTED LOSS computation applied by an INSURER or REINSURER to a catastrophic or noncatastrophic RISK event. See also AMOUNT AT RISK, MAXIMUM FORESEEABLE LOSS.",palgrave,0,41.87,10.5,0,13.38,11,11.2,10.25,17.8
MBO,See MANAGEMENT BUYOUT.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
MBS,See MORTGAGE-BACKED SECURITY.,palgrave,0,-24.64,17.4,0,22.75,22.5,19.58,2.5,14.53
MEAN,"The unweighted average of a set of observations, which can be com- puted in arithmetic or geometric form:Arithmetic mean:Geometric mean:m= (Πi xi )Nwhere xi is an observation and N is the number of observations. See alsoMEDIAN, MODE.",palgrave,0,35.78,12.9,0,11.89,12.9,10.53,13.75,13.89
MEAN REVERSION,"The observable tendency for INTEREST RATES, EQUITIES, and certain other financial variables to return to a MEAN level over the long term. Mean reversion is incorporated into certain DERIVATIVE pricing models.",palgrave,0,30.36,12.9,0,14.96,13.4,10.52,11.75,16.52
MEAN VARIANCE ANALYSIS,"The process of evaluating the riskiness of a PORTFOLIO based on the EXPECTED RETURN and RISK (or VARIANCE) of potential outcomes. A portfolio can be optimized for single or multiple frame- works through this process. Also known as MEAN VARIANCE OPTIMIZATION. See also MARKOWITZ PORTFOLIO OPTIMIZATION, MODERN PORTFOLIO THEORY, MULTIPERIOD PORTFOLIO OPTIMIZATION.Additional reference: Markowitz (1952).",palgrave,0,32.09,12.2,14.9,17.33,15.2,10.35,11.125,14.25
MEDIAN,"A form of obtaining an average figure, typically obtained by order- ing the values from largest to smallest and then selecting the center value (when the number of observations is odd) or the average of the two center values (when the number of observations is even). See also MEAN, MODE.",palgrave,0,46.1,13,0,9.7,13.6,8.35,16,14
MEDIUM OF EXCHANGE,"A mechanism (often with little INTRINSIC VALUE) to store and transfer value, allowing for the efficient payment of goods and services. While all manner of COMMODITIES have historically been used as a medium of exchange, money is now the most common form. See alsoBANKNOTE, FIAT MONEY.",palgrave,0,47.49,10.4,11.9,11.24,10.7,8.86,9,12.21
MEDIUM-TERM DEBT,"Any form of DEBT with a MATURITY DATE of 1 to 10 years, depending on jurisdiction or ACCOUNTING rules. See also LONG-TERM DEBT, SHORT-TERM DEBT.LONDON INTERBANK OFFERED RATE, COMMERCIAL PAPER, TREASURY BILLS, or the PRIME RATE. See also EURO MEDIUM-TERM NOTE (EMTN).",palgrave,0,57.27,8.8,11.9,11.24,10.8,11.47,8.333333333,11.31
MEMBER BANK,"A BANK that is officially part of a country’s CENTRAL BANK or monetary authority system, or part of a national CLEARING system.",palgrave,0,40.69,13.1,0,10.15,12.3,10.47,15,16.07
MEMORANDUM OF ASSOCIATION,"In the United Kingdom, a document that presents essential information on a new company that seeks to be rec- ognized as a REGISTERED COMPANY. The memorandum is filed with the Registrar of Companies.",palgrave,0,46.27,10.9,0,10.9,10.5,10.2,12.75,15.08
MERCHANT BANK,"In the United Kingdom, a BANK that provides clients with CORPORATE FINANCE, RISK MANAGEMENT, and INVESTMENT man- agement advice, and deals actively in SECURITIES UNDERWRITING and TRADING and PRIVATE EQUITY investments. A merchant bank does not actively accept DEPOSITS or grant LOANS as a main line of business. See alsoBOUTIQUE, INVESTMENT BANK.",palgrave,0,45.46,11.2,14.1,14.32,13.9,11.48,12.33333333,13.84
MERGER ACCOUNTING,"The ACCOUNTING policies used when two companies arrange a MERGER as equals. Under this process the BALANCE SHEET accounts of the two companies are simply added together, and no changes to GOODWILL are affected. Also known as POOLING OF INTERESTS ACCOUNTING. See also ACQUISITION ACCOUNTING.",palgrave,0,51.55,8.9,11.7,12.62,10,9.81,6.875,8.96
MERGER ARBITRAGE,See RISK ARBITRAGE.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,1.5,14.53
METI,"See MINISTRY OF ECONOMY, TRADE, AND INDUSTRY.",palgrave,0,55.91,7.2,0,9.87,8.3,10.75,4.5,14.23
MEZZANINE FINANCING,"(1) A second or third round of financing in a VENTURE CAPITAL, LEVERAGED BUYOUT, or RESTRUCTURING transac- tion, which is generally SUBORDINATE to BANK LOANS but senior to early rounds of venture capital funding. Mezzanine financing is often considered to be pre-INITIAL PUBLIC OFFERING funding. (2) See SUBORDINATED DEBT.",palgrave,0,29.69,15.2,0,14.05,17.1,11.94,17.75,16.33
MEZZANINE LOAN,"A JUNIOR ranking NONRECOURSE LOAN, often used in the context of commercial real estate financing. Such loans, which may carry MATURITIES ranging from 1 to 10 years and feature AMORTIZATION or INTEREST-only payments, are not typically secured on the underlying prop- erty being financed, but on the creditworthiness of the entity that owns the property. See also FIRST LIEN COMMERCIAL MORTGAGE.",palgrave,0,33.95,13.6,14.6,13.52,14.5,11.89,14.16666667,15.33
MFN,See MOST FAVORED NATION.,palgrave,0,75.88,3.7,0,5.8,5.3,11.73,1,1.6
MICROCREDIT,"A sector of development BANKING that is based on the granting of very small LOANS (e.g., $50–100) in order to promote small-scale, local business initiatives.",palgrave,0,54.56,11.9,0,12.02,16.3,13.72,14.5,13.2
MICROECONOMICS,"The study, within the broad area of ECONOMICS, of how individuals and firms make decisions related to the allocation of scarce resources. Focus is placed on microstructures of SUPPLY and DEMAND, and how these interact to establish relative prices. See also MACROECONOMICS.",palgrave,0,48.81,9.9,13.6,13.22,11.5,11.85,10.33333333,15.12
MICROSTOCK,"The COMMON STOCK of a very small company, typically one with a MARKET CAPITALIZATION in the tens, or hundreds, of thousands of dollars. Such stocks, which are generally speculative and unproven, TRADE infrequently in the informal OVER-THE-COUNTER bulletin board market. Also known as MICROCAP STOCK. See also LARGE CAP STOCK, MID-CAP STOCK, SMALL CAP STOCK.",palgrave,0,57.47,8.7,11.7,12.58,11.4,8.91,8.125,10.61
MID-CAP STOCK,"The COMMON STOCK of a company with a medium-sized MARKET CAPITALIZATION, generally in the range of $1 billion to $5 billion. See also LARGE CAP STOCK, MICROSTOCK, SMALL CAP STOCK.",palgrave,0,56.25,9.1,0,9.56,9.6,9.64,9,10
MID-MARKET,The midpoint of a BID and OFFER on an ASSET. Also known as MID-PRICE.,palgrave,0,81.29,3.7,0,2.04,0.9,7.37,2.5,2.8
MID-PRICE,See MID-MARKET.,palgrave,0,35.61,8.8,0,4.2,12.5,11.63,1,0.8
MIDDLE OFFICE,"A group of functions found in BANKS, SECURITIES FIRMS and INVESTMENT BANKS that center on verifying pricing of TRADES and providing technology and infrastructure support to TRADERS.",palgrave,0,35.61,15,0,15.9,19.1,12.58,19.5,19.69
MIDGET,"A 15-year GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PASS-THROUGH SECURITY. See also DWARF, GNOME.",palgrave,0,23.09,11.5,0,17.85,14.9,11.83,4,12.4
MIFID,See MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE.,palgrave,0,14.63,12.7,0,18.78,14.5,14.46,5,22.4
MIGRATION,See RATING .,palgrave,0,35.61,8.8,0,-4.51,3.1,11.63,0.5,0.8
MINIMUM FLUCTUATION,"The smallest price movement on a SECURITY or DERIVATIVE, typically set in relation to the specific characteristics of an ASSET or market. See also TICK VALUE.",palgrave,0,32.9,11.9,0,10.83,9.2,9.75,8.5,14.43
MINIMUM FUNDING REQUIREMENT,"In the United Kingdom, a require- ment that the ASSETS of a PENSION not be less than 90% of its LIABILITIES.",palgrave,0,67.08,9.1,0,5.92,8.8,9.19,11.5,10.3
MINIMUM SUBSCRIPTION,"The minimum size (in value terms) of a NEW ISSUE of STOCK or a RIGHTS OFFERING that must be raised in order for the transaction to proceed. If the minimum subscription amount is not met, the transaction is cancelled.",palgrave,0,68.6,8.5,0,8.47,9.8,8.65,12.75,11.9
MINORITY CONTROL,"A process or structure where a small group of INVESTORS cooperates to gain effective control of a company; this is gener- ally accomplished by attracting enough PROXIES from diffuse owners and can only work if no other large block holder exists. See also LEGAL MECHANISM CONTROL, MAJORITY CONTROL, MANAGEMENT CONTROL, MINORITY INTEREST, TOTAL CONTROL, VOTING TRUST CONTROL.",palgrave,0,25.63,16.8,0,14.34,19,11.14,19.25,17.72
MINORITY INTEREST,"An ownership stake of less than 50% in a com- pany, which leaves SHAREHOLDERS with no effective control of manage- ment. A minority interest arises when a CONTROLLING INTEREST is held by another party. Also known as MINORITY OWNERSHIP. See also MINORITY CONTROL.",palgrave,0,43.59,9.9,12.6,10.13,8.1,9.68,7.125,9.9
MINORITY OWNERSHIP,See MINORITY INTEREST.,palgrave,0,-24.64,17.4,0,11.15,11.5,14.31,2.5,27.87
MINORITY PROTECTION,See MINORITY SHAREHOLDER RIGHTS.,palgrave,0,8.2,13.1,0,17.4,14.7,15.68,3,21.6
MINORITY SHAREHOLDER RIGHTS,"A set of rights accorded to the MINORITY SHAREHOLDERS to ensure that they are not treated unfairly by the MAJORITY INTERESTS. Specific rights vary by jurisdiction, but include access to FINANCIAL STATEMENTS, ability to take legal actions, and so forth. Also known as MINORITY PROTECTION.",palgrave,0,39.33,11.5,14.6,12.69,11.5,11.4,11.5,15.78
MINUS TICK,"Sale of a SECURITY at a price that is lower than the prior trans- action, generally indicated through the display of a “-“ next to the screen or tape price. In some jurisdictions a SHORT SALE cannot be initiated on a minus tick. Also known as DOWNTICK. See also PLUS TICK, ZERO PLUS TICK, ZERO .",palgrave,0,65.93,7.5,9.5,6.49,6,8.34,7.25,9.16
MISMATCH,"A state where a BANK’s RATE-SENSITIVE ASSETS and RATE- SENSITIVE LIABILITIES are not perfectly matched with regard to MATURITY or DURATION. A mismatch implies the existence of LIQUIDITY RISK, INTEREST RATE RISK, and/or CURVE RISK, but may generate a greater RETURN on invested CAPITAL. See also GAP, GAPPING, MATCHED BOOK, UNMATCHED BOOK.",palgrave,0,45.46,11.2,14.6,13.11,13.2,10.87,12.66666667,14.61
MISREPRESENTATION,"An untrue statement of fact that is made by a party in entering into a CONTRACT, and which may result in losses or damages tothe other party. The misrepresentation may be negligent (indicating that the party makes the statement without any reason to believe it is untrue) or fraudu- lent (indicating that the party makes the statement knowing that it is untrue). See also FRAUD, RESCISSION.",palgrave,0,49.15,11.9,10.5,10.39,12.7,8.79,12.66666667,11.22
MIXED LOT,"A total ORDER comprised of ROUND LOTS and ODD LOTS. See also BOARD LOT, LOT.",palgrave,0,89.24,2.7,0,3.15,1.8,7.17,2.75,3
MLP,See MASTER LIMITED PARTNERSHIP.,palgrave,0,8.2,13.1,0,15.95,13.5,11.73,3,21.6
MNC,See MULTINATIONAL CORPORATION.,palgrave,0,-50.02,21,0,26.63,24,14.31,2.5,27.87
MOB SPREAD,See MUNICIPALS OVER BONDS SPREAD.,palgrave,0,66.4,5.2,0,10.76,8.4,10.2,2.5,10
MOCHIAI,The network of cross-SHAREHOLDINGS held by KEIRETSU companies.,palgrave,0,46.44,8.8,0,18.81,15,11.93,5,13.2
MODE,"The value of a series of observations that occurs with greatest fre- quency. See also MEAN, MEDIAN.",palgrave,0,62.85,6.6,0,7.62,5.8,10.56,4.25,8.11
MODEL,"A mathematical framework used by a BANK, INSURER, INVESTMENT MANAGER, or other FINANCIAL INSTITUTION to perform specific financial computations, such as pricing DERIVATIVES or other instruments or deter- mining a quantum of RISK. While often useful, such computations are prone to  RISK.",palgrave,0,16.32,16.2,0,15.43,16.5,11.07,16.5,16.97
MODIFIED DURATION,"A common measure of DURATION, or the average CASH FLOWS of a FIXED INCOME instrument, which estimates the change in the value of the instrument for a small change in YIELD.of a specific rate reinvested CASH FLOWS. Unlike the NET PRESENT VALUE computation, which reinvests at the project’s COST OF CAPITAL, and stand- ard internal rate of return computation, which reinvests at the internal rate of return, the MIRR uses specific rates for cash inflows.",palgrave,0,33.41,17.9,0,11.79,21.1,9.71,25.75,19.8
MODIFIED LADDER OPTION,See FIXED STRIKE LADDER OPTION.MATURITY DATE.,palgrave,0,31.55,10.4,0,15.88,13,14.46,3,9.07
MODIFIED SHOUT OPTION,See FIXED STRIKE SHOUT OPTION.Additional reference: Miller and Modigliani (1958).,palgrave,0,52.87,8.4,0,20.1,17.5,16.76,6,12
MOF,See MULTIPLE OPTION FACILITY.,palgrave,0,-8.73,15.5,0,13.05,11.2,15.68,3,21.6
MOMENT,"In statistical theory, operators that describe the shape of a distri- bution. In general, theFirst moment is 0Second moment is the VARIANCEThird moment is SKEWNESSFourth moment is KURTOSISAlso known as CENTRAL MOMENT.",palgrave,0,38.32,11.9,0,15.25,13.9,9.86,11,12.65
MOMENTUM INDICATOR,"A TECHNICAL ANALYSIS measure used to gauge the speed of upward and downward movements in a SECURITY or market INDEX. Common momentum measures include relative strength indicators, MOVING AVERAGES, and convergence/divergence metrics.",palgrave,0,21.4,14.3,0,17.98,16.1,13.31,12,17.65
MOMENTUM TRADING,"A TRADING strategy that is based purely on the short-term movement and momentum of a SECURITY or INDEX rather than on FUNDAMENTAL ANALYSIS or TECHNICAL ANALYSIS. See also MOMO,NEGATIVE MOMENTUM TRADING, POSITION TRADING, SWING TRADING.",palgrave,0,28.33,13.7,0,14.73,14.4,10.82,13.75,16.14
MOMO,A TRADER or INVESTOR engaged in MOMENTUM TRADING.,palgrave,0,46.44,8.8,0,10.11,7.3,13.9,4,8.2
MONETARISM,"A theory of ECONOMICS popularized by economist Milton Friedman indicating that MONEY SUPPLY is the driving force in determining national output and INFLATION, and that policies should be geared toward ensuring an equilibrium in SUPPLY and DEMAND for MONEY.Additional reference: Friedman and Schwartz (1963).",palgrave,0,1.44,24,0,17.6,28.8,14.07,34,28.51
MONETARY BASE,"The core amount of MONEY circulating in a national sys- tem, precise measurement of which can vary by country and desired breadth. In a narrow sense it includes notes and coins and BANK RESERVES held with the CENTRAL BANK or monetary authority; a broader definition also includes customer DEPOSITS held by BANKS. See also M0, M1, M2, M3.",palgrave,0,60.35,9.6,11.2,9.81,11,11.4,11.66666667,11.86
MONETARY INFLATION,"An expansion in a country’s MONEY SUPPLY which, under MONETARISM, leads to an increase in INFLATION.",palgrave,0,46.78,10.7,0,12.18,11.6,11.34,11,13.9
MONETARY POLICY COMMITTEE (MPC),"In the United Kingdom, a committee within the BANK OF ENGLAND that meets monthly to consider MONETARY POLICY and economic issues, culminating in a decision on set- ting of INTEREST RATES.",palgrave,0,31.55,16.6,0,11.96,17.9,12.81,23.5,22.72
MONEY,"(1) A MEDIUM OF EXCHANGE which is in circulation in the finan- cial system. A narrow definition of  includes paper and coins, while a broader definition includes measures such as M1, M2, and M3. (2) A medium of exchange used in a particular country. (1,2) Also known as CURRENCY. See also FIAT .",palgrave,0,53.92,10,10.5,7.65,9.1,9.96,10.5,10
MONEY AT CALL,"Secured funds lent by BANKS, BROKERS, DEALERS, and other FINANCIAL INSTITUTIONS to one another which must be repaid on demand. See also MONEY AT SHORT NOTICE.",palgrave,0,58.28,8.4,0,10.37,9.2,10.35,7,8.28
MONEY AT SHORT NOTICE,"Secured funds lent by BANKS, BROKERS, DEALERS, and other FINANCIAL INSTITUTIONS to one another which must typically be repaid within 1 to 2 weeks. See also MONEY AT CALL.",palgrave,0,56.76,8.9,0,9.5,8.9,11.98,8.25,9.94
MONEY BROKER,"In the United Kingdom, a BROKER that specializes in arranging short-term funding between BANKS, DISCOUNT HOUSES, and other FINANCIAL INSTITUTIONS that are active in the MONEY MARKET, in exchange for a COMMISSION.",palgrave,0,22.08,18.1,0,15.04,21.2,10.65,21,19.05
MONEY CENTER BANK,A large BANK operating from one of the main money centers of the world.,palgrave,0,74.19,6.4,0,5.73,5.1,7.71,7,8.46
MONEY LAUNDERING,"The process of disguising illegally earned money so that it becomes part of the mainstream financial system. Money laundering generally comprises the three general stages of PLACEMENT, LAYERING, and INTEGRATION. Also known as LAUNDERING.",palgrave,0,34.63,11.2,13.6,15.47,12.5,11.16,8,13.93
MONEY MARKET,"The short-term financial marketplace for issuance and TRADING of ASSETS and LIABILITIES with MATURITIES extending from 1 day to 24 months. Instruments of the money market include GOVERNMENT BILLS, REPURCHASE AGREEMENTS, REVERSE REPURCHASE AGREEMENTS, BANKER’S ACCEPTANCES, CERTIFICATES OF DEPOSIT, COMMERCIAL PAPER, EURO COMMERCIAL PAPER, and short-term notes. Money market instruments are very LIQUID and generally feature only modest amounts of MARKET RISK and CREDIT RISK. See also CAPITAL MARKET.",palgrave,0,28.54,13.6,14.6,17.63,16.7,11.36,12.625,13.3
MONEY MARKET BASIS,"A day count convention applied to MONEY MARKET instruments, which is based on the actual number of days divided by 360 (for the United Kingdom) or 365 (for the United States and most other countries).",palgrave,0,44.41,15.8,0,9.82,18.4,9.88,21.5,18.57
MONEY MARKET FUND,"A MUTUAL FUND that invests exclusively in MONEY MARKET instruments, including COMMERCIAL PAPER, GOVERNMENT BILLS, BANKER’S ACCEPTANCES, and CERTIFICATES OF DEPOSIT. Money market funds are generally highly LIQUID and relatively low RISK, although returns are not GUARANTEED.",palgrave,0,18.86,15.2,0,18.8,18,13.09,14.75,18.21
MONEY MARKET INSTRUMENT,"Any financial instrument with a MATUR- ITY of less than 1 year, which can be traded and is often priced on a DISCOUNT basis. Common instruments include GOVERNMENT BILLS, CERTIFICATES OF DEPOSIT, COMMERCIAL PAPER, BILLS OF EXCHANGE, and BANKER’S ACCEPTANCES, among others.",palgrave,0,50.16,11.5,0,13.23,14.9,11.45,14,14.11
MONEY MARKET PREFERRED STOCK,See ADJUSTABLE RATE PREFERRED STOCK.,palgrave,0,83.32,2.9,0,14.24,11.2,10.2,1.5,2
MONEY SPREAD,"See BEAR SPREAD, BULL SPREAD.",palgrave,0,117.16,-1.9,0,4.96,4.6,0.25,1.5,2
MONEYNESS,The degree to which an OPTION possesses or lacks INTRINSIC VALUE. An option with moneyness is said to be IN-THE-MONEY and has intrinsic value; an option without moneyness is OUT-OF-THE-MONEY and has no intrinsic value.,palgrave,0,45.25,11.3,0,11.6,12.1,7.21,12.25,10.43
MONOLINE INSURER,"An INSURER that provides CREDIT enhancement (or WRAP) via GUARANTEES for MUNICIPAL BONDS and ASSET-BACKED SECURITIES (ABS), based on its ability to maintain a strong CREDIT RATING (e.g., AAA) of its own. If the bond or ABS being secured does not pay INVESTORS contractual INTEREST and PRINCIPAL, the monoline insurer is required to do so, and must therefore have a sufficiency of CAPITAL to meet obligations. Also known as MONOLINER.",palgrave,0,39.37,13.6,15.9,11.84,14.7,11.78,16.66666667,16.18
MONOLINE POLICY,"An INSURANCE CONTRACT that only covers one LINE or class of RISK. If a loss occurs in the referenced PERIL, the INSURED is covered to a net amount that reflects a DEDUCTIBLE and POLICY CAP. See also MULTILINE POLICY.",palgrave,0,66.74,7.2,10.5,7.7,6.5,9.54,7.166666667,9.3
MONOLINER,See MONOLINE INSURER.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
MONOPSONY,"A market that features only one buyer of goods or services, suggesting the buyer has an ability to influence the prices paid to suppliers. See also DUOPSONY, MONOPOLY, OLIGOPSONY.",palgrave,0,48.3,10.1,0,11.3,10.4,10.35,8.75,12.7
MONTE CARLO SIMULATION,"A computer-intensive statistical process that generates ASSET paths based on user-defined inputs and drawings from a ran- dom number generator. Monte Carlo simulation is widely used for pricing DERIVATIVES, computing CREDIT RISK exposures and scenarios, and measur- ing PORTFOLIO RISKS. See also SIMULATION.",palgrave,0,23.12,13.6,14.1,16.64,14.7,14.99,10.83333333,15.95
MORAL HAZARD,"Altering behavior by becoming less conservative and more reckless, knowing that INSURANCE or RISK protection exists to com- pensate for damage or loss. INSURERS attempt to protect against moral hazardby remaining diligent in the UNDERWRITING procedures and requiring prospective INSUREDS to bear a portion of the economic exposure through DEDUCTIBLES, COINSURANCE, and/or POLICY CAPS. See also ADVERSE SELECTION.",palgrave,0,26.51,14.4,16.7,17.4,17.1,13.03,15.33333333,18.75
MORAL SUASION,"The process of attempting to convince institutions (e.g., BANKS) to follow a particular policy or set of actions, without specifically mandating such through laws, rules, or REGULATIONS. Moral suasion may be used by a CENTRAL BANK or monetary authority in the pursuit of a specificMONETARY POLICY.",palgrave,0,31.21,14.6,0,13.52,15.9,12.33,17,17.9
MORATORIUM,"A sovereign suspension of INTEREST and/or PRINCIPAL pay- ments on DEBT, and a direct manifestation of SOVEREIGN RISK. Declaration of a moratorium, which may apply to all or selected classes of debt, is generally considered an EVENT OF DEFAULT under CREDIT agreements and may ultim- ately lead to a RESCHEDULING of payment terms and a write-off of the debt by the LENDERS/INVESTORS.",palgrave,0,31.55,16.6,0,12.31,18.4,11.54,21.5,18.85
MORNING NOTES,Late-breaking research information conveyed to INVESTORS by research analysts of INVESTMENT BANKS and SECURITIES FIRMS during morning conference calls.,palgrave,0,9.89,16.6,0,22.68,21,14.55,15.5,18.13
MORTGAGE BOND,See MORTGAGE-BACKED BOND.,palgrave,0,59.97,5.6,0,15.03,16.2,19.58,1.5,1.2
MORTGAGE DEBENTURE,A LOAN granted by a BANK or other FINANCIAL INSTITUTION that is secured on a specific real property of the BORROWER.,palgrave,0,41.7,12.7,0,8.94,10.6,9.94,15.5,17.92
MORTGAGEE,A LENDER of funds who takes as SECURITY a pledge of some underlying property. See also MORTGAGOR.,palgrave,0,62.85,6.6,0,7.62,5.2,11.49,4.75,10.46
MORTGAGEE IN POSSESSION,A LENDER that has completed FORE- CLOSURE on a MORTGAGE in DEFAULT and assumes control of the underlying property. As mortgagee in possession the lender is entitled to any INCOME produced by the property and to any proceeds generated upon its sale.,palgrave,0,50.16,11.5,0,10.91,12.3,10.69,14,14.11
MORTGAGOR,A BORROWER of funds who pledges an underlying property as SECURITY. See also MORTGAGEE.,palgrave,0,38.99,9.6,0,9.87,7,11.88,4.5,14.23
MOS,See MUTUAL OFFSET SYSTEM.,palgrave,0,33.58,9.6,0,7.25,6.5,15.68,2,11.6
MOST FAVORED NATION (MFN),"Favorable TRADE status granted to cer- tain nations, where IMPORTS from trading partner countries are treated no less favorably than imports from other countries, and no other foreign goods face a lower TARIFF than the partner country. Countries seek MFN status in order to bolster their trade activities and ultimately expand their own GROSS DOMESTIC PRODUCT.",palgrave,0,43.06,14.2,0,14.1,18.2,11.23,16.5,14.77
MOVING AVERAGE,"A TECHNICAL ANALYSIS charting technique that computes the average price of a SECURITY or INDEX over a particular time period, depicting general upward or downward trends. The averaging period rolls with each new observation period, which is generally set to daily, weekly, or monthly intervals.",palgrave,0,23.26,15.6,0,14.45,16,11.77,18.25,18.78
MPC,See MONETARY POLICY COMMITTEE.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,4,31.6
MPT,See MODERN PORTFOLIO THEORY.,palgrave,0,8.2,13.1,0,11.6,10,15.68,3,21.6
MTN,See MEDIUM-TERM NOTE.,palgrave,0,93.81,0.9,0,7.32,9.9,9.05,0.5,1.2
MUDARABA,A form of silent PARTNERSHIP used in ISLAMIC FINANCE. See also MUSHARAKA.,palgrave,0,65.39,5.6,0,8.17,5.9,9.2,3,9.07
MULTICURRENCY NOTE FACILITY,"A short- or medium-term EURONOTE facility that permits an ISSUER to float NOTES in any one of several CURRENCIES. Although the BORROWER can select the borrowing currency, the LENDER can demand repayment in another currency at MATURITY.",palgrave,0,35.78,12.9,0,13.11,13.2,10.96,14.25,14.97
MULTIFACTOR MODEL,"A type of mathematical model used in the pri- cing of INTEREST RATE DERIVATIVES in which all of the uncertainty related to the future movement of interest rates is captured by two or more factors. The factors vary by model and may include a short-term real interest rate and INFLATION, a short-term rate and a long-term rate, a short-term rate and amean-reverting drift parameter, a short-term rate and a volatility parameter, and so forth. See also FORWARD RATE MODEL, SHORT RATE MODEL, SINGLE FACTOR MODEL.",palgrave,0,42.75,14.3,14.6,10.86,16.2,9.13,18.16666667,15.56
MULTIFACTOR OPTION,See MULTI-INDEX OPTION.,palgrave,0,9.21,12.7,0,11.15,13,19.58,1.5,1.2
MULTIFACTOR RISK MODEL,"An ASSET pricing model used to estimate EXPECTED RETURNS on the basis of more than one RISK FACTOR. Common multifactor risk models include MACROECONOMIC FACTOR MODELS, STATISTICAL FACTOR MODELS, and FUNDAMENTAL FACTOR MODELS. The generic form of a linear factor model is given as:where ri is the asset return of the i-th asset, bix are the sensitivities to the com- mon risk factors, ei is the idiosyncratic return of the i-th asset. Also known as FACTOR MODEL. See also ARBITRAGE PRICING THEORY.",palgrave,0,46.37,10.9,11.2,10.84,10.6,10.03,10.2,11.44
MULTI-INDEX NOTE,"A STRUCTURED NOTE that pays INVESTORS an enhanced COUPON based on the performance of multiple INDEXES drawn from the same, or different, ASSET classes/markets. The most common multi- index notes are based on broad EQUITY indexes.",palgrave,0,53.21,10.3,0,12.7,13,12.42,12.5,11.64
MULTILATERAL DEVELOPMENT BANK,"A supranational organization that is constituted to provide financing and financial and economic advice, pri- marily to developing nations. Such institutions are generally funded through contributions from the governments of industrialized nations. See alsoAFRICAN DEVELOPMENT BANK, ASIAN DEVELOPMENT BANK, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, INTER-AMERICAN DEVELOPMENT BANK.",palgrave,0,-14.48,19.8,18.9,23.37,21.7,11.84,16.66666667,19.79
MULTILATERAL NETTING,"A form of NETTING between three or more COUNTERPARTIES. Since it involves more than two institutions, such netting is often carried out by an independent CLEARINGHOUSE or EXCHANGE. See also BILATERAL NETTING.",palgrave,0,52.15,8.6,10.5,12.91,10,8.11,6,10.53
MULTILINE POLICY,"An INSURANCE CONTRACT that covers multiple PERILS within the COMMERCIAL LINES areas. The standard multiline policy contains common policy declarations and conditions and details on specificcoverages, each with their own declarations and coverage forms. If a loss occurs in any of the mentioned perils, the INSURED is covered to a net amount that reflects a DEDUCTIBLE and POLICY CAP. Also known as MIXED PERIL CONTRACT, PACKAGE POLICY. See also MONOLINE POLICY, MULTIPLE PERIL POLICY.",palgrave,0,39.53,11.4,13.3,13.62,12.1,10.56,10.6,10.78
MULTIPLE,See PRICE/EARNINGS RATIO.,palgrave,0,59.97,5.6,0,15.03,16.2,14.31,0.5,1.2
MULTIPLE BARRIER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION package that contains at least two BARRIER OPTIONS that cre- ate or extinguish an underlying EUROPEAN OPTION. Sine the multiple barrier option has two barriers the PROBABILITY of knock-in or knock- out increases. See also TWIN-IN BARRIER OPTION, TWIN-OUT BARRIER OPTION.",palgrave,0,39.33,11.5,14.6,14.38,13.4,9.29,11.5,13.11
MULTIPLE OPTION FACILITY (MOF),"A medium-term EURONOTE facility that allows an ISSUER to access funds in a range of CURRENCIES, reference INTEREST RATES, and MATURITIES. The range of options available to the BORROWER are contained within the MOF agreement.",palgrave,0,45.25,11.3,0,13.11,12.9,13.53,11.75,13.86
MULTIPLE STRIKE OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a PAYOFF based on the best or worst performing of a series of ASSETS, each with a specific STRIKE PRICE. Option references may be drawn from the same, or different, asset classes/markets. See also MULTI-INDEX OPTION.",palgrave,0,56.55,9,11.9,11.13,10.5,10.83,8.666666667,8.61
MULTIRISK PRODUCT,"An INSURANCE POLICY that combines multiple RISKS in a single structure, allowing the client to obtain a consolidated, and often cheaper and more efficient, RISK MANAGEMENT solution. See alsoMULTIPLE PERIL POLICY, MULTIPLE TRIGGER PRODUCT.",palgrave,0,20.38,14.6,0,16.35,15.5,13.3,14,17.39
MULTITRADING FACILITY,"Any alternative or electronic EXCHANGE for TRADING of SECURITIES, permissible in Europe under the MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE.",palgrave,0,1.43,17.8,0,19.67,18.5,12.89,16.5,22.34
MUNICIPAL BOND INSURANCE,"An INSURANCE CONTRACT written by an INSURER (e.g., a MONOLINE INSURER) to cover an event of DEFAULT by the ISSUER of a MUNICIPAL BOND. The insurance, which may assume the form of a FINANCIAL GUARANTEE, is designed to protect INVESTORS from loss of PRINCIPAL and/or COUPON interest.",palgrave,0,47.62,12.5,0,10.8,13.9,11.19,16.25,15.36
MURABAHA,"A TRUST sale scheme used in ISLAMIC FINANCE, where a FINANCING is structured as a credit sales contract with a markup over a negotiated invoice price. See also IJARA, SALAM, SUKUK.",palgrave,0,64.2,8.2,0,9.57,9.1,11.54,8.25,10.07
MUSHARAKA,A form of simple PARTNERSHIP used in ISLAMIC FINANCE. See also MUDARABA.,palgrave,0,48.47,8,0,7.7,5.5,9.2,3.5,12.4
MUTUAL ASSENT,A condition that only permits a CONTRACT to become valid when both parties have agreed to the terms and conditions.,palgrave,0,59.64,9.9,0,10.27,11.2,10.94,12,12
MUTUAL OFFSET SYSTEM (MOS),"A formal arrangement between two EXCHANGES where EXCHANGE-TRADED DERIVATIVE CONTRACTS initiated on one exchange can be transferred to, or closed out on, another exchange. The MOS extends TRADING hours significantly, and can increase the LIQUIDITY of a given contract. In order for the MOS mechanism to work the contracts on the participating exchanges must be fungible.",palgrave,0,35.57,12.9,13.6,14.5,14.3,10.2,12.66666667,13.19
MUTUAL ORGANIZATION,"A corporate structure where members, rather than external INVESTORS, own the organization. Although the mutual has the advantage of limiting external influence on corporate affairs, it generally caps the amount of CAPITAL that is available for expansion.",palgrave,0,27.32,14,0,16.13,15.6,11.38,15.25,17.13
N.A.,See NATIONAL ASSOCIATION.,palgrave,0,-50.02,21,0,16.95,16.2,14.31,2.5,27.87
NAAMLOZE VENNOOTSCHAP (NV),"In the Netherlands and Belgium, a CORPORATION that is publicly traded. In the Netherlands Antilles, a SUBSIDIARY established as a TAX SHELTER.",palgrave,0,60.31,7.6,0,12.39,10,10.64,5.5,8.04
NAKED CALL,"An OPTION position where the seller of a CALL OPTION does not own the UNDERLYING ASSET that must be delivered if the buyer EXERCISES the CONTRACT. Selling naked calls is generally a high RISK strat- egy since the seller must acquire the asset in the open market should exercise occur, at a prevailing price that will be higher than the STRIKE PRICE. See alsoCOVERED CALL, NAKED OPTION, NAKED PUT.",palgrave,0,56.59,11.1,12.5,9.99,12.4,10.04,14.16666667,13.84
NAKED DEBENTURE,"In the United Kingdom, a DEBENTURE that is not secured.",palgrave,0,78.25,4.8,0,6.76,5.2,7.29,4,4
NAKED OPTION,"An OPTION position where the seller of the option does not own the UNDERLYING ASSET or cash that must be delivered if the buyer EXERCISES the CONTRACT. Selling naked options is generally a high RISK strategy since the seller must acquire the underlying asset in the open market or source cash should exercise occur. Also known as UNCOVERED OPTION. See also COVERED OPTION, NAKED CALL, NAKED PUT, NAKED N WRITER.",palgrave,0,53.71,10.1,11.7,10.21,10.4,9.69,11,11.57
NAKED POSITION,"An outright LONG POSITION or SHORT POSITION that is not protected by an offsetting HEDGE. A naked position may be exposed to elements of MARKET RISK, CREDIT RISK, and/or LIQUIDITY RISK. See alsoCOVERED POSITION.COVERED PUT, NAKED CALL, NAKED OPTION.",palgrave,0,49.82,9.5,13,11.88,10.6,9.95,8.5,11.35
NAKED SHORTING,An illegal SHORT SALE of SECURITIES that are not cer- tain to exist. In certain jurisdictions parties contemplating a short sale must first confirm that sufficient securities exist and can be borrowed to fulfill the short.,palgrave,0,53.21,10.3,0,12.06,12,9.79,12,12.76
NAKED SWAP,"A SWAP transaction that creates a LONG POSITION or SHORT POSITION in a series of CASH FLOWS, without any offsetting position from other sources.",palgrave,0,47.12,12.7,0,11.78,14.3,10.09,17,14.6
NAKED WRITER,The seller of a NAKED OPTION that does not have the UNDERLYING ASSET (deliverable under a CALL OPTION) or sufficient cash on hand to acquire the asset (under a PUT OPTION) should EXERCISE occur. A naked writer attempts to earn PREMIUM income through a relatively high RISK strategy. See also COVERED WRITER.,palgrave,0,53.92,10,11.9,10.21,10.4,9.66,11,12.3
NAMED INSURED,The party in an INSURANCE POLICY that is designated as an INSURED.,palgrave,0,42.38,10.3,0,7.93,6.1,9.5,8,14.8
NAMED PERIL COVER,See NAMED PERIL POLICY.,palgrave,0,50.5,7.2,0,4.35,4.1,15.68,2,11.6
NAMED PERIL POLICY,"An INSURANCE POLICY that provides coverage only for PERILS that are specifically enumerated in the policy; coverage is thus much narrower than it is under an ALL RISKS POLICY, although the corre- sponding PREMIUM payable by the INSURED to the INSURER is smaller. Also known as NAMED PERIL COVER.",palgrave,0,38.15,14,0,11.67,14.6,11.3,17.75,16.33
NARROW MARKET,A market in a financial ASSET or COMMODITY that is not actively traded.,palgrave,0,41.36,10.7,0,7.7,6.5,10.35,8.5,14.43
NARROW MONEY,"The narrow definition of MONEY SUPPLY, often meas- ured through M1. See also BROAD MONEY.",palgrave,0,63.86,6.2,0,7.79,5.9,9.27,3.25,5.67
NASD,See NATIONAL ASSOCIATION OF SECURITIES DEALERS.,palgrave,0,-27.68,18.6,0,18.78,14.5,14.46,5,22.4
NASDAQ 100,A BENCHMARK technology INDEX comprised of 100 LARGE CAP STOCKS in the technology sector. The index can be traded directly through EXCHANGE-TRADED FUNDS and DERIVATIVES.,palgrave,0,41.87,10.5,0,14.54,11.9,11.2,7.75,9.8
NATIONAL ASSOCIATION (N.A.),"In the United States, a term appended to certain federally chartered BANKS, which are required by REGULATORS to include the term “national” in their names.",palgrave,0,46.1,13,0,12.71,15.8,10.56,16.5,16.4
NATIONAL BANK,"In the United States, a BANK that holds a Federal charter and is a part of the FEDERAL RESERVE SYSTEM and the FEDERAL DEPOSIT INSURANCE CORPORATION.",palgrave,0,45.09,13.4,0,9.99,13.8,9.18,18,15.02
NATIONAL DEBT,"The cumulative total of a country’s borrowing, both domes- tically and offshore, which arises from annual deficit spending. Responsibility for managing the national debt is generally assigned to a country’s CENTRAL BANK or monetary authority.",palgrave,0,28.33,13.7,0,16.06,15.3,13.53,13.25,17.29
NATIONAL MARKET SYSTEM (NMS),"In the United States, an electronic sys- tem created in 1975 to link different STOCK EXCHANGES, giving INVESTORS access to consolidated information on the prices of individual STOCKS. NMS continues to provide, through its Intermarket Trading System, access to price and volume data.",palgrave,0,32.73,14,0,14.16,15.6,12.78,14.75,15.11
NATIONALIZATION,"A process where a government assumes control of a specific company or sector in order to achieve specific political or economic goals. See also EXPROPRIATION, PRIVATIZATION.",palgrave,0,24.44,13.1,0,14.2,11.9,10.96,10.5,12.89
NATURAL,See CLEAN.,palgrave,0,120.21,-3.1,0,-7.41,0.8,0.1,0,0.8
NAV,See NET ASSET VALUE.,palgrave,0,75.88,3.7,0,0,0.6,7.78,1,1.6
NBBO,See NATIONAL BEST BID AND OFFER.,palgrave,0,73.85,4.5,0,4.28,2.8,6.57,3,9.07
NCD,See NEGOTIABLE CERTIFICATE OF DEPOSIT.,palgrave,0,32.56,10,0,16.56,13.1,10.2,3.5,18
NEAR MONEY,"ASSETS that are nearly equivalent to cash, meaning they can be liquidated immediately at carrying value, but which still generate a small YIELD or RETURN. Common examples of near money include short-term GOVERNMENT BILLS, COMMERCIAL PAPER, BANKER’S ACCEPTANCES, and sight DEPOSITS. See also L, M0, M1, M2, M3.",palgrave,0,46.78,10.7,13,12.53,12.3,11.34,11,13.07
NEARBY CONTRACT,"The current, or closest, EXCHANGE-TRADED DERIVATIVE on a reference ASSET, generally the most LIQUID until several days or weeks prior to EXPIRY, when participants often begin rolling posi- tions into the NEXT . Also known as FRONT MONTH, PROMPT MONTH.",palgrave,0,43.22,12.1,0,12.94,13.9,11.49,13,11.9
NEGATIVE AMORTIZATION LOAN,"A LOAN where the periodic payment made is less than the INTEREST being charged, and where the difference is added to the outstanding PRINCIPAL balance. Negative amortization loans are specifically agreed between BORROWER and LENDER, and are often associ- ated with certain types of MORTGAGES, such as a GRADUATED PAYMENT MORTGAGE.",palgrave,0,37.13,14.4,0,14.16,17.2,11.09,18.25,18.04
NEGATIVE BASIS,(1) A market state where the price of the cash or SPOT MARKET SECURITY is below the price of the underlying FUTURES CONTRACT.NEGATIVE BASIS TRADE.,palgrave,0,46.1,13,0,10.39,14.1,9.3,15.5,14.8
NEGATIVE BASIS TRADE,"An ARBITRAGE TRADE created when a NEGATIVE BASIS exists between a REFERENCE CREDIT’s CREDIT DEFAULT SWAP (CDS) and its BOND. Under this strategy an INVESTOR can buy the bond and buy the CDS, earning a POSITIVE CARRY.",palgrave,0,52.7,10.5,0,10.15,10.7,11.38,12.25,13.89
NEGATIVE CARRY,"Any transaction or TRADE where the RETURNS gener- ated by an ASSET are smaller than the costs of financing and storing the asset. See also CARRY, CARRY TRADE, POSITIVE CARRY.",palgrave,0,56.25,9.1,0,9.21,8.8,9.64,8,10
NEGATIVE CONVEXITY,"A characteristic of certain financial ASSETS where losses are greater, and gains are smaller, than those of linear CONTRACTS or those with POSITIVE CONVEXITY. SHORT OPTIONS and certain types of MORTGAGE-BACKED SECURITIES (e.g., INTEREST-ONLY STRIPS) feature nega- tive convexity. See also NEGATIVE GAMMA, NONLINEAR INSTRUMENT.",palgrave,0,30.87,12.7,14.1,16.7,15.6,13.85,11.16666667,14
NEGATIVE EQUITY,"(1) A financial state when the value of an ASSET is worth less than the amount of financing used to acquire the asset, e.g., a property whose value is less than the MORTGAGE. (2) See NEGATIVE NET WORTH.",palgrave,0,49.83,15.8,0,6.98,18,10.09,23,19.41
NEGATIVE GAP,"A general measure of a company’s exposure to INTEREST RATE REPRICING RISK. A negative gap arises when RATE SENSITIVE LIABILITIES reprice faster than its ASSETS (e.g., have shorter DURATION), and means the firm will experience a loss if rates rise and a gain if rates fall. Also known as LIABILITY SENSITIVE. See also GAP, GAPPING, POSITIVE GAP.MOMENTUM TRADING.",palgrave,0,48.3,10.1,13.4,11.24,10.5,11.16,10.5,13.39
NEGATIVE NET WORTH,"A financial state where the value of an individual’s or company’s LIABILITIES exceed the value of ASSETS, indicating a state of INSOLVENCY. Also known as NEGATIVE EQUITY.",palgrave,0,23.93,13.3,0,12.4,10.4,10.15,10.75,17.25
NEGATIVE OBLIGATION,"The duty for a SPECIALIST or MARKET MAKER dealing in a COMMON STOCK not to take one side of an ORDER on a pro- prietary basis when it can be matched directly with another order. See alsoAFFIRMATIVE OBLIGATION, INTERPOSITIONING.",palgrave,0,43.22,12.1,0,10.21,11.2,9.46,12.75,12.93
NEGATIVE PLEDGE,"A COVENANT in a LOAN agreement or BOND INDENTURE that prohibits a BORROWER from pledging unencumbered ASSETS in support of new FINANCING unless existing debt holders remain equally secured and/or their seniority rankings remain unchanged. If a bor- rower violates the negative pledge, existing debt holders can generally demand repayment of their funds.",palgrave,0,27.66,16,0,15.38,18.6,13.29,18.75,18.15
NEGATIVE WORKING CAPITAL,"A financial state where a company’s CURRENT LIABILITIES exceed its CURRENT ASSETS. Negative working cap- ital generally indicates the presence of LIQUIDITY problems, since insufficient assets exist to cover obligations coming due. See also NET WORKING CAPITAL, POSITIVE WORKING CAPITAL.",palgrave,0,15.68,14.4,14.6,16.81,14.3,11.4,10.66666667,15.32
NEGATIVE YIELD CURVE,"A TERM STRUCTURE where short-term INTEREST RATES are higher than long-term interest rates. A negative curve may be caused by strong demand for short-term CREDIT, high INFLATION, and/or weak INVESTOR confidence. Also known as INVERTED YIELD CURVE. See also FLAT YIELD CURVE, KINKED YIELD CURVE, POSITIVE YIELD CURVE, YIELD CURVE.",palgrave,0,67.25,7,10.7,12.69,11.1,8.99,7,9.8
NEGLIGENCE,"A failure to use reasonable care or diligence in executing a particular action or duty, and which may lead to particular damages. See alsoDUTY OF CARE.",palgrave,0,49.82,9.5,0,9.27,7.9,9.14,8,11.35
NEGOTIABLE INSTRUMENT,"A written order, such as a BILL OF EXCHANGE, PROMISSORY NOTE, or CHECK, which is signed by the endorser as beingpayable to the holder/bearer without conditions. See also NONNEGOTIABLE INSTRUMENT.",palgrave,0,56.25,9.1,0,12.87,12.1,8.59,11,14
NEGOTIATED SWAP,"A CORPORATE FINANCE transaction involving an exchange of ASSETS (e.g., a SUBSIDIARY, company, or block of SHARES) between two parties. Use of a negotiated swap is an efficient way for a firm to substitute assets that it no longer requires for others that may represent a better strategic fit.",palgrave,0,46.61,12.8,0,10.86,14.3,11.3,16.25,15.51
NEGOTIATED UNDERWRITING,"A noncompetitive UNDERWRITING of a NEW ISSUE of SECURITIES where the ISSUER and UNDERWRITER agree in advance on an appropriate UNDERWRITING SPREAD, deal size, and distribu- tion strategy. See also COMPETITIVE BID UNDERWRITING.",palgrave,0,20.89,14.4,0,15.66,14.5,10.2,12.75,15.08
NESTED OPTION,See COMPOUND OPTION.,palgrave,0,59.97,5.6,0,7.32,8.3,14.31,0.5,1.2
NET ASSET VALUE (NAV),"The per SHARE market price of a MUTUAL FUND or CLOSED-END FUND, generally based on the previous day’s closing prices for the underlying ASSETS held in the fund. NAV can be computed via:where SecMV is the MARKET VALUE of quoted SECURITIES in the PORTFOLIO, Cash is cash on hand, AI is ACCRUED INTEREST, Liab is LIABILITIES, and OS is the number of outstanding SHARES in the fund.",palgrave,0,45.93,15.2,0,9.53,17.3,11.66,21.75,19.37
NET ASSETS,"In the United Kingdom, total ASSETS less CURRENT LIABILITIES. In other jurisdictions the net assets computation also deducts from total assets all medium- and long-term liabilities.",palgrave,0,24.44,13.1,0,15.53,13.3,9.14,7.5,9.82
NET BOOK VALUE,"The value of an ASSET on the corporate BALANCE SHEET, typically reflecting the original cost of purchase or the latest valuation, less accumulated DEPRECIATION. Also known as BOOK VALUE, DEPRECIATED VALUE.",palgrave,0,21.9,14.1,0,14.21,12.9,10.52,11.75,16.52
NET BORROWED RESERVES,"In the United States, the amount a BANK has borrowed from the FEDERAL RESERVE SYSTEM minus the amount of RESERVES it holds above the required minimum. See also NONBORROWED RESERVES.",palgrave,0,64.71,8,0,10.95,9.9,9.64,8,10
NET CAPITAL,A company’s NET WORTH less any additional deductions taken to reflect difficulty in selling ASSETS at their stated value. See also  RATIO.,palgrave,0,34.93,11.1,0,11.58,8.9,10.64,6.5,11.67
NET CAPITAL RATIO,"In the United States, a measure of LEVERAGE applied by the SECURITIES AND EXCHANGE COMMISSION to BROKER/DEALERS that limits to 15 times the ratio of indebtedness to LIQUID ASSETS. See alsoNET CAPITAL.",palgrave,0,46.78,10.7,0,12.35,11.4,11.34,10.5,10.15
NET CURRENT ASSETS,See WORKING CAPITAL.,palgrave,0,34.59,9.2,0,7.32,8.3,9.05,1.5,1.2
NET EARNINGS,See NET INCOME.,palgrave,0,93.81,0.9,0,-2.38,0.5,0.15,0.5,1.2
NET INCOME,"The final result of a company’s operations, prior to distribu- tion of DIVIDENDS or allocation to RETAINED EARNINGS. Net income can be computed as OPERATING REVENUE less OPERATING EXPENSE less INTEREST and TAXES. Also known as NET EARNINGS, NET PROFIT.",palgrave,0,41.06,10.8,12.5,11.88,10.3,11.4,8.333333333,12.32
NET INTEREST MARGIN,"In banking, a measure of the INCOME differential between interest-generating ASSETS (e.g., LOANS, FIXED INCOME SECURITIES) and interest-bearing LIABILITIES required to fund the assets (e.g., DEPOSITS, REPURCHASE AGREEMENTS, BONDS), generally computed as:NIM = II – IEwhere II is INTEREST INCOME and IE is INTEREST EXPENSE.The larger the NIM, the greater the profitability of core banking operations. Also known as INTEREST RATE MARGIN.",palgrave,0,15.14,18.7,0,16.66,22.7,13.43,22,18.76
NET INVESTMENT,The total within an economic system of new CAPITAL INVESTMENTS less DEPRECIATION on existing investment.,palgrave,0,13.95,15,0,16.52,14.3,12.8,13.5,19.33
NET LEASE,"A form of LEASE in which the LESSEE is responsible for pay- ing the LESSOR lease rental payments as well as general EXPENSES, mainten- ance, and TAXES. CAPITAL LEASES are typically created as net leases, while OPERATING LEASES are not. See also GROSS LEASE.",palgrave,0,56.55,9,11.9,9.27,8.8,10.11,8.666666667,10.43
NET LINE LIMIT,The maximum amount of INSURANCE an INSURER will write on a given LINE of RISK; a limit is used to control the insurer’s exposure and cap potential losses.,palgrave,0,43.06,14.2,0,8.88,14,10.66,20,19.77
NET LOSS,"In INSURANCE, the actual loss sustained by an INSURER in meet- ing an INSURED’s CLAIMS, after taking account of REINSURANCE coverage and any amounts recovered via SUBROGATION or ABANDONMENT.",palgrave,0,25.12,17,0,14.92,19.4,12.7,22.5,22.63
NET NATIONAL PRODUCT (NNP),"The total of a country’s GROSS NAT- IONAL PRODUCT less DEPRECIATION on capital goods, where depreciation reflects the amount that must be invested on new capital goods to maintain the same level.TAXES.",palgrave,0,30.54,17,0,13.41,19.6,10.65,22,15.3
NET POSITION,The difference between a LONG POSITION and a SHORT POSITION in the same ASSET or SECURITY.,palgrave,0,46.78,10.7,0,9.28,8.7,7.39,12,11.4
NET PREMIUM,"The total amount of an INSURER’s PREMIUMS less premium ceded for any REINSURANCE cover. Also known as  WRITTEN, NET WRITTEN PREMIUM. See also FAIR PREMIUM, GROSS PREMIUM.where CFt is the expected cash flow at time t, r is the discount rate, n is the number of periods, and I0 is the original cost of the investment. Under NPV in general, if NPV > 0 the investment is expected to create shareholder value and should be accepted; if NPV < 0 the investment should be rejected, and if NPV = 0, then the company should be indifferent. See also PRESENT VALUE, FUTURE VALUE.",palgrave,0,51.38,11,14.6,8.88,10.6,8.77,14,12.77
NET PROFIT,See NET INCOME.,palgrave,0,93.81,0.9,0,-2.38,0.5,0.15,0.5,1.2
NET PROFIT MARGIN,"A measure of a company’s ability to transform its REVENUES into NET INCOME, typically calculated as:where EBITDA is EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION, Tax is taxes paid, and Rev is revenues.The greater the net profit margin, the stronger the operating efficiencies and cost control.",palgrave,0,-0.6,24.8,0,16.03,28.9,12.78,33,26.23
NET RESIDUAL VALUE,"The RESIDUAL VALUE of an ASSET, less any costs associated with disposal.",palgrave,0,42.38,10.3,0,10.37,8.5,10.81,8,14.8
NET RETAINED LINES,The net amount of INSURANCE held by an INSURER after taking account of any REINSURANCE coverage.,palgrave,0,46.78,10.7,0,11.42,10.4,8.38,12,16.4
NET SINGLE PREMIUM,"In INSURANCE, the core PREMIUM designed to cover the PRESENT VALUE of future CLAIMS, excluding any LOAD factor to account for costs or PROFIT margin.",palgrave,0,46.1,13,0,11.32,14.6,11.82,15.5,14.8
NET UNDERWRITING PROFIT,"In INSURANCE, a measure of profitability asso- ciated with core insurance UNDERWRITING business, generally computed as:NUP = PC&E – Divwhere PC&E is profit after CLAIMS and EXPENSES, and Div is policy holderDIVIDENDS.The greater the net underwriting profit, the stronger the INSURER’s core business.",palgrave,0,-5,24.4,0,17.6,28.4,13.99,32.5,25.37
NET WORTH,"The difference between an individual’s or company’s ASSETS and its LIABILITIES, and an indication of overall SOLVENCY. See also CAPITAL, NEGATIVE EQUITY.",palgrave,0,9.55,14.7,0,15.29,12.3,10.64,9,17.13
NET YIELD,The YIELD on a SECURITY or INVESTMENT after deducting TAXES and costs associated with acquiring the ASSET. See also GROSS YIELD.,palgrave,0,43.9,9.7,0,10.53,8,11.68,6.75,13.72
NEWLY INDUSTRIALIZED COUNTRY (NIC),"A country that features a strong, and rapidly growing, industrial production base that contributessubstantially to both national INCOME and EXPORTS. NICs generally pos- sess greater industrial development and exports than LESSER DEVELOPED COUNTRIES.",palgrave,0,20.89,14.4,0,19.66,17.8,12.11,12.25,15.08
NEXT NEARBY CONTRACT,"An EXCHANGE-TRADED DERIVATIVE on a reference ASSET with the second closest MATURITY. Though generally not as actively traded as the NEARBY CONTRACT, the next nearby is usually very LIQUID and becomes even more liquid as the nearby contract approaches MATURITY and participants start rolling their positions.",palgrave,0,22.75,15.8,0,15.55,16.9,10.27,17,17.03
NIC,See NEWLY INDUSTRIALIZED COUNTRY.,palgrave,0,-8.73,15.5,0,18.85,15.9,11.73,2,11.6
NIF,See NOTE ISSUANCE FACILITY.,palgrave,0,33.58,9.6,0,10.15,8.8,11.73,2,11.6
NIFTY FIFTY,The top 50 COMMON STOCK holdings of large US INSTITUTIONAL INVESTORS; the list changes periodically but generally includes a core of BLUE CHIP stocks that INVESTORS hold for the long term.,palgrave,0,48.47,14.2,0,12.49,18.1,10.78,18.5,16.27
NIKKEI 225,"One of two BENCHMARK INDEXES of the Japanese STOCK mar- ket (along with the TOKYO STOCK PRICE INDEX), comprised of 225 LARGE CAP STOCKS listed on the TOKYO STOCK EXCHANGE. The Nikkei 225, which is a PRICE-WEIGHTED INDEX, can be traded directly through EXCHANGE- TRADED FUNDS and DERIVATIVES.",palgrave,0,64.04,10.3,0,11.32,14.5,10.42,14,12.93
NINJA LOAN,"A LOAN, often a residential MORTGAGE, granted to a BORROWER with “no income, no job, or assets,” i.e., an applicant with poten- tially poor CREDITWORTHINESS. Ninja mortgage loans have historically been part of the SUBPRIME MORTGAGE sector.",palgrave,0,44.24,11.7,0,12.82,13.7,10.96,12.25,12.81
NIPPON KEIDANREN,See KEIDANREN.,palgrave,0,35.61,8.8,0,4.2,10.2,11.63,1,20.8
NMS,See NATIONAL MARKET SYSTEM.,palgrave,0,33.58,9.6,0,10.15,8.8,11.73,2,11.6
NNP,See NET NATIONAL PRODUCT.,palgrave,0,50.5,7.2,0,7.25,6.5,11.73,2,11.6
NO ARBITRAGE CONDITION,A key theory of FINANCE that indicates that RISK-free EXCESS RETURNS cannot be obtained in the financial marketplace.,palgrave,0,36.28,12.7,0,13.98,13.8,12.42,13,16.09
NO-LOAD FUND,"A MUTUAL FUND that does not carry a sales COMMISSION charge (or LOAD). Despite the lack of a commission no-load funds are not always cheaper than LOAD FUNDS, as they may feature higher annual man- agement fees or exit fees. See also NET ASSET VALUE.",palgrave,0,73.17,6.8,9.7,7.53,7.5,9.29,7.833333333,8.67
NOMINAL,See NOTIONAL.,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,1,20.8
NOMINAL CAPITAL,See AUTHORIZED CAPITAL.,palgrave,0,9.21,12.7,0,13.12,13,9.05,2.5,14.53
NOMINAL INTEREST RATE,"A measure of the level of INTEREST RATES, computed as the REAL INTEREST RATE plus INFLATION.",palgrave,0,46.78,10.7,0,9.63,9.2,9.36,12,13.9
NOMINAL PRICE,"The price of a SECURITY at the time it is issued, generally equal to some defined PAR VALUE. In most cases the nominal price has little or no relationship to the MARKET VALUE of the security, particularly over time.",palgrave,0,51.68,10.9,0,8.47,9.7,8.25,12.75,12.93
NOMINEE,"A party acting as registered owner of SECURITIES (i.e., the holder of record) on behalf of a client, either for ease of EXECUTION/transfer or for reasons related to client anonymity. BROKERS commonly act as nominees by holding client securities in STREET NAME.",palgrave,0,41.7,12.7,0,11.72,13.6,10.69,14,14.11
NOMINEE SHAREHOLDER,A registered SHAREHOLDER who holds SHARES on behalf of a BENEFICIAL OWNER. Also known as INDIRECT SHAREHOLDER.,palgrave,0,45.93,9,0,12.03,8.9,10.56,5.75,12.81
NOMING THE PIPES,"Abbreviated form of “nominating the pipes,” a scheduling process in natural gas TRADING where physical delivery of gas is allocated through the network of interconnecting gas pipelines based on SUPPLY, DEMAND, time, and price constraints.",palgrave,0,19.03,19.3,0,16.31,23.5,13.04,25.5,23.14
NONACCRUAL LOAN,See NONPERFORMING LOAN.,palgrave,0,34.59,9.2,0,13.12,13,9.05,1.5,14.53
NONADMITTED INSURANCE,"An INSURANCE POLICY written by an INSURER that is not licensed in the state or jurisdiction where the INSURED’S RISK exists. Also known as UNAUTHORIZED INSURANCE. See also ADMITTED INSURANCE, SURPLUS LINES INSURANCE.",palgrave,0,43.39,9.9,13,13.15,10.4,9.92,7.5,11.67
NONADMITTED INSURER,An INSURER that is not licensed to sell an INSURANCE POLICY in a given state or jurisdiction. Also known as UNAUTH- ORIZED INSURER. See also ADMITTED INSURER.,palgrave,0,53.88,8,11.9,8.44,6.1,8.76,5.833333333,11.01
NONBORROWED RESERVES,"In the United States, the amount of RESERVES a BANK has created through its core business operations, rather than through specific borrowings from the FEDERAL RESERVE SYSTEM. See also NET BORROWED RESERVES.",palgrave,0,55.24,9.5,0,13.4,12.3,9.36,10.5,12.65
NONCALLABLE BOND,"A BOND that cannot be called or redeemed by the ISSUER prior to final MATURITY under any circumstances. A noncallable bond provides the INVESTOR with protection against REINVESTMENT RISK until final maturity. Also known as STRAIGHT BOND. See also CALL RISK,CALLABLE BOND, HARD CALL PROTECTION, SOFT CALL PROTECTION.",palgrave,0,59.3,8,10.7,13.38,10.9,9.17,6.75,8.13
NONCLEARING MEMBER,"An EXCHANGE member that is not permitted to clear TRADES directly with the CLEARINGHOUSE, and must therefore direct all CLEARING activities through a CLEARING MEMBER.",palgrave,0,46.1,13,0,15.5,17.8,9.3,16.5,16.4
NONCOMPETITIVE BID,"In an AUCTION MARKET, a BID that is not placed in competition with other bids. Noncompetitive bids are generally filled at the average price of the COMPETITIVE BIDS.",palgrave,0,57.27,8.8,0,10.08,8.8,9.41,8.5,12.74
NONCOMPETITIVE TRADING,"An illegal practice where a DEALER or MARKET MAKER executes a client ORDER within a proprietary account, with- out first exposing it to the market. Noncompetitive trading reduces transpar- ency into order flows and allows dealers to profit at the expense of clients.",palgrave,0,41.19,12.9,0,12.24,13.9,12.05,13.25,13.25
NONCONCURRENCY,"A situation where an INSURED’s multiple INSURANCE policies are not properly structured or synchronized, and fail to provide com- prehensive cover in the event of a loss.",palgrave,0,35.61,15,0,13.12,17,11.99,19.5,19.69
NONCONFORMING LOAN,"A residential MORTGAGE that exceeds stand- ard specifications related to size and LOAN-TO-VALUE established for inclu- sion in a POOL of PASS-THROUGH SECURITIES (such as those created byFEDERAL NATIONAL MORTGAGE ASSOCIATION, GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, or FEDERAL HOME LOAN MORTGAGE CORPORATION). If a mortgage originator wishes to securitize nonconforming loans, it must generally do so through a private label CONDUIT sponsored and managed by a financial institution.",palgrave,0,3.63,21.1,0,18.34,24.6,12.13,27.25,23.55
NONCONTRIBUTORY PENSION,"A PENSION scheme where the sponsor- ing company makes all contributions to the account and the employee makes none.CONVERTIBILITY, CONVERTIBLE CURRENCY, EXCHANGE CONTROLS.",palgrave,0,22.75,15.8,0,19.32,20.6,12.33,17.5,17.9
NONDEAL ROADSHOW,"A ROADSHOW that is conducted by a com- pany (or other organization) with the aim of updating potential current and future INVESTORS on the state of financial and strategic topics, with- out being specifically associated with a definite and planned NEW ISSUE ofSECURITIES.",palgrave,0,10.91,22.4,0,13.71,25.2,12.75,30.5,25.57
NONDISPLAYED LIQUIDITY,"Trading volume, particularly in STOCKS, that is not displayed to the market, but which is available for EXECUTION. Nondisplayed liquidity, which in total comprises the DARK POOL sector, maybe held within EXCHANGES in the form of RESERVE ORDERS and HIDDEN ORDERS or on the books of SPECIALISTS, or within dedicated venues, such as ELECTRONIC COMMUNICATIONS NETWORKS and CROSSING NETWORKS. Also known as DARK LIQUIDITY. See also DISPLAYED LIQUIDITY.",palgrave,0,45.76,11.1,12.2,13.92,13.4,9.82,11,11.51
NONDIVERSIFIABLE RISK,"A RISK that is common to all companies, ASSETS, or markets and cannot therefore be reduced or eliminated through DIVERSIFICATION. Also known as SYSTEMATIC RISK. See also DIVERSIFIABLE RISK",palgrave,0,36.25,10.6,10.5,12.44,9.4,10.11,5.5,10.78
NONDURABLE GOOD,"An ASSET that has a life span of less than three years and which tends to be consumed immediately, e.g., food, clothing. Nondurable goods form part of the PERSONAL CONSUMPTION component of GROSS DOMESTIC PRODUCT (and GROSS NATIONAL PRODUCT). See also CAPITAL GOOD, DURABLE GOOD.",palgrave,0,64.71,8,11.9,10.9,10.6,10.35,8.833333333,11.33
NONEQUITY SHARE,"A form of CAPITAL that contains features of both DEBT and EQUITY, but which is defined for ACCOUNTING purposes as a SHARE that is redeemable, where DIVIDEND rights exist for a finite time period, and where the participation in any proceeds generated through LIQUIDATION are limited.",palgrave,0,16.33,22.4,0,13.01,25.8,12.1,33,26.23
NONEXECUTIVE DIRECTOR,"In the United Kingdom and various other European countries, a DIRECTOR who is not a member of the EXECUTIVE MANAGEMENT team and, presuming no conflicts of interest, may be consid- ered to be independent from a GOVERNANCE perspective. See also EXECUTIVE DIRECTOR, LEAD INDEPENDENT DIRECTOR.",palgrave,0,23.26,15.6,0,13.7,15.4,9.66,18.25,17.89
NONINSURANCE TRANSFER,"A RISK TRANSFER technique that makes use of contractual relationships, such as HOLD HARMLESS AGREEMENTS or PRINCIPAL/AGENT relations, rather than traditional INSURANCE arrangements.",palgrave,0,14.29,17,0,22.11,22.6,14.39,18.5,21.37
NONLIFE INSURANCE,"In Europe, INSURANCE coverage for damage or loss to property, which includes both personal line coverage and commercial line coverage. See also GENERAL INSURANCE, PROPERTY AND CASUALTY INSURANCE.",palgrave,0,23.43,13.5,0,15.88,13.8,8.84,13,14.17
NONLINEAR INSTRUMENT,"A financial CONTRACT, such as an OPTION or WARRANT, with a payout that varies with changes in the movement of the UNDERLYING reference market or ASSET. A unit change in the value of the reference leads to a greater than unit change in the contract, which may be positive or negative depending on whether the instrument has POSITIVECONVEXITY or NEGATIVE CONVEXITY. See also CONVEXITY, GAMMA, LINEAR INSTRUMENT, NEGATIVE GAMMA, POSITIVE GAMMA.",palgrave,0,38.96,13.7,15.9,12.48,15,9.93,16.83333333,14.55
NONLINEAR PAYOFF,"A nonlinear economic gain or loss that may be expected under a DERIVATIVE (e.g., EXOTIC OPTION) for a given range of market prices. For every unit move up or down in the market price, the gain or loss is a nonlinear function of that unit move. See also ASYMMETRIC PAYOFF, LINEAR PAYOFF, SYMMETRIC PAYOFF.",palgrave,0,61.67,9.1,12.5,8.18,9.5,9.21,11.66666667,12.39
NONNEGOTIABLE INSTRUMENT,"Any financial instrument which can- not be assigned or transferred to another party, such as those with restrictive endorsements or defined PAYEES. See also NEGOTIABLE INSTRUMENT.",palgrave,0,41.36,10.7,0,15.3,13,9.75,9,12.89
NONPAR SWAP,"An OVER-THE-COUNTER SWAP, such as a PREMIUM SWAP or DISCOUNT SWAP, which is transacted at off-market INTEREST RATES. Also known as OFF-MARKET SWAP.PARTICIPATING GUARANTEED INVESTMENT CONTRACT, SYNTHETIC GUARANTEED INVESTMENT CONTRACT.",palgrave,0,22.41,13.9,0,19.83,18.2,10.17,13.5,15.33
NONPRIME LOAN,See SUBPRIME LOAN.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
NONPUBLIC INFORMATION,See INSIDE INFORMATION.,palgrave,0,9.21,12.7,0,13.12,13,9.05,1.5,14.53
NONPURPOSE LOAN,"A LOAN, collateralized by SECURITIES and subject to MARGIN rules, where the proceeds are not used to acquire additional secur- ities. See also PURPOSE LOAN.",palgrave,0,50.33,9.3,0,11.3,9.7,10.57,6.75,9.8
NONRECOMBINING TREE,"A LATTICE MODEL used to price OPTIONS where the assumed upward and downward movements are not equal. This yields an uneven or skewed lattice, and causes option value to be weighted more heavily in the direction of the larger market moves. See also BINOMIAL MODEL.",palgrave,0,64.71,8,8.8,9.85,9,9.99,7.5,7.78
NONRECOURSE,"The lack of a CLAIM on a contracting party. A nonrecourse transaction is dependent solely on the ASSETS or CASH FLOWS associated with the transaction, indicating that the financial position/capabilities of the sponsor or contracting party are irrelevant and cannot be considered. See alsoNONRECOURSE LOAN, RECOURSE.",palgrave,0,30.57,12.8,15,15.42,13.9,10.92,12,16.55
NONRECOURSE LOAN,"A LOAN with repayment that depends solely on the proceeds from the project or ASSET being financed, or the sale of spe- cific COLLATERAL supporting the transaction. The lending BANK has no abil- ity to seek repayment from the BORROWER in the event of a shortfall. See also FULL RECOURSE LOAN, NONRECOURSE, PARTIAL RECOURSE LOAN,RECOURSE.",palgrave,0,61.36,9.2,12.5,11.6,12,10.57,11.83333333,11.68
NONREFUNDABLE DEBT,"A BOND or NOTE that cannot be redeemed and replaced by alternative DEBT. In some instances the INDENTURE of a non- refundable bond will allow limited refunding, but only if INTEREST RATES decline to a particular level. See also CALL PROTECTION, NONCALLABLE BOND.",palgrave,0,48.5,10,12.5,11.01,9.9,10.59,8.833333333,13.16
NONSYSTEMATIC RISK,See DIVERSIFIABLE RISK.,palgrave,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
NONVOTING STOCK,"COMMON STOCK that carries standard RENT RIGHTS, but only limited CONTROL RIGHTS – including the right to obtain financial disclosure and file lawsuits, but not to vote. See also DISENFRAN-CHISING TRANSACTION.",palgrave,0,47.28,10.5,0,14.79,13.4,11.54,10.75,13.94
NOPAT,See NET OPERATING PROFIT AFTER TAX.,palgrave,0,48.47,8,0,7.18,5.1,9.2,3,9.07
NORMAL BACKWARDATION,"A market state where the SPOT PRICE on a FUTURE or FORWARD is higher than the FORWARD PRICE, often as a result of temporary ASSET shortages or an excess SUPPLY for future delivery. Also known as BACKWARDATION. See also CONTANGO.",palgrave,0,57.98,8.5,9.7,8.69,7.5,8.64,7,9.32
NORMAL DISTRIBUTION,"A continuous probability distribution function that focuses on data centered around the MEAN. The probability density func- tion is given as:p( x) =12s⎝where μ is the mean, and σ is the STANDARD DEVIATION.Given a mean of 0 and standard deviation of 1, the equation simplifies to:p( x) = 1 e 2s2pUnder the properties of the distribution, approximately 68% of observations lie within +/_x0010_ one standard deviation of the mean, 95% within approximately +/_x0010_ two standard deviations, and 99.7% within approximately +/_x0010_ three stand- ard deviations. The normal distribution is widely used in a variety of financial and ACTUARIAL PRICING techniques.Also known as GAUSSIAN DISTRIBUTION. See also LAW OF LARGE NUMBERS, LOGNORMAL DISTRIBUTION.",palgrave,0,17.88,17.7,17.7,14.28,19.4,11.42,24.33333333,16.53
NORMAL MARKET SIZE,"A method of classifying the TRADING volume of STOCKS on the United Kingdom’s LONDON STOCK EXCHANGE, based on 12 different categories. The classifications are used to impose certain require- ments on MARKET MAKERS and to set requirements for publishing transac- tion data.",palgrave,0,50.16,11.5,0,13.81,14.9,12.2,13.5,13.16
NOSTRO,"Literally “our account”; a local account a foreign BANK main- tains with a local bank to accommodate local CURRENCY business, e.g., a US bank has a yen nostro with a Japanese bank to manage its yen inflows and outflows. See also VOSTRO.",palgrave,0,58.62,10.3,0,8.53,10.9,10.69,13,12.21
NOTARY,"An official that is legally authorized to witness signatures and cer- tify the validity of a document. Also known as  PUBLIC.of several currencies; securities are often listed on an EXCHANGE, although most TRADING occurs OVER-THE-COUNTER. (2) A PROMISSORY NOTE. (3) A BANKNOTE. (1) See also BOND, EURONOTE, MEDIUM-TERM NOTE, EURO MEDIUM-TERM NOTE, FLOATING RATE NOTE, GOVERNMENT BOND, LEVERAGED NOTE, NOTE ISSUANCE FACILITY, STRUCTURED NOTE.",palgrave,0,22.08,18.1,0,15.04,22.3,12.38,22.5,18.43
NOTE ISSUANCE FACILITY (NIF),"A EURONOTE program where a BORROWER issues unsecured NOTES to INVESTORS via a TENDER PANEL. If the notes cannot be successfully placed, the underwriting BANKS agree to purchase them through the extension of medium-term LOANS, thus guar- anteeing the borrower good funds. See also REVOLVING UNDERWRITING FACILITY.",palgrave,0,47.08,10.6,13.6,14.38,13.1,12.48,11.16666667,13.09
NOTIONAL,"A common method of denominating the size, though not necessarily the RISK, of a DERIVATIVE transaction (generally SWAPS and FORWARDS). In most instances notional is used only as a reference to compute amounts payable and/or receivable, although for CURRENCY SWAPS the full notional is typically exchanged on TRADE date and at final MATURITY. Also known as NOMINAL,  PRINCIPAL.",palgrave,0,34.97,13.2,15.5,13.52,14,11.4,14.33333333,16.69
NOVATION,"A process where all contractual payments between two parties are amalgamated and settled during a particular interim period (monthly or quarterly). Remaining CONTRACTS are then rewritten at the current MARKET VALUE and the process is repeated during the next netting period. Novation creates greater efficiencies in the CASH FLOW settlement process. See alsoPAYMENT NETTING, RECOUPONING, SET-OFF.",palgrave,0,31.89,12.3,13.8,16.52,14.3,10.82,10.5,14.17
NOYAU DUR,The French concept of SHAREHOLDER loyalty; stakes taken by certain institutional or corporate shareholders in other companies with which they have long-standing ties or business relationships are used to support EXECUTIVE MANAGEMENT and DIRECTORS in their attempt to dir- ect the company.,palgrave,0,11.93,22,0,17.19,27.3,12.49,33,26.32
NPV MODEL,See CREDIT MARK-TO-MARKET MODEL.,palgrave,0,33.58,9.6,0,14.5,14.7,11.73,2,1.6
N-TH-TO-DEFAULT SWAP,"A generalized version of an OVER-THE-COUNTER DEFAULT SWAP comprised of a BASKET of REFERENCE ENTITIES that entitles the purchaser to a payout on the n-th one to DEFAULT, where n is agreed between the two parties to the CONTRACT in advance; once the n-th reference entity occurs, the transaction terminates. See also FIRST-TO-DEFAULT SWAP.",palgrave,0,44.07,13.8,0,12.42,16.9,10.82,19,16.73
NV,See NAAMLOZE VENNOOTSCHAP.,palgrave,0,59.97,5.6,0,18.92,17.8,14.31,0.5,1.2
NYSE,See NEW YORK STOCK EXCHANGE.,palgrave,0,100.24,0.5,0,4.96,3.7,7.04,1.5,2
NYSE EURONEXT,"An international HOLDING COMPANY formed from the 2007 MERGER of the NEW YORK STOCK EXCHANGE and EURONEXT, itselfthe product of a merger of the STOCK exchanges of Amsterdam, Brussels, Paris, and Lisbon, and the DERIVATIVES exchange London International Financial Futures and Options Exchange. The NYSE Euronext group exchanges are active in TRADING, SETTLEMENT, and CLEARING of stocks, BONDS, and a range of derivatives.",palgrave,0,31.04,16.8,0,15.15,21,11.72,19.75,15.14
OAS,See OPTION-ADJUSTED SPREAD.,palgrave,0,9.21,12.7,0,18.92,19.3,14.31,1.5,14.53
OBJECTIVE RISK,"A measure of the deviation between an INSURER’s actuallosses and its EXPECTED LOSSES (as predicted through ACTUARIAL PRICINGtechniques). The greater the objective risk, the larger the losses and the lessaccurate the pricing methodologies.",palgrave,0,29.35,13.3,0,17.75,16.2,11.63,13.25,18.72
OBLIGATION,The requirement of a BORROWER to repay a LENDER underthe terms of a CONTRACT.,palgrave,0,57.27,8.8,0,8.23,7.1,11.1,9,14.17
OBLIGATIONS FONCIERES,"In France, a form of COVERED BONDbacked by MORTGAGES, issued exclusively by Sociétés de Crédit Foncier.See also CEDULAS HIPOTECARIAS, HYPOTHEKENPFANDBRIEFE, IRISHASSET COVERED SECURITIES, JUMBO PFANDBRIEFE, LETTRES DE GAGE,OFFENTLICHE PFANDBRIEFE.",palgrave,0,25.12,17,0,25.3,28.6,15.96,18.5,15.74
OCCURRENCE LIMIT,"The maximum amount an INSURER is required topay the INSURED for a loss occurrence that leads to a CLAIM, even if thetotal loss is larger than the amount specified by the limit. See also CLAIMSOCCURRENCE BASIS.",palgrave,0,61.67,9.1,0,9.97,10.3,10.67,11.5,12.76
ODD LOT,"An ORDER that is smaller than the standard institutionalTRADING size in a particular SECURITY or market. Odd lots, which are mostoften associated with RETAIL INVESTORS, are generally subject to higherCOMMISSIONS/fees than ROUND LOTS.",palgrave,0,29.35,13.3,0,16.88,15.5,10.68,11.25,13.87
ODD LOT THEORY,"A theory indicating that as ORDERS executed on anODD LOT basis rise, speculative forces may be at work in pushing individualSECURITIES or broader markets to new peaks, as individual INVESTORS oftendrive the final stages of a BUBBLE.",palgrave,0,8.54,21.3,0,13.59,22,13.15,25.5,22.37
OFF-BALANCE SHEET ACTIVITIES,"Contingent financial transactions thatare not fully reflected through the corporate BALANCE SHEET. For FINAN-CIAL INSTITUTIONS this may include STANDBY LETTERS OF CREDIT,IRREVOCABLE LETTERS OF CREDIT, REVOLVING CREDIT FACILITIES,ACCEPTANCES, DERIVATIVES, and certain types of LEASES; for companies itmay be limited to leases, SUBSIDIARY guarantees and/or derivatives. Institutionsactive in these businesses face varying degrees of contingent risk exposure andmust generally set aside sufficient CAPITAL to cover potential risks.",palgrave,0,-1.63,19,18.9,22.33,22.6,13.58,18.66666667,20.92
OFF-MARKET,"A price or feature assigned to a SECURITY, DERIVATIVE, orother financial transaction that is different than the current market or acceptedmarket standard. An off-market transaction may be created in order to shift profit and loss parameters, alter funding costs, or reduce RISK exposures. See also NONPAR SWAP.",palgrave,0,38.62,11.8,14.1,14.03,12.9,11.81,11.5,13.09
OFF-THE-RUN SECURITIES,"A SECURITY that has been issued at some time in the past. Off-the-runs continue to trade until they mature or are redeemed, but often feature less LIQUIDITY and wider SPREADS thanON-THE-RUN SECURITIES.",palgrave,0,55.24,9.5,0,11.95,11.6,10.35,9,11.4
OFFENTLICHE PFANDBRIEFE,A form of COVERED BOND in the German market that is fully collateralized by public sector LOANS. Also known as PUBLIC PFANDBRIEFE.,palgrave,0,60.31,7.6,0,9.72,7.4,9.21,5,6.22
OFFER,A quoted selling price for an ASSET from a DEALER or MARKET MAKER. Also known as ASK. See also BID.,palgrave,0,81.59,3.5,3.1,2.09,0.7,7.92,2.333333333,2.68
OFFER BY PROSPECTUS,The offering of a NEW ISSUE of SECURITIES dir- ectly by the ISSUER to INVESTORS by means of a PROSPECTUS. An offer by prospectus is a relatively uncommon method of placing new securities. See also OFFER BY SALE.,palgrave,0,58.58,8.2,10.5,7.76,6.5,9.25,7,9.29
OFFER BY SALE,"The offering of a NEW ISSUE of SECURITIES through one or more INTERMEDIARIES (e.g., a SYNDICATE of UNDERWRITERS), and the most common means of placing new securities with INVESTORS. See alsoOFFER BY PROSPECTUS.",palgrave,0,46.27,10.9,0,12.29,12.2,10.68,11.75,13.87
OFFER DOCUMENT,A document submitted to SHAREHOLDERS of a com- pany that is the subject of an ACQUISITION offer that contains relevant details of the proposed transaction.,palgrave,0,29.18,15.4,0,12.94,15.8,11.82,18.5,19.6
OFFERING MEMORANDUM,"A document used to describe relevant details of a PRIVATE PLACEMENT, including information related to the ISSUER and particulars of the transaction. See also PROSPECTUS.",palgrave,0,33.41,11.7,0,14.78,12.1,11.84,8.75,16.2
OFFICIAL LIST,The list of all STOCKS traded on the main board of theLONDON STOCK EXCHANGE.,palgrave,0,82.65,5.2,0,7.82,6.8,8.84,7,8.46
OFFICIAL RECEIVER,"In the United Kingdom, a RECEIVER that is appointed to manage the BANKRUPTCY of a company. The official receiver may also serve as liquidator of ASSETS in the event of a LIQUIDATION.",palgrave,0,46.78,10.7,0,9.28,8.8,8.87,12,13.9
OFFSET,(1) The right of a CREDITOR to take possession of financial ASSETS of a delinquent DEBTOR through a process known as garnishment. (2) The right of a firm with amounts payable to a COUNTERPARTY in DEFAULT to deduct any amounts receivable from the counterparty. (2) See also NETTING.,palgrave,0,39.68,19.6,0,10.81,25.6,11.94,31,24.2
OFFSHORE COMPANY,(1) A company or SPECIAL PURPOSE ENTITY that is generally established in a TAX-friendly jurisdiction to help fulfill specific INVESTMENT or tax goals. (2) Any company or SUBSIDIARY operating outside the national borders of a PARENT or HOLDING COMPANY.,palgrave,0,6.51,22,0,13.94,23.8,12.45,30.5,23.81
OID,See ORIGINAL ISSUE DISCOUNT.,palgrave,0,33.58,9.6,0,11.6,10,15.68,2,11.6
OLD LADY,"A term for the BANK OF ENGLAND, abbreviated from the “Old Lady of Threadneedle Street” in reference to the location of the Bank’s headquarters.",palgrave,0,47.12,12.7,0,11.55,14.1,9.43,17,17.93
OLIGOPOLY,"A marketplace with only a few sellers who can collectively influence selling prices. If each has enough of a market share, then the actions of other sellers must be considered when developing pricing and distribution strategies. See also DUOPOLY, MONOPOLY, OLIGOPSONY.",palgrave,0,49.11,9.8,12.5,13.51,11.6,10.09,8.5,13.28
OLIGOPSONY,"A marketplace with only a few buyers who can collectively influence overall purchase prices. If each has enough of a market share, then the actions of other buyers must be considered when developing pricing and acquisition strategies. See also DUOPSONY, MONOPSONY, OLIGOPOLY.",palgrave,0,48.81,9.9,11.9,13.62,11.8,10.35,8.333333333,12.27
OMEGA,See THETA.,palgrave,0,120.21,-3.1,0,-7.41,0.8,11.63,0,0.8
OMNIBUS ACCOUNT,"An ACCOUNT held by one BROKER or FUTURES COMMISSION MERCHANT in the name of a second one, and which contains individual subaccounts for separate clients.",palgrave,0,46.1,13,0,12.48,15.4,9.93,16.5,14.8
OMNIPRESENT SPECTER,"A legal rule requiring a BOARD OF DIRECTORS to demonstrate that it is not acting in its own self-interest when rejecting a corporate control transaction such as a TAKEOVER, i.e., that rejec- tion of the bid and the creation of any ANTITAKEOVER DEFENSES are required in order to protect SHAREHOLDERS.",palgrave,0,20.73,22.8,0,11.8,27.1,12.12,34,27.2
ONE-FACTOR MODEL,See SINGLE FACTOR MODEL.,palgrave,0,50.5,7.2,0,5.8,5.3,11.73,1,1.6
ONE-MAN PICTURE,A market situation where the only available BID and OFFER on a transaction come from the same source.,palgrave,0,61.67,9.1,0,9.16,9.6,8.04,11,11.64
ONE-SIDED MARKET,"A market in which only one price, either a BID or OFFER, is quoted. This tends to be characteristic of ILLIQUID markets or those that are undergoing a period of financial stress, when DEALERS and SPECULATORS are unwilling to put up RISK CAPITAL.",palgrave,0,49.65,11.7,0,9.4,11.6,9.11,14.25,13.25
ONE-TOUCH OPTION,See BINARY-BARRIER OPTION.,palgrave,0,-50.02,21,0,16.95,17.8,19.58,1.5,27.87
ONE-WAY MARKET,"A market situation in which interest or activity exists only on one side, typically the selling or OFFER side. A one-way market may arise during a period of FINANCIAL CRISIS, when RISK appetite is on the wane.",palgrave,0,52.7,10.5,0,9.05,9.9,9.68,12.25,13.89
OPEN CONTRACT,A LONG POSITION or SHORT POSITION in a single unit of an EXCHANGE-TRADED DERIVATIVE. See also OPEN POSITION.,palgrave,0,45.42,9.2,0,9.31,6.9,7.59,6,8.04
OPEN DISPLAY,The electronic LIMIT ORDER book of BIDS and OFFERS in a given STOCK as supplied by an ELECTRONIC COMMUNICATIONS NETWORK. Open displays provide full visibility on all orders that are not held back as RESERVE ORDERS or HIDDEN ORDERS.,palgrave,0,51.68,10.9,0,11.14,11.6,9.46,11.75,10.88
OPEN-END FUND,See MUTUAL FUND.,palgrave,0,59.97,5.6,0,-0.46,2.1,14.31,1.5,14.53
OPEN INTEREST,"A measure of EXCHANGE-TRADED DERIVATIVE CONTRACT LIQUIDITY, generally computed as the number of outstanding FUTURES or OPTION contracts that are not offset by opposing transactions or accommodated by DELIVERY.",palgrave,0,-0.27,20.5,0,18.92,22.5,13.24,24.5,24.01
OPEN MARKET PURCHASE,"The purchase of a block of a company’s COMMON STOCK in the open market by another firm, generally as a prelude to a formal TENDER OFFER.",palgrave,0,53.55,12.3,0,7.32,11.7,9.78,16,13.48
OPEN ORDER,See GOOD TILL CANCELLED ORDER.,palgrave,0,83.32,2.9,0,7.28,5.6,7.04,1.5,2
OPEN OUTCRY,A TRADING process/mechanism based on physical commu- nication between FLOOR TRADERS working on an EXCHANGE. Floor traders agree on purchase and sale terms through verbal discussion and/or hand- signals.,palgrave,0,56.76,8.9,0,15.71,14.1,11.98,7.75,9.94
OPEN POSITION,"A LONG POSITION or a SHORT POSITION in a financial ASSET, COMMODITY, or DERIVATIVE, which exposes the holder to one or more RISK FACTORS. The risk of an open position can only be offset through a HEDGE, closeout, or offsetting position. See also OPEN CONTRACT.",palgrave,0,56.25,9.1,13,8.92,8.7,8.94,10.5,11.33
OPEN REPURCHASE AGREEMENT,"A REPURCHASE AGREEMENT with no specific MATURITY, cancellable on 24 hours’ notice by either party to the",palgrave,0,45.76,11.1,0,12.12,11.5,10.98,11.5,13.86
OPENING BANK,A BANK that creates a LETTER OF CREDIT at the request of an importer so that payment for an exporter’s goods can be arranged.,palgrave,0,72.5,9.1,0,7.43,10.6,8.77,12,9.6
OPERATING CASH FLOW,"The portion of the STATEMENT OF CASH FLOWS that reflects the cash activities of a firm’s core operations, and can be com- puted as NET INCOME plus DEPRECIATION, benefits, and provisions, and DEBIT/CREDIT adjustments related to changes in ACCOUNTS RECEIVABLE, INVENTORIES, accrued LIABILITIES, and deferred income TAXES. It can also be computed as EARNINGS BEFORE INTEREST AND TAXES minus TAXES plus DEPRECIATION, or NET OPERATING PROFIT AFTER TAX plus DEPRECIATION. See also FINANCING CASH FLOW, INVESTING CASH FLOW.",palgrave,0,19.71,17,17.1,14.63,18.1,11.81,19,18.09
OPERATING CYCLE,"The time between the acquisition of raw materials or other resources needed to prepare goods and the sale of goods to customers. The difference between cash outflows in support of raw material acquisition and cash inflows from sales must be financed through internal (e.g., cash on hand) or external sources (e.g., LOANS). The operating cycle can be viewed as the sum (in days) of the INVENTORY cycle (as measured through e.g., DAYS SALES INVENTORY) and the CASH FLOW CYCLE (as measured through, e.g., DAYS SALES OUTSTANDING). See also CASH CONVERSION CYCLE, CASH FLOW CYCLE.",palgrave,0,56.08,11.3,13,11.03,14.5,9,14.75,13.23
OPERATING EXPENSE,"The cost associated with supporting the normal business operations of a company, typically including COST OF GOODS SOLD, DEPRECIATION, administrative costs (e.g., salaries, rent, research and devel- opment); some companies exclude cost of goods sold in the computation. Operating expenses always exclude INTEREST and TAX EXPENSES.",palgrave,0,14.29,17,0,17.18,19.3,11.99,19,20.5
OPERATING INCOME,The results of a company’s operations before taking account of INTEREST and TAX EXPENSES. It can be computed as REVENUE less OPERATING EXPENSES (if operating expenses includes COST OF GOODS SOLD) or GROSS INCOME less operating expenses (if operating expenses exclude cost of goods sold). Also known as OPERATING PROFIT.,palgrave,0,29.14,13.3,15.5,12.93,12.3,8.25,13,11.48
OPERATING LEASE,"A LEASE with a CONTRACT period that is shorter than the expected economic life of the underlying ASSET; the contract is generally cancellable at the option of the LESSEE. Operating leases, which are gener- ally classified as OFF-BALANCE SHEET ACTIVITIES, are commonly written on equipment. See also CAPITAL LEASE.",palgrave,0,38.01,12,14.1,12.82,12.2,11.21,11.83333333,13.87
OPERATING LEVERAGE,"The degree to which a company’s costs are fixed; the greater the percentage of a company’s costs that are fixed, rather thanvariable, the greater the resources it has flowing to the NET INCOME account once the breakeven point has been reached. Also known as OPERATIONAL GEARING. See also LEVERAGE.",palgrave,0,71.85,7.3,9.7,11.19,10.7,8.96,8.5,8.97
OPERATING MARGIN,"A measure of a company’s ability to translate REVENUES into OPERATING INCOME, computed as:where OI is operating income, Rev is revenueThe higher the margin, the more efficient a company is in managing the costs of its business.",palgrave,0,17,20.1,0,12.49,21.4,11.45,26.5,21.29
OPERATING PROFIT,See OPERATING INCOME.,palgrave,0,9.21,12.7,0,9.23,9.9,9.05,1.5,14.53
OPERATING RISK,The RISK of loss arising from temporary or permanent dis- ruption in the daily physical operating and production activities of a firm and/ or changes in nonfinancial inputs and outputs. See also FINANCIAL RISK.,palgrave,0,45.76,11.1,0,11.95,11.6,11.91,12.5,16.21
OPERATIONAL ERROR RISK,"The RISK of loss due to problems or errors involving internal operations, such as late or misdirected payments or mis- handling/misdirecting securities. A subcategory of PROCESS RISK.",palgrave,0,32.39,12.1,0,14.78,12.7,12.49,10.25,15.77
OPERATIONAL GEARING,See OPERATING LEVERAGE.,palgrave,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
OPERATIONAL RISK,"The RISK of loss arising from control/process inadequa- cies or failures, including DISASTER RECOVERY RISK, BUSINESS RECOVERY RISK, COLLATERAL RISK, KEY MAN RISK, OPERATIONAL ERROR RISK, and REGULATORY COMPLIANCE RISK. Also known as PROCESS RISK.",palgrave,0,28.33,13.7,0,15.89,15.9,11.27,13.75,16.14
OPIC,See OVERSEAS PRIVATE INVESTMENT CORPORATION.,palgrave,0,-1.29,14.7,0,23.52,18.8,16.52,3.5,18
OPM,"Abbreviation for “other people’s money,” typically employed in describing a company’s use of financial LEVERAGE in its operations or in the context of a potential ACQUISITION.",palgrave,0,11.25,18.2,0,16.02,18.7,12.21,21,22.71
OPPORTUNITY COST,"The cost or value lost in opting not to pursue the next best alternative. Analysis of opportunity costs is integral for those involved in INVESTMENT and CAPITAL EXPENDITURES, for example. Also known asECONOMIC COST.",palgrave,0,43.09,10.1,13,11.93,9.4,9.77,7.666666667,13.93
OPTION-ADJUSTED ANALYSIS,"Quantitative analysis that is performed on a SECURITY that has one or more EMBEDDED OPTIONS. The analysis may focus on determining the OPTION-ADJUSTED DURATION, OPTION-ADJUSTED CONVEXITY, and/or OPTION-ADJUSTED SPREAD.",palgrave,0,6,16,0,18.55,16.7,10.89,12.75,16.83
OPTION-ADJUSTED CONVEXITY,"The CONVEXITY of a CALLABLE BOND, PUTABLE BOND, or other FIXED INCOME SECURITY with OPTIONALITY, which reflects the actual convexity of the security after adjusting for the effects of the EMBEDDED OPTION(s). The option-adjusted convexity of a cal- lable bond is given as:⎣⎦where Pnoncall is the price of the equivalent NONCALLABLE BOND, Pcall is the price of the callable bond, Cvx is the convexity of a noncallable bond, Dur is the DURATION of a noncallable bond, and Γ is the GAMMA of the option.Similar computations can be made for other option-embedded securities. See also OPTION-ADJUSTED DURATION, OPTION-ADJUSTED SPREAD, OPTION-ADJUSTED YIELD.",palgrave,0,20.76,18.6,18.2,13.99,21.2,10.03,23.66666667,18.12
OPTION-ADJUSTED DURATION,"The DURATION of a CALLABLE BOND, PUTABLE BOND, or other FIXED INCOME SECURITY with OPTIONALITY, which reflects the actual duration of the security after adjusting for the effects of the EMBEDDED OPTION(s). The option-adjusted duration of a callable bond is given as:⎡ P⎦where Pnoncall is the price of the equivalent NONCALLABLE BOND, Pcall is the price of the callable bond, Dur is the duration of a noncallable bond, and Δ is the DELTA value of the option.Similar computations can be made for other option-embedded securities. See also OPTION-ADJUSTED CONVEXITY, OPTION-ADJUSTED SPREAD, OPTION-ADJUSTED YIELD.OPTION-ADJUSTED DURATION, OPTION-ADJUSTED YIELD, OPTION- ADJUSTED CONVEXITY.FIXED STRIKE LOOKBACK OPTION.",palgrave,0,11.59,20.1,19.6,16.66,23.9,9.97,25,18.31
OPTION REPRICING,The practice of converting an OPTION that is OUT-OF- THE-MONEY into one with INTRINSIC VALUE by resetting the STRIKE so that the contract is IN-THE-MONEY. See also UNDERWATER.,palgrave,0,57.27,8.8,0,11.36,10.5,8.84,8,11.31
OPTIONAL REDEMPTION,"The right granted to the ISSUER of a SECURITY, particularly those with long or perpetual MATURITIES, to repurchase or redeem the outstanding securities at a predefined fixed price, or a price thatsteps up over time. Optional redemption may be incorporated into the terms of HYBRID CAPITAL SECURITIES.",palgrave,0,22.24,16,0,13.76,15.8,10.85,18.25,18.76
OPTIONALITY,See CONVEXITY.,palgrave,0,-6.7,14.7,0,4.2,10.2,11.63,1,20.8
ORDER,"Instructions from one party (e.g., BROKER or client) to a second party (e.g., DEALER or MARKET MAKER) to execute the purchase or sale of SECURITIES or other ASSETS. There are four broad classes of orders: MARKET S, LIMIT S, STOP S, and TIME S, each with their own variations related to time, price, and discretion.",palgrave,0,52.02,12.8,0,8.42,14.6,10.17,16.75,15.36
ORDER-DRIVEN MARKET,"A physical or electronic marketplace where SECURITIES ORDERS are grouped in the books of INTERMEDIARIES such as PRINCIPALS, SPECIALISTS, or AGENTS, and are then matched according to certain auction-based rules, often related to price-time priority; many pub- lic EQUITY markets are order-driven. See also AUCTION, QUOTE-DRIVEN MARKET.",palgrave,0,22.24,16,0,16.95,19.2,12.53,18.75,18.76
ORDER GENERATION LOGIC,"The mathematical instructions embedded in an ALGORITHM that dictate how a PARENT ORDER is to be parceled into sep- arate CHILD ORDERS for individual execution over a specific time horizon. See also ORDER PLACEMENT LOGIC, ROUTER LOGIC.",palgrave,0,35.78,12.9,0,13.11,13,11.38,12.75,14.97
ORDER IMBALANCE,An excess of purchase or sale ORDERS waiting to be filled via an EXCHANGE or OVER-THE-COUNTER that can disrupt LIQUIDITY and cause divergences between BIDS and OFFERS; in more extreme cases an imbalance can lead to temporary suspension of TRADING. An imbal- ance can arise from positive or negative news or rumors about a company or marketplace.,palgrave,0,42.55,14.4,0,11.78,16.7,11.42,19.25,17.01
ORDER PLACEMENT LOGIC,"The mathematical instructions embedded in an ALGORITHM that indicate how each individual CHILD ORDER in a PARENT ORDER should be executed, e.g., as a LIMIT ORDER, a MARKET ORDER, a limit order that converts to a market order after a period of time, and so forth. See also ORDER GENERATION LOGIC, ROUTER LOGIC.",palgrave,0,27.66,16,0,10.04,14.7,9.42,17.75,17.39
ORDINARY SHARE,"In the United Kingdom, COMMON STOCK.",palgrave,0,73.85,4.5,0,7.18,5.9,6.57,2,2.4
ORGANIC GROWTH,"The natural business expansion a company gains in products/markets through its own resources, improvements, or innovations, rather than through external ACQUISITIONS.",palgrave,0,16.32,16.2,0,21.64,21.8,12.2,18.5,19.83
(OECD),"An international economic organization, comprised primarily of industrialized countries (and a small number of NEWLY INDUSTRIALIZED COUNTRIES) created to assist members in developing policies to promote eco- nomic growth and general financial stability.global oil prices over the short term. Member countries have at various points included Algeria, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.",palgrave,0,7.19,19.7,0,18.69,23.5,14.34,22,20
ORIGINAL EXPOSURE METHOD,"A regulatory method of computing SWAP CREDIT RISK, under the original 1988 BASLE ACCORD put forth by the BANK FOR INTERNATIONAL SETTLEMENTS, which focuses solely on future credit exposure (de facto ignoring ACTUAL EXPOSURE or MARK-TO-MARKET value). Since the methodology takes no account of ongoing mark-to-market value, it features higher future exposure risk factors. See also CURRENT EXPOSURE METHOD, INTERNAL RATINGS-BASED APPROACH.",palgrave,0,25.08,14.9,17.1,16.48,17.4,12.56,16.33333333,16.02
ORIGINAL ISSUE DISCOUNT (OID),The size of the price DISCOUNT to PAR VALUE at the time of a BOND’s issuance. Accretion of the price from OID to par value is treated as INTEREST income for TAX purposes.,palgrave,0,71.65,7.4,0,6.32,6.5,8.76,8.75,10.24
ORIGINAL MARGIN,See INITIAL MARGIN.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
OSAKA STOCK EXCHANGE (OSE),"The second largest STOCK EXCHANGE of Japan, originally established in 1878, consolidated in 1943, and reformed in 1949. In addition to electronic TRADING of individual STOCKS, the OSE lists and trades FUTURES and OPTIONS on the BENCHMARK NIKKEI 225 INDEX, in both standard and MINI form. See also TOKYO STOCK EXCHANGE.",palgrave,0,54.22,9.9,11.2,12,11.8,12.53,10.5,11.51
OSCILLATOR,"In TECHNICAL ANALYSIS, a measure of market movements used to identify OVERBOUGHT or OVERSOLD conditions; different oscillators exist, including the relative strength of the market (average number of days ending up divided by number of days ending down).",palgrave,0,15.99,20.5,0,15.39,24.3,11.75,29,24.67
OSE,See OSAKA STOCK EXCHANGE.,palgrave,0,50.5,7.2,0,7.25,6.5,7.78,2,11.6
OTC,See OVER-THE-COUNTER.,palgrave,0,35.61,8.8,0,18.7,26.7,0.1,1,0.8
OUT-OF-THE-MONEY,"A condition where the price of an UNDERLYING ref- erence ASSET is lower than the STRIKE PRICE for a CALL OPTION, or higher than the strike for a PUT OPTION, meaning the CONTRACT has no immediate INTRINSIC VALUE if EXERCISED or sold. See also AT-THE-MONEY, IN-THE-MONEY, MONEYNESS.",palgrave,0,47.62,12.5,0,10.51,13.8,9.84,14.75,14.51
OUTPERFORMANCE OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a PAYOFF based on the degree to which a mar- ket reference or SPREAD outperforms a predefined STRIKE PRICE. See alsoSPREAD OPTION, UNDERPERFORMANCE OPTION.",palgrave,0,55.24,9.5,0,14.15,13.2,11.83,10.5,11.4
OUTSIDE DIRECTOR,"In the United States, a board DIRECTOR that is not related to the company or its EXECUTIVE MANAGEMENT in any fashion, i.e., the director has no former employment ties, or any existing business, consult- ing, or personal relationships with executives. Outside directors are typically considered to be independent for GOVERNANCE purposes. See also INSIDE DIRECTOR.",palgrave,0,27.52,14,17.1,13.92,14.1,10.29,15.16666667,18.23
OUTSIDER SYSTEM,"A corporate ownership system where no significant con- trolling interests exist and SHAREHOLDER influence over the GOVERNANCE and management processes is theoretically strong. The outsider system is found in the United States, the United Kingdom, Canada, and Australia. See also INSIDER SYSTEM.",palgrave,0,31.89,12.3,14.1,16.12,13.9,11.1,10.66666667,16.08
OUTSTANDING SHARES,"The total amount of SHARES issued by a com- pany and which are currently held by INVESTORS, including shares held by employees and executives but excluding shares that have been repurchased from the market under a TREASURY STOCK program. Also known as ISSUED AND OUTSTANDING, SHARES OUTSTANDING.CREDIT DERIVATIVE, CURRENCY DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE, WEATHER DERIVATIVE.",palgrave,0,17.17,17.9,0,16.89,21.2,10.59,22.25,19.12
OVER THE WALL,"A process where bankers inform a research analyst within the BANK about an impending CORPORATE FINANCE or NEW ISSUE transaction for a company; once “over the CHINESE WALL,” the analyst can- not produce research information as it is apt to be influenced by, or contain details of, NONPUBLIC INFORMATION.",palgrave,0,13.28,23.6,0,12.96,27.5,12.19,34.5,25.31
OVERBOUGHT,"A situation where a SECURITY or market has been the focus of aggressive buying over a short period of time, and which may be due for a correction due to a relative lack of new buyers. See also OVERSOLD.",palgrave,0,60.14,9.7,0,6.67,8.1,9.06,12.75,13.95
OVERCOLLATERALIZATION TEST,A COLLATERAL-related financial test performed in a COLLATERALIZED DEBT OBLIGATION or SECURITIZATION structure to determine whether the CASH FLOW WATERFALL can make pay- ments to increasingly SUBORDINATED TRANCHES. The form of the test is given by:(PRINCIPAL value of the collateral pool)/(Principal of a target TRANCHE + Principal of all tranches ranking SENIOR to the target)The test is considered successful if the interest coverage ratio is greater than or equal to the specified TRIGGER.,palgrave,0,9.56,20.9,0,16.2,24,11.78,27.75,23.29
OVERHEAD,"The administrative costs associated with operating a business, such as costs for salaries, rents, insurance, utilities, and supplies.",palgrave,0,27.83,13.9,0,17.86,17.9,12.42,14,18.31
OVERHEATING,"A stage in the expansion of an ECONOMY or the appreci- ation in a market or ASSET where speculative factors force growth/prices to move up rapidly, at what may ultimately be an unsustainable pace.",palgrave,0,36.97,16.6,0,10.46,18.1,10.9,23,20.66
OVERHEDGING,Excessive HEDGE protection that might not be required when broader PORTFOLIO exposures with “beneficial” CORRELATIONS that produce natural offsets are considered.,palgrave,0,16.32,16.2,0,21.64,20.9,14.45,18.5,23.64
OVERINSURANCE,"Any instance where an INSURED carries too much INSURANCE coverage against a specific PERIL. Since an insured can never profit from a CLAIM (being entitled only to fair restitution related to the amount lost), overinsurance results in wasted PREMIUM payments. See alsoUNDERINSURANCE",palgrave,0,41.7,12.7,0,15.2,16,11.45,15,16.97
OVERISSUE,Issuance of COMMON STOCK by a company in excess of its authorized SHARE limit. The corporate registrar is typically responsible for ensuring that overissue does not occur.,palgrave,0,40.85,10.9,0,12.87,10.6,11.32,10.25,14.29
OVERLAPPING INSURANCE,"A situation where an INSURED has two or more INSURANCE policies covering the same RISK. If a CLAIM is made, the insured will not be able to receive payment under all policies, since insurance cannot result in a net profit; the amount of the claim is generally divided on PRO-RATA basis between the policies. See also APPORTIONMENT, DIVIDED COVER, PRIMACY.",palgrave,0,51.18,11.1,13.6,10.44,11.8,8.84,13.33333333,12.67
OVERLINED,A temporary situation where a COMMERCIAL PAPER ISSUER has repaid all outstanding NOTES and has excess SWINGLINE availability.,palgrave,0,27.83,13.9,0,16.88,15.8,13.3,14,18.31
OVERNIGHT MONEY,"Funds borrowed on an overnight basis by a BANK or other financial institution. Such overnight funding is payable within one day, and can be accessed through direct interbank borrowings (unsecured) or OVERNIGHT REPURCHASE AGREEMENTS (secured).",palgrave,0,53.71,10.1,0,15.72,15.3,11.27,11.75,13.86
OVERNIGHT RATE,"Any INTEREST RATE reference that is computed on, and reflective of, an overnight period, e.g., EONIA, SONIA.REVERSE REPURCHASE AGREEMENT. See also OPEN REPURCHASE AGREEMENT, TERM REPURCHASE AGREEMENT.",palgrave,0,32.39,12.1,0,17.16,15.7,11.32,11.25,14.29
OVERSOLD,"A situation where a SECURITY or market has been the focus of aggressive selling over a short period of time, and which may be due for a price rebound due to a lack of additional sellers. See also OVERBOUGHT.",palgrave,0,60.14,9.7,0,7.43,8.7,9.06,12.25,12.93
OVERSUBSCRIPTION,"A situation where the number of ORDERS for a NEW ISSUE of SECURITIES is greater than the available SUPPLY, suggesting the price of the security will rise sharply at launch. If an EQUITY issue is oversubscribed, the UNDERWRITERS may exercise the GREENSHOE and float more shares; if a DEBT issue is oversubscribed, the issuer may authorize the underwriters to increase the size of the deal. See also UNDERSUBSCRIPTION.",palgrave,0,48.43,12.1,14.6,12.19,14.1,9.87,15.33333333,14.96
OVERTRADING,See CHURNING.,palgrave,0,77.91,2.9,0,1.3,7.8,11.63,0,0.8
P/E RATIO,See PRICE/EARNINGS RATIO.,palgrave,0,59.97,5.6,0,15.03,16.2,14.31,0.5,1.2
PAASCHE’S INDEX,See CURRENT WEIGHTED INDEX.,palgrave,0,50.5,7.2,0,10.15,8.8,15.68,1,1.6
PAC BOND,See PLANNED AMORTIZATION CLASS BOND.,palgrave,0,66.4,5.2,0,14.24,11.2,13.36,2.5,10
PAC MAN DEFENSE,"An ANTITAKEOVER DEFENSE where a TARGET company initiates a counterbid for the company that is attempting a HOSTILE TAKEOVER of its operations. The counterbid may involve the use of a consider- able amount of LEVERAGE, making the defense strategy financially risky.",palgrave,0,33.75,13.6,0,13.87,14.5,10.05,15.75,16
PACKAGE INSURANCE,See MULTILINE POLICY.,palgrave,0,9.21,12.7,0,9.23,9.9,14.31,2.5,27.87
PAID-IN CAPITAL,"CAPITAL received by a company from the flotation of COMMON STOCK through an INITIAL PUBLIC OFFERING, RIGHTS ISSUE, or ADD-ON. Also known as PAID-IN SURPLUS. See also RETAINED EARNINGS, CAPITAL SURPLUS.",palgrave,0,52.56,8.5,9.7,11.75,9.7,9.24,5.5,5.41
PAID-IN SURPLUS,"(1) A measure of an INSURER’s SOLVENCY, computed as the excess of an insurer’s admitted ASSETS over the total value of its LIABILITIES and minimum required CAPITAL. (2) See PAID-IN CAPITAL.",palgrave,0,23.09,17.7,0,11.56,18.2,11.29,24.5,20.14
PAID-UP POLICY,"In the United Kingdom, an ENDOWMENT ASSURANCEpolicy where the INSURED ceases to make PREMIUM payments, and where P the SURRENDER VALUE is then used to purchase some amount of cheaper life assurance coverage.",palgrave,0,29.52,17.3,0,13.53,20,11.02,22.5,20.47
PAINTING THE TAPE,See DAISY CHAIN.,palgrave,0,119.19,-2.7,0,-0.46,2.1,0.15,0.5,1.2
PAIRED SHARES,"The COMMON STOCK of two companies, managed by the same EXECUTIVE MANAGEMENT team, that are traded together through a single certificate. Also known as STAPLED STOCK.",palgrave,0,49.82,9.5,0,12.17,10.4,9.14,8,11.35
PAIRS TRADING,"An INVESTMENT strategy that involves going LONG of one STOCK (perceived to be CHEAP) and SHORT of a second stock (RICH) in expectation of capturing the SPREAD movements between the two over some time horizon, typically based on some impending event (e.g., earnings announcements). Since the investor hopes to capture the spread, the strategy is MARKET NEUTRAL, meaning the absolute level of the market is not relevant to success. Pairs trading is often done within a specific industry sector, e.g., one automobile stock versus a second one, but is also characteristic of takeover and acquisition stocks in RISK ARBITRAGE.",palgrave,0,37.98,16.2,16.3,12.78,19.9,11.17,21.83333333,18.86
PAPER LOSS,See UNREALIZED LOSS.,palgrave,0,34.59,9.2,0,7.32,8.3,9.05,1.5,14.53
PAPER MARKET,See PAPER SWAP.,palgrave,0,93.81,0.9,0,-2.38,0.5,9.05,0.5,1.2
PAPER PROFIT,See UNREALIZED PROFIT.,palgrave,0,9.21,12.7,0,11.15,11.5,14.31,1.5,14.53
PAPER SWAP,"(1) An OVER-THE-COUNTER SWAP based on a physical COMMODITY (often an energy product) that is transacted strictly on paper, with no attempt or intent to make or take delivery of the underlying phys- ical goods; paper swaps are always settled on a cash, or financial, basis, or are OFFSET prior to EXPIRY. (2) A COMMODITY DERIVATIVE involving the exchange of fixed and floating prices related to paper products, such as pulp, paperboard, and newsprint. The paper swap can serve as a HEDGE for firms exposed to the selling or buying price of paper products. (1) Also known asPAPER MARKET.",palgrave,0,21.23,22.6,0,10.81,26.5,12.31,31.75,24.65
PAR,See  VALUE.,palgrave,0,35.61,8.8,0,-7.41,0.8,0.1,0,0.8
PAR BOND,(1) A BOND that trades at its PAR VALUE. (2) A form of BRADY BOND with no price discount but with a smaller INTEREST COUPON than the DISCOUNT BOND alternative. (1) See also PREMIUM BOND.,palgrave,0,61.33,13.4,0,7.03,16.5,10.79,20.5,17.43
PAR VALUE,"The stated value, or FACE VALUE, of a SECURITY established at the time of issuance, and generally also its REDEMPTION VALUE. For BONDS and NOTES it is the amount to be repaid to INVESTORS at MATURITY, for COMMON STOCK or PREFERRED STOCK it is simply an artificial value that has no bearing after the initial launch of SHARES. Also known as NOMINAL VALUE, PAR.TERM STRUCTURE, ZERO COUPON YIELD CURVE.BACK LOAN.",palgrave,0,56.29,11.2,11.9,10.28,13.1,10.43,14,13.32
PARALLEL MONEY MARKETS,"A sector of the financing market that occurs between users and suppliers of short-term funds without the use of specialized INTERMEDIARIES, such as DISCOUNT HOUSES. The development of parallel money markets is a form of DISINTERMEDIATION.",palgrave,0,27.83,13.9,0,14.5,14.1,10.67,12.5,14.98
PARAMETRIC TRIGGER,"A conditional event in an INSURANCE-LINKED SECURITY that results in suspension of INTEREST and/or PRINCIPAL when a specific damage metric reaches a certain value. The metric is generally based on location and severity parameters. See also INDEMNITY TRIGGER, INDEX TRIGGER.",palgrave,0,24.14,13.2,14.6,14.78,12.7,12.19,10.66666667,17.32
PARASOL POLICY,See DIFFERENCE IN CONDITIONS INSURANCE.,palgrave,0,15.64,12.3,0,17.72,14,10.2,4.5,18
PARENT,"The primary operating entity in a CORPORATION, and often the one with the most significant operations and financial resources. A par- ent company may be called on by potential CREDITORS to GUARANTEE the LIABILITIES of any SUBSIDIARIES. See also HOLDING COMPANY.",palgrave,0,32.19,12.2,15,12.69,10.8,10.86,11.16666667,16.21
PARENT ORDER,"An overarching ORDER to execute a particular transaction that can be divided up into smaller CHILD ORDERS. A parent order is com- monly used as a fundamental starting point in ALGORITHMIC TRADING. See also ORDER GENERATION LOGIC, ORDER PLACEMENT LOGIC.",palgrave,0,32.6,12,12.5,11.99,10.3,10.61,8.333333333,13.32
PARI PASSU,"Literally “on equal standing.” In FINANCE it applies to granting a party the same rights/seniority that have been granted to others. A pari passu clause is often included in VENTURE CAPITAL, BOND, and LOAN agreements to ensure that seniority classes remain unaffected by future financial transactions. See also NEGATIVE PLEDGE, STRUCTURAL SUBORDINATION.",palgrave,0,37,12.4,13.6,15.19,14.6,12.39,12,13.07
PARIS CLUB MEETING,"A meeting between a sovereign DEBTOR and gov- ernment CREDITORS and BANKS (generally those from GROUP OF 10 coun- tries), to consider bilateral RESCHEDULINGS of the debtor country’s DEBT in order to avoid MORATORIUM or DEFAULT. So named as the meetings are coor- dinated via the French finance ministry.",palgrave,0,46.61,12.8,0,12.25,15.3,12.91,15.75,15.51
PARITY,See CONVERSION .,palgrave,0,-6.7,14.7,0,7.1,12.5,11.63,1.5,20.8
PARKING,"The transfer of ASSETS, LIABILITIES, or CASH FLOWS to another party, without the transfer of associated RISKS, for the purpose of altering a FINANCIAL STATEMENT. Parking is illegal in many jurisdictions as it conveys a false profile of financial standing.",palgrave,0,34.26,13.5,0,13.17,14,10.94,14,14
PARTIAL BARRIER OPTION,"A BARRIER OPTION with a BARRIER that is only in effect during a portion of the option’s life, often one week, month, or quar- ter of a multiquarter or multiyear deal. See also POINT BARRIER OPTION.",palgrave,0,53.21,10.3,0,7.54,8.8,8.48,11.5,10.53
PARTIAL INSURANCE,"An INSURANCE POLICY providing fractional RISK TRANSFER in exchange for a smaller PREMIUM. For INSUREDS with the proper RISK TOLERANCE, the lower cost of protection achieved via partialinsurance may be preferable under a cost/benefit framework. Fractional cover- age is generally achieved through DEDUCTIBLES, EXCLUSIONS, and/or POLICY CAPS. See also FULL INSURANCE.",palgrave,0,33.1,11.8,13.8,16.52,14.1,11.08,8.875,13.75
PARTIAL LOOKBACK OPTION,An OVER-THE-COUNTER COMPLEX OPTION that allows the purchaser to reset the STRIKE PRICE on a particular evaluation date if the option is OUT-OF-THE-MONEY. Also known as RESET OPTION. See also LOOKBACK OPTION.,palgrave,0,52.15,8.6,10.5,11.99,9.8,8.61,6,8.03
PARTIAL PLAN TERMINATION,"A CORPORATE FINANCE scheme designed to take advantage of an overfunded PENSION PLAN to free up cash for use in other endeavors. Under the termination transaction, the pension plan is split into two distinct components and the overfunded portion is terminated, releasing cash into the general corporate account. Partial plan termination only works when the total plan is overfunded with respect to both retirees and current employees.",palgrave,0,40.38,13.2,15.9,14.34,15.5,10.16,16.16666667,14.89
PARTIAL RECOURSE LOAN,"A LOAN where the lending BANK must initially rely on CASH FLOWS from the ASSET or project being financed for repayment but may then turn to the BORROWER for repayment. Also known as LIMITED RECOURSE LOAN. See also FULL RECOURSE LOAN, NONRECOURSE, NONRECOURSE LOAN, RECOURSE.",palgrave,0,64.71,8,11.9,11.01,10.1,8.59,8.833333333,10.44
PARTICIPATING DIVIDEND,An additional DIVIDEND paid to INVESTORS holding a company’s participating PREFERRED STOCK. See also PARTICIPA-TING FORWARD.,palgrave,0,4.14,14.7,0,18.81,14.6,12.92,5.5,15.7
PARTICIPATING FORWARD,"A FORWARD CONTRACT with a feature that allows the first party to share in any gains earned by the second party on a predetermined basis. In exchange, the second party receives a more favorable forward price.",palgrave,0,61.67,9.1,0,9.63,10.1,8.48,9,9.42
PARTICIPATING OPTION,"An OPTION CONTACT with a feature that allows the buyer to only benefit from a certain amount of any gains earned; the option seller retains a portion of the profits, in return for levying a smallerPREMIUM.",palgrave,0,43.4,16.2,0,10.22,18.8,11.56,20,16.62
PARTICIPATING POLICY,"An INSURANCE CONTRACT where the INSURED receives periodic DIVIDENDS from the INSURER, thus sharing in the insurer’s overall profitability. The participating policy essentially grants the insured an increasing PREMIUM rebate as the insurer’s UNDERWRITING and INVESTMENT MANAGEMENT performance improves.",palgrave,0,0.92,18,0,21.41,20.1,14.32,17.75,23.18
PARTICIPATING PREFERRED STOCK,A form of PREFERRED STOCK that pays INVESTORS a standard preferred DIVIDEND and a portion of a COMMONSTOCK dividend if certain financial performance targets are met. Such issues are relatively rare.,palgrave,0,47.28,10.5,0,13.45,11.8,11.03,10.75,12.65
PARTICIPATION CERTIFICATE,"A SECURITY that represents an interest in an underlying POOL of ASSETS, generally MORTGAGES; the term is often used generically to refer to MORTGAGE-BACKED SECURITIES. See also PASS-THROUGH SECURITY.",palgrave,0,22.92,13.7,0,15.13,13.6,10.89,11.75,15.46
PARTLY PAID SHARES,"The SHARES of a company that have not been paid up to the full PAR VALUE at the time of initial issuance, and on which INVESTORS are subject to a further call for additional CAPITAL. The mech- anism is relatively uncommon, used primarily in very large transactions or PRIVATIZATIONS. See also FULLY PAID SHARES.",palgrave,0,61.67,9.1,12.5,9.51,10.1,8.33,11.66666667,11.64
PARTNER,"A participant in a form of an unincorporated business organiza- tion. Depending on the structure of the organization, a partner may have unlimited personal responsibility with regard to incurred DEBTS. See alsoGENERAL PARTNERSHIP, LIMITED PARTNERSHIP, PARTNERSHIP, SILENT PARTNERSHIP.and COLLATERALIZED MORTGAGE OBLIGATIONS issued by private- label CONDUITS, and COLLATERALIZED BOND OBLIGATIONS and COLLATERALIZED LOAN OBLIGATIONS issued by BANKS and SECURITIES FIRMS.",palgrave,0,0.42,18.2,18.2,21.17,20.7,11.73,17,17.33
PASSING THE BOOK,The practice followed by large international BANKS and other FINANCIAL INSTITUTIONS of transferring OPEN POSITIONS in FOREIGN EXCHANGE and other ASSETS that trade on a 24-hour basis among TRADING centers as each one becomes the primary locus of trading activity during part of the business day.,palgrave,0,16.33,22.4,0,14.75,27.1,12.1,30,24.49
PASSIVE FUND,"A FUND that seeks to match a BENCHMARK market INDEX through a replication strategy, with no attempt to outperform the bench- mark. Passive funds, such as INDEX FUNDS, feature lower costs than ACTIVE FUNDS.",palgrave,0,71.14,7.6,0,10.73,10.9,10.98,9,10.33
PASSIVE INVESTMENT STRATEGY,"A process of managing a PORTFOLIO of SECURITIES by relying on a minimum amount of ASSET reallocation; pas- sive strategies are often implemented through INDEXING. See also ACTIVE INVESTMENT STRATEGY, INDEX FUND.",palgrave,0,29.86,13.1,0,14.15,13.1,13.31,13,18.9
PASSIVE LOSS RULES,"Rules that limit the amount of deductions or INCOME that can be sheltered from TAXES. Deductions on passive losses are generally limited to an amount equal to earnings from passive sources; in addition, losses and gains must generally come from similar businesses or INVESTMENTS.",palgrave,0,40.69,13.1,0,13.29,14.8,10.47,15.5,15.16
PASSIVE RETENTION,"A state where a company unknowingly retains RISK and is therefore not actively managing exposure through RESERVES or SELF-INSURANCE. Passive retentions can lead to unexpected losses. See alsoRETENTION, RISK RETENTION.",palgrave,0,27.49,11.9,13.6,16.62,13.1,12.03,7.333333333,16
PASSPORTING,The ability for BANKS and other FINANCIAL INSTITU- TIONS operating in the EUROPEAN UNION to provide services in all EU coun- tries once they have been approved to provide such services in any one country.,palgrave,0,44.41,15.8,0,10.98,19,11.69,22.5,19.71
PATENT,"Exclusive rights that are granted by a government authority to the designer or inventor of an innovative product or service, generally for a speci- fied period of time (e.g., the WORLD TRADE ORGANIZATION recommends a minimum of 20 years). A patent is typically classified on the BALANCE SHEET as an INTANGIBLE.",palgrave,0,28.67,15.6,0,11.55,15.3,12.33,19.75,20.4
PATH-INDEPENDENT OPTION,"A VANILLA or COMPLEX OPTION whose PAYOFF at EXPIRY or EXERCISE is dependent solely on the price of theUNDERLYING reference ASSET at expiry or exercise. Common path-independ- ent options include BINARY OPTIONS, MULTI-INDEX OPTIONS, COMPOUND OPTIONS, CHOOSER OPTIONS, CONTINGENT PREMIUM OPTIONS, DEFERRED PAYMENT AMERICAN OPTIONS, EXPLODING OPTIONS, and FORWARD START OPTIONS. See also PATH-DEPENDENT OPTION.",palgrave,0,19.06,15.1,15,18.39,17.9,11.72,13.5,13.87
PATHFINDER PROSPECTUS,"In the United Kingdom, a RED HERRING.",palgrave,0,81.29,3.7,0,4.07,2.9,6.24,2.5,2.8
PAY AS YOU EARN (PAYE),"In the United Kingdom, a scheme where employ- ers deduct from the current salary of employees the amount of estimated TAX due and payable.",palgrave,0,64.04,10.3,0,10.1,13.1,10.75,14,12.93
PAY LATER OPTION,See CONTINGENT PREMIUM OPTION.,palgrave,0,8.2,13.1,0,14.5,12.4,15.68,3,21.6
PAYABLE,See ACCOUNTS .,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,0.5,0.8
PAYBACK PERIOD,"Also know as PAYBACK RULE.where CI is the initial capital investment, CFp.a. is the annual cash flow from the investment. Also known as PAYBACK PERIOD. See also INTERNAL RATE OF RETURN, NET PRESENT VALUE.",palgrave,0,60.01,7.7,11.2,9.32,7.9,7.91,6.666666667,9.23
PAYE,See PAY AS YOU EARN.,palgrave,0,117.16,-1.9,0,-4.33,-4,0.25,1.5,2
PAYEE,"A party that is due a payment, as under a CHECK, DRAFT, BILL OF EXCHANGE, or other CONTRACT. See also PAYER.",palgrave,0,77.74,5,0,3.86,3.6,6.41,4.25,4.2
PAYER,"A party that is required to make a payment, as under a CHECK, DRAFT, BILL OF EXCHANGE, or other CONTRACT. See also PAYEE.",palgrave,0,76.72,5.4,0,4.97,4.6,6.95,4.75,4.6
PAYER EXTENDIBLE SWAP,An EXTENDIBLE SWAP that is formed from a combination of a fixed payer SWAP and a PAYER SWAPTION.,palgrave,0,70.13,8,0,7.54,8.2,10.67,9,9.42
PAYER SWAPTION,A SWAPTION granting the buyer the right to enter into an OVER-THE-COUNTER INTEREST RATE SWAP to pay FIXED RATES and receive FLOATING RATES. The buyer is likely to exercise the swaption as float- ing rates rise above a particular STRIKE PRICE. Also known as PUT SWAPTION. See also RECEIVER SWAPTION.,palgrave,0,67.25,7,9.5,9.9,8.3,8.36,6.5,8.2
PAYING AGENT,A BANK of other FINANCIAL INSTITUTION that is respon- sible for disbursing INTEREST and PRINCIPAL on a particular DEBT facility or instrument.,palgrave,0,15.31,16.6,0,14.1,15.5,12.62,19,23.35
PAYMENT DATE,The date on which INTEREST and/or PRINCIPAL due on a SECURITY is paid to INVESTORS.,palgrave,0,56.25,9.1,0,8.05,7.7,8.59,10.5,14
PAYMENT IN KIND,Payment that is made in goods or services rather than cash.,palgrave,0,94.15,2.9,0,6.82,5,5.62,4.5,4.4
PAYMENT IN KIND (PIK) SECURITY,"A SECURITY that pays COUPONS or DIVIDENDS in the form of additional securities rather than cash (e.g., PIK BONDS pay interest in the form of additional PIK bonds, PIK PREFERRED STOCK pays dividends with additional PIK preferreds). PIK securities are gen- erally issued by companies that have difficulty raising cash or are attempting to preserve cash to fund corporate operations. See also RESET PAYMENT IN KIND BOND.",palgrave,0,40.38,13.2,15.9,12.54,14.4,10.87,16.16666667,15.49
PAYMENT NETTING,"A NETTING arrangement where an institution and its COUNTERPARTY agree to net all payments in the normal course of business. See also NOVATION, SET-OFF.",palgrave,0,59.3,8,0,11.82,9.7,8.84,7,11.47
PAYMENT TERMS,"The specific terms defined by a seller or supplier for buyers or DEBTORS, indicating the amount of DISCOUNT that will be granted if payments are made over particular time horizons.",palgrave,0,41.03,15,0,12.14,17.3,11.97,19,17.33
PAYOFF,The economic result generated by a DERIVATIVE CONTRACT based on the market price of the UNDERLYING at a point in time or at the MATURITY of the contract. See also  PROFILE.,palgrave,0,47.28,10.5,0,8.41,7.8,8.99,10.25,12.65
PAYOR BANK,A BANK that is the DRAWEE of a DRAFT or CHECK. See alsoCOLLECTING BANK.,palgrave,0,89.75,2.5,0,3.26,1.6,7.37,3,5.66
PAYOUT RATIO,"The amount of corporate earnings paid out to SHARE- HOLDERS in the form of COMMON STOCK DIVIDENDS, calculated as:where DIVn is the dividend paid in period n and EPSn is the EARNINGS PER SHARE achieved in period n. See also DIVIDEND YIELD, PLOWBACK RATIO.",palgrave,0,57.61,10.7,0,9.75,12.2,10.47,14.5,13.35
PBOC,See PEOPLE’S BANK OF CHINA.,palgrave,0,83.32,2.9,0,3.8,2.7,7.04,1.5,2
PEGGING,"(1) In the FOREIGN EXCHANGE markets, the process of linking the value of a national CURRENCY to the value of a foreign currency (or a BASKET of currencies). This implies that the national currency is not free-floating, butdependent on the MONETARY POLICY and TRADE activities of reference coun- tries. (2) In the SECURITIES markets, an illegal practice where manipulators attempt to keep the price of a listed security trading close to its PAR VALUE. (3) In the NEW ISSUE market, the legal practice of stabilizing the price of a new offering, generally through buying efforts coordinated by the LEAD MANAGER.(1) See also CRAWLING PEG, MANAGED FOREIGN EXCHANGE RATE.",palgrave,0,8.21,25.5,0,12.32,29.9,11.87,34.5,27.53
PENNANT,"A TECHNICAL ANALYSIS charting figure of a SECURITY or mar- ket that resembles the FLAG, but features a narrowing of the tip as the peaks and troughs draw closer together; once at the tip of the pennant, the price of the security or market is expected to rise or fall sharply.",palgrave,0,28.17,22,0,8.61,24.8,10.81,33.5,25.11
PENNY STOCK,"The COMMON STOCK of a company that trades for less than $1 per share, generally associated with a firm that has a short his- tory of financial performance or one that has entered a phase of FINANCIAL DISTRESS and has been delisted from a larger EXCHANGE. Penny stocks are traded OVER-THE-COUNTER and are quoted on the PINK SHEETS.",palgrave,0,50.5,13.4,0,9.93,15.3,10.25,18,14.36
PENSION FUND,See PENSION PLAN.,palgrave,0,93.81,0.9,0,1.52,3.6,9.05,0.5,1.2
PENSION MORTGAGE,"In the United Kingdom, a form of MORTGAGE where the MORTGAGOR pays the lending BANK periodic INTEREST payments, and makes additional contributions to a PENSION account, which is designed to provide funds for repayment of PRINCIPAL when the mortgagor retires.",palgrave,0,22.42,20.1,0,14.52,24.4,12.33,26,22
PENSION SYSTEM,"A national system for defining and administering PEN- SION PLANS, either at a public level or within the private sector. A system may be structured on the basis of UNFUNDED PENSIONS or FUNDED PENSIONS.",palgrave,0,54.22,9.9,0,10.38,10.3,10.98,9,10.33
PEOPLE PILL,"An ANTITAKEOVER DEFENSE where a well-regarded management team threatens to depart, en masse, in the event of a TAKEOVER. See also POISON PILL.",palgrave,0,68.26,6.6,0,10.54,8.9,10.39,6.25,9.82
PEOPLE’S BANK OF CHINA (PBOC),"The CENTRAL BANK of the People’s Republic of China, established in 1948 and granted central banking powers in 1983. PBOC is responsible for issuing and enforcing REGULATIONS impact- ing its domestic financial markets and institutions, developing and imple- menting MONETARY POLICY, issuing CURRENCY and managing FOREIGN EXCHANGE activities, managing official RESERVES and operating national payment SETTLEMENTS.",palgrave,0,0.76,20.1,0,19.03,22.5,14.61,24.5,24.77
PER CAPITA INCOME,"The average amount of INCOME earned by a defined group, system, or country, which is determined by dividing total income by the number of people in the group, system, or country. Per capita income can be used for comparative purposes across groups and over time.",palgrave,0,57.1,10.9,0,10.22,12.6,8.96,13.75,13.44
PER PRO,"Abbreviated form of per procurationem, signifying an act by an AGENT who is authorized to deal on behalf of a PRINCIPAL.",palgrave,0,41.7,12.7,0,9.81,11.5,10.69,15.5,17.92
PERCENTAGE OF LOSS DEDUCTIBLE,"In INSURANCE, a CONTRACT with a percentage-based DEDUCTIBLE that increases as the INSURED’s losses grow larger. Through this feature the insured preserves, or even increases, its RISK RETENTION.",palgrave,0,48.81,9.9,0,15.48,13.6,12.23,8.5,11.31
PERFORMANCE BENCHMARKING,The process of analyzing the finan- cial performance of an INVESTMENT PORTFOLIO against a predefinedBENCHMARK. Proper performance benchmarking requires selection of the correct benchmark INDEX and proper consideration of exogenous factors including COMMISSIONS and TAXES levied on the portfolio.,palgrave,0,17.84,15.6,0,20.48,19.4,12.7,16.25,19.08
PERFORMANCE BOND,A FINANCIAL GUARANTEE providing payment to a third party BENEFICIARY if the purchaser of the guarantee fails to per- form as contracted. Common performance bonds include SURETY BONDS and COMPLETION BONDS (purchased from INSURERS) and STANDBY LETTERS OF CREDIT (purchased from banks).,palgrave,0,33.24,13.8,0,15.2,16.2,12.2,15.5,16.97
PERIL,"A cause of loss, and an exposure that individuals and institutions often seek to protect against through INSURANCE. See also HAZARD.",palgrave,0,52.36,8.6,0,11.34,8.9,7.92,6.25,11.82
PERIOD BILL,See TERM BILL.,palgrave,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
PERIODIC COLLATERAL,"A process where a FINANCIAL INSTITUTION extending CREDIT to a COUNTERPARTY takes a smaller amount of ini- tial COLLATERAL but revalues the credit exposure and collateral periodic- ally and makes necessary adjustments (i.e., calling for additional collateral if in deficit, returning excess collateral if in surplus). See also UPFRONT COLLATERAL.",palgrave,0,12.26,17.8,0,16.19,19,12.77,20,18.8
PERPETUAL DEBENTURE,"In the United Kingdom, a DEBENTURE that is issued as an UNDATED SECURITY. See also IRREDEEMABLE SECURITY.",palgrave,0,37.47,10.1,0,10,7.5,8.7,5.25,10.46
PERPETUAL DEBT,"A BOND that is issued without a stated final MATURITY. The DEBT acts as a PERPETUITY, paying INVESTORS regular COUPONS but never repaying the PRINCIPAL balance. See also CONSOL, IRREDEEMABLE SECURITY, PERPETUAL FLOATING RATE NOTE, UNDATED SECURITY.",palgrave,0,25.15,12.8,13.6,13.96,11.7,12.78,8.5,14.65
PERPETUAL PREFERRED STOCK,"A form of CUMULATIVE PREFERRED STOCK with no fixed MATURITY date, OPTIONAL REDEMPTION that makes the securities callable at the ISSUER’S option, and a ranking in DEFAULT that is senior to COMMON STOCK and PARI PASSU with other PREFERRED STOCK. See also HYBRID CAPITAL SECURITY, TRUST PREFERRED STOCK.",palgrave,0,47.12,12.7,0,13,15.4,11.08,15.5,14.6
PERPETUAL SUCCESSION,"A concept in corporate law that allows for the permanent and continuing existence of a CORPORATION, regardless of the departure or demise of founders or executives, or the sale of SHARES by ori- ginal or existing SHAREHOLDERS.",palgrave,0,25.46,18.9,0,12.49,21.3,12.73,28.5,25.61
PERPETUITY,"An ASSET or financial CONTRACT that pays INVESTORS a stated CASH FLOW on a continuous basis but does not provide for PRINCIPAL repayment. The PRESENT VALUE of constant and growing perpetuities is given as:Constant:Growing:where CF is the stated cash flow, r is the DISCOUNT RATE, and g is the growth rate. See also ANNUITY.",palgrave,0,53.21,10.3,11.9,10.55,11.1,10.38,11.33333333,11.64
PERSONAL CONSUMPTION,"A component of GROSS DOMESTIC PRODUCT (and related GROSS NATIONAL PRODUCT) that includes DURABLE GOODS, NONDURABLE GOODS, and services.",palgrave,0,43.73,11.9,0,16.88,17.1,12.89,13.5,16.02
PETRODOLLARS,"Dollar CASH FLOWS paid for oil to oil-producing nations, which are often redeposited (or recycled) through the Western banking system.",palgrave,0,42.72,12.3,0,14.62,15.7,10.16,13,14
PHANTOM STOCK,"A corporate SECURITY that gives employees, executives, and DIRECTORS the RENT RIGHTS associated with the company’s COMMON STOCK (e.g., any CAPITAL GAINS, DIVIDENDS) without granting physical SHARES or CONTROL RIGHTS (e.g., PROXY voting). Also known asSHADOW STOCK.",palgrave,0,35.78,12.9,0,16.13,16.8,13.52,14.25,17.13
PHYSICAL DELIVERY,See PHYSICAL SETTLEMENT.,palgrave,0,9.21,12.7,0,15.03,14.6,9.05,2.5,14.53
PHYSICAL SETTLEMENT,A SETTLEMENT process where two parties to a TRADE or DERIVATIVE CONTRACT exchange cash for a physical ASSET (such as a COMMODITY or physical form SECURITY). Also known as PHYSICAL DELIVERY. See also CASH SETTLEMENT.,palgrave,0,42.68,10.2,13,10.71,8.8,8.28,7.833333333,10.39
PHYSICALS,"A COMMODITY or physical good that can be bought and sold, and which can be settled through PHYSICAL DELIVERY.",palgrave,0,60.65,9.5,0,9.86,10.6,7.9,13.5,13.92
PIG,"An INVESTOR that, having earned PROFITS on certain INVESTMENTS, has unrealistic expectations about further profits and con- tinues to hold the positions.",palgrave,0,32.22,14.2,0,16.48,17.8,11.19,15,16.07
PIG ON PORK,See CROSS GUARANTEE.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,14.53
PIGGYBACKING,See COAT-TAILING.,palgrave,0,35.61,8.8,0,10,17.3,11.63,1,0.8
PIK SECURITY,See PAYMENT IN KIND SECURITY.,palgrave,0,49.48,7.6,0,6.12,4.6,7.04,2.5,10
PILLAR I,"One of three “pillars” under the BASLE II framework, centered on the computation of minimum CAPITAL requirements for BANKS. Pillar I provides for greater precision in defining CREDIT RISK (under the INTERNAL RATINGS- BASED APPROACH, STANDARDIZED APPROACH) and OPERATIONAL RISK; MARKET RISK is covered under the BASLE MARKET RISK AMENDMENT. See also I, II.",palgrave,0,44.75,11.5,12.5,13.8,13.9,11.55,11.66666667,12.39
PILLAR III,"One of three “pillars” under the BASLE II framework, based on ensuring improved market discipline through detailed public disclosures. A participating BANK is required to provide additional qualitative comments on its RISK MANAGEMENT policies, processes and methodologies, and quantita- tive details on its key CREDIT RISK, MARKET RISK, and OPERATIONAL RISK exposures. See also PILLAR I, PILLAR II.",palgrave,0,34.97,13.2,14.6,15.84,15.9,12.22,13.66666667,16
PIN RISK,The RISK of loss that arises when a very large OPTION position (or many small ones) trades near the STRIKE PRICE as EXPIRY approaches. A small move above/below the strike price can dramatically change the HEDGE requirement and potentially induce large losses (or gains).,palgrave,0,57.61,10.7,0,11.72,13.9,10.47,14,13.35
PINGING,The act of sending in small ORDERS into a DARK POOL as a way of discovering whether a large BID or OFFER exists in a particular STOCK. If the small orders are executed the pinging is said to be successful and can lead to GAMING of the pool.,palgrave,0,64.04,10.3,0,6.1,9.5,8.12,14,12.93
PINK SHEETS,"A mechanism used to quote OVER-THE-COUNTER SECURITIES, including PENNY STOCKS. Pink sheets were previously printed and distributed on pink paper, but are now accessible electronically.",palgrave,0,24.95,12.9,0,17.56,15,11.2,10.25,16.2
PINNING THE STRIKE,A tendency for the price of a COMMON STOCK with heavily traded OPTIONS to close near the STRIKE PRICE of the most actively traded PUT OPTIONS or CALL OPTIONS.,palgrave,0,58.96,12.2,0,9.12,14.2,8.89,17.5,15.74
PIP,"The fifth decimal point in a FOREIGN EXCHANGE quotation, e.g., 0.00001. See also POINT.",palgrave,0,72.83,4.8,0,7.84,7,11.88,3.5,8.51
PIPE,See PRIVATE INVESTMENT IN PUBLIC EQUITY.,palgrave,0,31.55,10.4,0,12.05,9,11.83,4,15.73
PIPELINE,"Future deal flow being arranged by BANKS, INVESTMENT BANKS, and SECURITIES FIRMS on behalf of clients. The pipeline includes future NEW ISSUES and CORPORATE FINANCE transactions, and serves as a measure of strength/weakness in the financial and corporate sectors. Also known as CALENDAR, VISIBLE SUPPLY. See also SHADOW CALENDAR.",palgrave,0,50.53,9.3,12.2,14.02,11.7,10.69,7.625,9.82
PIPETTE,One tenth of a PIP.,palgrave,0,117.16,-1.9,0,-5.49,-4.9,10.2,1.5,2
PIT,See TRADING .,palgrave,0,35.61,8.8,0,-1.61,5.5,11.63,0.5,0.8
PLACED BUSINESS,"An INSURANCE POLICY that has been completed and delivered to the INSURED, and where the INSURER has received itsPREMIUM.",palgrave,0,43.73,11.9,0,13.23,13.4,11.23,15.5,20.23
PLACEMENT,"(1) The distribution of new SHARES of COMMON STOCK, either via an INITIAL PUBLIC OFFERING or a RIGHTS ISSUE. (2) The first stage in the MONEY LAUNDERING process, in which cash derived from illegal sources is deposited in BANKS or other FINANCIAL INSTITUTIONS or money broking operations. Once deposited, the cash is used in the LAYERING and INTEGRATION stages.",palgrave,0,41.53,14.8,0,12.02,17.4,11.52,20.25,18.58
PLANNED ECONOMY,See COMMAND ECONOMY.,palgrave,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
PLC,See PUBLIC LIMITED COMPANY.,palgrave,0,8.2,13.1,0,10.15,8.8,7.78,3,11.6
PLEDGE,"The act of assigning an ASSET to a LENDER to support a BORROW- ING. The BORROWER retains ownership, but not possession, of the asset unless a DEFAULT occurs, at which point the lender takes legal ownership and can liquidate the asset to repay the loan. See also HYPOTHECATION.",palgrave,0,55.24,9.5,11.9,9.28,9,9.36,10.33333333,11.4
PLOWBACK RATIO,"The amount of CAPITAL a firm reinvests in its opera- tions, such as EARNINGS that are retained and reinvested rather than paid to SHAREHOLDERS in the form of DIVIDENDS. The formula is given as:PBR = 1 – Payoutwhere Payout is the PAYOUT RATIO.",palgrave,0,58.62,10.3,0,9.52,11.5,10.69,13.25,12.21
PLUS TICK,"Sale of a SECURITY at a price that is higher than the prior transac- tion, generally indicated through the display of a “+” next to the screen or tape price. A SHORT SALE can be initiated on a plus tick. Also known as UPTICK See also MINUS TICK, ZERO , ZERO MINUS TICK.",palgrave,0,70.84,7.7,9.7,5.74,6.9,8.44,10.16666667,10
PO STRIP,See PRINCIPAL-ONLY STRIP.,palgrave,0,34.59,9.2,0,15.03,16.2,9.05,1.5,14.53
POINT,"The fourth decimal point in a FOREIGN EXCHANGE quota- tion, e.g., 0.0001. See also PIP.",palgrave,0,80.78,3.9,0,5.47,5.3,13.48,3.25,5.67
POINT AND FIGURE CHART,"A TECHNICAL ANALYSIS chart that depicts upward and downward moves in a SECURITY or market but ignores time dimensions. A typical chart is comprised of Xs to depict upward moves and Os for downward moves. Continuous up or down moves are reflected in the same column for each occurrence, but when the trend shifts (e.g., to a new down or up) a new column is started. The chart that results is intended to reveal direc- tional momentum.",palgrave,0,60.35,9.6,12.2,8.76,10,10.13,12.125,12.91
POINT BARRIER OPTION,"A BARRIER OPTION with a BARRIER that is only in effect at a single point in time, often MATURITY, rather than the entire life of the transaction. Also known as EUROPEAN BARRIER OPTION. See alsoPARTIAL BARRIER OPTION.",palgrave,0,50.53,9.3,12.5,9.27,7.6,7.66,7.833333333,10.33
POISON PILL,"A general class of ANTITAKEOVER DEFENSES designed to make a TARGET’s COMMON STOCK look less attractive to a potential acquirer planning a TAKEOVER, often through excessive DILUTION. See alsoCHEWABLE PILL, FLIP IN PILL, FLIP OVER PILL.",palgrave,0,53.21,10.3,0,13.69,13.6,10.23,13.5,16.09
POLICY CAP,"The maximum amount payable by an INSURER to an INSURED, or a REINSURER to a CEDING INSURER, under an INSURANCE or REINSURANCE CONTRACT. Also known as AGGREGATE LIMIT, CAP,EXHAUSTION POINT.",palgrave,0,47.79,10.3,0,11.71,11,10.7,11.5,15.33
POLITICAL RISK INSURANCE,"A form of INSURANCE that provides the INSURED with coverage against losses arising from various SOVEREIGN RISKS, including political disruption, EXPROPRIATION, NATIONALIZATION, CONTRACT repudiation, CAPITAL controls, and, in some instances, acts of terrorism. See also WRAPAROUND INSURANCE.",palgrave,0,10.4,16.4,0,20.94,20.1,13.09,15.75,19.29
POLL TAX,"In the United Kingdom and continental Europe, a uniform TAX that can be levied on each citizen of a particular city, state, or other jurisdic- tion, according to local needs and rules.",palgrave,0,39,15.8,0,9.93,17.1,10.16,21,17.8
PONZI SCHEME,"A FRAUD perpetrated on unwitting INVESTORS, named after Charles Ponzi who operated a large scheme in the early twentieth cen- tury. Ponzi schemes can take various forms, but often involve some form of pyramiding structure, where new client funds are used to repay funds placed by original clients; the scheme can only work as long as new funds continue to flow in.",palgrave,0,56.93,13,0,10.98,17.1,11.29,19.5,17.56
POOL,"(1) A SYNDICATE of INSURERS or REINSURERS organized to under- write a LINE of RISK. Each pool member shares in PREMIUMS, losses, and LOSS ADJUSTMENT EXPENSES. (2) A group of ASSETS combined into a PORTFOLIO for SECURITIZATION or COLLATERAL management purposes. (1) See alsoREINSURANCE POOL.",palgrave,0,31.72,14.4,0,13.06,15.6,11.77,17.75,20.56
POOLING,"(1) The process of combining DEBIT and CREDIT balances in a cor- porate customer’s disparate BANK ACCOUNTS to derive a net balance; interest is credited on a positive balance, and debited on a negative balance. (2) See RISK . (1) Also known as BALANCE CONCENTRATION, NOTIONAL .",palgrave,0,17.34,22,0,11.68,25.2,13.59,31.5,25.11
POOP AND SCOOP,"An illegal practice where a group of INVESTORS circulates false negative news about a company in order to drive down the price of its COMMON STOCK; once the price has been pushed down, the investors purchase shares and wait for a rebound. This type of scheme is typically tar- geted at small, thinly traded stocks. See also PUMP AND DUMP.",palgrave,0,68.1,8.7,10.5,8.99,10.5,9.1,11.66666667,10.67
PORCUPINE PROVISION,See ANTITAKEOVER DEFENSE.,palgrave,0,34.59,9.2,0,16.95,16.2,9.05,1.5,14.53
PORTABLE PENSION,"In the United Kingdom, an employee PENSION account that can be moved between employers as the employee changes jobs.",palgrave,0,52.19,10.7,0,12.01,12.4,9.57,12.5,11.81
PORTFOLIO,"A group of ASSETS that is managed jointly, often to provide proper DIVERSIFICATION, RISK MANAGEMENT, or INVESTMENT opportun- ities that cannot be obtained by holding individual assets. See also  DIVERSIFICATION,  RISK,  THEORY.",palgrave,0,12.94,15.4,0,15.95,15,11.34,11.5,13.9
PORTFOLIO CONSTRUCTION,"The general process used by HEDGE FUND, MUTUAL FUND, and INVESTMENT managers to create a PORTFOLIO of investments with particular RISK and RETURN characteristics. The construc- tion process, which may be led by a fund’s CHIEF INVESTMENT OFFICER or investment committee, takes account of the fund’s specific mandate, its ability to take risk, and its return targets.",palgrave,0,42.55,14.4,0,13.52,18.3,10.87,20.75,17.72
PORTFOLIO DIVERSIFICATION,"The practice of combining SECUR- ITIES that are not correlated with one another in order to diffuse RISK. See also DIVERSIFICATION, DIVERSIFIABLE RISK, NONDIVERSIFIABLE RISK,PORTFOLIO THEORY.",palgrave,0,7.52,15.4,0,17.5,15.1,11.57,10.5,15.97
PORTFOLIO INSURANCE,A technique that allows participants to bene- fit from a rising market by increasing exposure to COMMON STOCKS and protecting against a declining market by decreasing exposure. The primary downside RISK MANAGEMENT application is centered on the sale of INDEX FUTURES to protect an INVESTMENT PORTFOLIO against a fall in prices.,palgrave,0,37.13,14.4,0,14.16,16.9,11.71,18.75,18.83
PORTFOLIO MANAGER,"A financial professional that invests the CAPITAL of investors in a range of SECURITIES. The manager may choose an active or pas- sive strategy, and may specialize in particular ASSET classes, such as EQUITIES, FIXED INCOME, EMERGING MARKETS, and so forth. Also known as ASSET MANAGER, INVESTMENT MANAGER.",palgrave,0,38.32,11.9,14.6,12.41,11.9,10.68,12,13.07
PORTFOLIO PUMPING,A quarter-end or year-end practice where INVESTMENT MANAGERS purchase additional amounts of COMMON STOCK to supplement existing holdings in order to push up prices and improve end- of-period performance statistics. See also WINDOW DRESSING.,palgrave,0,37.3,12.3,0,16.7,15.8,11.45,12,15.04
PORTFOLIO REINSURANCE,A REINSURANCE CONTRACT granted over a CEDING INSURER’s total PORTFOLIO of RISKS; the contract effectivelyprovides the insurer with macro protection against all LINES of INSURANCE business written.,palgrave,0,18.69,17.4,0,19.09,21.7,13.16,20.5,21.17
PORTFOLIO RETURN,"The income generated by a group of ASSETS over a defined horizon. Income may be derived from DIVIDENDS, YIELD, and/or CAPITAL GAINS, depending on the characteristics of the SECURITIES. The total RETURN of the portfolio is equal to the sum of the returns on each indi- vidual asset, and is given by:where Rp is the return of the portfolio, Rx is the return of asset x in the port- folio, wx is the weight of asset x in the portfolio, Z is the number of assets in the portfolio. See also EXPECTED PORTFOLIO RETURN.s 2 ( Rp ) = s 2 ( R1 ) + s 2 ( R2 ) + 2w1w2cov( R1 , R2 )where Rp is the return of the portfolio, R1 is the return of asset 1, R2 is the return of asset 2, σ2(R1) is the variance of the return of asset 1, σ2 (R2) is the variance of the return of asset 2, w1 is the weight of asset 1 in the portfolio, w2 is the weight of asset 2 in the portfolio, cov(R1, R2) is the covariance between assets 1 and 2.The generalized formula for a portfolio containing Z assets is given by:s 2 ( Rp ) = ∑ ∑ wg whcov( Rg , Rh )Note that the terms for which h = g results in the variance of the Z assets, while the terms for which h ≠ g yields all covariances among the Z assets. See alsoCORRELATION, CORRELATION RISK.",palgrave,0,32.84,20.2,15.6,6.4,21.4,9.68,15.75,21.15
PORTFOLIO THEORY,"The practice of analyzing and managing INVEST- MENTS on a PORTFOLIO, rather than SECURITY-specific, basis. The process is based on measuring portfolio ASSET RISKS and RETURNS (including those that are characterized as DIVERSIFIABLE and NONDIVERSIFIABLE RISKS), creating investment allocation strategies, and optimizing portfolio components. Theultimate goal is to create a diversified portfolio of investments that maximizes return for a given level of risk.",palgrave,0,16.32,16.2,18.2,18.16,18.7,12.45,17.5,20.46
POSITION TRADING,"A speculative TRADING strategy based on holding a LONG POSITION or SHORT POSITION for several weeks or months. Position trading, though relatively short-term in nature, has a longer horizon thanMOMENTUM TRADING.",palgrave,0,38.82,11.7,0,15.37,13.8,11.03,11.75,12.65
POSITIVE BASIS,"A market state where the price of the cash or SPOT MARKET SECURITY is greater than the price of the underlying FUTURES contract. See also BASIS RISK, NEGATIVE BASIS.",palgrave,0,65.22,7.8,0,8.92,8.1,8.71,7.75,9.94
POSITIVE CARRY,"Any transaction or trade where the RETURNS generated by an ASSET are greater than the financing and storage charges required to support the asset. See also CARRY, CARRY TRADE, NEGATIVE CARRY.",palgrave,0,55.74,9.3,0,11.77,10.8,10.01,8.75,11.36
POSITIVE CONVEXITY,"A characteristic of certain financial ASSETS where gains are greater, and losses are smaller, than those of LINEAR INSTRUMENTS or those with NEGATIVE CONVEXITY. LONG OPTIONS, and BONDS with no OPTIONALITY feature positive convexity. See also NEGATIVE CONVEXITY, NONLINEAR INSTRUMENT, POSITIVE GAMMA.",palgrave,0,23.43,13.5,15,16.64,14.5,11.47,11.33333333,14.17
POSITIVE GAP,"A general measure of a company’s exposure to INTEREST RATE REPRICING RISK. A positive gap arises when RATE SENSITIVE ASSETS reprice faster than LIABILITIES (e.g., have shorter DURATION), meaning a company will experience a loss if rates fall and a gain if rates rise. Also known as ASSET SENSITIVE. See also GAP, GAPPING, NEGATIVE GAP.",palgrave,0,49.01,9.9,13,10.49,9.5,10.92,8.875,12.07
POSITIVE OBLIGATION,See AFFIRMATIVE OBLIGATION,palgrave,0,-24.64,17.4,0,20.83,17.8,14.31,2.5,27.87
POSITIVE WORKING CAPITAL,A financial state where a company’s CURRENT ASSETS exceed its CURRENT LIABILITIES. Positive working capital indicates the availability of sufficient LIQUIDITY to cover OBLIGATIONS com- ing due. See also NEGATIVE WORKING CAPITAL.,palgrave,0,18.31,13.4,14.6,16.51,12.9,12.06,8.333333333,16.78
POSITIVE YIELD CURVE,"A TERM STRUCTURE where short-term INTEREST RATES are lower than long-term interest rates. The positive yield curve is the most common state of the term structure in financial systems operating under normal market conditions (i.e., low INFLATION, stable eco- nomic growth). Also known as UPWARD SLOPING YIELD CURVE. See alsoFLAT YIELD CURVE, KINKED YIELD CURVE, NEGATIVE YIELD CURVE, YIELD CURVE.",palgrave,0,64.71,8,11.2,13.04,12.4,9.91,8.5,10.67
POST-FUNDED POLICY,See RETROSPECTIVE FINITE POLICY.,palgrave,0,-8.73,15.5,0,17.4,14.7,15.68,3,21.6
POT,A portion of a NEW ISSUE that is retained by the LEAD MANAGER to facilitate large block sales to INSTITUTIONAL INVESTORS.,palgrave,0,50.16,11.5,0,10.33,11.7,9.94,13.5,12.21
POTENTIAL EXPOSURE,"A measure of the current and future CREDIT RISK exposure of a financial CONTRACT with uncertain or variable value, such as a DERIVATIVE, REPURCHASE AGREEMENT, or LOAN COMMITMENT. It is often calculated as the sum of ACTUAL EXPOSURE (MARK-TO-MARKET value) and FRACTIONAL EXPOSURE (an estimate of future value obtained through statistical or SIMULATION-based models). Also known as RISK EQUIVALENT EXPOSURE.",palgrave,0,25.8,14.6,16.7,14.91,15.7,10.68,15.66666667,16.67
POTENTIAL MARKET RISK,See FRACTIONAL EXPOSURE.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,2.5,27.87
POWER BARRIER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION with an exponential PAYOFF that is either created (i.e., knocks-in) or extin- guished (i.e., knocks-out) when a particular BARRIER is breached. See alsoPOWER OPTION, BARRIER OPTION.",palgrave,0,39.33,11.5,0,14.78,15.4,11.22,11,12.67
POWER-OF-ATTORNEY,"A legal authorization given by one party (the PRINCIPAL) to another party (the ATTORNEY-IN-FACT) to deal in specified, and binding, transactions on its behalf.",palgrave,0,21.74,16.2,0,13.7,17.3,10.09,18,17.93
PPI,See PRODUCER PRICE INDEX.,palgrave,0,50.5,7.2,0,7.25,6.5,11.73,2,11.6
PREANNOUNCEMENT,A process used by a PUBLIC COMPANY where it releases financial or corporate information (particularly forecast earnings) to the marketplace ahead of a formally scheduled release date to allow the market to absorb the information and dampen the potential impact on its STOCK PRICE.,palgrave,0,9.9,22.8,0,14.46,26,11.56,32,24.87
PREDATORY LENDING,"Unethical, and sometimes illegal, LENDING prac- tices followed by certain FINANCIAL INSTITUTIONS that seek to take advan- tage of RETAIL CLIENTS through excessive fees and charges or through unfavorable and prejudicial terms.",palgrave,0,22.08,18.1,0,17.59,23.1,14.11,23,21.55
PREEMPTION RIGHT,See PREEMPTIVE RIGHT.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,1.5,14.53
PREEMPTIVE RIGHT,"The RIGHT of existing SHAREHOLDERS to invest in a NEW ISSUE of COMMON STOCK before it is offered to the market at large; only when shareholders have waived or transferred this right can new shares be offered to new shareholders. Where preemptive rights do not specifically exist, shareholders may still be protected through SUBSCRIPTION WARRANTS. Also known as ANTIDILUTION PROVISION, PREEMPTION RIGHT, SUBSCRIPTION PRIVILEGE. See also RIGHTS ISSUE.",palgrave,0,54.22,9.9,13.8,14.32,13.5,9.12,12,12.68
PREFERENCE,"The transfer of valuable property within 90 days of a com- pany’s BANKRUPTCY filing; preference payments made by the company to third parties that prejudice or impair the position of CREDITORS, or which favor one creditor over others, may be subject to CLAWBACK by the TRUSTEE or RECEIVER. Also known as VOIDABLE . See also  PERIOD.",palgrave,0,44.44,11.6,13.6,11.08,11.4,11.15,12.66666667,13.87
PREFERENCE OPTION,See CHOOSER OPTION.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
PREFERENCE PERIOD,A 90-day period preceding a company’s BANKRUPTCY filing. See also PREFERENCE.,palgrave,0,15.13,12.5,0,12.63,10,13.96,4.25,20.38
PREFERENCE SHARE,"In the United Kingdom, PREFERRED STOCK.",palgrave,0,73.85,4.5,0,10.08,8.3,6.57,2,2.4
PREFERENTIAL CREDITOR,"In the United Kingdom, a PREFERRED CREDITOR.",palgrave,0,55.91,7.2,0,9.87,7.6,8.5,3.5,8.51
PREFERENTIAL DEBT,"In the United Kingdom, DEBT that receives preferred repayment status in the event of BANKRUPTCY, accorded to PREFERENTIAL CREDITORS.",palgrave,0,35.27,13.1,0,16.59,16.3,12.89,14.5,18.13
PREFERRED CREDITOR,"A CREDITOR that is repaid after holders of SECURED DEBT, but before unsecured creditors, typically defined to include PENSION TRUSTEES and employees owed salary or other compensation. Also known as PREFERENTIAL CREDITOR.",palgrave,0,29.86,13.1,0,15.95,14.4,12.82,12,15.15
PREFERRED RISK,An INSURED with a lower PROBABILITY of generating a loss and CLAIM than a standard applicant; INSURERS attempt to iden- tify such RISKS for inclusion in their PORTFOLIOS in order to maximize UNDERWRITING income and minimize SETTLEMENTS.,palgrave,0,17,20.1,0,14.17,22.6,13.15,28.5,25.61
PREMARKET,The period before the official opening of TRADING on a spe- cific EXCHANGE or marketplace. Trading activity may occur in the premar- ket period through ELECTRONIC COMMUNICATIONS NETWORKS or otherALTERNATIVE TRADING SYSTEMS.,palgrave,0,21.4,14.3,0,16.53,14.8,12.33,12,15.15
PREMIUM BOND,"A BOND that trades at a PREMIUM to its PAR VALUE. See also DISCOUNT BOND, PAR BOND.",palgrave,0,88.23,3.1,0,2.46,1.4,8.7,3.75,5.75
PREMIUM CAPACITY,The ability for an INSURER or REINSURER to write a large volume of POLICIES on the same LINE or RISK.,palgrave,0,68.1,8.7,0,6.21,7.9,9.37,13,14
PREMIUM CURRENCY,A CURRENCY that trades at a higher value than another currency in the FORWARD market. See also DISCOUNT CURRENCY.,palgrave,0,53.37,8.2,0,9.31,6.9,7.43,5.75,5.91
PREMIUM LOADING,"The MARGIN an INSURER requires in order to cover overhead expenses (EXPENSE LOADING) and generate an appropriate PROFIT; premium loading is one of two components, along with PURE PREMIUM, used to determine FAIR PREMIUM.",palgrave,0,20.05,18.9,0,13.99,21.3,10.9,26,21.84
PREMIUM OVER BOND VALUE,"The value ascribed to the EQUITY charac- teristics of a CONVERTIBLE BOND, or the difference between the MARKET VALUE of a convertible and an equivalent STRAIGHT BOND without the EMBEDDED OPTION. In general, the higher the CONVERSION PRICE, the greater the premium over bond value. Also known as PREMIUM.",palgrave,0,46.47,10.8,14.1,11.77,11.2,8.63,11.83333333,12.23
PREMIUM RAID,"An attempt by a RAIDER or acquiring company to quickly purchase a block of a TARGET’s COMMON STOCK by offering SHAREHOLDERS a significant PREMIUM to the prevailing stock price. See also DAWN RAID,SATURDAY NIGHT SPECIAL.",palgrave,0,45.25,11.3,0,12.58,12.2,10.37,12.75,13.86
PREMIUM SWAP,An OVER-THE-COUNTER NONPAR SWAP where the receiver of FIXED RATES grants an upfront payment to the FLOATING RATE payer in exchange for a higher ongoing fixed rate inflow. See also DISCOUNT SWAP.,palgrave,0,63.7,8.4,0,11.25,10.5,10.84,8.5,8.9
PREMIUM TAX,A TAX payable by an INSURER to a state or jurisdiction based on the amount of PREMIUMS earned from INSURANCE activities. Premium taxes are generally included in EXPENSE LOADING.,palgrave,0,39.84,11.3,0,11.53,10,11.98,11.25,16.83
PREMIUMS IN FORCE,"A measure of an INSURER’s UNDERWRITING busi- ness, measured as PREMIUM earned on all INSURANCE policies that have not lapsed or have not been cancelled.",palgrave,0,54.56,11.9,0,12.02,15.2,11.82,16.5,16.4
PREPACK,See AGED BANKRUPTCY.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,14.53
PREPAYMENT,"(1) The early repayment of a MORTGAGE by a BORROWER as a result of the sale of the underlying home/property or a REFINANCING to take advantage of a lower INTEREST RATE environment. (2) The payment of any sum of money for goods or services that have not yet been received. A prepayment is reflected as an ASSET on the BALANCE SHEET. (1) See alsoPREPAYMENT MODEL, PREPAYMENT SPEED.",palgrave,0,37.47,16.4,0,9.35,17.3,10.25,22.75,19.97
PREPAYMENT MODEL,"An analytic process used to estimate the PREPAYMENT SPEED of MORTGAGES comprising a POOL or PASS-THROUGH SECURITY, which can then be used to value the ASSET. Common mod- els include the constant prepayment rate model, which assumes mortgagePRINCIPAL prepayments occur at a constant annual rate that can be estimated from historical mortgage data, and the Public Securities Association standard prepayment model, which assumes mortgage PREPAYMENTS occur at variable speeds (e.g., 0.2%/month for 30 months, then 6% annually).",palgrave,0,15.48,20.7,0,15.62,25.2,12.93,27.25,22.15
PREPETITION PHASE,"A stage of FINANCIAL DISTRESS, such as the VICINITY OF INSOLVENCY, when a company is preparing to file a BANKRUPTCY petition. During this period the rights of CREDITORS often supersede those of SHAREHOLDERS, as DIRECTORS and executives attempt to preserve as much ENTERPRISE VALUE as possible in advance of a REORGANIZATION or LIQUIDATION.",palgrave,0,19.2,17.2,0,13.87,17.3,10.91,21.75,21.92
PRE-REFUNDING,A new BOND issue floated by a company in order to repay an existing bond issue at the FIRST CALL DATE; proceeds of the pre-refunding are generally invested in low-RISK SECURITIES until the original bond can be called and redeemed. Pre-refunding typically occurs in an environment where INTEREST RATES have declined enough to make the REFINANCING an eco- nomically beneficial process.,palgrave,0,23.6,17.5,0,13.36,18.8,11.62,22.25,20.07
PRESENT EXPECTED VALUE,"An ACTUARIAL PRICING method of calculat- ing PREMIUM for INSURANCE coverage, generally via:PEV = Probocc (Facepol) (PVfactor)where Probocc is the PROBABILITY of loss occurrence, Facepol is the FACE VALUE of the POLICY, and PVfactor is a PRESENT VALUE factor.",palgrave,0,-0.94,22.8,0,15.21,24.8,13.42,31.5,25.73
PRESENT VALUE,"A financial computation where future CASH FLOWS are discounted back to current terms through use of an appropriate DISCOUNT RATE or COST OF CAPITAL. The general form of the equation is given as:PV = CF (1 + r )twhere CF is the future cash flow, r is the discount rate, t is the future period.The present value of a cash flow that is subject to CONTINUOUS DISCOUNTING is given as:where e is the exponential constant, N is the number of years over which the compounding occurs.The computation for multiple periods is given as:t =1 (1 + r )twhere CFt is the expected cash flow at time t, n is the number of periods, and other terms are as defined above.The present value of a recurring cash flow, as in an ANNUITY, is given as:11 ⎤⎣ rSee also DISCOUNTED CASH FLOW, FUTURE VALUE, NET PRESENT VALUE.",palgrave,0,7.87,29.8,0,9.37,35.6,11.27,32.5,32.34
PRESENTING BANK,"A BANK that seeks payment on a BILL OF EXCHANGE, DRAFT, or CHECK from the bank on which the order has been drawn.",palgrave,0,90.43,6.4,0,5.23,8.7,6.84,11.5,9.2
PRESETTLEMENT RISK,See FRACTIONAL EXPOSURE.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,2.5,27.87
PRESIDING DIRECTOR,See LEAD INDEPENDENT DIRECTOR.,palgrave,0,8.2,13.1,0,14.5,12.4,11.73,3,21.6
PRICE-BOOK RATIO,"A measure that compares market and ACCOUNTING values to determine potential undervaluation or overvaluation of a company. Price-book is generally computed via:where S is the current STOCK price and BVPS is BOOK VALUE per share.A high ratio, or an increasing ratio over time, may indicate a growth stock, while a low ratio may suggest an opportunity to purchase the stock of a com- pany that has not realized its valuation potential.",palgrave,0,26.98,18.3,0,12.14,20.3,10.96,24.75,20.96
PRICE COMPRESSION,"A phenomenon where the price of a CALLABLE BOND remains close to its call redemption price in a declining INTEREST RATE environment since the likelihood of a call, redemption, and REFINANCING increases.",palgrave,0,30.54,17,0,13.76,19.7,10.65,25,22.8
PRICE CONTROL,"Caps or ceilings placed by a government authority on spe- cific goods or services, generally as an attempt to control INFLATION. Price controls run contrary to free market economic principles and are more charac- teristic of certain COMMAND ECONOMIES.",palgrave,0,43.22,12.1,0,13.63,14,12.3,13.25,13.95
PRICE DISCOVERY,"The process of establishing a fair market price for an ASSET through the interaction of buyers and sellers via AUCTION or quotation,typically through an organized marketplace such as a physical or electronicEXCHANGE.",palgrave,0,22.08,18.1,0,16.49,21.8,12.13,23,22.8
PRICE/EARNINGS (P/E) RATIO,"A measure of a company’s value and EARNINGS RISK, computed from the latest reported earnings in the general form of:where S is the STOCK price and EPS is EARNINGS PER SHARE.",palgrave,0,48.47,14.2,0,9.53,15.8,9.76,19.5,16.27
PRICE ELASTICITY,"The ratio of a proportional change in quantity supplied or demanded for a proportional change in price; the greater the price elas- ticity, the more sensitive SUPPLY or DEMAND to changes in price. See alsoELASTICITY.",palgrave,0,27.49,18.1,0,12.66,20.6,11.24,24.5,20.86
PRICE KEEPING OPERATIONS,A technique used by the Japanese monet- ary authorities to “encourage” its FINANCIAL INSTITUTIONS to actively buy SECURITIES in order to provide price supports at key levels.,palgrave,0,18.69,17.4,0,14.39,17.9,12.58,20.5,21.17
PRICE LEVEL ACCOUNTING,See INFLATION ACCOUNTING.,palgrave,0,9.21,12.7,0,16.95,16.2,14.31,2.5,27.87
PRICE LIMIT,"A boundary placed on certain EXCHANGE-traded ASSETS (e.g., FUTURES, OPTIONS, COMMON STOCKS) that limits the amount of upward or downward price movement that can occur during a TRADING session. A price limit is a form of CIRCUIT BREAKER that is intended to control excessive VOLATILITY and/or market overreaction.",palgrave,0,38.66,13.8,0,13.7,16.6,12.72,14.5,12.93
PRICE SPREAD,"See BEAR SPREAD, BULL SPREAD.",palgrave,0,117.16,-1.9,0,4.96,4.6,0.25,1.5,2
PRICE SUPPORT,"A floor placed by a government authority on the price of a particular good, often an agricultural COMMODITY, typically implemented through the purchase of a particular amount of the good or the payment of any price differential between the agreed floor and the open market price.",palgrave,0,16.33,22.4,0,12.72,25.5,9.35,32,24.49
PRICE TAKER,"A small INVESTOR that has no ability to impact or influ- ence SECURITIES prices, and must simply accept the BID or OFFER in the marketplace.",palgrave,0,54.56,11.9,0,9.23,12.9,10.56,15.5,14.8
PRICE TALK,An estimate of the potential pricing on a NEW ISSUE of SECURITIES or a LOAN based on presoundings in the market by the LEAD MANAGER or ARRANGER.,palgrave,0,44.07,13.8,0,8.13,12.7,9.65,18.5,16.73
PRIMA FACIE,"Appearance of truth that is taken as fact, until there is evidence to the contrary.",palgrave,0,64.71,8,0,8.05,7.7,7.54,8.5,11.33
PRIMACY,"In INSURANCE, a rule that indicates which specific insurance coverage takes precedence when multiple coverage exists, in order to avoid dis- pute or conflict. See also APPORTIONMENT, DIVIDED COVER, OVERLAPPING INSURANCE, PRO-RATA.",palgrave,0,21.4,14.3,0,16.88,15.9,12.82,14,16.4
PRIMARY LAYER,"The main layer of INSURANCE coverage in PROPERTY AND CASUALTY INSURANCE, which exists between the DEDUCTIBLE and the POLICY CAP. The primary layer bears the initial losses once the deductible has been met. Also known as BURNING LAYER.",palgrave,0,50.12,9.4,11.9,11.3,9.3,10.08,7.666666667,11.4
PRIMARY MARKET,"The general marketplace for the FLOTATION of NEW ISSUE SECURITIES, including NOTES, BONDS, COMMON STOCK, PREFERRED STOCK, and CONVERTIBLE BONDS, on behalf of corporate or sovereign ISSUERS. Once securities are placed and the UNDERWRITING SYNDICATE “breaks” the primary market phase is concluded. Any subsequent TRADING activity forms part of the SECONDARY MARKET.",palgrave,0,37,12.4,15.5,16.24,15.5,12.39,13.33333333,16.15
PRIMARY OFFERING,"The sale of a corporate or sovereign ISSUER’s SECURITIES in the PRIMARY MARKET, including INITIAL PUBLIC OFFERINGS and DEBT NEW ISSUES. Subsequent new issues launched in the primary mar- ket are considered SECONDARY OFFERINGS.",palgrave,0,37.3,12.3,0,14.67,13.8,11.91,13.5,16.21
PRIME BROKER,"A BANK, INVESTMENT BANK, or SECURITIES DEALER that provides HEDGE FUNDS and other institutional INVESTORS with a full range of AGE services.",palgrave,0,49.15,11.9,0,13.29,15.1,11.9,14,14.25
PRIME BROKERAGE,"A suite of services provided by a PRIME BROKER to institutional clients (including HEDGE FUNDS and other large INVESTORS) that includes trade EXECUTION, SECURITIES lending and financing, trade SETTLEMENT, CUSTODY, PORTFOLIO analysis, and valuation and reporting. See also SYNTHETIC .",palgrave,0,17.84,15.6,0,17.69,17.8,13.51,16,19.08
PRIME RATE,"In the United States, a semifloating INTEREST RATE reflect- ing the unsecured lending rate that BANKS charge their best corporate customers.",palgrave,0,50.16,11.5,0,15.03,16,11.45,14.5,16.02
PRIME RATE FUND,A MUTUAL FUND or CLOSED-END FUND that invests primarily in corporate LOANS tied to the PRIME RATE. Prime rate funds fea- ture limited LIQUIDITY as a result of the ILLIQUID nature of the SECONDARY MARKET for corporate loans.,palgrave,0,60.65,9.5,0,10.5,11.1,12.06,12.5,12.86
PRINCIPAL,"(1) The primary, or authorizing, party in a transaction or busi- ness relationship. (2) The FACE VALUE of a financial transaction, such as a LOAN, BOND, or SWAP. (1) See also AGENT. (2) See also NOTIONAL.",palgrave,0,34.94,17.3,0,7.61,18.7,11.12,25,21.07
PRINCIPAL-ONLY (PO) STRIP,"A component of a stripped MORTGAGE- BACKED SECURITY or COLLATERALIZED MORTGAGE OBLIGATION that is entitled only to PRINCIPAL payments from the underlying SECURITIES; INTEREST COUPONS are redirected to the INTEREST-ONLY (IO) STRIP. The price of a PO strip declines as INTEREST RATES rise since higher rates slow REFINANCING and result in slower principal repayments. Since PO strips lack the additional CASH FLOW buffer generated by the coupons, they feature more price VOLATILITY than other FIXED INCOME securities.",palgrave,0,28.47,15.7,17.5,15.38,18.3,11.47,19.16666667,18.07
PRINCIPAL PROTECTED BOND,See GUARANTEED PRINCIPAL BOND.,palgrave,0,33.58,9.6,0,14.5,12.4,15.68,3,21.6
PRIOR LIEN BOND,"A BOND, often issued in a corporate REORGANIZATION, that gives INVESTORS a first CLAIM on the issuer’s ASSETS, even if the SECURITY is equally senior to other outstanding securities.",palgrave,0,25.12,17,0,13.3,18.1,12.7,19.5,18.5
PRIOR-PERIOD ADJUSTMENTS,"Significant changes to a company’s finan- cial accounts based on changes in ACCOUNTING policies or the correction of errors, which must be reflected in the RETAINED EARNINGS account.",palgrave,0,43.06,14.2,0,14.51,18.7,12.92,19,18.34
PRIOR PREFERRED STOCK,"PREFERRED STOCK that ranks senior to a com- pany’s other preferred stock issues. Within the preferred stock class, prior pre- ferreds are entitled to a first CLAIM on DIVIDENDS, and in a BANKRUPTCY and LIQUIDATION scenario, a first claim on the company’s ASSETS. See alsoSECONDARY PREFERRED STOCK.",palgrave,0,64,8.2,11.2,12.41,11.6,10.8,8.833333333,11.39
PRIVATE BANK,"(1) A BANK that specializes in wealth management ser- vices for high NET WORTH clients, including INVESTMENT MANAGEMENT, TRUST and CUSTODY services, FOREIGN EXCHANGE, and so forth. It may be established as a separate unit or division of a large international bank, or as a dedicated, stand-alone entity. (2) A bank that is not publicly owned.",palgrave,0,43.06,14.2,0,11.2,16.7,10.66,19.5,17.63
PRIVATE BANKER,"A professional working at a BANK that is primarily respon- sible for managing the INVESTMENT PORTFOLIOS of high net worth individ- uals on a discretionary or nondiscretionary basis, and providing associated TRUST and CREDIT services. See also BANKER, FINANCIER, INVESTMENT BANKER.",palgrave,0,33.75,13.6,0,15.66,16.4,11.59,15.75,17.96
PRIVATE COMPANY,"A company whose SHARES are held by the DIRECTORS and SHAREHOLDERS, but which do not trade publicly. A private company is not typically subject to the same public disclosure rules as PUBLIC COMPANIES. See also CLOSE COMPANY, CLOSELY HELD COMPANY.",palgrave,0,49.52,9.7,13,11.01,9.5,8.24,8.666666667,10.32
PRIVATE LIMITED COMPANY,A corporate entity that offers LIMITED LIABILITY to its SHAREHOLDERS but which restricts the ability of shareholders to sell their SHARES in the open market or without first offering them to exist- ing shareholders. Private limited companies generally do not have to adhere to the same financial disclosure requirements as PUBLIC COMPANIES.,palgrave,0,28.17,15.8,0,14.92,17.8,10.7,21,19.63
PRIVATE PLACEMENT,"A DEBT SECURITY that is not registered with a REGULATOR and can therefore only be sold on a CAVEAT EMPTOR basis to a very limited number of sophisticated INVESTORS. Private placements are highly ILLIQUID and are generally only transferable to the original SYNDICATE or other QUALIFIED INSTITUTIONAL BUYERS when REGULATIONS permit. In the United States, a SAFE HARBOR RULE is provided by SECURITIES AND EXCHANGE COMMISSION RULE 144A, which allows limited resale of secur- ities that have not been registered. See also PRIVATE PLACING, REGISTRATION STATEMENT.",palgrave,0,32.73,14,15.2,14.04,15.2,11.13,15.25,16.04
PRIVATE PLACING,"In the United Kingdom, a PRIVATE PLACEMENT.",palgrave,0,64.37,6,0,9.06,7,8.5,2.5,2.8
PRIVATIZATION,"The act of converting a government or state-run company into a publicly owned company. The privatization typically generates a wind- fall gain for the government, and allows the company to operate as a private enterprise (though the government may retain a GOLDEN SHARE for a speci- fied period of time).",palgrave,0,37.64,14.2,0,11.67,15.1,9.3,19,15.6
PRO-FORMA,"Literally “as a formality;” in the financial sector it relates to the presentation of hypothetical or projected corporate BALANCE SHEET,",palgrave,0,8.88,17,0,16.07,16.1,12.52,17,22
PRO-FORMA EARNINGS REPORT,"A FINANCIAL STATEMENT that expresses PROFITS by excluding exceptional costs or including exceptional gains; although pro-forma reports are widely used by companies and analysts, they do not typically conform to GENERALLY ACCEPTED ACCOUNTING PRINCIPLES or INTERNATIONAL ACCOUNTING STANDARDS and must be interpreted with care.",palgrave,0,-15.49,26.4,0,20.15,30.7,14.79,39,30.33
PRO-FORMA INCOME STATEMENT,"A projected INCOME STATEMENT for a future period prepared by a company for internal management purposes; such pro-forma income statements are not released publicly. Income state- ment can be projected using the ANALYSIS OF ACCOUNTS method or the PERCENTAGE OF SALES METHOD. See also PRO-FORMA BALANCE SHEET, PRO-FORMA EARNINGS REPORT.",palgrave,0,37.6,12.2,14.6,14.44,13.8,11.41,12.33333333,12.28
PRO-RATA,"Literally “proportional allocation;” in the financial sector it reflects an allocation of NEW ISSUE SECURITIES to INVESTORS in proportion to the ORDERS submitted. In INSURANCE, it relates to a clause in a CONTRACT indicating that any SETTLEMENT to the INSURED will be in proportion to the total amount of insurance in force on the same PERIL. See also APPORTION-MENT, DIVIDED COVER, OVERLAPPING INSURANCE, PRIMACY.",palgrave,0,24.48,15.1,17.1,13.69,15,11.11,16.66666667,16.65
PROBABILITY,"A statistical measure that indicates the likelihood or chance that an event will occur. Probability is widely used to measure uncertain or risky events, including those impacting the financial markets.",palgrave,0,39.33,11.5,0,14.78,13.1,11.75,11.5,16.67
PROBABILITY OF RUIN,"The likelihood that the distribution of average losses exceeds a BENCHMARK SOLVENCY value (i.e., a minimum amount of CAPITAL surplus or tangible NET WORTH), leading to a company’s BANKRUPTCY. Probability of ruin is incorporated in certain DEFAULT models.",palgrave,0,18.35,15.4,0,14.62,15,12.47,15,18.13
PROCESS RISK,See OPERATIONAL RISK.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
PRODUCER PRICE INDEX,"An INFLATION measure at the wholesale level based on production components by COMMODITY, industry, and processing stage. The producer price INDEX may measure the prices of underlying goodsand commodities, but not associated services (in the United States the com- plete index includes volatile food and energy components, while the core index excludes both). See also CONSUMER PRICE INDEX, HARMONIZED INDEX OF CONSUMER PRICES, RETAIL PRICE INDEX.",palgrave,0,40.69,13.1,15,15.14,16.7,10.95,15.33333333,16.07
PRODUCT GUARANTEE INSURANCE,"A form of INSURANCE cover that provides the INSURED with restitution in the event a product it introduces to the marketplace is found to be defective, and which requires a recall and refund or repair. See also PRODUCT LIABILITY INSURANCE.",palgrave,0,42.72,12.3,0,11.14,12,9.76,13.5,14
PRODUCT LIABILITY INSURANCE,"A form of INSURANCE cover that pro- vides the INSURED with restitution in the event a product it introduces into the marketplace is found to be defective, and creates a legal LIABILITY. See alsoPRODUCT GUARANTEE INSURANCE.",palgrave,0,36.28,12.7,0,11.89,12,11.11,13.5,16.09
PROFIT,Any excess or surplus remaining after all costs have been subtracted from the REVENUE or selling price of a good or service or any surplus arising from the disposal of an asset at a price that is favorable compared to its original contract price. See also LOSS.,palgrave,0,56.08,11.3,0,9.29,11.8,9.51,14.25,13.66
PROFIT AND LOSS ACCOUNT,"In the United Kingdom, the INCOME STATEMENT.",palgrave,0,64.37,6,0,9.87,7.6,6.24,2.5,2.8
PROFIT FORECAST,An estimate provided by a company or developed by an INVESTMENT ANALYST related to expected PROFITS for a forthcoming period.,palgrave,0,8.88,17,0,13.17,13.5,12.52,20,26
PROFIT MARGIN,See NET .,palgrave,0,77.91,2.9,0,-13.21,-4,0.1,0.5,0.8
PROFIT TAKING,"The process of selling or covering an ASSET, INVESTMENT or other financial transaction in order to crystallize UNREALIZED PROFITS, converting them into REALIZED GAINS.",palgrave,0,13.28,17.4,0,17.12,18.8,13.38,20,22.93
PROFIT WARNING,A preemptive statement issued by a company to the marketplace in advance of a formally scheduled earnings announcement that indicates an impending shortfall in PROFITS expected to be reported during the official reporting period. See also PREANNOUNCEMENT.,palgrave,0,18.86,15.2,0,16.71,15.7,12.66,15.75,20.37
PROFITABILITY INDEX,"A method of determining the advisability of mak- ing a CAPITAL INVESTMENT based on the NET PRESENT VALUE framework. The profitability index can be computed as:where PVin is the PRESENT VALUE of cash inflows, PVout is the present value of cash outflows.In general, if PI > 1.0 the investment is expected to create value for SHAREHOLDERS and should be accepted; if PI < 1.0 the investment should be rejected, and if PI = 1.0, then the company should be indifferent. See alsoINTERNAL RATE OF RETURN.",palgrave,0,43.77,13.9,16.3,10.97,15.9,10,19.5,16.29
PROFITEER,"An individual or company that charges exorbitant prices for goods and services that are in short SUPPLY during a time of crisis (natural disaster, war).",palgrave,0,37.64,14.2,0,11.78,15.2,10.56,17.5,16.4
PROGRAM TRADING,(1) The general process of executing TRADES in finan- cial ASSETS through computerized platforms and customized ALGORITHMS.(2) See INDEX ARBITRAGE.,palgrave,0,17.34,15.8,0,17.81,18.7,15.68,16,18
PROGRESSIVE TAX,"A TAX scheme which directly or indirectly places a greater burden on higher income households by increasing the tax rate on the amount subject to taxation. INCOME taxes and luxury goods taxes are consid- ered progressive taxes. See also PROPORTIONAL TAX, REGRESSIVE TAX.",palgrave,0,48.5,10,12.5,12.23,10.7,10.59,8.833333333,13.16
PROHIBITED RISK,See UNINSURABLE RISK.,palgrave,0,59.97,5.6,0,9.23,9.9,14.31,1.5,14.53
PROJECT FINANCING,See PROJECT FINANCE.,palgrave,0,93.81,0.9,0,7.32,8.3,14.31,0.5,1.2
PROMISED YIELD,See YIELD TO MATURITY.,palgrave,0,50.5,7.2,0,2.9,2.9,11.73,2,11.6
PROMISSORY NOTE,A written promise by one party to pay another party a stated sum on a certain date or upon presentation; the promise represents the maker’s LIABILITY. A promissory note may be transferred to another party as a NEGOTIABLE INSTRUMENT through an ENDORSEMENT; the act of endors- ing the note allows the BENEFICIARY to convert it into cash. Also known as NOTE.,palgrave,0,42.41,12.4,13.6,10.21,11.5,8.53,13.5,13.37
PROMPT DATE,The specific date on which payment is due from the buyer on a good purchased from a seller.,palgrave,0,78.59,6.8,0,5.97,6.9,8.04,9,9.42
PROMPT MONTH,See NEARBY CONTRACT.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,0.5,1.2
PROOF OF LOSS,"Documentary evidence an INSURED must present an INSURER when submitting a CLAIM under an INSURANCE policy. Since an insurance CONTRACT requires the insured to have an INSURABLE INTEREST, proof of loss is an essential element in ensuring validity.",palgrave,0,26.81,14.2,0,14.16,14,11.64,16,20.23
PROPERTY INSURANCE,See PROPERTY AND CASUALTY INSURANCE.,palgrave,0,-1.29,14.7,0,14.24,11.2,13.36,4.5,26
PROPERTY TAX,"A TAX levied on various forms of real estate, including resi- dential homes, commercial buildings, and undeveloped land. Schemes for levying property tax depend on national and local practice, but generally cen- ter on applying a percentage amount on an appraised value.",palgrave,0,41.7,12.7,0,13.23,14.7,13.33,15,16.97
PROPORTIONAL TAX,"A TAX scheme where the tax rate is fixed as the amount subject to taxation increases, implying an equal burden on high- and low-income households, though in practice may be regressive in certain areas, e.g., consumption. In practice proportional taxes are relatively uncommon. Also known as FLAT TAX. See also PROGRESSIVE TAX, REGRESSIVE TAX.",palgrave,0,57.77,8.6,12.6,11.77,10.5,9.57,8.5,12.07
PROPORTIONAL TREATY,See PROPORTIONAL AGREEMENT.,palgrave,0,9.21,12.7,0,20.83,19.3,14.31,1.5,14.53
PROSPECTIVE FINITE POLICY,"An INSURANCE POLICY that seeks primar- ily to shift the timing risk of losses that are expected to occur in the future. In common with other FINITE RISK POLICIES, the prospective agreement is primarily a RISK FINANCING rather than RISK TRANSFER vehicle. See alsoRETROSPECTIVE FINITE POLICY.",palgrave,0,47.49,10.4,12.5,12.4,11.3,11.95,10.33333333,12.21
PROTECTED BID,"A BID quotation on a STOCK that is displayed via an ELECTRONIC TRADING center, is disseminated via a national market system and is the best bid available in the market. See also PROTECTED OFFER.",palgrave,0,54.22,9.9,0,9.39,9.4,9.12,11,12.68
PROTECTED CELL COMPANY,"A multiuser CAPTIVE with individual accounts (“cells”) that clients hire for SELF-INSURANCE programs. Individual cells are separated by statute, which prevents commingling of ASSETS and RISKS, and ensures the assets of each client remain safe in the event other cell clients encounter FINANCIAL DISTRESS. Protected cell companies are widely used by firms that are interested in self-insurance but do not want to estab- lish and manage a captive of their own. See also AGENCY CAPTIVE, GROUP CAPTIVE, PURE CAPTIVE, RENT-A-CAPTIVE, CAPTIVE, SENIOR CAPTIVE, SISTER CAPTIVE.",palgrave,0,41.4,12.8,12.6,14.5,16.1,10.08,13.375,11.81
PROTECTED OFFER,"An OFFER quotation on a STOCK that is displayed via an ELECTRONIC TRADING center, is disseminated via a national market system and is the best offer available in the market. See also PROTECTED BID.",palgrave,0,54.22,9.9,0,9.92,9.8,9.12,11,12.68
PROTECTION BUYER,"An institution that buys a CREDIT DERIVATIVE con- tract for a PREMIUM, creating a SHORT position in the CREDIT DEFAULT RISK of the REFERENCE ENTITY or REFERENCE OBLIGATION. See alsoPROTECTION SELLER.",palgrave,0,30.36,12.9,0,13.28,12,12.55,12.75,17.81
PROTECTION PAYMENT,The amount due to the PROTECTION BUYER from the PROTECTION SELLER in the event a REFERENCE ENTITY or REFERENCE OBLIGATION triggers a DEFAULT under a CREDIT DERIVATIVE contract.,palgrave,0,26.14,16.6,0,13.7,17.6,11.79,21,18.34
PROTECTION SELLER,"An institution that sells a CREDIT DERIVATIVE con- tract for a PREMIUM, creating a LONG position in the CREDIT DEFAULT RISK of the REFERENCE ENTITY or REFERENCE OBLIGATION. See also PROTECTION BUYER.",palgrave,0,38.32,11.9,0,12.18,11.3,12.33,13,17.65
PROTECTIVE STOP,Any INVESTMENT strategy that employs a STOP ORDER to protect downside RISK.,palgrave,0,50.84,9.2,0,12.28,9.7,10.81,7,11.47
PROTEST,"A certification sought by a holder of PROMISSORY NOTE or BILL OF EXCHANGE that has been dishonored or refused payment, typically required in order to commence legal proceedings.",palgrave,0,26.14,16.6,0,13.7,17.8,10.66,19,18.34
PROXY,(1) A document that conveys a COMMON STOCK SHAREHOLDER’s right to vote. (2) A person or institution authorized to vote on behalf of a shareholder.,palgrave,0,46.1,13,0,9.93,14.1,11.19,17.5,18
PROXY FIGHT,See PROXY CONTEST.,palgrave,0,93.81,0.9,0,3.43,5.2,14.31,0.5,1.2
PRUDENTIAL RATIO,See CAPITAL ADEQUACY RATIO.,palgrave,0,-8.73,15.5,0,10.15,8.8,11.73,3,11.6
PUBLIC COMPANY,"A company that has issued SHARES to INVESTORS through an INITIAL PUBLIC OFFERING, and which is listed and traded on a STOCK EXCHANGE. See also LISTED COMPANY, PRIVATE COMPANY",palgrave,0,56.76,8.9,0,10.72,9.5,8.71,8.25,7.18
PUBLIC DEBT,Any form of DEBT incurred by a government and its directAGENTS.,palgrave,0,68.77,6.4,0,8.97,6.8,8.49,6.5,8.04
PUBLIC FINANCE,"A field of study within FINANCE centered on govern- ment REVENUES (e.g., TAXES), EXPENSES, and DEBT, and how these impact an economy and its STAKEHOLDERS.",palgrave,0,54.56,11.9,0,10.86,15.6,13.09,15.5,14.8
PUBLIC ISSUE,See PUBLIC OFFERING.,palgrave,0,34.59,9.2,0,7.32,8.3,9.05,1.5,14.53
PUBLIC LIMITED COMPANY (PLC),"In the United Kingdom a corporate entity with LIMITED LIABILITY, registered under the Companies Act, which is publicly listed and traded.",palgrave,0,16.32,16.2,0,14.21,15.3,11.45,16.5,19.83
PUBLIC OFFERING,"A form of NEW ISSUE in which the ISSUER invites the public to INVEST in SHARES or other SECURITIES directly, without the use of an INTERMEDIARY. Also known as PUBLIC ISSUE.",palgrave,0,55.74,9.3,0,8.41,7.9,8.48,8.25,10.07
PUBLIC SECTOR,"The broad component of the economy that is related to the government, which typically centers on social services, health, defense, and any state-run CORPORATIONS.",palgrave,0,30.2,15,0,15.15,17.8,10.09,18,17.93
PUBLISHED ACCOUNTS,"In the United Kingdom, the minimum elements of FINANCIAL STATEMENTS of companies that are required to file such under law.",palgrave,0,42.72,12.3,0,12.01,12.8,9.37,14,16
PUFFERY,"A legal, if questionable, sales practice where BROKERS pro- mote the positive aspects/upside of a potential INVESTMENT while deemphasiz- ing RISKS/negative points in order to entice clients to invest.",palgrave,0,33.58,15.8,0,16.31,21,15.42,21.5,19.88
PUKE POINT,"A capitulation price, or the price at which a DEALER or TRADER decides to sell some, or all, of a money-losing position.",palgrave,0,57.61,10.7,0,7.49,10.8,9.03,14,12.44
PULL TO PAR,"A phenomenon where the price of a FIXED INCOME SECURITY will migrate toward its PAR VALUE as MATURITY approaches. This occurs because the INVESTOR receives REDEMPTION value (i.e., par value) once the security is redeemed by the ISSUER. Also known as PULL TO REDEMPTION.",palgrave,0,48.09,10.2,11.9,10.84,10.1,9.39,8.666666667,10.43
PUNT,(1) A risky or speculative position. (2) The act ofSPECULATION.,palgrave,0,35.95,10.7,0,9.08,9,13.61,7,16
PUNTER,A SPECULATOR.,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1,20.8
PUP COMPANY,The subsidiary of an INSURER that writes SPECIAL RISK INSURANCE on behalf of the parent company or other group companies.ACCOUNTING.,palgrave,0,34.26,13.5,0,14.91,15.2,11.73,14,16
PURCHASED GOODWILL,Any form of GOODWILL that a company obtains through the ACQUISITION of another company or business.,palgrave,0,38.32,11.9,0,12.53,11.3,7.39,12,8.9
PURE ARBITRAGE,"(1) Any ARBITRAGE strategy that makes use of external, or borrowed, funds rather than internal funds. (2) Any arbitrage strategy that is executed in a truly riskless manner, by simultaneously buying and selling the same ASSET in different MARKETS to take advantage of a price discrepancy. (1,2) See also QUASI ARBITRAGE.",palgrave,0,11.25,24.4,0,12.84,29,12.36,37.5,26.67
PURE BOND VALUE,See INVESTMENT VALUE.,palgrave,0,34.59,9.2,0,9.23,9.9,9.05,1.5,14.53
PURE CATASTROPHE SWAP,An OVER-THE-COUNTER SWAP trans- action that allows INSURERS or REINSURERS to exchange uncorrelated CATASTROPHIC HAZARDS in their PORTFOLIOS in order to improve DIVERSIFICATION. See also CATASTROPHE REINSURANCE SWAP.,palgrave,0,14.97,14.7,0,20.06,17.2,11.66,11.5,17.03
PURE PLAY,A company that is very focused in its business operations and has little or no DIVERSIFICATION in other areas. This often makes it sim- pler for INVESTORS to discern the RISKS and RETURNS that can be obtained from investing in such a company’s STOCK.,palgrave,0,57.61,10.7,0,9.63,11.7,9.75,13.5,12.44
PURE PREMIUM,"The amount an INSURER needs to charge to cover EXPECTED LOSSES and LOSS ADJUSTMENT EXPENSES; pure premium is one of two components, along with PREMIUM LOADING, used to determine FAIR PREMIUM. See also EXPENSE LOADING.",palgrave,0,45.25,11.3,0,11.95,12,9.47,13.25,15
PURE PREMIUM RATING METHOD,"A method of determining the PREMIUM on PROPERTY AND CASUALTY INSURANCE that excludes PREMIUM LOADING factors, generally computed as:where Loss is the amount of losses per year, LAE is the LOSS ADJUSTMENT EXPENSE per year, and U is the number of exposure units (e.g., policies).",palgrave,0,17.34,22,0,12.38,25.5,13.59,32.5,26
PURE RISK,"A RISK exposure that can result only in a loss or no loss, but no possibility of a gain. Also known as STANDARD RISK. See also SPECULATIVE RISK.",palgrave,0,70.5,5.7,8.8,4.38,2.9,7.48,4.666666667,8.01
PURPOSE LOAN,"A LOAN, collateralized by SECURITIES and subject to MARGIN rules, where the proceeds are used to purchase other securities. Also known as MARGIN LOAN. See also NON.",palgrave,0,53.88,8,8.8,9.54,7.1,8.18,4.5,6.56
PUT,"See  OPTION.where c is the price of the call option, X is the strike price, p is the price of the put option, S is the underlying STOCK (or asset) price, rf is the RISK-FREE RATE, t is the time to maturity, and e is the exponential constant.",palgrave,0,39.68,19.6,0,5.59,21.5,10.95,28,21.7
PUT-CALL RATIO,"The ratio of OPEN INTEREST in EXCHANGE-TRADED PUT OPTIONS to CALL OPTIONS, and an indicator of market sentiment; a put-call ratio that favors puts may be indicative of BEARISH sentiment, while one that favors calls may indicate a BULLISH sentiment.",palgrave,0,22.42,20.1,0,12.78,23.2,10.75,28,21
PUT ON A CALL,"A COMPOUND OPTION that grants the buyer the right to sell an underlying CALL OPTION to the seller of the compound. See also CALL ON A CALL, CALL ON A PUT, PUT ON A PUT.",palgrave,0,79.09,6.6,0,3.94,5.4,7.21,8.25,8.14
PUT ON A PUT,"A COMPOUND OPTION that grants the buyer the right to sell an underlying PUT OPTION to the seller of the compound. See also CALL ON A CALL, CALL ON A PUT, PUT ON A CALL.predefined STRIKE PRICE and the best performing ASSET in a PORTFOLIO. See also CALL ON THE BEST OF N-ASSETS, CALL ON THE WORST OF N-ASSETS, MULTI-INDEX OPTION, OPTION ON THE BEST/WORST OF N-ASSETS, PUT ON THE WORST OF N-ASSETS.",palgrave,0,63.73,10.4,10.5,7.43,11.6,8.09,13.83333333,11.91
PUT ON THE MINIMUM,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a PAYOFF based on the difference between a predefined STRIKE PRICE and the lowest price achieved by the UNDERLYING reference ASSET over the life of the transaction. See also OPTION ON THE MAXIMUM/ MINIMUM, CALL ON THE MAXIMUM, LOOKBACK OPTION.",palgrave,0,47.12,12.7,0,12.77,15.4,10.42,16.5,14.6
PUT OPTION,"A DERIVATIVE CONTRACT that gives the buyer the RIGHT, but not the obligation, to sell an UNDERLYING ASSET to the seller at a set STRIKE PRICE at, or before, EXPIRY; in exchange, the buyer pays the seller a PREMIUM. The PAYOFF to the put buyer is given as:max(0, strike price – asset price)Puts, which can be written on a broad range of financial and COMMODITY references, are available as EXCHANGE-traded and OVER-THE-COUNTER con- tracts, and can be structured as AMERICAN OPTIONS, BERMUDAN OPTIONS, or EUROPEAN OPTIONS.Long put payoff profileShort put payoff profileSee also CALL OPTION.",palgrave,0,23.26,21.8,0,12.43,26.8,11.15,30.25,22.79
PUT PRICE,The price INVESTORS can expect to receive for a PUTABLE BOND if the OPTION to put the securities back to the ISSUER is exercised. Also known as REDEMPTION PRICE.,palgrave,0,73.68,6.6,0,8.34,7.4,8.71,7.75,9.94
PUT PROTECTED EQUITY,"A CONTINGENT EQUITY facility where a company buys a PUT OPTION on its own COMMON STOCK from an INTERMEDIARY, generating an economic gain which increases RETAINED EARNINGS if the value of its stock declines (such as in the aftermath of a large loss resulting from a CATASTROPHIC HAZARD). See also LOSS EQUITY PUT.",palgrave,0,36.12,14.8,0,10.91,14.9,10.02,19.25,18.15
PUT PROVISION,A clause contained in the INDENTURE of a BOND that spe- cifies the terms under which the INVESTOR may PUT the outstanding SECUR- ITIES to the ISSUER. The provision indicates the PUT PRICE and any relevant LOCKOUT PERIOD. See also CALL PROVISION.,palgrave,0,65.73,7.6,11.9,9.62,8.5,10.72,8.333333333,11.31
PUT SWAPTION,See PAYER SWAPTION.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
PUTABLE ASSET SWAP,"A structured DERIVATIVE comprised of a PUTABLE SWAP and an underlying BOND. The INVESTOR in the structure retains a PUT OPTION on the bond, allowing it to sell the package back to the seller at a given STRIKE CREDIT SPREAD. If the spread widens during the life of thetransaction (e.g., the price of the asset falls as a result of specific or general market/credit conditions), the investor puts the package to the seller, receiving PRINCIPAL and INTEREST defined by the strike spread. See also CALLABLE ASSET SWAP.",palgrave,0,57.81,10.6,12.6,10.39,12.6,10.16,13.625,12.86
PUTABLE COMMON STOCK,"A form of COMMON STOCK where the issu- ing company floats SHARES that feature a PUT OPTION agreement, giving INVESTORS the right to sell the stock back to the company at a future time and STRIKE price. Such issues are not particularly common, as a falling stock price moves the investor’s option IN-THE-MONEY, precisely when the company may be experiencing FINANCIAL DISTRESS. See also CALLABLE COMMON STOCK.",palgrave,0,57.3,10.8,11.9,11.84,13.8,9.69,13.5,11.31
PUTABLE CONVERTIBLE BOND,"A CONVERTIBLE BOND that contains a PUT OPTION which gives INVESTORS the RIGHT to sell the SECURITIES back to the ISSUER at a PREMIUM to PAR VALUE on a specific date(s); in exchange for granting investors the put, the issuer obtains a lower COUPON. The puta- ble structure is offered in one of two forms: a single premium put, allowing for a one-time EXERCISE (commonly used in the EUROMARKETS) and a roll- ing premium put, allowing for multiple exercise opportunities on predefined dates. See also CONDITIONAL PUT CONVERTIBLE BOND.",palgrave,0,41.33,14.9,16.7,11.21,16.9,10.61,20.5,17.27
PUTABLE SWAP,"An OVER-THE-COUNTER SWAP structure that gives the institution receiving FIXED RATES the OPTION to cancel the transaction at a future date. See also CALLABLE SWAP, CANCELLABLE SWAP.",palgrave,0,57.77,8.6,0,14.14,12.2,11.91,7.75,9.84
PYRAMID,"A corporate structure that relies on the use of HOLDING COMPANIES and SUBSIDIARIES to generate multiple layers of FINANCING. A pyramid structure is legal but adds complexity to the analysis process, and may be difficult for LENDERS to monitor.",palgrave,0,43.22,12.1,0,12.76,13.1,12.3,14.25,17.03
QFII,See QUALIFIED FOREIGN INSTITUTIONAL INVESTORS.,palgrave,0,-18.21,17,0,25.84,20.6,16.52,3.5,18
QIB,See QUALIFIED INSTITUTIONAL BUYER.,palgrave,0,-34.11,19,0,20.3,17.1,15.68,3,21.6
QUAD WITCH,See QUADRUPLE WITCHING DAY.,palgrave,0,75.88,3.7,0,10.15,8.8,11.73,1,1.6
QUADRUPLE WITCHING DAY,"A single business day when INDEX FUTURES, index OPTIONS, individual EQUITY options and SINGLE STOCK FUTURES all settle simultaneously, which occurs once each quarter (i.e., the third Friday in March, June, September, and December). There is evidence to indicate that volume and VOLATILITY increase during these days as market participants rebalance their positions. See also TRIPLE WITCHING DAY.",palgrave,0,34.97,13.2,14.1,15.14,15.7,9.77,13.33333333,13.93
QUALIFIED INSTITUTIONAL BUYER,"An INSTITUTIONAL INVESTOR that is authorized to purchase and sell to other QIBs and DEALERS PRIVATE PLACEMENTS and other SECURITIES that have not been floated in the public markets. The QIB resale mechanism injects additional LIQUIDITY into otherwise UNMARKETABLE SECURITIES. In the United States, aSECURITIES AND EXCHANGE COMMISSION SAFE HARBOR, RULE 144A, allows QIB resales provided that the number of QIBs and the minimum size of their participation are specified in the selling documents or private place- ment agreement.",palgrave,0,27.86,15.9,16.3,15.38,18.4,11.14,18.5,17.61
QUANGO,See QUASI AUTONOMOUS NONGOVERNMENTAL ORGANIZATION.,palgrave,0,-52.05,21.8,0,30.48,24.4,16.52,4.5,26
QUANTITATIVE EASING,"A form of MONETARY POLICY where govern- ment authorities purchase GOVERNMENT SECURITIES from the open market, thereby increasing MONEY SUPPLY. This policy tends to be enacted when fur- ther easing is required but INTEREST RATES are already near 0% and cannot be reduced further.",palgrave,0,40.69,13.1,0,12.88,14.7,11.19,15.5,15.16
QUANTITY THEORY OF MONEY,"An economic theory put forth by philoso- pher David Hume in the eighteenth century (and popularized by others since) which relates the level of prices with the amount of MONEY in the system. In particular, the following relationship is proposed:where M is the amount of money in circulation, V is the VELOCITY OF MONEY, P is the level of prices, Q is the real output of an economy.",palgrave,0,36.97,16.6,0,9.24,17.3,10.9,22.5,18.89
QUANTO,"An OPTION that converts gains from an underlying DERIVATIVE into a target CURRENCY at a predetermined FOREIGN EXCHANGE RATE. The quanto allows an INVESTOR to participate in a foreign market/ASSET while protecting it from exchange rate RISK. Also known as GUARANTEED EXCHANGE RATE OPTION, QUANTITY ADJUSTED OPTION.",palgrave,0,30.16,13,13.6,14.73,13.2,10.8,11.16666667,13.94
QUANTO SWAP,See DIFFERENTIAL SWAP.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
QUASI ARBITRAGE,"Any ARBITRAGE strategy that makes use of internal, rather than external or borrowed, funds. See also PURE ARBITRAGE.",palgrave,0,53.88,8,0,11.57,9,10.22,6,12.49
(QUANGO),"A semigovernmental organization that is financed by, and fea- tures specific authorities that have been devolved from, a national or state government. See also GOVERNMENT-SPONSORED ENTERPRISE, QUASI AUTONOMOUS NONGOVERNMENTAL ORGANIZATION.to include cash, MARKETABLE SECURITIES (e.g., FIXED INCOME SECURITIES, Q COMMON STOCK, PREFERRED STOCK) and ACCOUNTS RECEIVABLE. Thequick asset measure is precisely equal to CURRENT ASSETS less INVENTORY. See also QUICK RATIO.",palgrave,0,22.11,14,14.6,18.9,17.5,12.68,11.625,13.99
QUICK RATIO,"A measure of a company’s ability to meet OBLIGATIONS that are coming due with its most LIQUID ASSETS, typically computed as:where QA is QUICK ASSETS and CL is CURRENT LIABILITIES.A quick ratio above 1.0 indicates that the company has sufficient CASH FLOW from maturing or saleable assets to meet its short-term OBLIGATIONS; a ratio below 1.0 suggests the possibility of LIQUIDITY RISK pressures. Since the quick ratio only includes truly liquid assets as a potential source of cash, it is a more con- servative measure than the CURRENT RATIO. Also known as LIQUID RATIO.",palgrave,0,39.71,15.5,15.9,12.02,18.1,9.89,20.66666667,18.05
QUIET PERIOD,The period of time during which a company in the process of registering a NEW ISSUE of SECURITIES is prohibited from releasing any public relations material or other sensitive information.,palgrave,0,7.19,19.7,0,13.88,18.5,10.91,25,24
QUOTA,An allotment or maximum amount; in the context of TRADE it relates to the specific amount of a good or COMMODITY that can be IMPORTED orEXPORTED.,palgrave,0,45.09,13.4,0,9.35,13.3,9.78,19,19.63
QUOTA SHARE,"In REINSURANCE, a PROPORTIONAL AGREEMENT where an INSURER and REINSURER agree to split PREMIUMS, RISKS, losses, and LOSS ADJUSTMENT EXPENSES as a fixed percentage of the policy limit rather than a specific monetary amount. See also SURPLUS SHARE.",palgrave,0,43.73,11.9,0,13.69,14,12.06,15,19.18
QUOTATION,"(1) An estimate of the cost of a particular service or coverage, as in INSURANCE. (2) An indication of the price of a SECURITY or other ASSET. Also known as QUOTE. (2) See also FIRM QUOTE, INDICATIVE QUOTE.",palgrave,0,52.19,10.7,0,6.67,9,9.57,13,14.97
QUOTE,See QUOTATION.,palgrave,0,35.61,8.8,0,4.2,10.2,11.63,1,20.8
QUOTE-DRIVEN MARKET,"A marketplace where DEALERS or MARKET MAKERS give prices to BROKERS or TRADERS, who can then buy or sell. Prices are typically adjusted to reflect ORDER flow and SUPPLY and DEMAND forces. Institutional OVER-THE-COUNTER markets are often quote driven. See alsoDEALER MARKET, ORDER-DRIVEN MARKET.",palgrave,0,51.85,8.8,10.7,13.44,10.9,9.92,6.25,8.95
QUOTED SPREAD,The difference between the BID and the OFFER before a transaction occurs; the quoted spread may be a FIRM QUOTE or an INDICATIVE QUOTE.,palgrave,0,55.58,11.5,0,9.58,12.6,8.77,15,12.93
R-SQUARED,See COEFFICIENT OF DETERMINATION.,palgrave,0,-34.11,19,0,18.85,15.9,11.73,3,21.6
RAIDER,"A hostile acquirer that attempts to purchase another com-pany, often to engage in ASSET STRIPPING or to receive GREENMAIL pay-ments. Although raiders were especially active during the HOSTILE TAKEOVERphase of the 1980s, they still exist.",palgrave,0,45.25,11.3,0,15.08,14.6,12.63,10.75,9.29
RAINBOW OPTION,See MULTI-INDEX OPTION.,palgrave,0,9.21,12.7,0,11.15,13,19.58,1.5,1.2
RAINMAKER,"A financial services professional that is capable ofgenerating a significant amount of new business for an employing BANK orINVESTMENT BANK. The rainmaker generally refers to bankers that are cap-able of winning MANDATES to arrange NEW ISSUES or CORPORATE FINANCEtransactions, but can also apply to institutional salespeople, BROKERS, or trad-ers that are extremely successful in their respective areas.",palgrave,0,17.17,17.9,0,17.58,21.5,12.53,22.75,22.63
RALLY,"A rise in the price of a SECURITY or market, which is seen as aBULLISH signal. A rally may be of short or long duration, depending on funda-mental and technical factors. See also RELIEF RALLY.",palgrave,0,59.6,7.9,10.5,6.71,5.6,9.18,6.5,9.25
RAMPING,"The process of trying to push up the value of a STOCK orother SECURITY through a combination of short-term buying and spreadingof positive news, with the aim of trying to secure a short-term price rise so thatan existing LONG POSITION can be sold at a profit.",palgrave,0,33.25,20.1,0,10.11,23.5,10.38,28,22.75
RANDOM VARIABLE,"An event or observation with an uncertain outcome;a random variable may be discrete (appearing at specified time intervals) orcontinuous (appearing at any time), and it may be limited to a defined value orcarry any value. Samplings of random variables are often used in SIMULATIONprocesses that generate ASSET prices or distributions.",palgrave,0,20.72,16.6,0,15.15,17.9,11.51,18.5,18.8
RANDOM WALK,"A financial theory indicating that ASSET prices move inperiod associated with the asset observations, the greater the possible dispersionof prices. More formally, the random walk is a STOCHASTIC PROCESS whereasset prices are RANDOM VARIABLES, with each price increment independentand identically distributed. See also EFFICIENT MARKET HYPOTHESIS.Additional references: Cootner (1964); Samuelson (1965).",palgrave,0,11.92,15.8,17.1,20.99,19.6,13.15,14.5,20.92
RANGE FLOATER,"See RANGE FLOATING RATE NOTE.the INVESTOR with an enhanced COUPON if the FLOATING RATE referencetrades within a predefined range; for every day the reference falls outside theband the investor loses one day’s interest. The security is effectively a standardFRN with a strip of embedded BINARY OPTIONS. Also known as ACCRUALNOTE, DAY COUNT NOTE, RANGE FLOATER. See also CAPPED FLOATING RATE NOTE, INVERSE FLOATING RATE NOTE, PERPETUAL FLOATING RATE NOTE, RANGE KNOCK-OUT FLOATING RATE NOTE.",palgrave,0,52.7,10.5,12.6,14.39,14.3,9.89,12,13.35
RANGE FORWARD,See ZERO COST COLLAR.,palgrave,0,75.88,3.7,0,1.45,1.8,7.78,1,1.6
RANGE KNOCK-OUT FLOATER,See RANGE KNOCK-OUT FLOATING RATE NOTE.,palgrave,0,90.77,2.1,0,10.08,8.3,9.2,2,2.4
RAROC,See RISK-ADJUSTED RETURN ON CAPITAL.,palgrave,0,32.56,10,0,13.08,11.2,10.2,3.5,10
RATCHET OPTION,See CLIQUET OPTION.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,0.5,1.2
RATE,See INTEREST .,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1.5,20.8
RATE LOCK,"A mechanism that guarantees a BORROWER an underlying INTEREST RATE on a LOAN for a period ranging from 30 to 90 days. The rate lock ensures the borrower faces a known financing cost, as long as the loan is concluded during the effective period. Also known as LOCK-IN PROVISION. See also DROP LOCK, SPREAD LOCK.",palgrave,0,65.93,7.5,13,8.4,7.3,8.91,8.875,12.79
RATE MAKING,"In INSURANCE, the process of establishing PREMIUM rates so that they adequately cover EXPECTED LOSSES and are reasonable and non- discriminatory. When supplemented by relevant LOAD factors, the INSURER obtains the FAIR PREMIUM that it charges INSUREDS. See also EXPENSE LOADING, PREMIUM LOADING, PURE PREMIUM.",palgrave,0,30.87,12.7,15,15.25,13.8,11.4,11.83333333,14.89
RATE OF EXCHANGE,See FOREIGN EXCHANGE RATE.,palgrave,0,75.88,3.7,0,8.7,7.7,7.78,1,1.6
RATE OF INTEREST,See INTEREST RATE.,palgrave,0,59.97,5.6,0,3.43,5.2,9.05,1.5,14.53
RATE ON LINE,"A measure of an INSURER’s or REINSURER’s gross profitabil- ity, generally calculated as:where Pr is PREMIUM and Line is the amount of the LINE provided by the insurer or reinsurer.The higher the rate on line, the more gross profit the insurer earns.",palgrave,0,28.85,19.7,0,11.51,22.9,11.36,30,24.42
RATE-SENSITIVE ASSETS,"ASSETS of a FINANCIAL INSTITUTION that are exposed to changes in INTEREST RATES (e.g., FIXED INCOME INVESTMENTS,REVERSE REPURCHASE AGREEMENTS, LOANS). Measurement of rate-sensi- tive assets is an essential component of GAP MANAGEMENT; by determining sensitivity to changes in interest rates, a financial institution can manage its exposure to DIRECTIONAL RISK, CURVE RISK, and REPRICING RISK. See alsoASSET MANAGEMENT, RATE-SENSITIVE LIABILITIES.",palgrave,0,17.34,15.8,18.2,18.39,18.9,13.05,17,18.67
RATE-SENSITIVE LIABILITIES,"LIABILITIES of a FINANCIAL INSTITUTION that are exposed to changes in INTEREST RATES (e.g., DEPOSITS, REPURCHASE AGREEMENTS, BONDS). Measurement of rate-sensitive liabilities is an essential component of GAP MANAGEMENT; by determining sensitivity to changes in interest rates, a financial institution can manage its exposure to DIRECTIONAL RISK, CURVE RISK, and REPRICING RISK. See also ASSET MANAGEMENT, RATE-SENSITIVE ASSETS.",palgrave,0,18.05,15.5,17.9,18.04,18.3,12.22,16.33333333,17.38
RATIO ANALYSIS,"A financial analysis technique used by INVESTMENT ANALYSIS and CREDIT ANALYSTS that uses ACCOUNTING information from a company’s FINANCIAL STATEMENTS to compute relative and abso- lute strength/weakness in key areas such as profitability, activity, liquidity, LEVERAGE, and SOLVENCY.",palgrave,0,-9.4,24,0,19.79,28,14.66,34,27.83
RATIO SWAP,See POWER SWAP.,palgrave,0,93.81,0.9,0,-2.38,0.5,9.05,0.5,1.2
RATIO VERTICAL SPREAD,An OPTION SPREAD that is designed to gener- ate profits from VOLATILITY. Ratio vertical spreads are created through the purchase of a smaller quantity of closer-to-the-money PUT OPTIONS or CALL OPTIONS and the sale of a larger quantity of farther-from-the-money puts or calls. See also BACKSPREAD.,palgrave,0,55.95,9.3,11.9,12.64,12,10.57,9,9.6
RATIO WRITING,"An OPTION position where an option writer sells a com- bination of COVERED OPTIONS and NAKED OPTIONS, in specific quantities or ratios. The RISKS associated with the strategy are lower than they are with a pure naked option strategy, but higher than on a covered option approach.",palgrave,0,47.62,12.5,0,11.15,13.7,10.85,15.25,14.51
RATIONALIZATION,"A process undertaken by a company to reduce its oper- ations in order to improve efficiencies and lower costs. Rationalization may involve the disposal of certain business lines or operating SUBSIDIARIES, the closure of production facilities and/or the dismissal of some amount of employ- ees. See also DOWNSIZING, RIGHTSIZING.",palgrave,0,38.01,12,13.6,14.5,13.5,11.53,11.5,13.87
RAW MATERIAL INVENTORY,"A class of INVENTORY held by a com- pany that includes all materials and resources used in the production ofgoods intended for sale. See also FINISHED GOODS INVENTORY, WORK-IN-PROCESS INVENTORY.",palgrave,0,39.33,11.5,0,12.87,12,10.17,11,11.33
RBA,See RESERVE BANK OF AUSTRALIA.,palgrave,0,83.32,2.9,0,7.28,5.6,10.2,1.5,2
REACQUIRED STOCK,See TREASURY STOCK.,palgrave,0,93.81,0.9,0,5.35,6.8,9.05,0.5,1.2
REAL EXCHANGE RATE,A FOREIGN EXCHANGE RATE that has been cali- brated to take account of INFLATION.,palgrave,0,74.19,6.4,0,9.04,8.1,8.84,7,8.46
REAL INTEREST RATE,"The core level of INTEREST RATES, excluding the effects of INFLATION, typically computed as:=11 + rinfwhere rreal is the real rate, rnom is the nominal rate, and rinf is the inflation rate. See also NOMINAL INTEREST RATE, REAL YIELD.",palgrave,0,43.73,11.9,0,10.97,12.2,10.81,14.25,13.92
REAL MONEY ACCOUNT,See REAL MONEY INVESTOR.,palgrave,0,50.5,7.2,0,5.8,5.3,7.78,1,1.6
REAL OPTION,"The right, but not the obligation, a company has to enter into a new CAPITAL INVESTMENT or to exit an existing capital investment. The general concept is based on the framework developed for financial OPTIONS, though real option decisions tend to be much more complex and opaque. The associated  VALUATION process is used as an alternativeor supplement to more traditional CAPITAL BUDGETING and DISCOUNTED CASH FLOW exercises. In general, real options cannot be traded between par- ties, though some real options can be sold to other parties.",palgrave,0,32.43,14.2,16.2,12.36,14.1,9.62,16.125,15.16
REAL OPTION ANALYSIS,See REAL OPTION VALUATION.,palgrave,0,8.2,13.1,0,8.7,7.7,11.73,2,11.6
REAL OPTION VALUATION,"A framework used to evaluate REAL OPTIONS that attempts to factor in the multiplicity of decisions that exist in a typical INVESTMENT project (e.g., initial investment, expansion, abandonment, deferral of funding, and so forth). In order to take account of these multiple decisions, their associated uncertainties and an array of EXERCISE possibil- ities, the real option valuation framework employs RISK-adjusted probabilities and LATTICE MODELS to generate a quantitative result. Also known as REAL OPTION ANALYSIS.",palgrave,0,12.26,17.8,18.2,16.02,18.9,12.67,19.5,20.13
REAL RETURN BOND,"In Canada, an INFLATION-LINKED SECURITY.",palgrave,0,-1.29,14.7,0,16.56,15,16.52,3.5,18
REAL YIELD,The YIELD on a SECURITY that has been calibrated to take account of INFLATION. Real yield is lower than the computed or nominal yield in an inflationary environment.,palgrave,0,40.35,11.1,0,10.32,8.8,9.41,10.5,15.6
REALIZED GAIN,"Gains on an ASSET (resulting from a positive change in valuation) that have been crystallized for ACCOUNTING purposes on the INCOME STATEMENT. A gain is realized through disposal of the asset. See also REALIZED LOSS, UNREALIZED PROFIT.",palgrave,0,42.07,10.4,13.6,12.11,10.1,9.79,8.5,14.65
REALIZED LOSS,"Losses on an ASSET (resulting from a negative change in valuation) that have been crystallized for ACCOUNTING purposes on the INCOME STATEMENT. A loss is realized through disposal of the asset. See alsoREALIZED GAIN, UNREALIZED LOSS.",palgrave,0,42.38,10.3,13.6,12.75,10.5,9.93,8.333333333,15.91
REALIZED SPREAD,"The difference between the weighted average of the BIDS and OFFERS of executed SECURITIES transactions over a specific period of time. See also EFFECTIVE SPREAD, QUOTED SPREAD.",palgrave,0,32.39,12.1,0,13.68,11.5,10.74,10.75,15.77
REBALANCING,(1) The process of adjusting an INVESTMENT PORTFOLIO by adding or removing certain SECURITIES or ASSETS to reflect a change in the market. (2)The process of adjusting an existing HEDGE after a market move in order to preserve its efficacy in neutralizing RISK.,palgrave,0,19.37,21.2,0,12.2,23.9,12.01,30.5,24.64
REBATE,"(1) A refund, provided by a company to its customers, related to the purchase of specified goods or services (2) A refund provided by an INTERMEDIARY to a client executing a TRADE.",palgrave,0,30.54,17,0,9.06,16.5,11.14,23,19.05
RECEIVABLE,See ACCOUNTS .,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,0.5,0.8
RECEIVER,"A party named by a BANKRUPTCY court to act as AGENT for a bankrupt DEBTOR while maintaining ASSETS for the benefit of CREDITORS. A receiver may be given different levels of operating discretion by the courts, from managing the business of the company in bankruptcy to simply deal- ing with the disposal of property. Also known as ADMINISTRATOR. See alsoRECEIVERSHIP.",palgrave,0,42.72,12.3,15.9,11.84,12.7,10.16,15,16
RECEIVER EXTENDIBLE SWAP,An EXTENDIBLE SWAP that is formed from a combination of a fixed receiver SWAP and a RECEIVER SWAPTION.,palgrave,0,61.67,9.1,0,9.51,9.8,10.67,12,11.64
RECEIVER SWAPTION,A SWAPTION granting the buyer the right to enter into an OVER-THE-COUNTER INTEREST RATE SWAP to receive FIXED RATES and pay FLOATING RATES. The buyer will to EXERCISE the receiver swaption as floating rates fall below a particular STRIKE PRICE. Also known as CALL SWAPTION. See also PAYER SWAPTION.,palgrave,0,58.99,8.1,9.5,10.72,8.7,8.44,6.375,8.19
RECEIVERSHIP,A state where a company has filed for BANKRUPTCY and is being overseen by a RECEIVER until courts decide on LIQUIDATION orREORGANIZATION.,palgrave,0,32.22,14.2,0,13.05,14.4,9.75,16,16.07
RECESSION,"A period of economic contraction within a national ECONOMY as part of the ongoing BUSINESS CYCLE. A recession, which may be defined as two or more consecutive quarters of falling output (as measured through GROSS DOMESTIC PRODUCT), may feature falling INVESTMENT and rising UNEMPLOYMENT. See also DEPRESSION.",palgrave,0,38.62,11.8,14.6,13.92,12.6,11.81,11.83333333,16.49
RECIPROCAL EXCHANGE,"An unincorporated association where INSUREDS amalgamate their RISKS in order to insure one another; existing membersactively attempt to recruit new members to spread risks even more widely. The affairs of the reciprocal exchange, including collection of PREMIUMS, adjustment of losses, and payment of CLAIMS, are often administered by an ATTORNEY-IN-FACT. Also known as RECIPROCAL INSURANCE EXCHANGE.",palgrave,0,18.65,15.3,15.9,17.4,16.9,11.05,14.33333333,16.77
RECIPROCAL RATE,"The inverse of the commonly quoted FOREIGN EXCHANGE RATE for a given CURRENCY pair. While the foreign exchange markets typically quote in terms of currency per US dollar or US dollar per currency, the reciprocal rate denominates the same quote in inverse terms. See also AMERICAN TERMS, EUROPEAN TERMS.",palgrave,0,46.47,10.8,13,11.89,11.1,8.63,11.16666667,11.42
RECIPROCITY,"In general, the exchange between two parties of certain actions or services for receipt of substantial similar actions or services. In BANKING reciprocity is commonly encountered in CAPITAL-raising, DEPOSIT, and UNDERWRITING activities.",palgrave,0,12.94,15.4,0,18.5,16.8,10.84,12.5,15.15
RECOMBINING TREE,See LATTICE MODEL.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
RECONCILIATION,"In ACCOUNTING the process of comparing DEBITS and CREDITS on transactions flowing through a company’s ledgers to ensure proper treatment and balance. Reconciliation may be carried out on a formal basis every week, month, or quarter.",palgrave,0,44.75,11.5,0,13.51,13.3,11.55,11.5,12.76
RECOUPONING,"The process of MARKING-TO-MARKET and settling a PORTFOLIO of DERIVATIVES in order to reduce ACTUAL EXPOSURE between COUNTERPARTIES. A net cash SETTLEMENT is paid to the party holding the contracts with current value and the derivatives are then rewritten, or recou- poned, at current market levels. The process is then repeated at a future settle- ment period.",palgrave,0,43.73,11.9,13.6,12.76,13.2,10.12,12.83333333,12.51
RECOVERY,"The amount received by CREDITORS after BANKRUPTCY pro- ceedings have concluded, typically related to the SENIORITY of the CLAIM",palgrave,0,26.81,14.2,0,15.37,15.1,12.89,15.5,20.23
RECOVERY RATE,"The percentage of an OBLIGATION or CLAIM recovered by a CREDITOR following a defaulted DEBTOR’s BANKRUPTCY proceedings. See also LOSS-GIVEN DEFAULT, RECOVERY.",palgrave,0,26.47,12.3,0,16.63,13.4,12.08,10.5,18.95
RED HERRING,"In the United States, a preliminary REGISTRATION STATEMENT, filed by a company with the SECURITIES AND EXCHANGE COMMISSION, related to a forthcoming NEW ISSUE of SECURITIES. The red herring contains no price or issue size details, and is updated regularly until it becomes the final PROSPECTUS. The document derives its name from the red ink that is used to warn that the circular is not an attempt to sell securities in advance of registration statement approval. Also known as PATHFINDER PROSPECTUS.",palgrave,0,42.41,12.4,13.8,12.3,13.2,9.32,13.625,13.06
RED-LINING,"Refusal by a BANK to provide funds, or an INSURER to supply INSURANCE cover, in particular areas or sectors as a result of previous negative experiences and/or losses. Red-lining that is discriminatory or preju- dicial is illegal in many jurisdictions.",palgrave,0,25.8,14.6,0,12.59,13.7,12.52,14.5,17
REDEEMABLE BOND,See CALLABLE BOND.,palgrave,0,119.19,-2.7,0,3.43,5.2,14.31,0.5,1.2
REDEMPTION,"The process of paying off and extinguishing an issue of SECURITIES as per the terms stated in the OFFERING DOCUMENT or PROSPECTUS, or otherwise reflected on the SCRIP.",palgrave,0,43.06,14.2,0,11.61,16.1,12.36,20,18.34
REDEMPTION DATE,"The date on which an issue of SECURITIES can be paid off by the ISSUER, or the specific MATURITY DATE of the issue.",palgrave,0,56.59,11.1,0,5.98,9.1,8.21,14.5,14.42
REDEMPTION PRICE,"See CALL PRICE, PUT PRICE.",palgrave,0,117.16,-1.9,0,1.48,1.8,0.25,1.5,2
REDEMPTION VALUE,The value or price at which a SECURITY will be redeemed at MATURITY.,palgrave,0,58.28,8.4,0,6.37,5.4,7.93,7.5,11.35
REDISCOUNTING,"The process of discounting a NEGOTIABLE INSTRUMENT a second time, e.g., a BANK first DISCOUNTS a BILL OF EXCHANGE, and a CENTRAL BANK then rediscounts the bank’s discounted bill when presented. Each act of rediscounting implicitly reflects a charge taken for the obligor’sCREDIT RISK.",palgrave,0,49.15,11.9,0,13.58,15.4,10.83,15.5,16.98
REFERENCE CREDIT,See REFERENCE ENTITY.,palgrave,0,9.21,12.7,0,9.23,9.9,14.31,2.5,27.87
REFERENCE ENTITY,The ISSUER to whose DEFAULT a CREDIT DERIVATIVE CONTRACT refers. Default on any of the issuer’s DEBT obligations will triggera payout under the credit derivative contract. Also known as REFERENCE CREDIT. See also REFERENCE OBLIGATION.,palgrave,0,45.62,9.1,10.1,13.42,9.8,9.94,4.875,8.09
REFERENCE INDEX,"An INDEX that is used as the pricing indica- tor in a DERIVATIVE transaction, such as those related to EQUITIES orCOMMODITIES.",palgrave,0,33.24,13.8,0,11.14,12.9,11.45,16.5,19.83
REFERENCE OBLIGATION,The specific DEBT obligation of an ISSUER to whose DEFAULT a CREDIT DERIVATIVE CONTRACT refers. In order to trigger a payout under the credit derivative contract the specific obligation must be in default. See also REFERENCE ENTITY.,palgrave,0,42.07,10.4,12.5,12.11,9.7,9.79,7.833333333,10.33
REFERENCE RATE,"An INTEREST RATE that is used as the pricing indicator in a financing or DERIVATIVE transaction. In most cases the reference rate is a well-established and transparent BENCHMARK, such as LIBOR, EURIBOR, EONIA, PRIME RATE, and so forth.",palgrave,0,52.19,10.7,0,11.72,12.6,10.81,13.5,17.07
REFINANCING,"The process of renewing an existing financing facility, such as a LOAN. Refinancing is common amongst BORROWERS when INTEREST RATES decline and the cost savings of repaying and renewing an existing facility are greater than the fees payable for a new financing. Refinancing may also occur at the original MATURITY of an existing facility as a form of extension or ROLLOVER.",palgrave,0,33.95,13.6,17.1,12.13,12.9,10.08,16.16666667,15.33
REFINANCING RISK,See REPRICING RISK.,palgrave,0,93.81,0.9,0,5.35,6.8,14.31,0.5,1.2
REFLATION,"An act of stimulating an ECONOMY, generally through an increase in MONEY SUPPLY and/or a reduction in TAXES. See also DEFLATION, INFLATION.",palgrave,0,34.93,11.1,0,11.35,9.3,10.64,7.5,15.31
REFUNDING,"A process where the ISSUER of a BOND repays INVESTORS at a predefined REDEMPTION price. Refunding can only occur when a bond issue is CALLABLE, and is generally arranged in a declining INTEREST RATE envir- onment, when a NEW ISSUE of cheaper bonds can be floated to replace the refunded bonds. See also  PROTECTION.",palgrave,0,53.21,10.3,12.5,9.8,10.3,11.25,11.66666667,13.13
REFUNDING PROTECTION,"A clause in an INDENTURE that prohibits an ISSUER from redeeming a BOND for a stated period of time from proceeds of an issue floated at a lower cost and ranking equal, or senior, to the original bond. See also REFUNDING.",palgrave,0,59.13,10.1,0,7.78,9.6,10.82,12.75,13.08
REGIONAL BANK,"In certain countries, a BANK that operates primarily out- side of the main money centers, focusing its activities on one or more states in a single region or on a specific locality. Regional banks are common in coun- tries such as the United States and Japan. See also MONEY CENTER BANK.",palgrave,0,62.68,8.7,11.9,8.58,9,9.43,10.83333333,12.29
REGIONAL EXCHANGE,"In certain countries, an EXCHANGE that serves as an additional exchange in the local marketplace fulfilling a specific func- tion for listing and trading but not holding dominant market shares. Regional exchanges exist for both STOCKS and COMMODITIES.",palgrave,0,43.73,11.9,0,14.79,14.6,12.47,13,14.97
REGISTERED CAPITAL,See AUTHORIZED CAPITAL.,palgrave,0,9.21,12.7,0,13.12,13,9.05,2.5,14.53
REGISTERED OFFICE,The official address of a REGISTERED COMPANY.,palgrave,0,30.53,10.7,0,11.55,8.3,8.5,5.5,14.23
REGISTERED SECURITY,"Any NEW ISSUE of SECURITIES that must adhere to requirements set forth by a national REGULATOR prior to FLOTATION, listing, and TRADING. Registered securities must generally be supported by a detailed REGISTRATION STATEMENT that provides information on the pro- posed issue of securities and the ISSUER. See also BEARER SECURITY, PRIVATE PLACEMENT.",palgrave,0,28.54,13.6,14.6,14.79,14.1,12.09,12.66666667,14.61
REGISTRAR,"A party that is appointed to maintain the registry of SHAREHOLDERS of a given company. BANKS and TRUST companies often ful- fill the role of registrar.EXEMPT SECURITY, PROSPECTUS, RED HERRING.",palgrave,0,47.79,10.3,0,12.46,11.6,11.22,10.5,12.67
REGRESSION,See  ANALYSIS.,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1,20.8
REGRESSION ANALYSIS,"A statistical process that seeks to determine the relationship between a dependent variable (regressand) and one or more independent variables (regressors). Regression may be computed on a linear or nonlinear basis. The general form of the simple linear equation is given as:yi = βo + β1xi + εi , for i = 1 to N data pointswhere y is the dependent variable, x is the independent variable, β is the regres- sion parameter, ε is the residual or error term. Also known as REGRESSION.",palgrave,0,42.92,12.2,14.6,10.56,12.1,11.61,14.5,14
REGRESSIVE TAX,"A TAX scheme which directly or indirectly places a greater burden on lower income households (relative to resources) by reducing the tax rate as the amount subject to taxation increases. Sales taxes and sin taxes (e.g., extra levies on tobacco and alcohol) are considered regressive taxes. See alsoPROGRESSIVE TAX, PROPORTIONAL TAX.",palgrave,0,45.76,11.1,14.6,13.22,13.1,11.6,12.5,15.43
REGULATION,"A series of rules, restriction, controls, and oversight imposed on markets, industry sectors, and/or individual institutions by a government authority in an effort to ensure proper protections within the marketplace and fair treatment of individuals and competitors. See also DE, REGULATOR.",palgrave,0,16.83,16,0,16.82,17.6,13.13,15.75,17.96
REGULATION FAIR DISCLOSURE,"In the United States, a SECURITIES AND EXCHANGE COMMISSION rule that requires a company to issue sensitive information to the public broadly rather than selectively. The rule eliminates the information access privileges often granted to research analysts of BANKS, INVESTMENT BANKS, and SECURITIES FIRMS.",palgrave,0,23.77,15.4,0,16.48,17.5,10.83,17,16.98
REGULATION NMS,"In the United States, Regulation National Market System (NMS) put forth by the SECURITIES AND EXCHANGE COMMISSION, which seeks to consolidate and strengthen the framework for TRADING and EXECUTION on a variety of EXCHANGES and electronic platforms. The key elements of the regulation focus on ORDER protection (via TRADE-THROUGH and PROTECTED BIDS and OFFERS), order access, pricing increments, and market data/information display.",palgrave,0,23.09,17.7,0,16.72,22.2,12.56,22.5,20.79
REGULATION T,"In the United States, a FEDERAL RESERVE BOARD REGULA- TION related to extensions of CREDIT by BROKER/DEALERS and SECURITIES FIRMS to their clients. Regulation T LOANS must be secured by MARGIN com- prised of ELIGIBLE SECURITIES and capped at certain LOAN-TO-VALUE levels; minimum margin levels must be maintained and supplemented as necessary through the MAINTENANCE MARGIN process. See also NONPURPOSE LOAN,PURPOSE LOAN.",palgrave,0,33.54,13.7,16.3,15.37,16.3,12.3,15.66666667,16.02
REGULATOR,"A government body that is responsible for overseeing the activ- ities of particular companies or markets, and for establishing minimum stand- ards of conduct. Certain industries, such as BANKING, may feature multiple regulators, one of which may emerge as the primary regulator. Regulated com- panies operating in multiple countries may also be subject to regulation by each national authority.",palgrave,0,26.1,14.5,17.1,14.79,15.2,11.84,15.83333333,18.73
REGULATORY ARBITRAGE,"The process of taking advantage of internal or external differences in the regulatory treatment of business activities in order to decrease regulatory costs or expand into products or markets nor- mally off limits. See also REGULATORY CONSOLIDATION, REGULATORY HARMONIZATION.",palgrave,0,0.92,18,0,17.35,17,11.49,15.25,16.01
REGULATORY CAPITAL,"CAPITAL resources that financial institutions must allocate to their FINANCIAL RISKS in order to comply with applicable national regulatory requirements. REGULATORS often establish minimum thresholds to ensure SOLVENCY under a range of stress loss scenarios. See also ECONOMIC CAPITAL, RISK-ADJUSTED CAPITAL, TIER 1 CAPITAL, TIER 2 CAPITAL.",palgrave,0,13.24,15.3,17.9,17.86,15.9,12.81,14.5,18.19
REGULATORY COMPLIANCE RISK,"The RISK of loss arising from failure to comply with regulatory rules related to business, TRADING, LENDING, author- ized dealing personnel, reporting, disclosure, or capitalization. A subcategory of OPERATIONAL RISK.",palgrave,0,22.41,13.9,0,16.75,15.6,13.33,11.5,16.67
REGULATORY FORBEARANCE,"A decision by a national REGULATOR or authority not to enforce a specific regulation, generally to avoid destabilizing or aggravating an unstable market or situation.",palgrave,0,-4.67,20.1,0,15.5,17.8,13.09,23.5,27.6
REGULATORY HARMONIZATION,The process of ensuring that rules for business and financial activities are generally similar across countries in order to reduce instances of cross-border REGULATORY ARBITRAGE. See alsoREGULATORY CONSOLIDATION.,palgrave,0,6.5,15.8,0,19.83,16.7,12.79,12,18.46
REHYPOTHECATION,The act of pledging COLLATERAL taken in a lend- ing or SECURITIES FINANCING transaction to secure additional collateralized financing.,palgrave,0,1.43,17.8,0,17.52,16.8,12.06,16.5,20.23
REINSTATEMENT,The reactivation of an INSURANCE CONTRACT that has lapsed due to nonpayment of PREMIUM by the INSURED. In reinstating a con- tract an INSURER reserves the right to charge a higher PREMIUM or modify coverage terms.,palgrave,0,44.75,11.5,0,10.61,10.8,11.55,13.5,16.09
REINSURANCE,"A RISK TRANSFER from an INSURER to a REINSURER that provides an insurer with cover for specified INSURANCE exposures. The agree- ment may be arranged as FACULTATIVE  (i.e., customized, one- off) or TREATY  (i.e., standardized, multiple exposure).",palgrave,0,35.78,12.9,0,12.82,14.3,11.81,14.75,18.21
REINSURANCE BROKER,A BROKER representing the CEDING INSURER in placing business with a REINSURER.,palgrave,0,33.92,11.5,0,13.73,10.9,12.13,8,14.8
REINSURANCE CAPACITY,(1) The amount of REINSURANCE available to INSURERS from the reinsurance market at large or from an individual REINSURER. (2) The amount of PREMIUM that an individual reinsurer is able to write for specific types of RISKS.,palgrave,0,33.92,17.7,0,11.5,20.8,10.17,27.5,21.29
REINSURANCE CREDIT,"A CREDIT balance on a CEDING INSURER’s BALANCE SHEET that reflects PREMIUMS CEDED to, and losses recoverablefrom, REINSURERS. The credit balance, which is a reflection of RISK TRANSFER, permits an insurer to write additional primary INSURANCE coverage forINSUREDS.",palgrave,0,26.81,14.2,0,16.48,16.2,12.89,14.5,18.13
REINSURANCE POOL,"A group of REINSURERS that agrees to UNDERWRITE RISKS on a joint basis; under a typical POOL each member agrees to pay a fixed percentage of any loss, or a percentage of any loss above a defined RETENTION level. Also known as REINSURANCE FACILITY.",palgrave,0,57.61,10.7,0,9.11,11.4,9.39,15,15.16
REINSURANCE SIDECAR,"A form of REINSURANCE developed in response to the need for additional UNDERWRITING CAPACITY in the face of specific catastrophes. The sidecar functions in a manner similar to traditional QUOTA SHARE, except that its CAPITAL is raised privately, it supports a single CEDANT, and has a finite life (generally less than 2 years).",palgrave,0,36.12,14.8,0,12.36,16.3,11.51,19.25,18.9
REINSURED,An INSURER that CEDES a particular RISK to a REINSURER through a REINSURANCE agreement.,palgrave,0,48.81,9.9,0,12.35,10.5,12.23,11,17.03
REINSURER,An INSURER that provides REINSURANCE coverage to other insurers through FACULTATIVE REINSURANCE or TREATY REINSURANCE agreements.,palgrave,0,12.94,15.4,0,23.37,20.2,12.33,15,18.9
REINVESTMENT RATE,The INTEREST RATE at which CAPITAL can be reinvested as it is earned and once existing INVESTMENTS mature. See alsoREPRICING RISK.,palgrave,0,60.82,7.4,0,11.05,8.5,10.17,7.25,13.72
REINVESTMENT RISK,See REPRICING RISK.,palgrave,0,93.81,0.9,0,5.35,6.8,14.31,0.5,1.2
RELATED PARTY,"Any party (individual or corporate) that is in some way associated with a second party. In a corporate context this relates to the rela- tionship between HOLDING COMPANIES, PARENT companies, SUBSIDIARIES, AFFILIATES, and/or JOINT VENTURES.",palgrave,0,28.33,13.7,0,14.73,14.9,10.37,12.25,12.71
RELATED-PARTY TRANSACTION,"A financial transaction conducted between a company and a related entity, such as a PARENT, HOLDING COMPANY, SUBSIDIARY, AFFILIATE, JOINT VENTURE, or SPECIAL PURPOSE ENTITY. Common related-party transactions include paying or receiving DIVIDENDS, accepting or granting LOANS, HEDGING RISKS, and transfer- ring CAPITAL.",palgrave,0,7.35,17.6,0,18.22,19.6,13.52,18.25,17.9
RELATIONSHIP MODEL,"A general corporate system that is characterized by concentrated ownership stakes and cross-SHAREHOLDINGS, LIQUIDCAPITAL MARKETS, and a relatively inactive CORPORATE CONTROL MARKET; formal legal dealings are often supplemented by informal negoti- ation arising from long-term business relationships. Germany and Japan are representative examples of the relationship model. See also HYBRID MODEL, MARKET MODEL.",palgrave,0,11.21,16.1,16.3,20.41,19.2,12.86,14.16666667,17.65
RELATIVE VALUE ARBITRAGE,"A general ARBITRAGE strategy where an INVESTOR or HEDGE FUND manager can establish arbitrage positions in any one of several different, and often unrelated, ASSET classes. As with other arbi- trage strategies, the fundamental goal is to identify price discrepancies which can be converted into profits and to monetize them through a combination of unleveraged or LEVERAGED LONG and SHORT positions.",palgrave,0,23.6,17.5,0,14.86,19.9,10.84,24.25,20.07
RELIEF RALLY,A RALLY in the broader market that comes after a significant sell-off or BEARISH phase. The rally may be short-lived if fundamental and technical factors have not actually changed.,palgrave,0,48.3,10.1,0,11.71,10.5,10.89,8.25,11.32
REMIC,See REAL ESTATE MORTGAGE INVESTMENT CONDUIT.,palgrave,0,31.55,10.4,0,15.88,12.2,14.46,3,9.07
REMITTING BANK,See COLLECTING BANK.,palgrave,0,59.97,5.6,0,7.32,8.3,9.05,1.5,14.53
RENT,A periodic payment made by a renting party to a property owner for the use of residential or commercial property.,palgrave,0,34.26,13.5,0,9.69,10.7,8.58,15,16
RENT-A-CAPTIVE,"A licensed INSURER or REINSURER that makes an account available to a firm that wishes to SELF-INSURE but does not want to administer its own CAPTIVE program. A rent-a-captive prevents account commingling by segregating ASSETS, LIABILITIES, and RISK exposures into individual accounts that are separated through a SHAREHOLDER’S agreement. See also AGENCYCAPTIVE, CAPTIVE, GROUP CAPTIVE, PROTECTED CELL COMPANY, PURE CAPTIVE, SENIOR CAPTIVE, SISTER CAPTIVE.",palgrave,0,24.48,15.1,15.9,17,18.1,11.11,15.66666667,16.02
RENT RIGHT,"The financial benefit granted to an INVESTOR throughaSHARE of COMMON STOCK, comprised of a PRO-RATA share of the dis- counted future CASH FLOWS of the company (which manifests itself via share price appreciation) and any periodic DIVIDENDS that might be paid. See alsoCONTROL RIGHT.",palgrave,0,40.69,13.1,0,13.29,15.1,11.55,15.5,15.16
RENTES,"[FR] In France, a PERPETUAL BOND issued by the government which pays a FIXED RATE of INTEREST.",palgrave,0,62.68,8.7,0,7.65,8.7,11.91,11.5,11.51
REOPENING,A SECONDARY OFFERING of a new TRANCHE of SECURITIES under an existing issue with a defined COUPON and MATURITY. Frequent ISSUERS often use reopenings in order to concentrate LIQUIDITY in a smaller number of issues and establish more robust BENCHMARKS.,palgrave,0,34.26,13.5,0,13.17,13.5,12.13,14,16
REPACKAGING,The process of converting an existing SECURITY into an alternate form through the use of DERIVATIVES or other financial instruments. The intent is to create a new ASSET or LIABILITY with a different PAYOFF or funding profile.,palgrave,0,35.78,12.9,0,12.01,11.9,10.96,13.75,16.05
REPATRIATION,The return of an individual or CAPITAL from an overseas locale back to a home country.,palgrave,0,55.24,9.5,0,7.83,7.5,7.39,9,8.9
REPLACEMENT COST,"(1) In ACCOUNTING, the amount required to replace an ASSET based on its BOOK VALUE, accumulated DEPRECIATION, and obsoles- cence. In some cases replacement cost requires subjective input and judgment, particularly if the asset has become obsolete. (2) See ACTUAL EXPOSURE.",palgrave,0,25.29,14.8,0,13.87,15.5,12.74,14.75,16.98
REPLICATION,"The process of duplicating an INDEX, HEDGE, or INVEST- MENT strategy through physical ASSETS or DERIVATIVE CONTRACTS.",palgrave,0,37.3,12.3,0,15.54,15,14.7,12.5,16.21
REPO,See REPURCHASE AGREEMENT.,palgrave,0,34.59,9.2,0,16.95,16.2,14.31,1.5,14.53
REPO RATE,"The INTEREST RATE a BORROWER pays a LENDER in a REPURCHASE AGREEMENT transaction. The repo rate, which is set accordingto the specific terms of the transaction (including MATURITY and underlying COLLATERAL), is generally lower than equivalent unsecured CREDIT from a BANK since the exposure is secured by collateral.",palgrave,0,21.74,16.2,0,14.8,16.9,12.06,20,21.27
REPRICING RISK,"The RISK that a maturing ASSET or LIABILITY will be rein- vested or refinanced at a less favorable rate. Assets that reprice in a lower-rate environment and liabilities that reprice in a higher-rate environment create an opportunity cost or loss. Also known as REFINANCING RISK, REINVESTMENT RISK. See also NEGATIVE GAP, POSITIVE GAP, RATE-SENSITIVE ASSETS, RATE-SENSITIVE LIABILITIES.",palgrave,0,31.58,12.4,14.9,14.26,12.9,10.44,11.375,14.14
REPUDIATION,"The act of abrogating, or refusing to perform legal require- ments under, a CONTRACT.",palgrave,0,48.81,9.9,0,10.32,9.8,12.23,8,11.31
REPUTATIONAL RISK,"The RISK a company faces in negative publicity or damage to its public image, resulting in a negative impact on its ability to con- duct business. Reputational risk is often classified as a form of OPERATIONAL RISK.",palgrave,0,35.78,12.9,0,10.15,10.6,10.1,13.75,14.97
REQUEST FOR PROPOSAL (RFP),An invitation given by a company to sup- pliers of goods/services to submit a bid for the provision of such goods/services based on specific parameters specified by the company.,palgrave,0,33.58,15.8,0,12.31,17.3,10.52,21.5,18.5
RESALE,See REVERSE REPURCHASE AGREEMENT.,palgrave,0,33.58,9.6,0,18.85,15.9,15.68,2,11.6
RESCHEDULING,"Negotiation between a CREDITOR and a DEBTOR on an existing LOAN with new terms and conditions, including those that may be more favorable to the debtor, in order to avoid any instance of nonaccrual or FORECLOSURE. Also known as DEBT RESTRUCTURING. See also DEBT FORGIVENESS, RENEGOTIATED LOAN, RESTRUCTURING.",palgrave,0,46.78,10.7,14.6,13.11,12.2,9.69,12,15.57
RESCISSION,"The cancellation of a CONTRACT by mutual agreement or court order, which returns the parties to their positions prior to the commencement of the contract.",palgrave,0,46.1,13,0,12.71,15.6,10.56,16.5,16.4
RESERVE ASSETS,(1) Any ASSETS that are available to a country for finan- cing BALANCE OF PAYMENTS imbalances and for intervening in the FOREIGN EXCHANGE markets. (2) Funds held by a BANK with a CENTRAL BANK.,palgrave,0,53.89,14.2,0,9.24,17.6,11.82,19,15.95
RESERVE CURRENCY,"A CURRENCY featuring full CURRENCY CONVERTIBILITY on the CURRENT ACCOUNT and CAPITAL ACCOUNT, and which is widely used in international TRADE, finance, and FOREIGN EXCHANGE transactions. Reserve currencies are typically associated with national economies that have strong industrial bases and low INFLATION rates. Dollars, EURO, sterling, and yen are examples of reserve currencies. Also known as HARD CURRENCY. See also CONVERTIBLE CURRENCY, EXOTIC CURRENCY.",palgrave,0,24.64,13,14.6,16.63,14.1,10.69,10.4,13.87
RESERVE ORDER,"An ORDER on an EXCHANGE that is only partially visible in the exchange’s order book – the balance remains hidden, and is only fed into the order book as executions take place. Reserve orders are a form of DARK LIQUIDITY. Also known as ICEBERG. See also HIDDEN ORDER.",palgrave,0,59.3,8,8.8,7.7,6,7.52,6,8.13
RESERVE REQUIREMENTS,"A minimum percentage of total ASSETS that FINANCIAL INSTITUTIONS must hold in highly LIQUID form to ensure suffi- cient ability to meet DEPOSITS or other demand LIABILITIES as they mature or are presented for repayment. In addition to reinforcing LIQUIDITY, CENTRAL BANKS and monetary authorities often use reserve requirements as a tool ofMONETARY POLICY.systems ACCOUNTING rules control the establishment and release of reserves so that firms cannot use them to manipulate their EARNINGS.",palgrave,0,9.05,21.1,0,16.14,23.8,13.88,27.75,25.01
RESET OPTION,See PARTIAL LOOKBACK OPTION.,palgrave,0,50.5,7.2,0,11.6,10,15.68,1,1.6
RESIDUAL,See  SECURITY.,palgrave,0,-49,20.6,0,1.3,7.8,11.63,1,20.8
RESIDUAL INCOME,"(1) INCOME earned from intellectual property, such as royalties. (2) Income earned over and above some RISK-FREE RATE or min- imum HURDLE RATE.",palgrave,0,56.59,11.1,0,11.26,14.8,11.64,14.5,14.42
RESIDUAL RIGHT,"Discretionary powers and authorities delegated by DIRECTORS to EXECUTIVE MANAGEMENT, allowing executives to act as AGENTS and make decisions related to the daily management of the firm, including financing plans, ACQUISITIONS, INVESTMENTS, production and marketing, and employee matters.",palgrave,0,-17.86,25.2,0,20.37,28.6,14.66,37,33.09
RESIDUAL RISK,See BASIS RISK.,palgrave,0,93.81,0.9,0,-2.38,0.5,14.31,0.5,1.2
RESIDUAL VALUE,"The anticipated value of an ASSET at the conclusion of a LEASE; value may be determined by prior agreement or through an inde- pendent appraisal at the conclusion of a LEASE or at the end of the asset’s useful life. Also known as DISPOSAL VALUE. See also NET ,  GUARANTEE,  SECURITIZATION, SALVAGE VALUE.",palgrave,0,45.46,11.2,11.9,9.39,9.9,9.05,11.16666667,11.54
RESIDUAL VALUE GUARANTEE,A contingent FINANCIAL GUARANTEE that provides a company with a CAPITAL infusion if it experiences a shortfall in the RESIDUAL VALUE of ASSETS that have been LEASED. See also RESIDUAL VALUE SECURITIZATION.,palgrave,0,29.86,13.1,0,13.63,12.2,9.86,13,15.15
RESIDUAL VARIANCE,"ASSET RETURNS that deviate from the SECURITY MARKET LINE or a SECURITY/PORTFOLIO relationship. Residual variance can be computed via:εj,t = rj,t – (A + βj (rm,t))where rj,t is the return on security j at time t, rm,t is the return on the market portfolio at time t, βj is the BETA of security j, and A is the intercept of the security market line or security/portfolio relationship. See also ARBITRAGE PRICING THEORY, CAPITAL ASSET PRICING MODEL, CAPITAL MARKET LINE.",palgrave,0,20.01,16.9,16.7,10.68,15.2,9.63,18.83333333,14.96
RESISTANCE LEVEL,"A TECHNICAL ANALYSIS charting figure of a SECURITY or INDEX price level that withstands repeated bouts of buying pres- sure. If the price manages to breach the resistance level after several repeated attempts, further upward moves may follow (as in a BREAKOUT).See also SUPPORT LEVEL.",palgrave,0,40.18,13.2,0,13.06,14.9,10.72,15.25,13.44
RESOLUTION,"A motion that is adopted by a specific body, such as a group of SHAREHOLDERS during the ANNUAL GENERAL MEETING of a company, typically through a majority vote in the affirmative. Once approved, it becomes part of the governing operations of a company.",palgrave,0,41.19,12.9,0,10.21,12.2,9.11,16.25,16.04
RESTITUTION,"(1) Compensation that is paid to a party that has sustained loss or injury by one who is responsible for causing the loss or injury, exclud- ing noneconomic damages. (2) A refund of MONEY or property that belongs rightfully to another.",palgrave,0,29.86,19.3,0,10.06,21.5,11.45,26.5,21.28
RESTORATION PREMIUM,The PREMIUM paid by an INSURED to an INSURER to restore an INSURANCE POLICY to its previous limits after a loss has occurred and a SETTLEMENT has been received.,palgrave,0,42.04,14.6,0,9.53,14.5,10.52,20.5,18.5
RESTRICTED STOCK,"SHARES of a company’s COMMON STOCK granted to executives and employees as a form of compensation, and which generally vest over a multiyear period; awards may also be granted in the form of CALLOPTIONS. Restricted stock grants result in the creation of new shares and are thus dilutive.",palgrave,0,47.12,12.7,0,11.44,14,11.08,17,17.93
RESTRICTIVE ENDORSEMENT,An ENDORSEMENT on a BILL OF EXCHANGE that limits the ability of the bill to be further negotiated or transferred.,palgrave,0,51.18,11.1,0,9.69,10.7,8.58,13,14
RESTRUCTURING,"The process of adjusting the LIABILITIES of a company in order to reduce the possibility of further FINANCIAL DISTRESS and/or to avoid BANKRUPTCY. A restructuring, which may involve a WAIVER, defer- ral, RESCHEDULING, STANDSTILL AGREEMENT, or exchange of liabilities, generally leaves CREDITORS with less value and/or more CREDIT RISK, and the company with a more manageable DEBT burden. Also known as DEBT . See also DEBT FORGIVENESS.",palgrave,0,37.81,12.1,13.4,13.63,13.1,10.68,11.625,12.66
RETAIL BANKING,"An element of BANKING focused on providing ser- vices to individual customers, primarily through CHECKING ACCOUNTS, DEPOSITS, SAVINGS ACCOUNTS, consumer LOANS, CREDIT CARDS, andMORTGAGES.",palgrave,0,13.28,17.4,0,20.72,22.7,16.01,17,17.93
RETAIL INVESTOR,"An individual INVESTOR that generally transacts in relatively small amounts, and in simple (though not riskless) financial prod- ucts. See also INSTITUTIONAL INVESTOR.",palgrave,0,25.96,12.5,0,16.57,14,11.76,7.25,13.3
RETAINED EARNINGS,"The portion of a company’s EQUITY CAPITAL account comprised of net EARNINGS generated and kept within the business, after all DIVIDENDS have been paid to COMMON STOCK and PREFERRED STOCK INVESTORS. See also RETAINED PROFITS. Also known as EARNED SURPLUS, EARNINGS RETAINED, UNDISTRIBUTED EARNINGS. See alsoPAID-IN CAPITAL.",palgrave,0,51.04,9.1,10.7,14.6,12.1,9.93,6.625,8.98
RETAINED PROFITS,"In the United Kingdom, RETAINED EARNINGS.",palgrave,0,56.93,6.8,0,12.05,9.8,9.2,2,2.4
RETENTION,"(1) Any RISK preserved, knowingly or unknowingly, by an indi- vidual or an institution. Unknowing retention might arise from misunderstand- ing the nature of an exposure, while knowing retention is generally the result of a conscious decision to keep a particular amount of exposure for financial or",palgrave,0,30.7,14.8,0,13.23,15.7,11.86,18.75,19.61
RETROCEDANT,A REINSURER that CEDES RISK to another REINSURER through a RETROCESSION CONTRACT.,palgrave,0,42.38,10.3,0,15.18,12,10.81,9,11.47
RETROCEDE,"The process of transferring RISK from one REINSURER to another reinsurer through a RETROCESSION CONTRACT.. See also CEDE,RETROCEDANT, RETROCESSIONAIRE.",palgrave,0,36.45,10.5,0,20.04,16.3,11.59,7.25,12.22
RETROCESSION,"A form of REINSURANCE CONTRACT that allows a REINSURER to transfer designated RISKS to another reinsurer in order to manage and diversify its PORTFOLIO of REINSURANCE exposures. See alsoRETROCEDANT, RETROCESSIONAIRE.",palgrave,0,22.41,13.9,0,17.68,15.4,11.22,13,16.67
RETROCESSIONAIRE,"A REINSURER accepting RISK from another REIN- SURER through a RETROCESSION CONTRACT. See also RETROCEDANT.LOSS PORTFOLIO TRANSFER, RETROSPECTIVE FINITE POLICY.",palgrave,0,19.03,13.1,0,20.39,16.5,14.4,8,16
RETROSPECTIVE RATING,"In INSURANCE, the process of adjust- ing PREMIUM rates to reflect actual current year losses. The retrospective approach is based on an initial premium plus an adjustment as loss experience is crystallized.",palgrave,0,38.32,11.9,0,13.4,12.3,13.31,12,15.15
RETROSPECTIVE SCRUTINY,"A legal review by REGULATORS and other external parties of a bankrupt company’s history of financial deterioration, with a focus on the actions of the BOARD OF DIRECTORS during the period leading up to FINANCIAL DISTRESS.(i.e., a retrospective premium) or receive a refund (i.e., a retrospective refund), depending on the size of any losses that occur.",palgrave,0,-2.29,27.5,0,12.9,31.5,12.34,41,29.54
RETURN,"The economic value generated by an INVESTMENT, generally expressed as a percentage of the amount of the original investment. Return may be generated through DIVIDENDS, COUPONS, and/or CAPITAL GAINS. Also known as RATE OF . See also DIVIDEND YIELD, EXPECTED ,  ON ASSETS,  ON EQUITY, YIELD.",palgrave,0,34.93,11.1,13.4,11.87,10,9.57,8,13.49
RETURN ON ASSETS (ROA),"A measure of the RETURN a firm generates from the average ASSETS it holds during a reporting period. ROA can be com- puted via:where NIn is net income in period n, and ATAn is average total assets during period n.The higher the ratio, the greater the profitability of the assets.",palgrave,0,46.1,13,0,8.88,12.7,10.88,16.5,14
RETURN ON EQUITY (ROE),"A measure of the RETURN a firm generates for SHAREHOLDERS that have supplied CAPITAL. ROE, which is not adjusted for the effects of FINANCIAL RISK or OPERATING RISK, can be computed in dif- ferent forms, including:where NIn is NET INCOME in period n, Eqn is EQUITY in period n, EPSn is EARNINGS PER SHARE in period n, and BVEqPSn is BOOK VALUE equity per share in period n.The higher the ratio, the greater the profitability on invested equity. See alsoRISK-ADJUSTED RETURN ON CAPITAL.",palgrave,0,34.9,15.3,17.9,10.22,15.3,10.72,20.5,16.86
RETURN ON INVESTMENT (ROI),"A measure of the operating RETURN a firm generates from a core base of CAPITAL resources, computed as:where EBIT is EARNINGS BEFORE INTEREST AND TAXES, and TC is total cap- ital, or the sum of COMMON STOCK, PREFERRED STOCK, and LONG-TERM DEBT.The higher the ratio, the greater the operating profitability on capital resources.",palgrave,0,17.68,24,0,12.38,29.4,12.22,34.5,24.97
RETURN PERIOD,"In INSURANCE, the average time within which an event of a particular magnitude is reached/exceeded. The return period, which is inversely proportional to frequency of occurrence, is commonly used in ana- lyzing CATASTROPHIC HAZARDS; the lower the frequency of occurrence, the longer the return period.",palgrave,0,23.26,15.6,0,14.97,16.7,11.77,18.75,19.67
RETURNED CHECK,A CHECK that is returned by a PAYEE to the BANK on which its drawn as a result of insufficient funds in the DRAWER’s CHECKING ACCOUNT. A returned check is generally subject to a BANK CHARGE.,palgrave,0,70.13,8,0,7.07,7.9,8.48,9,9.42
REVALORIZATION,"Replacement of a CURRENCY with a new one, typically as an attempt to signal a new start for a national ECONOMY and financial sys- tem that has been impacted by high INFLATION and a weak currency.",palgrave,0,34.94,17.3,0,8.6,17.5,10.69,27,23.29
REVALUATION,The process of reassessing the value of an ASSET or LIABILITY to reflect a current value. Adjustments are carried through a revaluation RESERVE account.,palgrave,0,42.38,10.3,0,12.51,9.9,10.81,7,11.47
REVENUE,"The amount of MONEY received by a company for selling its goods or services, taking account of any merchandise returned or other mon- ies refunded. The simplified revenue computation multiplies units sold by the price per unit. Also known as GROSS . See also COST OF GOODS SOLD.",palgrave,0,67.96,6.7,10.1,9.32,7.6,9.6,6.5,8.98
"REVENUE AND CUSTOMS, HM","In the United Kingdom, the consolidated government authority formed in 2005 from the previously separate Inland Revenue and HM Customs and Excise authorities, now responsible for dir- ect TAX collection, VALUE-ADDED TAX collection, and customs and excise DUTIES collection.GENERAL OBLIGATION BOND.",palgrave,0,-3.99,24,0,18.81,28.6,12.99,31.5,23.23
REVERSAL,A TECHNICAL ANALYSIS charting pattern that depicts a pro- longed change in the upward or downward direction of a SECURITY orINDEX.,palgrave,0,41.7,12.7,0,12.53,13.8,12.2,14.5,14.11
REVERSE,See  REPURCHASE AGREEMENT.,palgrave,0,9.21,12.7,0,16.95,16.2,14.31,1.5,14.53
REVERSE CONVERTIBLE BOND,"A BOND that can be exchanged into COMMON STOCK at the OPTION of the ISSUER rather than the INVESTOR. The issuing company might choose to convert if it is attempting to decrease its LEVERAGE and improve its overall CREDITWORTHINESS. See alsoCONVERTIBLE BOND, MANDATORY CONVERTIBLE BOND.",palgrave,0,56.25,9.1,11.9,12.69,11.3,9.99,8.833333333,11.33
REVERSE DUTCH AUCTION,"An AUCTION which features one buyer and many sellers, and where the price rises from a low BID until a party agrees to sell at the stated price.",palgrave,0,68.44,10.7,0,6.85,12.3,8.97,14,11.2
REVERSE FLOATER SWAP,See INVERSE FLOATER SWAP.,palgrave,0,92.8,1.3,0,7.25,6.5,15.68,1,1.6
REVERSE FLOATING RATE NOTE,See INVERSE FLOATING RATE NOTE.,palgrave,0,83.32,2.9,0,8.44,6.5,10.2,1.5,2
REVERSE HEAD AND SHOULDERS,"A TECHNICAL ANALYSIS chart- ing formation of a SECURITY or INDEX that features a supporting priceplateau, followed by a dip, and a reversal to a second supporting price plateau; the formation of a reverse head and shoulders might then lead to a BREAKOUT on the upside or downside.See also HEAD AND SHOULDERS.INDEX PRINCIPAL SWAP, VARIABLE PRINCIPAL SWAP.",palgrave,0,5.16,26.7,0,13.13,31.7,11.73,41.5,28.41
REVERSE KNOCK-IN OPTION,"A BARRIER OPTION that creates an under- lying IN-THE-MONEY option once the BARRIER is breached, i.e., the barrier is above the STRIKE PRICE in the case of a reverse knock-in CALL, and below the strike in the case of the reverse knock-in PUT. Also known as KICK-IN OPTION. See also REVERSE KNOCK-OUT OPTION.",palgrave,0,70.43,7.8,8.8,8.58,10,6.6,8.833333333,7.83
REVERSE KNOCK-OUT OPTION,"A BARRIER OPTION that extinguishes an underlying IN-THE-MONEY option once the BARRIER is breached, i.e., the barrier is above the STRIKE PRICE in the case of a reverse knock-out CALL, and below the strike in the case of the reverse knock-out PUT. Also known as KICK- OUT OPTION. See also REVERSE KNOCK-IN OPTION.",palgrave,0,61.97,9,10.5,9.34,10.5,6.9,10.5,9.34
REVERSE LEVERAGED BUYOUT (LBO),A transaction where a company that has been taken private through a LEVERAGED BUYOUT (LBO) is floated pub- licly through an INITIAL PUBLIC OFFERING. A reverse LBO generally occurs after the company has been streamlined and operating efficiencies have been created by the LBO management group.,palgrave,0,39.67,13.4,0,13.52,15.4,10.96,16,15.29
REVERSE MERGER,See REVERSE TAKEOVER.,palgrave,0,93.81,0.9,0,9.23,9.9,14.31,0.5,1.2
REVERSE MORTGAGE,"A MORTGAGE where the BORROWER receives pay- ments (monthly, lump sum, or as a CREDIT LINE) from the LENDER based on accumulated EQUITY in the property. The reverse mortgage comes due if the property is sold, required payments are not made, or the property deteriorates as a result of lack of care. In general, the transaction terminates when the last surviving borrower dies or sells the home.",palgrave,0,48.84,12,14.6,10.39,12.7,9.93,15.16666667,13.7
REVERSE REPO,See REVERSE REPURCHASE AGREEMENT.,palgrave,0,33.58,9.6,0,18.85,15.9,15.68,2,11.6
REVERSE TAKEOVER,"The ACQUISITION by a smaller company of a lar- ger company, or the acquisition of PUBLIC COMPANY (generally a SHELL COMPANY) by a PRIVATE COMPANY in order to gain a STOCK EXCHANGE listing. Also known as REVERSE MERGER.",palgrave,0,43.73,11.9,0,9.46,10.5,8.32,13.5,9.71
REVERSE TO MATURITY,A REVERSE REPURCHASE AGREEMENT with a MATURITY equal to the maturity of the underlying ASSET being lent; a reverse to maturity often involves collateralization of high COUPON SECURITIES that the holder does not want to sell.,palgrave,0,18.02,19.7,0,13.41,21.3,10.25,25,19.96
REVERSE TYING,"A practice where a BANK or INVESTMENT BANK agrees to purchase goods or services from a company in exchange for the company’s agreement to award it with lucrative fee-based NEW ISSUE or CORPORATE FINANCE MANDATES. In some jurisdictions the practice is illegal, as it constitutes a violation of fair trading practices. See also TYING.",palgrave,0,53.21,10.3,13,11.83,11.9,10.96,12,13.13
REVOLVER,See REVOLVING CREDIT FACILITY.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,3,21.6
REVOLVING BANK FACILITY,See REVOLVING CREDIT FACILITY.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,3,21.6
RFP,See REQUEST FOR PROPOSAL.,palgrave,0,50.5,7.2,0,7.25,6.5,11.73,2,11.6
RHO,"A measure of the change in the value of an OPTION for a change in the RISK-FREE RATE, with all other variables held constant. The rhos of the CALL OPTION and PUT OPTION under the BLACK-SCHOLES MODEL are given by:)= tXe−rf t N( −d)where+−σ22σ tS is the stock price, X is the STRIKE PRICE, t is the time to MATURITY, rf is the risk-free rate, σ2 is the VARIANCE, and where the N value of N(d2) can be obtained from a standard table of PROBABILITY functions.The rhos of LONG and SHORT puts and calls are shown as:See also DELTA, GAMMA, GREEKS, VEGA, THETA.",palgrave,0,44.58,19.8,0,7.62,24.9,11.25,26.5,21.38
RIBA,"INTEREST payable or receivable on a CONTRACT, which is pro- hibited under the rules of ISLAMIC FINANCE. See also GHARAR.",palgrave,0,52.87,8.4,0,9.37,7.4,12.03,6,12
RICH,"An ASSET that is perceived by market participants to be expen- sive compared with alternatives (i.e., the SPREAD is too narrow in the case of a risky BOND or the price too high in the case of a COMMON STOCK, CURRENCY, or COMMODITY). Those believing the asset is rich will seek to profit by selling it, either directly or through an ARBITRAGE transaction. See also CHEAP.",palgrave,0,57.61,10.7,12.5,8.47,11.3,9.27,13.66666667,13.65
RIDER,An ENDORSEMENT to an INSURANCE POLICY that modifies the provisions of coverage. The terms contained in the rider supersede those con- tained in the original policy.,palgrave,0,41.36,10.7,0,12.17,10.3,11.57,11,17.51
RIDING THE CURVE,See ROLLING DOWN THE CURVE.,palgrave,0,117.16,-1.9,0,3.8,2.7,7.04,1.5,2
RIGHT OF SUBSTITUTION,The legal ability for a BORROWER and/or LENDER to replace COLLATERAL securing a financial transaction with other ASSETS that feature at least the same minimum value and marketability.,palgrave,0,17.68,17.8,0,14.92,18.8,12.36,22,22.63
RIGHTS OFFERING,See RIGHTS ISSUE.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
RIGHTSIZING,"The process of restructuring corporate operations, typ- ically through employee redundancies, ASSET sales, and/or discontinuation of certain products, services, or business divisions.",palgrave,0,-1.63,19,0,23.32,24.2,14.78,18,21.53
RING-FENCING,The process of legally or structurally isolating a portion of a company’s ASSETS or business operations into a separate SUBSIDIARY or man- agement unit in order to allow it to file for BANKRUPTCY or to be sold or wound down.,palgrave,0,30.88,18.9,0,9.88,20.4,10.36,26,21
RING TRADING,"A TRADING mechanism used on EXCHANGES that still feature physical, rather than electronic, trading, where BROKERS, DEALERS, and/or MARKET MAKERS assemble at appointed times in a “ring” to make a market in a particular ASSET. Also known as CALLOVER. See also OPEN OUTCRY.",palgrave,0,56.96,8.9,11.2,11.65,10.7,10.22,8.166666667,11.3
RIO TRADE,"A large TRADE executed in an attempt to reverse losses on existing positions; thus named because if the strategy fails the trader may be tempted to flee, e.g. take the next plane to Rio.",palgrave,0,53.89,14.2,0,8.54,16.8,12.75,21,18.31
RISING BOTTOM,"A TECHNICAL ANALYSIS charting figure of a SECURITY or INDEX depicting rising prices and an increasing support level; a rising bot- tom is generally considered to be a BULLISH signal.See also ASCENDING TOP, DESCENDING BOTTOM, FALLING TOP.",palgrave,0,17,20.1,0,13.88,22.6,13.15,27.5,24.53
RISK,"Uncertainty or unpredictability associated with a future outcome or event. From a corporate and financial perspective, risk can be broadly divided into SPECULATIVE  and PURE , and may also be classed as FINANCIAL  and OPERATING .",palgrave,0,11.92,15.8,0,14.5,13.7,11.45,14,17.39
RISK-ADJUSTED ASSETS,See RISK-WEIGHTED ASSETS.where NIn is NET INCOME in period n and RAEqn is the RISK-ADJUSTED CAPITAL allocated in support of the INCOME-producing business in period n. An alternative computation adjusts the returns for riskiness and leaves capital unadjusted.,palgrave,0,26.81,14.2,0,15.55,15.5,12.06,15,16.02
RISK AVERSION,"A characteristic of an individual or institution that prefers less, rather than more, RISK, and is willing to pay a price or accept a lower RETURN for protection/mitigation (through, for example, INSURANCE, DERIVATIVES, or other methods of RISK TRANSFER or HEDGING). See alsoRISK NEUTRALITY, RISK SEEKING.",palgrave,0,31.21,14.6,0,14.16,16.7,10.61,15.5,17.03
RISK BUDGETING,"A process of allocating RISK CAPITAL within an INVESTMENT PORTFOLIO, typically based on principles related to MODERN PORTFOLIO THEORY. Risk budgeting, through use of marginal and cumula- tive risk and RETURN measures, as well as tools such as MEAN VARIANCE OPTIMIZATION, seeks to balance the potential for losses with the possibility of generating returns within the PORTFOLIO CONSTRUCTION framework.",palgrave,0,16.15,18.3,0,16.26,20.6,12.86,23.75,21.97
RISK CAPACITY,"The ability for an institution to accept the transfer of RISK from another party. Risk capacity is generally based on an institution’s finan- cial resources, expertise, and operating mandate.",palgrave,0,31.38,12.5,0,13.74,12.3,11.98,11.25,15.46
RISK FACTOR,"(1) A source of RISK, including one of a financial or oper- ating nature. (2) A named risk included in FOOTNOTES to the FINANCIAL STATEMENTS of a company, an OFFERING MEMORANDUM, PROSPECTUS,REGISTRATION STATEMENT, or other INVESTMENT offering intended to warn potential INVESTORS or STAKEHOLDERS on the possibility of loss. Risk factors may include MARKET RISKS, CREDIT RISKS, litigation, and so forth.",palgrave,0,23.6,17.5,0,14.28,20.2,12.66,22.75,20.07
RISK FINANCING,"The general class of RISK MANAGEMENT products and mechanisms that seeks primarily to shift the timing of RISK-related losses rather than their permanent transfer to a third party; an institution engaged in risk financing simply delays funding of losses until a future period. See alsoFINITE INSURANCE, FINITE REINSURANCE.",palgrave,0,30.2,15,0,15.5,17.5,12.72,18,18.77
RISK-FREE RATE,"The DEFAULT-free BENCHMARK INTEREST RATE accorded to sovereign nations with the strongest CREDIT RATINGS. The risk-free rate is often used as the base reference rate for the pricing of credit-risky LOANS, BONDS, and DERIVATIVES. See also DISCOUNT RATE, RISK PREMIUM.",palgrave,0,49.52,9.7,11.9,13.44,12,11.4,8,11.32
RISK IDENTIFICATION,"The first stage of the RISK MANAGEMENT PROCESS, where a firm defines its actual, perceived, or anticipated FINANCIAL RISKS and OPERATING RISKS. See also RISK MANAGEMENT, RISK MONITORING, RISK QUANTIFICATION.",palgrave,0,39.33,11.5,0,15.19,14,11.22,11.5,15.33
RISK MANAGEMENT,"The third stage of the  PROCESS, where a firm decides whether to control, retain, eliminate, or expand its FINANCIAL RISKS and OPERATING RISKS. This process may be guided by cost-benefit analysis, available financial resources, and corporate operat- ing directives. See also RISK IDENTIFICATION, RISK MONITORING, RISK QUANTIFICATION.",palgrave,0,38.62,11.8,14.6,16.12,15.1,12.48,11.83333333,15.64
RISK MANAGEMENT PROCESS,"A four-stage process centered on iden- tifying, quantifying, managing, and monitoring FINANCIAL RISK and OPERATING RISK. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK MONITORING, RISK QUANTIFICATION.",palgrave,0,15.98,14.3,0,19.76,17.7,12.18,11.5,19.05
RISK MANAGEMENT TECHNIQUES,"A broad group of methods, including LOSS CONTROL, LOSS FINANCING, and RISK REDUCTION, which companies and sovereign entities often use to manage FINANCIAL RISKS and OPERATING RISKS.",palgrave,0,27.15,16.2,0,15.26,19.1,12.58,21.5,22.65
RISK MARGIN,See RISK PREMIUM.,palgrave,0,59.97,5.6,0,1.52,3.6,14.31,1.5,14.53
RISK MONITORING,"The fourth stage of the RISK MANAGEMENT PROCESS, where a firm tracks and reports its RISK exposures and communicates them to internal and external STAKEHOLDERS. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK QUANTIFICATION.",palgrave,0,46.27,10.9,0,16.01,14.8,10.68,12.75,16.3
RISK NEUTRAL VALUATION,"A framework, developed by Cox, Ross, and Rubenstein and used in certain OPTION pricing models, which indicates that as long as the expected RETURN and DISCOUNT RATE used as inputs reflect the same degree of RISK AVERSION, they have no impact on the price of an option.",palgrave,0,40.69,19.3,0,10.29,24.3,11.68,26.5,21.35
RISK NEUTRALITY,"A characteristic of an individual or institution that accepts the average RETURN or EXPECTED VALUE available on a givenINVESTMENT opportunity, is indifferent to different choices that provide the same return, or requires no excess return for assuming a risk. See also RISK AVERSION, RISK SEEKING.",palgrave,0,23.26,15.6,0,14.86,16.2,11.07,16.25,17
RISK PHILOSOPHY,"A formal expression of a firm’s view on RISK, including its corporate goals related to risk, the focus of its risk activities, and STAKEHOLDER expectations regarding risk activities. See also RISK TOLERANCE.",palgrave,0,38.32,11.9,0,13.4,12.5,11.34,13,17.65
RISK POOLING,"A practical implementation of DIVERSIFICATION, and a fundamental mechanism of the RISK MANAGEMENT markets and the INSURANCE mechanism, based on the concept that independent (i.e., uncor- related) risks can be combined to reduce the overall level of risk. Also known as POOLING.",palgrave,0,24.78,15,0,13.92,15.5,12.2,15.5,16.97
RISK PREMIUM,"(1) A payment made by a RISK-averse firm to a third party to secure ex-ante protection against financial loss from a specific risk exposure.(2)The MARGIN added to the RISK-FREE RATE to compensate for the risk of DEFAULT; the sum of the two yields the DISCOUNT RATE, or the total rate used to discount the value of future risky cash flows. (1) See also PREMIUM.(2)Also known as RISK MARGIN.",palgrave,0,19.38,27.5,0,9.95,34.9,12.35,40,30.73
RISK QUANTIFICATION,"The second stage of the RISK MANAGEMENT PROCESS, where a firm uses mathematical, statistical, or actuarial techniques to estimate the economic impact of FINANCIAL RISKS and OPERATING RISKS on its operations. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK MONITORING.",palgrave,0,17.84,15.6,0,16.3,16.4,11.89,15.75,19.08
RISK RETENTION,"A LOSS FINANCING technique where a company chooses to preserve, rather than transfer or HEDGE, a portion of its FINANCIAL RISK and/or OPERATING RISK. See also HEDGING, RETENTION,  GROUP, RISK TRANSFER, SELF-INSURANCE.",palgrave,0,38.32,11.9,0,14.15,13.8,10.84,11,12.65
RISK RETENTION GROUP,"A RETENTION vehicle, conceptually similar to a GROUP CAPTIVE, where several companies with similar RISKS combine and then spread their exposures via RISK POOLING.",palgrave,0,21.74,16.2,0,15.9,17.8,12.72,20,19.6
RISK REVERSAL,"(1) In the FOREIGN EXCHANGE market, the difference in VOLATILITY between OUT-OF-THE-MONEY CALL and PUT options with the same STRIKE and EXPIRY DATE, providing an indication of VOLATILITY SKEW and VOLATILITY SMILE. (2) See COLLAR.",palgrave,0,35.95,16.9,0,13.82,22.3,9.88,24.5,17.43
RISK SEEKING,"A characteristic of an individual or institution that seeks RISK, reflecting a preference for an INVESTMENT with a higher expected RETURN and higher average risk. See also RISK AVERSION, RISK NEUTRALITY.",palgrave,0,30.36,12.9,0,14.03,12.6,11.03,12.25,17.81
RISK TOLERANCE,"A quantitative expression of a firm’s view on RISK, gener- ally based on the amount it is willing to lose through exposure to FINANCIAL RISK and/or OPERATING RISK, the amount it can earn in assuming or pre- serving risk or must pay to transfer it, and the financial resources it has at its disposal to support risky activities. See also RISK PHILOSOPHY.",palgrave,0,48.47,14.2,0,9.88,16.3,10.27,20.5,18.21
RISK TRANSFER,"A LOSS FINANCING technique where one party shifts an exposure to another party, paying a small, certain cost (such as a PREMIUM or fee) in exchange for coverage of uncertain losses. A standard INSURANCE POLICY is a common risk transfer mechanism. See also RISK RETENTION, HEDGING.",palgrave,0,47.49,10.4,13.6,10.72,10.3,10.92,11,13.95
RISK-WEIGHTED ASSETS (RWA),"ASSETS of a BANK that have been adjusted, or weighted, by specific RISK WEIGHTS that are designed to reflect their relative degree of RISK. The weights are governed by BASLE II for participating banks, and range from 0% for cash and high-quality GOVERNMENT SECURITIES to 100% for LOANS to less creditworthy borrowers. OFF-BALANCE SHEET contracts are included in the risk adjustment process. Also known as RISK-ADJUSTED ASSETS.",palgrave,0,54.42,9.8,13.4,12.53,12.2,11.07,11.625,12.69
RISK WEIGHTS,"The assignment of weights to specific classes of RISKS, used in the computation of RISK-WEIGHTED ASSETS for CAPITAL ADEQUACY pur- poses under the STANDARDIZED APPROACH of BASLE II.Obligations of sovereigns:Obligations of corporates:Retail products (credit cards, auto loans, personal finance, and small business) risk weight: 75%Residential property risk weight: 35%Commercial real estate risk weight: 100%Other assets risk weight: 100%Cash risk weight: 0%",palgrave,0,-7.37,29.4,0,19.28,39.6,15.72,43.5,32.27
RMBS,See RESIDENTIAL MORTGAGE-BACKED SECURITY.,palgrave,0,-51.03,21.4,0,29,25.3,19.62,4,21.6
ROA,See RETURN ON ASSETS.,palgrave,0,75.88,3.7,0,1.45,1.8,7.78,1,1.6
ROADSHOW,"A series of sales and marketing presentations held for INSTITUTIONAL INVESTORS by a company or sovereign entity preparing to launch a NEW ISSUE of SECURITIES; the focus of such meetings is on the ISSUER’S financial standing and prospects, and on a general review of the planned new issue. Roadshows are typically arranged and managed by the LEAD MANAGER and/or other institutions forming part of the SYNDICATE. Also known as DOG AND PONY SHOW. See also NONDEAL .",palgrave,0,43.73,11.9,13.8,11.66,12,10.19,13.125,13.39
ROE,See RETURN ON EQUITY.,palgrave,0,50.5,7.2,0,1.45,1.8,7.78,2,11.6
ROI,See RETURN ON INVESTMENT.,palgrave,0,50.5,7.2,0,7.25,6.5,7.78,2,11.6
ROLL DOWN,"The process of exchanging one OPTION position for a new one with a lower STRIKE PRICE by closing out the original position. See also ROLL FORWARD, ROLL UP.",palgrave,0,65.73,7.6,0,8,7.1,8.84,8,9.89
ROLL FORWARD,"The process of exchanging one OPTION position for a new one with a longer MATURITY date by closing out the original position. See alsoROLL DOWN, ROLL UP.",palgrave,0,66.23,7.4,0,8.75,7.5,9.57,8.25,11.33
ROLL UP,"The process of exchanging one OPTION position for a new one with a higher STRIKE PRICE by closing out the original position. See also ROLL DOWN, ROLL FORWARD.",palgrave,0,65.73,7.6,0,8.63,7.6,8.84,8,9.89
ROLLER COASTER,See VARIABLE PRINCIPAL SWAP.,palgrave,0,50.5,7.2,0,11.6,10,15.68,2,11.6
ROLLING DOWN THE CURVE,An INVESTMENT strategy involv- ing the purchase of long-term BONDS in anticipation of CAPITAL GAINS as YIELDS decline. Also known as RIDING THE CURVE.,palgrave,0,59.3,8,0,11.59,9.5,10.81,7,9.8
ROLLOVER,"(1) The process of renewing or reissuing a REPURCHASE AGREEMENT, REVOLVING CREDIT FACILITY, EVERGREEN, DEPOSIT, COMMERCIAL PAPER, ACCOUNT PAYABLE, or NOTE coming due. The rollover provides the DEBTOR with continued funding and the INVESTOR/ CREDITOR with continued RETURNS. (2) The simultaneous sale and purchase of FOREIGN EXCHANGE for one-day settlement, as in a SPOT NEXT or TOM NEXT transaction.",palgrave,0,33.07,16,0,15.27,20.5,12.06,21.25,19.26
ROUND LOT,A SECURITIES ORDER executed in the standard TRADING size associated with the security marketplace. Round lots typically carry lower COMMISSIONS or fees than small size ODD LOTS.,palgrave,0,32.39,12.1,0,14.14,11.6,11.32,10.25,15.77
ROUND TRIP,"The purchase and sale of a SECURITY or EXCHANGE- TRADED DERIVATIVE, generally over a short period of time.",palgrave,0,36.28,12.7,0,10.15,10.8,9.79,13,16.09
ROUTER LOGIC,"The mathematical instructions embedded in an ALGORITHM that indicate where to route each individual CHILD ORDER and/ or a PARENT ORDER in order to take advantage of available trading LIQUIDITY. See also ORDER GENERATION LOGIC, ORDER PLACEMENT LOGIC.",palgrave,0,26.81,14.2,0,14.45,14.4,9.98,14,17.07
RPI,See RETAIL PRICE INDEX.,palgrave,0,75.88,3.7,0,4.35,4.1,11.73,1,1.6
RUF,See REVOLVING UNDERWRITING FACILITY.,palgrave,0,-51.03,21.4,0,23.2,19.4,15.68,4,31.6
RULE 415 REGISTRATION,See SHELF REGISTRATION.,palgrave,0,34.59,9.2,0,13.12,13,9.05,1.5,14.53
RULES-BASED TRADING,See ALGORITHMIC TRADING.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,1.5,14.53
RUN,See BANK .,palgrave,0,77.91,2.9,0,-10.31,-1.7,0.1,0.5,0.8
RUN TO SETTLEMENT,"Any EXCHANGE-TRADED DERIVATIVE CONTRACT that has been allowed to mature without being offset by an equal and opposite position or otherwise closed out, indicating that a physical or cash settlement will result.",palgrave,0,22.08,18.1,0,15.21,20.9,11.14,24,19.05
RUNOFF,Future CLAIMS that an INSURER expects to pay and which are already covered by RESERVES.,palgrave,0,64.71,8,0,9.97,9,10.7,7.5,8.67
RUNNING BROKER,"An INTERMEDIARY BILL BROKER interposed between DISCOUNT HOUSES and bill holders, who brings the parties together but does not DISCOUNT bills.",palgrave,0,41.7,12.7,0,15.61,16.2,11.45,13.5,12.21
RUNNING THE BOOKS,The act of serving as a LEAD MANAGER in an UNDERWRITING.,palgrave,0,68.77,6.4,0,5.26,3.8,7.05,6.5,8.04
RUNNING YIELD,See FLAT YIELD.,palgrave,0,119.19,-2.7,0,-2.38,0.5,9.05,0.5,1.2
RWA,See RISK-WEIGHTED ASSETS.,palgrave,0,59.97,5.6,0,15.03,16.2,19.58,0.5,1.2
S&L,See SAVINGS AND LOAN ASSOCIATION.,palgrave,0,32.56,10,0,10.76,8.4,7.04,2.5,10
S&P 500,See STANDARD AND POOR’S 500.,palgrave,0,100.24,0.5,0,4.96,3.7,13.36,1.5,2
SA,"See SOCIETE ANONYME, SOCIEDAD ANONIMA.",palgrave,0,32.56,10,0,15.4,13.1,16.52,3.5,18
SAFE CUSTODY,The process of keeping in trust with a BANK any ASSETS with physical value.,palgrave,0,74.19,6.4,0,7.42,6.4,8.84,7,8.46
SALAM,"A prepaid FORWARD CONTRACT used in ISLAMIC FINANCE in order to adhere to rules which prohibit the exchange of RIBA (interest). See also IJARA, MURABAHA, SUKUK.",palgrave,0,58.28,8.4,0,10.37,9.3,11.57,7,9.82
SALE AND LEASEBACK,A transaction involving the sale of a real ASSET by one party and an agreement to LEASE the same asset back from the acquirer on a long-term basis. The sale and leaseback allows the seller/LESSEE to inject LIQUIDITY into its BALANCE SHEET and the acquirer/LESSOR to obtain the TAX and financial benefits generated by the lease.,palgrave,0,43.06,14.2,0,10.68,15.5,10.38,18.5,16.2
SALVAGE VALUE,The value of a CAPITAL INVESTMENT at the time of its disposal or discontinuation. See also RESIDUAL VALUE.,palgrave,0,36.96,10.3,0,8.96,6.3,7.59,6,12.49
SAME DAY FUNDS,"Funds that can be transferred or withdrawn on the same business day they are presented or collected, such as FEDERAL FUNDS transmitted via the FED WIRE or electronic transfers arranged via the S CLEARINGHOUSE INTERBANK PAYMENT SYSTEM or CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM.",palgrave,0,20.39,20.8,0,15.8,25.9,11.73,30,24.42
SAMURAI,"A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in Japanese yen in the Japanese markets by a foreign company. See alsoDAIMYO, GEISHA, SHIBOSAI, SHOGUN.",palgrave,0,50.84,9.2,0,10.83,9.5,11.47,8,11.47
SANDWICH LEASE,"A LEASE transaction where a party leases equipment from one party and then subleases the same equipment to a second party, becoming a LESSOR and LESSEE in the process both earning and paying lease payments during the life of the transaction.",palgrave,0,38.32,18.1,0,11.74,22.1,9.91,24.5,18.35
SARBANES-OXLEY ACT 2002,"In the United States, legislation enacted to improve CORPORATE GOVERNANCE, the quality of FINANCIAL STATEMENTS, and the accountability of a company’s financial officers and executives.",palgrave,0,-4.67,20.1,0,19.21,21.2,11.82,23.5,26
SATURDAY NIGHT SPECIAL,"A sudden TAKEOVER attempt by one company of another through a rapid and unexpected TENDER OFFER. See alsoDAWN RAID, PREMIUM RAID.",palgrave,0,52.36,8.6,0,10.53,8.3,10.17,6.75,9.91
SAVINGS,The process of setting aside a certain amount of INCOME after EXPENSES have been paid and placing the funds in a  ACCOUNT or some other INVESTMENT vehicle for future use.,palgrave,0,49.49,13.8,0,10.17,15.6,8.81,18,16
SAVINGS ACCOUNT,"A BANK ACCOUNT where a depositor earns INTEREST on the balance. Funds can generally be removed at will by the depositor, though some BANKS place term or notice restrictions.",palgrave,0,56.76,8.9,0,10.55,9.4,9.26,8.75,11.32
SAVINGS BANK,"A SAVINGS AND LOAN (United States) or BUILDING SOCIETY (United Kingdom), focused on retail DEPOSITS and residentialMORTGAGES.",palgrave,0,28.84,13.5,0,17.57,17.3,9.12,10.5,11.51
SAVINGS RATE,"The degree to which households in a country allocate INCOME to SAVINGS. A low savings rate is indicative of higher consumption, and vice-versa.",palgrave,0,51.34,9,0,11.06,9.1,9.7,6.75,9.82
SCALE EFFECT,See ECONOMIES OF SCALE.,palgrave,0,118.18,-2.3,0,4.35,4.1,11.73,1,1.6
SCALPER,"(1) A MARKET MAKER or DEALER that charges an exces- sive SPREAD on a transaction, in contravention of established rules. (2) An INVESTMENT ADVISOR or BROKER that takes a position in an INVESTMENT before advising clients to do so, and then exits at a profit; such pre-positioning is illegal in certain national systems.",palgrave,0,17.68,24,0,11.51,28.7,13.71,37.5,28.75
SCHATZ,"Abbreviated form of Bundesschatz, a subcategory of German GOVERNMENT BONDS (BUNDS), issued in the 2-year sector with fixed COUPONS. Two-year Federal savings NOTES (Bundesschatzbriefe) are also available for purchase by the retail sector.",palgrave,0,37.81,12.1,0,16.7,16.1,12.59,11.25,12.66
SCHATZWECHSEL,"A TREASURY BILL issued by the German govern- ment, generally carrying a MATURITY of 3 months.",palgrave,0,38.32,11.9,0,9.63,9.6,13.31,11,13.9
SCHEDULE RATING,A pricing method for INSURANCE that involves modi- fication of a general PREMIUM-rate class based on the specific characteristics of the coverage; the adjustment is typically based on charges or credits to a base premium. See also EXPERIENCE RATING.,palgrave,0,34.76,13.3,0,13.34,13.8,11.49,15.25,17.03
SCHULDSCHEIN,"Abbreviated form of Schuldscheindarlehen, or German certificates of indebtedness. Schuldschein represent transferable inter- ests in LOANS between BORROWERS and BANKS; the certificates allow loan interests to be transferred to other INVESTORS, creating a certain amount of SECONDARY TRADING and LIQUIDITY in the CONTRACTS.",palgrave,0,24.27,15.2,0,19.67,20,12.41,16.25,17.9
SCRIP,"(1) Physical CAPITAL certificates with value, such as a COMMON STOCK certificate or BEARER BOND certificate. (2) Temporary certificates issued for a STOCK SPLIT or a SPIN-OFF that can be used to purchase under- lying SHARES of common stock.",palgrave,0,31.89,18.5,0,12.02,22.5,10.83,26.5,19.7
SCRIP ISSUE,"In the United Kingdom, a STOCK SPLIT.",palgrave,0,89.75,2.5,0,4.07,2.9,6.24,2.5,2.8
SEAQ,See STOCK EXCHANGE AUTOMATED QUOTATIONS SYSTEM.,palgrave,0,14.63,12.7,0,18.78,14.5,11.83,4,15.73
SEASONED SECURITY,A SECURITY that has been outstanding in the SECONDARY MARKET for a period of at least several months and has a history of prices and volume. The established track record often makes seasoned secur- ities more marketable than newly issued securities that have just completed the PRIMARY MARKET process.,palgrave,0,46.61,12.8,0,12.6,15.1,10.97,16.75,15.51
SEAT,"A transferable membership on the NEW YORK STOCK EXCHANGE, generally held by an individual (acting for his/her own account or as an officer, partner, or representative of a BANK, INVESTMENT BANK, SECURITIES FIRM, or BROKER/DEALER), which permits direct dealing on the floor of the EXCHANGE.",palgrave,0,17.34,22,0,13.65,26.7,10.78,31.5,24.22
SEATS,See STOCK EXCHANGE ALTERNATIVE TRADING SERVICE.,palgrave,0,31.55,10.4,0,18.78,14.5,9.2,3,9.07
SECOND BANKING DIRECTIVE,"In the EUROPEAN UNION, a directive gov- erning the ability and process for licensing of BANKS within the Union.",palgrave,0,60.65,9.5,0,10.21,11.1,12.89,13.5,16.02
SECOND LIEN LOAN,A form of SYNDICATED LOAN where COLLATERAL CLAIMS securing the borrowing rank behind those of the first loan to be secured by the collateral (which may be considered the first lien loan). Second lien loans generally have less restrictions on any maintenance COVENANTS. See also COVENANT LITE LOAN,palgrave,0,63.7,8.4,13,12,11,9.69,11,13.07
SECOND MORTGAGE,"An additional MORTGAGE taken by a homeowner on the same property, which a BANK will only grant if the combination of the two mortgages is below a specified percentage of the appraised value of the prop- erty, and the borrower’s income can support the DEBT SERVICE.",palgrave,0,24.79,21.2,0,10.69,24,11.07,30,24.49
SECONDARY BANK,"In the United Kingdom, a non-BANK FINANCIAL INSTI- TUTION that performs many of the functions of a BANK but does not typically offer CHECKING ACCOUNTS or SAVINGS ACCOUNTS.",palgrave,0,43.06,14.2,0,12.02,16.8,10.1,16,14.06
SECONDARY OFFERING,Any NEW ISSUE of SECURITIES that occurs after an ISSUER’s inaugural PRIMARY OFFERING. See also ADD-ON.,palgrave,0,29.52,11.1,0,10.8,8.2,10.94,5,13.2
SECONDARY PREFERRED STOCK,"PREFERRED STOCK that is subordinate to an ISSUER’s other preferred stock, including PRIOR PREFERRED STOCK. Such issues, which rank just above COMMON STOCK in seniority, are rela- tively rare.",palgrave,0,56.76,8.9,0,13.51,12.3,10.89,7.75,9.94
SECONDARY RESERVES,"RESERVES in excess of those that FINANCIAL INSTITUTIONS are required to hold for regulatory reasons. Secondary reserves are often used as an emergency buffer to meet unexpected obligations; accord- ingly, they are generally held in the form of very LIQUID, low-RISK SECUR- ITIES that can be converted into cash very quickly.",palgrave,0,37.13,14.4,0,13.29,16.6,11.09,17.25,17.26
SECONDARY TRADING,Any TRADING in SECURITIES or LOANS that occurs after PRIMARY MARKET issuance is completed. Secondary trading may take place through an EXCHANGE or OVER-THE-COUNTER. In certain cases MARKET MAKERS make TWO-WAY PRICES in order to ensure a minimum level of activity.,palgrave,0,49.11,9.8,11.2,12.81,11,9.71,7.833333333,10.36
SECTOR OPTION,"An OVER-THE-COUNTER or EXCHANGE-traded OPTION that references the price or VOLATILITY of an entire industrial or regional sec- tor (e.g., BANKS, automobile manufacturers, technology companies, emerging markets). Although the sector contract provides DIVERSIFICATION among individual COMMON STOCKS, it still creates a concentration in a broad group.",palgrave,0,14.29,17,0,19.32,21.1,14.05,18,17.9
SECURED,"A FINANCING or LIABILITY that is backed by some form of sup- port, such as COLLATERAL or GUARANTEE. See also UN.",palgrave,0,60.82,7.4,0,5.54,4.4,10.17,6.25,11.82
SECURED CREDITOR,"A CREDITOR that has lent MONEY to an individual or company on the basis of COLLATERAL. See also SECURED DEBT, UN.",palgrave,0,52.36,8.6,0,6.12,4.7,10.17,6.25,9.91
SECURED DEBT,"A BOND or LOAN that is collateralized by a CLAIM on the ASSETS of the BORROWER/ISSUER. Secured debt holders rank above all other claimholders in the event the borrower/issuer DEFAULTS. See also SENIOR DEBT, SUBORDINATED DEBT.",palgrave,0,59.3,8,9.7,11.47,9.4,10.81,6.333333333,8.13
SECURED INTEREST,A legal CLAIM of the LENDER over ASSETS pledged by a BORROWER to secure an OBLIGATION. The security interest grants priority over unsecured creditors and provides the right of FORECLOSURE in the event of DEFAULT. Also known as LIEN. See also FLOATING CHARGE.,palgrave,0,60.51,7.5,11.2,10.13,7.6,11.52,6.375,11.76
SECURED LENDING,Any form of FINANCING where the BORROWER pledges COLLATERAL to the LENDER to support repayment in the event ofDEFAULT.,palgrave,0,52.19,10.7,0,12.94,12.8,12.06,13.5,16.02
SECURITIES EXCHANGE ACT 1934,"In the United States, the legislation that led to the creation of the SECURITIES AND EXCHANGE COMMISSION and the enforcement of regulations regarding the financial marketplace that were created in the Securities Act of 1933.",palgrave,0,19.03,19.3,0,14.46,21.6,10.34,27.5,24.29
SECURITIES FINANCING,"The general segment of transactions based on LENDING/BORROWING cash versus SECURITIES-based COLLATERAL. This includes general securities lending, REPURCHASE and REVERSE REPURCHASE AGREEMENTS, and BUY/SELLBACKS.",palgrave,0,0.08,16.2,0,25.33,21.3,12.78,11,13.13
SECURITIES FIRM,"A FINANCIAL INSTITUTION that is primarily involved in originating and issuing new DEBT and EQUITY issues, TRADING SECURITIES and other financial instruments, and executing TRADES on behalf of clients. Securities firms that also deal in the broadest range of CORPORATE FINANCE transactions are more appropriately considered INVESTMENT BANKS.",palgrave,0,13.28,17.4,0,17.93,19.3,13.38,20,21.27
(SIFMA),"In the United States, a trade group that represents the interests ofSECURITIES FIRMS, BANKS, and INVESTMENT MANAGERS, created in 2006 through the MERGER of two previously existing trade groups, the Bond Market Association and the Securities Industry Association.See also SYNTHETIC SECURITIZATION, TRUE SALE SECURITIZATION.",palgrave,0,-15.49,26.4,0,19.34,30.4,12.64,36,28.51
SECURITIZED ASSET,Any ASSET that has been structured through a SECURITIZATION process or program.,palgrave,0,50.84,9.2,0,14.2,11.3,10.81,6,8.13
SECURITY MARKET LINE,"A financial relationship linking the RETURN and the NONDIVERSIFIABLE RISK of a LEVERAGED SECURITY. The security market line depicts PORTFOLIOS that maximize RETURN for a given level of BORROWING and RISK (reflected through BETA). The expected return is given as:where E(rj) is the expected return for security j, E(rm) is the expected return for the market portfolio, rf is the RISK-FREE RATE, and βj is the beta of security j. See also ARBITRAGE PRICING THEORY, CAPITAL ASSET PRICING MODEL.Additional references: Jensen (1972); Merton (1973); Roll (1977); Ross (1976).",palgrave,0,32.22,14.2,15.9,12.59,15.4,11.01,16,15.16
SEDOL,See STOCK EXCHANGE DAILY OFFICIAL LIST.,palgrave,0,56.93,6.8,0,11.07,8.3,6.57,3,9.07
SEED CAPITAL,"A sum of CAPITAL that is provided to a start-up firm to pre- pare business plans, prototypes, and basic hiring. Seed capital may be raised formally or informally, and typically precedes more robust capital allocations gained through VENTURE CAPITAL.",palgrave,0,34.76,13.3,0,13.05,13.8,11.49,14.75,13.95
SEIGNIORAGE,The REVENUE a country derives from the issuance of CURRENCY. Excessive seigniorage can lead to instances of currency DEVALUATION and INFLATION.,palgrave,0,35.44,10.9,0,14.65,11.4,10.92,6.75,11.82
SELF-ASSESSMENT,"A process carried out by a TAX payer, where an estimate of tax due is computed based on actual and anticipated EARNINGS and is then sent to the relevant tax authority.",palgrave,0,40.01,15.4,0,8.54,14.9,10.78,21.5,20.14
SELF-FINANCING,"A state where a company is able to raise the financing it requires through its own operations, indicating that is does not need to rely on BANKS or the CAPITAL MARKETS for funding. In practice, companies often rely on a combination of self-financing and external funding to run their operations.",palgrave,0,37.64,14.2,0,10.97,14.2,8.67,17.5,14.8
SELF-FUNDING,See SELF-INSURANCE.,palgrave,0,-6.7,14.7,0,15.8,22,11.63,1,20.8
SELF-INSURANCE,"A method of RISK RETENTION where an institution pre- serves particular types and amounts of RISK and finances EXPECTED LOSSESby creating an internal fund or establishing a CAPTIVE. Self-insurance is gen- erally applied to exposures that are highly predictable and noncatastrophic, or which cannot be covered by traditional INSURANCE contracts as a result of excessive cost. Also known as SELF-FUNDING.",palgrave,0,34.26,13.5,16.3,15.03,15.4,12.79,15.33333333,17.33
SELF-LIQUIDATING LOAN,A secured or unsecured WORKING CAPITAL LOAN that is repaid through the sale of the INVENTORY being financed; self- liquidating loans are generally used to finance inventories used to meet sea- sonal DEMAND for products. Also known as ASSET CONVERSION LOAN.,palgrave,0,42.21,12.5,0,12.59,13.6,10.82,13.75,14.05
SELF-TENDER,A STOCK BUYBACK arranged by a company based on regu- lar open market purchases that increases the TREASURY STOCK CONTRA- ACCOUNT and reduces the EQUITY account. A self-tender might be used when a company believes it periodically has excess capital that is not generating an adequate RETURN for SHAREHOLDERS.,palgrave,0,29.69,15.2,0,13.06,15.7,10.65,17.75,15.51
SELL DOWN,"The process of reducing exposure on a new LOAN or BOND, through SYNDICATIONS, participations, and sub-UNDERWRITINGS; the sell- down process generally applies to financial intermediaries that are not part of the original SYNDICATE or UNDERWRITING GROUP.",palgrave,0,9.56,20.9,0,17.13,25,12,29,26.62
SELL PLUS ORDER,An ORDER to execute a SECURITIES sale only if the price is higher than the preceding TRADE.,palgrave,0,54.22,9.9,0,7.65,7.8,8.19,11.5,13.86
SELL-SIDE,"FINANCIAL INSTITUTIONS, such as BANKS, INVEST- MENT BANKS, MERCHANT BANKS, or UNIVERSAL BANKS, that provide ser- vices, including investment advice, NEW ISSUES, and other product offerings, and trading EXECUTION, to client firms in exchange for fees and commissions (i.e., “selling”). See also BUY-SIDE.",palgrave,0,41.19,12.9,0,15.2,17.9,13.52,14.75,16.04
SELL THE BOOK ORDER,An ORDER to sell as much of a current position as possible at the prevailing market price.,palgrave,0,62.68,8.7,0,7.31,7.6,7.27,11.5,11.51
SELLERS’ MARKET,"A market condition where DEMAND exceeds SUPPLY, causing prices to rise and giving potential sellers a greater opportunity to achieve a favorable OFFER price. See also BUYERS’ MARKET.",palgrave,0,40.35,11.1,0,13.62,11.7,11.66,8.5,12.74
SELLER’S OPTION,"A transaction where the seller of SECURITIES has the OPTION to deliver a security at a future time, generally 6 to 60 days after TRADE date.",palgrave,0,36.63,14.6,0,8.25,12.4,11.61,18,18.09
SELLING AWAY,"An illegal practice where a BROKER at a SECURITIES FIRM or BROKER/DEALER sells clients’ financial products originated by another securities firm. In the event of problems or losses, clients may not have RECOURSE to the broker’s employing firm.",palgrave,0,43.73,11.9,0,13.58,13.6,12.06,13.5,12.86
SELLING CONCESSION,"The DISCOUNT at which a NEW ISSUE is allocated to SYNDICATE members. The selling concession comprises approximately half the UNDERWRITING SPREAD, or the difference between the price paid to the ISSUER and the public offering price.",palgrave,0,36.28,12.7,0,13.51,13.2,9.79,13,14.98
SELLING OUT,"The process followed by a SECURITIES FIRM, BROKER/ DEALER, or BANK of disposing of SECURITIES or other ASSETS that a cli- ent has failed to purchase under the terms of an ORDER. The client is typ- ically invoiced for any difference between the selling price and the order price.",palgrave,0,55.07,11.7,0,9.41,12.9,10.65,14.25,11.43
SELLOUT,The process of liquidating a MARGIN LOAN or EXCHANGE- TRADED DERIVATIVE when payment is not received for SECURITIES or a VARIATION MARGIN call is not met. Sellout leads to de facto cancellation of the underlying loan or derivative.,palgrave,0,43.73,11.9,0,11.89,12.1,10.4,13,13.92
SEMIVARIANCE,A statistical measure that focuses on all outcomes that occur below the MEAN. Such a measure is useful in an examination of loss distributions.,palgrave,0,42.38,10.3,0,10.37,8.1,8.18,7,11.47
SENIOR CAPTIVE,"A CAPTIVE that functions as an expanded form of the PURE CAPTIVE, writing a sufficiently large amount of third party business that it is generally entitled to greater TAX benefits than the pure captive. See also AGENCY CAPTIVE, GROUP CAPTIVE, PROTECTED CELL COMPANY, RENT-A-CAPTIVE, SISTER CAPTIVE.",palgrave,0,39.67,13.4,0,13.76,16,8.21,15.5,14.42
SENIOR DEBT,(1) A BOND or LOAN that ranks higher in CLAIM priority than SUBORDINATED DEBT (JUNIOR DEBT). (2) See SENIOR UNSECURED DEBT.,palgrave,0,50.16,11.5,0,8.94,12.1,12.95,13.5,14.11
SENIOR SECURED DEBT,A form of SENIOR DEBT with COLLATERAL or SECURITY pledged in support of repayment in the event of a BORROWER’S DEFAULT.,palgrave,0,50.16,11.5,0,9.81,11.3,12.2,14.5,16.02
SENIOR SUBORDINATED DEBT,"The lowest ranking form of SENIOR DEBT. Senior subordinated CLAIMS receive payment after senior INVESTORS or CREDITORS, but before JUNIOR investors or creditors and EQUITY investors.",palgrave,0,32.9,11.9,0,16.17,13.5,9.75,7.5,9.82
SENIOR UNSECURED DEBT,A form of SENIOR DEBT without any COLLATERAL or SECURITY pledged in support of repayment in the event of DEFAULT. Also known as SENIOR DEBT.,palgrave,0,58.79,8.2,0,8.28,6.7,9.94,6.75,9.8
SENIORITY,"The ranking of a company’s LIABILITIES within its overall CAPITAL STRUCTURE. In the event of BANKRUPTCY, the most senior liabil- ities receive recompense before less senior liabilities.",palgrave,0,23.93,13.3,0,15.42,13.1,11.32,10.25,12.81
SEQUENTIAL PAY BOND,"A standard COLLATERALIZED MORTGAGE OBLIGATION that pays INVESTORS CASH FLOWS from the underlying MORTGAGE-BACKED SECURITIES in strict sequence. Subordinated TRANCHES only receive payments once senior tranches have been paid. See also PLANNED AMORTIZATION CLASS BOND, TARGETED AMORTIZATION CLASS BOND.",palgrave,0,32.9,11.9,13,20.05,16.7,12.38,8.5,12.38
SERIAL BOND,One of a group of BONDS issued by a single company or municipality that matures over a period of successive years. See also SERIES BOND.,palgrave,0,58.79,8.2,0,7.35,5.9,9.94,7.25,9.8
SERIES BOND,One of a group of BONDS issued by a single company or municipality under the same INDENTURE. Each bond in the series may have a unique COUPON and MATURITY. See also SERIAL BOND.,palgrave,0,60.31,7.6,10.5,6.48,4.7,8.97,6.166666667,9.25
SET-OFF,"A NETTING arrangement where an institution and a COUNTERPARTY in DEFAULT agree to terminate all transactions and net payments due or owed under all existing CONTRACTS. See also NOVATION, PAYMENT NETTING.",palgrave,0,38.82,11.7,0,14.21,12.6,10.52,11.25,15.23
SETS,See STOCK EXCHANGE TRADING SYSTEM.VALUE DATE.,palgrave,0,48.47,8,0,15.88,13,9.2,3,2.4
SETTLEMENT PRICE,"(1) The last price at which an EXCHANGE-TRADED DERIVATIVE closes, typically computed on the last day of the delivery month.(2) The closing price on a COMMODITY or other traded ASSET.",palgrave,0,32.57,16.2,0,11.33,17.6,10.91,21,18.67
SEVERABILITY CLAUSE,"A COVENANT in a DIRECTOR and officers’ LIABILITY INSURANCE POLICY that permits the INSURER to avoid making a SETTLEMENT payment if a director is found to have committed FRAUD; however, it must still pay legal fees and any judgments against all remaining directors.",palgrave,0,19.37,21.2,0,13.13,24.4,11.64,33.5,25.57
SEVERAL BUT NOT JOINT,"A legal condition where each party to a transac- tion is liable only for its part of the process and not all others; several but not joint LIABILITY is commonly used in the UNDERWRITING of BONDS, where each SYNDICATE member is only responsible for distributing the portion of bonds it has been allocated. See also JOINT AND SEVERAL.",palgrave,0,42.04,14.6,0,10.34,15.4,9.7,19.5,17.12
SEVERITY RATE,"A measure of the expected or potential size of a loss, used by INSURERS to compute appropriate PREMIUM rates.",palgrave,0,43.73,11.9,0,9.86,10.6,10.4,14.5,18.13
SHADOW CALENDAR,A list of NEW ISSUES of SECURITIES that are currently in REGISTRATION with a securities commissioner or REGULATOR but which have no firm offering date. See also PIPELINE.,palgrave,0,40.35,11.1,0,11.36,9.6,9.41,10.5,14.17
SHADOW STOCK,See PHANTOM STOCK.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
SHANGHAI STOCK EXCHANGE (SSE),"The main STOCK EXCHANGE of China, formally established in 1990 (though its roots date back to the 1890s), and responsible for trading STOCKS, BONDS and FUNDS on an electronic basis. The SSE trades A-SHARES (denominated in Yuan) and B-SHARES (denominated in dollars), with the SSE Composite serving as the main BENCHMARK INDEX of the country. The SSE is one of three stock exchanges in China, operating alongside the HONG KONG STOCK EXCHANGE and the smaller Shenzhen Stock Exchange.",palgrave,0,53.55,12.3,12.5,11.84,16,11.2,15.66666667,13.99
SHARE,"A unit of STOCK representing partial ownership in the company that has issued the stock. The share represents certain RENT RIGHTS and legal rights, and in most instances is freely transferable.",palgrave,0,64.2,8.2,0,12.35,11.1,10.01,10.25,11.36
SHARE ACCOUNT,"In the United States, an ACCOUNT granted to a member of a CREDIT UNION, into which DIVIDENDS are paid.",palgrave,0,69.11,8.3,0,7.43,8.9,7.9,10.5,9.71
SHARE CAPITAL,"CAPITAL raised by a company through the issuance of SHARES to INVESTORS. See also AUTHORIZED CAPITAL, PAID-IN CAPITAL.",palgrave,0,53.88,8,0,12.21,9.5,8.47,6,5.82
SHARE CERTIFICATE,"In the United Kingdom, a STOCK CERTIFICATE.",palgrave,0,64.37,6,0,9.06,7,6.24,3.5,8.51
SHARE DIVIDEND,"In the United Kingdom, a STOCK DIVIDEND.",palgrave,0,64.37,6,0,6.56,5,6.24,3.5,8.51
SHARE INDEX,"In the United Kingdom, a STOCK INDEX.",palgrave,0,81.29,3.7,0,4.07,2.9,6.24,2.5,2.8
SHARE OPTION,"In the United Kingdom, a STOCK OPTION.",palgrave,0,81.29,3.7,0,4.94,3.6,6.24,2.5,2.8
SHARE PREMIUM,"In the United Kingdom, an ACCOUNT that reflects the difference between the PAR VALUE of SHARES and the issue price of the shares. It is treated as a form of UNDISTRIBUTABLE RESERVES. See also CAPITAL SURPLUS.",palgrave,0,76.22,5.6,7.8,9.03,7.2,7.74,5.666666667,4.8
SHARE SPLIT,"In the United Kingdom, a STOCK SPLIT.",palgrave,0,89.75,2.5,0,4.07,2.9,6.24,2.5,2.8
SHAREHOLDER,"An INVESTOR holding one or more SHARES of COMMON STOCK in a CORPORATION. In many jurisdictions each shareholder, as a frac- tional owner of the corporation, holds a legal right (e.g., the right to vote on specific issues) and a RENT RIGHT (e.g., the right to receive appropriate distri- bution of profits, which may include CAPITAL GAINS and/or DIVIDENDS).",palgrave,0,41.53,14.8,0,10.86,17.1,10.99,18.75,15.87
SHAREHOLDER ACTIVISM,"A process by which SHAREHOLDERS of a company use the legal rights inherent in their shareholdings to require the BOARD OF DIRECTORS to consider, and the shareholder body at large to vote on, specific issues. In addition to the formal process of shareholder voting, activism can extend to public or private dialog with directors or EXECUTIVE MANAGEMENT in an attempt to consider and resolve certain issues.",palgrave,0,29.52,17.3,0,12.78,19.3,10.78,24,19.87
SHAREHOLDER VALUE,The total value of a PUBLIC COMPANY accruing to the SHAREHOLDERS. Maximization of shareholder value is a goal of many companies and is typically reflected through strong business operations which allow for payment of DIVIDENDS and an increase in the STOCK price.,palgrave,0,41.7,12.7,0,12.94,13.8,8.81,15.5,16.97
SHAREHOLDERS EQUITY,"The sum of a company’s RETAINED EARNINGS and SHARE CAPITAL, reflective of any decrease through TREASURY STOCK purchases.",palgrave,0,44.75,11.5,0,14.96,14.5,10.67,13,13.87
SHARES OUTSTANDING,See OUTSTANDING SHARES.,palgrave,0,59.97,5.6,0,13.12,13,14.31,1.5,14.53
SHARK,"An individual or institution that is able to detect any single strategy being used within the DARK POOL sector and use that knowledge to FRONT RUN or position itself to profit. This is typically done through ALGORITHMS that are specifically designed to identify revealing trading pat- terns. See also GAMING, PINGING.",palgrave,0,45.76,11.1,13,12.24,11.8,10.36,11.5,13.86
SHARK REPELLENT,See ANTITAKEOVER DEFENSE.,palgrave,0,34.59,9.2,0,16.95,16.2,9.05,1.5,14.53
SHARPE INDEX,"A measure of RISK-adjusted PORTFOLIO performance that compares the RISK PREMIUM (or RETURN) of the portfolio with its risk (as measured through STANDARD DEVIATION). The Sharpe index, which uses the CAPITAL MARKET LINE as a BENCHMARK, can be computed via:where E(rp) is the expected return of the portfolio, rf is the risk-free rate, and σ(rp) is the standard deviation of the portfolio. In general, the higher the ratio, the better the investment strategy on a risk-return basis. Also known as SHARPE RATIO. See also TREYNOR INDEX, JENSEN INDEX.Additional reference: Sharpe (1966).",palgrave,0,44.54,11.6,13.7,12.24,13.1,9.74,12.5,12.12
SHARPE RATIO,See SHARPE INDEX.,palgrave,0,93.81,0.9,0,1.52,3.6,14.31,0.5,1.2
SHELL,"A form of corporate organization that holds no significant operations of its own, apart from certain ownership stakes in ASSETS or other INVESTMENTS, and which is often created for TAX-purposes in tax-friendly jurisdictions.",palgrave,0,12.6,19.7,0,16.2,22.5,11.02,25.5,24.11
SHELL COMPANY,"A company that is registered, and in some cases listed on a STOCK EXCHANGE, but which has no specific operations. A shell company may be used in a REVERSE TAKEOVER by a PRIVATE COMPANY.",palgrave,0,62.68,8.7,0,7.65,8.1,8.19,11.5,10.33
SHIBOSAI,"A PRIVATE PLACEMENT denominated in Japanese yen, issued by a foreign company in Japan. See also DAIMYO, GEISHA, SAMURAI, SHOGUN.",palgrave,0,52.87,8.4,0,11.11,9.2,13.61,5.5,8
SHIKKO YAKUIN,"The corporate executive officer under the Japanese SINGLE BOARD SYSTEM, responsible for separating the supervisory and execu- tive duties embedded in the BOARD OF DIRECTORS.",palgrave,0,-4.67,20.1,0,16.89,19.1,12.46,22.5,24.4
SHOCK LOSS,"A catastrophic loss that is so severe that an INSURER providing INSURANCE coverage related to the loss may suffer FINANCIAL DISTRESS. In practice insurers protect against shock loss by using REINSURANCE mecha- nisms and DIVERSIFICATION techniques, and establishing internal limits related to maximum UNDERWRITING exposures. See also CLASH LOSS.",palgrave,0,21.09,14.4,16.3,16.88,15.2,12.18,13.5,18.76
SHOE,See GREEN.,palgrave,0,120.21,-3.1,0,-7.41,0.8,0.1,0,0.8
SHOGUN,"A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in a foreign CURRENCY in the Japanese markets by a foreign company. See also DAIMYO, GEISHA, SAMURAI, SHIBOSAI.",palgrave,0,49.82,9.5,0,9.96,9.2,10.96,8,11.35
SHOKEN,A Japanese SECURITIES FIRM.,palgrave,0,8.2,13.1,0,10.15,8.8,15.68,3,21.6
SHORT,See  POSITION.,palgrave,0,-6.7,14.7,0,1.3,7.8,11.63,1,20.8
SHORT AGAINST THE BOX,"A practice of BORROWING SECURITIES from a SECURITIES FIRM or BROKER/DEALER and selling them SHORT in order to protect gains embedded in an offsetting LONG POSITION. From a TAX perspective, shorting against the box is generally considered a “construct- ive sale” that generates a CAPITAL GAINS LIABILITY.",palgrave,0,30.7,14.8,0,14.1,16.1,11.19,18.25,17.91
SHORT ARBITRAGE,"An ARBITRAGE strategy employed in the FUTURES market when the FORWARD RATE is higher than the futures rate, indicat- ing that the cash market is underpriced to the futures market; the strategy calls for buying the UNDERLYING ASSET and selling futures. See also LONG ARBITRAGE.",palgrave,0,48.64,12.1,0,12.25,14.1,9.31,14.75,13.44
SHORT BILL,A BILL OF EXCHANGE that is payable on demand or on very short notice.,palgrave,0,91.11,4,0,4.92,4.4,6.59,6,5.6
SHORT CARRY,"The CARRY generated by a SHORT position, defined for FIXED INCOME positions as daily financing income less daily COUPON cost. See also LONG CARRY.",palgrave,0,50.84,9.2,0,10.83,8.7,8.84,7,11.47
SHORT COUPON,"A COUPON falling between a normal current coupon period, often associated with the first INTEREST payment on a BOND or NOTE; subsequent coupons generally revert to a normal monthly, semiannual, or annual cycle.",palgrave,0,21.06,18.5,0,13.7,20.5,12.93,23.5,21.68
SHORT COVERING,The process where BEAR INVESTORS or SPECULATORS with SHORT positions repurchase the STOCK or ASSET in order to reduce or flatten their shorts. Short covering occurs when a BEAR SQUEEZE is antici- pated or underway.,palgrave,0,53.71,10.1,0,11.77,11.5,10.82,11.75,13.86
SHORT END,"The short MATURITIES of the YIELD CURVE, generally considered to include those less than 3 years. See also BELLY OF THE CURVE, LONG END.",palgrave,0,67.76,6.8,0,8.16,6.8,9.5,6.5,9.8
SHORT HEDGE,"A SHORT POSITION in a DERIVATIVE or financial instru- ment that is used to protect a natural LONG POSITION. As falling prices create a loss on the natural long position, the short hedge produces an offsetting gain; the reverse occurs with rising prices. See also LONG HEDGE.",palgrave,0,55.54,9.4,12.5,9.8,9.2,9.12,10.5,10.54
SHORT INTEREST,"The amount of SECURITIES or ASSETS sold SHORT that have not been repurchased or closed out. In general, the greater the level of short interest, the greater the likelihood that INVESTORS are expecting a decline in a security or market; however, a large short interest balance lasting for an extended period of time may also lead to buying pressure as short inves- tors and SPECULATORS seek to cover their positions.",palgrave,0,35.95,16.9,0,11.38,19.3,10.11,24,19.71
SHORT INTEREST RATIO,"The ratio of shares of STOCK sold SHORT versus average daily TRADING volume, often used as a technical indicator to deter- mine whether the market is OVERBOUGHT or OVERSOLD. See also SHORT INTEREST.",palgrave,0,54.73,9.7,0,10.9,10.5,10.68,10.25,11.45
SHORT RATE MODEL,"A form of mathematical model used in the pricing of INTEREST RATE DERIVATIVES which relies on the use of a short (e.g., one period) rate as the center of modeling process, generally a RISK-FREE RATE. Short rate models may be constructed as SINGLE FACTOR MODELS or MULTIFACTOR MODELS. See also FORWARD RATE MODEL.",palgrave,0,53.51,10.2,12.5,9.8,10.5,9.58,11.5,13.12
SHORT SALE,"The sale of a borrowed position that establishes a SHORT POSITION. The party selling short expects that the market price of the ASSET, SECURITY, or INDEX sold short will decline. See also NAKED SHORTING.",palgrave,0,60.01,7.7,9.7,9.67,7.8,9.31,6,8.05
SHORT SELLER,"An INVESTOR, HEDGER, or SPECULATOR that engages in SHORT SALES in order to capitalize on expectations that the price of an ASSET, SECURITY, or INDEX will decline.",palgrave,0,35.61,15,0,11.15,15.8,11.41,17.5,16.73
SHORT SELLING,The act of creating a SHORT SALE.,palgrave,0,89.75,2.5,0,1.57,0.3,6.24,3.5,8.51
SHORT TENDER,The process of using borrowed COMMON STOCK to fulfill the terms of a TENDER OFFER.,palgrave,0,73.17,6.8,0,8.05,7.4,11.75,6.5,6
SHORT-TERM DEBT,"Any form of DEBT with a MATURITY of less than 1 year. See also CURRENT LIABILITIES, LONG-TERM DEBT, MEDIUM-TERM DEBT.",palgrave,0,69.79,6,0,7.92,6.6,8.87,5,8
SHORT-TERM MONETARY SUPPORT,Funds made available by the EUROPEAN CENTRAL BANK to member nations that have not yet adopted the EURO for assistance in managing BUDGET DEFICITS. The funds are typically due and repayable within 3 months.,palgrave,0,62.68,8.7,0,11.42,10.9,11.91,10.5,11.51
SHORT THE BASIS,An ARBITRAGE or TRADING strategy where a SHORT POSITION in a cash instrument is HEDGED by a LONG POSITION in FUTURES or FORWARDS.,palgrave,0,48.13,12.3,0,9.75,12,10.27,16.5,16.16
SHOUT OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that allows the buyer to lock in any gains when a “shout” is declared (i.e., the buyer formally declares its intention to lock in); gains are not lost if the marketsubsequently retraces. See also CLIQUET OPTION, FIXED STRIKE SHOUT OPTION, FLOATING STRIKE SHOUT OPTION, LADDER OPTION.",palgrave,0,54.56,11.9,0,12.71,16.4,9.93,14.5,12.4
SIFMA,See SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION.,palgrave,0,-28.7,19,0,22.34,17.1,15.26,6.5,25.66
SIGHT DEPOSIT,Any form of DEPOSIT placed by a DEPOSITOR with a BANK that can be withdrawn on demand.,palgrave,0,71.14,7.6,0,5.97,6.5,8.19,8.5,9.15
SIGHT DRAFT,"A BILL OF EXCHANGE, DRAFT, or NEGOTIABLE INSTRUMENT that is payable to the holder upon presentation.",palgrave,0,55.24,9.5,0,12.18,11.6,9.36,11,13.9
SILENT PARTNERSHIP,"A form of PARTNERSHIP where one of the PARTNERS provides CAPITAL but does not participate in the management of the operation. Also known as SLEEPING PARTNERSHIP. See also ACTIVE PARTNERSHIP, GENERAL PARTNERSHIP, LIMITED PARTNERSHIP.",palgrave,0,34.63,11.2,14.1,14.65,11.8,8.38,8.333333333,10.4
SIMPLE BREAKEVEN,"A measure of the number of years it takes for the YIELD ADVANTAGE of a CONVERTIBLE BOND to cover the initial CONVERSION PREMIUM paid by the INVESTOR in acquiring the bond, typ- ically computed as:where Convprem is the conversion premium and YA is the yield advantage. See also ADJUSTED BREAKEVEN, EQUIVALENT BREAKEVEN.",palgrave,0,45.09,13.4,0,12.13,15.7,10.7,18.5,16.55
SIMPLE YIELD,"A method of computing the annual YIELD on a BOND, com- monly used in the JAPANESE GOVERNMENT BOND market. The standard form of the calculation is:where C is the annual COUPON, Par is the PAR VALUE of the bond, P is the price of the bond, and t is the number of years until MATURITY. See alsoBOND EQUIVALENT YIELD, CURRENT YIELD, DISCOUNT YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.See also SIMULATION METHOD.",palgrave,0,54.56,11.9,14.1,9.46,13.5,9.72,16.16666667,13.73
SIMULTANEOUS PAY BOND,See PLANNED AMORTIZATION CLASS (PAC) BOND.,palgrave,0,73.85,4.5,0,12.05,10.6,14.46,3,9.07
SIN STOCK,"The STOCKS of companies involved in “sin” industries, generally taken to mean tobacco, spirits, and gaming.",palgrave,0,29.86,13.1,0,14.32,13.7,11.34,12,13.9
SINGLE FACTOR MODEL,"A form of mathematical model used in the pricing of INTEREST RATE DERIVATIVES in which all of the uncertainty related to the future movement of interest rates is captured in a single factor, generally a short-term rate. The entire TERM STRUCTURE is evolved from the singlerate. Also known as ONE FACTOR MODEL. See also FORWARD RATE MODEL, MULTIFACTOR MODEL, SHORT RATE MODEL.",palgrave,0,47.28,10.5,11.7,11.08,10.2,8.99,9,11.36
SINGLE LIFE ANNUITY,"An ANNUITY that is paid only to the BENEFICIARY during his/her lifetime, with no subsequent transfer to a survivor.",palgrave,0,43.73,11.9,0,11.43,12.1,9.57,12.5,13.92
SINGLE MARKET,"The framework established in 1986 under the Single European Act requiring EUROPEAN COMMUNITY nations to create the frame- work for removal of barriers to TRADE, capital movement, and personal move- ment by 1992. Also known as EUROPE 1992.",palgrave,0,43.73,11.9,0,12.47,13,10.81,13.5,13.92
SINGLE PEG,A MANAGED FOREIGN EXCHANGE RATE technique manage- ment where a country’s CENTRAL BANK or monetary authority pegs the value of its currency to another CURRENCY. See also COMPOSITE PEG.,palgrave,0,39.84,11.3,0,12.52,11,10.89,10.25,11.32
SINGLE PREMIUM INSURANCE,"A form of life INSURANCE where the INSURED pays in one sum of money to secure the policy, rather than a series of regular PREMIUMS.",palgrave,0,54.56,11.9,0,7.38,11.2,9.93,16.5,16.4
SINGLE STOCK FUTURE,"A FUTURES CONTRACT where the UNDERLYING reference ASSET is a STOCK, generally a LIQUID, large capitalization issue. Single stock futures are traded on selective EXCHANGES.",palgrave,0,33.41,11.7,0,15.01,12.5,11.84,7.75,13
SINGLE TEXT METHOD,"A process where existing, and disparate, INSURANCE CONTRACTS are redrafted into a new master policy so that all covered PERILS are included under a single agreement. See also ATTACHMENT METHOD.",palgrave,0,47.79,10.3,0,13.04,11.8,11.22,10.5,14
SINKER,A BOND that contains a SINKING FUND provision in theINDENTURE.,palgrave,0,61.33,7.2,0,11.4,8.5,13.61,6,12
SINKING FUND,"(1) Funds that are accumulated in a segregated account in order to retire DEBT on a specific schedule. The sinking fund can be satisfied by direct contributions to the account or by redeeming or repurchasing the debt. (2) A SELF-INSURANCE fund that a company establishes to cover RISKS that it chooses to retain. (1) See also DOUBLING OPTION, SINKER.",palgrave,0,33.07,16,0,10.86,16.6,11.26,19.75,17.9
SIPC,See SECURITIES INVESTOR PROTECTION CORPORATION.,palgrave,0,-35.13,19.4,0,27,21.6,16.52,4.5,26
SISTER CAPTIVE,"A CAPTIVE formed as a licensed INSURER or REINSURER that acts as an extension of the PURE CAPTIVE, writing INSURANCE cover primarily for other companies forming part of the same “economic family,”",palgrave,0,22.08,18.1,0,12.83,18.9,10.65,24,21.55
SIV,See STRUCTURED INVESTMENT VEHICLE.,palgrave,0,8.2,13.1,0,20.3,17.1,15.68,3,21.6
SIV LITE,A form of a STRUCTURED INVESTMENT VEHICLE that fea- tures a finite life and generally a higher degree of LEVERAGE.,palgrave,0,51.18,11.1,0,9.69,10.9,12.52,13,14
SIZE,"A large offering of, or position in, SECURITIES or other financialASSETS.1where N is the number of observations, xi is an observation, μ is the mean, σ is the STANDARD DEVIATION.See also KURTOSIS, NORMAL DISTRIBUTION.",palgrave,0,11.59,20.1,0,13.18,21.1,12.75,26,24.19
SKIP DAY SETTLEMENT,A market practice where the SETTLEMENT of SECURITIES takes place one day after the normal settlement day.,palgrave,0,54.22,9.9,0,12.47,11.8,8.19,11.5,9.15
SLEEPING BEAUTY,"A company that is a possible TAKEOVER candi- date as a result of large cash holdings, undervalued ASSETS, and/or underper- forming operations.",palgrave,0,23.77,15.4,0,13.05,15.5,11.19,16,14.25
SLEEPING PARTNERSHIP,See SILENT PARTNERSHIP.,palgrave,0,59.97,5.6,0,13.12,13,9.05,1.5,14.53
SLIP,"A document prepared by a BROKER for an UNDERWRITER at LLOYD’S OF LONDON which contains all relevant information on the RISK being underwritten and the specific terms and conditions. The underwriter agreeing to accept the risk signs the slip, which is then circulated by the broker to other underwriters, until the coverage is completed.",palgrave,0,27.15,16.2,0,13,16.8,10.82,19.5,18.95
SLOW LOAN,A LOAN where the BORROWER has become delinquent on INTEREST and/or PRINCIPAL payments; a slow loan must generally be reclas- sified as a NONACCRUAL LOAN and LOAN LOSS RESERVES must be allocated in anticipation of a possible write-off.,palgrave,0,24.45,19.3,0,12.6,22,10.51,27,22.57
SMALL CAP STOCK,"The COMMON STOCK of a company with a small MARKET CAPITALIZATION, typically under $1 billion. See also ANKLE BITER, LARGE CAP STOCK, MICROSTOCK, MID-CAP STOCK.",palgrave,0,41.87,10.5,0,11.3,10.3,9.94,7.25,9.8
SMALL COMPANY,"In the United Kingdom, a PRIVATE COMPANY with NET WORTH, REVENUES, and staffing that do not exceed specified levels, and which are therefore permitted to prepare FINANCIAL STATEMENTS according to a different set of rules than those applied to PUBLIC COMPANIES.",palgrave,0,29.86,19.3,0,14,24.4,11.06,27.5,21.28
SMALL GROUP,"In the United Kingdom, a group with NET WORTH, REVENUES, and staffing that do not exceed specified levels, and which are therefore permitted to prepare FINANCIAL STATEMENTS according to a dif- ferent set of rules than those applied to PUBLIC COMPANIES.",palgrave,0,38.32,18.1,0,12.72,23.4,11.45,25.5,21.28
SMALL PRINT,See FINE PRINT.,palgrave,0,119.19,-2.7,0,-2.38,0.5,0.15,0.5,1.2
SMART CARD,"A plastic card with an embedded microchip that contains details of the holder’s financial and other records, and which can be used for a variety of purposes, including withdrawal or transfer of MONEY.",palgrave,0,37.98,16.2,0,12.31,19,11.49,22.5,20.47
SMART MONEY,Sophisticated and successful INSTITUTIONAL INVESTORS that have a strong record of performance in INVESTMENT and which are often the first to identify and exploit market opportunities.,palgrave,0,19.71,17,0,18.05,20.2,10.39,20,21.17
SME LOAN,See SMALL AND MEDIUM ENTERPRISE LOAN.,palgrave,0,73.85,4.5,0,9.15,6.7,9.2,3,9.07
SMOOTHING,"The process of manipulating FINANCIAL STATEMENTS in order to create a more appealing, less volatile, picture of earnings. Though such smoothing is contrary to ACCOUNTING principles that mandate a true and fair evaluation of the financial position, it can be difficult to detect and prevent in all cases.",palgrave,0,38.66,13.8,0,13.35,15.7,11.08,16.5,16.27
SMURFING,A process in MONEY LAUNDERING where a large sum of MONEY is divided into many small transactions in order to integrate it into the financial system without detection by the authorities.,palgrave,0,31.55,16.6,0,12.14,17.6,9.76,22.5,21.43
SNAKE,A FOREIGN EXCHANGE regime developed in 1972 to keep cer- tain European CURRENCIES TRADING within a BAND. The snake was ultim- ately replaced by the more robust and formalized EUROPEAN MONETARY SYSTEM.,palgrave,0,46.78,10.7,0,12.35,11.4,12.82,11,12.65
SNIF,See STANDBY NOTE ISSUANCE FACILITY.,palgrave,0,32.56,10,0,13.08,10.3,13.36,2.5,10
SNIFFER,"An ALGORITHM that is used for PINGING and, ultimately, GAMING of a DARK POOL. Also known as SWEEPER.",palgrave,0,70.8,5.6,0,6.41,4.8,8.47,4.5,8.04
SNOWBALLING,"A market phase where the activation of STOP ORDERS leads to additional upward or downward market movements, which trigger more stop orders, and so forth, until a significant sequence of stops and market moves have occurred. See also GATHER IN THE STOPS.",palgrave,0,58.62,10.3,0,11.31,12.9,9.57,12,11.26
SOCIAL SECURITY,"In the United States, United Kingdom, and certain other countries, a government-run entitlement program providing retirees with retirement INCOME, unemployment income, and/or disability/health benefits.",palgrave,0,-12.11,20.9,0,24.08,25.7,10.75,19,19.6
SOCIEDAD ANONIMA (SA),"In Mexico, Portugal, and certain other countries a CORPORATION that is publicly traded. In all countries minimum CAPITAL requirements must be met in order to qualify.LIABILITY COMPANY.",palgrave,0,23.93,13.3,0,15.01,12.9,10.15,10.75,15.77
SOCIETA PER AZIONI (SpA),"In Italy, a limited share company.",palgrave,0,56.93,6.8,0,5.27,4.3,9.2,4,9.07
SOCIETE ANONYME (SA),"In France, Belgium, Luxembourg, and certain other countries, a CORPORATION that is publicly traded. In all countries min- imum CAPITAL requirements must be met in order to qualify.",palgrave,0,48.81,9.9,0,12.35,11.3,10.53,8.5,11.31
SOES,See SMALL ORDER EXECUTION SYSTEM.,palgrave,0,32.56,10,0,10.76,8.4,10.2,2.5,10
SOFT LOAN,"A LOAN with favorable terms for the BORROWER, including below-market INTEREST RATES, long repayment periods, and a continual deferral or ROLLOVER of PRINCIPAL. A BANK may grant a soft loan in order to win future business, build a client relationship, or achieve some other rela- tionship-driven goal.",palgrave,0,39.16,13.6,0,13.12,15.8,11.19,17.75,17.91
SOFT MARKET,An INSURANCE market cycle where excess SUPPLY of RISK CAPACITY from the insurance sector leads to lower pricing of PREMIUMS. A soft market arises when loss experience of INSURERS has been favorable for a period of time and insurers are willing to write new cover and expand busi- ness; the excess CAPITAL used to cover risks leads to an extremely competitive environment. See also HARD MARKET.,palgrave,0,40.69,13.1,15,11.08,13,10.23,15.33333333,14.86
SOFTS,"A range of perishable COMMODITIES and related DERIVATIVES, originally applied to tropical commodities such as coffee, sugar, and cocoa, but now generally taken to also include GRAINS, cotton, and orange juice.",palgrave,0,14.63,18.9,0,15.5,21.2,10.78,23.5,21.43
SOLVENCY,"A normal state of financial operations for a company functioning as a going concern, where the value of ASSETS exceeds the value of LIABILITIES (i.e., positive EQUITY) and all DEBTS and OBLIGATIONS falling due in the normal course of business are paid on a timely basis. See also IN.",palgrave,0,38.15,14,0,9.87,13.4,10.01,16.25,15.51
SONIA,See STERLING OVERNIGHT INDEX AVERAGE.,palgrave,0,49.48,7.6,0,15.4,12.2,13.36,2.5,10
SOR,See SMART ORDER ROUTER.,palgrave,0,92.8,1.3,0,4.35,4.1,7.78,1,1.6
SORT CODE,A numeric code contained on a CHECK that is used to identify the drawing BANK and the DRAWER’S ACCOUNT.,palgrave,0,69.11,8.3,0,8.36,9.1,8.73,11.5,11.81
SOURCE OF CASH,"A transaction that results in a cash inflow to a com- pany; any source of cash is reflected in the CASH FLOW STATEMENT. Typical sources include NET INCOME, DEPRECIATION, medium- and long-term DEBT issuance, COMMON STOCK and PREFERRED STOCK issuance, decreases in ASSET balances (e.g., ACCOUNTS RECEIVABLE, INVESTMENTS), increases in LIABILITIES (e.g., ACCOUNTS PAYABLE, deferrals). See also USE OF CASH.",palgrave,0,42.72,12.3,13.6,13.63,15.6,12.26,13.33333333,14.67
SOVEREIGN LOAN,"A LOAN made by a BANK, MULTILATERAL DEVELOPMENT BANK, or government authority to another government.",palgrave,0,13.95,15,0,14.2,13.1,7.54,13.5,14
SOVEREIGN RISK,"The RISK of loss arising from an action by a sovereign nation, including DEFAULT, MORATORIUM, EXCHANGE CONTROLS, or cur- rency DEVALUATION. A subcategory of CREDIT RISK. See also CONTINGENT CREDIT RISK, CORRELATED CREDIT RISK, COUNTRY RISK, DIRECT CREDIT RISK, SETTLEMENT RISK, TRADING CREDIT RISK.",palgrave,0,31.17,12.6,12.5,14.03,13.2,10.47,9,12.24
SOVEREIGN WEALTH FUND,"A government-owned INVESTMENT FUND, operated through the CENTRAL BANK or monetary authority, that invests in a range of real and financial ASSETS in a variety of other countries and market- places. Sovereign wealth funds typically apply a medium- to long-term horizon to their investment strategies.",palgrave,0,31.72,14.4,0,14.86,16.5,12.12,16.25,16.11
SpA,See SOCIETA PER AZIONI.,palgrave,0,75.88,3.7,0,4.35,4.1,15.68,2,11.6
SPARK SPREAD,"A SPREAD in the energy market reflecting the price differential between natural gas and electricity; the spread can be traded through a single FUTURE or OPTION contract on certain EXCHANGES. A HEDGER or SPECULATOR can buy the spark spread (e.g., purchase gas and sell electricity) to take advantage of positive MARGINS in generation, and sell thespread (e.g., sell gas and purchase electricity) to profit from negative margins. See also CRACK SPREAD.",palgrave,0,47.42,12.5,14.6,12.83,15.6,9.7,15.83333333,14.55
SPE,See CIAL-PURPOSE ENTITY.,palgrave,0,34.59,9.2,0,13.12,14.6,19.58,1.5,14.53
SPECIAL,"COLLATERAL in the REPURCHASE AGREEMENT mar- ket that is in tight SUPPLY, and which therefore allows a repurchase agree- ment BORROWER to obtain a lower BORROWING rate. See also GENERAL COLLATERAL.",palgrave,0,47.28,10.5,0,12.53,11.5,11.03,11.25,11.36
SPECIAL CROSSING,"In the United Kingdom, a restriction placed on a CHECK that permits the check to be deposited only in the named BANK.",palgrave,0,66.07,9.5,0,7.49,10.1,8.32,13,12.44
SPECIALIST,"An individual or firm on an EXCHANGE that acts as a MARKET MAKER in a particular COMMON STOCK. The specialist manages an auction book of BIDS and OFFERS and attempts to maintain a balanced and orderly market at all times. Under certain exchange rules a specialist can deal forits own account as a proprietary DEALER but must adhere to AFFIRMATIVE OBLIGATION (i.e., taking one side of a TRADE if no offsetting ORDER is avail- able in the market) and NEGATIVE OBLIGATION (i.e., not participating in a trade if an order can be matched).",palgrave,0,48.47,14.2,14.6,9.93,16.4,9.93,19.5,16.7
SPECIE,Coinage issued by a country.,palgrave,0,83.32,2.9,0,4.96,3.7,10.2,1.5,2
SPECIFIC INSURANCE,See SPECIAL RISK INSURANCE.,palgrave,0,50.5,7.2,0,10.15,8.8,15.68,2,11.6
SPECIFIC RISK,See DIVERSIFIABLE RISK.,palgrave,0,9.21,12.7,0,13.12,13,14.31,1.5,14.53
SPECIFIC STOP LOSS INSURANCE,An INSURANCE POLICY that becomes effective when a CLAIM breaches an INSURED’s predefined SELF-INSURANCE threshold.,palgrave,0,22.41,13.9,0,20,17.5,13.85,12.5,16.67
SPECULATION,"A strategy that involves taking a position in an ASSET or market through financial instruments (e.g., STOCK, BONDS) or DERIVATIVES in an attempt to generate PROFITS; resulting gains and losses are not off- set by underlying exposures/positions, as in a HEDGE transaction. See alsoARBITRAGE, SPECULATOR.",palgrave,0,23.26,15.6,0,14.57,16.8,12.82,17.25,20.56
SPECULATIVE RISK,A RISK exposure that yields the possibility of either a PROFIT or a LOSS. See also PURE RISK.,palgrave,0,70.8,5.6,0,4.78,2.9,8.47,4.5,8.04
SPECULATOR,"An individual or firm engaged in SPECULATION in an attempt to generate PROFITS. Speculators are an essential driver of market LIQUIDITY, helping balance or support flows arising from parties that are engaged in HEDGING or ARBITRAGE.",palgrave,0,27.83,13.9,0,13.69,13.3,12.42,12.5,14.98
SPIDER,See STANDARD AND POOR’S DEPOSITORY RECEIPT.,palgrave,0,31.55,10.4,0,14.95,11.4,14.46,3,9.07
SPIN-OFF,See DEMERGER.,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,1,20.8
SPINNING,"An illegal practice where BANKS, INVESTMENT BANKS, or SECURITIES FIRMS UNDERWRITING a NEW ISSUE grant executives of favored corporate clients allocations in an attempt to win future CORPORATE FINANCE business.",palgrave,0,15.65,18.5,0,17.53,21.8,14.07,23,21.33
SPLIT-COUPON BOND,"A BOND that functions as a ZERO COUPON BOND for a prespecified period of time and then converts into a standard COUPON- bearing instrument, paying INTEREST on a regular basis.",palgrave,0,41.03,15,0,10.98,16.5,12.49,20,18.67
SPLIT-OFF,See DEMERGER.,palgrave,0,35.61,8.8,0,1.3,7.8,11.63,1,20.8
SPONSOR,"A BANK that advises a company on an INITIAL PUBLIC OFFERING and arranges all dimensions of the process, including the creation of PROSPECTUS and the nomination of an UNDERWRITING SYNDICATE.",palgrave,0,24.11,17.4,0,13.88,18.7,11.44,23,21.33
SPOO,"The FUTURES CONTRACT on the STANDARD AND POOR’S 500 INDEX, traded via the CHICAGO MERCANTILE EXCHANGE, named after the ticker SPU allocated to one of the quarterly contracts.",palgrave,0,43.06,14.2,0,12.83,17.3,14.05,17,15.49
SPOT,"A transaction in the current, or cash, market. See also  MARKET,  PRICE,  RATE.",palgrave,0,56.42,7,0,5.63,5,6.39,2.75,5.68
SPOT MARKET,"The current, or cash, market for an ASSET, which generally involves SETTLEMENT within 13 days (depending on the underlying asset). Also known as CASH MARKET. See also FORWARD MARKET.",palgrave,0,53.17,8.3,9.7,10.41,8.4,9.02,5.166666667,8.02
SPOT NEXT,The purchase of FOREIGN EXCHANGE for delivery the day after SPOT delivery (which is generally two business days after TRADE date); the delivery price in a spot next deal is adjusted for the extra day. See also TOM NEXT.,palgrave,0,60.14,9.7,0,8.88,10.2,7.44,12.25,10.88
SPOT PRICE,"The price of an ASSET in the current, or cash, market. Also known as CASH PRICE. See also FORWARD PRICE.",palgrave,0,90.05,2.4,3.1,2.96,1.9,5.55,2.333333333,2.68
SPOT RATE,"(1) A FOREIGN EXCHANGE RATE in the current, or cash, market.(2)The theoretical rate on a ZERO COUPON BOND, derived from STRIPPING THE YIELD CURVE. (2) Also known as CASH RATE. (2) See also FORWARD RATE.(1)See also BULL SPREAD, BEAR SPREAD. (2) See also EFFECTIVE SPREAD, QUOTED SPREAD, REALIZED SPREAD.",palgrave,0,38.66,20,0,10.81,27.5,10.58,27.5,22.05
SPREAD RISK,"The RISK of loss due to adverse changes between two refer- ence ASSETS with a common link, such as a risk-free asset and a CREDIT-risky asset pegged to the risk-free asset. A subcategory of MARKET RISK.",palgrave,0,70.13,8,0,8.18,9.4,10.23,8.5,8.31
SPRING LOADING,A form of financial manipulation where the pre- ACQUISITION EARNINGS of a company to be purchased are understated in order to give the acquiring company an earnings boost and the appearance of financial strength following the acquisition.,palgrave,0,17,20.1,0,14.69,22.8,10.17,29.5,21.29
SPV,See SPECIAL-PURPOSE VEHICLE.,palgrave,0,9.21,12.7,0,20.83,20.9,19.58,2.5,14.53
SQUARE,"(1) A RISK position that has been neutralized, i.e., an offset between a LONG POSITION and a SHORT POSITION, or an UNDERLYING ASSET or exposure and its associated HEDGE. (2) The process of neutralizing the risk of a position.",palgrave,0,31.89,18.5,0,9.47,20.6,11.24,28.5,21.75
SQUARE ROOT RULE,"A statistical property used in financial mathematics indicating that the STANDARD DEVIATION of the changes in a market vari- able, such as a STOCK or BOND price, is proportional to the square root of time.",palgrave,0,35.95,16.9,0,10.98,19.1,10.34,24.5,22
SQUEEZE,"A lack of sufficient acceptable ASSETS deliverable into an EXCHANGE-TRADED DERIVATIVE or as cover for a SHORT POSITION, which can lead to price distortions. See also SHORT .",palgrave,0,40.85,10.9,0,12.64,10.8,9.57,10.5,14.29
SREP,See SUPERVISORY REVIEW AND EVALUATION PROCESS.,palgrave,0,6.17,13.9,0,17.85,13.7,11.83,4,15.73
SrL,SOCIETA A RESPONSABILITA LIMITATA.,palgrave,0,-76.41,24.9,0,20.3,17.1,15.68,4,31.6
SRO,See SELF-REGULATORY ORGANIZATION.,palgrave,0,-160,36.3,0,30.52,28.7,14.31,2.5,27.87
SSE,See SHANGHAI STOCK EXCHANGE.,palgrave,0,75.88,3.7,0,11.6,10,7.78,1,1.6
STACK AND ROLL,See ROLLING HEDGE.,palgrave,0,119.19,-2.7,0,3.43,5.2,14.31,0.5,1.2
STAG,See FLIPPER.,palgrave,0,77.91,2.9,0,-1.61,5.5,11.63,0,0.8
STAGFLATION,A phenomenon where INFLATION is increasing while eco- nomic output is stagnant or declining; UNEMPLOYMENT may also be rising at the same time.,palgrave,0,39.67,13.4,0,12.54,14.7,10.96,16.5,17.9
STAGGERED BOARD,"An ANTITAKEOVER DEFENSE tactic where an exter- nal TENDER OFFER for a company automatically triggers a change in the com- pany’s DIRECTOR reelection policy, from annual to staggered (e.g., only a third of directors reelected every year, so that the entire board can only be replaced over a 3-year period). This means a suitor will be unable to engage in a PROXY CONTEST to remove the board and undo POISON PILLS or other defenses within a 1-year time frame.",palgrave,0,31.38,18.7,0,10.17,20.9,11.99,25.25,20.86
STAGS,"Acronym for Sterling Transfer Accruing Government Security, a STRIP SECURITY in the UK GILT sector.",palgrave,0,30.87,12.7,0,14.2,12.8,12.8,11.5,11.33
STAKEHOLDERS,"From a GOVERNANCE perspective, the group of parties that have a legal, financial, and/or social interest in a company and its success, and are impacted directly or indirectly by the actions a company takes. See also DIRECT , INDIRECT .",palgrave,0,35.27,13.1,0,11.43,12.4,10.4,15,16.02
STALKING HORSE,"An INVESTOR that makes an initial BID for a bankrupt company’s ASSETS. Once the stalking horse bid is submitted, other investors can join in the bidding process, but cannot bid below the initial bid.",palgrave,0,71.14,7.6,0,10.03,10.1,9.59,8.5,9.15
STAMP DUTY,"A TAX levied by authorities on specific types of financial trans- actions. The duty may be applied to an ISSUER of SECURITIES in the PRIMARY MARKET, a buyer and/or seller of securities in the SECONDARY MARKET, or a BORROWER of funds through a LOAN or other CREDIT mechanism.",palgrave,0,47.12,12.7,0,9.7,12.8,10.75,16,15.43
STANDARD DEVIATION,"A measure of RISK, variability, or dispersion that indicates the magnitude by which an outcome will differ from the EXPECTED VALUE, or the degree to which an observation deviates from the MEAN of a distribution. It is generally computed via:where xi is an observation, μ is the mean, and N is the number of observations. See also VARIANCE.",palgrave,0,43.43,12,14.6,10.04,11.1,10.04,13.66666667,15.31
STANDARD RATE,"The flat rate of VALUE-ADDED TAX (VAT) that is applied to any good or service in a VAT system unless it is specifically exempt, which varies by country.",palgrave,0,59.98,11.8,0,7.9,13.6,8.97,15,12.63
STANDARDIZED APPROACH,"A method of computing CREDIT RISK expo- sures under PILLAR I of BASLE II, which follows the framework established under the original BASLE ACCORD, where various classes of RISKS are assigned RISK WEIGHTS to determine capital requirements.",palgrave,0,33.92,17.7,0,14.34,22.8,14.43,25.5,21.29
STANDBY AGREEMENT,"(1) An agreement where the UNDERWRITERS of a RIGHTS ISSUE agree to purchase any unsold SHARES after SHAREHOLDERS exercise their PREEMPTIVE RIGHTS, thereby ensuring the company gains the full amount of anticipated proceeds. (2) Agreements between the INTERNATIONAL MONETARY FUND and its member countries that allow themembers to immediately access supplemental funds for emergency purposes.(1) Also known as STANDBY UNDERWRITING.",palgrave,0,-14.81,30.2,0,18.29,37.5,14.77,45,33.33
STANDBY CREDIT,See STANDBY LETTER OF CREDIT.,palgrave,0,66.4,5.2,0,6.12,4.6,10.2,1.5,2
STANDBY LETTER OF CREDIT,"A contingent LETTER OF CREDIT obliga- tion of the issuing BANK that becomes effective only if the drawing customer fails to perform on a specific transaction. If performance does not occur as planned, the bank automatically pays the BENEFICIARY of the letter of credit and then attempts to recover CASH FLOWS from the customer. Also known as STANDBY CREDIT. See also CONFIRMED LETTER OF CREDIT, DIRECT PAY LETTER OF CREDIT, TRANSFERABLE LETTER OF CREDIT, IRREVOCABLE LETTER OF CREDIT.LIABILITY.",palgrave,0,34.76,13.3,13,13,13.5,9.66,12.75,13.95
STANDBY UNDERWRITING,See STANDBY AGREEMENT.,palgrave,0,59.97,5.6,0,11.15,11.5,14.31,0.5,1.2
STANDING ORDER,Authorization granted by an ACCOUNT holder to a BANK to allow for recurring direct DEBITS to be made in payment of a good or service.,palgrave,0,54.56,11.9,0,8.07,11.6,7.4,14.5,13.2
STAPLED STOCK,See PAIRED SHARES.,palgrave,0,119.19,-2.7,0,3.43,5.2,14.31,0.5,1.2
STATEMENT OF CASH FLOWS,"A key FINANCIAL STATEMENT produced by a company that reflects its CASH FLOW position. This statement draws together items from the INCOME STATEMENT and BALANCE SHEET to reveal the nature of the firm’s cash sources and uses, and its net cash position at the end of a reporting period. The basic cash flow statement is generally divided into three segments: OPERATING CASH FLOW, INVESTING CASH FLOW, and FINANCING CASH FLOW, though this can vary somewhat by country,accounting regime, and/or industry sector. The summarized cash flow state- ment takes the following general form:Also known as CASH FLOW STATEMENT.",palgrave,0,46.81,12.8,15.2,12.94,15.7,9.89,16.625,14.67
STATISTICAL ARBITRAGE,A quantitative ARBITRAGE strategy where an INVESTOR or HEDGE FUND manager makes use of mathematical and statistical techniques to analyze certain indicators of individual STOCKS,palgrave,0,3.8,18.9,0,18.51,19.9,13.72,21.5,22.8
STATUTORY ACCOUNTS,ACCOUNTS or FINANCIAL STATEMENTS that must be prepared and submitted as indicated under relevant law statutes.,palgrave,0,38.32,11.9,0,16.53,14.5,12.33,12,16.4
STATUTORY AUDIT,An AUDIT that must be performed on a company or other organization as indicated under relevant law statutes.,palgrave,0,36.28,12.7,0,11.42,11.4,9.79,13,13.87
STATUTORY BOND,"A SURETY BOND that a government authority or REGULATOR may require contractors, businesses, or FIDUCIARIES to post for work performance affecting the public interest. The intent of the statutory bond is to ensure adequate third party financial protection in the event the contract party fails to perform as intended.",palgrave,0,29.69,15.2,0,14.28,16.6,11.94,19.25,20.41
STATUTORY DAMAGES,"DAMAGES awarded to a plaintiff that are limited by some relevant statute. See also LIQUIDATED DAMAGES, UNLIQUIDATED DAMAGES.",palgrave,0,36.96,10.3,0,14.47,11,11.1,5.5,12.49
STATUTORY PROFIT,"In INSURANCE, a measure of an INSURER’s profitabil- ity, typically defined as earned PREMIUMS less total EXPENSES and losses paid.",palgrave,0,34.26,13.5,0,13.75,14.7,13.31,15,18
STATUTORY RESERVE,"A RESERVE that INSURERS are required to maintain to ensure they can withstand potential losses from RISKS they have underwrit- ten and can remain solvent. Methods of computing the minimum amount of the statutory reserve vary, although most are based on loss frequency calculations.",palgrave,0,49.15,11.9,0,13.58,15.1,11.9,15,16.07
STATUTORY TAX RATE,"The legal mandated TAX rate applied to INCOME or sales. In many jurisdictions multiple statutory tax rates are applied to dif- ferent levels of income, while a single statutory tax rate is applied to sales (e.g., a flat sales tax). See also AVERAGE TAX RATE, EFFECTIVE TAX RATE,MARGINAL TAX RATE.",palgrave,0,62.98,8.6,11.9,9.68,10.2,9.52,10.66666667,12.28
STATUTORY VOTING,The conventional corporate method of assigning one SHAREHOLDER vote to each share of COMMON STOCK and requir- ing that each vote be apportioned equally to DIRECTOR nominees. See alsoCUMULATIVE VOTING.,palgrave,0,39.33,11.5,0,14.61,12.9,11.75,11.5,16.67
STEP-DOWN BOND,A BOND (or NOTE) that pays a decreasing COUPON during the life of the SECURITY. The security may be putable by the INVESTOR at predefined dates. See also STEP-UP BOND.,palgrave,0,78.25,4.8,9.7,6.76,5.2,8.87,5.333333333,8
STEP-UP BOND,A BOND (or NOTE) that pays an increasing COUPON if the SECURITY is not called by the ISSUER. The step-up may occur on one or sev- eral predefined dates. See also STEP-DOWN BOND.,palgrave,0,77.23,5.2,8.8,5.61,4.7,9.92,5.5,8.04
STERILIZATION,"Action by a CENTRAL BANK or monetary authority to increase or decrease a nation’s MONEY SUPPLY to offset any changes caused by active intervention in the FOREIGN EXCHANGE markets. If a country has a greater amount of foreign exchange RESERVES as a result of its intervention activities, its money supply will increase and cause the central bank to sell GOVERNMENT BONDS as an offset; if reserves decline and the money supply contracts, the cen- tral bank will purchase government bonds. See also DIRTY FLOAT.",palgrave,0,43.06,14.2,11.9,11.9,16.4,9.72,16.33333333,13.1
STICKINESS,"(1) The tendency for a financial indicator, such as INFLATION and UNEMPLOYMENT, to remain at a particular level, despite a changing market environment. (2) The degree to which DEMAND DEPOSITS placed by retail customers with a BANK remain in situ in the face of a changing environment (e.g., more alternatives, higher fees, lower deposit rates).",palgrave,0,7.19,25.9,0,12.49,30.9,13.54,36.5,27.82
STICKY DEAL,See HUNG DEAL.,palgrave,0,119.19,-2.7,0,-4.29,-1.2,0.15,0.5,1.2
STOCHASTIC PROCESS,A mathematical process used to describe the con- tinuous and dynamic movement of ASSET prices. Certain OPTION pricing mod- els use a stochastic process to generate values. See also MARKOV PROCESS.,palgrave,0,61.02,7.3,10.5,11.34,8.9,12.3,5.833333333,10.57
STOCK,"(1) See COMMON , PREFERRED . (2) In the United Kingdom, a FIXED INTEREST SECURITY. (3) See INVENTORY. (3) See alsoFIRST IN FIRST OUT, LAST IN FIRST OUT.",palgrave,0,45.09,13.4,0,7.55,14.2,11,17,15.02
STOCK CERTIFICATE,A nonnegotiable physical certificate that denotes SHARE ownership in a PUBLIC COMPANY. See also SHARE CERTIFICATE.,palgrave,0,37.98,10,0,15.5,11.7,8.97,6,13.2
STOCK DIVIDEND,"A regular corporate DIVIDEND that is payable to COMMON STOCK SHAREHOLDERS of record in the form of additionalSHARES of stock rather than cash. Also known as ACCUMULATING SHARE, BONUS ISSUE, BONUS SHARE. See also CASH DIVIDEND.",palgrave,0,59.3,8,11.9,11.82,9.6,8.62,7.333333333,11.47
STOCK EXCHANGE,"An EXCHANGE that specializes in TRADING of STOCKS and other EQUITY-related instruments (such as INDEXES, stock- based EXCHANGE-TRADED FUNDS, and OPTIONS). The exchange may oper- ate through physical or electronic mechanisms and is typically regulated by the country’s financial REGULATORS. See also STOCK MARKET.",palgrave,0,31.17,12.6,14.6,16.12,14.7,11.54,11.33333333,16.79
STOCK INDEX,"An INDEX that includes a large number of quoted STOCKS, and which serves as a reference BENCHMARK for a country’s stock market. In many cases stock indexes are directly traded through DERIVATIVES and EXCHANGE-TRADED FUNDS, and can serve as a convenient INVESTMENT and RISK MANAGEMENT tool. Also known as SHARE INDEX.",palgrave,0,54.22,9.9,12.5,12,11.7,10.05,11.16666667,12.29
STOCK LOAN,A form of SECURED LENDING within the class of EQUITY FINANCE where the BORROWER posts SHARES to the LENDER in exchange for cash. A HAIRCUT is typically applied in order to protect against market movements in the price of the shares which might render some portion of the loan unsecured.,palgrave,0,63.02,10.7,0,10.28,13.4,9.61,14.5,13.2
STOCK OPTION,A CALL OPTION or a PUT OPTION with a company’s STOCK as the UNDERLYING reference. Also known as SHARE OPTION.,palgrave,0,61.33,7.2,0,6.76,4.8,7.29,5.5,10
STOCK PICKING,An INVESTMENT strategy where a PORTFOLIO MANAGER selects individual STOCKS based on FUNDAMENTAL ANALYSIS or TECHNICAL ANALYSIS in an attempt to outperform a broad INDEX orBENCHMARK.,palgrave,0,2.79,19.3,0,17.58,19.8,13.43,24,24.25
STOCK PRICE,The quoted value of the STOCK of an issuing company.,palgrave,0,61.33,7.2,0,5.6,3.8,7.29,6,8
STOCK REPURCHASE,See STOCK BUYBACK.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
STOCK SYMBOL,An alphanumeric code comprised of several characters which uniquely identifies a PUBLIC COMPANY for TRADING purposes on anEXCHANGE.,palgrave,0,19.37,15,0,18.85,17.4,12.42,15,16.09
STOP LIMIT ORDER,"An ORDER to buy or sell SECURITIES at a limit price once the stop level is reached, rather than the market price characteristic of a traditional STOP ORDER.",palgrave,0,51.52,13,0,9.35,14.3,7.84,17,15.49
STOP LOSS ORDER,A STOP ORDER to sell a SECURITY at the market once a particular price level is reached. The stop loss does not guarantee a specific EXECUTION price; it simply invokes an order to sell at the stop level.,palgrave,0,60.65,9.5,0,7.43,8.5,7.9,12,12.86
STOP LOSS REINSURANCE,A REINSURANCE CONTRACT that protects the CEDING INSURER against an aggregate amount of CLAIMS in excess of a spe- cified percentage of earned PREMIUMS; stop loss reinsurance effectively pro- tects the insurer against the possibility that the sum of individual losses from the INSURANCE it has UNDERWRITTEN will be greater than expected. In most instances the REINSURER is only liable up to a defined percentage of the losses or a maximum value amount.,palgrave,0,25.97,18.7,0,13.01,21.3,11.5,26.25,21.72
STOP OUT PRICE,The lowest price at which GOVERNMENT BILLS are sold in an AUCTION MARKET process.,palgrave,0,74.19,6.4,0,9.91,8.5,8.84,7,5.6
STOPPED OUT,A situation when the market price of a given SECURITY or ASSET moves below a particular level and triggers a STOP LOSS ORDER.,palgrave,0,39.67,13.4,0,8.71,11.2,8.9,14.5,14.42
STORY PAPER,A SECURITY with unusual characteristics that requires detailed explanations or disclosure in order to attract INVESTORS. Story paper must occasionally be sold at a higher YIELD (or a larger price DISCOUNT) than comparable “conventional” securities as a result of its unique or complex qualities.Payoff profile of long straddle positionPayoff profile of short straddleSee also STRANGLE.,palgrave,0,9.72,18.7,0,17.41,20.7,12.75,19.75,19.73
STRAIGHT BOND,"(1) A NONCALLABLE BOND. (2) In the EUROMARKETS, a bond with a FIXED RATE COUPON. (3) A GILT with a BULLET repayment.",palgrave,0,74.53,8.3,0,5.11,9.9,11.9,13,12.44
STRAIGHT-LINE DEPRECIATION,A DEPRECIATION mechanism that applies equal reductions in value to a depreciable ASSET based on the expected life of the asset. Straight-line methods are commonly applied to FIXED ASSETS that are not expected to become obsolete before the end of their economically useful lives. See also ACCELERATED DEPRECIATION.Payoff profile of long stranglePayoff profile of short strangle,palgrave,0,27.11,14.1,14.6,15.55,14.9,10.2,13.33333333,14.62
STRAP,"An OPTION SPREAD designed to take advantage of VOLATILITY. A LONG strap, which is created through a long PUT OPTION and two long CALLOPTIONS with the same STRIKE PRICE, is characterized by unlimited profit potential and limited downside RISK; the short strap, simply a short put and two short calls with identical strikes, has limited profit potential and unlim- ited downside risk. See also STRIP.",palgrave,0,57.91,10.6,14.1,11.72,13.6,9.57,14.5,14.22
STRATEGIC ASSET ALLOCATION,"One of two phases in the ASSET ALLOCATION process, where an INVESTOR or INVESTMENT MANAGER develops a weighting of asset classes for the PORTFOLIO that is intended to be preserved over a long-term horizon. By doing so, the manager is effectively defining a BENCHMARK. See also TACTICAL ASSET ALLOCATION.",palgrave,0,46.47,10.8,13.6,11.89,11.2,10.25,11.5,12.23
STREET,[See WALL .,palgrave,0,77.91,2.9,0,-10.31,0.8,0.1,0.5,0.8
STREET NAME,"Client-owned SECURITIES that are registered to a BANK, BROKER/DEALER, or third party NOMINEE rather than the client. Securities held in street name eliminate the need to physically deliver secur- ities to the client.",palgrave,0,46.27,10.9,0,13.51,13.1,10.2,12.25,13.87
STRESS TESTING,See SCENARIO ANALYSIS.,palgrave,0,34.59,9.2,0,11.15,11.5,14.31,1.5,14.53
STRICT LIABILITY,"A LIABILITY motion requiring that the plaintiff need only prove harm in a specific manner in order to collect damages and need not demonstrate the methods, motivations, or intent leading to the damage.",palgrave,0,29.52,17.3,0,12.49,19.2,11.49,20.5,18.05
STRIKE,See  PRICE.,palgrave,0,77.91,2.9,0,-7.41,0.8,0.1,0,0.8
STRIKE PRICE,"The agreed price, rate, or level at which an OPTION begins creating value for the buyer and a LIABILITY for the seller. When the market price exceeds the strike price for a CALL OPTION, or falls below the strike for a PUT OPTION, INTRINSIC VALUE is created. Also known as EXERCISE PRICE, STRIKE, STRIKING PRICE.",palgrave,0,61.36,9.2,10.5,8.88,9.7,8.56,10.83333333,10.96
STRIKING PRICE,See STRIKE PRICE.,palgrave,0,119.19,-2.7,0,1.52,3.6,9.05,0.5,1.2
STRIP HEDGE,A HEDGE based on the use of sequential OVER-THE- COUNTER or EXCHANGE-traded CONTRACTS that match or approximate future CASH FLOWS associated with the underlying RISK being hedged. A successful strip hedge can eliminate DIRECTIONAL RISK and CURVE RISK. See also ROLLING HEDGE.,palgrave,0,57.27,8.8,12.5,13.62,11.8,10.35,8.666666667,12.27
STRIPPING,"The process of separating a BOND’s CORPUS and INTEREST COUPONS so that they can be traded separately. Stripping is done by gov- ernment agencies and FINANCIAL INSTITUTIONS, often by creating separate TRUST vehicles that hold the original SECURITIES and issue new, decomposed securities. See also RECONSTITUTION.",palgrave,0,30.57,12.8,15,14.9,13.5,11.6,12,15.69
STRIPS,"Acronym for Separate Trading of Registered Interest and Principal Securities, a STRIP SECURITY in the US marketplace",palgrave,0,11.92,15.8,0,16.18,14.8,11.91,15.5,20.92
STRONG HANDS,A holder of an EXCHANGE-TRADED DERIVATIVE that expects to receive the UNDERLYING ASSET at EXPIRY or EXERCISE. See also WEAK HANDS,palgrave,0,43.9,9.7,0,10.82,8.3,10.17,6.25,9.91
STRUCTURAL MODEL,"A form of CREDIT DEFAULT MODEL that defines the PROBABILITY of COUNTERPARTY DEFAULT in terms of a firm’s ASSETS, LIABILITIES, and CAPITAL structure. Default occurs when a boundary value, such as a liability or negative NET WORTH threshold, is reached. See alsoINTENSITY MODEL.",palgrave,0,31.58,12.4,11.9,12.75,11.4,10.96,8.5,11.3
STRUCTURED FINANCE,"The general category of financing and RISK MANAGEMENT solutions offered by BANKS to institutional clients seeking to achieve specific results that cannot be readily met with standard financial products. Structured finance can involve combinations of LOANS, BONDS, and DERIVATIVES, as well as SECURITIZATION techniques and off-balancesheet vehicles, to achieve goals of RISK TRANSFER, liquidity management, and/or funding. See also ASSET-BACKED SECURITY, COLLATERALIZED DEBT OBLIGATION, FINANCIAL ENGINEERING.",palgrave,0,6.84,17.8,18.6,20.42,21.2,14.06,18.33333333,19.1
STUB,(1) The NEARBY FUTURES CONTRACT on EURODOLLARS. (2) A SHORT COUPON on a NOTE or a BOND.,palgrave,0,79.6,6.4,0,4.58,6.8,10.98,8.5,9.15
STUCK DEAL,See HUNG DEAL,palgrave,0,119.19,-2.7,0,-4.29,-2.7,0.15,0.5,1.2
STYLE DRIFT,"A phenomenon when a HEDGE FUND or INVESTMENT COMPANY deviates from its original INVESTMENT focus and expertise in an attempt to find new opportunities to deploy CAPITAL. Style drift can intro- duce additional RISK into a fund, as managers may lack the requisite base of knowledge needed to effectively manage the ASSETS.",palgrave,0,28.17,15.8,0,12.6,15.9,12.21,19,17.32
SUBINVESTMENT GRADE,"A CREDIT RATING designation applied to any ISSUER of SECURITIES that is rated below BBB- by Standard and Poor’s or Baa3 by Moody’s Investors Services. Subinvestment-grade credits have weaker finan- cial profiles than INVESTMENT GRADE credits, and thus a greater likelihood of encountering FINANCIAL DISTRESS leading to DEFAULT.SUBORDINATED PERPETUAL DEBT.",palgrave,0,20.72,16.6,0,17.7,19.9,14.98,17,17.2
SUBORDINATED PERPETUAL DEBT,A COUPON-bearing BOND that has no PRINCIPAL REDEMPTION feature and ranks junior to all other DEBT CLAIMS.The bond functions as permanent FINANCING or quasi-EQUITY (although it ranks senior to COMMON STOCK). See also SUBORDINATED DEBT.ABSOLUTE PRIORITY RULE.,palgrave,0,35.78,12.9,0,16.13,15.9,13.09,13.75,16.05
SUBPRIME LOAN,"A LOAN granted to a weak individual or corporate BORROWER, including one that may have had a history of prior loan delin- quency or DEFAULT. Subprime loans, which are generally secured against a spe- cific ASSET (e.g., a residence, commercial property), typically have much lower LOAN-TO-VALUE ratios than conventional loans in order to protect the lender in the event of default. Also known as B & C LOAN, NONPRIME LOAN.",palgrave,0,39.67,13.4,14.6,11.09,14.1,11.64,15.66666667,15
SUBPRIME MORTGAGE,"A residential MORTGAGE that is granted to a BORROWER that has a relatively weak CREDIT standing, including borrowers that may have previously DEFAULTED on other DEBT obligations. Subprime mortgages may be characterized by higher rates to compensate for poorer credit quality.",palgrave,0,25.29,14.8,0,15.55,15.8,12.74,15.75,18.93
SUBROGATION,"(1) The transfer of rights of loss recovery from the INSURED to the INSURER, allowing the insurer to seek its own restitution. The insured, whose rights are transferred, is known as the subrosor; the insurer accepting the subrogated rights is known as the subrosee. (2) The right to substitute one CREDIT for another in settling a CLAIM or transferring ownership.",palgrave,0,41.03,15,0,11.62,17.4,10.39,21,18
SUBSCRIBER,A party to an initial SUBSCRIPTION of SHARES.,palgrave,0,71.82,5.2,0,7.21,4.9,9.95,4,8.2
SUBSCRIPTION,"An offer to purchase SECURITIES, exercisable for a specific period of time.",palgrave,0,25.46,12.7,0,11.82,9.7,10.81,9,18.13
SUBSCRIPTION AGREEMENT,"An agreement between the LEAD MANAGER, SYNDICATE members, and an ISSUER to offer SECURITIES at the issue price less an agreed SELLING CONCESSION. The agreement delineates instances where the transaction can be cancelled (through FORCE MAJEURE) and con- tains details related to TAXES, expenses, listing fees, COMMISSIONS, and STAMP DUTIES. A form of the subscription agreement is often included in the final PROSPECTUS. See also SYNDICATE AGREEMENT.",palgrave,0,45.96,11,13,14.44,13.9,11.3,11.375,12.69
SUBSCRIPTION WARRANT,"A WARRANT granted to existing SHAREHOLDERS of a company’s COMMON STOCK, giving them the RIGHT to purchase SHARES of an ADD-ON issue, generally in an amount proportional to their current shareholdings, at a price that is below the current market. Subscription warrants may be issued when PREEMPTIVE RIGHTS do not exist. See also RIGHTS ISSUE.",palgrave,0,52.9,10.4,12.5,12.24,12.3,10,11.83333333,13.14
SUBSIDIARY,"A subholding of a PARENT company or HOLDING COMPANY, which may be engaged in a specific line of business operations and operate partly or totally apart from the rest of the organization. A subsidiary may have significant operations and resources in its own right, or may have to rely on the standing of its parent or holding company to secure its LIABILITIES.",palgrave,0,31.55,16.6,0,10.8,16.7,8.99,21.5,17.56
SUBSIDY,A form of financial assistance provided by a government authority in support of a specific venture or to cover a deficit resulting from the sale of goods or services at less than cost.,palgrave,0,37.98,16.2,0,9.88,16.8,10.06,23.5,20.47
SUCKER’S RALLY,See DEAD CAT BOUNCE.,palgrave,0,118.18,-2.3,0,0,0.6,0.2,1,1.6
SUITABILITY RISK,"The RISK of loss arising from clients claiming financial injury on transactions with characteristics that might be regarded as “unsuit- able” (i.e., too speculative, risky, or leveraged, insufficient disclosure, ineffect- ive HEDGE). See also ULTRA VIRES.",palgrave,0,36.28,12.7,0,15.77,16.3,13.74,13,16.09
SUKUK,"A rent certificate or BOND alternative used in ISLAMIC FINANCE which adheres to restrictions related to RIBA and GHARAR. See alsoIJARA, MURABAHA, SALAM.",palgrave,0,51.34,9,0,13.32,10.9,13.13,7.75,15.03
SUNK COST,An EXPENSE of a company that can never be recovered once incurred. It can be considered as an avoidable FIXED COST that must be ana- lyzed in the context of OPPORTUNITY COST.,palgrave,0,63.7,8.4,0,7.83,7.6,9.36,9,10.15
SUNSHINE TRADE,"A large ORDER in a SECURITY that is made public before EXECUTION, in order to increase transparency and reduce any poten- tial for confusion.",palgrave,0,38.66,13.8,0,10.8,13.7,10.09,16,16.27
SUPER SENIOR,"The top-rated TRANCHE of a SECURITIZATION, so named as it does not suffer any losses until all other tranches in a structure have absorbed pool losses, including those of the AAA-rated tranche. In this regard it is often known as a SUPER AAA.",palgrave,0,58.11,10.5,0,8.88,11.2,9.11,11.75,10.46
SUPERANNUATION,"In the United Kingdom, a retirement PENSION FUND that is financed through employee deductions.",palgrave,0,48.81,9.9,0,14.84,12.8,11.1,9,14.17
SUPERCYCLE,See KONDRATIEFF WAVE.,palgrave,0,59.97,5.6,0,9.23,9.9,9.05,1.5,14.53
SUPERMAJORITY VOTE,"An ANTITAKEOVER DEFENSE requiring a super- majority, rather than just simple majority, vote by SHAREHOLDERS on a pro- posed CORPORATE FINANCE or corporate control action.",palgrave,0,20.72,16.6,0,15.73,18.6,11.82,19.5,18
SUPERSINKER,A TRANCHE of a MORTGAGE-BACKED SECURITY or COLLATERALIZED MORTGAGE OBLIGATION with an average life that isshorter than other tranches in the series. The tranche is retired at an acceler- ated rate through early PREPAYMENTS.,palgrave,0,37.3,12.3,0,14.15,13.4,10.98,12.5,15.04
SUPPLY,"The amount of a good or service that an individual or institution will be willing to provide at a given price. In general, supply increases with price. See also DEMAND, ELASTICITY.",palgrave,0,52.56,8.5,10.5,8.38,6.5,7.71,5.833333333,9.28
SUPPORT BOND,See COMPANION BOND.,palgrave,0,59.97,5.6,0,5.35,6.8,14.31,1.5,14.53
SUPPORT LEVEL,"A TECHNICAL ANALYSIS chart reflecting a SECURITY or INDEX price level that withstands repeated bouts of selling pressure. If the price breaches the support level after several repeated attempts, further down- ward moves may follow (as in a BREAKOUT). See also RESISTANCE LEVEL.",palgrave,0,48.5,10,12.5,12.87,11.5,10.59,8.833333333,11.3
SURETY,(1) A GUARANTEE of CONTRACT fulfillment. (2) The party respon- sible for performing under a  BOND should the original contract party DEFAULT on its obligations.PERFORMANCE BOND.,palgrave,0,28.17,15.8,0,14.92,18.9,12.82,18,19.63
SURPLUS LINES INSURANCE,INSURANCE cover that cannot be obtained from an ADMITTED INSURER and which must therefore be provided by a NONADMITTED INSURER. Also known as EXCESS .,palgrave,0,42.38,10.3,0,11.82,9.3,9.5,8.25,13.13
SURPLUS NOTES,"SUBORDINATED DEBT that functions in a manner simi- lar to CONTINGENT , except that SECURITIES are issued directly by the company rather than through a TRUST. Surplus notes haveMATURITIES ranging from 10 to 30 years, and must generally be approved byINSURANCE REGULATORS.",palgrave,0,33.75,13.6,0,14.39,15.1,12.74,15,16
SURPLUS SHARE,"In REINSURANCE, a PROPORTIONAL AGREEMENT where the REINSURER agrees to accept RISK on a variable percentage basis above the INSURER’s DEDUCTIBLE, up to a defined maximum; the amount the CEDING INSURER retains is referred to as a LINE and is expressed in monetary terms. See also QUOTA SHARE.",palgrave,0,47.12,12.7,0,11.9,14.5,11.74,16,16.27
SURRENDER VALUE,"The amount of SAVINGS accumulated in a whole life INSURANCE POLICY, UNIT-LINKED POLICY, or similar vehicle, generated through the payment and INVESTMENT of periodic PREMIUMS, and payable to the INSURED upon termination of the policy. The amount of the surrender value depends on the performance of the specific INVESTMENTS underlying the policy. Also known as CASH .",palgrave,0,27.11,14.1,17.1,13.98,14,10.2,15.5,18.19
SUSPENSE ACCOUNT,"An ACCOUNT that is used to record balances related to unresolved errors or incomplete transactions that are awaiting finalization.COMPLEX SWAP, DISCOUNT SWAP, NONPAR SWAP, PREMIUM SWAP, PURE CATASTROPHE SWAP.",palgrave,0,25.12,17,0,18.11,22.3,12.7,21.5,21.26
SWAPTION,"An OVER-THE-COUNTER OPTION on a SWAP, available in the form of a RECEIVER  and a PAYER . The purchaser of a swaption has the RIGHT, but not the obligation, to enter into an underlying swap transaction at a predetermined rate at a future time.",palgrave,0,49.65,11.7,0,8.47,11,9.11,14.5,14.18
SWAPTION ARBITRAGE,A common ARBITRAGE technique that seeks to exploit differences between the IMPLIED VOLATILITY of SWAPTIONS andCAPS/FLOORS.,palgrave,0,29.86,13.1,0,20.47,18.1,15.29,12,13.9
SWEEP,"A service provided by certain BANKS to their customers, which takes excess cash balances out of deposit accounts and reinvests them in overnight funds, thereby generating a YIELD.Also know as END OF DAY SWEEP.",palgrave,0,45.43,15.4,0,12.66,20,10.9,20,15.95
SWEEP-TO-FILL ORDER,"A MARKET ORDER which is divided into several individual orders to capture the best available price at that point in time, in order to ensure fast EXECUTION. The order gives greater weight to speed of execution than price. See also INTERMARKET SWEEP ORDER.",palgrave,0,48.5,10,11.2,10.32,9,8.39,8.166666667,9.44
SWEEPER,See SNIFFER.,palgrave,0,77.91,2.9,0,-1.61,5.5,11.63,0,0.8
SWEETENER,See KICKER.,palgrave,0,77.91,2.9,0,-4.51,3.1,11.63,0,0.8
SWF,See SOVEREIGN WEALTH FUND.,palgrave,0,75.88,3.7,0,8.7,7.7,11.73,2,11.6
SWING LOAN,See BRIDGE LOAN.,palgrave,0,119.19,-2.7,0,-0.46,2.1,0.15,0.5,1.2
SWING TRADING,A TRADING strategy based on buying and selling SECURITIES for short periods of time (often intra-day) in order to take advan- tage of perceived overreactions. Swing trading is essentially a form of very short-term MOMENTUM TRADING. See also POSITION TRADING.,palgrave,0,41.06,10.8,12.5,12.46,11,10.22,8.333333333,12.32
SWISSIE,The Swiss Franc.,palgrave,0,119.19,-2.7,0,-0.46,2.1,14.31,0.5,1.2
SWITCH TRADE,(1) A transaction that involves replacing one INVESTMENT with a different investment. (2) A process where an importer that is unable to make payment on goods purchased is permitted by the exporter to transfer the OBLIGATION to a second importer.,palgrave,0,30.88,18.9,0,12.31,22.8,11.15,27,21
SYMMETRIC PAYOFF,"A PAYOFF PROFILE on a DERIVATIVE where the gain or loss is the same for given market price changes; the gain or loss may be linear or nonlinear. A FUTURE and a FORWARD are characterized by symmetric profiles, gaining or losing equally for a range of market prices. See also A, LINEAR PAYOFF, NONLINEAR PAYOFF.",palgrave,0,61.36,9.2,10.5,8.88,9.6,8.85,10.83333333,10.23
SYNDICATE,"(1) A group of FINANCIAL INSTITUTIONS that UNDERWRITES a NEW ISSUE of SECURITIES, typically by purchasing them at a DISCOUNT from the ISSUER and reselling them to INVESTORS at a fixed price in the PRIMARY MARKET. In some cases the syndicate will act as AGENT, placing securities through a BEST EFFORTS UNDERWRITING. (2) The process of sellingor distributing securities or LOANS. (3) A group of INSURERS or REINSURERS that agree to jointly underwrite a RISK exposure. (1) Also known as PURCHASE GROUP, SELLING GROUP, UNDERWRITING GROUP. (2) See also SYNDICATION. (3) See also POOL.",palgrave,0,23.77,21.6,0,12.26,26.5,11.85,32.5,25.18
SYNDICATED LOAN,"A LOAN granted by a banking group to a corpor- ate BORROWER and then sold to smaller banks and hold-to-MATURITY INSTITUTIONAL INVESTORS. A syndicated loan is distinct from a PARTICIPATION LOAN, as the funding banks are known to the borrower. A syndicated loan can be structured as a REVOLVING CREDIT FACILITY, TERM LOAN, LETTER OF CREDIT facility, or ACQUISITION LINE. The syndicated loan is structured and managed by the ARRANGER.",palgrave,0,45.25,11.3,13,11.48,11.7,9.02,11.75,11.57
SYNDICATION,"A process where a SYNDICATE UNDERWRITING a NEW ISSUE or a BANK arranging a LOAN sells portions of the OBLIGATION to other financial intermediaries. Syndication is a common means of distributing PRIMARY or SECONDARY OFFERINGS, and is used to supplement direct sales to INVESTORS.",palgrave,0,32.22,14.2,0,13.29,14.7,11.55,16.5,18.8
SYNERGY,"The potential value that can be created by combining two firms, as in a MERGER or ACQUISITION. Synergies may be financial (e.g., increased DEBT capacity, TAX benefits, higher payback on CAPITAL INVESTMENTS) and/or operating (e.g., ECONOMIES OF SCALE, pricing power, market or geo- graphic expansion) in nature.",palgrave,0,30.7,14.8,0,13.23,16.8,13.2,17.75,18.76
SYNTHETIC CATASTROPHE BOND,"An OPTION on a CATASTROPHE BOND that permits, but does not obligate, the ISSUER to launch a bond transaction if needed in order to HEDGE or transfer RISK exposures.COLLATERALIZED DEBT OBLIGATION (CDO) that is created on an unfundedCASH COLLATERALIZED DEBT OBLIGATION.",palgrave,0,12.94,21.6,0,14.87,25.2,12.99,29.5,24.2
SYNTHETIC CONVERTIBLE BOND,"A SECURITY package issued by a company or FINANCIAL INSTITUTION that comprises of discounted SUB- ORDINATED DEBT and EQUITY WARRANTS, resulting in the same RISK and RETURN characteristics of a conventional CONVERTIBLE BOND. The individual components of the package can be decomposed and traded separately.",palgrave,0,14.8,16.8,0,16.13,17.1,12.47,19.25,22.33
SYNTHETIC CREDIT FACILITY,"See SYNTHETIC LENDING FACILITY.INVESTMENT CONTRACT, NONPARTICIPATING GUARANTEED INVESTMENT CONTRACT.",palgrave,0,-73.03,25.7,0,38.31,31.2,16.36,8.5,25.82
SYNTHETIC LENDING FACILITY,"A FORWARD commitment to purchase REVOLVING CREDIT AGREEMENTS or undrawn LOANS. The facility allows an INVESTOR to participate in an unfunded revolver or loan, receiving a COMMITMENT FEE while the facility remains undrawn, and requiring it to provide funding in the event the BORROWER elects to draw down. This is equivalent to the investor selling a PUT OPTION to the INTERMEDIARY on a REVOLVING CREDIT LINE or NOTE underwriting program arranged for a third party borrower. Also known as ASSET SWAPTION, SYNTHETIC CREDIT FACILITY.",palgrave,0,33.24,13.8,14.9,13.11,14.1,10.69,14.75,14.11
SYNTHETIC LONG POSITION,A combination of a LONG CALL OPTION and a SHORT PUT OPTION with identical STRIKE PRICES that replicates the economics of a LONG POSITION. See also SYNTHETIC SHORT POSITION.,palgrave,0,56.76,8.9,0,10.55,9.2,9.26,10.25,12.7
SYNTHETIC OPTION,An OPTION position created through the combin- ation of a LONG or SHORT option on an UNDERLYING SECURITY or ASSET and a long or short position in the same underlying security/asset.,palgrave,0,31.55,16.6,0,10.98,17,9.25,22.5,17.56
SYNTHETIC PRIME BROKERAGE,A service offered by certain PRIME BROKERS to institutional clients that makes use of TOTAL RETURN SWAPS to synthetically reproduce a desired PORTFOLIO.,palgrave,0,31.21,14.6,0,15.55,16.7,13.02,15.5,16.16
SYNTHETIC SHORT POSITION,A combination of a LONG PUT OPTION and a SHORT CALL OPTION with identical STRIKE PRICES that replicates the economics of a SHORT POSITION. See also SYNTHETIC LONG POSITION.,palgrave,0,56.76,8.9,0,10.55,9.2,9.26,10.25,12.7
SYNTHETIC UNDERLYING,"An ASSET position created through the combin- ation of two LONG or SHORT OPTIONS on the same UNDERLYING SECURITY or ASSET.See also SYNTHETIC LONG POSITION, SYNTHETIC SHORT POSITION.",palgrave,0,17.68,17.8,0,14.1,18.5,10.1,23,18.34
SYSTEMATIC RISK,See NONDIVERSIFIABLE RISK.,palgrave,0,-24.64,17.4,0,18.92,17.8,14.31,1.5,14.53
SYSTEMIC RISK,RISKS that are imposed on an entire financial system and which have the possibility of creating significant financial damage.,palgrave,0,26.81,14.2,0,15.08,14.6,11.23,14.5,16.02
TAC BOND,See TARGETED AMORTIZATION CLASS BOND.,palgrave,0,32.56,10,0,15.4,12.2,13.36,3.5,18
TAG ALONG RIGHTS,"Legal RIGHTS designed to protect MINORITY INTERESTS in the event of a TAKEOVER bid. If a bid occurs and majority SHAREHOLDERS tender their SHARES, then MINORITY INTEREST holders have the right to join on the same terms. Tag along rights must be specifically negoti- ated in a CORPORATE FINANCE transaction. See also DRAG ALONG RIGHTS.",palgrave,0,57.47,8.7,11.7,11.01,9.4,10.35,8.125,11.34
TAIL COVERAGE,"INSURANCE coverage that extends beyond the end of the standard policy. Tail coverage is useful in the case of a CLAIMS MADE BASIS policy, which only provides restitution for claims received during the policyperiod.",palgrave,0,37.3,12.3,0,12.82,12.1,10.05,12,12.68
TAILGATING,"A practice where a BROKER replicates a client’s TRADEin a proprietary account. Although tailgating is not strictly illegal (as is FRONTRUNNING), it can be regarded as unethical. See also COAT-TAILING.",palgrave,0,44.41,9.6,11.9,12.97,10.4,11.5,6.333333333,12
TAILING A HEDGE,A process where an EXCHANGE-TRADED DERIVATIVEHEDGE is DISCOUNTED using a PRESENT VALUE FACTOR in order to takeaccount of the fact that exchange-traded positions are MARKED-TO-MARKETand settled every day.,palgrave,0,26.14,16.6,0,18.45,22.2,11.23,20,16.91
TAKE-OUT,"The replacement of one form of FINANCING with another one,often associated with the replacement of a temporary BRIDGE LOAN with along-term BOND or LOAN.",palgrave,0,47.12,12.7,0,13.47,15.9,8.12,18,16.27
TAKE THE OFFER,A buyer’s willingness to accept the seller’s price on a transaction. Also known as LIFT THE OFFER. See also HIT THE BID.,palgrave,0,72.53,5,7.8,5.34,3.4,6.87,3.333333333,6.56
TAKEDOWN,(1) An advance or drawing of funds by a BORROWER under a REVOLVING CREDIT FACILITY. (2) The amount of a NEW ISSUE of SECURITIES a SYNDICATE member agrees to purchase and resell to clients.,palgrave,0,36.97,16.6,0,8.72,17,12.29,22,19.48
TAKEOVER,"A CORPORATE FINANCE transaction where one company offers to acquire another company in order to expand its client, product, or market scope, or achieve some other strategic goal. The transaction may be structured as a FRIENDLY  or HOSTILE , and may be based on an all-cash offer, or a mix of cash and the acquiring com- pany’s SHARES. Hostile takeover attempts may be delayed or thwarted through ANTI DEFENSES and ANTI LAWS. See alsoTAKEOVER BID.",palgrave,0,52.7,10.5,11.7,10.91,11.4,10.1,11.625,10.1
TAKEOVER BID,"The price an acquiring company is willing to pay for a TARGET company. The bid value is generally represented as a particular PREMIUM to the target’s share price. See also ANY-AND-ALL BID, TAKEOVER, TWO-TIER BID.",palgrave,0,51.14,9,11.9,9.72,8.4,8.28,7.166666667,10.39
TAKEOVER VALUE,See BREAKUP VALUE.,palgrave,0,93.81,0.9,0,3.43,5.2,9.05,0.5,1.2
TAKING DELIVERY,The process where the buyer of an EXCHANGE-TRADED DERIVATIVE submits a notice to accept delivery of any physical ASSET under- lying the CONTRACT.,palgrave,0,31.21,14.6,0,13.29,15.3,10.96,15.5,14.42
TAP ISSUE,"In the United Kingdom, an issue of GOVERNMENT BILLS sold directly to governmental entities without using GILT-EDGED MARKET MAKERS.",palgrave,0,26.81,14.2,0,16.01,15.8,12.06,13.5,13.92
TAPE,"The listing of STOCK prices on an EXCHANGE, reflecting updates as new BIDS and OFFERS are executed.",palgrave,0,62.68,8.7,0,10.03,10.1,10.98,10.5,11.51
TARGET,"A company that is the subject of an ACQUISITION offer from an ACQUIRER. See also ACQUISITION, BLACK KNIGHT, GRAY KNIGHT, HOSTILE TAKEOVER, WHITE KNIGHT.",palgrave,0,59.3,8,0,11.59,9.9,7.52,7,8.13
TARIFF,A TAX that is levied on goods that are imported into a country.,palgrave,0,83.66,4.8,0,4.16,3.5,6.71,6.5,8.28
TAX,"An amount of MONEY that is levied by a government as a means of generating public REVENUES. Taxes may be applied to INCOME (includingwages, earnings, DIVIDENDS, INTEREST, CAPITAL GAINS), real estate and property, estates/inheritance, and goods and services (excise, AD VALOREM). See also PROGRESSIVE TAX, PROPORTIONAL TAX, REGRESSIVE TAX.",palgrave,0,38.01,12,14.1,14.61,14.6,11.21,11.83333333,13.87
TAX AVOIDANCE,"The process of seeking to minimize TAX paid to a gov- ernment authority through legal and legitimate use of the tax code and any LOOPHOLES. See also TAX EVASION, TAX SHELTER",palgrave,0,64.2,8.2,0,8.64,8,10.52,8.25,10.07
TAX BURDEN,"The amount of TAX that an individual or organization pays after taking advantage of all relevant deductibility, CREDIT, and avoidance measures. See also TAX INCIDENCE.",palgrave,0,33.41,11.7,0,14.08,11.8,10.57,8.25,14.6
TAX CARRYBACK,"A TAX benefit generated by applying eligible losses to a current tax LIABILITY. In the United States, capital or operating losses can be offset against profits for the 3 prior years. Also known as CARRYBACK LOSS. See also TAX CARRYFORWARD, TAX UMBRELLA.",palgrave,0,43.9,9.7,12.2,9.66,7.6,9.8,6.75,11.82
TAX CARRYFORWARD,"A TAX benefit generated by applying eligible losses to a future tax LIABILITY. In the United States, losses can be carried forward to offset future profits for 5 years (capital losses) and 15 years (operating losses). Also known as CARRYFORWARD LOSS. See also TAX CARRYBACK, TAX UMBRELLA.",palgrave,0,42.58,10.3,12.2,10.19,8.7,9.6,7.375,11.53
TAX CREDIT,"(1) A CREDIT, or benefit, granted to a person or organization paying TAXES which results in an effective reduction in the tax LIABILITY. A tax credit can be created by taking advantage of certain government incentives.(2) A credit toward interim tax payments made on amounts due in the future.",palgrave,0,29.69,15.2,0,10.97,14.4,10.97,17.25,17.15
TAX DEDUCTIBILITY,A transaction or event that permits a person or organ- ization paying TAXES to reduce taxes payable by reducing INCOME before applying the relevant tax rate.,palgrave,0,36.63,14.6,0,12.02,15.5,11.61,17,16.55
TAX EVASION,"The process of seeking to minimize TAX paid to a govern- ment authority through illegal means, such as underreporting of INCOME or failing to disclose offshore ASSETS. See also TAX AVOIDANCE.",palgrave,0,55.74,9.3,0,11.77,10.8,10.52,8.75,11.36
TAX HAVEN,"A jurisdiction that features a lower TAX rate, or even tax-free, environment as a way of fostering business and CAPITAL formation. In order to qualify for the tax benefits of such a haven, a person or organization must typically fulfill minimum residence or business requirements. Popular tax havens include the Cayman Islands, Bahamas, Liechtenstein, Monaco, and the Netherlands Antilles.",palgrave,0,34.56,13.3,15.5,14.16,14.8,11.3,14.5,16.69
TAX INCIDENCE,"The party that ultimately bears the impact of TAXES, which may or may not be the person or organization nominally paying taxes. If the TAX BURDEN can be shifted to third parties through price increases on taxable goods and services, the tax incidence is indirectly spread out.",palgrave,0,47.62,12.5,0,10.91,13.4,9.84,14.75,14.51
TAX LOSS,A loss made in one period that can be used to offset previous or future INCOME via TAX CARRYBACK or TAX CARRYFORWARD provisions.,palgrave,0,48.13,12.3,0,9.52,11.8,10.27,16.5,17.9
TAX SHELTER,A legal business or INVESTMENT scheme or transaction that is intended to reduce a person’s or organization’s TAX LIABILITY. See also TAX AVOIDANCE.,palgrave,0,34.42,11.3,0,12.57,9.9,11.07,7.75,15.03
TAX SHIELD,"A TAX benefit generated through INTEREST deductibility on LOANS, BONDS, and other DEBT funding instruments (i.e., interest EXPENSE is deducted from OPERATING INCOME before a tax rate is applied). In general, the higher the marginal corporate tax rate, the greater the benefits derived from the shield. The PRESENT VALUE of a tax shield is given as:⎡ D(r⎣where TR is the effective tax rate, D is total debt, and rdavg is the average cost of the debt. See also TAX UMBRELLA.",palgrave,0,51.18,11.1,14.2,9.98,11.7,10.16,13.75,14
TAX UMBRELLA,"Any TAX transaction that is intended to decrease a com- pany’s effective tax rate, generally considered to include TAX CARRYBACKS, TAX CARRYFORWARDS, and TAX SHIELDS.",palgrave,0,29.18,15.4,0,14.8,17.8,12.46,19.5,21.2
TAX YEAR,See FISCAL YEAR.,palgrave,0,93.81,0.9,0,-0.46,2.1,9.05,0.5,1.2
TAXABLE EQUIVALENT YIELD,"The YIELD on a TAX-free FIXED INCOME SECURITY grossed up to allow comparison with taxable INVESTMENT alter- natives. The taxable equivalent yield is generally computed via:(1 − TR)where yTF is the tax-free yield and TR is the effective tax rate. See also BOND EQUIVALENT YIELD, DISCOUNT YIELD, SIMPLE YIELD, YIELD TO CALL, YIELD TO MATURITY.",palgrave,0,52.9,10.4,13,11.6,12.3,10.29,12.16666667,13.14
TAXABLE PERSON,"Any individual, organization, or corporate entity that is subject to TAX on INCOME earned or, in a VALUE-ADDED TAX regime, tax on the TAXABLE SUPPLY.",palgrave,0,37.64,14.2,0,10.62,14.6,10.56,16.5,16.4
TAXABLE SUPPLY,"In systems using a VALUE-ADDED TAX, the goods or ser- vices which are subject to TAX.",palgrave,0,80.62,6,0,6.38,7.2,9.36,7,6.4
TBA,See TO BE ANNOUNCED.,palgrave,0,92.8,1.3,0,0,0.6,7.78,1,1.6
TEAR-UP PRICE,"The price at which a BANK or DEALER will close out, or buy out, a client’s DERIVATIVE transaction. The tear-up price is generally a function of the transaction’s current MARK-TO-MARKET value and a PROFIT SPREAD. Also known as UNWIND PRICE.",palgrave,0,66.44,7.3,10.5,9.67,8.8,8.24,7.333333333,9.32
TEASER,"A below-market INTEREST RATE on a LOAN used to entice an individual or company to borrow funds, or an above-market rate on a DEPOSITused to entice clients into placing funds. The favorable teaser rate generally lasts for up to several quarters and then reverts to normal market levels.Additional reference: Edwards and Magee (2001).",palgrave,0,27.66,16,0,12.65,16.7,10.91,18.75,15.88
TED SPREAD,See TREASURY-EURODOLLAR SPREAD.,palgrave,0,34.59,9.2,0,26.63,25.6,14.31,1.5,14.53
TEENY,"The smallest trading unit in US TREASURY BONDS and AGENCY SECURITIES, i.e., 1/64th of $1.",palgrave,0,64.71,8,0,8.4,9.6,14.91,7.5,8.67
TEMPERATURE-LINKED BOND,"An INSURANCE-LINKED SECURITY with COUPON INTEREST and/or PRINCIPAL REDEMPTION contingent on the level of cumulative temperatures in a particular city, group of cities, or region. The BOND provides INVESTORS with an alternative INVESTMENT opportun- ity and the ISSUER with a HEDGE or RISK TRANSFER mechanism. See alsoTEMPERATURE DERIVATIVE.",palgrave,0,29.86,13.1,15.9,16.76,15.2,13.31,13,18.9
TENDER,"(1) The act of delivering SHARES of a company that is being acquired by another company in order to receive in exchange shares of the acquiring company, or the delivery of shares into a STOCK BUYBACK. (2) The act of offering an ASSET or SECURITY for sale. (1) See also  OFFER. (2) See also FIXED-PRICE .",palgrave,0,15.65,24.7,0,8.2,27.2,9.81,37,25.64
TENDER OFFER,"A publicly announced offer by a company or RAIDER to purchase the COMMON STOCK of a TARGET company at a stated price. Theoffer price, known as a TAKEOVER BID, is generally made at a PREMIUM to the market in order to induce SHAREHOLDERS to sell (or “tender”) their SHARES. Tender offers do not require specific shareholder approval or the specific support of the incumbent BOARD OF DIRECTORS or EXECUTIVE MANAGEMENT. See also FRIENDLY TAKEOVER, HOSTILE TAKEOVER, TAKEOVER, TWO-TIER BID.",palgrave,0,51.38,11,13.4,11.72,12.7,10.02,13.125,12.98
TENDER PANEL,"A SYNDICATE of BANKS backing an ISSUER’s REVOLVING UNDERWRITING FACILITY, NOTE ISSUANCE FACILITY, or MULTIPLE OPTION FACILITY. The panel sells NOTES on behalf of the ISSUER on a best efforts basis and purchases any SECURITIES that remain unsold, thus provid- ing the issuer with funds.",palgrave,0,31.72,14.4,0,13.29,15.1,13.17,15.75,15.22
TENOR,The time period between issuance and MATURITY of a SECURITY.,palgrave,0,27.49,11.9,0,10.24,7.6,10.45,7,16
TERM ASSURANCE,"In the United Kingdom, TERM INSURANCE.",palgrave,0,56.93,6.8,0,9.15,7.5,6.57,3,9.07
TERM BILL,A BILL OF EXCHANGE that is due and payable on a specific date. Also known as PERIOD BILL.,palgrave,0,87.72,3.3,0,3.51,1.9,6.71,4.5,8.04
TERM INSURANCE,"A form of life INSURANCE with a finite expiration date. Term life is the simplest form of life insurance, offering no specific SAVINGS or INVESTMENT features, simply a lump sum payout in the event of mortality of the named INSURED. Also known as TERM ASSURANCE.",palgrave,0,56.25,9.1,12.5,9.45,8.8,9.64,10.16666667,12.22
TERM LOAN,"A LOAN with a MATURITY ranging from 1 to 15+ years, gen- erally used to fund medium- and long-term ASSETS such as INVENTORY and plant and equipment. A term loan may be secured or unsecured, carry a FIXED RATE or FLOATING RATE, and contain general or specific performanceCOVENANTS.",palgrave,0,55.58,11.5,0,10.1,13.4,11.08,15.5,14.6
TERM REPURCHASE AGREEMENT,"A REPURCHASE AGREEMENT with a final MATURITY ranging from 7 to 30 days; the opposite side of the transaction is referred to as a term REVERSE REPURCHASE AGREEMENT. See also OPEN REPURCHASE AGREEMENT, OVERNIGHT REPURCHASE AGREEMENT.CASE RISK EXPOSURE, TERMINAL WORST-CASE RISK EXPOSURE.",palgrave,0,41.7,12.7,0,15.43,16.4,10.32,16,14.11
TERMINAL EXPOSURE,POTENTIAL EXPOSURE of an OVER-THE- COUNTER DERIVATIVE that is based on the final MATURITY of the transac- tion. See also AVERAGE EXPOSURE.,palgrave,0,43.39,9.9,0,11.06,9.1,10.64,7.5,13.49
TERMINAL MARKET,"A TRADING center for a particular good or COMMODITY, rather than its original production center.CASE RISK EXPOSURE, TERMINAL EXPECTED RISK EXPOSURE.",palgrave,0,16.32,16.2,0,16.94,17.8,11.45,19.5,21.73
TERMINATION FEE,"A fee paid by an acquiring company to a BANK pro- viding financing for an ACQUISITION, payable only if the financing is not utilized. See also BREAKUP FEE.",palgrave,0,65.73,7.6,0,7.82,7.1,9.41,8.5,9.89
TERMINATION OPTION,An OPTION embedded in an OVER-THE-COUNTER SWAP that permits one or both parties to terminate the transaction based on the passage of time or the occurrence of a triggering CREDIT event (often a CREDIT RATING downgrade). A firm might employ a termination option to help miti- gate the effects of counterparty CREDIT RISK on very long-term transactions.,palgrave,0,42.55,14.4,0,12.25,17.2,11.42,18.75,17.01
TERP,See THEORETICAL EX-RIGHTS PRICE.,palgrave,0,33.58,9.6,0,15.95,14.7,15.68,2,11.6
TEXAS HEDGE,"A financial transaction that increases RISK or produces losses under all market scenarios, i.e., it does the opposite of what a properly functioning HEDGE is meant to do.",palgrave,0,43.06,14.2,0,11.61,16.6,11.79,21,21.2
THEORETICAL EX-RIGHTS PRICE (TERP),"The theoretical price a com- pany’s STOCK will have upon the completion of a RIGHTS ISSUE, reflect- ing the degree of DILUTION and the amount of rights taken up by existingSHAREHOLDERS.",palgrave,0,40.01,15.4,0,11.56,17.6,10.78,19.5,17.56
THEORETICAL FUTURES PRICE,"The ARBITRAGE-free price of a FUTURES contract, equal to the SPOT PRICE plus the COST OF CARRY.",palgrave,0,71.14,7.6,0,8.35,9,8.19,8.5,9.15
THETA,"A change in the value of an OPTION for a change in the passage of time, with all other variables held constant. The thetas of the CALL OPTION and PUT OPTION under the BLACK-SCHOLES MODEL are given by:)2 tu p = − dP = − Ss N9(d1 ) + rf Xe−rf t N( −d2 )where2+−2and S is the STOCK price, X is the STRIKE PRICE, t is the time to MATURITY,rf is the RISK-FREE RATE, σ2 is the VARIANCE, and where the N values of N(d1) and N(d2) can be obtained from standard tables of PROBABILITY functions.The thetas of long and short puts and calls are shown as:Also known as OMEGA. See also DELTA, GAMMA, GREEKS, RHO, TIME DECAY, TIME VALUE, VEGA.",palgrave,0,56.97,15.1,8.8,6.63,18.5,11.61,26.5,16.4
THETA NEUTRAL,"A PORTFOLIO of OPTIONS that is neutral with respect to its THETA, meaning that it is HEDGED with regard to daily TIME DECAY. See also DELTA NEUTRAL, GAMMA NEUTRAL, VEGA NEUTRAL.",palgrave,0,64.2,8.2,0,8.99,8.6,10.52,7.25,7.49
THIN MARKET,"An ILLIQUID market that features low volume, wide BID-OFFER SPREADS, and high price VOLATILITY; a thin market may also fea- ture periods of strictly one-way activity and periodic ORDER IMBALANCES. See also DEEP MARKET, TIGHT MARKET.",palgrave,0,44.75,11.5,0,12.7,13.3,9.79,12,12.76
THIRD MARKET,"(1) The general marketplace for TRADING of OVER- THE-COUNTER instruments. (2) EXCHANGE trading between nonmember firms, or between a member and nonmember firm.",palgrave,0,39.67,13.4,0,15.32,18.1,10.27,16.5,14.42
THIRD PARTY ENHANCEMENT,"Any form of support obtained from a third party CREDIT support provider, such as a GUARANTEE, SURETY BOND, or LETTER OF CREDIT. Such enhancements are used to increase the CREDITWORTHINESS of a transaction, often in lieu of posting physical or financial ASSETS as COLLATERAL.",palgrave,0,40.69,13.1,0,12.36,14.3,10.83,14.5,15.16
THRIFT,See SAVINGS AND LOAN ASSOCIATION.,palgrave,0,32.56,10,0,10.76,8.4,7.04,2.5,10
THROUGHPUT CONTRACT,A form of take-or-pay CONTRACT often used in PROJECT FINANCE deals in the energy industry that obliges producers to pass a certain minimum amount of product through a processing facility or pipeline for a fixed period of time. The existence of such a contract serves as a form of GUARANTEE in support of a project financing. See also TOLLING CONTRACT.,palgrave,0,51.18,11.1,14.1,10.44,11.5,10.16,13.66666667,14.67
TIBOR,See TOKYO INTERBANK OFFERED RATE.,palgrave,0,66.4,5.2,0,10.76,8.4,13.36,2.5,10
TICK VALUE,The value of a single price increment of an EXCHANGE-TRADED DERIVATIVE CONTRACT.,palgrave,0,33.92,11.5,0,14.2,11.7,9.5,8,11.47
TIDE PROVISION,"A “3-year independent director evaluation” provision included in certain POISON PILL defenses to make them more acceptable to SHAREHOLDERS. The provisions require DIRECTORS to evaluate the nature and status of poison pill defenses every three years to ensure that they remain equitable and appropriate, and do not harm or prejudice shareholder interests.",palgrave,0,19.71,17,0,16.37,19,11.61,21.5,22.71
TIED LOAN,"A LOAN granted by one country to another country, with the express condition that the proceeds be used to buy goods and services from the lending country.",palgrave,0,60.99,11.5,0,10.1,14.4,8.48,15.5,12.28
TIER 1 CAPITAL,"Core REGULATORY CAPITAL for BANKS, defined by the BANK FOR INTERNATIONAL SETTLEMENTS as COMMON STOCK, RETAINED EARNINGS, PERPETUAL PREFERRED STOCK, and disclosed RESERVES. See also ECONOMIC CAPITAL, TIER 2 CAPITAL.ECONOMIC CAPITAL, TIER 1 CAPITAL.",palgrave,0,11.92,15.8,0,17.4,16.7,12.37,13.5,12.68
TIGHT MARKET,"A LIQUID market that features large volume and strong two-way flows, and narrow BID-OFFER SPREADS. ORDER IMBALANCES and one-way quotations are rare in a tight market. See also DEEP MARKET, THIN MARKET.",palgrave,0,69.07,6.3,8.8,10.88,8.9,8.11,5.333333333,6.78
TIGR,See TREASURY INVESTORS GROWTH RECEIPT.,palgrave,0,66.4,5.2,0,16.56,13.1,16.52,1.5,2
TIME DECAY,Daily gain or loss impacting the TIME VALUE component of OPTION PREMIUM due to the passage of time; time decay is often used as a practical expression of THETA.,palgrave,0,42.04,14.6,0,9.3,14.5,9.98,19.5,18.5
TIME DRAFT,See BANKER’S ACCEPTANCE.,palgrave,0,59.97,5.6,0,15.03,14.6,14.31,1.5,14.53
TIME ORDER,"An ORDER to purchase or sell SECURITIES with a specific time constraint, such as at the close or open of a market, or at some future date. See also LIMIT ORDER, MARKET ORDER, STOP ORDER.",palgrave,0,62.17,8.9,0,6.61,7.8,7.21,8.75,9.29
TIME-TO-DECAY RISK,See FRACTIONAL EXPOSURE.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,2.5,27.87
TIME TRANCHING,"An internal CREDIT enhancement mechanism used in a SECURITIZATION transaction that directs the repayment of PRINCIPAL to the most SENIOR TRANCHES first; once the senior tranche has been repaid, CASH FLOWS are redirected to increasingly SUBORDINATED tranches. See also WATERFALL.",palgrave,0,25.8,14.6,0,16.82,16.7,11.73,15.5,19
TIME VALUE OF MONEY,"A central financial concept indicating that the FUTURE VALUE of a sum of money invested today, in an INTEREST-bearing ASSET, is worth more than its current value. By extension, the future value of a sum can be DISCOUNTED at a DISCOUNT RATE to obtain today’s PRESENT VALUE.VOLUME during a defined TRADING period in order to achieve a better aver- age fill price. See also VOLUME WEIGHTED AVERAGE PRICE.",palgrave,0,48.43,12.1,13,10.74,13,10.1,14.33333333,13.79
TIMES INTEREST EARNED,"A measure of a firm’s ability to cover its DEBT, generally measured as:where EBIT is EARNINGS BEFORE INTEREST AND TAXES and Int is interestEXPENSE.The greater the ratio, the stronger the firm’s INTEREST COVERAGE.",palgrave,0,21.06,18.5,0,14.05,20.7,12.45,22.5,19.26
TIMING OPTION,See DEFERRAL OPTION.,palgrave,0,34.59,9.2,0,7.32,8.3,14.31,1.5,14.53
TIPS,See TREASURY INFLATION-PROTECTED SECURITY.,palgrave,0,-76.41,24.9,0,30.45,26.5,19.62,3,31.6
TOBIN’S Q RATIO,"A corporate valuation measure developed by economist Tobin, computed as:where MV is the MARKET VALUE of the firm and BV is the BOOK VALUE of the firm (measured on a REPLACEMENT COST basis).A Q ratio below 1.0 means the firm is earning less than its required rate of RETURN; each marginal dollar invested in ASSETS fails to produce future CASH FLOWS whose PRESENT VALUE is equal to the marginal dollar invested. A ratio above 1.0 means the firm is exceeding the required rate of RETURN.",palgrave,0,36.8,18.7,0,10.29,22.1,10.57,26.75,21.24
TOKKIN,"[JPN] An INVESTMENT FUND held by a corporate client and man- aged by a BANK, the ASSETS of which are generally invested in STOCKS.",palgrave,0,64.04,10.3,0,7.67,11.6,10.75,16,16.27
TOKYO STOCK EXCHANGE (TSE),"The primary STOCK EXCHANGE of Japan, originally established in 1878, consolidated in 1943, and reformed in 1949. The exchange features three sections (LARGE CAP STOCKS, MID- CAP STOCKS, and start-up company stocks) and has operated on an elec- tronic basis since the closure of its FLOOR in 1999. See also OSAKA STOCK EXCHANGE.",palgrave,0,61.97,9,11.9,11.08,11.8,10.47,11.16666667,11.61
TOLLING CONTRACT,A form of take-or-pay CONTRACT often used for pro- cessing and transportation/distribution in the energy industry that does not require the processor or transporter to purchase input/feedstock or sell the output. See also THROUGHPUT CONTRACT.,palgrave,0,45.25,11.3,0,15.72,15.3,11.27,11.75,12.71
TOM NEXT,"Abbreviated form of “tomorrow-next,” referring to FOREIGN EXCHANGE and MONEY MARKET transactions that are executed tomorrow (t + 1) for delivery the day after that (t + 2). Also known as DEALING OVER TOMORROW, ROLLOVER.",palgrave,0,29.35,13.3,0,12.99,13.2,9.72,12.75,12.66
TON,"Common reference for one hundred million. See also BUCK, YARD.",palgrave,0,66.4,5.2,0,7.28,6,8.62,2,6
TOP TICK,"The EXECUTION of a TRADE at, or near, the peak of the market.",palgrave,0,83.66,4.8,0,2.36,2.8,5.5,6.5,8.28
TOPIX,See TOKYO STOCK PRICE INDEX.,palgrave,0,100.24,0.5,0,4.96,3.7,10.2,1.5,2
TOPPY,See FROTHY.,palgrave,0,120.21,-3.1,0,-4.51,3.1,11.63,0,0.8
TORPEDO STOCK,"A COMMON STOCK that has fallen dramatically and is expected to continue declining, generally as a result of poor financial performance and uncertain prospects.",palgrave,0,21.74,16.2,0,15.38,17.3,12.72,20,22.93
TORT,"An intentional or unintentional act of negligence by an individual or company, excluding breach of CONTRACT. A party damaged by a tort may seek remedy in court through a damage lawsuit.",palgrave,0,38.82,11.7,0,10.84,9.9,10.01,11.25,13.94
TOTAL COST,The sum of a company’s VARIABLE COSTS and FIXED COSTS.,palgrave,0,86.71,3.7,0,6.76,4.8,10.45,5,8
TOXIC POOL,A DARK POOL that plays host to aggressive traders or those with rapid execution strategies who may be able to take advantage of INVESTORS with a more passive approach.,palgrave,0,58.96,12.2,0,10.92,15.6,10.52,17.5,15.74
TRACKER FUND,See INDEX FUND.,palgrave,0,93.81,0.9,0,-2.38,0.5,14.31,0.5,1.2
TRACKING RISK,"A mechanism for estimating the ACTIVE RISK contained in a PORTFOLIO with ACTIVE BETS. It can be computed as the forecast of the annualized STANDARD DEVIATION of the difference between the PORTFOLIO’s RETURN and the BENCHMARK’s RETURN; since the forecast is model-driven, it must only be regarded as an estimate. See also TRACKING ERROR.",palgrave,0,44.75,11.5,14.1,12.18,12.3,10.09,12.66666667,13.87
TRACKING STOCK,"A COMMON STOCK based on a portion of a company’s operations (i.e., a separate SUBSIDIARY or business unit). Tracking stocks are priced and traded independently of the company’s primary stock and are per- mitted to pay a DIVIDEND; however, they carry no VOTING RIGHTS and have no legal CLAIM on the main company’s ASSETS.",palgrave,0,44.07,13.8,0,10.62,15.3,11.7,18,14.5
TRADE,"(1) A transaction involving the purchase or sale of SECURITIES, COMMODITIES, FOREIGN EXCHANGE or DERIVATIVES, on an EXCHANGE or OVER-THE-COUNTER. (2) The purchase or sale of goods or services across borders.",palgrave,0,31.55,16.6,0,14.34,21,10.78,21.5,18.85
TRADE BARRIER,"Any restrictions created by a country in order to impede or limit free TRADE with other countries. Barriers may come in different guises, including QUOTAS, TARIFFS, DUTIES, and restrictive REGULATIONS.",palgrave,0,39.33,11.5,0,14.2,13.1,11.22,11,14
TRADE BILL,A BILL OF EXCHANGE that is used to purchase goods.,palgrave,0,95.17,2.5,0,4.44,2.9,5.71,4,4
TRADE CREDITORS,See ACCOUNTS PAYABLE.,palgrave,0,93.81,0.9,0,9.23,9.9,14.31,0.5,1.2
TRADE DEBTORS,See ACCOUNTS RECEIVABLE.,palgrave,0,34.59,9.2,0,15.03,14.6,14.31,1.5,14.53
TRADE GAP,"The difference between a country’s IMPORTS and EXPORTS, which may be either positive (trade surplus) or negative (trade deficit).",palgrave,0,52.19,10.7,0,14.79,15.6,10.4,12.5,11.81
TRADED AWAY,A prospective financial transaction or deal with a cli- ent that one BANK loses to another bank.,palgrave,0,62.68,8.7,0,9.05,9.3,10.05,11.5,11.51
TRADE-THROUGH,"The purchase or sale of a STOCK during regular TRAD- ING hours, either as PRINCIPAL or AGENT, at a price that is lower than a PROTECTED BID or higher than a PROTECTED OFFER.",palgrave,0,54.9,13.8,0,7.38,15.2,10.06,20.5,16.84
TRADING,"The process of buying and selling ASSETS in order to generate PROFITS from market movements and BID and OFFER SPREADS. Trading is a common line of business for BANKS, INVESTMENT BANKS, SECURITIES FIRMS, BROKER/DEALERS, HEDGE FUNDS, and certain MUTUAL FUNDS.",palgrave,0,51.18,11.1,0,13.17,14.2,12.13,12.5,12
TRADING BOOK,"An ACCOUNT used by a DEALER, MARKET MAKER or pro- prietary TRADER that contains all OPEN POSITIONS, including SECURITIES, DERIVATIVES, and other CONTRACTS, along with any relevant HEDGES.",palgrave,0,26.14,16.6,0,14.68,19.5,12.36,19,18.34
TRADING CURB,See CIRCUIT BREAKER.,palgrave,0,59.97,5.6,0,7.32,8.3,14.31,0.5,1.2
TRADING HALT,"The temporary stop of all TRADING activities on an EXCHANGE, which may be the result of breaching a CIRCUIT BREAKER or the onset of an operational or technical difficulty, or a stop in the activities of one SECURITY as a result of breaking news which is expected to have a market impact.",palgrave,0,18.7,23.6,0,9.59,26,10.77,34,26.18
TRADING INDEX (TRIN),"A measure of STOCK market strength that com- pares the number of companies advancing and declining to volume. The gen- eral TRIN formula is given as:where Advnum is the number of advancing issues, Decnum is the number of declining issues, Advvol is the volume of advancing issues, and Decvol is the vol- ume of declining issues.A TRIN below 1.0 is considered a BULLISH signal, while a result above 1.0 is a BEARISH signal. Also known as ARMS INDEX.",palgrave,0,53.55,12.3,13.6,9.58,14,10.39,16.33333333,12.96
TRADING PIT,"A section of an EXCHANGE that is used for TRADING of a specific ASSET. Trading pits still exist on certain exchanges, but are grad- ually disappearing as OPEN OUTCRY trading shifts to electronic trading. Also known as PIT.",palgrave,0,67.04,7.1,8.8,9.32,7.8,9.67,6.333333333,8.24
TRADING PROFIT,"In the United Kingdom, OPERATING INCOME.",palgrave,0,31.55,10.4,0,11.07,9,6.57,3,9.07
TRADING SPECIAL,A condition where a SECURITY used as COLLATERAL in the REPURCHASE AGREEMENT market has becomeSPECIAL.,palgrave,0,22.41,13.9,0,15.36,13.4,10.7,12.5,19.33
TRADING UPFRONT,"A market situation where the REFERENCE CREDIT in a CREDIT DEFAULT SWAP (CDS) is perceived to be of such weak credit quality that the seller of the swap demands, in addition to the periodic premium payments that accompany a standard CDS, an upfront PREMIUM payment to compensate for the increased likelihood of DEFAULT.",palgrave,0,9.22,25.1,0,12.14,28.7,12.22,36.5,27.99
TRAILING PRICE/EARNINGS RATIO,"A PRICE/EARNINGS RATIO that is computed on a rolling basis based on the most recent 12 months’ financial results, with the latest quarterly or semiannual results replacing the oldest data points. See also FORWARD PRICE/EARNINGS RATIO.",palgrave,0,44.75,11.5,0,13.69,13.6,12.42,11.5,12.76
TRANCHE,"[FR] A slice or portion of a SECURITIES issue or financing that is characterized by unique features related to CURRENCY, COUPON, MATURITY, CREDIT RATING, and seniority. Tranching is commonly used in SECURITIZATION, multicurrency LOANS, and CERTIFICATES OF DEPOSIT in order to create a range of INVESTMENT selections.",palgrave,0,13.78,17.2,0,15.09,17.4,13.2,18.25,20.46
TRANCHETTE,"A small issue of GILTS issued by the BANK OF ENGLAND, intended primarily for RETAIL INVESTORS.",palgrave,0,55.24,9.5,0,10.32,9.8,12.33,9,11.4
TRANSACTION COST,"The costs associated with entering into a financial or INVESTMENT transaction, including COMMISSIONS, fees, STAMP DUTIES and/or TAXES, as well as certain indirect costs that support research and oper- ational support. The greater the friction costs, the higher the breakeven point on the initial investment. Also known as FRICTION COST.",palgrave,0,46.06,11,13,14.56,13.9,11.1,11.33333333,13.08
TRANSACTION RISK,The RISK of loss arising from adverse CURRENCY movements on corporate operations; PROFITS or LOSSES from such risks are typically reflected directly through the corporate INCOME STATEMENT. Dealings that give rise to transaction risk may be hedged through CURRENCY DERIVATIVES in order to decrease the possibility of loss. Also known as CURRENCY . See also TRANSLATION RISK.,palgrave,0,40.35,11.1,13.4,14.43,12.2,10.25,10.375,12.74
TRANSACTIONAL BANKING,"A model of BANKING where a FINANCIAL INSTITUTION focuses primarily on providing clients with specific transac- tional services and support, often attempting to be the low-cost provider on avolume basis of CHECKING, DEPOSITS, TRADE EXECUTION, and LENDING. See also RELATIONSHIP BANKING.",palgrave,0,25.29,14.8,0,16.24,17,13.13,14.75,16.98
TRANSFER,"The act of moving an ASSET from one person, ACCOUNT, or company to another. The asset involved may include MONEY, SECURITIES, COMMODITIES, or other property, and it may be accomplished physically or electronically.",palgrave,0,29.35,13.3,0,12.99,12.8,8.76,12.25,13.87
TRANSFER PAYMENT,"Noncompensatory MONIES given by a government to the public, such as SOCIAL SECURITY benefits or other PENSION or welfare benefits.",palgrave,0,17.34,15.8,0,14.33,14.7,10.16,15,14
TRANSFER PRICING,"Prices charged internally for goods or services within a company, which are ultimately factored into the cost of production.REVOLVING UNDERWRITING FACILITY giving the original UNDERWRITER the RIGHT to transfer its commitment to another BANK.",palgrave,0,3.13,21.3,0,18.29,24.4,12.29,27,24.19
TRANSFEREE,A person or company to whom the TRANSFER of an ASSET is made. See also TRANSFEROR.,palgrave,0,71.82,5.2,0,3.9,2.3,6.99,4,5.7
TRANSFEROR,A person or company that TRANSFERS an ASSET. See alsoTRANSFEREE.,palgrave,0,35.95,10.7,0,11.98,9.5,8.87,6,8
TRANSITION,See RATING MIGRATION.,palgrave,0,34.59,9.2,0,9.23,9.9,14.31,1.5,14.53
TRANSITION PROBABILITY,The likelihood that a company’s CREDIT RATING will migrate from one rating class to another; such PROBABILITIES are essential components of CREDIT MARK-TO-MARKET MODELS. See alsoRATING MIGRATION,palgrave,0,23.93,13.3,0,17.33,14.6,10.74,11.25,15.77
TRANSLATION RISK,"The RISK arising from converting ASSETS and LIABILITIES from one CURRENCY to another, with any gains or losses reflected directly in the EQUITY account on the corporate BALANCE SHEET. Translation risk may arise when a company operates SUBSIDIARIES in differ- ent countries, and can be protected through a balance sheet HEDGE. See alsoTRANSACTION RISK.",palgrave,0,44.75,11.5,15,13.8,13.6,10.96,13.33333333,15.35
TRAVELER’S CHECK,A prepaid CHECK issued by a BANK that can be exchanged for local CURRENCY or used to pay for goods and services in for- eign countries. The check must be signed and countersigned and accompanied by proof of identity in order to be valid.,palgrave,0,66.07,9.5,0,7.89,10.3,9.75,13,12.44
TREASURER,"A professional within a company that is responsible for man- aging all items related to financing, HEDGING, and INVESTMENT, forming part of the TREASURY function.",palgrave,0,29.18,15.4,0,13.87,17.1,12.46,18.5,18
TREASURY,"A function within a company that deals with financing, HEDGING, and INVESTMENT.",palgrave,0,42.38,10.3,0,13.27,11.3,12.13,8,11.47
TREASURY BILL RATE,"The INTEREST RATE applicable to an issue of TREASURY BILLS. Since Treasury bills are generally issued as DISCOUNT instruments, the interest rate is implicit rather than explicit.",palgrave,0,40.85,10.9,0,14.14,11.8,10.74,10.25,14.29
TREASURY NOTE,"In the United States and certain other countries, a DEBT instrument issued by the government as a funding mechanism. Treasury notes are often issued on an AUCTION basis through PRIMARY DEALERS as FIXED RATE, COUPON-bearing, instruments with MATURITIES extending from 1 to 10 years. See also TREASURY BILL, TREASURY BOND, TREASURY INFLATION-PROTECTED SECURITY.",palgrave,0,36.59,12.6,13.6,14.9,14.7,11.96,12.16666667,13.87
TREATY FACILITY,A mechanism allowing a CAPTIVE to access the REINSURANCE markets for large exposures. The facility generally reinsures a small percentage of the captive’s exposures and then RETROCEDES the bal- ance through TREATY REINSURANCE.,palgrave,0,37.81,12.1,0,16.01,14.5,12.11,12.75,15.08
TREATY OF ROME,A treaty executed in 1957 that led to the formation of the EUROPEAN ECONOMIC COMMUNITY (as predecessor of the EUROPEAN UNION).,palgrave,0,33.24,13.8,0,11.14,12.9,11.45,17.5,19.83
TREATY REINSURANCE,"A REINSURANCE agreement where the primary INSURER agrees to CEDE to a REINSURER a portion of all RISKS conform- ing to preagreed guidelines. Since conforming risks must be assumed by the reinsurer, the insurer is assured of necessary coverage; it also means, however, that the insurer cannot retain in its own PORTFOLIO a full share of conforming risks that may be especially profitable. See also FACULTATIVE REINSURANCE, QUOTA SHARE, SURPLUS SHARE, TREATY FACILITY.",palgrave,0,38.35,13.9,16.7,13.47,16.2,10.68,17.83333333,15.75
TRENDLINE,A TECHNICAL ANALYSIS charting technique created by con- necting the highest or lowest prices of a SECURITY or market over time; the resulting line is indicative of an overall directional trend.,palgrave,0,31.55,16.6,0,13.24,18.8,13.32,22.5,21.43
TREYNOR INDEX,"A measure of RISK-adjusted PORTFOLIO performance that compares the RISK PREMIUM (or RETURN) earned by the PORTFOLIO with the risk of the portfolio (as reflected through the portfolio BETA). The Treynor index, which uses the SECURITY MARKET LINE as a BENCHMARK, can be computed via:where E(rp) is the expected return of the portfolio, rf is the RISK-FREE RATE, and βp is the beta of the portfolio. See also JENSEN INDEX, SHARPE INDEX. Additional reference: Treynor (1965).",palgrave,0,52.19,10.7,14.2,11.31,12.6,9.98,13.25,12.86
TRIAL BALANCE,"A tool used in the DOUBLE ENTRY ACCOUNTING system that adds all ledger account DEBIT columns and CREDIT columns in order to ensure they are in balance. If the two are not in balance, an error has occurred (e.g., error in posting JOURNAL ENTRIES, omission of an account, and so forth).",palgrave,0,62.51,10.9,0,8.48,12.9,10.47,13.25,10.98
TRIAL FINANCIAL STATEMENTS,"The preliminary, un-AUDITED FINANCIAL STATEMENTS of a company. Trial financial statements are intended for internal use rather than public disclosure.",palgrave,0,19.03,13.1,0,18.07,14.4,11.24,8,16
TRIANGLE,"A TECHNICAL ANALYSIS charting technique that depicts the price of a SECURITY or market in a formation with two base points and a top that gives the appearance of a triangle; a triangle features multiple rallies and retreats, with each subsequent peak occurring at a lower level than the previ- ous one. A BREAKOUT from a triangle may portend a much larger move to the upside or downside.",palgrave,0,36.97,16.6,0,10.17,17.8,10.9,22.5,18.89
TRIN,See TRADING INDEX.,palgrave,0,59.97,5.6,0,3.43,5.2,14.31,0.5,1.2
TRIPLE WITCHING DAY,"A single business day when INDEX FUTURES, index OPTIONS, and individual EQUITY options all settle, which occurs once each quarter (i.e., the third Friday in March, June, September, and December). There is evidence to indicate that volume and VOLATILITY increase during triple witching days as INVESTORS, HEDGERS, and SPECULATORS rebalance their positions. See also QUADRUPLE WITCHING DAY.",palgrave,0,43.73,11.9,13.6,14.85,15.5,10.4,12.83333333,13.21
TRUE AND FAIR VIEW,"In the United Kingdom, FAIR PRESENTATION.",palgrave,0,48.47,8,0,12.05,9.8,6.57,3,9.07
TRUST,"(1) A legal vehicle that permits ownership of property by one party for the express benefit of another party. The EE receives TITLE to, but cannot benefit from, the property, and is legally obliged to manage the property in a prudent manner on behalf of the ultimate BENEFICIARY. (2) A monopolistic business entity formed through consolidation or amalgamationof various existing CORPORATIONS, prevalent primarily during the early twentieth century.",palgrave,0,3.13,21.3,0,14.86,21.9,12.52,27,23.01
TRUST DEED,See INDENTURE.,palgrave,0,35.61,8.8,0,4.2,10.2,11.63,1,20.8
TRUST FUND,"An INVESTMENT FUND that holds the ASSETS of a TRUST, and which is directed by the TRUSTEE.",palgrave,0,79.6,6.4,0,7.02,7.6,10.05,10.5,11.51
TSE,See TOKYO STOCK EXCHANGE.,palgrave,0,92.8,1.3,0,7.25,6.5,7.78,1,1.6
TUNNEL,See ZERO COST COLLAR.,palgrave,0,75.88,3.7,0,1.45,1.8,7.78,1,1.6
TURBO OPTION,See POWER OPTION.,palgrave,0,59.97,5.6,0,1.52,3.6,9.05,0.5,1.2
TURKEY,"A bad INVESTMENT, or a promising deal that has soured.",palgrave,0,86.71,3.7,0,6.18,4.8,8.87,5,8
TURN,"The difference between the BID and OFFER on a SECURITY, or the amount that a DEALER or MARKET MAKER can earn by buying at the bid and selling at the offer.",palgrave,0,56.93,13,0,6.34,13.1,7.72,17.5,13.69
TURNOVER,"(1) In the United Kingdom, GROSS REVENUE. (2) The amount of TRADING volume on an EXCHANGE, in total or in a specific SECURITY. (3) The activity in a specific ASSET account, such as INVENTORY. (2) Also known as VOLUME.",palgrave,0,31.89,18.5,0,7.73,19.7,10.83,24.5,19.7
TWAP,See TIME WEIGHTED AVERAGE PRICE.,palgrave,0,66.4,5.2,0,9.6,7.4,10.2,2.5,10
TWIN-IN BARRIER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that is created when an upper or lower BARRIER is breached. The inclusion of two barriers, which increase the probability of triggering, generally makes the structure more expensive than a standard KNOCK-IN OPTION. See alsoBARRIER OPTION, TWIN-OUT BARRIER OPTION.",palgrave,0,31.58,12.4,14.1,15.3,13.8,10.59,10.83333333,14.09
TWIN-OUT BARRIER OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that is extinguished when an upper or lower barrier is breached. The inclusion of two barriers, which increases the probability of triggering, gener- ally makes the structure cheaper than a standard KNOCK-OUT OPTION. See also BARRIER OPTION, TWIN-IN BARRIER OPTION.",palgrave,0,39.63,11.4,13.6,14.55,13.4,10.47,10.66666667,12.24
TWISTING,See CHURNING.,palgrave,0,77.91,2.9,0,1.3,7.8,11.63,0,0.8
TWO-FACTOR INTEREST RATE MODEL,"An OPTION pricing model that values BOND options by generating an entire YIELD CURVE through two variables, such as a short-term rate and a drift or reversion factor. Although such models are more complex to calibrate and implement than ONE-FACTOR INTEREST RATE MODELS, they can generate more precise results.",palgrave,0,46.61,12.8,0,13.18,15.9,11.62,15.75,14.7
TWO-TIER BID,"A TAKEOVER BID that features a more attractive price for INVESTORS willing to tender their SHARES by the first cutoff date; those choosing not to tender by a certain date are offered a less favorable deal. See also ANY-AND-ALL BID, FAIR PRICE PROVISION.",palgrave,0,66.57,9.3,0,10.39,12.4,8.74,12.25,11.39
TWO-WAY MARKET,See TWO-WAY PRICES.,palgrave,0,119.19,-2.7,0,3.43,6.8,9.05,0.5,1.2
TWO-WAY PRICES,"A BID and an OFFER on an individual SECURITY as quoted by a MARKET MAKER or other DEALER. In certain cases institutions that choose to act as market makers must be prepared to quote two-way prices in all market conditions. Also known as MAKING A MARKET, TWO-WAY MARKET.",palgrave,0,55.24,9.5,9.7,8.52,8.4,8.38,8.333333333,9.73
TYING,"A practice where a BANK, INVESTMENT BANK, or SECURITIES FIRM grants a client a LOAN with a low MARGIN only if the client agrees to award it more lucrative financial business, such as an UNDERWRITING or CORPORATE FINANCE transaction. In some jurisdictions the practice con- stitutes a violation of fair trading practices and is illegal. See also REVERSE .",palgrave,0,51.89,10.8,13.6,11.6,12.3,10.86,13.16666667,14.62
UBERRIMAE FIDEI,"Literally “in utmost good faith;” a characteris- tic commonly applied to INSURANCE POLICIES, where the INSURED and INSURER disclose all relevant information and express intention to carry out their respective obligations in good faith.",palgrave,0,11.59,20.1,0,17.07,23.5,13.22,27,25.36
ULTIMATE NET LOSS,"A computation performed by an INSURER that reflects the net economic loss sustained in INSURANCE activities, generally calculated via:UNL = – (Cl + LAE) + (Reins + Sal + Sub)where Cl is CLAIMS loss, LAE is LOSS ADJUSTMENT EXPENSE, Reins is recov- ery from REINSURANCE CONTRACTS in force, Sal is recovery from salvage value, and Sub is recovery from SUBROGATION rights.",palgrave,0,-2.29,27.5,0,13.77,32.5,14.87,42.5,30.26
UMBRELLA POLICY,An INSURANCE POLICY that provides the INSURED with additional coverage for specific LIABILITY and/or various named PERILS. The umbrella policy works in tandem with an insured’s existing policies to provide EXCESS LAYER coverage or ensure that any potential gaps that exist are appropriately filled.,palgrave,0,15.31,16.6,0,15.95,16.9,13.7,17.5,17.89
UMBRELLA REINSURANCE,"A REINSURANCE CONTRACT that covers MULTIPLE PERIL POLICIES. All treaties written under the umbrella comprise a single block of business, so REINSURERS participating in the agreement can- not select which treaty to reinsure.",palgrave,0,46.27,10.9,0,15.31,14.1,10.68,10.75,11.45
UNAUTHORIZED INSURANCE,See NONADMITTED INSURANCE.,palgrave,0,-24.64,17.4,0,18.92,17.8,14.31,2.5,27.87
UNAUTHORIZED INSURER,See NONADMITTED INSURER.,palgrave,0,-24.64,17.4,0,15.03,14.6,14.31,2.5,27.87
UNBUNDLING,"The process of decomposing and segregating individ- ual financial services offered by BANKS so that customers can more precisely take advantage of, and pay for, those services they actually require.",palgrave,0,32.57,16.2,0,15.21,20.1,12.49,22,21.33
UNCOMMITTED FACILITY,"A CREDIT line granted by a BANK to a com- pany that can be withdrawn by the bank at will if it has not been drawn. Since the facility can easily be taken away, it is not considered a reliable source of financing. See also COMMITTED FUNDING.",palgrave,0,72.46,7.1,11.2,5.74,5.9,9.12,8.833333333,11.39
UNDATED SECURITY,"Any SECURITY that lacks a defined MATURITY, such as PERPETUAL DEBT, COMMON STOCK, and most forms of PREFERRED STOCK.",palgrave,0,52.19,10.7,0,11.43,12.4,12.06,12.5,13.92
UNDERBANKED,"A future NEW ISSUE of SECURITIES with few INDICATI- ONS OF INTEREST, suggesting that the deal may be difficult for the SYNDICATE to place with INVESTORS unless pricing or other deal terms are altered.",palgrave,0,36.97,16.6,0,11.27,18.7,11.36,23,20.66
UNDERCAPITALIZATION,"Any situation where a company lacks enough CAPITAL to support its operations on a continuing basis. Undercapitalization may result from large losses that deplete capital resources, or from growth in ASSETS that outpaces any capital-raising efforts.",palgrave,0,27.83,13.9,0,16.12,15.5,11.55,13,11.64
UNDERFUNDED PENSION PLAN,"A form of FUNDED PENSION PLAN in which invested proceeds are insufficient to meet the requirements of future pensioners, primarily as a result of underperformance of the INVESTMENT PORTFOLIO underlying the pension.",palgrave,0,13.62,19.3,0,16.14,21.5,12.13,25,24.05
UNDERINSURANCE,"(1) Insufficient INSURANCE to cover an INSURABLE RISK, leaving the INSURED exposed to financial loss. (2) Failure by the insured to meet COINSURANCE requirements specified by the INSURER. (1) See alsoOVERINSURANCE.",palgrave,0,23.09,17.7,0,15.85,22,12.81,24.5,24.01
UNDERINVESTMENT PROBLEM,A situation where a company in FINANCIAL DISTRESS is urged by CREDITORS to invest in projects with low RISKS and low RETURNS. Such INVESTMENTS are intended to protect the ASSET position of the firm for the benefit of creditors rather than maximize ENTERPRISE VALUE for the benefit of SHAREHOLDERS.,palgrave,0,38.15,14,0,12.25,14.7,10.65,18.75,17.96
UNDERLYING,The ASSET or market reference defining or underpinning a DERIVATIVE contract.,palgrave,0,18.01,13.5,0,16.34,12.8,12.79,7.5,15.31
UNDERPERFORMANCE OPTION,"An OVER-THE-COUNTER COMPLEX OPTION that grants the buyer a PAYOFF based on the underperformance of a market reference or SPREAD against a predefined STRIKE PRICE. See alsoOUTPERFORMANCE OPTION, SPREAD OPTION.",palgrave,0,47.79,10.3,0,15.77,14.2,10.17,9,11.33
UNDERSTANDABILITY,"A principle of ACCOUNTING indicating that finan- cial terms and information must be presented in a way that can be under- stood by an individual with some degree of business knowledge, that it should include essential information and should not include irrelevant or overly U detailed information.",palgrave,0,6.85,24,0,14.12,27.2,11.68,33.5,25.61
UNDERSUBSCRIPTION,"A situation where the number of ORDERS for a NEW ISSUE of SECURITIES is lower than the available SUPPLY, suggesting the price of the security could decline at launch. Depending on the nature of the CAPITAL commitment, the UNDERWRITERS may take up a shortfall in orders. See also OVERSUBSCRIPTION.",palgrave,0,46.47,10.8,13,11.19,10.6,9.92,11.16666667,13.05
UNDERWATER,"(1) A market situation where an OPTION is so far OUT- OF-THE-MONEY that it is virtually worthless. (2) An INVESTMENT positionwith a MARKET VALUE that is below BOOK VALUE or carrying value, and which will crystallize a loss if sold.",palgrave,0,30.88,18.9,0,9.7,21.2,9.57,26,22
UNDERWRITER,"(1) A FINANCIAL INSTITUTION involved in UNDERWRI- TING a NEW ISSUE of SECURITIES. (2) An INSURER or REINSURER that anal- yzes, prices, and accepts or rejects INSURABLE RISKS. (1) See also SYNDICATE.",palgrave,0,30.54,17,0,11.21,19.2,14.6,24,22.8
UNDERWRITER’S LIABILITY,"The LIABILITY an UNDERWRITER faces in arranging and issuing SECURITIES for a company. If DUE DILIGENCE has not been performed (or has been performed with errors), or if financial disclosure contained in the PROSPECTUS is incorrect, INVESTORS holding securities that ultimately DEFAULT may be able to recover their losses from the underwriter.",palgrave,0,28.17,15.8,0,14.8,17.9,11,19.5,18.09
UNDERWRITING,"(1) In the SECURITIES industry, the process of issuing NOTES, BONDS, CONVERTIBLE BONDS, COMMON STOCK, or PREFERRED STOCK in the PRIMARY MARKET on behalf of an ISSUER. (2) In the banking and INSURANCE industries, the process of thoroughly evaluating a RISK expos- ure and determining whether anticipated profitability is commensurate with EXPECTED LOSS. In banking this is often done through CREDIT analysis; in insurance it is accomplished through ACTUARIAL PRICING and analysis. (1) See also ALL-OR-NONE , BEST EFFORTS , BOUGHT DEAL.",palgrave,0,13.96,21.3,0,14.57,25.2,12.33,30,24.5
UNDERWRITING AGREEMENT,See SYNDICATE AGREEMENT.,palgrave,0,34.59,9.2,0,15.03,14.6,14.31,1.5,14.53
UNDERWRITING INCOME,"In INSURANCE, the net amount earned from core insurance UNDERWRITING activities, typically computed as:UI = Pr – (IL + LAE + UE + Div)where Pr is PREMIUM, IL is INCURRED LOSSES, LAE is LOSS ADJUSTMENT EXPENSES, UE is underwriting EXPENSE, and Div is policyholder DIVIDENDS.",palgrave,0,4.48,22.8,0,14,25.4,14.14,34.5,26.16
UNDERWRITING RISK,"(1) The RISK that a SYNDICATE of BANKS or SECURITIES FIRMS UNDERWRITING a NEW ISSUE on a BOUGHT DEAL basis will be unable to place securities with INVESTORS, indicating that they will be required to fund any shortfall from their own resources. (2) The risk that the PREMIUM an INSURER charges INSUREDS will prove insufficient to cover future losses, and that losses and LOSS ADJUSTMENT EXPENSES will not be properly covered by RESERVES.",palgrave,0,-2.63,31.8,0,12.21,38.6,13.53,47.5,34.68
UNDERWRITING SPREAD,"In a NEW ISSUE, the difference between the amount paid by the SYNDICATE to the ISSUER and the price at which SECURITIES are offered to INVESTORS. The spread varies by issuer, class of issue, market conditions, and marketplace, and can range from 4% to 7% for COMMON STOCK to less than 1% for NOTES and BONDS. Also known as GROSS SPREAD, SPREAD. See also SELLING CONCESSION.",palgrave,0,71.65,7.4,10.1,8.35,8.8,9,8.75,9.63
UNDISCLOSED FACTORING,"A form of FACTORING where the under- lying does not want the presence of a factor to be revealed. Apart from thisconfidentiality, the roles of seller and factor remain the same as in a conven- tional factoring arrangement.",palgrave,0,52.19,10.7,0,10.21,11,8.73,11.5,10.76
UNDISTRIBUTABLE RESERVES,"In the United Kingdom, that portion of CAPITAL that cannot be distributed, including SHARE CAPITAL, the SHARE PREMIUM, and certain other RESERVES and unrealized profit accounts. See also RESTRICTED SURPLUS.",palgrave,0,30.87,12.7,0,15.19,13.9,9.64,11,12.67
UNDUE INFLUENCE,"Any form of influence that can be interpreted as coer- cion in the preparation and execution of a CONTRACT, and which may render the contract null and void by a court.",palgrave,0,48.47,14.2,0,8.37,14.9,10.27,19.5,17.56
UNEARNED PREMIUM RESERVE,"A RESERVE that contains a portion of the advance PREMIUM paid by an INSURED to an INSURER (or a CEDING INSURER to REINSURER) to cover the amount of INSURANCE (or REINSURANCE) that is still in force. Since premiums are normally charged at the inception of a policy but potential LIABILITY exists until the policy terminates, the reserve reflects the amount needed to cover EXPECTED LOSS prior to expiry. The amount of the reserve associated with a specific policy declines as contract expiry draws closer.",palgrave,0,34.6,15.4,17.1,11.55,16.2,11.04,20,18.34
UNEMPLOYMENT,"Lack of employment for able workers, and a key measure of the state of an ECONOMY in the BUSINESS CYCLE. During recovery and growth phases unemployment is low as demand for productive labor increases; during slowdown and RECESSION phases unemployment rises as demand for labor declines in line with reduced economic output.",palgrave,0,36.63,14.6,0,12.89,16.2,11,17.5,16.55
UNEXPECTED CREDIT LOSS,"The difference between EXPECTED CREDIT LOSS and WORST-CASE CREDIT LOSS; alternatively, the difference between the MEAN of the credit loss distribution function and a point represented by multiple STANDARD DEVIATIONS from the mean.",palgrave,0,21.06,18.5,0,17.42,23.3,9.58,24.5,20.47
UNFAIR PREFERENCE,The transfer of ASSETS or the payment of sums to a CREDITOR by a party that is about to declare BANKRUPTCY. Such a transfer may be declared void by the courts and be subject to CLAWBACK.,palgrave,0,70.13,8,0,6.44,7.3,8.92,9,9.42
UNFUNDED PENSION PLAN,"A PENSION SYSTEM in which current employ- ees pay for the benefits of existing pensioners (e.g., pay as you go). See alsoFUNDED PENSION PLAN, UNDERFUNDED PENSION PLAN.",palgrave,0,49.31,9.7,0,10.49,9.9,11.32,8.25,12.81
UNIFORM PRICE AUCTION,"A type of AUCTION MARKET in which buyers submit BIDS reflecting the price they will pay for a given quantity of an item. The orders are then allocated from highest to lowest, until the total SUPPLY of items is exhausted. Thereafter, bidders pay a per unit price that is equal to the lowest winning bid, rather than the original bid submitted.A COLLATERAL agreement where only required to post SECURITY; this generally COUNTERPARTIES to a transaction has amaterially lower CREDIT RATING than the second party. See also BILATERAL COLLATERAL.",palgrave,0,40.69,13.1,13.8,11.89,13.8,11.01,14.5,14.71
UNINCORPORATED BUSINESS,Any form of business organization where the owner bears UNLIMITED LIABILITY for any DEBTS incurred.,palgrave,0,30.87,12.7,0,14.61,12.8,10.7,10.5,14
UNINSURABLE RISK,"A RISK that cannot be covered by INSURANCE as it fails to meet the standard requirements set forth for an INSURABLE RISK, i.e., the risk can produce a loss that is not definable or fortuitous, or the risk is catastrophic and cannot be transferred through payment of an economically reasonable PREMIUM. Also known as PROHIBITED RISK.",palgrave,0,43.06,14.2,0,10.97,15.9,9.82,19,18.34
UNISSUED STOCK,"COMMON STOCK that is authorized for issuance through a firm’s CORPORATE CHARTER, but has not yet been floated; unissued stock stands in contrast to TREASURY STOCK, which is issued but no longer outstanding.(3) See CLOSED-END FUND.",palgrave,0,51.86,15,0,13.41,22.1,12.88,21,17.73
UNLIMITED COMPANY,A form of corporate organization in which SHAREHOLDERS do not benefit from the tenet of LIMITED LIABILITY.,palgrave,0,28.84,13.5,0,12.82,12,10.98,14.5,20.92
UNLIMITED LIABILITY,"A concept and structure where the personal ASSETS of INVESTORS, GENERAL PARTNERS, or sole proprietors are at RISK in the event of a business loss; the extent of financial LIABILITY is notbounded as it is in a LIMITED LIABILITY company. See also PIERCING THE CORPORATE VEIL.",palgrave,0,39.67,13.4,0,11.15,13.4,10.61,16.5,15.29
UNLIQUIDATED DAMAGES,"DAMAGES awarded to a plaintiff that can only be estimated ex-post by the courts. See also LIQUIDATED DAMAGES, STATUTORY DAMAGES.",palgrave,0,44.41,9.6,0,11.69,9.2,10.45,5.5,10
UNLISTED SECURITY,"Any SECURITY that is not formally listed on an EXCHANGE, and which need not comply with exchange rules related to dis- closure. Unlisted securities are typically issued by small companies and are very ILLIQUID.",palgrave,0,45.76,11.1,0,11.95,11.6,10.98,12,15.04
UNMATCHED BOOK,"A PORTFOLIO of ASSETS and LIABILITIES (such as the LOANS and DEPOSITS of a BANK, or the REPURCHASE AGREEMENTS and REVERSE REPURCHASE AGREEMENTS of a SECURITIES FIRM), with unequal MATURITIES or DURATIONS. An unmatched book increases an institution’s exposure to MARKET RISK and/or LIQUIDITY RISK, but provides for the possibility of a greater RETURN on CAPITAL. See also GAP, GAPPING, MATCHED BOOK, MISMATCH, OPEN BOOK.",palgrave,0,40.99,12.9,15,13.23,15.1,11.03,15.16666667,15.45
UNQUALIFIED OPINION,"An AUDIT OPINION by an EXTERNAL AUDITOR indicating that a company’s FINANCIAL STATEMENTS present a fair and accurate view of its financial position and conform to accepted ACCOUNTING PRINCIPLES. Also known as CLEAN OPINION. See also ADVERSE OPINION, QUALIFIED OPINION.",palgrave,0,32.6,12,14.6,14.49,12.2,10.61,10.66666667,16.32
UNREALIZED GAIN,"Gains on an ASSET (resulting from a positive change in valuation) that have not yet been realized or “locked in” for ACCOUNTING purposes. An unrealized profit can only be realized through disposal or estab- lishment of a HEDGE. Also known as PAPER PROFIT. See also REALIZED GAIN,UNREALIZED LOSS.",palgrave,0,50.84,9.2,12.6,10.83,8.9,9.17,7.75,11.47
UNREALIZED LOSS,"Losses on an ASSET (resulting from a negative change in valuation) that have not yet been realized or “locked in” for ACCOUNTING purposes. An unrealized loss can only be realized through disposal. Also known as PAPER LOSS. See also REALIZED LOSS, UNREALIZED GAIN.",palgrave,0,52.05,8.7,12.6,10.42,8.2,8.21,7.125,11.76
UNREGISTERED STOCK,STOCK that is not registered with the relevant SECURITIES REGULATOR and which cannot therefore be TRADED on a public basis.,palgrave,0,34.26,13.5,0,12.59,13.1,10.16,14,16
UNSECURED,"A financing or LIABILITY that is not backed by any type of support, e.g., no COLLATERAL or GUARANTEE. See also SECURED.",palgrave,0,52.36,8.6,0,6.93,6,11.68,6.25,11.82
UNSECURED CREDITOR,"A CREDITOR that has lent MONEY to an indi- vidual or company without taking any COLLATERAL as SECURITY. See alsoSECURED CREDITOR, UNSECURED DEBT.",palgrave,0,25.96,12.5,0,11.52,9.5,10.39,8.75,15.03
UNSECURED DEBT,A BOND or LOAN without any COLLATERAL back- ing; the sole source of repayment for INVESTORS or LENDERS comes from the DEBTOR’S financial resources. Unsecured debt is most common among BORROWERS/ISSUERS with strong CREDIT RATINGS. See also SECURED DEBT.,palgrave,0,66.74,7.2,10.5,12.75,10.9,11.97,7.166666667,10.33
UNWIND,The process of settling two or more DERIVATIVE transactions between two COUNTERPARTIES in order to reduce CREDIT RISK exposures and crystallize any MARK-TO-MARKET gain or loss. The unwinding process terminates all affected CONTRACTS and is thus a more efficient method than entering into BACK-TO-BACK SWAPS.,palgrave,0,40.18,13.2,0,16.13,17.3,11.42,17.25,17.89
UNWIND PRICE,See TEAR-UP PRICE.,palgrave,0,119.19,-2.7,0,1.52,5.2,0.15,0.5,1.2
UP AND IN OPTION,"A COMPLEX OPTION that creates a standard EUROPEAN OPTION if the price of the UNDERLYING market reference rises above a predefined BARRIER. See also BARRIER OPTION, DOWN AND IN OPTION, DOWN AND OUT OPTION, KNOCK-IN OPTION, REVERSE KNOCK-IN OPTION, UP AND OUT OPTION.",palgrave,0,41.19,12.9,0,11.6,13.8,8.74,13.75,13.25
UP AND OUT OPTION,"A COMPLEX OPTION that extinguishes a stand- ard EUROPEAN OPTION if the price of the UNDERLYING market reference rises above a predefined BARRIER. If the barrier is not breached the European option remains in effect. See also BARRIER OPTION, DOWN AND IN OPTION, DOWN AND OUT OPTION, KNOCK-OUT OPTION, REVERSE KNOCK-OUT OPTION, UP AND IN OPTION.",palgrave,0,44.03,11.8,13,11.43,12.1,8.51,12.33333333,11.77
UPFRONT COLLATERAL,A process where an institution takes initial COLLATERAL from its COUNTERPARTY in an amount sufficient to cover expected POTENTIAL EXPOSURE for the entire life of the transaction. Under this arrangement no periodic evaluations or collateral calls are required. See also PERIODIC COLLATERAL.,palgrave,0,23.43,13.5,15.5,15.94,13.4,10.72,11.66666667,16.08
UPSTAIRS MARKET,"TRADES executed through a BROKER/DEALER, or between two broker/dealers, that do not flow through an EXCHANGE. Upstairs market transactions cannot occur at prices that are prejudicial to cus- tomers. See also CROSSED TRADE.",palgrave,0,60.31,7.6,10.5,13.55,11.2,9.92,6.166666667,8.04
UPSTREAM,"(1) The process of channeling funds from a SUBSIDIARY to a PARENT or HOLDING COMPANY. This may occur when the parent or holding company is restricted in some way from raising funds directly. (2) The segment of the energy industry that is focused on exploration, extraction, and produc- tion. See also DOWNSTREAM.",palgrave,0,53.92,10,13,10.32,10.9,10.57,11.66666667,12.3
UPTICK,See PLUS TICK.,palgrave,0,119.19,-2.7,0,-4.29,-1.2,9.05,0.5,1.2
UPTICK RULE,"A rule imposed by the SECURITIES AND EXCHANGE COMMISSION that only permits a SHORT SALE in a SECURITY or INDEX ARBITRAGE program to be initiated on a PLUS TICK or ZERO PLUS TICK. The rule is intended to halt a self-fulfilling downward spiral, where each downtick leads to further short selling.",palgrave,0,45.59,13.2,0,10.33,13.8,10.47,16.25,15.69
USANCE,The time period during which a BILL OF EXCHANGE must be paid.,palgrave,0,84.68,4.4,0,5.5,4.2,5.55,6,8.13
USURY,The practice of charging an excessive INTEREST RATE on any class of DEBT or LIABILITY; in many national systems usury is prohibited by law through the establishment of maximum interest rate ceilings.,palgrave,0,22.08,18.1,0,13.41,19.3,11.64,24,21.55
UTILIZATION RATE,"The portion of a REVOLVING CREDIT FACILITY that is drawn down by the BORROWER, and which must be repaid according to scheduled terms.",palgrave,0,48.13,12.3,0,10.51,12.8,11.64,15.5,16.16
VALORIZATION,"A process used by a government authority to artifi- cially support or increase the price of an ASSET or COMMODITY, often by constraining SUPPLY.",palgrave,0,30.2,15,0,11.55,14.3,11.41,17,16.27
VALUATION,See CORPORATE .,palgrave,0,-6.7,14.7,0,4.2,10.2,11.63,1.5,20.8
VALUE-ADDED TAX (VAT),"An indirect TAX applied in certain national sys- tems that is payable by producers and consumers of goods and services. A tax is levied on each incremental stage of the production process that adds value to the good or service being produced. See also AD VALOREM.VAR1−α(rp ) = − min{z | ( P(rp ≤ z) > α)}where rp is the return on a portfolio of assets, P is the probability, 1 – α is the confidence level (e.g., α set to 1% or 5%), z is the relevant Z-SCORE. See alsoBACKTESTING, EXTREME VALUE THEORY, MAXIMUM LOSS, PROFIT AND LOSS EXPLAIN.",palgrave,0,55.78,11.4,13.4,8.07,12.3,11.13,15.75,14.57
VALUE CHAIN,"A sequence of linked activities supporting the production of a good, where each activity adds a particular value to the end product. Common value chain activities include logistics, production, marketing, and distribution, along with supporting functions such as research and develop- ment, human resources, and technology.",palgrave,0,22.75,15.8,0,16.83,18.5,11.99,18,17.9
VALUE DATE,"The date on which funds become GOOD MONEY, or a SECURITIES or FOREIGN EXCHANGE transaction is settled. Also known asSETTLEMENT DATE.",palgrave,0,52.36,8.6,0,11.34,8.9,8.67,5.75,9.91
VALUED CONTRACT,"An INSURANCE POLICY that provides the INSURED with a stated payout amount, agreed on an ex-ante basis, in the event of a loss. Valued contracts are generally associated with life insurance policies, which specify a certain sum payable to the BENEFICIARY upon the death of the insured. See also INDEMNITY CONTRACT.",palgrave,0,45.76,11.1,12.5,11.54,11.4,10.98,11.16666667,12.29
VANILLA,"A standard or conventional financial transaction, rather than one with esoteric or complex parameters, RISKS, or PAYOFF profiles.Since vanilla transactions are common, they tend to feature the greatest LIQUIDITY and the narrowest BID-OFFER SPREADS. Also known as PLAIN VANILLA.",palgrave,0,26.3,14.4,0,17.06,17.2,12.3,14.75,16.01
VAR,See VALUE-AT-RISK.,palgrave,0,77.91,2.9,0,10,19.6,11.63,0,0.8
VARIABLE ANNUITY,"An ANNUITY where PREMIUMS received from the INVESTOR are used to purchase accumulation units with variable value deter- mined by the worth of the SECURITIES in the INSURER’s INVESTMENT PORTFOLIO. When the benefits are ultimately paid to the ANNUITANT, units are converted into a fixed number, crystallizing the payout.",palgrave,0,29.69,15.2,0,14.39,16.8,11.62,18.25,19.6
VARIABLE COST,"An expense that changes in proportion to a company’s output, increasing as output increases and decreasing as output decreases (e.g., raw materials used in production). Variable cost is one of two elements, along with FIXED COST, which comprise TOTAL COSTS. It can also be computed as the sum of the MARGINAL COSTS.",palgrave,0,53.92,10,14.1,10.67,11.2,10.87,12.33333333,15.38
VARIABLE LIFE ASSURANCE,"In the United Kingdom, form of life ASSURANCE in which PREMIUMS are invested in UNIT TRUSTS and where the amount of coverage can be altered by the INSURED. See also VARIABLE LIFE INSURANCE.",palgrave,0,63.19,8.5,0,9.51,9.2,9.24,10.75,12.66
VARIABLE LIFE INSURANCE,"In the United States, a form of whole life INSURANCE in which PREMIUMS are invested in a range of SECURITIES on a TAX-deferred basis. Since the policy features standard INVESTMENT RISKS it is treated as a form of security and sold with a PROSPECTUS. See also VARIABLE LIFE ASSURANCE.",palgrave,0,54.93,9.6,12.5,9.63,9.3,9.92,10.83333333,13.05
VARIABLE LIMIT,"A provision in a PROPERTY AND CASUALTY INSU- RANCE POLICY that automatically increases the size of the INSURED’s limit at each anniversary date, to coincide with increased value attributable to the underlying property being insured. The insured retains the sole right not to increase the limit on each specified date.CERTIFICATE OF DEPOSIT.",palgrave,0,19.71,17,0,14.68,17.8,11,19.5,19.63
VARIABLE RATE DEMAND NOTE,"A NOTE issued by a BANK that pays a FLOATING RATE based on PRIME RATE or LIBOR, and which is redeemable on demand by the INVESTOR.",palgrave,0,78.93,8.7,0,5.98,10.6,10.39,13,10.4
VARIABLE RATE MORTGAGE,"In the United Kingdom, an ADJUSTABLE RATE MORTGAGE.",palgrave,0,71.82,5.2,0,10.8,8.5,7.98,3,3.2
VARIABLE RATE NOTE (VRN),"A form of FLOATING RATE NOTE where both the reference INTEREST RATE (e.g., LIBOR, EURIBOR) and the MARGIN over the reference are adjusted at periodic intervals, generally every quarter. The resetting of the margin is a function of SUPPLY and DEMAND conditions, as well as the market perception of the ISSUER’s CREDITWORTHINESS.STOCK.",palgrave,0,28.17,15.8,0,13.23,17.1,11,19,18.86
VARIANCE,"A measure of RISK, variability, or dispersion, reflecting the mag- nitude by which an outcome differs from the EXPECTED VALUE, or the degree to which an observation deviates from the MEAN of a distribution. Variance, which is the second MOMENT about the mean and equal to the STANDARD DEVIATION squared, can be computed as:⎣⎦where xi is an observation, μ is the mean, and N is the number of observations.",palgrave,0,36.46,16.7,0,10.57,18.8,10.38,22.75,19.6
VARIANCE/COVARIANCE MATRIX,"A matrix of COVARIANCES between the variables in a vector, reflecting VARIANCES on the diagonal and covari- ances on the off-diagonal. The matrix is commonly used in PORTFOLIO ana- lysis and VALUE-AT-RISK computations. The general form of a two-variable matrix is given as:σ2⎣where x, y are variables, cov is the covariance between the variables and σ2 is the variance of each variable.greater than implied volatility, and losses are smaller when the reverse occurs). Variance swaps are often used in the EQUITY and FOREIGN EXCHANGE mar- kets. See also REALIZED VOLATILITY SWAP.(1) See also INITIAL MARGIN, CLEARING MARGIN.",palgrave,0,43.32,12,12.7,12.88,13.8,11.11,12.5,11.88
VAT,See VALUE-ADDED TAX.,palgrave,0,93.81,0.9,0,5.35,8.3,9.05,0.5,1.2
VEGA,"The change in the value of an OPTION for a change in VOLATILITY, with all other variables held constant. The vegas of the CALL OPTION and PUT OPTION computed under the BLACK-SCHOLES MODEL (which are equiva- lent) are given by:N’(d ) =12pand S is the STOCK price, t is the time to MATURITY, σ is the STANDARD DEVIATION, and where the value of N’(d1) can be obtained from a standard table of PROBABILITY functions.The vegas of long and short puts and calls are shown as:Also known as KAPPA, LAMBDA. See also DELTA, GREEKS, THETA, RHO,GAMMA.",palgrave,0,48.17,14.3,11.2,9.24,16.5,10.73,17.83333333,14.65
VEGA NEUTRAL,"A PORTFOLIO of OPTIONS that is neutral with respect to its VEGA, meaning that it is HEDGED against moves in VOLATILITY. See alsoDELTA NEUTRAL, GAMMA NEUTRAL, THETA NEUTRAL.",palgrave,0,65.73,7.6,0,11.13,10,11.1,7,8.46
VELOCITY OF MONEY,"The average number of times a given unit or amount of MONEY in a system changes hands (or is spent) over a defined time period. Velocity is used in various economic theories, such as the QUANTITY THEORY OF MONEY. Also known as VELOCITY OF CIRCULATION.",palgrave,0,47.79,10.3,13.6,8.05,7.7,9.64,10.83333333,14
VERTICAL LAYERING,"A practice where different REINSURERS assume the RISK of different loss layers under an EXCESS OF LOSS (XOL) REINSURANCE agreement. Each reinsurer becomes liable for its own layer of coverage between a specific ATTACHMENT level and individual POLICY CAP. Under this approach not every reinsurer is susceptible to losses and CLAIMS once the underlying DEDUCTIBLE is exceeded; the higher vertical layers may not be exposed unless the losses are large. See also EXCESS LAYER, HORIZONTAL LAYERING.",palgrave,0,35.27,13.1,14.9,13.98,14,10.81,13.75,14.97
VERTICAL MERGER,"A MERGER between companies that represent differ- ent components or stages of the service or industrial process. A vertical merger may be arranged if a company wishes to control or influence the majority of the processes that are used in the production of goods and services, including raw material extraction, processing, production, warehousing, transporting, shipping, and retailing. See also CONGLOMERATE MERGER, HORIZONTAL MERGER.",palgrave,0,24.78,15,17.9,15.95,17,11.7,17.16666667,19.83
VERTICAL SPREAD,"See BEAR SPREAD, BULL SPREAD.",palgrave,0,117.16,-1.9,0,4.96,4.6,0.25,1.5,2
VESTED BENEFIT,"A benefit, such as a PENSION or STOCK ownership inter- est, that is owed by a company to an employee, and which the employee is entitled to if he/she departs.",palgrave,0,49.49,13.8,0,7.09,13.8,9.86,21,17.33
VESTED INTEREST,"A right of ownership in, and use of, an ASSET on an immediate basis, and which is not dependent on the outcome of a future event.",palgrave,0,62.01,11.1,0,5.35,10.4,9.78,16,15.02
VIE,See VARIABLE INTEREST ENTITY.,palgrave,0,8.2,13.1,0,13.05,11.2,15.68,3,21.6
VIS MAJOR,"Literally, “overpowering force;” an unavoidable calamity or catastrophic event that can impact the financial profile of a firm, causing it to seek RISK TRANSFER solutions through INSURANCE, REINSURANCE, or DERIVATIVES. See also FORCE MAJEURE.",palgrave,0,28.84,13.5,0,16.88,16,13.3,13,17.39
VISIBLE,"Any good that is exported from, or imported into, a country. Visibles form a key element of a country’s BALANCE OF TRADE and BALANCE OF PAYMENTS accounts. See also IN ASSET.",palgrave,0,69.48,6.1,9.7,7.05,5.4,8.73,5.5,9.28
VISIBLE LIQUIDITY,See DISPLAYED LIQUIDITY.,palgrave,0,9.21,12.7,0,15.03,14.6,14.31,1.5,14.53
VISIBLE MARKET,Any SECURITIES market that provides a significant or total degree of transparency with regard to ORDER BOOKS and EXECUTION. EXCHANGES and ELECTRONIC COMMUNICATIONS NETWORKS are the main examples of such markets. See also DARK POOL.,palgrave,0,42.68,10.2,11.9,13.67,10.9,11.44,7.166666667,12.68
VIX,See VOLATILITY INDEX,palgrave,0,34.59,9.2,0,9.23,8.3,14.31,1.5,14.53
VOIDABLE CONTRACT,A valid CONTRACT that can be cancelled for cause on the basis of FRAUD or MISREPRESENTATION.,palgrave,0,63.7,8.4,0,9.97,9.2,10.35,8,8.9
VOLATILITY,"A measure of the price movement of a reference ASSET or market; in general, a reference with high volatility is deemed to be riskier than one with low volatility. Measures of volatility may be backward-look- ing (HISTORICAL ) or forward-looking (IMPLIED ) and are used in a broad range of financial applications, including pricing of OPTIONS and other DERIVATIVES, computation of CREDIT RISK exposure, and determination of VALUE-AT-RISK. See also STANDARD DEVIATION, VARIANCE, VEGA,  SKEW,  SMILE,  STRATEGY.",palgrave,0,20.72,16.6,17.1,14.51,18,10.98,18.83333333,16.4
VOLATILITY INDEX (VIX),"An INDEX that is used in the OPTION market that reflects the price movement of an EQUITY index. The VIX, which is man- aged by the Chicago Board Options EXCHANGE, is often used as a proxy of RISK AVERSION, with a high VIX level representing market fear and risk aversion,and a low VIX level representing market confidence and expanded risk appe- tite. The value of the VIX is obtained through a weighted average of IMPLIED VOLATILITIES, and results in an estimate of future volatility.",palgrave,0,51.52,13,13.6,10.1,15.1,9.72,17.33333333,15.01
VOLATILITY SKEW,"The difference in VOLATILITY between OUT-OF-THE- MONEY PUT OPTIONS and CALL OPTIONS. In certain markets puts trade at a higher IMPLIED VOLATILITY than calls, reflecting the fact that buyers and sellers value RISK protection more highly on the downside than on the upside. See also VOLATILITY SMILE.",palgrave,0,55.54,9.4,11.2,12.64,11.7,9.12,8.833333333,8.83
VOLATILITY SMILE,"A comparison of the IMPLIED VOLATILITY of an OPTION with its STRIKE PRICE. A “conventional” smile attributes greater implied volatility to IN-THE-MONEY OPTIONS and OUT-OF-THE-MONEY OPTIONS, although in some markets out-of-the-money options trade at the highest volatility under the assumption that INVESTORS wish to protect against the disaster scenario (which occurs more frequently than financial theory normally suggests, i.e., the FAT TAIL phenomenon) by purchasing less expensive out-of-the-money contracts.See also VOLATILITY SKEW.",palgrave,0,18.02,19.7,0,19.16,27,11.56,27,21.07
VOLATILITY SWAP,"A general class of OVER-THE-COUNTER SWAPS involv- ing the exchange of realized (actual) VOLATILITY of an UNDERLYINGreference for fixed volatility. Volatility swaps provide a mechanism for directly participating in, or protecting against, ASSET or market movement, obviating the need for indirect participation using OPTIONS. Volatility swaps generally have MATURITIES ranging from 6 months to 5 years, and can be structured in the form of REALIZED VOLATILITY SWAPS and VARIANCE SWAPS.",palgrave,0,22.45,15.9,17.9,16.42,18.2,11.33,18.33333333,16.75
VOLUME,See TURNOVER.See also TIME WEIGHTED AVERAGE PRICE.,palgrave,0,55.91,7.2,0,14.86,11.7,10.75,3.5,8.51
VOLUMETRIC RISK,"The RISK of loss from volume imbalances, which can be impacted by changes in both price and quantity. Certain RISK MANAGEMENT structures, such as MULTIPLE TRIGGER PRODUCTS, allow simultaneous management of both dimensions of RISK.",palgrave,0,45.25,11.3,0,14.09,13.7,10.37,12.75,15
VOLUNTARY BANKRUPTCY,"A process where a DEBTOR files a petition for BANKRUPTCY protection, invoking an AUTOMATIC STAY. Once filed, the debtor’s operations may be placed under the management of a TRUSTEE (or administrator) or they may remain with the debtor itself (who becomes a DEBTOR-IN-POSSESSION). See also IN.",palgrave,0,55.95,9.3,13,11.88,11.5,10.23,10.66666667,13.95
VOLUNTARY LIQUIDATION,"LIQUIDATION of a company that has become insolvent, following approval by SHAREHOLDERS, and in some systems CREDITORS. Any proceeds from the liquidation are apportioned to creditors and INVESTORS in order of seniority.",palgrave,0,29.86,13.1,0,15.6,14.1,9.36,13,13.9
VORSTAND,[GER] The MANAGEMENT BOARD of a German CORPO- RATION. See also AUFSICHTSRAT.,palgrave,0,56.93,6.8,0,8.17,7.1,11.83,3,9.07
VOSTRO,"Literally “your account”; a local account held on behalf of a foreign BANK to accommodate local CURRENCY business, e.g., a Japanese bank maintains a US bank’s yen vostro account so that the US bank can man- age its yen inflows and outflows. See also NOSTRO.",palgrave,0,48.64,12.1,0,9.46,12.1,10.37,13.75,12.56
VOTING CAP,"Corporate or regulatory provisions allowing companies to restrict votes to a particular percentage of a company’s STOCK, regardless of the ownership stake held. Voting caps can be used as an ANTITAKEOVER DEFENSE or as a method of diffusing the power of control blocks.",palgrave,0,41.19,12.9,0,12.82,14.1,12.05,16.75,19.76
VOTING RIGHTS,"Legal rights accorded to SHAREHOLDERS, allowing them to vote for specific topics at a company’s ANNUAL GENERAL MEETING or dur- ing a special meeting. In most instances, each SHARE is granted one vote.",palgrave,0,54.73,9.7,0,11.08,10.8,11.15,11.75,13.87
VRCD,See VARIABLE RATE CERTIFICATE OF DEPOSIT.,palgrave,0,56.93,6.8,0,12.98,9.8,9.2,3,9.07
VRN,See VARIABLE RATE NOTE.,palgrave,0,92.8,1.3,0,4.35,4.1,7.78,1,1.6
VULTURE BID,"A deep-discount BID by an INVESTOR or INVEST- MENT group for DISTRESSED ASSETS or SECURITIES of uncertain worth, or those that must be liquidated by an eager seller. See also FIRE SALE, VULTURE FUND.",palgrave,0,62.68,8.7,0,9.74,10.1,10.05,10.5,10.33
VULTURE FUND,"A LIMITED PARTNERSHIP or private fund that invests in DISTRESSED ASSETS, including SECURITIES and real property. Also known as a DISTRESSED FUND.",palgrave,0,43.39,9.9,0,13.44,10.6,11.36,7,13.49
VWAP,See VOLUME WEIGHTED AVERAGE PRICE.,palgrave,0,49.48,7.6,0,11.92,9.3,13.36,2.5,10
W FORMATION,See DOUBLE BOTTOM.,palgrave,0,59.97,5.6,0,3.43,5.2,0.15,0.5,1.2
WAC,See WEIGHTED AVERAGE COUPON.,palgrave,0,50.5,7.2,0,11.6,10,15.68,2,11.6
WACC,See WEIGHTED AVERAGE COST OF CAPITAL,palgrave,0,48.47,8,0,9.15,5.9,9.2,4,9.07
WAGERING CONTRACT,See GAMING CONTRACT.,palgrave,0,59.97,5.6,0,7.32,8.3,14.31,0.5,1.2
WAIVER,The act by one or more CREDITORS of temporarily or permanently permitting the breach of a previously established COVENANT under a LOAN or financing agreement in order to avoid an EVENT OF DEFAULT or CREDIT EVENT.,palgrave,0,34.94,17.3,0,11.67,19.7,11.56,25,22.18
WAIVER OF PREEMPTIVE RIGHTS,"An INVESTOR’s agreement to relin- quish the affirmative right to obtain new SHARES of COMMON STOCK when they are issued. Once a waiver is granted, the investor has no further legal abil- ity to take up shares before they are offered in the marketplace at large. See alsoPREEMPTIVE RIGHT, RIGHTS ISSUE.",palgrave,0,62.68,8.7,8.8,10.15,10.2,10.67,8.5,9.15
WALL STREET,"The collective group of FINANCIAL INSTITUTIONS and EXCHANGES in New York, a small number of which are physically located on Wall Street. Also known as THE STREET.",palgrave,0,57.77,8.6,0,10.72,9.1,8.4,8.25,12.81
WALLPAPER,Any SECURITY that has become worthless.,palgrave,0,48.47,8,0,11.07,8.3,9.2,3,9.07
WAM,See WEIGHTED AVERAGE MATURITY.,palgrave,0,-8.73,15.5,0,14.5,12.4,15.68,3,21.6
WAR CHEST,"(1) Cash and NEAR CASH held by a company or RAIDER for the express purpose of acquiring another company, often via a HOSTILE TAKEOVER. (2) Funds that can be used by a TARGET company to defend against a possible hostile takeover attempt, i.e., repurchasing shares in the mar- ket, declaring a SPECIAL DIVIDEND for existing SHAREHOLDERS.",palgrave,0,14.64,25.1,0,11.27,30.1,12.62,38,25.97
WAREHOUSE BOND,A SURETY BOND guaranteeing that goods or INVENTORY stored in a public warehouse will be delivered upon presentation of authorizing documents.,palgrave,0,16.32,16.2,0,15.84,16.2,12.2,16.5,19.83
WAREHOUSE RECEIPT,"Documentary evidence of INVENTORY placed in storage in a public warehouse. A warehouse provides no GUARANTEE as to the quality or condition of the inventory and does not provide INSURANCE against damage; it simply evidences existence of the inventory. Inventory blocked by a warehouse receipt can only be sold or transferred by the bearer of the receipt, W meaning the receipt functions as a mechanism for collateralizing a LOAN.",palgrave,0,31.21,14.6,15.5,12.94,14.7,10.27,16.16666667,15.58
WAREHOUSING,"(1) The process of holding ASSETS, such as MORTGAGES, ACCOUNTS RECEIVABLE, or corporate BONDS and LOANS, in a CONDUIT until they are repackaged for SECURITIZATION. The institution warehousing the securities faces full MARKET RISK and CREDIT RISK on the underlyingassets. (2) The process of assuming a RISK position (e.g., a block of SECURITIES) in advance of a HEDGE or sale to another party.",palgrave,0,31.04,16.8,0,12.2,19,11.97,21.25,18.31
WARRANTY,"A PLEDGE by a company, INSURED, or SECURITIES ISSUER indicating that specific conditions related to the commencement or fulfill- ment of a CONTRACT exist. Warranties may be relied upon by another party to the transaction as an element of the contract, and any breach may lead to cancellation. See also REPRESENTATION.",palgrave,0,37.3,12.3,14.6,12,11.8,10.67,12.5,14.64
WASH SALE,"The purchase and sale of a SECURITY over a short time frame, which, for nonfinancial institutions operating in certain national systems, may qualify for TAX loss benefits. Wash sales that are done in a coordinated fashion with other parties with the intent of manipulating or PEGGING the price of a security are illegal. See also BED AND BREAKFASTING.",palgrave,0,43.43,12,14.6,11.55,12.1,9.22,13.66666667,15.31
WASTING ASSET,"Any ASSET with a value that decays over time, such as a LEASE or plant and equipment.",palgrave,0,88.06,5.2,0,5.28,6.2,8.19,7.5,6.8
WATERED STOCK,"COMMON STOCK of a company with ASSETS that are overvalued and do not accurately convey the financial position of the firm. Watered stock may also arise from companies that feature significant operating losses, excessive DIVIDEND payments, or overcapitalized operations.coverage tests are not necessary as cash flow is distributed in order of seniority until proceeds are exhausted. Also known as CASH FLOW WATERFALL.",palgrave,0,25.08,14.9,16.7,15.37,15.9,11.54,16,19.25
WEAK HANDS,"A holder of an EXCHANGE-TRADED DERIVATIVE that is not expecting to receive or take delivery of the underlying ASSET, intending instead to close out the position prior to EXPIRY or EXERCISE. RETAIL INVESTORS and SPECULATORS typically have “weak hands.” See alsoSTRONG HANDS.",palgrave,0,33.24,13.8,0,14.04,15.1,11.07,15.5,16.97
WEALTH,"The total of all ASSETS that can produce INCOME, typically meas- ured net of any LIABILITIES required for supporting such assets.",palgrave,0,41.7,12.7,0,12.01,13.5,11.45,13.5,14.11
WEALTH EFFECT,"The change in AGGREGATE DEMAND for a given change in the value of ASSETS. In general, an increase in the value of assets can lead to growth in consumption and a decline in SAVINGS, while a reduction in the value of assets can lead to the reverse.",palgrave,0,64.54,10.1,0,7.2,10.4,7.83,13.75,11.95
WEATHER DERIVATIVE,"An EXCHANGE-TRADED DERIVATIVE or OVER- THE-COUNTER DERIVATIVE with an UNDERLYING reference based on the performance of noncatastrophic weather references such as temperature, precipitation, wind, and streamflow. TEMPERATURE DERIVATIVES and PRECIPITATION DERIVATIVES are the two most common forms of weather derivatives.",palgrave,0,0.42,18.2,0,22.16,21.5,10.16,17.5,17
WEIGHTED AVERAGE,A method of computing the MEAN of a set of vari- ables by assigning a weight to each observation which is related to its overall contribution to the entire set of variables.CAPITAL.,palgrave,0,47.46,14.6,0,9.93,16.7,11.14,22,19.05
WEINER PROCESS,"A STOCHASTIC PROCESS that is normally distributed with EXPECTED VALUE of 0 and VARIANCE of 1 at each time interval t. Under a Weiner process, values at time t and t + 1 are independent (i.e., they havea CORRELATION COEFFICIENT of 0), meaning that a Weiner process is also a MARKOV PROCESS. The Weiner process is used in certain OPTION pricing models.",palgrave,0,59.33,10,12.5,9.17,11.1,10.34,13,13.37
WET BARRELS,"Physically delivered, rather than financially settled, crude oil. TRADERS dealing in wet barrels generally have need of the physical commodity for production, refining, or supply purposes.",palgrave,0,24.44,13.1,0,16.86,14.6,13.39,11,19.05
WET LEASE,"A LEASE agreement used in the airline industry, where one air- line (acting as LESSOR) provides an aircraft to a second airline (the LESSEE), along with associated crew, maintenance, and insurance. The lessee supplies fuel and pays for airport fees and duties.",palgrave,0,58.62,10.3,0,11.43,13.6,11.07,12.5,12.21
WHEN-IN-THE-MONEY OPTION,See CONTINGENT PREMIUM OPTION.,palgrave,0,8.2,13.1,0,14.5,12.4,15.68,3,21.6
WHEN-ISSUED (WI) SECURITY,"Any SECURITY that has been announced but not yet priced or settled. While in the “WI” period informal, but legally binding, GRAY MARKET TRADING occurs between DEALERS. Once the WI security has settled, it trades in the same manner as all other SEASONED SECURITIES. See also TO BE ANNOUNCED, WHEN-ISSUED TREASURY.",palgrave,0,58.48,8.3,9.5,10.6,9.2,9.84,6.625,8.26
WHEN-ISSUED TREASURY (WIT),"A US TREASURY NOTE or TREASURY BOND that has been announced but not yet priced or settled. While in the “WI” period informal, but legally binding, GRAY MARKET TRADING occurs between DEALERS. Once the WIT has settled, it trades in the same manner as all other seasoned Treasury issues. See also TO BE ANNOUNCED, WHEN-ISSUED SECURITY.",palgrave,0,65.73,7.6,8.1,9.91,8.9,9.69,6.75,7.74
WHIPSAW,"A fall in the price of a SECURITY, triggering a STOP LOSS ORDER and sale, followed by a price rebound. Alternatively, a rise in the price, triggering a buy order and purchase, followed by a price decline.",palgrave,0,61.16,9.3,0,7.95,9.2,7.54,11.25,10.64
WHISPER NUMBERS,"The release of projected corporate earnings guidance by a company’s management in advance of a full public announce- ment. In the United States this has been limited through SECURITIES AND EXCHANGE COMMISSION REGULATION FAIR DISCLOSURE, which prohib- its selective disclosure to specific parties such as BANK research analysts.",palgrave,0,30.2,15,0,16.25,18,11.74,18.5,19.6
WHISPER STOCK,The COMMON STOCK of a company that is rumored to be the target of a potential TAKEOVER transaction. A whisper stock may exhibit unusual price and volume patterns as a result of the rumors.,palgrave,0,62.68,8.7,0,8.52,8.5,10.05,11,11.51
WHISTLEBLOWER,An employee who reports internal infractions to senior levels of management in order to reveal or contain a problem. A whistle- blower often comes in contact with information that might not be apparent or available to other control functions and is thus an additional element of the GOVERNANCE process.,palgrave,0,38.15,14,0,12.71,15.2,12.26,16.75,17.15
WHITE KNIGHT,"A company that assumes the role of a friendly partner by acquiring a controlling stake in a company that is the subject of a HOSTILE TAKEOVER. See also BLACK KNIGHT, GRAY KNIGHT, WHITE SQUIRE.",palgrave,0,71.14,7.6,0,8.87,9.1,8.66,10.5,9.15
WHITE SQUIRE,"A company that assumes the role of a friendly part- ner by acquiring a substantial, though not controlling, stake in a company that is the subject of a HOSTILE TAKEOVER. See also BLACK KNIGHT, GRAY KNIGHT, WHITE KNIGHT.",palgrave,0,69.11,8.3,0,9.46,10.6,8.73,12,10.76
WHOLE LIFE ASSURANCE,"In the United Kingdom, WHOLE LIFE INSURANCE.",palgrave,0,64.37,6,0,9.87,7.6,6.24,3.5,8.51
WHOLE LIFE INSURANCE,"A form of life INSURANCE in which the INSURER pays the INSURED’s BENEFICIARY a defined sum on the death of the insured, and which is characterized by fixed PREMIUM payments and a SURRENDER VALUE that builds over time through INVESTMENT of premiums. See alsoWHOLE LIFE ASSURANCE.",palgrave,0,48.13,12.3,0,12.02,13.9,10.61,16.5,17.9
WHOLE LOAN,"A commercial or residential MORTGAGE sold to an INVESTOR complete with servicing rights (e.g., collection of PRINCIPAL and INTEREST). Whole loans are periodically sold to CONDUITS for subsequent private labelSECURITIZATION.",palgrave,0,22.41,13.9,0,18.26,16.5,13.85,12,18
WHOLESALE BANKING,"A business model followed by certain BANKS where the focus of activities is on corporate and institutional, rather than retail, cus- tomers. Dedicated wholesale banks do not operate large branch networks.",palgrave,0,47.28,10.5,0,14.03,12.7,11.54,10.25,12.65
WHOLLY OWNED SUBSIDIARY,A SUBSIDIARY that is 100% owned by a PARENT or HOLDING COMPANY.,palgrave,0,76.22,5.6,0,6.02,5,9.5,6,4.8
WI,See WHEN-ISSUED SECURITY.,palgrave,0,9.21,12.7,0,15.03,16.2,14.31,1.5,14.53
WIDOWS AND ORPHANS,An individual or institution that is con- sidered to be an unsophisticated INVESTOR. Certain SECURITIES laws exist to protect widows and orphans from being financially damaged through bad financial advice or FRAUD. See also AUNT MILLIE.,palgrave,0,33.92,11.5,11.2,13.56,10.9,11.69,7,11.47
WILLINGNESS TO PERFORM,"A COUNTERPARTY’s intent to perform on its financial OBLIGATIONS, unrelated to its financial capability of doing so. In some instances a company may choose not to perform on its contracts if it believes it has been misguided by a financial INTERMEDIARY or its AGENT, or if legal or regulatory circumstances forbid it from completing its OBLIGATIONS. See also ABILITY TO PERFORM.",palgrave,0,33.95,13.6,15.9,12.36,13.2,9.82,15.16666667,15.33
WINDING-UP,See LIQUIDATION.,palgrave,0,-6.7,14.7,0,10,14.9,11.63,1,20.8
WINDOW DRESSING,"The practice of altering the appearance of cor- porate FINANCIAL STATEMENTS through various short-term transactions, with the primary goal of presenting an improved financial position during reporting periods. Although such alterations may be legal from a strict ACCOUNTING and regulatory standpoint, they may be ethically questionable.",palgrave,0,14.29,17,0,18.98,19.9,13.02,19.5,22.24
WIRE TRANSFER,"An electronic ORDER for the payment of funds from one party to another. Various wire mechanisms exist to accommodate such transfers, including the Fed Wire, CLEARINGHOUSE AUTOMATED PAYMENT SYSTEM, and the CLEARINGHOUSE INTERBANK PAYMENT SYSTEM.",palgrave,0,28.33,13.7,0,16.41,15.6,9.92,13.75,16.14
WIT,See WHEN-ISSUED TREASURY.,palgrave,0,59.97,5.6,0,15.03,16.2,14.31,0.5,1.2
WITH RECOURSE,An implicit legal right giving the holder of a BILL OF EXCHANGE legal recourse to the seller of the bill in the event the DRAWER fails to pay. This right exists unless the bill is specifically endorsed to readWITHOUT RECOURSE.,palgrave,0,59.64,9.9,0,9.57,10.6,8.58,11.5,11
WITHHOLDING TAX,Any TAX that is withheld at the source of the INCOME. Withholding taxes are commonly applied to wages and certainDIVIDENDS.,palgrave,0,61.33,7.2,0,10.82,8.1,10.45,5.5,10
WITHOUT,"An indication that only a one-way quote is available on a particular SECURITY; rather than quoting a standard BID and OFFER, a MARKET MAKER or DEALER may quote a “bid without” or an “offer without.”",palgrave,0,35.95,16.9,0,9.82,18.2,9.43,20.5,17.43
WITHOUT PREJUDICE,"A declaration made by a party so that any informa- tion covered by the declaration is privileged and protected, and cannot there- fore be used in a legal proceeding or as legal evidence.",palgrave,0,37.98,16.2,0,9.7,17.1,10.06,23.5,20.47
WITHOUT RECOURSE,An amendment to a BILL OF EXCHANGE indicating that the holder of the bill has no legal recourse to the seller of the bill in the event the DRAWER fails to pay. See also WITH RECOURSE.,palgrave,0,78.59,6.8,0,5.97,6.9,7.6,8.5,8.31
WMBA,See WHOLESALE MARKETS BROKERS ASSOCIATION.,palgrave,0,-1.29,14.7,0,21.2,16.9,16.52,2.5,10
WORK-IN-PROCESS INVENTORY,"A class of INVENTORY held by a com- pany that includes goods that are in various stages of production but not yet ready for sale. See also FINISHED GOODS INVENTORY, RAW MATERIAL INVENTORY.",palgrave,0,54.73,9.7,0,9.16,9.1,8.76,11.25,11.45
WORKING CAPITAL,"A measure of a company’s short-term operating resources, i.e., CURRENT ASSETS and CURRENT LIABILITIES. Also known as CURRENT CAPITAL, NET CURRENT ASSETS. See also GROSS , NET ,  LOAN.",palgrave,0,36.96,10.3,9.7,11.68,9.9,8.76,5.166666667,8.04
WORKING CAPITAL LOAN,"A short-term business LOAN used to purchase short-term ASSETS, often INVENTORY used for production and resale. The CREDIT may be unsecured or secured on the assets being financed, and is gen- erally payable within 60 to 90 days. See also WORKING CAPITAL.",palgrave,0,57.27,8.8,10.5,10.43,9.4,10.72,7.666666667,9.41
WORKOUT AGREEMENT,"An agreement between a BORROWER and LENDER to restructure existing LOAN terms, including repayment sched- ule, MATURITY, and/or rate, in order to avoid any act of DEFAULT and FORECLOSURE. A loan subject to a workout agreement is likely to be fully covered by a lender’s LOAN LOSS RESERVES. See also NONPERFORMING LOAN, SLOW LOAN.",palgrave,0,53.21,10.3,12.5,11.02,11.6,10.09,11.66666667,13.13
WORLD BANK,See INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD).,palgrave,0,4.14,14.7,0,20.26,16.7,11.93,6,18.2
WORLD TRADE ORGANIZATION (WTO),"A supranational organization, created in 1994 as a successor body to the GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT), that manages functions and negotiations related to multi- lateral TRADE in goods and services.",palgrave,0,21.06,18.5,0,14.23,21.1,12.45,24.5,21.68
WORST-CASE CREDIT LOSS,"A potential extreme CREDIT loss represented by a point multiple STANDARD DEVIATIONS from the MEAN value of the credit LOSS DISTRIBUTION function. Financial institutions allocate CAPITAL in support of worst-case credit losses. See also EXPECTED CREDIT LOSS,UNEXPECTED CREDIT LOSS.",palgrave,0,24.44,13.1,14.1,16.92,14.2,10.76,10.16666667,15.46
WRAP,Any form of GUARANTEE or support applied to a SECURITY to enhance its CREDITWORTHINESS.,palgrave,0,31.89,12.3,0,12.35,10.5,11.1,9,14.17
WRAPAROUND INSURANCE,"An INSURANCE POLICY covering various aspects of SOVEREIGN RISK, including embargo, sanction, loss, abandonment, control, and EXPROPRIATION. See also POLITICAL RISK INSURANCE.",palgrave,0,1.09,15.8,0,19.76,16.8,14.23,11,22.58
WRITE,(1) The process of selling an OPTION. (2) The process of UNDERWRITING an INSURANCE policy for an INSURED.,palgrave,0,53.21,10.3,0,8.87,10.6,12.42,12,13.87
WRITEOFF,"(1) The process of reducing the value of a FIXED ASSET accord- ing to a DEPRECIATION schedule. (2) The process of classifying a CREDIT as uncollectible, and charging it against a BAD DEBT RESERVE or a LOAN LOSS RESERVE.",palgrave,0,40.35,17.3,0,9.06,19.9,12.05,23.5,19.7
WRONGFUL TRADING,"In the United Kingdom, a state where a company continues to operate even though it has reason to believe that it has reached a state of INSOLVENCY. Personal LIABILITIES may accrue to DIRECTORS in certain instances.",palgrave,0,44.75,11.5,0,10.79,11,8.48,12.5,13.87
WTO,See WORLD TRADE ORGANIZATION.,palgrave,0,33.58,9.6,0,13.05,11.2,7.78,2,11.6
XOL AGREEMENT,See EXCESS OF LOSS AGREEMENT.,palgrave,0,83.32,2.9,0,6.12,4.6,10.2,1.5,2
XR,See EX-RIGHTS.,palgrave,0,120.21,-3.1,0,1.3,10.2,19.53,0,0.8
XW,See EX-WARRANT.,palgrave,0,77.91,2.9,0,4.2,12.5,19.53,0,0.8
YANKEE,"A BOND, NOTE, or CERTIFICATE OF DEPOSIT issued in US dollars in the US markets by a foreign company.",palgrave,0,60.65,9.5,0,6.85,8.4,9.57,11.5,9.71
YARD,"Common reference for billion. See also BUCK, TON.",palgrave,0,67.42,4.9,0,5.1,5.3,11.73,1.5,6.6
YIELD ADVANTAGE,"The additional SPREAD an INVESTOR gains from hold- ing a CONVERTIBLE BOND instead of the equivalent COMMON STOCK, typ- ically computed as:YA = FY – DYwhere FY is the FLAT YIELD and DY is the DIVIDEND YIELD. See also SIMPLE BREAKEVEN.",palgrave,0,59.64,9.9,0,9.69,11.3,12.13,12.75,13
YIELD BURNING,An illegal practice in MUNICIPAL BOND refinanc- ings where UNDERWRITERS charge excessive prices for TREASURY BONDS purchased and held in escrow before retirement of existing bonds. The high Treasury prices result in a “burning down” of the YIELD.,palgrave,0,43.73,11.9,0,14.16,14,12.06,13,14.97
YIELD CURVE OPTION,"A SPREAD OPTION that grants the buyer a payoff based on the difference between two points on a YIELD CURVE against a pre- defined STRIKE PRICE. By embedding the two references in a single option CONTRACT, the purchaser gains cost and efficiency advantages.",palgrave,0,58.11,10.5,0,11.02,12.8,10.95,13.75,13.25
YIELD ENHANCEMENT,"A financial strategy designed to increase an INVESTOR’s core RETURNS; most YIELD-enhancing techniques, such as SPREAD trades and COVERED CALL and COVERED PUT strategies, are intended to be low RISK, i.e., limited downside with moderate upside. See alsoARBITRAGE, SPECULATION, HEDGING.",palgrave,0,34.26,13.5,0,16.53,17.4,13.31,14,16
YIELD TO CALL,"A method of measuring the YIELD of a CALLABLE BOND, computed as the percentage annualized RETURN on a BOND to the FIRST CALL date. The general formula is given as:+(1+ y)nwhere C is COUPON INTEREST, y is the yield, n* is the number of periods until the first call date, and M* is the callable bond price. See also YIELD TO MATURITY.",palgrave,0,67.38,9,13,6.79,9.5,9.5,13.33333333,13.44
YIELD TO MATURITY,"A common method of measuring the YIELD on a COUPON-bearing SECURITY, computed as the percentage annualized return on a BOND until its final MATURITY. The general formula is given as:+ y)n(1where C is the COUPON INTEREST, y is the yield, n is the number of periods, and M is the redemption value of the bond at maturity (generally PAR VALUE). Also known as EFFECTIVE YIELD, GROSS REDEMPTION YIELD, PROMISED YIELD. See also YIELD TO CALL.",palgrave,0,52.39,10.6,14.6,9.4,10.7,10.25,13.375,13.92
Z-BOND,See ACCRUAL BOND.,palgrave,0,59.97,5.6,0,1.52,3.6,14.31,1.5,14.53
Z-SCORE,"(1) A measure used to predict the likelihood of BANKRUPTCY. The model is based on a weighted average of five key financial ratios:1.2* WORKING CAPITAL/Total ASSETS +1.4* RETAINED EARNINGS/Total Assets +3.3* EARNINGS BEFORE INTEREST AND TAXES/Total Assets +0.6* MARKET VALUE of EQUITY/BOOK VALUE of DEBT +1.0* Sales/Total AssetsA z-score less than 2.675 is indicative of impending bankruptcy. The original z-score measure has been updated (though not supplanted) by a modified ZetaTM model with proprietary parameters. (2) A statistical measure that indi- cates how many STANDARD DEVIATIONS above or below the MEAN a par- ticular random variable lies; the standard deviation is therefore a unit measure of the z-score, and is given by:where x is the random variable to be standardized, μ is the population MEAN,σis the population STANDARD DEVIATION.(1) Additional reference: Altman (1968).",palgrave,0,9.59,22.9,20.6,14.52,27.5,12.84,24,24.64
ZAIBATSU,[JPN] A Japanese corporate conglomerate with a central company controlling the ownership and activities of other companies. The zaibatsu structure was banned in the mid-1940s and replaced by the KEIRETSU.,palgrave,0,39.33,11.5,0,15.01,13.5,12.8,12,16.67
ZAITECH,"[JPN] Financial SPECULATION undertaken by many Japanese companies in order to boost nonoperating income. The practice was very widespread during the late 1980s and early 1990s, although it continues to feature to some degree. Transactions involving STRUCTURED NOTES and DERIVATIVES, often with LEVERAGED EQUITY and FOREIGN EXCHANGE RISKS, are popular vehicles for zaitech activities.",palgrave,0,27.83,13.9,15.5,16.99,16.3,13.01,13.66666667,17.57
ZERO COST COLLAR,"An OPTION SPREAD consisting of a LONG POSITION in a CAP or CALL OPTION and a SHORT POSITION in a FLOOR or PUT OPTION, or vice versa. The sale of one option offsets the PREMIUM payable on the second option, resulting in “zero cost.” Also known as CYLINDER, RANGE FORWARD, TUNNEL. See also COLLAR.",palgrave,0,61.67,9.1,10.5,7.54,8.7,8.04,10.66666667,10.16
ZERO COUPON BOND,"A deep-DISCOUNT BOND that is sold and traded at a DISCOUNT to PAR VALUE and pays no periodic COUPON interest during the life of the issue. The difference between the discounted value and the parREDEMPTION VALUE generates an implicit RETURN to the INVESTOR. The price of a coupon bond is typically computed as:P = M (1 + r )nwhere r is the DISCOUNT RATE, n is the number of periods, and M is the redemption value of the bond at MATURITY (generally par value).",palgrave,0,43.77,13.9,15,8.59,13.8,10.19,18.33333333,16.29
ZERO COUPON SWAP,An OVER-THE-COUNTER SWAP involvingtheexchange of periodic INTEREST payments by one party in return for receipt ofa single BULLET payment at maturity. A zero coupon swap acts as a de-factoLOAN for the party contracting to pay at maturity.,palgrave,0,35.78,12.9,0,13.46,13.4,10.1,13.25,12.81
ZERO COUPON YIELD CURVE,"A YIELD CURVE representing DISCOUNTRATES across maturities, starting from the present. The zero coupon curve isgenerally constructed from an observable PAR YIELD CURVE through a processknown as STRIPPING THE YIELD CURVE (or BOOTSTRAPPING). The zero cou-pon curve is then used to construct the IMPLIED FORWARD CURVE, which isused to price instruments requiring a forward estimate of rates.",palgrave,0,52.19,10.7,14.1,15.66,15.5,10.95,13.16666667,15.32
ZERO MINUS TICK,"Sale of a SECURITY at the same price as the last transac-tion, but lower than the transaction prior to that one. A SHORT SALE cannotbe initiated on a zero minus tick. See also MINUS TICK, PLUS TICK, ZEROPLUS TICK.",palgrave,0,66.74,7.2,10.5,6.83,6.2,9.14,7.166666667,9.3
ZERO PLUS TICK,"Sale of a SECURITY at the same price as the last transac-tion, but higher than the transaction prior to that one. A SHORT SALE can beinitiated on a zero plus tick. See also MINUS TICK, PLUS TICK, ZERO MINUSTICK.",palgrave,0,66.74,7.2,10.5,6.54,6,8.73,7.166666667,9.3
ZOMBIE,"A company that is in technical INSOLVENCY but continues tooperate, pending the finalization of a RESTRUCTURING, REORGANIZATION,or bailout.",palgrave,0,-6.02,18.6,0,20.12,19.2,12.42,17,22.76