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FinRAD_Financial_Readability_Assessment_Dataset

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1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
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
7.166667
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
18.833333
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
17.333333
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
8.833333
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
18.333333
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
10.666667
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
16.166667
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
13.666667
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
15.166667
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
5.166667
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
7.666667
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
11.666667
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
10.166667
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
13.333333
13.44