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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
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