Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, credit, investment, financial advisor, accounting, stock trading, money, financial,
Definition of AD
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
A protection against borrower fallout risk in the mortgage pipeline.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The net present value analysis of an asset if financed solely by equity
IRS rules used to allocate income on export sales to a foreign sales corporation.
A promise to sell an asset before the seller has lined up purchase of the asset. This
A situation in which market participation is a negative signal.
Certificates issued by a U.S. depositary bank, representing foreign
Net flow of goods (exports minus imports) between countries.
Related: Program trades.
A contract between the exporter and a transportation company in which the latter agrees to
A large trading order, defined on the New York Stock Exchange as an order that consists of
Bonds issued by emerging countries under a debt reduction plan.
A spread strategy in which an investor buys an out-of-the-money put option, financing it by
Agency banks established by Canadian banks in the U.S.
The exchange of goods for other goods rather than for cash; barter.
Cumulative Translation Adjustment (CTA) account
An entry in a translated balance sheet in which gains
Refers to establishing and liquidating the same position or positions within one day's trading.
Dead cat bounce
A small upmove in a bear market.
A classic negative change in ratings for a stock, and or other rated security.
The gross underwriting spread adjusted for the impact of the announcement of the common
1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid,
A member who generally trades only for his own account, for an account controlled by him or
A transaction in which the settlement will occur on a specified date in the future at a price
Graduated-payment mortgages (GPMs)
A type of stepped-payment loan in which the borrower's payments
The fraction of the gross proceeds of an underwritten securities offering that is paid as
Head & shoulders
In technical analysis, a chart formation in which a stock price reaches a peak and declines,
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can
The simultaneous purchase and sale of two options that differ only in their exercise date.
Trades that are the result of either a reallocation of wealth or an implementation of an
Trades in which an investor believes he or she possesses pertinent
Trading by officers, directors, major stockholders, or others who hold private inside
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a
Intramarket sector spread
The spread between two issues of the same maturity within a market sector. For
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
A bond portfolio strategy in which the portfolio is constructed to have approximately equal
Last trading day
The final day under an exchange's rules during which trading may take place in a particular
Payment of a financial obligation earlier than is expected or required.
The commercial or investment bank with the primary responsibility for organizing syndicated
Leading economic indicators
Economic series that tend to rise or fall in advance of the rest of the economy.
A mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of
Arrangement whereby the customer pays for the last delivery when the next one is received.
A straddle in which a long position is taken in both a put and call option.
The foreign market in Spain.
The spread between any two maturity sectors of the bond market.
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net advantage of refunding
The net present value of the savings from a refunding.
Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than
Net advantage to merging
The difference in total post- and pre-merger market value minus the cost of the merger.
No load mutual fund
An open-end investment company, shares of which are sold without a sales charge.
A mutual fund that does not impose a sales commission. Related: load fund
Refer to goods and services produced and consumed domestically that are not close
Option-adjusted spread (OAS)
1) The spread over an issuer's spot rate curve, developed as a measure of
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
Prices after the decision to trade.
Preauthorized electronic debits (PADs)
Debits to its bank account in advance by the payer. The payer's
Prices occurring before or at the decision to trade.
Also called basket trades, orders requiring the execution of trades in a large number of
Trades based on signals from computer programs, usually entered directly from the trader's
Public Securities Administration (PSA)
The trade association for primary dealers in U.S. government
Publicly traded assets
Assets that can be traded in a public market, such as the stock market.
Also called credit spread, the spread between Treasury securities and non-Treasury securities
A member of the exchange who executes frequent trades for his or her own account.
Relative yield spread
The ratio of the yield spread to the yield level.
Entering the opposite side of a currently held futures position to close out the position.
A probability used to determine a "sure" expected value (sometimes called a
return Return earned on an asset normalized for the amount of risk associated with that asset.
A straddle in which one put and one call are sold.
Speculative grade bond
Bond rated Ba or lower by Moody's, or BB or lower by S&P, or an unrated bond.
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.
1) The gap between bid and ask prices of a stock or other security.
Also called margin income, the difference between income and cost. For a depository
A strategy that involves a position in one or more options so that the cost of buying an
A computer program that organizes numerical data into rows and columns on a terminal screen,
As the MBS pool ages, or four to six months after it was passed at least once through the
Purchase or sale of an equal number of puts and calls with the same terms at the same time.
Difference between U.S. Treasury bill rate and eurodollar rate; used by some traders as a
Terms of trade
The weighted average of a nation's export prices relative to its import prices.
A verbal (or electronic) transaction involving one party buying a security from another party. Once a
Written demand that has been accepted by an industrial company to pay a given sum at a future date.
Credit granted by a firm to another firm for the purchase of goods or services.
In an interest rate swap, the date that the counterparties commit to the swap. Also, the date on
A draft addressed to a commercial enterprise. See:draft.
Trade on top of
Trade at a narrow or no spread in basis points relative to some other bond yield, usually
A firm which deals in actual commodities.
Persons who take positions in securities and their derivatives with the objective of making profits.
Buying and selling securities.
Costs of buying and selling marketable securities and borrowing. Trading costs include
Trading of a stock, bond, option or futures contract can be halted by an exchange while news is
CDs purchased by accounts that are likely to resell them. The term is commonly used in the Euromarket.
The posts on the floor of a stock exchange where the specialists stand and securities are traded.
The difference between the high and low prices traded during a period of time;
Traditional view (of dividend policy)
An argument that "within reason," investors prefer large dividends to
Method of indirect taxation whereby a tax is levied at each stage of production on the value
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.