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Definition of ex-dividend date
date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
The change in the value of a firm's foreign currency denominated accounts due to a
The second-largest stock exchange in the United States. It trades
date on which particular news concerning a given company is announced to the public.
For investment companies, the management fee and "other expenses,"
Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining
Related: pure expectations theory.
General term for a document demanding payment.
Designing a portfolio so that its performance will match the performance of some bond index.
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond
Amount used during a particular period to acquire or improve long-term assets such as
A dividend paid in cash to a company's shareholders. The amount is normally based on
A not-for-profit corporation owned by its members. Its primary
The location of five New York futures exchanges: Commodity
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Bowed, as in the shape of a curve. Usually referring to the price/required yield relationship for
Cumulative dividend feature
A requirement that any missed preferred or preference stock dividends be paid
Date of payment
date dividend checks are mailed.
Date of record
date on which holders of record in a firm's stock ledger are designated as the recipients of
Treating cash flows as being received on exact dates - date 0, date 1, and so forth - as
The date on which a firm's directors meet and announce the date and amount of the next
Discounted dividend model (DDM)
A formula to estimate the intrinsic value of a firm by figuring the
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
With respect to a project financing, an arrangement under which the sponsors of a project
A group of shareholders who prefer that the firm follow a particular dividend policy. For
Dividend discount model (DDM)
A model for valuing the common stock of a company, based on the
Dividend growth model
A model wherein dividends are assumed to be at a constant rate in perpetuity.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Dividend payout ratio
Percentage of earnings paid out as dividends.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
An established guide for the firm to determine the amount of money it will pay as dividends.
The fixed or floating rate paid on preferred stock based on par value.
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
The European, Australian, and Far East stock index, computed by Morgan Stanley.
The extent to which the value of the firm will change because of an exchange rate change.
The convexity of a bond calculated with cash flows that change with yields.
In an interest rate swap, the date the swap begins accruing interest.
Also called indexing plus, an indexing strategy whose objective is to exceed or replicate
Ex post return
Related: Holding period return
A bond portfolio management strategy that involves finding the lowest cost portfolio
The expected return of a portfolio based on the expected returns of its component assets and
Except for opinion
An auditor's opinion reflecting the fact that the auditor was unable to audit certain areas
Any excess of actual reserves above required reserves.
Excess return on the market portfolio
The difference between the return on the market portfolio and the
Also called abnormal returns, returns in excess of those required by some asset pricing model.
The marketplace in which shares, options and futures on stocks, bonds, commodities and indices
A nickname for the New York stock exchange. Also known as the Big Board. More than
Governmental restrictions on the purchase of foreign currencies by domestic citizens or
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
The price of one country's currency expressed in another country's currency.
Exchange Rate Mechanism (ERM)
The methodology by which members of the EMS maintain their
Exchange rate risk
Also called currency risk, the risk of an investment's value changing because of currency
The variability of a firm's value that results from unexpected exchange rate changes or the
Security that grants the security holder the right to exchange the security for the
The firm makes a tender offer for a given amount of its own stock while excluding
The process of completing an order to buy or sell securities. Once a trade is executed, it is reported
The difference between the execution price of a security and the price that would have
Instruments exempt from the registration requirements of the Securities Act of 1933 or the
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of
The price at which the underlying future or options contract may be bought or sold.
The amount of advantage over a current market transaction provided by an in-the-money
Exercising the option
The act buying or selling the underlying asset via the option contract.
A variable whose value is determined outside the model in which it is used. Also called
Expectations hypothesis theories
Theories of the term structure of interest rates which include the pure
Expected future cash flows
Projected future cash flows associated with an asset of decision.
Expected future return
The return that is expected to be earned on an asset in the future. Also called the
The return expected on a risky asset based on a probability distribution for the possible rates
Expected return on investment
The return one can expect to earn on an investment. See: capital asset
Expected return-beta relationship
Implication of the CAPM that security risk premiums will be
The weighted average of a probability distribution.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
The percentage of the assets that were spent to run a mutual fund (as of the last annual
Charged to an expense account, fully reducing reported profit of that year, as is appropriate for
The time when the option contract ceases to exist (expires).
An expiration cycle relates to the dates on which options on a particular security expire. A
The last day (in the case of American-style) or the only day (in the case of European-style)
Export-Import Bank (Ex-Im Bank)
The U.S. federal government agency that extends trade credits to U.S.
Offsetting exposures in one currency with exposures in the same or another currency,
The official seizure by a government of private property. Any government has the right to
Bond whose maturity can be extended at the option of the lender or issuer.
Note the maturity of which can be extended by mutual agreement of the issuer and
Voluntary arrangements to restructure a firm's debt, under which the payment date is postponed.
The day on which the first option either expires or is extended.
extending maturity through a swap, e.g. selling a 2-year note and buying one with a slightly
Related: pricing efficiency.
Finance that is not generated by the firm: new borrowing or a stock issue.
Also referred to as the international market, the offshore market, or, more popularly, the
Retire or pay off debt.
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
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